Retirement Compensation Arrangements Regulations, No. 1 (SOR/94-785)

38.5 The lump sum amount referred to in paragraph 38.4(2)(a) is equal to

• (a) the transfer value that would be paid to the participant under section 13.01 of the Public Service Superannuation Act as of valuation date, whether or not the participant would otherwise be entitled to a transfer value, if paragraph 11(1)(b) of that Act applied without reference to the annual rate of salary fixed by or determined in accordance with the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

and

• (b) interest after valuation date, if any, on the amount referred to in paragraph (a) calculated in accordance with section 93 of the Public Service Superannuation Regulations, with any modifications that the circumstances require,

less the sum of

• (c) any amount paid or payable to or in respect of the participant under that Act and section 41.2 in respect of the period of pensionable service to the credit of the participant under that Act,

and

• (d) an amount equal to the interest, if any, that would be calculated in accordance with section 93 of those Regulations, with any modifications that the circumstances require, on the amounts referred to in paragraph (c) from the date of payment of those amounts to the date to which interest is calculated under paragraph (b).

38.51 Any amount transferred by an eligible employer from the employer’s external retirement compensation arrangement in respect of a participant, in accordance with an agreement made under subsection 40.2(2) of the Public Service Superannuation Act that provides for its payment to the Retirement Compensation Arrangements Account, shall be credited to that account.

• 38.6 (1) Subject to subsection (3), if an amount is paid to an approved employer in respect of a participant pursuant to subsection 40(3) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to twice the sum of the contributions that the participant has made under this Division plus interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of that Act, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Division and section 68.

• (2) Subject to subsection (3), if an amount is paid to an approved employer in respect of a participant pursuant to subsection 40(4) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to the greater of

    • (i) an amount equal to the aggregate of

      • (A) an amount calculated by the Minister equal to the actuarial value of the participant’s benefits accrued under this Division and section 68 as of valuation date based on the paid-up contributions of the participant under this Division, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under subparagraph 40(4)(a)(i) of that Act, and

      • (B) an amount representing interest after valuation date, if any, on the amount determined under clause (A) calculated at the same rate and in the same manner as in the agreement with the employer, and

    • (ii) an amount equal to twice the sum of the contributions that the participant has made under this Division plus interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of that Act, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Division and section 68.

• (3) If the approved employer has not established an external retirement compensation arrangement or has established an external retirement compensation arrangement but is not prepared to provide benefits under that arrangement in respect of the amount referred to in subsection (1) or (2), the Minister shall not transfer the amount to the employer, but shall pay to the participant a lump sum amount equal to the sum of the contributions that the participant has made under this Division plus interest calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act.

• (4) If the amount transferred under subsection (1) or (2) is less than the lump sum amount that would be paid to the participant under subsection (3), the Minister shall pay to the participant an amount equal to the difference.

• (5) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the date on which the transfer or payment is effected, the amount transferred or paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (6) The transfer or payment of an amount under this section shall be made within 12 months after the coming into force of this subsection.

• (7) When all amounts under this section have been transferred or paid, as applicable, the participant shall cease to be entitled to any benefit under this Division or under section 68 in respect of the period of service to which the transfer or payment relates.

• (8) For the purposes of subparagraph (2)(a)(i), valuation date means the date referred to in subparagraph 40(4)(a)(i) of the Public Service Superannuation Act.

• 39 (1) If a participant dies, leaving no survivor or child to whom a benefit may be paid under this Part or Part I of the Public Service Superannuation Act, or if the persons to whom such a benefit may be paid die or cease to be entitled to the benefit, a benefit of the type referred to in subsection 27(2) of that Act shall be paid to the beneficiary named by the participant under Part II of that Act or, if no beneficiary is named or the named beneficiary does not survive the participant, to the estate of the participant, subject to the same conditions as are specified in that Act for payment of such a benefit.

• (2) Subject to subsection (3), if five times the aggregate of the benefits referred to in paragraphs (a) and (b) is greater than the total of the participant’s contributions under this Part and Part I of the Public Service Superannuation Act, together with interest thereon calculated at the rate and in the manner set out in subsection 10(9) of that Act, the amount of a benefit payable under subsection (1) shall be five times the aggregate of

  • (a) the annual amount of any benefit payable to the participant under this Division, determined in accordance with subsection 35(2), or section 38.4 as that provision read immediately before the coming into force of this paragraph, not reduced on account of the age or period of pensionable service of the participant, and

  • (b) the amount of any annuity payable under the Public Service Superannuation Act, determined in accordance with subsection 11(1) of that Act.

• (3) The amount of the benefit referred to in subsection (2) shall be reduced by the following amounts paid to or in respect of the participant:

  • (a) any amount paid under this Part;

  • (b) any amount paid under Part I of the Public Service Superannuation Act, excluding any amount paid under subsection 13.01(2) of that Act, but including any amount paid under section 27 of that Act; and

  • (c) any amount paid under section 19 in respect of the pensionable service to the credit of the participant under Part I of the Public Service Superannuation Act.

• (4) If the amount determined under subsection (2) is less than the total of the participant’s contributions under this Part and Part I of the Public Service Superannuation Act together with interest calculated at the rate and in the manner set out in subsection 10(9) of that Act, the benefit payable under subsection (1) shall be equal to the participant’s contributions under this Part together with interest calculated at the same rate and in the same manner, reduced by any amount paid to or in respect of the participant under this Part.

40 Where a participant or a recipient requests that a benefit under this Part be paid otherwise than in equal monthly instalments, or where the payment of a benefit in equal monthly instalments is not practicable for administrative reasons, the benefit may be paid in equal payments quarterly, semi-annually or annually in arrears, if payment in arrears would not result in the payment of an aggregate amount greater than the aggregate amount of equal monthly instalments that would otherwise be payable under this Part.

41 Where as a result of an election made under subsection 39(1) of the Public Service Superannuation Act the participant ceases to be entitled to benefits provided under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, any contributions paid by the participant under Part III or IV shall be considered to have been paid under this Part and the benefits to which the participant shall be entitled are those payable under this Part.

DIVISION IIAdditional Benefits

• 41.1 (1) Subject to subsection 36(1), a benefit shall be paid to a participant, to a survivor or child of a participant or to a beneficiary of an amount payable under subsection 27(2) of the Public Service Superannuation Act, as the case may be, in an amount equal to

  • (a) the amount by which an allowance payable to such a person under that Act is reduced as a result of the operation of the limit set out in subsection 30.6(1) or (2) of the Public Service Superannuation Regulations,

  • (b) the amount by which a benefit payable under subsection 27(2) of that Act is reduced as a result of the operation of the limit set out in subsection 30.8(1) of the Public Service Superannuation Regulations, and

  • (c) the amount by which an annuity or annual allowance payable to such a person under that Act is reduced as a result of the operation of the limit set out in subsection 80(1) or 80.1(1) of the Public Service Superannuation Regulations.

• (2) The benefit that represents the amount of a reduction referred to in subsection (1) is payable in the same manner and subject to the same terms and conditions as apply to the payment of the allowance, benefit, annuity or annual allowance referred to in paragraph (1)(a), (b) or (c), as the case may be, before the reduction.

• 41.2 (1) If a participant opts for a transfer value under section 13.01 of the Public Service Superannuation Act or becomes entitled to the payment of an amount under subsection 40.2(7) of that Act, a benefit shall be paid to the participant in the form of a lump sum equal to the amount by which the amount payable to the participant under subsection 13.01(2) of that Act is reduced as a result of the operation of the limits set out in any of subsections 30.6(1) and (2), 30.8(1) and 80.1(1) of the Public Service Superannuation Regulations together with interest, if any.

• (2) The interest shall be calculated in accordance with section 93 of those Regulations.

41.3 to 41.5 [Repealed, SOR/2003-12, s. 14]

DIVISION IIITransfers of Funds in Respect of Employees of Certain Corporations

General

• 41.6 (1) If an amount paid pursuant to subsection 40.2(3) of the Public Service Superannuation Act to an employer listed in Schedule 5 is reduced as a result of the operation of the limits set out in any of subsections 30.6(1) and (2), 30.8(1) and 80.1(1) of the Public Service Superannuation Regulations, the Minister shall transfer to an external retirement compensation arrangement established by that employer, an amount equal to the amount of the reduction, together with interest, if any.

• (2) For the purposes of subsection (1), interest shall be calculated at the same rate and in the same manner as provided in the agreement referred to in subsection 40.2(2) of the Public Service Superannuation Act with the employer.

• (3) The transfer of an amount under this section shall be made within the time limit for the payment of an amount to the employer provided for in the agreement or within 12 months after the day on which the name of the employer is added to Schedule 5, whichever is the later.

• 41.7 (1) If an amount is paid pursuant to subsection 40.2(3) of the Public Service Superannuation Act to an employer listed in Schedule 6 in respect of a participant other than a participant contemplated by section 38.4, the Minister shall pay to an external retirement compensation arrangement established by that employer an amount equal to the aggregate of

  • (a) an amount calculated by the Minister equal to the actuarial value of the liability accrued in respect of the participant under Division I and section 68 as of valuation date, if any, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40.2(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under clause 40.2(3)(a)(i)(A) of that Act, and

  • (b) an amount representing interest after valuation date, if any, on the amount determined under paragraph (a) calculated at the same rate and in the same manner as in the agreement with the employer.

• (2) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the payment of an amount to an external retirement compensation arrangement under subsection (1), the amount paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (3) The payment of an amount under this section shall be made within the time limit for the payment of an amount to the employer provided for in the agreement or within 12 months after the day on which the name of the employer is added to Schedule 6, whichever is the later.

• (4) For the purposes of this section, valuation date has the same meaning as in the agreement with the employer.

Canada Post Corporation

Interpretation

41.8 The following definitions apply in this section and sections 41.81 to 41.84.

Canada Post

Canada Post means the Canada Post Corporation established by the Canada Post Corporation Act. (Postes Canada)

Canada Post Supplementary Retirement Arrangement

Canada Post Supplementary Retirement Arrangement means a supplementary pension plan that has been established by Canada Post under paragraph 46.3(1)(b) of the Public Service Superannuation Act and that has been approved by the Treasury Board under subsection 46.3(2) of that Act. (régime supplémentaire de retraite de Postes Canada)

Application

41.81 This Division applies in respect of the benefits accrued under this Part to persons who, by virtue of the coming into force of section 227 of the Public Sector Pension Investment Board Act, ceased to be employed in the public service for the purposes of the Public Service Superannuation Act on October 1, 2000 and

• (a) were employed by Canada Post and were contributors under the Public Service Superannuation Act on September 30, 2000, and

• (b) remain employed by Canada Post for at least one day following September 30, 2000.