Defence Services Pension Continuation Regulations (C.R.C., c. 554)

11 For the purpose of making deductions and computing a pension in respect of augmenting service to be counted pursuant to section 10, the pensioner shall be deemed to have been in receipt of pay and allowances during a period of absence from duty or secondment at the same rate as that which was prescribed for the rank or appointment held by him at the commencement of the period, except that

• (a) if during that period his rate of pay and allowances is increased or decreased for any reason, that rate from the date it became effective shall be deemed to be the pay and allowances he was receiving; or

• (b) if during a period of secondment the pensioner does not receive pay and allowances according to the appropriate regulations in effect from time to time for his service, the rate of pay and allowances he shall be deemed to receive shall be as determined by the Treasury Board.

• 12 (1) Notwithstanding any of the provisions contained in sections 5 to 11, a pensioner shall be deemed not to have elected to count augmenting service where

  • (a) he ceases to serve on a full-time paid basis in the forces or in the naval, army or air forces of Canada or the Canadian Forces, other than the forces, prior to completion of a period of augmenting service, as described in paragraph 5(1)(a); or

  • (b) he is not entitled to have his pension computed upon the pensionable term pursuant to subsection 9(1).

• (2) Where the provisions of subsection (1) are applicable, all sums deducted from the pay and allowances of a pensioner or paid by him by reason of the provisions of sections 5 to 11 inclusive shall be refunded to him without interest or shall be applied, where applicable, towards the abatement of any deductions owed by the pensioner where by reason of the provisions of subsection (1) he becomes subject to deductions pursuant to Part V of the former Act and regulations relating thereto other than sections 5 to 10 inclusive and his entitlement to pension payments shall be restored retroactively to the date of election as if he had never elected.

Estate Tax and Succession Duties

• 13 (1) In this section, pension means an annual pension payable under the Act to a widow or child and includes a compassionate allowance payable to a child.

• (2) For the purposes of this section, where, under the Act, a pension is payable to a child, the widow of the person in respect of whom that pension is payable to that child is presumed, prima facie, to be the guardian of that child.

• (3) Where, upon the death of any person in respect of whom any pension becomes payable under the Act to a successor, application in writing may be made, by or on behalf of the successor, to the Minister for payment out of the Consolidated Revenue Fund of the whole or any part of the portion of any estate, legacy, succession or inheritance duties or taxes that are payable by the successor and attributable to that pension, and where the Minister directs, in accordance with the application, that the whole or any part of such duties or taxes shall be paid out of the Consolidated Revenue Fund, the maximum portion of the said duties or taxes that may be paid is the proportion that

  • (a) the value of the pension payable to the successor

  is of

  • (b) the value of the whole estate,

  calculated for the purposes of determining the said duties or taxes payable in respect thereof.

• (4) Where the Minister makes a direction in accordance with subsection (3), if the pension payable to the successor is payable in monthly, quarterly or semi-annual instalments, or in an annual amount, the pension shall be reduced either for a term requested by the successor in the application made under subsection (3), or during the entire period for which the pension is payable, if the successor fails to make a request in the application under subsection (3) that the pension be reduced for a term,

  • (a) where the pension is payable in monthly instalments, by one-twelfth of an amount,

  • (b) where the pension is payable in quarterly instalments, by one-quarter of an amount,

  • (c) where the pension is payable in semi-annual instalments, by one-half of an amount, and

  • (d) where the pension is payable annually, by the whole of an amount,

  determined by dividing the amount of the succession duties or taxes to be paid out of the Consolidated Revenue Fund by the value of a pension of $1 per annum, payable monthly, quarterly, semi-annually or annually, as the pension is payable, to a person of the age of the successor at the date of payment of the said duties or taxes out of the Consolidated Revenue Fund, calculated,

  • (e) in the case of a pension payable to the widow of the person in respect of whose death the pension is payable, in accordance with a(f) Ultimate Table with interest at the rate of four per cent per annum; and

  • (f) in the case of a pension payable to a child of the person in respect of whose death the pension is payable, at an interest rate of four per cent per annum and mortality shall not be taken into account.

• (5) Where the pension of a successor is to be or is being reduced under this section for a term and the successor, being the widow of a former officer, remarries before the end of the term and the pension is suspended, if at any time the pension is resumed it shall be reduced for a term equal to the term or the balance of the term, as the case may be, during which the pension would have been reduced had it not been suspended and such reduction shall be made to the same extent and in the same manner as the pension was reduced immediately prior to the suspension.

Debit Balances

14 For the purposes of subsection 49(2) of the Act, a debit balance in the pay account of a former member of the forces shall be recovered

• (a) in a lump sum from a gratuity; or

• (b) by monthly instalments from a pension in an amount equal to 10 per cent of the net monthly pension but in any such case the person in receipt of the pension may make payments that will liquidate the debit at an earlier date.

Unpaid Pension Deductions

15 For the purposes of subsection 49(3) of the Act, where a person becomes entitled to a pension under any of Parts I to III of the Act and is required to contribute by instalments in respect of service for which no deductions have been made, during any period that the pension is not payable or is reduced to an amount that is not sufficient to pay the instalments in full, the unpaid portion of the remaining instalments shall be reserved from the pay and allowances or salary payable to the pensioner or from any other amount payable to him by Her Majesty.

Persons Above the Rank of Sergeant

16 For the purposes of the Act and these Regulations, every person to whom the Act applies and who, on or after February 1, 1968, holds in the Canadian Forces

• (a) the rank of chief warrant officer or master warrant officer, shall be treated as

  • (i) an officer if, immediately prior to that date, he was a member of the Canadian Army or Royal Canadian Air Force, and

  • (ii) a militiaman if, immediately prior to that date, he was a member of the Royal Canadian Navy; and

• (b) the rank of warrant officer shall be treated as a militiaman.

Election in Respect of Surviving Spouse Pension

17 For the purposes of sections 18 to 34,

election

election means an election under section 26.1 of the Act; (choix)

level of reduction

level of reduction means, in respect of a pension, one of the three amounts determined pursuant to section 26, where levels one, two and three correspond to a reduction that provides a surviving spouse with a pension that is equal to 30, 40 or 50 per cent, respectively, of a pension referred to in subparagraph 26(b)(i), if paragraph 26(b) were read without reference to supplementary benefits payable under the Supplementary Retirement Benefits Act; (niveau de réduction)

officer

officer means an officer referred to in section 26.1 of the Act; (officier)

spouse

spouse means a spouse referred to in section 26.1 of the Act. (conjoint)

18 For the purposes of section 26.1 of the Act, an officer may make an election to reduce the amount of the officer's pension not later than one year after the later of

• (a) the day on which this section comes into force, and

• (b) the day on which the officer and the spouse are married.

• 19 (1) Notwithstanding section 18, an officer may make an election after the expiration of the period provided for in that section where the officer has received in writing, from a member of the Canadian Forces or person employed in the Public Service whose ordinary duties included the giving of advice respecting the election,

  • (a) erroneous or misleading information regarding the period during which the officer could make an election; or

  • (b) materially erroneous or misleading information regarding the amount of the reduction of the officer's pension or the amount of the pension to which the spouse would be entitled.

• (2) An election may be made under subsection (1) not later than three months after the day on which a written notice containing the correct information is sent to the officer.

20 An election shall be made in writing and shall

• (a) indicate the level of reduction in respect of the officer's pension;

• (b) indicate the date of birth of the officer's spouse and the date of the spouse's marriage to the officer; and

• (c) be signed and dated by the officer and signed by a witness other than the officer's spouse.

• 21 (1) An election shall be sent to the Minister, or to a person designated by the Minister, within the period referred to in section 18 or subsection 19(2), as the case may be.

• (2) The election is made on the day on which it is sent.

22 The officer, or a person acting on behalf of the officer, shall, within one year after the day on which an election is made, send to the Minister or to a person designated by the Minister

• (a) a document that is evidence of the date of birth of the spouse;

• (b) a document that is evidence of the marriage of the officer and the spouse; and

• (c) where the name of the spouse as indicated on a document referred to in paragraph (a) is not the same as the name of the spouse as indicated on a document referred to in paragraph (b), any other document that confirms that the evidence of the birth and the marriage relates to the spouse, or a statutory declaration by which the spouse declares that the documents are in respect of the spouse.

• 23 (1) For the purposes of section 26.1 of the Act, proof of age of the officer's spouse is established, subject to subsections (2) and (3), by a birth certificate issued by a civil authority.

• (2) Where a birth certificate referred to in subsection (1) cannot be obtained, proof of age of the spouse is established

  • (a) by a statutory declaration of the spouse in which the spouse attests to the spouse's date of birth and explains the reasons why the birth certificate cannot be obtained; and

  • (b) by a document that was created

    • (i) within five years after the date of birth of the spouse and that indicates the name of the spouse and the date of birth or age of the spouse, or

    • (ii) at least 20 years before the day on which the election is made and that indicates the date of birth of the spouse, which document is accompanied by a statutory declaration by which a person, other than the officer or the spouse, attests that the date stated in the document is the correct date of birth of the spouse.

• (3) Where a document or statutory declaration referred to in paragraph (2)(b) is to be submitted but cannot be obtained, the statutory declaration referred to in paragraph (2)(a) shall set out the reasons why the document or statutory declaration cannot be obtained.

• 24 (1) Subject to subsection (2), proof of the marriage between the officer and the spouse is established by a marriage certificate issued by a civil authority.

• (2) Where a marriage certificate referred to in subsection (1) cannot be obtained, proof of the marriage between the officer and the spouse is established by

  • (a) a statutory declaration by which the officer or the spouse attests to the date of the marriage and explains the reasons why the marriage certificate cannot be obtained; and

  • (b) a document that is similar to a marriage certificate and is issued in relation to the marriage ceremony, or a statutory declaration by a person who attended the marriage ceremony, other than the officer or the spouse, attesting to the person's knowledge of the marriage.

Non-compliance with Requirements to Submit Evidence

25 An election is considered not to have been made where any document or statutory declaration that is required by any of sections 22 to 24 is not submitted within one year after the day on which the election is made.

Calculation of the Reduction

26 The amount of the reduction of the monthly instalment of the pension of an officer who makes an election is equal to the amount determined as follows:

• (a) calculate the actuarial present value of the pension to which the officer is entitled under Parts I to III of the Act immediately before the election, and the supplementary benefits payable in respect thereof under the Supplementary Retirement Benefits Act;

• (b) convert the amount determined in accordance with paragraph (a) into a joint and survivor pension benefit that consists of

  • (i) a pension that is payable, during the life of the officer, by monthly instalments beginning on the first day of the month after the month in which the election is made, and that is determined taking into account the supplementary benefits payable under the Supplementary Retirement Benefits Act, as if the pension were a pension payable under Parts I to III of the Defence Services Pension Continuation Act, and

  • (ii) a pension that is payable during the life of the surviving spouse, by monthly instalments beginning on the first day of the month after the month in which the officer died and that is equal to 30, 40 or 50 per cent, in accordance with the election made by the officer, of the pension determined in accordance with subparagraph (i), and that is determined taking into account the supplementary benefits payable under the Supplementary Retirement Benefits Act, as if the pension were a pension payable under Parts I to III of the Defence Services Pension Continuation Act; and

• (c) subtract the first monthly instalment of the pension referred to in subparagraph (b)(i) from the first monthly instalment of the pension referred to in paragraph (a), and adjust the amount obtained to take into account

  • (i) that the reduction is effective during the lesser of

    • (A) the period of the life of the officer,

    • (B) the period of the life of the spouse, and

    • (C) the duration of the marriage,

  • (ii) that the reduction becomes effective in the month referred to in section 31, and

  • (iii) that the increase in the reduction under section 27 will apply to the reduction in each year referred to in that section.

Indexation

27 The amount of the reduction determined in accordance with section 26 is increased on January 1 of each year after the year in which the reduction is first in effect, by the amount that would be payable as a supplementary benefit under the Supplementary Retirement Benefits Act if the amount of the reduction determined under section 26 were a pension that became payable under Parts I to III of the Defence Services Pension Continuation Act on January 1 of the year in which the election was made.