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Canadian Forces Superannuation Regulations (C.R.C., c. 396)

Regulations are current to 2021-03-23 and last amended on 2016-06-01. Previous Versions

Pensionable Service (continued)

Manner of Payment for Elective Pensionable Service

  •  (1) If, under paragraph 9(1)(b) of the Act, a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — has exercised an option to pay in instalments for pensionable service, those payments shall be made by reservation from pay and allowances or otherwise, for life or for a period of years not greater than for life, and are payable in the following manner:

    • (a) the first instalment is due and payable on the first day of the month immediately following the month of election and succeeding instalments monthly after that time during the term corresponding to the plan of payment selected by the contributor, computed in accordance with Canadian Life Table No. 2 (1941), Males four per cent or Females four per cent, as the case may be; and

    • (b) the contributor may amend the plan of payment to provide for payment of the instalments still to be paid in a lump sum or by larger monthly instalments on a basis similar to that described in paragraph (a), calculated as of the date of the amendment.

  • (2) If a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — originally exercised an option to pay in one lump sum, and subsequently the total amount to be paid in respect of the service for which the contributor elected to pay is verified as a greater amount than that on which the original lump sum payment was based, the contributor shall pay the difference either in one lump sum or by instalments, at the contributor’s option, on a basis similar to that described in subsection (1).

  • (3) If a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — originally exercised an option to pay by instalments, and subsequently the total amount to be paid in respect of the service for which the contributor has elected to pay is verified as a greater or lesser amount than that on which the original instalments were based, the monthly instalment under subsection (1) shall be increased or decreased in accordance with the verified amount, but the instalment shall not be decreased by more than 5% of the original monthly instalment.

  • (4) If a contributor originally exercised an option to pay by instalments for a period of years less than for life, and if they can establish that financial hardship will be caused to them if they are required to continue to pay those instalments, on the application of the contributor, the amount of the monthly instalment may be reduced to a lesser amount on a basis similar to that described in subsection (1), calculated as of the first day of the month following approval of the application.

  • (4.1) The application shall be made in writing, dated and signed and sent to the Minister, or a person designated by the Minister, within one week after the date that it bears. It shall be void unless the contributor has passed a medical examination similar to that described in section 10, within the period of 90 days before or after the date of the application.

  • (5) Where a contributor, who has elected under the Act or Part V of the former Act to pay for any period of service and has undertaken to pay for that period by instalments, ceases to be a member of the regular force before all the instalments have been paid, the unpaid instalments shall be reserved from the benefits payable to them as follows:

    • (a) subject to paragraph (c), where the benefit payable is an annuity, the remaining instalments shall be reserved from that annuity;

    • (b) where the benefit payable is a cash termination allowance, the present value of the remaining instalments shall be reserved from that allowance to the extent that such allowance is not reduced below an amount equivalent to a return of contributions; or

    • (c) where during any period a pension granted under Part V of the former Act or an annuity granted under the Act 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 during such period from the pay and allowances or salary payable to the recipient or from any other amount payable to them by Her Majesty.

  • (6) Notwithstanding anything contained in this section, a contributor who, pursuant to subsection 9(3) of the Act, elects to surrender their right under subsection 56(2) of the former Act, to defer payment for their prior service in the regular force for which they were not required to pay until the date of their retirement, shall be required to pay the amount prescribed therein in the following manner:

    • (a) prior to their retirement, the whole or any part of the prescribed amount

      • (i) in a lump sum without interest, or

      • (ii) in monthly instalments of any amount without interest,

      at their option; and

    • (b) upon their retirement, any balance remaining of the contributions required to be paid, in the same manner and subject to the same terms and conditions as would be applicable to an amount required to be paid in accordance with subsection 56(2) of the former Act.

  • (7) For the purpose of subsection 9(4) of the Act, where at the death of a contributor any amount payable by them into the Superannuation Account or Canadian Forces Pension Fund is due and payable but remains unpaid, the amount payable, with interest at four per cent per annum from the time it became due to the time of their death, shall be recovered from any allowance payable to the survivor or children as follows:

    • (a) in a lump sum from a cash termination allowance; or

    • (b) by monthly instalments from an annual allowance in an amount equal to 10 per cent of the net monthly allowance, but in any such case payment may be made by or on behalf of the survivor or children that will liquidate the amount at an earlier date.

  • SOR/92-717, s. 10
  • SOR/95-570, s. 10(F)
  • SOR/2001-76, s. 9
  • SOR/2007-33, s. 7
  • SOR/2016-64, ss. 15, 50, 52(F), 54(E), 55(E), 57(E)

 In respect of a member of the reserve force who is a contributor and who makes an election under any of clauses 6(b)(ii)(A) to (F) and (I) to (L) of the Act and 6(b)(ii)(G) and (H) of the Act as adapted by subsection 12.2(2) of these Regulations, or a member or former member of the reserve force who makes a top-up election under section 14.2 of these Regulations, subsection 9(1) of the Act is adapted as follows:

  • 9 (1) Any amount required to be paid by a contributor who makes an election under any of clauses 6(b)(ii)(A) to (F) and (I) to (L) and clauses 6(b)(ii)(G) and (H), as adapted by subsection 12.2(2) of the Canadian Forces Superannuation Regulations, or a member or former member of the reserve force who makes a top-up election under section 14.2 of those Regulations shall be paid on the same terms and conditions as those set out in sections 16 to 21 of the Reserve Force Pension Plan Regulations that would apply to a participant in respect of an election made under subsection 11(1) of those Regulations and section 23 of those Regulations applies to any member or former member of the reserve force, who is in receipt of an annuity or annual allowance, in respect of any instalments resulting from a top-up election as if that member or former member had been a participant under those Regulations.

  • SOR/2007-33, s. 8
  • SOR/2016-64, s. 16

Top-up Election for Contributions Paid Under the Reserve Force Pension Plan Regulations

[SOR/2008-307, s. 9(F)]

 A contributor is entitled to make a top-up election, once only, to contribute an additional amount in respect of all of the pensionable service that was counted to the contributor’s credit

  • (a) under section 10.2, other than pensionable service described in paragraph (b); and

  • (b) under section 10.2 that had been counted to their credit as a result of a pensionable earnings election.

  • SOR/2007-33, s. 8
  • SOR/2016-64, s. 49

 A contributor may make the top-up election commencing on the day in respect of which they are entitled to receive pay.

  • SOR/2007-33, s. 8

 The contributor shall make the top-up election no later than the later of one year after the date of the written notice advising the contributor that they have become entitled to make it and March 1, 2011.

  • SOR/2007-33, s. 8
  • SOR/2010-101, s. 3

 A contributor who ceases to be considered to be a member of the regular force before the expiry of the period to make a top-up election is, on again being considered to be a member of the regular force, entitled to make the election until the end of one year after the date of the written notice advising the contributor that they have again become entitled to make the election.

  • SOR/2007-33, s. 8
  • SOR/2016-64, s. 17
  •  (1) For the purposes of this section, former earnings, in respect of a period of pensionable service of a contributor who was a participant under subsection 4(2) of the Reserve Force Pension Plan Regulations, means the earnings that remained to the contributor’s credit as pensionable earnings on the day before the day on which they became or were considered to be a member of the regular force, other than earnings that came to their credit as a result of a pensionable earnings election, less any portion of those earnings that relates to earned premiums in lieu of leave, plus the allowance calculated in respect of that period in accordance with section 9.

  • (2) A contributor who makes a top-up election shall pay the full amount or a lesser amount for which the contributor opts at the time of making the election.

  • (3) The full amount is

    • (a) in respect of pensionable service described in paragraph 14.2(a), the total of amounts determined for each calendar year by the formula

      B - A

      where

      A
      is the amount that the contributor was required to contribute as a participant under the Reserve Force Pension Plan Regulations on their earnings, for that calendar year, that remained to their credit as pensionable earnings for the purposes of those Regulations on the day before the contributor became a member of the regular force, other than earnings that came to their credit as a result of a pensionable earnings election,
      B
      is the amount that the contributor would have been required to contribute under section 5 of the Act in that calendar year had they been required to so contribute on an amount of salary equal to their former earnings for that calendar year; and
    • (b) in respect of pensionable service described in paragraph 14.2(b), the total of amounts determined for each calendar year by the formula

      (D - C) × E

      where

      C
      is the portion of the full amount, excluding interest, determined for that calendar year by the formula in subsection 15(2) of the Reserve Force Pension Plan Regulations for the purposes of the pensionable earnings election referred to in paragraph 14.2(b) of these Regulations,
      D
      is the greater of the value of C and the amount that the contributor would have been required to contribute in accordance with subsection 5(1) of the Act on an amount of salary for the year of the pensionable earnings election equal to the amount that would be determined as their updated past earnings for that calendar year for the purposes of that election, if the amount of their past earnings for that calendar year were adjusted by subtracting the amount of any earned premiums in lieu of leave and adding the amount of any allowances calculated in respect of that calendar year in accordance with section 9, and
      E
      is the proportion referred to in subsection 26(1) of the Reserve Force Pension Plan Regulations in relation to the pensionable earnings election that was made.
  • (4) The contributor may not modify the amount for which the contributor has opted.

  • SOR/2007-33, s. 8
  • SOR/2008-307, s. 10(F)
  • SOR/2016-64, ss. 18, 49
 
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