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

Regulations are current to 2021-04-05 and last amended on 2016-06-01. Previous Versions

Benefits (continued)

Transfer Value

 A contributor who is described in subsection 22(1) of the Act and has not reached 50 years of age may opt for the payment of the transfer value referred to in that subsection.

  • SOR/2007-33, s. 9

 A contributor shall exercise the option for the payment of a transfer value no later than the later of one year after the day on which they cease to be a member of the regular force and March 1, 2008.

  • SOR/2007-33, s. 9

 The contributor is deemed not to have exercised the option for the payment of a transfer value if, before the transfer value has been paid, the contributor again becomes, or under section 8.1 is considered to be, a member of the regular force.

  • SOR/2007-33, s. 9
  • SOR/2016-64, s. 23

 The transfer value is an amount, together with interest calculated in accordance with section 16.98, equal to the greater of

  • (a) the actuarial present value, on the date of the option, of the accrued pension benefits that would be payable to or in respect of the contributor, and

  • (b) a return of contributions, calculated as of the date of the option as if the contributor had been entitled to a return of contributions on that date.

  • SOR/2007-33, s. 9
  •  (1) The calculation of the accrued pension benefits shall be based on the pensionable service to the contributor’s credit on the day after the day on which they cease to be a member of the regular force and the pensionable service shall include only the portion of the pensionable service that is subject to an election — other than a pensionable earnings election or an election under clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2) — for which the contributor has paid or ought to have paid before the date of the option.

  • (2) For the purposes of the calculation of the accrued pension benefits, the calculation of the adjustment referred to in section 16.6 is subject to the following rules:

    • (a) if the pensionable service to the contributor’s credit includes pensionable service that was subject to a pensionable earnings election or an election under clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2) of these Regulations, the contributor is considered to have opted at the time of the election to pay a lesser amount corresponding to the payments in respect of the election that were made or ought to have been made on or before the date of the option for the payment of a transfer value;

    • (b) if the contributor has made a top-up election under section 14.2, the contributor is considered to have opted at the time of the election to pay a lesser amount corresponding to the payments in respect of the top-up election that were made or ought to have been made on or before the date of the option for the payment of a transfer value; and

    • (c) if the top-up election was made in respect of pensionable service that came to the contributor’s credit under a pensionable earnings election, for the purposes of calculating the full amount referred to in paragraph 14.6(3)(b) in respect of the pensionable earnings election, the proportion referred to in the description of E in that paragraph is calculated on the basis that the contributor opted for a lesser amount, at the time of the pensionable earnings election, equal to the amount referred to in paragraph (a).

  • SOR/2007-33, s. 9
  • SOR/2016-64, ss. 24, 49

 The calculation of the actuarial present value of the accrued pension benefits is subject to the following rules:

  • (a) the supplementary benefits are to be increased to take into account the period beginning on the later of January 1 of the year in which the option was exercised and the day on which the contributor ceased to be a member of the regular force and ending on the date of the option; and

  • (b) the possibility that the contributor may receive an annual allowance is to be excluded.

  • SOR/2007-33, s. 9
  •  (1) For the purposes of subsection (2), the actuarial valuation report is the actuarial valuation report most recently laid before Parliament, under section 56 of the Act, before the date of the option or, if that report was laid before Parliament in the month in which the option was exercised or in the preceding month, the preceding report that was laid before Parliament.

  • (2) In determining the actuarial present value of a contributor’s accrued pension benefits, the following actuarial assumptions are to be used:

    • (a) the mortality rates for contributors and survivors are the mortality rates, including annual percentages of mortality reduction, used in the preparation of the actuarial valuation report;

    • (b) the interest rates are the interest rates for fully indexed pensions — adjusted by the interest rates for unindexed pensions to take into account Part III of the Act — determined in accordance with the section entitled “Pension Commuted Values” of the Standards of Practice — Practice-Specific Standards for Pension Plans, published by the Canadian Institute of Actuaries, as amended from time to time;

    • (c) the probability that a contributor will be survived by children is based on the rates regarding the average number, average age and eligibility status of children at the death of a contributor, used in the preparation of the actuarial valuation report;

    • (d) the probability that a contributor will become entitled to an annuity under paragraph 16(1)(d) of the Act is based on the rates of termination owing to disability used in the preparation of the actuarial valuation report, taking into account the probability — as set out in that report — that there would be immediate eligibility for a disability pension under the Canada Pension Plan or a provincial pension plan; and

    • (e) the probability that a contributor will have a survivor at death is based on the probability that a contributor will have a survivor at death and on the age difference between those persons that was used in the preparation of the actuarial valuation report.

  • SOR/2007-33, s. 9
  • SOR/2016-64, s. 25(F)

 There shall be deducted from the amount of the transfer value

  • (a) contributions remaining unpaid in respect of pay that the contributor is deemed to have received under subsections 11(4) and (4.1); and

  • (b) arrears in respect of a pensionable earnings election, an election made under section 6 of the Act or clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2), or a top-up election made under section 14.2.

  • SOR/2007-33, s. 9
  • SOR/2016-64, s. 49
  •  (1) A retirement savings plan prescribed for the purposes of section 26 of the Pension Benefits Standards Act, 1985 is prescribed as a kind of retirement savings plan or fund for the purposes of paragraph 22(2)(b) of the Act.

  • (2) A deferred life annuity and an immediate life annuity, as defined in subsection 2(1) of the Pension Benefits Standards Regulations, 1985, are prescribed as a kind of deferred life annuity and a kind of immediate life annuity for the purposes of paragraph 22(2)(c) of the Act.

  • (3) Any portion of the transfer value, the payment of which is being effected by a transfer under subsection 22(2) of the Act, that is in excess of the amount that may be transferred in accordance with section 8517 of the Income Tax Regulations shall be paid to the contributor.

  • (4) If, after the option for the payment of the transfer value described in section 22 of the Act has been exercised but before that payment has been effected, the contributor dies, the following rules apply:

    • (a) the amount that may be transferred shall be paid accordingly and any excess shall be paid

      • (i) to the person who would have been entitled to an annual allowance as a survivor under subsection 25(1) of the Act had the option for the payment of a transfer value not been exercised, or

      • (ii) to the contributor’s estate or succession if there is no person who would have been entitled to the annual allowance as a survivor; or

    • (b) if no amount may be transferred, all of the transfer value shall be paid in accordance with subparagraphs (a)(i) and (ii).

  • (5) If there are two persons who would have been entitled to an annual allowance under subsection 25(1) of the Act as survivors had the transfer value option not been exercised, each of them shall be entitled to a share of the excess or of the transfer value, as the case may be, determined by the formula

    A × B/C

    where

    A
    is the amount of the excess or of the transfer value;
    B
    is the total number of years that the person cohabited with the contributor while married to or in a relationship of a conjugal nature with the contributor; and
    C
    is the sum of the number of years that each of the two persons cohabited with the contributor while married to or in a relationship of a conjugal nature with the contributor.
  • (6) In determining the number of years for the purpose of subsection (5), part of a year shall be counted as a full year if the part is six or more months and shall be ignored if it is less.

  • SOR/2007-33, s. 9
  • SOR/2016-64, s. 26
 
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