Vol. 150, No. 8 — April 20, 2016

Registration

SOR/2016-64 March 29, 2016

CANADIAN FORCES SUPERANNUATION ACT
DEFENCE SERVICES PENSION CONTINUATION ACT

Regulations Amending Certain Canadian Forces Pension Regulations

P.C. 2016-163 March 24, 2016

His Excellency the Governor General in Council, on the recommendation of the Minister of National Defence, makes the annexed Regulations Amending Certain Canadian Forces Pension Regulations pursuant to:

Regulations Amending Certain Canadian Forces Pension Regulations

Canadian Forces Superannuation Act

Canadian Forces Superannuation Regulations

1 (1) The definition past earnings election in section 2 of the Canadian Forces Superannuation Regulations (see footnote 1) is repealed.

(2) Section 2 of the Regulations is amended by adding the following in alphabetical order:

pensionable earnings election, in relation to a period of pensionable service of a contributor who was a participant under subsection 4(2) of the Reserve Force Pension Plan Regulations, means an election made under subsection 11(1) of those Regulations. (choix visant les gains ouvrant droit à pension)

2 Subsection 3(2) of the Regulations is replaced by the following:

(2) Each day of service for which pay was authorized to be paid and during which the contributor served on Class “A” Reserve Service within the meaning of article 9.06 of the Queen’s Regulations and Orders for the Canadian Forces shall count as 1 2/5 days of Canadian Forces service.

3 The portion of subsection 5(1) of the Regulations before paragraph (a) is replaced by the following:

5 (1) For the purposes of subsection 5(4) of the Act, the specified kind of superannuation or pension benefit is one that

4 Subsection 6(2) of the Regulations is amended by replacing “officers and men” with “officers and non-commissioned members”.

5 Section 8 of the Regulations is repealed.

6 (1) The portion of subsection 8.1(1) of the Regulations before paragraph (a) is replaced by the following:

8.1 (1) Despite subsection 41(3) of the Act, a member of the reserve force is considered to be a member of the regular force and becomes a contributor for the purposes of Part I of the Act, except for paragraph 16(2)(a), and these Regulations

(2) Paragraph 8.1(1)(c) of the Regulations is replaced by the following:

(3) The portion of subsection 8.1(2) of the English version of the Regulations before paragraph (a) is replaced by the following:

(2) If a member of the reserve force is required to contribute to the Public Service Pension Fund or the Royal Canadian Mounted Police Pension Fund

(4) Paragraph 8.1(2)(a) of the French version of the Regulations is replaced by the following:

(5) The portion of subsection 8.1(3) of the Regulations before paragraph (a) is replaced by the following:

(3) A member of the reserve force who is in receipt of an annuity or annual allowance under Part I of the Act and who was a member of the regular force, other than by operation of this section, on the day on which they most recently ceased to contribute to the Superannuation Account or Canadian Forces Pension Fund is considered to be a member of the regular force and becomes a contributor, for the purposes of that Part and these Regulations, beginning on the earlier of

(6) Paragraph 8.1(3)(b) of the French version of the Regulations is replaced by the following:

7 Section 8.2 of the Regulations is replaced by the following:

8.2 For the purposes of paragraph 8.1(3)(b), a member of the reserve force is entitled to exercise the early contribution option

8 (1) The portion of section 8.3 of the French version of the Regulations before paragraph (a) is replaced by the following:

8.3 Le contributeur qui est membre de la force de réserve cesse d’être considéré comme un membre de la force régulière pour l’application de la partie I de la Loi et du présent règlement à partir du premier en date des jours suivants :

(2) Section 8.3 of the Regulations is renumbered as subsection 8.3(1) and is amended by adding the following:

(2) In respect of members of the reserve force referred to in paragraph 8.1(1)(c) and in subsection 8.1(3), subsection 41(1) of the Act is adapted as follows:

41 (1) If a member of the reserve force referred to in paragraph 8.1(1)(c) or subsection 8.1(3) of the Canadian Forces Superannuation Regulations is considered to be a member of the regular force and becomes a contributor under this Part, any right or claim that they may have had to the annuity or annual allowance referred to in that paragraph or subsection then ceases and the period of service on which that annuity or annual allowance was based may be counted by them as pensionable service for the purposes of this Part, except that

9 Sections 8.4 and 8.5 of the Regulations are replaced by the following:

8.4 In respect of a member of the reserve force who is considered to be a member of the regular force by virtue of subsection 8.1(3) or a former member of the reserve force who is a former member of the regular force and who has re-enrolled in or transferred to the regular force, subsections 41(4) and (5) of the Act are adapted as follows:

(4) In respect of a member of the reserve force who is considered to be a member of the regular force by virtue of subsection 8.1(3) of the Canadian Forces Superannuation Regulations or a former member of the reserve force who is a former member of the regular force and who has re-enrolled in or transferred to the regular force, an election under clauses 6(b)(ii)(G) and (H), as adapted by subsection 12.2(2) of those Regulations, is void unless, within the time set out in those clauses, the member or former member elects to repay the amount of annuity or annual allowance that they received during the period of service referred to in the election.

(5) The member or former member making the election shall pay into the Canadian Forces Pension Fund, at the time and in the manner set out in section 22.1 of those Regulations, an amount determined by the following formula:

A × B⁄365

where

A is the amount of the annuity or annual allowance; and

B is the member’s number of days of Canadian Forces service while in receipt of the annuity or annual allowance.

8.5 In respect of the member or former member referred to in section 8.4, paragraph 8(2)(c) of the Act is adapted as follows:

10 Subsection 10.1(2) of the Regulations is replaced by the following:

(2) Despite paragraph 8(2)(a) of the Act, an election made after August 15, 1997 in respect of any service after December 31, 1989 that would be void under that paragraph is void only if, 60 days after being notified that the Minister of National Revenue has issued the certification referred to in subsection (1), the elector is entitled to count the service to which the certification relates for the purposes of any superannuation or pension benefit of a kind referred to in subsection 5(2), other than a superannuation or pension benefit payable under Part I of the Act.

11 (1) The portion of paragraph 11(2.2)(a) of the French version of the Regulations before subparagraph (i) is replaced by the following:

(2) Paragraph 11(2.2)(b) of the Regulations is replaced by the following:

(3) Section 11 of the Regulations is amended by adding the following after subsection (2.2):

(2.3) In respect of a contributor who, as a reserve force member, was entitled to exercise the option referred to in section 8 of the Reserve Force Pension Plan Regulations, that section continues to apply until all of the contributions referred to in that section have been paid.

(2.4) A contributor who, as a reserve force member, exercised the option referred to in section 8 of the Reserve Force Pension Plan Regulations cannot elect to count as pensionable service any day of reserve force service in respect of which that option was exercised.

12 Section 12.1 of the Regulations is amended by replacing “5(6)” with “5(5)”.

13 (1) Paragraph 12.2(1)(a) of the Regulations is replaced by the following:

(2) Paragraph 12.2(1)(d) of the Regulations is replaced by the following:

14 (1) Subsections 13(1) and (2) of the Regulations are replaced by the following:

13 (1) An election made by a contributor under the Act to pay for a period of service may be revoked by the contributor in whole or in part, on request by the contributor,

(1.1) A revocation that relates only to a portion of the period of service may only apply to the portion of the period of service that is earliest in point of time.

(2) If an election made by a contributor is revoked for the reason referred to in paragraph (1)(b), the contributor shall pay to Her Majesty an amount in respect of any benefit that accrued to the contributor during the subsistence of the election as a consequence of the election, calculated in accordance with Canadian Life Table No. 2 (1941), Males four per cent or Females four per cent, as the case may be.

(2) Subsection 13(7) of the Regulations is replaced by the following:

(7) A request for revocation of an election to pay for service under this section shall be made in writing, dated and signed and sent to the Minister, or to a person designated by the Minister, within one week after the date that it bears.

(3) Subsection 13(9) of the Regulations is replaced by the following:

(9) A contributor may revoke, in whole or in part, an election not to count a period of service as pensionable service under subsection 11(2.1) if the contributor received erroneous or misleading information in writing, with respect to the amount to be paid or the consequences of the election on their benefits, from a person whose normal duties include giving information about those matters, and the contributor, in making the election, acted on that information.

15 Subsection 14(4) of the Regulations is replaced by the following:

(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.

16 The adapted version of subsection 9(1) of the Act in section 14.1 of the Regulations is replaced by the following:

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.

17 Section 14.5 of the Regulations is replaced by the following:

14.5 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.

18 (1) Subsection 14.6(1) of the Regulations is replaced by the following:

(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) The description of D in paragraph 14.6(3)(b) of the Regulations is replaced by the following:

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

19 (1) Paragraph 14.8(a) of the Regulations is replaced by the following:

(2) Paragraph 14.8(b) of the French version of the Regulations is amended by replacing “la pension” with “l’annuité”.

20 (1) The portion of subsection 14.9(1) of the Regulations before paragraph (a) is replaced by the following:

14.9 (1) A contributor who made a top-up election is deemed not to have made it,

(2) Paragraph 14.9(1)(b) of the Regulations is replaced by the following:

(3) Subsections 14.9(2) and (3) of the Regulations are replaced by the following:

(2) If a top-up election is deemed not to have been made, any amount received from a plan, fund or institution, of a type referred to in subsection 22(2) of the Act, in respect of that election, shall be transferred to a plan, fund or institution, of any type referred to in that subsection, at the direction of the contributor.

(3) Despite the expiry of the period within which the election referred to in paragraph (1)(a) may be made, the contributor may make an election no later than 90 days after the date of the notice informing the contributor of the refusal by the Minister of National Revenue. In the case of another refusal, the contributor shall not make an election.

21 (1) Subsection 15(2) of the Regulations is replaced by the following:

(2) Subsection (1) does not apply in any case if the contributor accepts payment at any time, in whole or in part, of a benefit under the Act in respect of their retirement.

(2) Subsection 15(4) of the Regulations is repealed.

22 Section 16.5 of the English version of the Regulations is amended by replacing “past earnings election” with “pensionable earnings election”.

23 Section 16.91 of the Regulations is replaced by the following:

16.91 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.

24 (1) Paragraph 16.93(2)(a) of the Regulations is replaced by the following:

(2) Paragraph 16.93(2)(b) of the French version of the Regulations is replaced by the following:

25 Paragraph 16.95(2)(d) of the French version of the Regulations is amended by replacing “utilisés à l’égard du contributeur” with “utilisés”.

26 Subsections 16.97(4) and (5) of the Regulations are replaced by the following:

(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:

(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.

27 Section 16.991 of the Regulations is repealed.

28 Section 17 of the Regulations is replaced by the following:

17 For the purposes of subsection 31(2) of the Act, if a child was born to a person at a time when that person was over 60 years of age and, after that time, that person did not become or continue to be a contributor, the child is not entitled to an allowance under the Act unless the child was born following a gestation period that commenced prior to the date when the contributor attained the age of 60 years or ceased to be a member of the regular force, whichever is later.

29 The heading before section 20 of the Regulations is replaced by the following:

Prescribed Evidence for the Purposes of Paragraph 50(1)(k) of the Act

30 (1) The portion of subsection 20(1) of the Regulations before paragraph (a) is replaced by the following:

20 (1) The following are prescribed as evidence for the purpose of paragraph 50(1)(k) of the Act:

(2) Subsections 20(3) and (4) of the Regulations are repealed.

31 Section 22.1 of the Regulations is replaced by the following:

22.1 (1) The member or former member of the reserve force referred to in subsection 41(4) of the Act, as adapted by section 8.4 of these Regulations, shall pay the amount payable under that subsection in a lump sum no later than 120 days after the date of the notice advising the member or former member of the amount due.

(2) The election referred to in subsection 41(4) of the Act, as adapted by section 8.4 of these Regulations, is void if the member or former member of the reserve force fails to pay the amount within the period set out in subsection (1).

32 Sections 23 to 27 of the Regulations are replaced by the following:

23 (1) If a contributor received erroneous or misleading information in writing with respect to the amount to be paid or the consequences on their benefits resulting from one of the following options or the following election, from a person whose normal duties include giving information about those matters, and the contributor, in exercising the option or making the election, acted on that information, the contributor may revoke it:

(2) The contributor who revokes an option may exercise a new option under the provisions

(3) The contributor who revokes a top-up election made under section 14.2 may make a new election under that provision.

24 (1) The options and election referred to in section 23 may only be revoked if

(2) The contributor who exercises a new option or makes a new election shall include it with the application for revocation.

(3) The date of the sending of the application for revocation, and the date of the new option or the new election, if one is exercised or made, is the day on which it is delivered or, if it is sent by mail, the day on which it is mailed, and the postmark is evidence of that day.

25 If a new option is exercised under subsection 23(2) or a new election is made under subsection 23(3), it shall be effective on the date that

26 If the new option or the new election results in the payment of an annuity or annual allowance and if the repayment by the contributor of the payment referred to in paragraph 24(1)(e) within the period specified in that paragraph will cause financial hardship to the contributor, the repayment shall be made in monthly instalments deducted from the annuity or annual allowance beginning the month after the date of the notice referred to in that paragraph. The deductions shall not be less than 10% of the gross monthly amount of the annuity or annual allowance.

Debit Balances in Pay Accounts

27 For the purposes of section 89 of the Act, any debit balance in the pay account of a former member of the regular force or of the reserve force shall be recovered

33 (1) The portion of section 27.2 of the Regulations before the adapted version of subsection 8(1) of the Act is replaced by the following:

27.2 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 clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2) of these Regulations, or under subsection 41(4) of the Act, as adapted by section 8.4 of these Regulations, subsection 8(1) of the Act is adapted as follows:

(2) The adapted version of subsection 8(1) of the Act, as adapted by section 27.2 of the Regulations, is replaced by the following:

8 (1) When a contributor who is a member of the reserve force 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 under subsection 41(4), as adapted by section 8.4 of those Regulations, it shall be

34 Section 38 of the Regulations is replaced by the following:

38 The following forms are prescribed for the purposes of the applicable sections of the Act and these Regulations, as the case may be, referred to below:

35 The Regulations are amended by adding the following after section 40:

40.1 In respect of a member of the reserve force who is considered to be a member of the regular force by virtue of subsection 8.1(1), paragraph (e) of the definition “participant” in subsection 60(1) of the Act is adapted as follows:

36 Subsection 43(2) of the Regulations is replaced by the following:

(2) If a participant returns to duty after having been absent from duty with leave and has not paid the contributions required to be paid in respect of the period, or any part of it, during which the participant was absent, the contributions shall be recovered by monthly deductions from their pay during a period of not more than six months in amounts not less than the amounts that were required to be paid while they were absent.

37 Subsection 45(10) of the Regulations is repealed.

38 Section 50 of the Regulations is replaced by the following:

50 (1) An election under section 62 of the Act shall be made in writing, dated and signed and sent to the Minister, or to a person designated by the Minister, within one week after the date that it bears.

(2) An election is made on the date that it bears.

(3) The date of the sending of the election is the day on which it is delivered or, if it is sent by mail, the day on which it is mailed. The postmark is evidence of that day.

39 Section 51 of the Regulations is replaced by the following:

51 For the purposes of Part II of the Act,

40 Section 55 of the French version of the Regulations is amended by replacing “Compte de prestations de décès des forces régulières” with “compte des prestations de décès de la force régulière”.

41 Subsection 56(2) of the English version of the Regulations is amended by replacing “him” and “his” with “him or her” and “his or her” respectively.

42 The Regulations are amended by adding the following after section 75:

Reconsideration Under Subsection 93(1) of the Act

76 (1) A request for a reconsideration under subsection 93(1) of the Act shall be made in writing to the Minister and shall set out

(2) If the person making the request has failed to provide sufficient information to enable the Minister to reconsider the decision, the Minister may request additional information.

(3) The person shall provide the requested information no later than 30 days after the date of the request.

(4) The Minister shall allow a reasonable extension of the time period if the person is able to establish that they were unable to provide the requested information within the time period due to circumstances beyond their control.

43 Parts I to IV of Form CFSA 100 in Schedule III to the Regulations are replaced by the following:

PART I

Election to Pay for Pensionable Service

SECTION A Personal information of contributor making the election

_________________________________________________________
(Rank)   (Given Names)   (Last Name)

____________________
(Service Number)

SECTION B A contributor making an election to pay for pensionable service, other than the service referred to in section C.

1. I elect, under paragraph 6(b) or subsection 42(1) or 43(1) of the Canadian Forces Superannuation Act to pay for (indicate choice in the appropriate box):

☐ (a) all my pensionable service;

OR

☐ (b) part of my pensionable service, the type and period of service to which the election relates specified below. (If the election relates to only a part of a particular type of service, the contributor may only elect to pay for the most recent part of that service.):

________________________________________________________

________________________________________________________.

2. I will make payment in the following manner (choose only ONE plan of payment and indicate choice in the appropriate box):

☐ (a) by a lump sum payment;

OR

☐ (b) by a lump sum payment of $ ________, the balance to be paid in monthly instalments of $ ________, starting on the first day of the month following the month in which this election is made and continuing until the total amount required to pay for the service and interest is fully paid;

OR

☐ (c) by monthly instalments of $ ________, starting on the first day of the month following the month in which this election is made and continuing until the total amount required to pay for the service and interest is fully paid.

I understand that the total amount to pay for the service will be verified and may be subject to adjustment under the Act.

Signed at
______________________________ on
(Place)

_______________
(day) (month) (year)

________________________
(Signature of Contributor)

Witnessed as to signature of contributor by:

_______________________________________
(Name of Witness, printed in full)

_______________________________________
(Signature of Witness)

SECTION C A regular force member who became a contributor on or after March 1, 2007 and who elects to pay for pensionable reserve force service under clause 6(b)(ii)(G) or (H) of the Canadian Forces Superannuation Act, as adapted by subsection 12.2(2) of the Canadian Forces Superannuation Regulations.

This election is for all of the contributor’s pensionable reserve force service. The contributor may opt, under paragraph 7(1)(g) of the Act, as adapted by subsection 12.4(1) of the Canadian Forces Superannuation Regulations, to pay less than the full amount for this service and any related benefit will be proportionately reduced.

1. I understand that the estimated full amount to pay for this service is $ ________ and that it will be verified and will be subject to adjustment under the Canadian Forces Superannuation Act (indicate choice in the appropriate box):

☐ (a) I elect to pay the full amount and I acknowledge that if the verified amount to pay for this service differs from the estimated amount indicated above, I will pay the verified full amount;

OR

☐ (b) I opt, under paragraph 7(1)(g) of the Act as adapted by subsection 12.4(1) of the Canadian Forces Superannuation Regulations, to pay the lesser amount of $ ________. I understand that I will not be able to increase this amount at a later date and that my benefits will be proportionately reduced.

2. I will make payment in the following manner (choose only ONE plan of payment and indicate choice in the appropriate box):

☐ (a) by a lump sum payment;

OR

☐ (b) by a lump sum payment of $ ________, the balance to be paid in monthly instalments of $ ________, starting on the first day of the month following the month in which this election is made and continuing until the total amount required to pay for the service and interest is fully paid;

OR

☐ (c) by monthly instalments of $ ________, starting on the first day of the month following the month in which this election is made and continuing until the total amount required to pay for the service and interest is fully paid.

Signed at
______________________________ on
(Place)

_______________
(day) (month) (year)

________________________
(Signature of Contributor)

Witnessed as to signature of contributor by:

_______________________________________
(Name of Witness, printed in full)

_______________________________________
(Signature of Witness)

PART II

Election to Repay Annuity or Annual Allowance Drawn During a Period of Service in the Reserve Force

Personal information of contributor making the election

_________________________________________________________
(Rank)   (Given Names)   (Last Name)

____________________
(Service Number)

To be completed by a contributor who is a regular force member and who was in receipt of an annuity or annual allowance under Part I of the Canadian Forces Superannuation Act during the period of reserve force service for which the contributor is making an election to pay.

I elect, under subsection 41(4) of the Canadian Forces Superannuation Act, as adapted by section 8.4 of the Canadian Forces Superannuation Regulations, to repay the part of the annuity or annual allowance that was paid to me under that Act during the period of reserve force service for which I am making an election to pay.

I will make payment, in a lump sum, no later than 120 days after the date of the notice advising me of the amount due.

Signed at
______________________________ on
(Place)

_______________
(day) (month) (year)

________________________
(Signature of Contributor)

Witnessed as to signature of contributor by:

_______________________________________
(Name of Witness, printed in full)

_______________________________________
(Signature of Witness)

44 Form CFSA 102 of Schedule III to the Regulations is repealed.

45 Parts I and II of Form CFSA 103 of Schedule III to the Regulations are replaced by the following:

Personal information of contributor making the election

_________________________________________________________
(Rank)   (Given Names)   (Last Name)

____________________
(Service Number)

1. I elect, in respect of my pensionable service described in subsection 46(2) of the Canadian Forces Superannuation Act, to surrender my right to an annuity or annual allowance under (indicate choice in the appropriate box):

☐ (a) the Public Service Superannuation Act;

OR

☐ (b) the Royal Canadian Mounted Police Superannuation Act.

I understand that in so electing I, or any person to whom any benefit might otherwise have become payable under the indicated Act, in respect of this service, will cease to be entitled to any benefit under that subsection.

2. I will pay any amount remaining unpaid for the above service in the following manner (choose only ONE plan of payment and indicate choice in the appropriate box):

☐ (a) by lump sum payment;

OR

☐ (b) by lump sum payment of $ ________, the balance to be paid in monthly instalments of $ ________, starting on the first day of the month following the month in which this election is made and continuing until the total amount required to pay for the service and interest is fully paid;

OR

☐ (c) by monthly instalments of $ ________ starting on the first day of the month following the month in which this election is made and continuing until the total amount required to pay for the service and interest is fully paid.

I understand that the above plan of payment, will be verified and may be subject to adjustment under the Canadian Forces Superannuation Act.

Signed at
______________________________ on
(Place)

_______________
(day) (month) (year)

________________________
(Signature of Contributor)

Witnessed as to signature of contributor by:

_______________________________________
(Name of Witness, printed in full)

_______________________________________
(Signature of Witness)

46 Form CFSA 105 of Schedule III to the Regulations is repealed.

47 Parts I and II of Form CFSA 106 of Schedule III to the Regulations are replaced by the following:

Personal information of contributor making the election

_________________________________________________________
(Rank)   (Given Names)   (Last Name)

____________________
(Service Number)

1. I elect not to count as pensionable service the period from
_______________
(day) (month) (year)

to _______________,
(day) (month) (year)

both dates inclusive, which is the portion of a period of service that is in excess of three months and in respect of which pay was not authorized to be paid to me because (state reasons for which no pay was authorized):

_____________________________________

_____________________________________

_____________________________________

2. The entire period of service for which pay was not authorized, including the first three months for which contributions must be paid, is the period from
_______________
(day) (month) (year)

to _______________,
(day) (month) (year)

3. I understand that the period of service described in section 1, which is the portion in excess of three months, will NOT be counted as pensionable service for computing any benefit under the Canadian Forces Superannuation Act.

Signed at
______________________________ on
(Place)

_______________
(day) (month) (year)

________________________
(Signature of Contributor)

Witnessed as to signature of contributor by:

_______________________________________
(Name of Witness, printed in full)

_______________________________________
(Signature of Witness)

48 Form CFSA 107 of Schedule III to the Regulations is repealed.

49 The Regulations are amended by replacing “past earnings election” with “pensionable earnings election” in the following provisions:

50 The Regulations are amended by replacing “Superannuation Account” with “Superannuation Account or Canadian Forces Pension Fund” in the following provisions:

51 The English version of the Regulations is amended by replacing “Public Service” with “public service”, except in the expression “Public Service Superannuation Act”, in the following provisions:

52 The French version of the Regulations is amended by replacing “des forces régulières” and “les forces régulières” with “de la force régulière” and “la force régulière”, respectively, in the following provisions:

53 The Regulations are amended by replacing “the date of the postmark” with “the postmark” in the following provisions:

54 The English version of the Regulations is amended by replacing “his” and “his or her” with “their” except in subsection 56(2).

55 The English version of the Regulations is amended by replacing “he” with “they”, with any grammatical changes that the circumstances require, except in the following provisions:

56 The English version of the Regulations is amended by replacing “he” with “he or she” in the following provisions:

57 The English version of the Regulations is amended by replacing “him” with “them” except in subsection 56(2).

Reserve Force Pension Plan Regulations

58 Subsection 4(4) of the Reserve Force Pension Plan Regulations (see footnote 2) is replaced by the following:

Exception

(4) A member shall not become a participant if they were considered to be a member of the regular force on March 1, 2007 under paragraph 8.1(1)(a) of the Canadian Forces Superannuation Regulations or if, under Part I of the Act, they, as a contributor,

59 Subsection 12(3) of the Regulations is replaced by the following:

Participant since March 1, 2007

(3) A participant, who becomes a participant on March 1, 2007 and remains a participant without interruption, may make the election beginning on the day after the first day, on or after March 1, 2007, in respect of which they are entitled to receive earnings but no earlier than the first day of the 25th month following the two periods referred to in paragraph 4(2)(a).

Exception

(4) A participant who has ceased to contribute to the Fund by virtue of paragraph 6(2)(b) is not entitled to make a past earnings election.

60 Section 14 of the Regulations is replaced by the following:

Deferment of entitlement

14 A participant who ceases to be a participant before the expiry of the period for making a past earnings election shall, on again becoming a participant, be entitled to make the election until the end of one year after the date of the written notice advising them that they have again become entitled to make it.

61 (1) Paragraph (b) of the description of B of the formula in subsection 15(2) of the Regulations is replaced by the following:

(b) the year in which the election is made or, if the participant has remained a participant since March 1, 2007, the year 2007, is the year that the participant ceased to be a participant.

(2) Section 15 of the Regulations is amended by adding the following after subsection (2):

Retroactive changes not included in calculations

(2.1) The calculation referred to in the description of B of the formula in subsection (2) shall not include any retroactive adjustments to the participant’s earnings made after the day on which they make the election referred to in subsection (1).

62 Paragraph 22(a) of the Regulations is replaced by the following:

63 (1) Paragraph 24(1)(b) of the Regulations is replaced by the following:

(2) Subsections 24(2) and (3) of the Regulations are replaced by the following:

Refund

(2) If a past earnings election is deemed not to have been made, any payments received from a plan, fund, or institution of a type referred to in paragraph 61(1)(a) shall be transferred to a plan, fund, or institution, of any type referred to in that paragraph, at the direction of the person who made the election.

New election

(3) Despite the expiry of the period for making the election, the person may make an election no later than 90 days after the later of

No election after second refusal

(4) In the case of another refusal, the person shall not make the election.

64 Section 29 of the Regulations is replaced by the following:

Deferment of entitlement

29 A participant who ceases to be a participant before the expiry of the period for making a transfer value earnings election shall, on again becoming a participant, be entitled to make the election until the end of one year after the date of the written notice advising the participant that they have again become entitled to make it.

65 Section 31 of the Regulations is replaced by the following:

90-day time limit

31 (1) In respect of a transfer value earnings election, only payments received no later than 90 days after the date of the written notice advising the participant of the amount to be paid will be taken into account.

Payment received late

(2) Payments received no later than 120 days after the date of the notice will be taken into account if the participant establishes that they gave written instructions in a timely fashion to cause the payments to be received no later than 90 days after that date and that the payments were received after that time through no fault of the participant.

66 Subsection 32(1) of the Regulations is replaced by the following:

Crediting of earnings

32 (1) The transfer value earnings shall be counted as pensionable earnings in respect of each day that the participant earned them and in the same proportion as the payments taken into account in respect of a transfer value earnings election bear to the amount required to be paid under subsection 30(1).

67 (1) Paragraph 33(1)(b) of the Regulations is replaced by the following:

(2) Subsections 33(2) and (3) of the Regulations are replaced by the following:

Refund

(2) Any payments received from a plan, fund, or institution of a type referred to in paragraph 61(1)(a) shall be transferred to a plan, fund, or institution, of any type referred to in that paragraph, at the direction of the person who made the election.

New election

(3) Despite the expiry of the period for making the election, the person may make an election no later than 90 days after the date of the notice informing the person of the refusal by the Minister of National Revenue. In the case of another refusal, the person shall not make an election.

68 Subsection 42(2) of the Regulations is replaced by the following:

Augmentation

(2) Each day of service for which pay — excluding allowances provided under the Act — was authorized to be paid during which the member was on Class “A” Reserve Service within the meaning of article 9.06 of the Queen’s Regulations and Orders for the Canadian Forces shall count as 1 2/5 days of Canadian Forces service.

69 Subsection 52(2) of the Regulations is replaced by the following:

Arrears

(2) Any amount in arrears after the pensioner’s death shall be paid to the survivor who is entitled to an annual allowance under Division 2. If there is no survivor, it shall be paid to the pensioner’s estate or succession.

70 Subsections 61(2) and (3) of the Regulations are replaced by the following:

Payment if former participant deceased

(2) If, after the option for the payment of the transfer value described in section 53 has been exercised but before that payment has been effected, the former participant dies, the following rules apply:

Apportionment

(3) If there are two persons who would have been entitled to an annual allowance under Division 2 as survivors had the transfer value option not been exercised, each of them shall be entitled to a portion determined in accordance with section 64 as if the reference to “death benefit” in that section were a reference to “excess” or “transfer value”, as the case may be.

71 The Regulations are amended by adding the following after section 62:

Division 1.1

Debit Balances in Pay Accounts

Recovery of debit balances

62.1 For the purposes of section 89 of the Act, any debit balance in the pay account of a former member of the reserve force shall be recovered

72 Section 65 of the Regulations is replaced by the following:

Minimum benefit — no survivor

65 If a participant, who has to their credit less than two years of pensionable service, dies leaving no survivor entitled to the death benefit, a death benefit equal to a return of contributions shall be paid to the estate or succession of the participant.

73 Subsection 72(2) of the Regulations is replaced by the following:

Arrears

(2) Any amount in arrears after the death of the survivor or child who has reached 18 years of age shall be paid to the estate or succession.

74 The portion of section 78 of the Regulations before the formula is replaced by the following:

Minimum benefit — no survivor or child

78 If, on the death of a participant or pensioner who has to their credit not less than two years of pensionable service, there is no survivor or child to whom an annual allowance may be paid, or if the survivor or child to whom an annual allowance may be paid dies or ceases to be entitled to it and no other amount may be paid to them under this Division, an amount equal to the amount determined by the following formula shall be paid as a death benefit to the estate or succession of the participant or pensioner:

75 Subsection 92(3) of the Regulations is amended by replacing “the date of the postmark” with “the postmark”.

Defence Services Pension Continuation Act

Defence Services Pension Continuation Regulations

76 Section 21 of the English version of the Defence Services Pension Continuation Regulations (see footnote 3) is replaced by the following:

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.

77 The portion of section 22 of the French version of the Regulations before paragraph (c) is replaced by the following:

22 Dans l’année suivant la date du choix, l’officier ou la personne agissant en son nom envoie au ministre ou à la personne désignée par celui-ci:

Coming into Force

78 (1) These Regulations, except section 9, subsection 18(2) and section 59, come into force on the day on which they are registered.

(2) Section 9 comes into force on the first day of the third month after the day on which these Regulations are registered.

(3) Subsection 18(2) and section 59 are deemed to have come into force on March 1, 2007.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

These amendments to the Canadian Forces Superannuation Regulations, the Reserve Force Pension Plan Regulations and the Defence Services Pension Continuation Regulations address a number of outstanding issues. They include recommendations received from the Standing Joint Committee for the Scrutiny of Regulations, the form and manner of requesting a reconsideration of an administrative decision by the Minister of National Defence, the repayment of any annuity or annual allowance received by a former regular force member while subsequently employed in the reserve force if they elect to count that service upon re-enrollment in the regular force, the need for administrative flexibility related to the transfer of Canadian Armed Forces pension administration to Public Works and Government Services Canada, the date supplementary death benefit coverage for a Class C reserve force member ceases, the modernization of the rules related to the recovery of debit balances, the repeal of various unessential forms and the correction of technical drafting oversights, ambiguities and gender specific language.

Background

On March 1, 2007, various amendments to the Canadian Forces Superannuation Act and its supporting regulations came into force as part of the Canadian Armed Forces Pension Modernization Project. These amendments modernized the pension arrangements for the regular force by bringing the pension benefits in line with those provided for the federal public service and, for the first time, providing pension coverage for members of the reserve force.

Since 2007, a number of minor policy issues requiring amendments have been identified. There is also a need to revise certain regulations to provide administrative flexibility to accommodate the transfer of pension administration to Public Works and Government Services Canada and to respond to concerns raised by the Standing Joint Committee for the Scrutiny of Regulations.

Objectives

The Regulations

Description and rationale

These regulatory amendments include a number of changes necessary to improve the general efficiency and equity of Canadian Armed Forces pension administration. The description and rationale for the amendments follow.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this proposal. There is no change in administrative costs, as this proposal does not apply to business.

Small business lens

The small business lens does not apply to this proposal. There is no change in costs, as this proposal does not apply to small businesses.

Implementation, enforcement and service standards

There are no increases in the actuarial liability of either of the Canadian Armed Forces pension plans and no change in their current service costs as a result of the amendments, as confirmed by the Office of the Chief Actuary.

The normal legislative, regulatory and administrative compliance structures will apply, including internal audits, reports to Parliament and responses to enquiries received from Members of Parliament, affected plan members and their representatives and other interested stakeholders.

All amendments come into force on the registration date, except

Contact

Lynne McKenna-Fleming
Director
Pension and Social Programs
National Defence Headquarters
Ottawa, Ontario
K1A 0K2
Telephone: 613-996-3700