Public Service Superannuation Act (R.S.C., 1985, c. P-36)

Group 2 Contributors with Two or More Years of Pensionable Service

Marginal note:Group 2 contributors with two or more years of pensionable service

• 13.001 (1) The following provisions are applicable in respect of any Group 2 contributor described in subsection 12.1(1) who has to his or her credit two or more years of pensionable service:

  • (a) if the contributor ceases to be employed in the public service, having reached 65 years of age, he or she is entitled to an immediate annuity;

  • (b) if the contributor ceases to be employed in the public service, not having reached 65 years of age, by reason of having become disabled, he or she is entitled to an immediate annuity;

  • (c) if the contributor ceases to be employed in the public service, not having reached 65 years of age, for any reason other than disability, he or she is entitled to

    • (i) if at the time he or she ceases to be so employed, he or she has reached 60 years of age and has to his or her credit not less than 30 years of pensionable service, an immediate annuity, or

    • (ii) in any other case, at his or her option,

      • (A) a deferred annuity,

      • (B) if at the time he or she ceases to be so employed, he or she has reached 55 years of age and has to his or her credit not less than 25 years of pensionable service, an annual allowance, payable immediately on his or her exercising his or her option, equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying 5% of the amount of that annuity by

        • (I) 60 minus his or her age in years, to the nearest 1/10 of a year, at the time he or she exercises his or her option, or

        • (II) 30 minus the number of years, to the nearest 1/10 of a year, of pensionable service to his or her credit,

        whichever is the greater,

      • (C) if at the time he or she ceases to be so employed, he or she has reached 60 years of age, has been employed in the public service for a period of or for periods totalling at least 10 years and does not voluntarily retire from the public service, an annual allowance, payable immediately on his or her so ceasing to be employed, equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying

        • (I) 5% of the amount of that annuity

        by

        • (II) 30 minus the number of years, to the nearest 1/10 of a year, of pensionable service to his or her credit,

        except that in any such case the whole or any part of the reduction provided for by this clause may be waived by the Treasury Board, or

      • (D) an annual allowance, payable

        • (I) immediately on his or her exercising his or her option, in the case of a contributor 55 or more years of age, or

        • (II) on his or her reaching 55 years of age, in the case of a contributor who exercises his or her option when he or she is less than 55 years of age,

        which allowance shall be equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying

        • (III) 5% of the amount of that annuity

        by

        • (IV) 65 minus his or her age in years, to the nearest 1/10 of a year, at the time the allowance becomes payable; and

  • (d) if he or she becomes disabled, not having reached 65 years of age but having become entitled to

    • (i) a deferred annuity, he or she ceases to be entitled to that deferred annuity and becomes entitled to an immediate annuity, or

    • (ii) an annual allowance, he or she ceases to be entitled to that annual allowance and becomes entitled to an immediate annuity, which shall be adjusted in accordance with the regulations to take into account the amount of the annual allowance he or she has received.

• Marginal note:Allowance to survivor and children

  (2) On the death of a contributor who, at the time of death, was entitled under subsection (1) to an immediate annuity or a deferred annuity, or to an annual allowance payable immediately or on reaching 55 years of age, the contributor’s survivor and children are entitled to an annual allowance, respectively, as described in paragraphs 12.1(5)(a) and (b) and subject to the limitations set out in subsections 12.1(5) and (6).

• Marginal note:Allowance to survivor and children

  (3) On the death of a Group 2 contributor described in subsection 12.1(1) who was employed in the public service at the time of death, having to his or her credit two or more years of pensionable service, the contributor’s survivor and children are entitled to the annual allowances to which they would have been entitled under subsection (2) had the contributor, immediately before his or her death, become entitled under subsection (1) to an immediate annuity or a deferred annuity or an annual allowance payable immediately or on reaching 55 years of age.

• Marginal note:Voluntary retirement of Group 2 contributor

  (4) Despite anything in this section, a Group 2 contributor described in subsection 12.1(1) who voluntarily retires from the public service, not having been employed in it substantially without interruption for a period of two years immediately before retirement from it, is entitled only to a return of contributions.

• Marginal note:Exceptions

  (5) Subsection (4) does not apply to a contributor described in paragraph 10(5)(c) or subsection 10(7) or a contributor who has made an election in respect of any period specified in clause 6(1)(b)(iii)(M) or under subsection 39(6) or under any regulations made under subsection 42(8).

• Marginal note:Calculation of period of service

  (6) For the purposes of subsection (4), in calculating the period during which a contributor has been employed in the public service, there shall be included any period of service of the contributor

  • (a) as a member of the regular force or as a member of the Force; or

  • (b) with an eligible employer with whom the Minister has entered into an agreement under section 40.2, that the contributor is, in accordance with the agreement, entitled to count as pensionable service for the purposes of this Part,

  that is within a period of two years immediately before his or her retirement from the public service.

• Marginal note:When annual allowance to be adjusted

  (7) If a contributor described in paragraph (1)(c) who was receiving an annual allowance payable under this Part is subsequently re-employed in the public service, the amount of any annuity or annual allowance to which that contributor may become entitled under this Part on again ceasing to be employed in the public service shall be adjusted in accordance with the regulations to take into account the amount of the annual allowance that he or she has received.

Group 1 and Group 2 Contributors with Two or More Years of Pensionable Service

Marginal note:Transfer value

• 13.01 (1) Despite any other provision of this Act, except subsections 40(7) and 40.2(6), but subject to the regulations, a contributor who has ceased to be employed in the public service and is not entitled to an immediate annuity and has to the contributor’s credit two or more years of pensionable service is entitled, in the place of any other benefit under this Act to which the contributor would otherwise be entitled in respect of that period of pensionable service, to a transfer value that is payable to the contributor in accordance with subsection (2).

• Marginal note:Where transferred

  (2) The payment of a transfer value to which a contributor may be entitled pursuant to subsection (1) is effected by transferring it to, at the direction of the contributor,

  • (a) a pension plan selected by the contributor that is registered under the Income Tax Act, if that pension plan so permits;

  • (b) a retirement savings plan or fund for the contributor that is of the prescribed kind; or

  • (c) a financial institution authorized to sell immediate or deferred life annuities of the prescribed kind, for the purchase from that financial institution of such an annuity for the contributor.

• Marginal note:Election to pay by instalments

  (3) Where a contributor who is entitled to a transfer value has elected to pay for a period of pensionable service by means of instalments, the transfer value to which that contributor may become entitled under subsection (1) shall be determined in accordance with the regulations and by reference to the portion of the period of pensionable service that the contributor has paid for at the time the transfer value becomes payable.

Marginal note:Return of contributions where previous transfer value

13.02 Where a contributor is entitled to a return of contributions in respect of a period of service described in clause 6(1)(b)(iii)(M) for which the contributor has made an election, the return of contributions in respect of that service shall be paid in accordance with subsection 13.01(2).