Law:Special Retirement Arrangements Act

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S.c. 1992, c. 46, Sch. I

Assented to 1992-12-16


(Enacted as Schedule I to 1992, c. 46, in force December 16, 1994, see Si/94-146.)

Contents

Short Title

Short title

1. This Act may be cited as the Special Retirement Arrangements Act.


Interpretation

Definitions

2. In this Act,

“benefit”

« prestations »

“benefit” includes a refund of contributions and any interest payable on those contributions;

“Minister”

« ministre »

“Minister” means the President of the Treasury Board;

“pension benefit”

« prestation de retraite »

 “pension benefit” means a periodic payment to which a member or former member of a special pension plan, or the beneficiary, estate or succession of that member or former member, is or may become entitled under that pension plan;

“pension benefit credit”

« droits à pension »

“pension benefit credit” means the aggregate value at a particular time of the pension benefit and any other benefits that have accrued under a special pension plan to a member or former member of that pension plan, as calculated in the prescribed manner;

“prescribed”

Version anglaise seulement“prescribed” means prescribed by regulation;

“retirement compensation arrangement”

« régime compensatoire »

“retirement compensation arrangement”, unless the context otherwise requires, means a plan or an arrangement that is established by or under the authority of an order made under paragraph 10(a) or subsection 11(1);

“retirement compensation benefit credit”

« droits à pension compensatoires »

“retirement compensation benefit credit” means the aggregate value at a particular time of the benefits that have accrued to a person under a retirement compensation arrangement, as calculated in the prescribed manner;

“special pension plan”

« régime spécial de pension »

“special pension plan” means a pension plan established by or under the authority of an order made under paragraph 3(1)(b).

1992, c. 46, Sch. I, s. 2; 2000, c. 12, s. 292.

Previous Version

Special Pension Plans

Establishment of Plans

Plans may be established

3. (1) The Governor in Council may, on the recommendation of the Minister, by order,

(a) exempt, subject to the regulations, any person or class of persons from the application of the Diplomatic Service (Special) Superannuation Act or the Lieutenant Governors Superannuation Act;

(b) establish or authorize the establishment of a pension plan to provide pension benefits and other benefits to or in respect of any person or class of persons so exempted from the application of that Act; and

(c) designate any person as a member of a special pension plan or designate any class of persons as members of that pension plan.

Compliance with Income Tax Act, etc.

(2) A special pension plan shall

(a) comply with the provisions of the Income Tax Act and the regulations made under that Act respecting registered pension plans; and

(b) provide for the payment of supplementary benefits in relation to any pension benefit that is payable under that pension plan, calculated at the same rates and in the same manner as is provided under the Supplementary Retirement Benefits Act in respect of supplementary retirement benefits payable under that Act.

Amendments

4. (1) The Governor in Council may, on the recommendation of the Minister, by order, amend or authorize the amendment of any special pension plan.

Retroactivity of amendments

(2) An amendment to a special pension plan may, if the order by which the amendment is made or is authorized to be made so provides, be retroactive and be deemed to come into force on a day prior to the day on which the order is made, which prior day shall not be before the day on which that pension plan is established.

Void amendments

(3) An amendment to a special pension plan is void if the amendment would reduce or have the effect of reducing

(a) a pension benefit accrued under that pension plan before the day on which the amendment is made; or

(b) the pension benefit credit accrued under that pension plan in respect of that pension benefit.


Contributions

Persons required to contribute

5. Every member of a special pension plan that is designated by the regulations is required to contribute to the Registered Pension Plans Account, by reservation from that member’s salary or otherwise, in the manner and under the circumstances prescribed in respect of that pension plan, at the rate or rates established by the regulations in respect of that pension plan.


Registered Pension Plans Account

Establishment of Account

6. There shall be established in the accounts of Canada an account to be known as the Registered Pension Plans Account.

Amounts to be credited to Account

7. There shall be credited to the Registered Pension Plans Account in each fiscal year

(a) in respect of every month, an amount equal to the amount estimated by the Minister to be required to provide for the cost of the benefits that have accrued in respect of that month and that will become chargeable against the Account; and

(b) an amount representing interest on the balance from time to time to the credit of the Account, calculated at the same rates and credited in the same manner and at the same time as interest is calculated and credited in respect of the Superannuation Account continued under subsection 4(2) of the Public Service Superannuation Act.

Valuation and assets reports

8. (1) A valuation report and an assets report on the state of the Registered Pension Plans Account shall be prepared, filed with the Minister and laid before Parliament in accordance with the Public Pensions Reporting Act as if the special pension plans established under this Act were pension plans established under an Act referred to in subsection 3(1) of that Act.

Review dates

(2) For the purposes of subsection (1), the review date as of which an actuarial review of the Registered Pension Plans Account must be conducted for the purposes of the first valuation report is December 31 in the year that is four years after the day on which this subsection comes into force and, thereafter, the review dates must not be more than three years apart.

Amounts to be credited on basis of valuation report

(3) Following the laying before Parliament of any valuation report under subsection (1), there shall be credited to the Registered Pension Plans Account, at the time and in the manner determined by the Minister, such amounts as in the opinion of the Minister will, at the end of the prescribed period, together with the amount estimated by the Minister to be to the credit of the Account at that time, meet the cost of the benefits chargeable against the Account.

Payment out of Consolidated Revenue Fund

9. Benefits and other amounts payable under a special pension plan shall be paid out of the Consolidated Revenue Fund and charged to the Registered Pension Plans Account.


Retirement Compensation Arrangements

Establishment of Arrangements

Arrangements may be established

10. The Governor in Council may, on the recommendation of the Minister, by order,

(a) establish or authorize the establishment of a plan or an arrangement for the payment of benefits, of a kind referred to in the definition “retirement compensation arrangement” in subsection 248(1) of the Income Tax Act, to or in respect of any person

(i) who is required to contribute to the Superannuation Account referred to in section 4 of the Public Service Superannuation Act or to the Public Service Pension Fund as defined in subsection 3(1) of that Act,

(ii) who is required to contribute to the Canadian Forces Superannuation Account referred to in section 4 of the Canadian Forces Superannuation Act, to the Canadian Forces Pension Fund as defined in subsection 2(1) of that Act or to a fund established under regulations made under section 59.1 of that Act,

(iii) who is required to contribute to the Royal Canadian Mounted Police Superannuation Account referred to in section 4 of the Royal Canadian Mounted Police Superannuation Act or to the Royal Canadian Mounted Police Pension Fund as defined in subsection 3(1) of that Act,

(iv) to whom the Diplomatic Service (Special) Superannuation Act or the Lieutenant Governors Superannuation Act applies,

(v) who is a member of a special pension plan,

(vi) who, but for the provisions of the Income Tax Act and the regulations made under that Act respecting the registration of pension plans, would be able to accrue benefits under a special pension plan or a pension plan provided by an Act referred to in subparagraph (i), (ii), (iii) or (iv), or

(vii) who is prevented by an Act of Parliament from becoming or remaining a member of a pension plan provided by an Act referred to in subparagraph (i), (ii), (iii) or (iv); and

(b) designate any person referred to in paragraph (a) or any class of such persons as being subject to a plan or an arrangement that is established by or under the authority of an order made under that paragraph.

1992, c. 46, Sch. I, s. 10; 2002, c. 17, s. 28; 2003, c. 26, s. 65.

Previous VersionArrangements shall be established

11. (1) The Governor in Council shall, on the recommendation of the Minister, by order, as soon as is practicable after the day on which this subsection comes into force, establish or authorize the establishment of a plan or an arrangement for the payment of benefits, of a kind referred to in the definition “retirement compensation arrangement” in subsection 248(1) of the Income Tax Act, to or in respect of any person

(a) who, on or after that day, is required to contribute to the Superannuation Account referred to in section 4 of the Public Service Superannuation Act or to the Public Service Pension Fund as defined in subsection 3(1) of that Act and whose annual rate of salary is greater than the annual rate of salary that is fixed by any regulations made under paragraph 42.1(1)(a) of that Act or is greater than the annual rate that may be determined in the manner prescribed by those regulations;

(b) who, on or after that day, is required to contribute to the Canadian Forces Superannuation Account referred to in section 4 of the Canadian Forces Superannuation Act, to the Canadian Forces Pension Fund as defined in subsection 2(1) of that Act or to a fund established under regulations made under section 59.1 of that Act and whose annual rate of pay is greater than the annual rate of pay that is fixed by the regulations made under paragraph 50(1)(g) of that Act or is greater than the annual rate that may be determined in the manner prescribed by those regulations;

(c) who, on or after that day, is required to contribute to the Royal Canadian Mounted Police Superannuation Account referred to in section 4 of the Royal Canadian Mounted Police Superannuation Act or to the Royal Canadian Mounted Police Pension Fund as defined in subsection 3(1) of that Act and whose annual rate of pay is greater than the annual rate of pay that is fixed by the regulations made under paragraph 26.1(1)(a) of that Act or is greater than the annual rate that may be determined in the manner prescribed by those regulations;

(d) who is or has been a deputy head, has to the person’s credit under the Public Service Superannuation Act not less than ten years of pensionable service and elects, in accordance with the regulations, before the person ceases to be employed in the public service, to become subject to such a plan or arrangement; or

(e) who, immediately before the coming into force of section 11 of An Act to amend certain Acts in relation to pensions and to enact the Special Retirement Arrangements Act and the Pension Benefits Division Act, introduced in the third session of the thirty-fourth Parliament, was deemed by section 14 of the Public Service Superannuation Act, as it read at that time, to be employed in the Public Service.

Designation

(2) The Governor in Council shall, when establishing or authorizing the establishment of a plan or an arrangement under subsection (1), designate the persons who shall be subject to that plan or arrangement and may designate those persons either individually or by class of persons.

Idem

(3) A plan or an arrangement that is established by or under the authority of an order made under subsection (1) shall provide for the payment ofenefits to or in respect of a person described in that subsection that are equivalent in value to the value of the benefits that the person would have been able to accrue but for

(a) paragraph 5(6)(b) of the Public Service Superannuation Act;

(b) subsection 5(6) of the Canadian Forces Superannuation Act;

(c) subsection 5(9) of the Royal Canadian Mounted Police Superannuation Act; or

(d) section 11 of An Act to amend certain Acts in relation to pensions and to enact the Special Retirement Arrangements Act and the Pension Benefits Division Act, introduced in the third session of the thirty-fourth Parliament.

Definition of “deputy head”

(4) In this section, “deputy head” means the deputy head of a department, a person having by law the status of a deputy head and the chairperson, president or other chief executive officer of a portion of the public service, as defined in section 3 of the Public Service Superannuation Act, other than a department.

1992, c. 46, Sch. I, s. 11; 2002, c. 17, s. 29; 2003, c. 22, s. 225(E), c. 26, s. 66.

Previous VersionSupplementary benefits

12. A retirement compensation arrangement shall provide for the payment of supplementary benefits in relation to any periodic payments to which a person is entitled under that arrangement, calculated at the same rates and in the same manner as is provided under the Supplementary Retirement Benefits Act in respect of supplementary retirement benefits payable under that Act.

Amendments

13. (1) The Governor in Council may, on the recommendation of the Minister, by order, amend or authorize the amendment of any retirement compensation arrangement.

Retroactivity of amendments

(2) An amendment to a retirement compensation arrangement may, if the order by which the amendment is made or is authorized to be made so provides, be retroactive and be deemed to come into force on a day prior to the day on which the order is made, which prior day shall not be before the day on which that arrangement is established.

Void amendments

(3) An amendment to a retirement compensation arrangement is void if the amendment would reduce or have the effect of reducing

(a) a benefit accrued under that arrangement before the day on which the amendment is made; or

(b) the retirement compensation benefit credit accrued under that arrangement in respect of that benefit.

Advisory committees

14. (1) The Governor in Council may establish advisory committees to advise and assist the Minister on matters arising in connection with the operation of any retirement compensation arrangement or with any proposal to establish a retirement compensation arrangement.

Membership

(2) An advisory committee shall consist of eight persons appointed by the Governor in Council on the recommendation of the Minister, four of whom shall be selected from among persons who are subject to a retirement compensation arrangement or may become subject to a retirement compensation arrangement that is proposed to be established, as appropriate.

Term

(3) A member of an advisory committee shall be appointed to hold office for a term not exceeding three years.


Contributions

Persons required to contribute

15. Every person who is subject to a retirement compensation arrangement that is designated by the regulations is required to contribute to the Retirement Compensation Arrangements Account, by reservation from the person’s salary or otherwise, in the manner and under the circumstances prescribed in respect of that arrangement, at the rate or rates established by the regulations in respect of that arrangement.

Public Service corporations

16. (1) A Public Service corporation that is designated by the regulations shall pay into the Retirement Compensation Arrangements Account, at such time or times as the Minister may determine, in respect of any benefits accrued or accruing by any employee of the Public Service corporation under a retirement compensation arrangement, an amount determined in accordance with the regulations.

Definitions

(2) In this section, “employee” and “Public Service corporation” have the same meaning as in subsection 37(2) of the Public Service Superannuation Act.


Retirement Compensation Arrangements Account

Establishment of Account

17. There shall be established in the accounts of Canada an account to be known as the Retirement Compensation Arrangements Account.

Amounts to be credited to Account

18. (1) There shall be credited to the Retirement Compensation Arrangements Account in each fiscal year

(a) in respect of every month, an amount equal to the amount estimated by the Minister to be required to provide for the cost of the benefits that have accrued in respect of that month and that will become chargeable against that Account; and

(b) an amount representing interest on the balance from time to time to the credit of that Account, calculated at the same rates and credited in the same manner and at the same time as interest is calculated and credited in respect of the Superannuation Account.

Idem

(2) There shall be credited to the Retirement Compensation Arrangements Account in each calendar year an amount equal to the amount, if any, determined at the end of the year, that is refundable in respect of that Account under subsection 207.7(2) of the Income Tax Act.

Valuation and assets reports

19. (1) A valuation report and an assets report on the state of the Retirement Compensation Arrangements Account shall be prepared, filed with the Minister and laid before Parliament in accordance with the Public Pensions Reporting Act as if the retirement compensation arrangements established under this Act were pension plans established under an Act referred to in subsection 3(1) of that Act.

Review dates

(2) For the purposes of subsection (1), the review date as of which an actuarial review of the Retirement Compensation Arrangements Account must be conducted for the purposes of the first valuation report is December 31 in the year that is four years after the day on which this subsection comes into force and, thereafter, the review dates must not be more than three years apart.

Amounts to be credited on basis of valuation report

(3) Following the laying before Parliament of any valuation report under subsection (1), there shall be credited to the Retirement Compensation Arrangements Account, at the time and in the manner determined by the Minister, such amounts as in the opinion of the Minister will, at the end of the prescribed period, together with the amount estimated by the Minister to be to the credit of the Account at that time, meet the cost of the benefits chargeable against the Account.

Amounts to be charged to Account

20. (1) There shall be charged to the Retirement Compensation Arrangements Account in each calendar year an amount equal to the amount of tax, if any, that is payable for that year in respect of the Account under subsection 207.7(1) of the Income Tax Act.

Amounts to be credited to other accounts

(2) The amounts charged to the Retirement Compensation Arrangements Account under subsection (1) shall be credited to the appropriate account in the accounts of Canada.

Payment out of Consolidated Revenue Fund

21. Benefits and other amounts payable under a retirement compensation arrangement shall be paid out of the Consolidated Revenue Fund and charged to the Retirement Compensation Arrangements Account.


General

Benefits not assignable, etc.

22. Subject to Part II of the Garnishment, Attachment and Pension Diversion Act and to the Pension Benefits Division Act,

(a) a benefit under a special pension plan or retirement compensation arrangement is not capable of being assigned, charged, anticipated or given as security, and any transaction that purports to assign, charge, anticipate or give as security any such benefit is void;

(b) a benefit to which a person is entitled under a special pension plan or retirement compensation arrangement is not capable of being surrendered or commuted during the lifetime of that person, and any transaction that purports to so surrender or commute any such benefit is void; and

(c) a benefit under a special pension plan or retirement compensation arrangement is exempt from attachment, seizure and execution, either at law or in equity.

1992, c. 46, Sch. I, s. 22; 2000, c. 12, s. 293.

Remedial action

23. Where the Minister is satisfied that, as a result of erroneous advice or an administrative error on the part of any person acting in an official capacity in the administration of a special pension plan, a retirement compensation arrangement or this Act, a person has been denied a benefit to which the person was entitled or the opportunity to exercise a right, to elect a benefit or to opt for a benefit, the Minister may take such remedial action as the Minister considers appropriate to place that person in the position that the person would have been in if that erroneous advice had not been given or that administrative error had not been made.

Recovery of amounts due

24. (1) Where a member or former member of a special pension plan or a person subject to a retirement compensation arrangement dies and an amount payable by that member, former member or person into the Registered Pension Plans Account or Retirement Compensation Arrangements Account remains due at the time of death, that amount, together with interest at the prescribed rate or determined in the prescribed manner, from the time that amount became due, may be recovered in the prescribed manner from any benefit payable under that pension plan or arrangement in respect of that member, former member or person, without prejudice to any other recourse available to Her Majesty in right of Canada with respect to the recovery thereof.

Amounts to be credited to appropriate Account

(2) An amount recovered under subsection (1) shall be credited to the Registered Pension Plans Account or the Retirement Compensation Arrangements Account, as appropriate.

Recovery of amounts paid in error

25. Subject to the regulations, where an amount is paid in error under a special pension plan or retirement compensation arrangement on account of any benefit payable on a periodic basis, the Minister may authorize the retention, by way of deduction from any subsequent payment of that benefit, of the amount paid in error, together with interest at the prescribed rate or determined in the prescribed manner, from the time the amount was paid in error, and any charge prescribed in respect thereof, without prejudice to any other recourse available to Her Majesty in right of Canada with respect to the recovery thereof.

Annual report

26. (1) The Minister shall in each fiscal year prepare a report on the administration of this Act during the preceding fiscal year, which report shall include a statement showing the amounts paid into and out of the Registered Pension Plans Account and the Retirement Compensation Arrangements Account during that year, by appropriate classifications, the number of persons contributing to each Account and the number of persons receiving benefits under the special pension plans and retirement compensation arrangements established under this Act, together with such additional information as the Governor in Council may require.

Report to be laid before Parliament

(2) The Minister shall cause every report prepared under subsection (1) to be laid before each House of Parliament on any of the first thirty days on which that House is sitting after it is prepared.

Governor in Council may exempt

27. The Governor in Council may, on the recommendation of the Minister, by order, exempt, subject to the regulations, any person or class of persons from the application of the Public Service Superannuation Act, the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, if that person or class of persons

(a) would not be eligible to receive a pension benefit under that Act were that Act to apply to that person or class of persons;

(b) would not be eligible to receive any additional pension benefit were that Act to continue to apply to that person or class of persons; or

(c) is subject to any other pension plan that is registered under the Income Tax Act.

Regulations

28. (1) The Governor in Council may, on the recommendation of the Minister, make regulations

(a) respecting the time or times at which a person or class of persons becomes exempt from the application of theDiplomatic Service (Special) Superannuation Act or theLieutenant Governors Superannuation Act by an order made under paragraph 3(1)(a) and respecting the manner in which and extent to which any provision of that Act or the regulations made under that Act applies, notwithstanding the exemption, to that person or class of persons and to other persons affected by the exemption, and adapting any such provision to those persons or that class of persons, where necessary for the purpose of providing for the consequences of the exemption or of ensuring the practical operation of that Act or those regulations and a special pension plan;

(b) prescribing the time or times at which a person becomes or ceases to be a member of a special pension plan or is deemed to become or to cease to be a member for the purposes of that pension plan or this Act;

(b.1) specifying the persons who may be beneficiaries of a pension benefit;

(c) for the purposes of section 5, designating special pension plans, defining the word “salary”, and establishing the rate or rates at which persons shall contribute to the Registered Pension Plans Account in respect of a special pension plan;

(d) respecting the crediting to the Registered Pension Plans Account and the charging to the Consolidated Revenue Fund of amounts representing the aggregate value at any particular time of any benefits that have accrued to a person under theDiplomatic Service (Special) Superannuation Act or theLieutenant Governors Superannuation Act, as calculated in the prescribed manner;

(e) respecting the conditions under which and the extent to which the employment or service that relates to the benefits referred to in paragraph (d) may be counted as pensionable employment or service for the purposes of a special pension plan;

(f) prescribing the time or times at which a person becomes or ceases to be subject to a retirement compensation arrangement or is deemed to become or to cease to be subject to a retirement compensation arrangement for the purposes of that arrangement or this Act;

(g) respecting elections under paragraph 11(1)(d);

(h) for the purposes of section 15, designating retirement compensation arrangements, defining the word “salary” and establishing the rate or rates at which persons shall contribute to the Retirement Compensation Arrangements Account in respect of a retirement compensation arrangement;

(i) designating Public Service corporations for the purposes of subsection 16(1) and determining the amounts that Public Service corporations shall pay into the Retirement Compensation Arrangements Account under that subsection;

(j) respecting any overpayment made out of the Registered Pension Plans Account or the Retirement Compensation Arrangements Account and respecting the deletion, writing off and remission of amounts required to be paid into either Account;

(k) respecting the administration of any special pension plan or retirement compensation arrangement;

(l) respecting the termination or winding-up of any special pension plan or retirement compensation arrangement;

(m) respecting the retention of an amount referred to in section 25;

(n) respecting the time or times at which any person or class of persons becomes exempt from the application of thePublic Service Superannuation Act, theCanadian Forces Superannuation Act or theRoyal Canadian Mounted Police Superannuation Act by an order made under section 27 and respecting the manner in which and extent to which any provision of that Act or the regulations made under that Act applies, notwithstanding the exemption, to that person or class of persons and to other persons affected by the exemption, and adapting any such provision to those persons or that class of persons, where necessary for the purpose of providing for the consequences of the exemption;

(o) prescribing any matter or thing that by this Act is to be or may be prescribed; and

(p) generally as the Governor in Council may consider necessary for carrying out the purposes and provisions of this Act.

Retroactive application of regulations

(2) Regulations made under paragraph (1)(a), (b), (c), (h), (i) or (n) may, if they so provide, be retroactive and have effect with respect to any period before they are made.

1992, c. 46, Sch. I, s. 28; 2000, c. 12, s. 294.

Previous Version


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