Defence Services Pension Part V Regulations

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-55-416/FullText.html

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Defence Services Pension Part V Regulations

SOR/55-416DEFENCE SERVICES PENSION CONTINUATION ACT
Registration 1955-11-03
Regulations — Defence Services Pension Act — Part V
P.C. 1955-1636 1955-11-03Short Title and Application

1 These regulations are applicable only to Part V of the Defence Services Pension Act and may be cited as the Defence Services Pension Part V Regulations.

Interpretation

2 In these regulations,

Act
Act means the Defence Services Pension Act; (Loi)
a(f) Ultimate Table
a(f) Ultimate Table means the table so entitled appearing in the “Mortality of Annuitants 1900-1920” published on behalf of the Institute of Actuaries and The Faculty of Actuaries in Scotland, 1924; (a (f) Ultimate Table)
annuity
annuity means an annuity, immediate or deferred, or annual allowance payable in accordance with the Public Service Superannuation Act; (rente viagère)
gratuity
gratuity means a payment of an amount equal to one month’s pay and allowances for each year of service, pursuant to the Act or pay regulations, or an equivalent benefit pursuant to the Civil Service Superannuation Act, the Public Service Superannuation Act, or the Royal Canadian Mounted Police Act; (gratification)
Minister
Minister means the Minister of National Defence; (Ministre)
Parts I to V
Parts I to V means the respective Parts of the Act; (Parties I à V)
pension
pension means a pension granted, pursuant to Part V, to a person in respect of his service; (pension)
pensioner
pensioner means a person to whom a pension has been granted; and (pensionné)
public service
public service means all branches or portions of the public service of Canada to which the Public Service Superannuation Act is applicable. (service public)

Rates of Allowances

3 The rates of allowances which shall constitute part of pay and allowances for the purposes of Part V shall, according to the rank of the contributor, be the following monthly rates:



Not in Receipt of Marriage Allowance$

In Receipt of Marriage Allowance$

Rear-Admiral

172
212

Major-General

Air Vice-Marshal

Commodore

160
200

Brigadier

Air Commodore

Captain

146
186

Colonel

Group Captain

Commander

133
173

Lieutenant-Colonel

Wing Commander

Lieutenant-Commander

120
160

Major

Squadron Leader

Lieutenant

101
157

Captain

Flight Lieutenant

Sub-Lieutenant

96
157

Lieutenant

Flying Officer

Acting Sub-Lieutenant and Naval Cadet

72
138

Second Lieutenant and Officer Cadet

Pilot Officer and Flight Cadet

Midshipman

68
138

Commissioned Officer (RCN)

101
157

Chief Petty Officer 1st Class

99
139

Warrant Officer Class 1 (Army and Air Force)

Chief Petty Officer 2nd Class

96
136

Warrant Officer Class 2 (Army and Air Force)

Petty Officer 1st Class

96
136

Staff Sergeant

Flight Sergeant

Petty Officer 2nd Class

87
136

Sergeant

Leading Seaman, Corporal and Ranks below

76
136

Contributions

4 Contributions by way of reservations from pay and allowances shall commence from the date on which a person becomes subject to Part V.

5 A person who makes contributions under Part V and is subsequently found not to be eligible to be a contributor under that Part shall have all such contributions repaid to him without interest.

Arrears of Contributions

6 For the purpose of computing interest on arrears of contributions, pursuant to section 48 of the Act, the total pay and allowances received by a contributor during any fiscal year shall be deemed to have been received on the first day of October of that fiscal year.

7 The total amount of arrears of contributions payable pursuant to sections 48 and 56 of the Act, may be paid in instalments equivalent in value to the total amount of arrears, computed on the basis of the Canadian Life Table No. 2 (1941), Males or Females, as the case may be, with interest at the rate of four per centum per annum.

8 (1) A contributor or a former contributor in respect of whom a periodic scheme of payment of arrears of contributions is in effect, may, at any time, elect to pay those areas in one sum or in instalments equivalent in value to the arrears, over a shorter period.

(2) Where the amount of the arrears of contributions, as verified by the service authorities, is greater than the amount set out in the provisional computation submitted by the contributor, the contributor may elect, but only once, to pay the unpaid portion of the verified arrears

(a) if he has originally elected to pay the arrears in one sum, then either in one sum or in instalments equivalent in value to the total amount of arrears; or

(b) if he has originally elected to pay the arrears by instalments, then by instalments equivalent in value to the total amount of the arrears, over a longer period, provided that

(i) he has made his further election prior to acknowledging as correct the amount of the arrears, as verified by the service authorities, or
(ii) he has, prior to the first day of September, 1950, acknowledged as correct the amount of the arrears, as verified by the service authorities.

(3) Where, under this section, a contributor has elected to pay arrears of contributions under a periodic scheme of payment, the required instalments shall be computed as prescribed by section 7 provided, however, that the amount of such instalments shall not be reduced more than five per centum of the amount elected to be paid in the provisional computation submitted by the contributor.

9 (1) The amount of contributions made by a contributor in respect of a period of service under any other Part of the Act, the Civil Service Superannuation Act, the Public Service Superannuation Act or the Royal Canadian Mounted Police Act (other than Part IV thereof), shall be transferred to the Permanent Services Pension Account and shall, if it constituted the full contribution required thereunder and no annuity, gratuity or other benefit has been paid in respect of that period of service, be deemed to be the appropriate contribution for that period for the purposes of Part V.
(2) Where the contributions transferred to the Permanent Services Pension Account in accordance with subsection (1) do not constitute the full contributions required in respect of that period of service, the contributor shall pay the balance either in one sum or in instalments computed as prescribed by section 7.

10 A contributor who has service for which he made contributions under any Part of the Act, the Civil Service Superannuation Act, the Public Service Superannuation Act or the Royal Canadian Mounted Police Act (other than Part IV thereof) and has been paid a benefit, in respect of that service, equal only to the amount of his total contributions may elect to count that service and the contributions required shall be the same as if section 11 were applicable.

11 (1) A contributor who had service for which he made contributions under any Part of the Act, the Civil Service Superannuation Act, the Public Service Superannuation Act or the Royal Canadian Mounted Police Act (other than Part IV thereof) and in respect of that service has been paid a gratuity, may elect to count the whole or any part of such service for the purpose of Part V.
(2) In the event a contributor elects to count the whole period of service described in subsection (1), the contribution shall be an amount equal to the gratuity received by the contributor together with simple interest at four per centum per annum from the date of payment of the gratuity to the date of election to count that period of service.
(3) In the event a contributor elects to count a part of the period of service described in subsection (1), the contribution shall be that proportion of the total gratuity and interest of which the part elected is of the whole of the service.
(4) The amount of the contributions required under this section may be paid in one sum or in instalments computed as prescribed by section 7.

12 A contributor who immediately prior to becoming a contributor under Part V has service in the forces as an officer appointed temporarily or under a commission for a fixed term, may have such service counted for the purpose of computing a pension or gratuity under Part V if

(a) the amount of deferred pay at the rate of six per centum of the pay and of the allowances prescribed by section 3 withheld in accordance with the appropriate Pay and Allowance Regulations is transferred to the Permanent Services Pension Account as contributions for such service, and
(b) the amount of any gratuity paid in respect of such service under Pay and Allowance Regulations is refunded by the contributor.

13 (1) A contributor other than a contributor to whom section 12 applies who prior to becoming a contributor under Part V had service in the forces as an officer appointed temporarily or under a commission for a fixed term and who on termination of such services was paid under the appropriate Pay and Allowances Regulations an amount equal to the amount of the deferred pay deducted or a gratuity or both, may have such service counted for the purpose of computing a pension or gratuity under Part V if

(a) he contributes the amount of deferred pay previously refunded to him, together with simple interest at four per centum per annum for the period from the date of refund of such deferred pay to the date of his election to count such service under subsection (4) of section 56 of the Act, and
(b) the amount of any gratuity paid under the provision of Pay and Allowance Regulations is refunded to the Receiver General together with simple interest at four per centum per annum for the period from the date of payment to the date of election to count such service under the provisions of subsection (4) of section 56 of the Act.

(2) The payment required under subsection (1) may be made in one sum or in instalments as prescribed by section 7.

14 The rates of allowances in respect of a contributor who, before or after the coming into force of this section, elected pursuant to subsection (1) of section 48 of the Act to contribute in respect of service described in subparagraph (iii) of paragraph (i) of subsection (1) of section 45 of the Act shall, for the purposes of subsection (2b) of section 48 of the Act, be those set out in section 3 in effect at the date of his election for the rank or ranks in the Canadian forces corresponding to the rank or ranks held by him during that service.
SOR/60-79, s. 1.

15 (1) A contributor who pursuant to subsection (1) of section 48 of the Act elects to contribute in respect of service as described in subparagraphs (i) and (ii) of paragraph (i) of subsection (1) of section 45 of the Act shall for the purposes of Part V have his contributions, interest, pension and gratuity computed on the following emoluments:

(a) in respect of time served in the civil service, subject to section 20, the same emoluments as those on which contributions would have been required to be made under the Civil Service Superannuation Act, or the Public Service Superannuation Act;
(b) in respect of time served in the Royal Canadian Mounted Police, the same emoluments as those on which pension under the Royal Canadian Mounted Police Act would have been calculated had the contributor by reason of his service in the Royal Canadian Mounted Police, become eligible for a pension under the Royal Canadian Mounted Police Act;

(c) in respect of time served on active service in the naval, army or air forces of His Majesty raised in Canada during time of war the following and no other active service rates of pay and allowances:

(i) in the case of service with the naval forces, pay of rank or rating, command money, specialist pay, non-substantive pay, staff pay and marriage and dependents’ allowances for wives and dependent children and subsistence allowance at standard rates payable in respect of service in Canada whether or not such last mentioned allowance was in fact paid;
(ii) in the case of service with the army, pay of rank, classified rates of pay, consolidated pay, command pay, trades pay, additional pay while extra regimentally employed and marriage and dependents’ allowances for wives and dependent children and subsistence allowance at standard rates payable in respect of service in Canada whether or not such last mentioned allowance was in fact paid; and
(iii) in the case of service with the air force, either consolidated pay, classified rates of pay or pay of rank and group (excluding the difference between General List and Non-Flying rates of pay, when General List rates of pay were in issue), and command pay and headquarters pay and marriage and dependents’ allowances for wives and dependent children and subsistence allowance at standard rates payable in respect of service in Canada whether or not such last mentioned allowance was in fact paid.

(2) The amount of contributions required of a contributor in respect of service for which he elects under subsection (2a) of section 48 of the Act is as follows:

(a) if he was a contributor immediately prior to the coming into force of this subsection, having served continuously in the forces from that date to the date of election, and the election is made within one year of the coming into force of this subsection; or
(b) if he was a former contributor prior to the coming into force of this subsection to whom paragraph (a) did not apply and the election is made within one year of his first becoming a contributor subsequent to the coming into force of this subsection;

the amount required is an amount equal to the amount he would be required to contribute had he elected under subsection (1) of section 48 of the Act, and
(c) if he is not a contributor as described in paragraph (a) or (b) the amount required is an amount equal to that which he would have been required to contribute had he elected under subsection (1) of section 48 of the Act, but computed on his current rate of pay together with allowances set out in section 3 applicable to his rank.

(3) An election in respect of service for which a contributor might have elected to contribute, but for which he failed so to elect in the time prescribed therefor, is an election made under subsection (2a) of section 48 of the Act, notwithstanding that he may have been retired and re-enrolled subsequent to the failure to so elect.

(4) Every medical examination required by subsection (6) of section 48 of the Act shall be undergone by the contributor required to be so examined

(a) within such time before or after the making of the election by that contributor as the Minister prescribes; and
(b) before a service medical officer or civilian medical practitioner who shall examine him in accordance with the medical standards applicable to his employment and shall certify that the contributor has passed or not passed the medical examination.

16 (1) A contributor who, pursuant to subsection (1) of section 48 of the Act, elects to contribute in respect of service as described in subparagraph (iv) of paragraph (i) of subsection (1) of section 45 of the Act, shall for the purposes of Part V be deemed to have received pay on a full-time basis for the rank or ranks held by him during that service at the basic rates for the equivalent rank or ranks prescribed by the relevant pay regulations, together with the allowances set out in section 3 for the equivalent rank or ranks held by him during that service in effect at the date of his election.
(2) The contribution required for such service shall be one-fourth of the contribution which would have been required if the whole of such service might be counted.

17 (1) A contributor who had officer status under Parts I to IV at the date of his election to become a contributor under Part V and who pursuant to subparagraph (v) of paragraph (i) of subsection (1) of section 45 of the Act had service which may be counted as service under any other Part of the Act shall at the date of retirement have fulfilled the conditions required under paragraph (e) of section 7 or subparagraph (ii) of paragraph (e) of section 36 or subparagraph (iii) of paragraph (d) of section 40 of the Act as applicable, in order that such service may be counted as half-time.
(2) A contributor who elects to count service as described in subsection (1) shall contribute for such service on the basis that it may count as half-time rather than one-quarter time in anticipation of his fulfillment of the conditions described in subsection (1).
(3) In the event that at date of retirement a contributor has not fulfilled the conditions of subsection (1), he shall be entitled to a refund of contributions equal to the difference between the amount he contributed and the amount he should have contributed were such service to count as one-quarter time.
(4) This section applies to every contributor who at any time elected to become a contributor under Part V on or before the thirty-first day of December, 1950, notwithstanding that his election may have been made prior to the coming into force of this section.

18 (1) A contributor who, pursuant to subsection (1) of section 48 of the Act, elects to contribute in respect of service as described in subparagraph (v) of paragraph (i) of subsection (1) of section 45 of the Act, shall for the purposes of Part V have his contributions and interest computed

(a) in respect of service described in paragraph (e) of section 7, subparagraph (ii) of paragraph (e) of section 36 and subparagraph (iii) of paragraph (d) of section 40 of the Act,

(i) the pay for the rank or ranks held by him during that service at the basic rates prescribed by the relevant regulations together with allowances set out in section 3 for the rank or ranks held by him during that service at the date of his election,
(ii) the contribution, required for one-half of that service shall be one-half of the contribution which would be required if the whole of that service might be counted and the contribution required for any part of that service less than one-half thereof, shall be that proportion of the said contribution for the said one-half which the said part is of the said one-half;

(b) in respect of service in the “force” or “forces” as defined in Parts I, II and III, such of the pay, and allowances in money or in kind, as were paid to or on behalf of the contributor during his said service upon which pension would have been calculated had he become eligible for a pension under Parts I, II and III; and
(c) in respect of the service referred to in paragraph (f) of section 7, and paragraph (f) of subsection (3) of section 13 of the Act, the pay and allowances payable to or on behalf of the contributor for that service.

19 A contributor who had service in the forces as described in subsection (2) of section 56 of the Act shall for the purposes of Part V have his pension contributions for that service calculated on the pay and allowances which were payable in money or in kind to or on behalf of the contributor during that service and upon which pension would have been calculated had he become eligible for a pension under Parts I, II and III.

20 The contribution required for the period during which a contributor under the Civil Service Superannuation Act, or the Public Service Superannuation Act was absent on leave from the civil service or the public service on active or full-time service in Her Majesty’s forces shall be computed on the pay and allowances payable to the contributor during the period of that service.

Absence from Duty or Secondment

21 (1) Subject to subsections (6) and (7), a contributor who, before or after the coming into force of this subsection, was absent from duty in the naval, army or air forces of Canada for any purpose, including absence on leave without pay and allowances or secondment without pay and allowances, shall, whether or not he was a contributor at the time of such absence, contribute, in respect of such period of absence by making payments in accordance with subsection (2), and such period of absence shall be counted as service for the purposes of computing a pension or gratuity.

(2) The contributions required to be paid by a contributor to whom subsection (1) applies shall be payable

(a) where the period does not exceed ninety-two days, monthly by means of a debit to his pay account; or

(b) where the period exceeds ninety-two days, by

(i) monthly remittances in favour of the Receiver General of Canada, or
(ii) reservations in equal instalments from his pay and allowances for a period commencing on the expiration of his absence from duty equal to the period during which he was absent from duty.

(3) Notwithstanding anything in this section, a contributor may pay, in one sum, at any time prior to the expiration of the period described in subparagraph (ii) of paragraph (b) of subsection (2), the amount payable by him into the Consolidated Revenue Fund in respect of any period he is absent from duty.
(4) Where a contributor, granted a period of absence on leave or secondment as prescribed in subsection (1), has elected to pay arrears of contributions pursuant to section 48 of the Act by instalments, those instalments shall be paid in the manner set out in subsection (2).

(5) When any amount payable by a contributor under this section is unpaid at the time of his retirement, that amount shall be paid out of any pension or gratuity that is payable under the Act to the contributor

(a) in one sum from the gratuity, or
(b) by reservation out of any pension in equal instalments for a period equal to that portion of the period described in subparagraph (ii) of paragraph (b) of subsection (2) during which no contributions were made by him as required by that subsection.

(6) A continuous period of absence from duty in excess of sixty days in respect of which

(a) a forfeiture of pay and allowances is imposed,
(b) a deduction in an amount equal to the whole of the pay and allowances withheld is imposed by reason of suspension from duty, or
(c) a continuous combination of the periods described in (a) and (b),

shall not be counted as service for the purposes of computing a pension or gratuity and no contributions shall be deducted in respect of that period.

(7) A contributor who has been absent from duty as described in subsection (1) may,

(a) within one year after the coming into force of this subsection, in the case of a period of absence ending before the coming into force of this subsection, or
(b) within thirty days after the end of such period of absence, in the case of a period of absence ending after the coming into force of this subsection,

elect not to contribute in respect of such period of absence, in which case that period of absence shall not be counted for the purposes of computing a pension or gratuity under the Act, and no contributions shall be required by this section in respect of that period.

SOR/59-105, ss. 1, 2.

22 For the purpose of making contributions and computing a pension or gratuity in respect of service to be counted pursuant to section 21, the contributor shall be deemed to have been in receipt of pay and allowances during a period of absence from duty or secondment at the same rate as that which was prescribed for the rank or appointment held by him at the commencement of the period, except that

(a) if during that period his rate of pay and allowances is increased or decreased for any reason, then such rate from the date it became effective shall be deemed to be the pay and allowances of which he was in receipt, or
(b) if during a period of secondment the contributor does not receive pay and allowances according to the appropriate regulations in effect from time to time for his service, the rate of pay and allowances he shall be deemed to receive shall be as determined by Treasury Board.

Service

23 For the purposes of subparagraph (iii) of paragraph (i) of subsection (1) of section 45 of the Act, time served as described in that subparagraph, on or prior to the 30th day of September, 1947, is included as a period of service.

24 (1) Time served as described in subparagraph (vi) of paragraph (i) of subsection (1) of section 45 of the Act, may be included as service if the contributor during that service received the pay of his rank as though he were a member of the forces.
(2) Where a contributor prior to the war which commenced on the 10th day of September, 1939, served as an officer in the Royal Canadian Air Force other than the Permanent Active Air Force, for a continuous period of full-time service, but did not receive the pay of his rank as though he were in the forces, and subsequently served on active service during that war and during such period of full-time service received remuneration by way of pay, or pay and allowances, according to the service regulations applicable to his appointment, then in that case, such continuous period of full-time service may be included for the purpose of making contributions and computing a pension or gratuity to which he may be entitled under Part V.

(3) The contributions required to be paid by a contributor

(a) for a period of service described in subsection (1) or (2) which commenced prior to the 1st day of October, 1946, shall be based upon the pay payable to him by reason of the rank or appointment held by him during such service together with marriage and dependents’ allowances for wives and dependent children and subsistence allowance at standard rates payable in respect of service in Canada whether or not such last mentioned allowance was in fact paid; and
(b) for a period of service described in subsection (1) which commenced on or after the 1st day of October, 1946, shall be based on the pay payable to him by reason of the rank or appointment held by him together with the allowances prescribed for his rank by section 3 during such service.

SOR/60-79, s. 2.

24A (1) Pursuant to paragraph (i) of section 61 of the Act, service in any of the forces of Newfoundland and service with the Government of Newfoundland shall, for the purposes of making contributions and of computing pensions and gratuities under this Part, include

(a) service corresponding to service described in subparagraph (iv) or (vi) of paragraph (i) of subsection (1) of section 45 of the Act, and such service shall be deemed to be service described in the applicable subparagraph, and
(b) service prior to the 1st day of April, 1949, in a service of the Government of Newfoundland that has been taken over by Canada pursuant to the Terms of Union of Newfoundland with Canada and which is pensionable service under the Public Service Superannuation Act, and such service shall be deemed to be service described in subparagraph (i) of paragraph (i) of subsection (1) of section 45 of the Act,

except

(c) service that may be counted under any other provision of subsection (1) of section 45 of the Act, or
(d) service which the contributor, pursuant to subsection (2) of section 21 of the Public Service Superannuation Act, elected not to count as pensionable service under that Act.

(2) Subject to subsection (3), a contributor who has had service described in subsection (1) may elect to contribute in respect of such service within one year of becoming a contributor or within one year after the 1st day of March, 1960, whichever is the later, and the provisions of subsection (5) of section 48 of the Act shall be applicable to that election.
(3) A contributor who, on or after the 1st day of April, 1949, and before the 1st day of March, 1960, signed a form purporting to elect to contribute for service described in subsection (1), or otherwise signified in writing his intention to contribute for such service, shall be deemed, as of the date of so signing or signifying, to have elected to contribute for such service under subsection (1) of section 48 of the Act.
(4) The amount of contributions required in respect of an election pursuant to subsection (2) or (3) shall be an amount equal to the amount he would be required to contribute had he elected to contribute for such service under subsection (1) of section 48 of the Act.

SOR/60-79, s. 3.

Augmentation of Pension

25 (1) For the purpose of this section and of sections 26 to 32 inclusive, and subject to subsection (4) of section 30 and subsection (2) of this section, augmenting service means any period, subsequent to the grant of a pension, of continuous full-time paid service of one year or more

(a) in the forces,
(b) in the naval, army or air forces of Canada other than the forces if during such period the pensioner receives the pay of his rank as though he were in the forces, and
(c) in the public service in respect of which he is not entitled to an annuity.

(2) A pensioner who after being appointed to or enlisted in one of the naval, army or air forces of Canada is seconded pursuant to service regulations or orders shall be deemed to be performing augmenting service if during that secondment he performs continuous full-time service or employment and receives emoluments by way of pay and allowances, salary or otherwise for that service or employment.
(3) Where during a period of service described in subsection (2), a pensioner does not receive pay and allowances according to the appropriate regulations in effect from time to time for his service, the rate of pay and allowances he shall be deemed to receive shall be as determined by Treasury Board.
(4) Where a pensioner described in subsection (3) is required to repay any monies received by him or any deductions are required by reason of any of the provisions of sections 25 to 32 in respect of augmenting service described in subsection (2), such repayment or deductions shall be made in the manner provided in subsections (2) and (3) of section 21.

26 (1) A pensioner serving on a full-time paid basis in the forces or in the naval, army or air forces of Canada other than the forces if receiving the pay of his rank as though he were in the forces, may elect within one year of the commencement of that full-time paid service or within six months of the coming into force of these regulations, whichever is the later,

(a) to count for the purpose of computing his pension the whole augmenting service performed subsequent to the commencement and during that service and upon the making of that election

(i) entitlement to the whole or that part of the pension to which he is otherwise entitled during that service, or the gratuity to which he would otherwise become entitled in respect of that service, shall terminate, and
(ii) he shall repay the whole or that part of the pension he may have received during that service, in the manner hereinafter provided; and

(b) to count for the purpose of computing his pension the whole or any part not less than twelve continuous months of any period of augmenting service he may have performed subsequent to the grant of his pension but prior to the commencement of his current full-time paid service provided he

(i) makes an election pursuant to paragraph (a), and
(ii) repays the whole or that part of the pension he may have received during that augmenting service or the gratuity he may have received in respect of that augmenting service in the manner hereinafter provided.

(2) Every election made by a pensioner under this section shall be evidenced in writing, in the form prescribed by the Minister, and witnessed, and the original thereof shall be forwarded to a person designated by the Minister for the purpose, by registered mail or in such other manner as the Minister directs, within one month of making the election.

27 (1) A pensioner who has elected to count augmenting service pursuant to paragraph (a) of subsection (1) of section 26 and receives pension payments during that augmenting service, shall repay the payments in one sum or by reservation from pay and allowances or otherwise, without interest, in equal instalments over a period similar to that during which the said payments were made to him, such instalments to commence on the expiration of the month next following the date of his election, except that no repayment is required for a period when the pensioner’s pay and allowances are reduced by the amount of the gross pension paid, pursuant to relevant pay regulations.
(2) A pensioner, electing to count the whole of his augmenting service pursuant to paragraph (b) of subsection (1) of section 26 and in respect of which he has been paid a gratuity, or during that service has received pension payments, shall repay an amount equal to the gratuity or pension payments received by him during that service, together with simple interest at the rate of four per centum per annum from the date of payment of that gratuity or pension payments to the date of his election under that section, and where the pensioner has elected part of his augmenting service the repayment required in respect of that part shall be the proportion of the said amount that the part is of the whole of his augmenting service, except that no repayment is required for a period when the pensioner’s pay and allowances are reduced by the amount of the gross pension paid, pursuant to relevant pay regulations.
(3) The repayment required by subsection (2) may be made in one sum or in instalments equivalent in value to the total amount of the arrears payable by reservation from pay and allowances or otherwise, for life, or for a period of years or for life whichever is the shorter, to commence on the expiration of the month next following the date of the election, the said instalments to be computed as to mortality and interest on the basis of the Canadian Life Tables No. 2 (1941), Males or Females, as the case may be, with interest at the rate of four per centum per annum.
(4) Where a periodic scheme of payment is in effect under this section, the pensioner may at any time elect to settle any amount outstanding by one sum or to arrange to pay that amount by instalments over a shorter period.

28 (1) The whole of the elected augmenting service of a pensioner shall be subject to deductions in the following manner:

(a) in respect of that part of the augmenting service which the pensioner performs subsequent to making the election required by section 26, reservations shall be made from his pay and allowances as provided in section 47 of the Act,

(b) in respect of that part of elected augmenting service which the pensioner performed prior to the making of the election required by section 26, the whole of that augmenting service shall be subject to deductions,

(i) where it is non-contributory augmenting service, to the same extent and in the manner as if that augmenting service were prior non-contributory service under Part V and the election made to count that augmenting service were made under subsection (1) of section 48 of the Act and regulations relating thereto, and

(ii) where it is contributory service and deductions have been made under the Act, the Public Service Superannuation Act, or the Civil Service Superannuation Act, or deferred pay deductions have been made from his pay and allowances, pursuant to pay regulations applicable to his service, and,

(A) those deductions have not previously been paid to him by way of gratuity or otherwise, such deductions shall be deemed to be the deductions required by this section in respect of the period of service for which the deductions were made, or
(B) those deductions have previously been paid to him by way of gratuity or otherwise, to the same extent and in the manner as if that augmenting service could be counted as service under subsection (3) or (4) of section 56 of the Act and regulations relating thereto.

(2) The sums required by this section when deducted shall be paid into, or where applicable transferred to the Permanent Services Pension Account.

29 Where a pensioner, contributing for elected augmenting services by way of repayment by instalments any amount required by section 27 or by way of making the deductions required by section 28, ceases to serve on augmenting service before payment of those instalments or deductions have been made in full, he shall be deemed to have contributed in respect of the augmenting service he elected and the remaining instalments or deductions shall be reserved out of his pension.

30 (1) Subject to subsection (5), a pensioner who ceases to serve on augmenting service described in paragraph (a) of subsection (1) of section 26, shall be entitled to have his pension computed on the term of service upon which his pension was originally based, together with the augmenting service elected pursuant to that section (the whole period hereinafter in this section being called the “pensionable term”),

(a) if he was granted his original pension as a man pursuant to section 49 of the Act for any reason other than inefficiency or misconduct and ceases to serve on augmenting service at his own request, or upon the expiration of the period of augmenting service, or for any of the reasons contained in paragraph (b) or (c) of that section after performing at least twenty-five years service in the forces during the pensionable term;
(b) if he was granted his original pension as a man pursuant to section 49 of the Act for any reason other than inefficiency or misconduct and ceases to serve on augmenting service at his own request, after performing at least twenty years but less than twenty-five years of service in the forces during the pensionable term, or if his original pension was granted pursuant to paragraph (e) of that section and ceases to serve by reason of the expiration of the augmenting service, but his pension computed on the pensionable term shall be subject to the reduction provided in paragraph (e) of that section;
(c) if he is not entitled to have his pension computed under paragraph (a) and was granted his original pension pursuant to paragraph (b), (c) or (d) of section 49 or section 54 of the Act and ceases to serve on the augmenting service for any of the reasons contained in paragraph (b) or (c) of section 49 of the Act or by reason of the expiration of the period of his augmenting service;
(d) if he is not entitled to have his pension computed under paragraph (a) and was granted his original pension pursuant to paragraph (e) of section 49 of the Act and serves in the forces on the augmenting service and ceases to serve therein for any of the reasons contained in paragraph (b) of that section;
(e) if he was granted his original pension pursuant to paragraph (e), (f) or (g) of section 49 of the Act and serves in the forces on the augmenting service and ceases to serve therein for the reason contained in paragraph (c) of that section;
(f) if he is not entitled to have his pension computed under paragraph (a), was granted his original pension pursuant to paragraph (f) or (g) of section 49 of the Act, serves in the forces on the augmenting service and ceases to serve in the forces by reason of the expiration of the augmenting service or for any of the reasons contained in paragraph (b) of section 49 of the Act, but if he has less than twenty years in the forces during the pensionable term, the pension computed on the pensionable term shall be subject to the reduction applicable to a grant of a pension under the circumstances contained in paragraph (f) or (g) of section 49 of the Act, as applicable;
(g) if he is not entitled to have his pension computed under paragraph (a) and was granted his original pension pursuant to paragraph (e), (f) or (g) of section 49 of the Act and serves on the augmenting service in the naval, army or air forces of Canada other than the forces and ceases to serve therein by reason of the expiration of the augmenting service or for any of the reasons contained in paragraph (b) or (c) of that section, but the pension computed on the pensionable term shall be subject to the reduction applicable to a grant of a pension under the Act contained in paragraph (e), (f) or (g) of that section as applicable; or
(h) if he was granted his original pension pursuant to paragraph (h) or (i) of section 49 of the Act and ceases to serve on the augmenting service by reason of the expiration of the augmenting service, or for any of the reasons contained in paragraph (b) or (c) of that section, or at his own request if his original pension was granted as a man and has served at least twenty years in the forces during the pensionable term, but the pension computed upon the pensionable term shall be subject to the reduction applicable to the grant of a pension under the Act contained in paragraph (h) or (i) of that section as applicable.

(2) The pension computed on the pensionable term as provided in subsection (1) shall be one-fiftieth of the average annual amount of the pay and allowances received by the pensioner during the last six years of the pensionable term for each year of the pensionable term but no pension shall be computed on a number of years in excess of thirty-five.
(3) Where a pensioner dies while performing elected augmenting service or dies while in receipt of a pension computed on a pensionable term, his widow and children will be entitled to an annual pension computed on the pensionable term to the same extent and subject to the same conditions as are applicable to the widow and children of a deceased or former contributor.
(4) A period of absence from duty shall not break the continuity of augmenting service elected pursuant to subsection (1) of section 26, but such period may only be included as augmenting service to the same extent and subject to the same conditions as is applicable to the service of a contributor under sections 21 and 22, except that a continuous period of absence on leave without pay and allowances in excess of sixty days shall not be included as augmenting service.
(5) Subject to subsection (2), where the amount of a pension computed in accordance with subsections (1) and (2) is less than the total amount of the original pension increased by one-fiftieth of the average annual pay and allowances received during the augmenting service for each year of the augmenting service, then in lieu of entitlement to a pension computed pursuant to subsections (1) and (2) a pensioner shall be entitled to an annual pension equal to the latter amount.

SOR/59-381, s. 1.

31 A requisition for payment of a pension computed in accordance with the provisions of sections 26 to 30 inclusive shall be supported by the certificates required by section 58 of the Act.

32 (1) Notwithstanding any of the provisions contained in sections 25 to 31 a pensioner shall be deemed not to have elected to count augmenting service where

(a) he ceases to serve on a full-time paid basis in the forces or in the naval, army or air forces of Canada other than the forces prior to completion of a period of augmenting service as described in paragraph (a) of subsection (1) of section 26; or
(b) he is not entitled to have his pension computed upon the pensionable term pursuant to subsection (1) of section 30.

(2) Where the provisions of subsection (1) are applicable, all sums deducted from the pay and allowances of a pensioner or paid by him by reason of the provisions of sections 25 to 31 inclusive shall be refunded to him without interest or shall be applied, where applicable, towards the abatement of any deductions owed by the pensioner, where by reason of the provisions of subsection (1) he becomes subject to deductions pursuant to Deferred Pay Regulations or Part V and regulations relating thereto other than sections 25 to 31 inclusive and his entitlement to pension payments shall be restored retroactively to the date of election as if he had never elected.

Succession Duties

33 (1) In this section, pension means an annual pension payable under the Act to a widow or child and includes a compassionate allowance payable to a child.
(2) For the purposes of this section, where, under the Act, a pension is payable to a child, the widow of the person in respect of whom that pension is payable to that child is presumed, prima facie, to be the guardian of that child.

(3) Where, upon the death of any person in respect of whom any pension becomes payable under Part V of the Act to a successor, application in writing may be made, by or on behalf of the successor, to the Minister for payment out of the Permanent Services Pension Account in the Consolidated Revenue Fund of the whole or any part of the portion of the succession duties payable by that successor which is attributable to that pension, and where the Minister directs, in accordance with the application, that the whole or any part of the portion of the succession duties so payable shall be paid out of the Permanent Services Pension Account in the Consolidated Revenue Fund, the maximum portion of the succession duties that may be so paid is the proportion which
(a) the value of the pension payable to the successor
is of
(b) the value of the whole estate,
calculated for the purposes of determining the succession duties payable in respect thereof.

(4) Where the Minister makes a direction in accordance with subsection (3), the pension shall be reduced either for a term, requested by the successor in the application made under subsection (3), or during the entire period for which the pension is payable, if the successor fails to make a request in the application under subsection (3) that the pension be reduced for a term, by one-twelfth of an amount determined by dividing the amount of the succession duties to be paid out of the Permanent Services Pension Account in the Consolidated Revenue Fund, by the value of an annuity of one dollar per annum, payable monthly to a person of the age of the successor at the date of payment of the succession duties out of the Permanent Services Pension Account in the Consolidated Revenue Fund, calculated,

(a) in the case of a pension payable to the widow of the person in respect of whose death the pension is payable, in accordance with a(f) Ultimate Table with interest at the rate of four per centum per annum, and
(b) in the case of a pension payable to a child of the person in respect of whose death the pension is payable, at an interest rate of four per centum per annum and mortality shall not be taken into account.

(5) Where the pension of a successor is to be or is being reduced under this section for a term and the successor, being the widow of a former contributor, remarries before the end of the term and the pension is suspended, if at any time the pension is resumed it shall be reduced for a term equal to the term or the balance of the term, as the case may be, during which the pension would have been reduced had it not been suspended and such reduction shall be made to the same extent and in the same manner as the pension was reduced immediately prior to the suspension.

Reinstatement of Widow’s Pension

34 (1) Where by reason of the remarriage of a widow the payment of her pension under Part V has been discontinued and she again becomes a widow, application in writing may be made by her or on her behalf to the Minister for resumption of that pension.
(2) Subject to subsection (4), upon receipt of the application referred to in subsection (1), the Minister may direct that payment of the pension to the widow discontinued by reason of her remarriage shall, to the extent that she is otherwise entitled under Part V to receive the same, be resumed.
(3) Where a direction is made pursuant to subsection (2), payment of the pension to the widow shall resume with effect from the first day of the month following the month in which the application for resumption of the pension is received by the Minister or from such earlier date as the Minister may direct, provided that she is otherwise entitled to receive the pension from that date.

(4) Where a pension or annual allowance (referred to herein as “the allowance” becomes payable to a widow under the Act, the Public Service Superannuation Act, or the Royal Canadian Mounted Police Act (except Part IV), and a direction is made by the Minister pursuant to subsection (2) in respect of such widow, that part only of the discontinued pension shall be resumed which is the greater of

(a) an amount which, when added to the annual amount of the allowance equals the annual amount of the discontinued pension, or

(b) an amount determined by a fraction of the annual amount of the discontinued pension

(i) the numerator of which is that number of years of service upon which the discontinued pension is based which, when added to number of years of service or pensionable services upon which the allowance is based, does not exceed in the aggregate thirty-five years, and
(ii) the denominator of which is the number of years of service upon which the discontinued pension is based.

Administration

Payment of Pensions and Gratuities

35 The Chairman of the Service Pension Board and the Judge Advocate General may issue such instructions and prescribe such forms as they may consider necessary to give effect to section 58 of the Act.

36 For the purposes of computing pensions or gratuities total combined service shall be reckoned as follows:

(a) each complete calendar month shall count as one month; and
(b) days served during broken periods of calendar months shall be totalled and each thirty days thereof shall be counted as one month, any remaining days amounting to fifteen days or more shall be counted as one additional month, but a period of less than fifteen days shall not be counted.

37 A pension to the widow or child of a contributor shall be payable from the day following the death of the contributor.

38 A pension or gratuity to the children of a contributor shall be paid, for the exclusive benefit of the children, to the widow of the contributor or to the legal guardian if one has been appointed, or to such other person as may be legally entitled to receive monies in trust for the exclusive benefit of the children.

39 If a contributor marries after the coming into force of Part V and if his age exceeds the age of his wife by twenty years or upwards, the pension to such wife under Part V shall be reduced in the proportion that the value of a life annuity as at an age twenty years less than the age of the contributor at the time of his death is of the value of an equal life annuity as at the then actual age of the wife; for the purposes of this section the values of life annuities shall be computed on the basis of the Canadian Life Table No. 2 (1941), Females, and interest at the rate of four per centum per annum.

40 (1) A pension shall be payable in full for the month in which the death of the pensioner occurs.
(2) Payment of a pension to a widow who remarries shall cease as of the day of such remarriage.
(3) Payment of a pension to a child shall cease as of the date on which the child attains the age of eighteen years.

Debit Balance

41 For the purposes of section 68 of the Act, a debit balance in the pay account of a former member of the forces shall be recovered from

(a) a gratuity, or return of contributions, in one lump sum, or
(b) a pension, by monthly instalments in any amount equal to ten per centum of the net pension but in any such case the pensioner may make payments which will liquidate the debit at a date earlier than that which would have occurred had the recovery been made at the rate of ten per centum per month.

Permanent Services Pension Account

42 (1) There shall be credited to the Permanent Services Pension Account

(a) all contributions made by the contributor under Part V;
(b) interest on the last day of each quarter in every fiscal year, namely, on the 30th day of June, on the 30th day of September, on the 31st day of December and on the 31st day of March, respectively, calculated at the rate of one per centum of the balance to the credit of the account on the last day of the preceding quarter;
(c) the contribution made by the Government; and
(d) all amounts transferred thereto under sections 9 and 12 hereof.

(2) There shall be charged to the Permanent Services Pension Account

(a) all payments of benefits under Part V,
(b) all amounts of contributions refunded pursuant to section 5, and
(c) amounts of succession duties paid pursuant to section 33.

Payment of Arrears of Contributions during Pension Suspension

43 (1) Where by reason or appointment to a position in the public service of Canada, the pension of a pensioner is totally suspended and there are arrears of contributions outstanding with respect to such pension, the pensioner may inform the Chief Treasury Officer in writing and elect to pay such arrears, under the same conditions as if his pension were in payment to him, during that period of appointment.
(2) The manner and time of making the instalments in payment of the arrears provided for in subsection (1) shall be at the discretion of the Chief Treasury Officer, and the payment of any such instalments shall be credited by the Chief Treasury Officer towards the abatement of arrears outstanding upon the pension but shall be deemed to be payments on account only and shall not necessarily be in full satisfaction of any particular instalment of arrears for any particular period owing upon the pension.
(3) The election made by the pensioner as provided for in subsection (1) shall be revocable at the discretion of the pensioner upon thirty days’ notice in writing to the Chief Treasury Officer to that effect, and the Chief Treasury Officer shall have the right to refuse to accept any instalment for any reason which to him shall seem to be good and sufficient, and upon the revocation of an election or the refusal to accept any instalment, payment of arrears shall cease until such time as the pensioner again elects, the Chief Treasury Officer accepts an application from the pensioner for reinstatement of his payments or the pension becomes payable in whole or in part to the pensioner.

Payments Otherwise than by Monthly Instalments

44 Where a pensioner or a recipient of a pension requests that a pension be paid otherwise than in equal monthly instalments, or where the Minister is of opinion that the payment of a pension in equal monthly instalments is not practical, he may direct, if such direction does not result in the payment of an aggregate amount greater than the aggregate amount of equal monthly instalments otherwise payable in accordance with section 57 of the Act, that the pension shall be paid in arrears

(a) in equal instalments quarterly or semi-annually; or
(b) annually.