Vol. 136, No. 21 — October 9, 2002

Registration
SOR/2002-365 25 September, 2002

PUBLIC SERVICE SUPERRANUATION ACT FINANCIAL ADMINISTRATION ACT

Regulations Amending the Public Service Superannuation Regulations

T.B. 829845 24 September, 2002

The Treasury Board, on the recommendation of the President of the Treasury Board, pursuant to subsection 42(1) (see footnote a)  and section 71 (see footnote b)  of the Public Service Superannuation Act and paragraph 7(2)(a) of the Financial Administration Act, hereby makes the annexed Regulations Amending the Public Service Superannuation Regulations.

REGULATIONS AMENDING THE PUBLIC SERVICE SUPERANNUATION REGULATIONS

AMENDMENT

1. The definition "Act" in section 2 of the Public Service Superannuation Regulations (see footnote 1)  is replaced by the following:

"Act" means the Public Service Superannuation Act. (Loi)

2. Section 12.1 of the Regulations is replaced by the following:

12.1 (1) Notwithstanding section 5 of the Act, a person who attained 71 years of age on or before December 31, 2002 is not required to contribute to the Superannuation Account or the Public Service Pension Fund under that provision in respect of any employment in the Public Service after December 31 of the year in which he or she attained that age or, in the case of a person who attained 71 years of age on or before December 31, 1995, after March 31, 1996.

(2) Notwithstanding section 5 of the Act, a person who attains 69 years of age on or after January 1, 2003 is not required to contribute to the Superannuation Account or the Public Service Pension Fund under that provision in respect of any employment in the Public Service after December 31 of the year in which he or she attains that age.

(3) Notwithstanding section 5 of the Act, a person who attains 70 or 71 years of age during the year 2003 is not required to contribute to the Superannuation Account or the Public Service Pension Fund under that provision in respect of any employment in the Public Service after December 31, 2003.

(4) A person who would be required to contribute to the Superannuation Account or the Public Service Pension Fund but for the application of subsection (1), (2) or (3) is

(a) a contributor for the purposes of paragraph 29(a) of the Act; and

(b) a participant within the meaning of subsection 47(1) of the Act.

(5) Notwithstanding subsection 69(3) of the Act and subject to subsection 69(6) of the Act, for the purposes of section 69 of the Act, the retirement year or retirement month of a person referred to in subsection (1), (2) or (3) to whom, in respect of whom or in respect of whose service a pension is payable is the year or month, as the case may be, in which, pursuant to subsection (1), (2) or (3), he or she ceases to be required to contribute to the Superannuation Account or the Public Service Pension Fund.

COMING INTO FORCE

3. These Regulations come into force on January 1, 2003.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

In order to receive special tax treatment, an employer-sponsored pension plan must limit benefits in accordance with the provisions of the Income Tax Act (ITA) and regulations.

The amendments to the Public Service Superannuation Regulations will limit pensionable service accruals and transfers beyond age 69 and modify the ITA limitation already in place under the Public Service Superannuation Act which prohibits pensionable service accruals beyond age 71.

Alternatives

The provisions of the pension arrangements for persons covered by the Public Service Superannuation Act have been specified in statute or regulations. Without a change in the enabling legislation, there is no alternative to the regulatory route.

Benefits and Costs

There is no cost to these amendments.

Consultation

As these amendments reflect a change to a previous requirement imposed by the Income Tax Act and regulations, publication in the Canada Gazette, Part I is the only additional consultation on these amendments.

These Regulations were pre-published in the Canada Gazette, Part I, on June 22, 2002. No comments were received.

Compliance and Enforcement

The normal legislative, regulatory and administrative compliance structures will apply, including internal audits, the usual reports to Parliament, and responses to inquiries received from Members of Parliament and affected plan members.

Contact

Joan M. Arnold
Director
Pension Legislation Development
Pensions and Benefits Division
Treasury Board Secretariat
Ottawa, Ontario
K1A 0R5
Telephone: (613) 952-3119

Footnote a 

S.C. 2001, c. 34, s. 80

Footnote b 

S.C. 1999, c. 34, s. 113

Footnote 1 

C.R.C., c. 1358, SOR/93-450

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