SOR-2016-76 Former Members of Parliament Counting of Service Regulations

A contributor may elect to count any period of service in respect of which they contributed to the Members of Parliament Retiring Allowances Account referred to in subsection 3(1) of the Members of Parliament Retiring Allowances Act as pensionable service for the purposes of Part I of the Royal Canadian Mounted Police Superannuation Act (the “Act”).

In the case of a contributor who is entitled to a retirement allowance under the Members of Parliament Retiring Allowances Act in respect of the period of service, the election is conditional on the contributor surrendering that entitlement.

The contributor who makes the election referred to in section 1 must sign and date the document evidencing that election.

The day on which the election is made is the day on which the document is signed.

The contributor must send the document to the Commissioner of the Royal Canadian Mounted Police within one month after the day on which it is signed.

The day on which the document is sent is the day on which it is delivered or, if it is sent by mail, the day on which it is mailed, with the date of the postmark being evidence of that day.

A contributor who is no longer a member of the Force, who received, from an authorized advisor who normally gives information about such matters, erroneous or misleading information in respect of an election and who failed to make the election while they were a member may make the election within one year after the date of the notice from such an advisor providing them with the corrected information.

The contributor may revoke the election if they received, from an authorized advisor who normally gives information about such matters, erroneous or misleading information in respect of the election and

A contributor who revokes the election is deemed to have made the same election on the day after the day on which they received the erroneous or misleading information.

For the purposes of this section, authorized advisor has the same meaning as in section 2 of the Royal Canadian Mounted Police Superannuation Regulations.

Paragraph 8(2)(c) of the Act does not apply to an election referred to in section 1.

A contributor who makes the election is deemed to have received, during the period of service in respect of which the election is made, the annual rate of pay that they were receiving on the day on which they most recently became a contributor, if they make the election within one year after that day, or the annual rate of pay that they are receiving on the day on which the election is made, in any other case.

For the purpose of subsection (2), if the contributor was a part-time member on the day on which they most recently became a contributor or on the day on which the election was made, the annual rate of pay is to be the annual rate of pay that would have been authorized to be paid to them if they had been a full-time member at that time or, if they had then been engaged to work concurrently in more than one position, it is to be the aggregate of the amounts calculated for each position in accordance with the formula A x B/C where A is the annual rate of pay that would have been authorized to be paid to the contributor if they had been a full-time member at that time; B is the weekly average of the hours of work for which the contributor was engaged; and C is the total of the weekly averages of the hours of work for which the contributor was engaged in all positions.

A contributor who was paid a withdrawal allowance under the Members of Parliament Retiring Allowances Act and who makes an election referred to in section 1 must pay the following amount to the Royal Canadian Mounted Police Pension Fund, calculated on the annual rate of pay that the contributor is deemed under subsection 3(2) to be receiving on the day on which the election is made, with interest:

For the purposes of subsection (1), interest means simple interest at 4% per year from the middle of the fiscal year in which the contributions made under the Act would have been made, had the contributor been required to make those contributions during the period for which the contributor elected to pay, until the time of the election.

Monthly instalments are payable on the first day of each month after the day on which the election referred to in section 1 is made until the earlier of

The instalments are payable in equal amounts that must not be less than $5.00, except the last one, and are calculated using the mortality rates used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the election is made or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report, and bear interest, compounded annually, at a rate equal to the projected rate of return of the Royal Canadian Mounted Police Pension Fund that was used in the preparation of the report.

A person may, at any time, do one or both of the following:

A person who makes a partial prepayment may request that the period of instalments remain the same or be decreased.

In all cases, the adjustment of the period of instalments and of the remaining instalments is to be made on the first day of the month after the day on which the request is made, in accordance with section 6, except that the actuarial valuation report is the one that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the request is made or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

A contributor who does not pay an instalment before or on the day on which it is due is in default of payment.

Notice must be sent to the contributor after the default.

However, if the contributor is on leave without pay or if they have ceased to be a member of the Force and are entitled to an annual allowance or a deferred annuity that has not yet become payable, the notice must be sent to them after the day on which they return to work or the payment of the allowance or annuity begins.

The contributor must, within 30 days after the date of the notice of default,

Arrears that are paid in a lump sum bear interest, compounded annually, beginning on the day of the payment default and ending on the date of the notice of default, at a rate equal to the projected rate of return of the Royal Canadian Mounted Police Pension Fund that was used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 of the Act, before the date of the notice of default or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

Arrears that are paid in monthly instalments bear interest, compounded annually, beginning on the day of the payment default and ending on the day on which the payment is received by the Commissioner of the Royal Canadian Mounted Police, at a rate equal to the projected rate of return of the Royal Canadian Mounted Police Pension Fund that was used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the contributor exercises one of the options set out in subsection (1) or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

The instalments are payable on the later of

The unpaid instalments referred to in subsection 8(6) of the Act are to be reserved

The reservations are to begin in the month in which the pension benefit begins.

A contributor who establishes that financial hardship that was unforeseen at the time the election referred to in section 1 was made will be caused if the contributor is required to continue to pay the instalments may extend the period of instalments, but the total of the period chosen under paragraph 6(1)(a) and the extension must not exceed three times the period chosen under that paragraph or 15 years, whichever is the lesser.

The remaining instalments are to be adjusted, in accordance with subsection 6(2), on the first day of the month after the day on which the request is made, except that the actuarial valuation report is the one that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the request is made or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

A contributor must undergo a medical examination within six months before or after the day on which the election is made.

If, through no fault on the part of the contributor, the contributor is unable to undergo the medical examination before the end of that period, the period is to be extended by six months.

The medical examination must be performed by any physician who is authorized to practise medicine in the jurisdiction in which the examination is performed.

The contributor passes the medical examination if the physician certifies in writing that the contributor has a life expectancy of at least five years.

If the full lump sum is received by the Commissioner of the Royal Canadian Mounted Police within the time limit set out in section 17, the period of service in respect of which the election was made is to be counted as pensionable service.

If the full lump sum is not received by the Commissioner within the time limit, the period of service in respect of which the election was made is to be counted as pensionable service, beginning with the part that is most recent in point of time, in the same proportion as the amount that is received by the Commissioner within that time limit bears to the lump sum.

A contributor who is entitled to a retirement allowance under the Members of Parliament Retiring Allowances Act and who makes an election referred to in section 1 must repay to the Royal Canadian Mounted Police Pension Fund the amount that they received in respect of that allowance beginning in the 13th month after the day on which they most recently became a contributor.

The repayment must be made in accordance with the terms set out in sections 6 to 14, except that the amount bears simple interest at 4% per year.

A contributor who made an election under section 10 of the Members of Parliament Retiring Allowances Act must pay to the Royal Canadian Mounted Police Pension Fund, in accordance with the terms that are applicable to that election, the amount that they were required to pay into the Consolidated Revenue Fund in accordance with section 11 of that Act, less any amount already paid.