Your Pension Plan

Part II - Contributions and Service

A. Contributions for Current Service

PSSA Contribution Rates

What is the rate of contribution for current service?

Because of integration of the public service pension plan with CPP and QPP, employees in effect contribute to the public service pension plan at two rates:

• 4 per cent on salary up to the maximum covered by CPP/QPP
• 7.5 per cent on salary above the maximum covered by CPP/QPP

Basically, CPP/QPP covers average annual salary, which for the year 2000 is $37,600. In 2000, therefore, you contribute to the public service pension plan at rates of 4 per cent of your salary below, and 7.5 per cent of your salary above, $37,600. Your public service contribution rate covers both basic pension and pension indexing.

Sometimes public service employees receive other payments, such as allowances, in addition to their basic salary. Some of these payments constitute salary for pension purposes and some do not. Your compensation office can tell you whether you must contribute on any such allowance.

Payments under the PSSA for current service and, in some cases, for prior elective service are deductible for income tax purposes. To determine the extent of deductibility, consult your Canada Customs and Revenue Agency office.

How have the latest PSSA amendments affected contribution rates?

The 1999 amendments to the PSSA have affected contribution rates as follows:

• Employee contributions to the public service pension plan will be frozen at the above-noted 1999 rates for at least four years, from 2000 through 2003.
• In 2004, the Treasury Board will review PSSA contribution rates and adjust them as necessary.
• If increases to PSSA employee contribution rates are deemed necessary after 2003, no increase will exceed 0.4 per cent (i.e., four tenths of one per cent) of salary in any single year.
• In any event, employee contribution rates will not increase past the point where employees are paying 40 per cent of current service costs for the public service pension plan. (A 40 per-cent share of costs is the historical average for plan members.)
• From 2000 on, contribution rates for the CPP/QPP will be set independently from the employee contribution rates for the public service pension plan. This change in effect removes the former cap of 7.5 per cent on your total pension contributions. In future, the further scheduled increases in CPP/QPP contribution rates will affect you and other public service pension plan members in the same way as they affect all other Canadians. CPP/QPP contribution rates are expected to stabilize after 2003.

For a comparative view of your pension contribution rates from 2000 through 2003, see Table III below.

Table III - Contribution Rates for PSSA and CPP/QPP, 2000-2003

Notes: 1. In 2000, the maximum salary covered by CPP/QPP is $37,600. The maximum may vary from year to year.

2. In 2003, as a result of CPP/QPP rate increases, a public service employee earning $30,000 a year will be paying about $265 a year more than his or her total pension contributions in 1999. For an employee earning about $40,000 or more, the increase in total contributions will amount to about $425 a year in 2003.

Is there a maximum period of contribution?

Yes, the maximum period for which you may contribute at the full rate is 35 years, including any elective service you may have to your credit. In addition, if you are entitled to, or have been granted, a benefit under certain other federal government plans, such as the Canadian Forces pension plan or the Royal Canadian Mounted Police pension plan, you will stop contributing at the normal (integrated) rate under the public service pension plan when your combined periods of service total 35 years. However, even after you have completed 35 years, you will continue to contribute one per cent of your salary for indexing benefits as long as you are employed.

You must also stop contributing to the plan on January 1 following the year that you reach age 69. Salary and service occurring after you stop contributing will not be included in your pension benefit.

Contributions on Leave Without Pay

Do I contribute for periods of leave without pay?

Ordinarily, contributions for periods of leave without pay are deducted from your salary, in equal instalments, over a period equal to twice the period of your absence, when you return to work.

You may also choose to pay the whole amount in a lump sum within 30 days of the date of your return to work.

However, if you are on extended leave to serve on loan with a public service union, the government of another country, or an international organization, you must pay your contributions in advance - either annually, semi-annually or quarterly - to the Superannuation Directorate (see address in Annex A) . If your leave without pay falls into any of these categories, consult your compensation office about the amounts required and the method of payment.

What do I contribute for periods of leave without pay?

If you go on authorized leave of absence without pay for less than three months, you will still contribute at the single rate (the employee contribution only) and the service will be credited to you. For periods of more than three months, you will contribute at the single rate for the first three months of the leave period and at either the single rate or the double rate (both the employee and employer-matching contributions) for the balance of the leave, depending on the type of leave. For these longer periods, you may choose not to contribute after the first three months, in which case the service will not be credited to you. An election not to contribute for leave without pay can only be made during the period beginning three months after the leave commenced and ending three months following return to duty. If you elect not to count leave without pay, you may still choose to count it later on in your employment by electing to do so, but the costs will differ. See your compensation office for more information.

Are there limits on how much leave without pay
may be counted for pension purposes?

Yes. Effective January 1, 1996, as a result of Income Tax Act requirements for registered pension plans, the PSSA restricts the amount of pensionable leave without pay, other than sick leave without pay, to a career maximum of five years. The government will track any leave without pay that you take on or after January 1, 1996, to ensure that you don't exceed the five- year maximum.

An exception to the five- year rule relates to periods of leave without pay for parenting reasons. In addition to the maximum of five years of unpaid leave of absence countable for pension purposes, plan members may also be credited under the plan with up to three more years of leave without pay for parenting purposes. Only parenting leave without pay that falls in the year following the birth or adoption of a child may be included for purposes of computing the additional three- year limit.

Another exception to the five- year rule is that of "on-loan" situations, where the services of a public service employee are loaned out to another employer by formal agreement between the two employers. For example, the restriction on the amount of pensionable leave without pay does not apply in cases where an employee is on loan serving with an international organization or as a full-time paid official of a bargaining agent representing public service employees. When considering serving with another employer, you should consult your compensation officer to determine the period of leave without pay you are allowed under certain circumstances.

B. Elective Service

Current vs. Elective Service

You acquire pensionable service on a current or an elective basis.

Current service is service for which you contribute to the superannuation plan each day during your employment.

Elective service is any period of employment, either in the Public Service or with some other employer that occurred before you became a contributor to the superannuation plan.

It also includes active war service and certain types of civilian war service. As the term implies, you must make a special election in order to count elective service towards your pension.

When do I start to build up current service?

If you are employed in the Public Service and work an average of at least 12 hours a week, you may start to build up pension credits as soon as you are appointed. In some instances, you must be employed continuously for up to six months before you may start to contribute. All of the service for which you contribute will be included in your pensionable service credits at retirement.

The term "Public Service" covers employees of all federal government departments. It also includes employees working for the following organizations:

• the Senate, the House of Commons or the Library of Parliament;
• certain agencies and corporations that have been designated as part of the Public Service for pension purposes; and
• certain agencies participating in the public service pension plan under the PSSA by virtue of their own statutes.

The following groups do not contribute to the Public Service Pension Fund:

• part-time employees working an average of less than 12 hours a week;
• part-time employees who have been employed in the Public Service since July 3, 1994, and who have not chosen to contribute within the prescribed period;
• employees locally engaged outside Canada;
• employees covered by another Canadian government pension plan (notably, the pension plans under the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act);
• employees working on an "as-required" basis; and
• seasonal employees and employees appointed for a term of six months or less, until they have completed six months of substantially continuous service.

Some employees, such as sessional employees and employees of certain commissions, must meet certain conditions and be specifically designated as contributors.

How can I benefit the most from my pension plan?

All pension benefits payable under the plan relate directly to service and salaries. As the number of years of pensionable service to your credit increases and you reach higher levels of salary, the benefits that you and your family can expect to receive increase accordingly. This is so even when you cease contributing at the full rate after 35 years of pensionable service. Although your contributions drop to one per cent, the salary you earn after that time will be used to calculate the average annual salary for pension purposes, if this is to your advantage.

It is important that you know how to increase your pensionable service credits and how much it would cost you to do so.

Each continuing year of employment in the Public Service for which you make ordinary contributions is a year of pensionable service. In addition, if you had one or more periods of employment, either in the Public Service or with another employer, before becoming a contributor under the Act, you may be able to obtain credit for that service on an elective basis.

Such periods of prior service, if they can be counted under the Act, are known as elective service. As the term implies, they are periods of service for which you may make a special election to count them as periods of pensionable service. You may make an election at any time while you are employed in the Public Service and contributing to the Public Service Pension Fund. Costs and other requirements may vary, depending on when you make the election.

Advantages of electing for prior service include:

• increased service, which increases your pension;
• increased protection for your beneficiaries;
• the possible completion of 35 years of service at an earlier date; and
• the possibility of retiring earlier.

The main types of elective service, the method to determine the cost of each type and the conditions to be met are covered in the following sections of this booklet.

Types of Elective Service

You may make an election to obtain credit for several types of prior service, as discussed below.

Prior public service

You may elect to count virtually any prior full-time service in the Public Service, including periods of leave without pay during contributory service that you previously chose not to count.

You may also elect to count prior part-time service that occurred after December 31, 1980, as long as you were engaged to work an average of at least 12 hours a week.

Service with the Canadian Forces or the Royal Canadian Mounted Police

You may elect to count prior service under the Canadian Forces Superannuation Act and/or the Royal Canadian Mounted Police Superannuation Act, subject to the conditions described below.

Service as a member of Parliament

You may elect to count prior service during which you were subject to the Members of Parliament Retiring Allowances Act. The conditions for counting this type of service are also described below.

Pensionable employment outside the Public Service

If you previously worked for any employer with an approved pension plan, or a pension plan that can be approved for PSSA purposes, you may be eligible to count any part of that employment during which you were subject to the pension plan. However, the pension plan must also have been registered for Canadian Income Tax Act purposes when the service occurred. To be eligible, this pensionable employment must have taken place immediately before your public service employment. If the employment ended more than six months but less than two years before you entered the Public Service, special consideration is required to determine whether the service falls into this category.

Other types of elective service

You may be able to elect for a few other types of prior service, such as war service. You should consult your compensation office if you have any questions about whether a period of prior service with any employer is elective.

Calculation of Elective Service

How much will I have to pay for elective service?

The formula used to determine the cost of a period of elective service is, in principle, the same as the one applied to ordinary current service. You are considered to have received a certain salary during each year of elective service and a certain contribution rate is prescribed for each year. Your contribution rate may be single or double, depending on whether the type of service requires you to pay both employee and employer-matching contributions. The final lump-sum cost normally includes four per cent simple interest, calculated from the middle of each fiscal year of the elective service to the first day of the month in which you make the election.

In addition, the cost of any election for service occurring after April 1, 1970 includes contributions for indexing benefits at a single or double rate, depending on the type of service.

Normal elections

The following paragraphs apply if you forward your election within one year of being notified that you are a contributor. This is called a normal election.

Prior public service

• For any portion of your prior public service that occurred before January 1, 1966, the rate of contribution is 6.5 per cent for male contributors and 5 per cent for female contributors.
• For service between January 1, 1966, and March 31, 1970, the rate is 6.5 per cent for both male and female contributors, adjusted to take into account the rate of CPP/QPP contributions payable during those years.
• Service from April 1, 1970, to December 31, 1976, is costed at a rate of 7 per cent, adjusted to take account of CPP/QPP contributions that would have been payable during those years.
• For service between January 1, 1977 and December 31, 1999, the contribution rate is 7.5 per cent of salary less the CPP/QPP contributions that would have been payable.
• For service after December 31, 1999, the contribution rate is 4 per cent on salary up to the maximum covered by CPP/QPP and 7.5 per cent on salary above the maximum covered by CPP/QPP. In 2000, the maximum salary covered by CPP/QPP is $37,600.

During each year of the elective service, the salary rate on which the calculation is based is your salary rate when you last became a contributor, provided you make your election within a year of the date on which you are notified that you have become a contributor under the PSSA. Four per cent simple interest is also added, calculated from the mid-point of each fiscal year of elective service to the first of the month in which you make the election.

Pensionable service with the Canadian Forces
and the Royal Canadian Mounted Police

The cost of paying for service of this kind depends on your status under the Act to which you were previously subject - that is, the Canadian Forces Superannuation Act, the Defence Services Pension Continuation Act, the Royal Canadian Mounted Police Pension Continuation Act or the Royal Canadian Mounted Police Superannuation Act.

If you are entitled to an annuity under one of these Acts, you may surrender your pension entitlement under that Act and elect to combine your previous service with your service under the PSSA, so that all of your service is subject to the terms of the PSSA. However, you must make this election before leaving the Public Service. You must also pass a medical examination, as explained below.

You must also repay to the former plan all pensions received after your first year as a contributor under the PSSA. Furthermore, you must continue to pay any amount you may still owe under the former plan.

Note: Certain people are entitled to pensions under the above-named Acts even though they did not contribute. If you are in this category and surrender your pension, in addition to repaying any pension benefits received, you must also contribute for the service in order to count it under the PSSA. The cost is based on your salary rate when you most recently became a contributor under the PSSA; interest is added from the time the service occurred until the date you made the election under the PSSA.

The rates of contribution that apply to prior public service are used in this calculation. See page 29 of this booklet.

If you are not entitled to a pension or similar benefit under one of these Acts and wish to count the service under the PSSA, you may also do so. The cost of the service will depend on whether you received any lump-sum payment under the other Act.

If you are in any of these categories, you should seek more information from your compensation office.

Service under the Members of Parliament Retiring Allowances Act

The cost of counting prior service under this plan depends on whether you became entitled to a pension or a withdrawal allowance (lump-sum payment) on ceasing to be subject to the plan.

If you are entitled to a pension, you may elect to transfer your service to the PSSA at any time before you leave the Public Service. To do this, you must surrender the pension and repay, with interest at four per cent per annum, any pension you received after your first year as a PSSA contributor. You must also pay any contributions still owing under the Members of Parliament (MPs) plan and pass a medical examination.

If you received a lump-sum payment under the MPs plan, you will contribute under the PSSA at the single rate, based on your salary when you most recently became a PSSA contributor. In this case, you must make your election within one year of becoming a PSSA contributor, and pay interest.

Pensionable employment outside the Public Service

For any period of pensionable employment with a previous employer outside the Public Service, you are considered to have received a salary equal to your salary on most recently becoming a contributor under the PSSA, if you make the election within one year of becoming a contributor. You have to contribute at the double rate, as follows:

• 13 per cent for male contributors and 10 per cent for female contributors for any service before January 1, 1966;
• (6.5 per cent less the CPP/QPP rate) times two for both male and female contributors for any service between January 1, 1966, and March 31, 1970;
• (7 per cent less the CPP/QPP rate) times two for any service between April 1, 1970, and December 31, 1976;
• (7.5 per cent less the CPP/QPP rate) times two for any service between January 1, 1977, and December 31, 1999;
• 8 per cent on salary up to the maximum covered by CPP/QPP and 15 per cent on salary above the maximum covered by CPP/QPP for service after December 31, 1999. In 2000, the maximum salary covered by CPP/QPP is $37,600.

Sometimes contributions paid into a registered retirement savings plan or registered pension plan can be transferred directly to the Public Service Pension Fund with no deduction of income tax at source. This is a point you should look into because contributions transferred this way would be applied directly against the cost of your election.

Note: Please keep in mind that you must surrender any annuity entitlement you may have with another employer, if the other employer paid for it in whole or in part, before you can elect for the service under the PSSA. You should remember too that, if you leave the Public Service voluntarily with less than two years of continuous employment, you are entitled only to a return of contributions with interest.

Consequently, if you intend to leave within that period, you should consider whether it is in your interest to surrender the entitlement under the outside plan. This provision does not apply if your separation from the Public Service is involuntary. You should, of course, ensure that the service in question can be counted under the PSSA before you surrender the entitlement. Check this with your compensation office.

Late elections

If you do not make an election within one year of becoming a PSSA contributor, you may still be able to make a late election. The contribution rates used to determine the cost remain the same, but the salary rate used is the salary payable to you on the date of the election. In many cases, this could cost you substantially more.

The higher charge reflects the additional value of the benefits you may expect to receive because of salary increases. As discussed later in this booklet, a late election can only be accepted if you have passed a medical examination. You must forward an application for late election to the appropriate address within one month of the date you signed the election form.

Elections for periods of leave without pay

The cost of electing for periods of authorized leave without pay that you chose not to count on return to work will be based on your salary at the time of making the election. They will be at the single or double rate, depending on the type of leave. Interest will be added in the same way as it is for other elective service; that is, four per cent simple interest from the date of the service to the month of election.

Medical Examinations

With few exceptions, if you elect to purchase prior service you will have to undergo a medical examination. If you make a late election, you must pass a medical examination. If you don't pass, the election is void.

For a normal election - that is, one you make within one year of becoming a PSSA contributor - you may not need a medical examination. In other circumstances, the election can continue in force even if you fail the examination. You should discuss these exceptional circumstances with your compensation office.

If, as a former member of the Canadian Forces or the Royal Canadian Mounted Police, or as a former member of Parliament, you elect to surrender an annuity entitlement under the Canadian Forces Superannuation Act, the Royal Canadian Mounted Police Superannuation Act or the Members of Parliament Retiring Allowances Act in order to count the service under the PSSA, you must pass a medical examination when you make that election.

You must undergo the examination not more than 90 days before or six months after the date of the election.

Cost Estimates

Before electing, you should obtain an estimate of what your prior service will cost. Contact your compensation office shortly after you become a contributor.

The office will give you whatever information you need and an estimate of the cost well before the expiry date. However, if your expiry date is approaching and your estimate has been delayed for some reason, you will have to consider electing without an estimate. The PSSA doesn't require an estimate, so failure to receive one won't affect your expiry date for making a normal election.

How to Make an Election

If you are making a normal election, you must complete a special election form and send it to the address shown on the election form before the normal election period expires. Action will be taken to start deductions, where necessary, and then the election will be forwarded to the Superannuation Directorate, Public Works and Government Services Canada, for verification.

If you are making a late election, you must complete the election form and forward it within one month of the date on which you signed it.

For either a normal or a late election, you must complete the election form while still employed as a PSSA contributor. Any election not forwarded within the prescribed time will be invalid.

How to Pay for an Election

You may pay for prior service in a lump sum or by instalments. As the instalment method is more costly than a lump-sum payment, you should compare the two totals before deciding. The instalment method costs more because the monthly instalment includes a mortality charge to cover the cost of insurance and interest on the unpaid balance. In the event of your death, neither your estate nor your survivor have to make any more payments as the cost of this service is considered to be paid in full.

Special circumstances and elective service payments

As a general rule, additional interest is charged on any overdue instalments. Accordingly, if you are not paying through salary deductions, you should send in the instalments on time. If you change departments, check to make sure the instalments continue to be deducted from your salary. If you retire on pension before paying all your instalments for prior service, your pension will be calculated to include all your elective service, but the unpaid instalments will be deducted monthly from your pension benefit. If, on leaving the Public Service, you choose to receive a deferred annuity at age 60, you must remit your instalments regularly between the time you leave and the time your pension starts.

If you intend to opt for a transfer value, you must pay the remaining cost of any elective service you wish to have included in the benefit before you opt.

Can I revoke an election?

You may revoke an election only in certain unusual situations, so you should consider any election carefully. Even if a revocation is approved, you may be charged a subsistence fee for the insurance that resulted from the election while the election was in force. Normally, if a person revokes an election and later wishes to count either part or all of the service that the revoked election covered, the second election is treated as a late election.

Some General Points About Elections

An election may be for all or part of a period of prior service. If it is for only a part, it usually must be for the part that occurred most recently. Your compensation office can provide you with information about exceptions to this requirement. You may extend your election to cover additional periods without penalty by completing another election within the normal one- year time limit.

You may not elect for service that is based in whole or in part on employer contributions and is counted for pension purposes under another employer's pension plan, unless you lose or surrender the pension or benefit entitlement under the other plan.

Under Income Tax Act rules for registered pension plans, a plan may not recognize past periods of elective service that occurred after December 31, 1989 for pension purposes unless income tax officials certify a past service pension adjustment (PSPA) for that service.

If you do not have enough room in your registered retirement savings plan (RRSP) to permit the certification of a PSPA, your election will be declared void and any elective service payments you may have made will be refunded to you. As there may be other tax implications to making an election, you may wish to check with your Canada Customs and Revenue Agency office. In particular, you should determine to what extent your elective contributions will be deductible for tax purposes.

Pension Transfer Agreements

The PSSA permits transfer agreements providing portability of accrued pension benefits and service between the Government of Canada and eligible employers. PSSA amendments of 1996 set new rules for pension transfer agreements.

Transfer agreements under the old rules

Existing agreements negotiated under the old rules will remain in force only until October 15, 2000. The Government of Canada has negotiated more than 300 such agreements with other levels of government, universities, health care organizations and private employers.

Employers who do not want their agreements to lapse must renegotiate them under the new rules by that date.

The older agreements, known as Reciprocal Transfer Agreements, provided for the transfer of employee and employer pension contributions along with the associated interest. Persons seeking transfers under the older agreements are subject to the following eligibility requirements, among others:

• Generally, there must be no more than a six-month break in service between employers.
• There must be no return of contributions made or other benefit received in respect of the period of pensionable service with the prior employer.
• A medical examination must be undergone and passed.
• The request for the pension transfer must be made within one year of either the person becoming a PSSA contributor or the date of the agreement, whichever is later.

Transfer agreements under the new rules

Agreements negotiated under the new rules are to be known simply as Pension Transfer Agreements (PTAs). The new PTAs provide for the transfer of the actuarial value of accrued pension benefits.

The new rules for transfer agreements also include several changes in eligibility requirements, notably the following:

• There is no longer any limitation on breaks in service between employers.
• Ordinarily, the pension plan into which the transfer is to be made must have at least 10 members.
• The medical requirement is less stringent.

More information

For further information on old or new transfer agreements and their eligibility requirements, please contact the Superannuation Sector (Please see Annex A for the address and phone number.).

Note: Please see Annex B of this booklet for the list of Pension Transfer Agreements.

Part III - Funding of the Public Service Pension Plan

Under the 1999 amendments to the PSSA, a new funding arrangement for the pension plan took effect on April 1, 2000.

Funding Before April 1, 2000

Employer and employee contributions to the public service pension plan have been held in the Superannuation Account forming part of the accounts of Canada. Since 1969, the entire balance of the Superannuation Account has been credited with interest as if it had been invested in Government of Canada long-term bonds. No amounts have ever been invested in other vehicles available in financial markets (e.g., stocks).

Contributions made before April 1, 2000, will remain in the existing Superannuation Account and will continue to be credited with interest as if invested in Government of Canada bonds. Pension benefits for plan members' service before April 1, 2000 will continue to be drawn from the existing account.

There is also a provision that allows the investment of contributions that were made in respect of service prior to April 1, 2000. This can only be done at the discretion of the Minister of Finance.

Funding After April 1, 2000

As of April 1, 2000, new contributions under the public service pension plan by employees and the employer will be deposited into a newly created Public Service Pension Fund. A new Public Sector Pension Investment Board, operating independently of the government and plan members, will invest these new contributions in the financial markets. It is expected that, over the long term, market investment of contributions will generate higher returns.

Cost-Sharing

The employer and the employees have always shared the costs of the public service pension plan. Historically, the government has assumed a larger share of costs - approximately 60 per cent on average. Since 1988, owing to integration of employee contributions with the CPP/QPP, the cost-sharing ratio between the government and the plan members has gradually widened from the historical 60/40 to more than 70/30 in 1999. In other words, the government is now paying more than 70 per cent of the current service costs of the public service pension plan.

Under the PSSA amendments of 1999, the Treasury Board has authority to set employee contribution rates as needed for the public service pension plan after the year 2003. There are two significant limitations on this authority:

• No increase in employee contribution rates may exceed 0.4 per cent (i.e., four tenths of one per cent) of a plan member's salary in any single year.
• Employee contribution rates will not increase past the point where the employees are paying more than 40 per cent of the current service costs of the public service pension plan.

From 2000 through 2003, employee contribution rates will remain frozen at 1999 levels. During that time, the government will make up the difference between the full cost of pensions being earned and employee contributions. In the year 2000, the government pays more than 70 per cent of current service costs.

Deficit and Surplus Management

As the sponsor of the PSSA, the federal government has always assumed responsibility for the cost of benefits that exceed the regular contributions made by employees and the government. Thus the government made up any deficits that occurred when actual plan experience differed from the actuarial assumptions used to determine the necessary government contributions. For instance, if the rate of interest actually earned was lower than the predicted rate, the federal government contributed additional amounts to ensure benefits were fully funded. Under the PSSA amendments of 1999, the government will continue to be sole sponsor of the public service pension plan. Accordingly, it will also continue to assume sole responsibility for any deficits that may occur in the new Pension Fund.

Surpluses may also arise when certain factors such as investment returns and inflation produce more favourable results than anticipated by the plan's actuaries. Mechanisms for managing surpluses were introduced as part of the 1999 amendments to the PSSA. When surpluses arise in the future, the amended legislation will allow contribution holidays for the employer, or for both the employer and the employees, as well as withdrawals from the new Public Service Pension Fund. These mechanisms are the same as those used by other pension plans, both in the public and private sector. If a surplus arises in the future, the Treasury Board ministers will decide on the most appropriate mechanisms to be used, depending on the circumstances prevailing at the time. The legislation also provides mechanisms for managing the surplus in the existing Superannuation Account by allowing the withdrawal of amounts from this account over periods of up to 15 years.

Because surpluses are determined after taking into account prudent actuarial estimates of future liabilities relative to the main factors affecting those liabilities, the application of mechanisms to manage occasional surpluses does not jeopardize the future benefits of contributors.

Annex A - List of Important Addresses and Phone Number

Annex B - Pension Transfer Agreements

List of employers and effective dates