94 Pension
commencement
95 Commencement of
guaranteed term of years
96 Requirement of
evidence
97 Transfer of
pensions under reciprocal agreements
98 Prohibition
against certain reciprocal transfers of service
99 Beneficiaries
100 Method of
payment of pensions
101 Idem -
conversion following death
102 Suspension of
pensions on re‑employment
Part 6
Miscellaneous
105 Interest
chargeable
106 Advance against
pension
107 Actuarial
formulas
108 Exercise of
benefit choice
109 Prohibition
against assignment, etc.
110 Overpayments
and deficiencies
111 Return of money
112 Retentions for
debt
Part 7
Transitional and Commencement Provisions
113.1 Reduction of
pension for predecessor plan benefits
114 Transitional -
prior service provisions
115 Transitional -
spousal protection
116 Transitional -
suspension of pension
117 Commencement
Schedule
Application and
Interpretation
Application
1 This Regulation constitutes the major
part of the plan rules for the Universities Academic Pension Plan (in these
plan rules referred to as “the Plan”).
Interpretation
generally
2(1) In
these plan rules,
(a) “Act”
means sections 1 to 12 of and Schedule 3 to the Public Sector Pension Plans
Act;
(b) “Act
Schedule” means the Schedule 3 referred to in clause (a);
(c) “actuarial
equivalent” means the equivalent in actuarial present value, as calculated by
the Plan’s actuary and approved in writing by the Minister;
(d) “actuarial
reserve” means the actuarial present value of benefits payable in the future in
respect of a period of service already performed, including the portion of
those benefits relating to expected future salary and cost‑of‑living
increases, as determined by the Plan’s actuary and approved by the Minister;
(e) “actuarial
valuation report” means a report prepared under section 5(1) of the Act
Schedule;
(f) “actuary”
means a Fellow of the Canadian Institute of Actuaries;
(g) “additional
contributions” means additional contributions under section 9 of the Act
Schedule;
(h) “benefit”
means a retirement benefit, a death benefit or a benefit on termination before
pension eligibility, under Part 5;
(h.1) “combined
pensionable service” means
(i) pensionable service, and
(ii) pensionable service (if any) under and within the meaning
assigned to that phrase in the related plan (and whether or not continuously
performed) provided that
(A) the person immediately became
(I) a participant of this Plan after ceasing to
be a participant (within that meaning) of the related plan, or
(II) a participant (within that meaning) of the
related plan after ceasing to be a participant of this Plan,
(B) he was employed by the same employer
immediately before and immediately after that event, and
(C) the event described in paragraph (A)
occurred after commencement,
regardless of when
that service was accumulated;
(h.2) “combined
pensionable service in the related plan” means combined pensionable service
described in clause (h.1)(ii);
(i) “commencement”,
except where it relates to a benefit, means January 1, 1994;
(j) “commuted
value” means the actuarial present value of accrued benefits, determined using
actuarial assumptions and methods recommended by the Canadian Institute of
Actuaries for the minimum transfer values of deferred pensions as at the date
provided for in this Plan, but including any such value to be determined on a
transfer under a new reciprocal agreement;
(k) “continuous
basis” means, in relation to employment, a basis where no date or event, other
than by reference to the attainment of the mandatory retirement age, if any,
fixed with reference to the employment, has been established for the
termination of the employment;
(l) “contributions”
means contributions, including additional contributions, under the Plan, and
includes any payment referred to in section 20(1)(d) and contributions under
the former Act that are of a nature corresponding to those in question;
(m) “current
service contributions” means a participant’s contributions under section 13 or
14 or both, and includes current service contributions under and within the
meaning of the former Act;
(m.1) “designated
employee” means a person who
(i) holds a senior administrative or professional position that is
not included in a bargaining unit classification under the Public Service
Employee Relations Act or a collective agreement pursuant to that Act, and
(ii) is declared by the employer to be a designated employee;
(o) “disability
plan” means a long term disability income continuance plan or program that
satisfies the criteria specified in section 5 and that is filed with the Minister,
or compensation for temporary total disability or temporary partial disability
referred to in section 51(7) of the Workers’ Compensation Act;
(o.1) “educational
leave” means a period during which a person is, with the authority of his
employer, on leave from the regular duties of his employment, carrying out a
program of research or study approved by his employer for the purposes of this
clause and is receiving remuneration that is less than his regular salary,
provided that, to the extent that the period occurs after 1991, it is an
eligible period of reduced pay or an eligible period of temporary absence
within the meanings assigned to those expressions by the tax rules;
(p) “employee”
means
(i) a person employed by an employer as an academic staff member on a
full‑time continuous basis, including the President of an employer
institution,
(ii) a person who is employed by an employer as an academic staff
member or a designated employee under a contract of service if that contract
provides for
(A) his employment on a full‑time but not
a continuous basis, or
(B) his employment other than on a full‑time
basis where his hours of work are not fewer than 1/2 of what those hours would
be if he were employed on a full‑time basis and the employment is on a
continuous basis,
and the employer,
pursuant to his established policy for pension coverage of persons or classes
of persons employed by him, applies to the Minister for the person’s
participation in the Plan,
(ii.i) a person who is employed by an employer as a designated employee
under a contract of service if that contract provides for his employment on a
full‑time continuous basis,
(iv) any person specified in section 3(1), (2) or (5) to be an
employee of an employer, or
(v) any other person who immediately before commencement was
participating in the pension plan under the former Act and has not subsequently
ceased to participate in the Plan,
but does not include a
person to whom the Teachers’ Retirement Fund Act applies;
(q) “employer”
means any board, interim governing body or governing authority of a university
under the Universities Act, The Governors of the Banff Centre for
Continuing Education or a person who employs an employee described in clause
(p)(v);
(r) “financing
rate” means, in relation to interest, the rate specified in section 105(3);
(s) “fiscal
year” means the fiscal year of the Plan provided for in section 6;
(t) “former
Act” means the Universities Academic Pension Plan Act and includes the Universities
Academic Pension Act or the corresponding provisions of it, and the
regulations under the Act in question;
(u) “full‑time
basis” means, in relation to an employment, a basis that the employer treats as
being full‑time having regard to the type of employment in question;
(u.4) “leave
with full salary” means a period during which a participant is, with the
authority of his employer, on leave from the regular duties of his employment
and is receiving full remuneration from his employer;
(v) “leave
with partial salary” means a period during which a participant is, with the
authority of his employer, on leave from all or a portion of the regular duties
of his employment and is receiving remuneration that is less than regular
salary from his employer and includes leave with partial pay under the former
Act, but does not include a period of educational leave or a period during
which he is in receipt of benefits under a disability plan or any period after
1991 that is not an eligible period of reduced pay under the tax rules;
(w) “leave
without salary” means a period during which a participant is, with the
authority of his employer, on leave from the regular duties of his employment
and is receiving no remuneration from his employer and includes leave without
pay under the former Act, but does not include a period during which he is in
receipt of benefits under a disability plan;
(w.1) “Lethbridge
Plan” means
(i) The University of Lethbridge Academic Staff Pension Plan in
effect from July 1, 1967 to July 1, 1978, respecting academic staff members of
The University of Lethbridge, and
(ii) with respect to academic staff members who transferred from the
academic staff of the Lethbridge Community College to the academic staff of The
University of Lethbridge on July 1, 1967, the pension plan in effect at the
Lethbridge Community College before July 1, 1967;
(x) “locked‑in
retirement account” means a registered retirement savings plan that meets the
conditions referred to in section 1(1)(s.1) of the Employment Pension Plans
Act;
(y) “matrimonial
property order” means a matrimonial property order within the meaning of the Matrimonial
Property Act, or a similar order enforceable in Alberta of a court outside
Alberta, that affects the payment or distribution of a person’s benefits;
(z) “new
reciprocal agreement” means a reciprocal agreement in respect of which all the
conditions specified in sections 84(2) and 97(2) had been fully met at the time
in question;
(aa) “old
reciprocal agreement” means a reciprocal agreement that is not a new reciprocal
agreement;
(bb) “participant”
means a person who is a participant of the Plan by virtue of Part 2;
(cc) “pension”
means a pension under the Plan;
(dd) “pension
commencement” means the time established by section 81 or 94 that constitutes
the effective date for the commencement of the relevant pension;
(ee) “pensionable
salary” means the salary of a participant that is compensation within the
meaning of the tax rules, subject however to such limitation as is necessary to
ensure that the benefit accrual for the calendar year, being the amount of
benefit accrued in respect of that year’s pensionable service, as computed
under the tax rules, does not exceed the defined benefit limit fixed by the tax
rules for that year;
(ff) “pensionable
service” means, subject to clause (h.1) and to section 20, service in respect
of which contributions have been made under section 13, 14, 20 or 26 or section
14 or 16 of the former Act;
(gg) “prior
service” means any service other than
(i) that for which current service contributions are or were made, or
(ii) combined pensionable service in the related plan,
and includes service that
was prior service under the former Act;
(hh) “reciprocal
agreement” means a reciprocal or any other agreement entered into under section
84 or 97, and includes an order under section 10(1) of the Regulations or an
equivalent agreement or order under the former Act;
(ii) “registered”
means registered or accepted for registration under the Income Tax Act
(Canada);
(jj) “Regulations”
means the portion of the Public Sector Pension Plans (Legislative
Provisions) Regulation preceding the Schedules and Schedule 3 to that
Regulation;
(kk) “related
plan” means the Public Service Pension Plan;
(kk.1) “Retirement
System” means the Retirement System of The University of Alberta in effect at
The University of Alberta before the adoption of the University of Alberta Plan
on August 1, 1964;
(ll) “salary”,
subject to sections 29 and 30, means
(i) subject to subclause (ii), an employee’s gross basic pay for the
performance of the regular duties of the employment, or
(ii) in the case of an employee who is receiving remuneration that is
other than full remuneration, including benefits under a disability plan, or no
remuneration, the salary he was earning immediately before he commenced to
receive that remuneration or no remuneration, adjusted in accordance with any
subsequent general adjustments in respect of the period in question that are
applicable to the class of employees that he was then in,
but does not include any
expense allowance, overtime payment, special remuneration or other similar
compensation;
(mm) “salary
period” means the length of time, related to a recurring salary payment cycle,
for which an employee normally receives a payment of salary;
(nn) “service”
means a period during which a person is or was employed by an employer, a party
to a reciprocal agreement, a public body in Canada or a body in Canada approved
by the Minister, or employed in the field of teaching or research at a college
or university in Canada or employed as a teacher in Canada, and includes
(i) a period of service in the Canadian or allied forces, or in a
merchant navy serving the Canadian or allied cause, during World War II or the
Korean Conflict,
(ii) a period of peacetime military service in the Canadian Armed
Forces,
(ii.i) combined pensionable service in the related plan that would not
be service but for this subclause, and
(iii) any period when the person is or was
(A) in receipt of benefits under a disability
plan,
(B) on leave without salary,
(C) on leave with full or partial salary, or
(F) on educational leave,
but does not include any
period specified in section 4;
(oo) “spouse”
means
(i) a person who, at the relevant time, was married to a participant
or former participant and
(A) was not judicially or otherwise separated
from him, or
(B) if so separated, was wholly or substantially
dependent on him,
(ii) if there is no person to whom subclause (i) applies, a person of
the opposite sex who
(A) lived with the participant or former
participant
(I) for the 5‑year period immediately
preceding the relevant time, or
(II) for the 2‑year period immediately
preceding the relevant time if there is a child born to that person and the
participant or former participant,
and
(B) was, during that period, held out by the
participant or former participant in the community in which they lived as his
consort,
or
(iii) if there is no person to whom subclause (i) or (ii) applies, a
person who was married to but separated from the participant or former
participant and not wholly or substantially dependent on him at the relevant
time;
(pp) “tax
rule excess” means any amount of money that, when a transfer is to be made from
the Plan to a registered retirement savings plan, exceeds that amount that
will, in the Minister’s opinion, be certain not to attract an income tax
penalty under the tax rules in respect of the transfer;
(qq) “tax rules” means those provisions of the Income Tax Act (Canada) or of the regulations under it, or of both, that
apply to pension plans registered or to be registered under that Act and
includes any approval, certification or other permission or any direction or
order from the federal Minister of National Revenue the absence of which or
failure to comply with which may make the Plan’s registration liable to
revocation under that Act;
(rr) “termination”,
used in relation to a person, means that person’s ceasing to be an employee,
under any circumstances other than
(i) death, or
(ii) where the person becomes an employee again without experiencing
any break whatsoever in his pensionable service resulting from the cessation;
(ss) “transfer”
or “transferred”, where used with reference to the transfer of money from the
Plan, means transfer or transferred (as the case may be) to another registered
pension plan, to a registered retirement savings plan, to a locked‑in
retirement account or to any other registered vehicle that is designed to
assist with retirement savings, to the extent, in the case of a transfer to a
registered retirement savings plan, that the amount transferred does not
constitute a tax rule excess and with any tax rule excess being paid to the
person entitled;
(ss.1) “University
of Alberta Plan” means the Academic Pension Plan of The University of Alberta
in effect from August 1, 1964 to July 1, 1978 respecting academic staff members
of The University of Alberta, The University of Calgary and The Banff Centre
for Continuing Education;
(tt) “year’s
maximum pensionable earnings” means the Year’s Maximum Pensionable Earnings
within the meaning of the Canada Pension Plan (Canada).
(2) References in these plan rules to a section “of
the Act”, where there is no reference to the Act Schedule, are references to a
section of the Public Sector Pension Plans Act preceding Schedule 1 to
that Act.
AR 370/93
s2;49/97;149/98
Interpretation -
employee
3(1) For
the purposes of the Plan, an employee who commences to receive benefits under a
disability plan remains, while receiving those benefits, an employee of the
employer who was employing him immediately before that time.
(2) For the purposes of the Plan, an
employee who goes on leave without or with full or partial salary or on
educational leave remains, while on that leave, an employee of the employer who
authorized that leave.
(5) A
person who has pensionable service that becomes combined pensionable service in
the related plan on joining the related plan nevertheless remains an employee
for the purposes of this Plan as well as being an employee for the purposes of
the related plan as long as he remains an employee within the meaning of the
related plan.
(6) Before
an employer makes an application under section 2(1)(p)(ii), he shall formulate
in writing a policy for determining, subject to that provision, the basis on
which persons are eligible to become employees by virtue of that provision, and
shall, on being requested to do so by the Minister, furnish the Minister
forthwith with a copy of that policy.
Interpretation -
service
4(1) Service does not include
(a) any
period before 1994 of leave without pay during which current service
contributions were not made that was in excess of 2 years,
(b) any
period after 1993 of leave without or with partial pay or salary or educational
leave where the aggregate of all the periods of leave without pay or salary,
both before and after January 1, 1994, and of all unsalaried portions of
periods of leave with partial pay (as that term is used in the tax rules)
occurring after 1993 was in excess of 5 years, or
(c) any
period in respect of which lifetime retirement benefits may not be provided to
a member of a pension plan within the meaning of and pursuant to the tax rules.
(2) In
this section, “leave without pay” and “current service contributions” have the
meanings assigned to them by the former Act.
Interpretation -
disability plan
5 The criteria for disability plans
referred to in section 2(1)(o) are as follows:
(a) all
participants employed by an employer in a group specified by the Minister in
relation to the employer, except for those ineligible for coverage by reason of
not meeting the medical requirements, must be covered by the disability plan;
(b) a
participant must not be required to apply for a pension as long as he qualifies
for benefits under the disability plan.
Part 1
Administration
Fiscal year of Plan
6 The fiscal year of the Plan is the
calendar year.
Administration of the
Plan
7(1) The
Minister is the administrator of the Plan.
(2) Notwithstanding
anything in the Plan except subsection (3), the Minister shall administer the
Plan in accordance with the tax rules.
(3) If
in any respect the Plan does not comply with the applicable tax rules, the
Minister may administer the Plan as if it were amended so to comply.
(4) In
administering the Plan, the Minister shall follow applicable general policy
guidelines set for the purposes of section 3(2)(c) of the Act Schedule.
Report to Board
8 The Minister shall provide to the Board,
at the request of the Board and at least semi‑annually, written reports
on the administration of the Plan and on the investment of the plan fund’s
assets.
Forms
9 The forms provided for by these plan
rules are those set out in Schedule 1.
Part 2
Participation
The participants
10 Subject to section 11, all employees are
to participate in the Plan.
Exceptions to
participation
11 Section 10 does not apply to an employee
(a) after
the end of the year in which the employee attains the age of 71 years,
(b) who
attained that age before commencement,
(c) who,
by reason of proximity to the end of the year of attaining the age of 71 years
and insufficiency of accrued combined pensionable service, cannot accrue 5
years’ combined pensionable service or could accrue 5 years’ combined
pensionable service only if he had prior service recognized and does not
undertake to have that prior service recognized,
(d) who
is in receipt of a pension in respect of his own pensionable service, or
(e) who
remains an employee by virtue of section 3(5).
Part 3
Funding
Disposition of
contributions
12 All contributions, with interest, if any,
shall be made and remitted to the Provincial Treasurer for deposit under
section 8(1) of the Act Schedule.
Participant’s current service contributions
13(1) Subject to this section and section 14(1), a
participant shall, at intervals coinciding with the salary periods fixed by his
employer with respect to him, make contributions for current service for which
he is receiving remuneration at the rate, based on pensionable salary or any
portion of the participant’s pensionable salary
(a) that
does not exceed the year’s maximum pensionable earnings, of 5.4%, and
(b) that
does exceed those earnings, of 7.8%,
or, if applicable, at
the rate specified in subsection (1.1).
(1.1) Notwithstanding
subsection (1), the rate of contributions payable by participants employed by
the University of Calgary, the University of Alberta and the University of
Lethbridge for current service for which participants are receiving
remuneration, based on pensionable salary or any portion of the participant’s
pensionable salary
(a) that
does not exceed the year’s maximum pensionable earnings, is 5.9%, and
(b) that
does exceed those earnings, is 8.3%.
(2) An
employer who is paying a participant’s remuneration is liable for the
remittance of the current service contributions under subsection (1), for which
purpose he may, if applicable, withhold those contributions from the
remuneration payments.
(3) Current
service contributions are not to be made
(a) after
the length of a participant’s combined pensionable service reaches 35 years, or
(b) at all, if before becoming a participant of
this Plan, the person accumulated service that constitutes at least 35 years’
combined pensionable service under these plan rules.
AR 370/93
s13;175/95;107/97;143/99
Participant’s contributions respecting leave periods
14(1) A participant who is on leave without salary,
leave with partial salary or educational leave may have that service taken into
account as pensionable service and, if he wishes to do so, may make
contributions pursuant to section 13(1) with respect to that leave.
(2) Subject
to this section, a person who
(a) was
on leave without salary, leave with partial salary or educational leave,
(b) wishes
to have any period of that leave taken into account as pensionable service, and
(c) did
not make contributions under section 13(1) in respect of that period,
must make
contributions in respect of that period in accordance with this section at the
rate referred to in section 13(1), with interest at the relevant rate.
(3) If
the required payment exceeds $500, the person may choose to make the payment by
instalments pursuant to sections 23 to 25 with interest at the financing rate,
as if it were prior service contributions, if he provides the Minister with a
completed election to do so in the form required by the Minister before May 1
of the year following the year in which the leave period terminated.
(4) If
the person does not choose to make the required payment in accordance with
subsection (3) or if the required payment does not exceed $500, he must make
the whole of the required payment, including interest, before the date referred
to in subsection (3).
(5) If
the person does not return to the employment at the end of the leave period or
returns to the employment but terminates it before the date referred to in
subsection (3), he must apply to the Minister to have the leave period taken
into account as pensionable service within 30 days of termination or before the
date referred to in subsection (3), whichever is earlier, and must pay the
whole of the required payment, with interest, within 90 days of being requested
by the Minister to make payment.
(6) Where
an employer notifies the Minister that the terms and conditions of a leave
without or with partial salary or educational leave have not been met, the
participant’s contributions shall be returned, with interest at the rate
allowed under section 79 or 92 or that person shall not be allowed to make the
contributions, as the case may be, in respect of the leave.
(7) Section
27 applies for the purposes of subsections (3), (4) and (5).
Employer
contributions for current service
15(1) Subject to subsections (3) and (6), whenever
current service contributions are made, the participant’s employer is liable to
make contributions for the current service at the rate, based on pensionable
salary or any portion of the participant’s pensionable salary
(a) that
does not exceed the year’s maximum pensionable earnings, of 6.4%, and
(b) that
does exceed those earnings, of 8.8%,
or, if applicable, at
the rate specified in subsection (1.1).
(1.1) Notwithstanding
subsection (1), the rate of contributions payable by the University of Calgary,
the University of Alberta and the University of Lethbridge for current service
for which participants are receiving remuneration, based on pensionable salary
or any portion of a participant’s pensionable salary
(a) that
does not exceed the year’s maximum pensionable earnings, is 5.9%, and
(b) that
does exceed those earnings, is 8.3%.
(3) The
contributions required by subsection (1) are to be paid by the participant,
rather than the employer, where the service in question is
(a) leave
without salary, or
(b) leave
with partial salary, but only to the extent that those contributions relate to
the unsalaried portion of the leave with partial salary (as that term is used
in the tax rules), unless the employer’s established policy on the matter makes
the employer liable for contributions on that unsalaried portion.
(4) Where
contributions are returned under section 14(6), the Minister shall also return
the corresponding contributions under this section, with interest at the rate
allowed under section 79 or 92 to the person who paid them.
(6) This section does not prevent an employer from
entering into an agreement with another person providing that all or part of
the employer contributions under subsection (1) are to be paid by that person
on the employer’s behalf.
AR 370/93 s15;175/95;295/95;107/97;143/99
Additional
contributions
16(1) Subject
to the Act, sections 13, 14 and 15, as they apply with respect to contributions
for current pensionable service, apply with respect to additional contributions
under, and at the rates of salaries set by section 9 of the Act Schedule and by
this section.
(1.1) The
aggregate amount of the annual additional contributions required from employers
and participants in the years before the next actuarial valuation after the
commencement of this subsection in order to ensure the elimination of the
unfunded liability on or before December 31, 2043, after taking into account
the annual amount of additional contributions payable by the Crown under
section 9(5)(a) of the Act Schedule, is that resulting from the charging of the
additional contribution rates set by subsection (2).
(2) The
rate of additional contributions payable both by participants and by employers
to meet their respective liability for 50% of the total required, within the
meaning of section 9(7) of the Act Schedule, from July 1, 1999 is 0.475% of
salary.
(a) repealed
AR 107/97 s4,
(b) repealed AR 131/96 s2.
AR 370/93
s16;175/95;131/96;107/97;143/99
Interest on unpaid or
unremitted contributions
17(1) Where
contributions under section 13, 14, 15 or 16 to be remitted by an employer or
the Crown are not received by the Provincial Treasurer on or before the end of
a period of 15 days following
(a) the
end of the salary period for which they are payable, or
(b) in
the case of contributions that are not regularly payable, the last date on
which they are payable,
the Provincial
Treasurer may charge the employer or the Crown, as the case may be, interest on
those overdue contributions.
(2) Interest
charged under subsection (1) is payable at a rate per year equal to the prime
interest rate, according to the Canadian Imperial Bank of Commerce, on the
first banking day of each quarter, plus 2%.
(3) Where
contributions that were liable to be remitted by an employer under section 13
but were not withheld by the employer are more than $500 in arrears, the
Minister may enter into an arrangement with a participant, former participant
or the employer pursuant to sections 23 to 25, with interest at the financing
rate, as if the contributions were prior service contributions payable by a
participant, for payment of the amount owing.
Prior service
contributions - evidence requirement
18(1) Before any contributions with respect to prior
service may be made, there must be provided to the Minister, so far as applicable,
the documents required by section 83(1) or 96 or both.
(2) Notwithstanding anything in section 14, if,
with respect to a person who was on a leave without salary, leave with partial
salary or educational leave, the time within which it is possible to have the
leave taken into account as pensionable service on a current service basis has
lapsed, the person may, subject to Part 4, have the leave treated as prior
service.
AR 370/93 s18;132/96
Transfer to combined
pensionable service plan
19 Where the circumstances prescribed in
section with reference to this section apply, the Minister shall, if the Board
so approves, transfer the amount so prescribed to the related plan representing
the cost to the related plan of applying the combined pensionable service
provisions of the plan rules of the 2 plans.
Part 4
Pensionable Service
Computation of
pensionable service
20(1) Subject
to this section and section 21(2), in computing the length of pensionable
service that a person accumulated, the following periods of service are the
periods to be taken into account:
(a) service
with an employer in respect of which current service contributions have been
made;
(b) service
covered by section 16(1)(b) or (c) of the former Act or paid for under section
26;
(c) service
described in subsection (2) in respect of which the deceased had applied under
section 16(1)(c) of the former Act;
(d) where
payment has been made for any service, whenever accumulated, described in this
clause on an actuarial reserve basis and the applicable terms and conditions
set out in sections 22 to 25 have been satisfied in relation to it,
(i) prior service with an employer,
(ii) service that is recognized by the Minister as pensionable service
and has been transferred into the Plan under a reciprocal agreement,
(iii) service that would be pensionable service but for subsection (4),
(iv) service described in subsection (2) in respect of which the
deceased had applied under this clause before dying, and
(v) any other service.
(2) Where a deceased person referred to
in section 57(1) had applied before death under subsection (1)(d) or under
section 16(1)(c) of the former Act to have service taken into account as
pensionable service and was paying for that service immediately prior to his
death, the surviving spouse, if any, entitled to select a pension in respect of
that service is entitled to pay for the remainder of that service by lump sum
payment of the amount that the deceased would have had to pay under section 24
had he terminated rather than dying, made within 90 days of being advised by
the Minister of the required amount.
(3) Service
that is recognized as pensionable under any other registered pension plan under
which a person is receiving or is or will be entitled to receive a pension may
not be taken into account as pensionable service.
(4) Service
with respect to which the contributions made have been returned or paid to a
person or contributions or pension entitlements have been transferred out of
the Plan on a person’s behalf may not be taken into account as pensionable
service.
(5) Service
that falls within section 85 or 98 of the related plan may not be transferred
into the Plan under a reciprocal agreement as pensionable service.
(6) A
person may not be credited with more than one year’s pensionable service in
respect of service performed in a calendar year, regardless of the nature and
extent of the service so performed.
(7) Contributions
referred to in subsection (1)(d) are subject to any limitations imposed under
the applicable circumstances by the tax rules.
(8) Where
service is performed on less than a full‑time basis, the length of the
service performed is to be prorated in determining the length of the
pensionable service accumulated.
Limit on pensionable
and combined pensionable service
21(1) The aggregate of the periods that are to be
taken into account in determining the length of the combined pensionable
service that a person has accumulated is not to exceed 35 years.
(2) The
aggregate of the periods that are to be taken into account in determining the
length of the pensionable service that a person has accumulated is not to
exceed 35 years less any combined pensionable service in the related plan that
has been accumulated.
Requirement to apply
and make payments in time
22(1) Service described in section 20(1)(d) may not
be taken into account as pensionable service unless the person entitled to have
it taken into account applied to the Minister in the form approved by the
Minister, while a participant, as to the amount of contributions required and
has complied with section 23 and, where applicable, sections 24 and 25.
(2) After
receiving an application as to the amount of contributions required, the
Minister shall send the applicant a notice advising of the required amount.
Method of making lump
sum and instalment contributions - general provisions
23(1) Contributions for service described in section
20(1)(d)(i), (iii), (iv) or (v) are to be made by lump sum payment, by
instalments withheld from remuneration or by annual instalments, but they may
be made only by lump sum payment if the required payment is $500 or less.
(2) In
the case of a lump sum payment, the required amount must be paid in full within
90 days of the date of the notice advising the person of the required amount.
(3) In
the case of payment by instalments withheld from remuneration, the participant
must authorize the withholding within 60 days of the date of the notice
advising of the required amount, the first payment must be withheld from the participant’s
remuneration and remitted to the Provincial Treasurer within 45 days after the
participant’s authorization is given and the required amount must be paid in
full by regular instalments withheld from remuneration in an amount that is not
less than $50 per month and is in any case at least sufficient to ensure full
payment, with interest at the financing rate,
(a) by
the end of the year in which he will attain the age of 71 years,
(b) by
the date when the aggregate of the number of years of
(i) his combined pensionable service already accumulated,
(ii) all service being acquired by him, and
(iii) the pensionable service that will accumulate on a current basis
while the instalments are being made, assuming no change in employment,
will equal 35 years, or
(c) in
10 years,
whichever comes first.
(4) In
the case of payment by annual instalments, the required amount must be paid in
full by annual payments each in an amount that is at least equal to 12 times
the minimum monthly payment specified in subsection (3).
(5) Notwithstanding
a person’s having entered into arrangements to effect payment under subsection
(3) or (4), he may thereafter change the basis of instalment payments to that
provided for in subsection (4) or (3) respectively.
(6) Notwithstanding
a person’s having entered into arrangements to effect payment under subsection
(3), (4) or (5), he may at any time prepay the balance of the required amount
or any portion of that balance, without penalty.
(7) In
the case of payment by annual instalments under subsection (4), the participant
must authorize that basis of payment within 60 days of the date of the notice
advising of the required amount, the first instalment must be remitted to the
Provincial Treasurer within 45 days after the participant’s authorization is
given and the subsequent annual instalments are payable on or before the
anniversary of the due date of the first instalment.
Payment of balance on
termination
24(1) Notwithstanding section 23, where a person
terminates leaving contributions under section 20(1)(d) not fully paid, he must
pay the full balance of the required amount within 90 days after termination if
he wishes the remaining service to be taken into account as pensionable
service.
(2) A
person who is liable to make payments under section 23 and who becomes a
participant of the related plan nevertheless continues to be liable and
entitled to continue to make payments under sections 23 to 25 as if still a
participant of this Plan.
Effect of leave on
instalment payments
25(1) Notwithstanding section 23, a participant who
goes on leave without or with partial salary or on educational leave and has
previously undertaken payments under section 23(3), (4) or (5) may
(a) continue
to make those payments, or
(b) without
affecting his liability to make the payments within the time limit that would
have applied had he not gone on that leave, cease to make those payments during
the leave period.
(2) Where
the participant has ceased to make payments under subsection (1)(b), he shall
recommence making them within 90 days after the end of the leave period and
make such further payments as the Minister considers necessary to ensure that
the time limit referred to in that clause is met.
Prior service
liability ‑ continuation of arrangements under former Act
26(1) Notwithstanding anything in the Plan, a person
who immediately before commencement was participating in the Plan under the
former Act and had previously made arrangements for payment with respect to
prior service under and within the meaning of the former Act is to continue to
make payments under those arrangements under the same terms and conditions,
including the rate of interest, until payment is made in full, and the employer
is liable to continue to make those contributions, if any, with interest at the
rate formerly payable, in respect of that service, that the employer would have
been liable to make had the former Act been still in force.
(2) If
a person to whom subsection (1) applies ceases to make the required payments
under the arrangements referred to in that subsection, section 27 applies and,
on the crediting of service under that section, the person is thereafter
entitled to purchase the remainder of the service not credited only pursuant to
sections 20(1)(d) and 22 to 25.
(3) Where
service of a person who died before commencement could have been but was not
acquired as pensionable service pursuant to section 16(1)(c)(iv) of the former
Act, that service may nevertheless be so acquired on the same basis and at the
same contribution rate, including the rate of interest, as if the former Act
were still in force.
(4) A
person who is liable to make payments under section 26 and who becomes a
participant of the related plan nevertheless continues to be liable and entitled
to continue to make payments under section 26 as if still a participant of this
Plan.
Partial credit of
partially paid service
27 Notwithstanding section 22(1), where a
person complied with the applicable provisions of sections 20(2), 23, 24 and 25
except that he did not pay the whole of the required amount, the Minister may
take the service for which he has paid into account as pensionable service.
Interest on unpaid or
unremitted prior service contributions
28 Where contributions under section
20(1)(d) or 26 to be remitted by an employer are not received by the Provincial
Treasurer on or before the end of a period of 15 days following
(a) in
the case of a lump sum payment, the last date on which it is payable,
(b) in
the case of instalments withheld from remuneration, the end of the salary
period for which they are payable, or
(c) in
the case of annual instalments, the applicable date referred to in section
23(7),
the Provincial
Treasurer may charge the employer interest on those overdue contributions at
the rate referred to in section 17(2).
Part 5
Benefits
Interpretation and
application of Subdivisions A
29(1) This section applies with respect to the
interpretation and application of Subdivision A of any Division of this Part
and, in any such Subdivision,
(0a) “additional
contributions” means additional contributions paid in 1992 or 1993;
(a) “employee
contributions” means additional contributions paid by a participant and the
following, so far as they relate to service that occurred before 1994 and have
not previously been returned, namely
(i) current service contributions,
(ii) contributions described in section 15(3),
(iii) contributions for prior service made by a participant, and
(iv) any part of a sum paid into the Plan under an old or a new
reciprocal agreement that is recognized by the Minister as employee
contributions,
whether those contributions
were made before or after January 1, 1994, and includes interest on those
amounts;
(b) “highest
average salary” means, subject to this section, the average
(i) of a person’s annual salaries in the 5 or, if less than 5, the
total number of consecutive years (whether before or after or partly before and
partly after the beginning of 1994) of the following service over which the
average of his salaries was the highest, namely
(A) his pensionable service for which current
service contributions were paid,
(A.1) his combined pensionable service in the
related plan for which current service contributions within the meaning of the
related plan were paid,
(B) any further service that would be
pensionable service referred to in paragraph (A) or combined pensionable
service referred to in paragraph (A.1), as the case may be, but only for its
exceeding the applicable limit established by section 21, and
(C) any service transferred into the Plan under
a reciprocal agreement and performed with a party to a reciprocal agreement,
or
(ii) if the person has not accumulated 5 such consecutive years, then,
in respect of other service not taken into account for the purposes of
subclause (i), of the highest of the remuneration on which the contributions
paid to establish that other service as pensionable service were based under
section 16(1)(c) of the former Act or section 26 or of the remuneration
implicit in the salary basis used in determining the actuarial reserve value,
excluding salary growth assumptions, paid to establish the service as
pensionable service under the relevant portions of section 20(1)(d) of these
plan rules;
(c) “normal
pension” means a pension in the amount receivable under section 36(1) and in
the form specified in section 36(2);
(d) “years
of pensionable service” means the number of complete years and any fraction of
a remaining year of pensionable service.
(2) Except
where specifically stated, Subdivision A of any Division of this Part applies
only with respect to service that occurred before 1994, but this subsection
does not apply to the extent that a reference is made to combined pensionable
service.
(3) For
the purpose of determining the consecutive years referred to in subsection
(1)(b), breaks in service shall be disregarded.
(4) For
the purposes of subsection (1)(b)(i), the salary with respect to service that
has been transferred into the Plan under
(a) an
old reciprocal agreement is the remuneration reported as the person’s
remuneration by the other party to the agreement, or
(b) a
new reciprocal agreement is the remuneration on which contributions paid to
establish that service as pensionable service were based.
(5) In
determining the annual salary for the purposes of the calculation under
subsection (1)(b) of a person who has accumulated prorated pensionable service
under section 20(8), the person’s actual annual salary is to be annualized in
accordance with the following formula:
actual
annual salary earned X 1
decimalized
proportion of
pensionable
service accumulated
to
full length of
service
performed
(6) Where
any combined pensionable service in the related plan or any service that would
be such but only for its exceeding the applicable limit established by section
21 is to be taken into account for the purposes of subsection (1)(b), “salary”
is to be taken for that purpose as referring to any salary (within the meaning
of the related plan) earned while that service was being performed.
(7) In
determining salaries or the average of a person’s annual salaries with respect
to 1992 or 1993 for the purposes of subsection(1)(b),
(a) the
salary for that year is to be taken to be the pensionable salary for that year,
and
(b) the
salary referred to in subsection (6) is to be taken to be the pensionable
salary under the related plan for that year.
Interpretation and
application of Subdivisions B
30(1) This section applies with respect to the
interpretation and application of Subdivision B of any Division of this Part
and, in any such Subdivision,
(0a) “additional
contributions” means additional contributions paid after 1993;
(0b) “employee
contribution excess” means an amount equal to the excess, if any, of the
employee contributions, other than additional contributions, over half the
commuted value, as at the date provided for in this Plan;
(a) “employee
contributions” means additional contributions paid by a participant and, so far
as they relate to service that occurs after 1993 and have not previously been
returned, any contributions referred to in section 29(1)(a)(i) to (iv), and
includes interest on those amounts;
(b) “highest
average salary” has the meaning assigned to it by section 29(1)(b);
(c) “normal
pension” means a pension in the amount receivable under section 47(1) and in
the form specified in section 47(2)(a) or (b), depending on which of those
clauses apply to him;
(d) “years
of pensionable service” has the meaning assigned to it by section 29(1)(d).
(2) Except
where specifically stated, Subdivision B of any Division of this Part applies
only with respect to service occurring after 1993, but this subsection does not
apply to the extent that a reference is made to combined pensionable service.
(3) For
the purpose of determining the consecutive years for the purposes of subsection
(1)(b), breaks in service shall be disregarded.
(4) For
the purposes of subsection (1)(b), as it incorporates section 29(1)(b)(i),
section 29(4) applies.
(5) In
determining the annual salary for the purposes of subsection (1)(b), section
29(5) applies.
(6) Section
29(6) applies.
(7) In
determining salaries or the average of a person’s annual salaries for the
purposes of subsection (1)(b),
(a) the
salary in respect of any year after 1993 is to be taken to be the pensionable
salary for the year in question, and
(b) a salary in respect of any year before 1994
that exceeds the amount that would have been required to produce the defined
benefit limit fixed by the tax rules for 1994 is deemed to be equal to that
amount.
AR 370/93 s30;149/98
Limitation of
benefits where obtainable under Subdivisions A and B
32(1) Notwithstanding
anything in any other section of this Part, so far as applicable,
(a) where
more than one type of benefit is obtainable under Subdivision A or B of any
Division of this Part and benefits corresponding to those Subdivision A or B benefits
are also obtainable under Subdivision B or A thereof, as the case may be, the
person entitled is permitted to take only the one type of benefit under the 2
Subdivisions,
(b) if
benefits under the 2 Subdivisions would otherwise be obtainable at or from
different times, the person may only take the benefits at or commencing from
one single time under the 2 Subdivisions, and
(c) where
different forms of pension may be selected, only one form of pension may be
selected under the 2 Subdivisions.
(3) Where
a statutory declaration referred to in sections 37(3)(a) and 48(3), as it
incorporates section 37(3)(a), has been signed by a spouse and filed, the
combination of the forms of pension specified in sections 38(1)(b) and 47(2)(b)
is not to be considered as constituting different forms of pension for the
purposes of subsection (1).
(4) A
person who is entitled to benefits both under sections 47(1) and 70 is entitled
to receive a pension under the former and the benefit specified in section
69(b.1).
(5) Subsection
(1) does not apply with respect to the taking of
(a) a
pension under sections 41(1) or (2) and 52(1) or (2), respectively, or
(b) benefits
under sections 59 or 62 and 64 or 65, respectively.
(6) Different
deemed choices of pension under section 44, on the one hand, and section 55, on
the other, are not to be considered as constituting the choice of different
forms of pension for the purposes of subsection (1).
Locking in - general
provisions
33(1) Where money held in the Plan is locked in, the
money is to be held in the Plan until
(a) it
is paid out in the form of a pension,
(b) it
is transferred from the Plan to a locked‑in retirement account pursuant
to a provision of this Part allowing a transfer, or
(c) it
is transferred from the Plan under a new reciprocal agreement pursuant to a
provision of this Part allowing such a transfer.
(2) Notwithstanding
anything in this Part, money that would otherwise be locked in or required to
be transferred to a locked‑in retirement account is not locked in
(a) to
the extent that it consists of a tax rule excess, or
(b) if
the lump sum amount is less than 4% of the year’s maximum pensionable earnings
for the year in which termination or death, as the case may be, occurred and
the benefit is not a pension.
Imposition of locking
in on other plans and vehicles
34(1) Notwithstanding anything in this Part, where
money that is locked in is to be transferred to a locked‑in retirement
account, it may be transferred only if the financial institution or entity to
which it is transferred receives it on a locked‑in basis and the
acceptance of the money, and any subsequent transfer of it, will be the subject
of a contract within the meaning of, and that is subject to, section 30, 30.1
or 30.2 of the Employment Pension Plans Regulation (Alta. Reg. 364/86).
(2) When
a transfer of locked‑in money has been made in compliance with this
section or section 33(1)(c), all the liabilities of the Minister and of the
Plan with respect to the money become extinguished.
(3) To
avoid doubt, where money has been transferred from this Plan to a locked‑in
retirement account, the Employment Pension Plans Act and the regulations
under it (and particularly their spousal protection provisions) rather than
these plan rules apply.
Commuted value and
employee contribution excess
34.1(1) This section applies where a provision of the
Plan necessitates determination of the commuted value of a person’s benefits or
of an employee contribution excess.
(2) Commuted
value and employee contribution excess are to be determined as of the date of
pension commencement, termination before eligibility for a pension or death
before pension commencement, as the case may be, except as provided for in
subsection (3) or (4) or in section 84(2)(a)(i) or 97(2)(a).
(3) Where
there is a delay of more than one year between the date as of which the
commuted value or the employee contribution excess was determined and the date
of the transfer of the commuted value or the transfer or payment of that
excess, the Minister shall recompute the commuted value or excess as if never
originally done and as of the end of the month preceding that in which the
transfer or payment, as the case may be, is made, except where the commuted
value or employee contribution excess has to be computed for the purpose of a
transfer under a reciprocal agreement.
(4) Where
a participant terminates and opts to receive a pension under section 69(d) or
72(d)(i), or both, and an employee contribution excess is payable or
transferable, that excess is to be determined as at pension commencement.
(5) Where
commuted value is transferable, interest is to be added for the period of one
year or less between the date of the determination of the commuted value and
the date when the commuted value is transferred.
(6) Where
an employee contribution excess is payable or transferable, interest is to be
added for the period of one year or less between the date of the determination
of that excess and the date when that excess is paid or transferred.
(7) In this section, “employee contribution excess”
has the meaning assigned to it in section 30(1)(0b).
AR 149/98 s4
Division 1
Retirement Benefits
Subdivision
A
For Service Before 1994
Limitation of benefits
to meet tax rules
35 Benefits that relate to service that is
pensionable under section 20(1)(d) are limited to what is allowed by the tax
rules.
Normal pension, etc.,
based on age plus
36(1) A person who
(a) has
terminated or terminates,
(b) has
accumulated at least 5 years’ combined pensionable service, and
(c) has
reached
(i) June 30, if his appointment date was later than June 30, 1966, or
(ii) August 31, if before July 1, 1966
immediately following his
65th birthday,
is entitled to receive
a pension in the annual amount that is equal to 2% of his highest average
salary multiplied by the number of years of his pensionable service.
(1.1) A
person who
(a) terminates,
(b) has
accumulated at least 10 years’ combined pensionable service, and
(c) has
attained the age of 55 years but has not reached the applicable date specified
in subsection (1)(c),
is entitled to receive
a normal pension or a benefit referred to in section 69(c).
(2) A
pension under subsection (1) is payable for the life of the pensioner or the
term of 15 years, whichever is the longer.
Spousal protection
37(1) Notwithstanding anything in the Plan except
subsections (2) and (3) and section 34(3), a pensioner who has a spouse at
pension commencement is deemed for the purposes of the Plan to choose a pension
in the form of a joint life pension under section 38(1)(c)(ii), with that
spouse as the designated nominee.
(2) The
pensioner may select any form of joint life pension under section 38(1)(c) or
(d) with the spouse at pension commencement as the designated nominee, or a
pension under section 38(1)(e) or (f), rather than that referred to in
subsection (1).
(3) Subsections
(1) and (2) do not apply where there was filed with the Minister
(a) a
valid statutory declaration by the person who was the spouse at pension
commencement in the form set out in, and signed in accordance with the
requirements of, Form 1 of Schedule 1,
(b) where
that person was a spouse within the meaning of section 2(1)(oo)(iii) and the
circumstances described in subsection (6) apply, a valid statutory declaration
by the pensioner in the form set out in Form 2 of Schedule 1, or
(c) a
matrimonial property order.
(4) Notwithstanding
subsection (3), a declaration under that subsection is not valid if it is made
more than 90 days before pension commencement.
(5) A
pension payable under subsection (1) or (2) is in an amount that is the
actuarial equivalent of the pension payable in the form of a normal pension.
(6) The
circumstances referred to in subsection (3)(b) are that
(a) the
spouse was separated from the pensioner for at least 3 years prior to pension
commencement, and
(b) the
Minister has not been notified in writing that any matrimonial property
proceeding designed to obtain a matrimonial property order has been or is about
to be commenced.
Alternative forms of
pension
38(1) A person who is entitled to receive a pension
in the form specified in section 36(2) is entitled, as an alternative, to
select a form of pension from one of the following:
(a) a
guaranteed term pension, payable for
(i) whichever term, being 5 years or 10 years, is selected by the
pensioner, or
(ii) his life,
whichever is the longer;
(b) a
single life pension, payable only for the life of the pensioner;
(c) a
joint life pension, payable during the joint lives of the pensioner and a nominee
designated by him and which, after the death of either, continues to be payable
(i) in the same amount as the amount payable before the death, or
(ii) in the amount of 2/3 of it,
to the survivor for his
life;
(d) a
joint life pension described in clause (c) that is payable, in the event that
the survivor dies within 10 years of pension commencement, for the remainder of
the guaranteed term of 10 years from pension commencement in the amount that
was payable to the survivor immediately before the survivor’s death;
(e) a
single life pension, payable only for the life of the pensioner with the
provision that, if the pensioner dies survived by the person who was his spouse
at pension commencement, the pension is payable to that person for life in an amount
equal to 2/3 of the pension that would have been payable to the pensioner had
he continued to live;
(f) a
single life pension described in clause (e) that is payable, in the event that
the survivor dies within 10 years of pension commencement, for the remainder of
the guaranteed term of 10 years from pension commencement, in the amount that
was payable to the survivor immediately before the survivor’s death.
(2) Where
an alternative form of pension is selected under subsection (1), the pension is
in an amount that is the actuarial equivalent of the pension in the form of a
normal pension.
(3) As
a further alternative, the Board may, on the application of the person
entitled, allow that person to select a pension in a form not specified in this
section but that the Board considers is best suited to the person’s
circumstances, with the applicant being liable for the additional costs
involved in calculating the alternative form under this subsection.
(4) Subsection
(2) applies where an alternative form of pension is allowed under subsection
(3).
Pension after
reaching 69
40 A person who ceases to be a participant
or a participant of the related plan by reason only of reaching the end of the
year in which he attained the age of 71 years and who has accumulated at least
5 years’ combined pensionable service is to receive a normal pension.
Disability pensions
41(1) Subject to subsection (3), a person who, before
attaining the age of 55 years,
(a) has
accumulated at least 10 years’ combined pensionable service,
(b) satisfies
the Minister that he has become totally disabled, and
(c) either
terminates and ceases to be a participant as a result of that disability or had
previously terminated and had elected to receive a deferred pension under
section 69(d),
becomes and, subject
to section 42, is entitled to receive a normal pension.
(2) Subject
to subsection (3), a person who, before attaining the age of 55 years,
(a) has
accumulated at least 10 years’ combined pensionable service,
(b) satisfies
the Minister that he
(i) has become incapable of effectively performing the regular duties
of his work as a result of his mental or physical impairment, and
(ii) is not totally disabled,
and
(c) either
terminates and ceases to be a participant as a result of that impairment or had
previously terminated and had elected to receive a deferred pension under
section 69(d),
becomes and, subject
to section 42, is entitled to receive a pension in the form and in the amount
of a normal pension, reduced, however, in amount by 3/12 of 1% for each
complete month (with a proration for the additional portion, if any, of a
month) by which pension commencement falls short of his 55th birthday.
(3) A
person is not entitled to receive any pension if he is receiving benefits under
a disability plan.
(4) In
this section and in section 42, “totally disabled” means suffering from a
physical or mental impairment that can reasonably be expected to last for the
remainder of the person’s lifetime and that prevents the person from engaging
in any gainful occupation.
Disability pension
adjustments
42(1) Where a person who has not yet attained the age
of 55 years is in receipt of a pension under section 41(1) and
(a) does
not submit the evidence required under section 83 of the continuing total
disability, or
(b) the
Minister finds that he is no longer totally disabled,
the Minister may have
his pension reduced to the amount provided for by section 41(2).
(2) Where
a person who has not yet attained the age of 55 years is in receipt of a
pension under section 41(2) and satisfies the Minister that he is totally
disabled, the Minister may upgrade his pension to a pension under section 41(1)
with effect from the date of his application for the upgrading.
(3) Where
a person who has not yet attained the age of 55 years is in receipt of a
pension under section 41(2) and the Minister is no longer satisfied that he is
eligible for the pension, the Minister may eliminate payment of the pension.
Postponement of
pension
43(1) A person who is entitled to receive a pension
under section 36 or 69(d) may postpone commencement of the pension to any date
up to the end of the year in which he attains the age of 71 years.
(2) Whether
or not the person has taken any active steps to effectuate a postponement, the
pension becomes postponed when, and only when, it transpires that pension
commencement has not occurred at the date when, given the circumstances
described in the relevant enactment referred to in subsection (1), it would
have occurred.
(3) When
a pension that was postponed becomes payable, it is to be in the form of a
normal pension and in the amount that is the actuarial equivalent of the normal
pension that the person would have been entitled to receive had the
postponement not been made.
Failure to select
pension
44 A person who is requested in writing by
the Minister to make a choice of pensions and who fails to do so within 90 days
after the request is sent is deemed for the purposes of the Plan to have chosen
(a) a
pension in the form of a normal pension if the person did not have a spouse at
pension commencement or if he did but a valid statutory declaration under
section 37(3) was filed in respect of his pension, or
(b) if
the person did have a spouse then and such a declaration was not filed in
respect of his pension, a joint life pension under section 38(1)(c)(ii) with
that spouse as the designated nominee.
Death after
entitlement to section 36 pension
45 Where the deceased had terminated, had
become entitled to a pension under section 36 or had become so entitled but
only for postponing it, and died without having made a valid choice as to the
form of pension to be taken, the deceased is deemed for the purposes of the
Plan to have chosen,
(a) if
there is a surviving spouse and no valid statutory declaration under section
37(3) had been filed in respect of his pension, a pension in the form specified
in section 38(1)(c)(i), with the spouse as the designated nominee, or
(b) if
there is no surviving spouse or if there is but a valid statutory declaration
under section 37(3) had been filed in respect of his pension, a guaranteed term
pension referred to in section 38(1)(a) on a 10‑year basis.
Subdivision B
For Service After 1993
Tax rule limitations on
benefits
46 Notwithstanding anything in the Plan but
without affecting any particular provision of the Plan further limiting
benefits, benefits are limited to what is allowed by the tax rules.
Normal pension based
on age or age and service
47(1) A person who terminates, has accumulated at
least 5 years’ combined pensionable service and has either attained the age of
55 years with the sum of his age and combined pensionable service amounting to
not less than 80 years or attained the age of 60 years is entitled to receive a
pension in the annual amount that is equal to the aggregate of
(a) 1.4%
of his highest average salary multiplied by the number of years of his
pensionable service,
(b) 0.6%
of that part of his highest average salary, if any, that exceeds the annual
average of the year’s maximum pensionable earnings for the period of, or
periods aggregating, 5 years over or in respect of which that highest average
salary is determined, multiplied by the number of years of his pensionable
service, and
(c) 0.6%
of the whole of his highest average salary if it does not exceed, or of that
part of it that does not exceed, the annual average of the year’s maximum
pensionable earnings for the that period of, or those periods aggregating, 5
years, multiplied by the number of years of his pensionable service,
as reduced as a result
of the application of subsections (4) and (4.1).
(1.1) For
the purposes of subsection (1), where there are 2 or more periods or
combinations of periods producing the same highest average salary, the year’s
maximum pensionable earnings are to be averaged over the period or periods that
produce the highest possible pension.
(2) A
pension under subsection (1) is payable
(a) if
the pensioner did not have a spouse at pension commencement or if he did but a
valid statutory declaration under section 48(3) was filed in respect of his
pension, for the life of the pensioner or the term of 10 years, whichever is
the longer, or
(b) if
the pensioner did have a spouse at pension commencement and such a declaration
was not filed in respect of his pension, in the form of a single life pension,
payable only for the life of the pensioner with the provision that, if the
pensioner dies survived by that person, the pension is payable to that person
for life in an amount equal to 2/3 of the pension that would have been payable
to the pensioner had he continued to live.
(4) Immediately before the
earliest of
(a) pension commencement, if the pensioner
attained the age of 65 years before pension commencement,
(b) the first day of the month following the
date when he attains the age of 65 years, if the pensioner has not yet attained
that age, and
(c) if the pensioner died before attaining the
age of 65 years, the first day of the month following the date when he would
have attained that age had he continued to live,
the
portion identified in subsection (1)(c) of any pension that is payable under
any provision of this Subdivision is to cease to be paid.
(4.1) For all purposes
involved in the calculation of the reduction in pension as a result of the
application of subsection (4), increases paid under sections 77 and 78 are to
be included.
(6) The person entitled is also entitled to receive
the employee contribution excess.
AR 370/93
s47;248/99;125/2000
Spousal protection
48(1) Notwithstanding anything in the Plan except
subsections (2) and (3) and section 34(3), a pensioner who has a spouse at
pension commencement is deemed for the purposes of the Plan to choose a pension
in the form specified in section 47(2)(b).
(2) The
pensioner may select a form of joint life pension under section 49, so far as
it incorporates section 38(1)(c)(i), or section 38(1)(d), so far as it relates
to section 38(1)(c)(i), with the spouse at pension commencement as the
designated nominee, rather than that referred to in subsection (1).
(3) Section
37(3) applies.
(4) Section
37(4) applies.
(5) A
pension payable under subsection (1) or (2) is in an amount that is the
actuarial equivalent of the pension payable in the form specified in section
47(2)(b).
(6) Section
37(6) applies.
Alternative forms of
pension
49(1) A person who is entitled to receive a pension
in the form specified in section 47(2)(a) and who did not have a spouse at
pension commencement is entitled, as an alternative, to select
(a) any
other form of pension from any of those provided for in section 38(1)(a) to
(d), or
(b) a
guaranteed term pension, payable for the term of 15 years or for his life,
whichever is the longer.
(1.1) A
person who is entitled to receive a pension in the form specified in section
47(2)(a) and who did have a spouse at pension commencement but in respect of
whom a valid statutory declaration under section 48(3) was filed is entitled,
as an alternative, to select
(a) any
form of pension referred to in subsection (1), and
(b) if
he has had a valid statutory declaration filed by his spouse in respect of his
pension under section 37(3) and section 48(3), a pension in the form specified
in section 38(1)(e).
(1.2) A
person who is entitled to receive a pension in the form specified in section
47(2)(b) is entitled, as an alternative, to select a form of pension specified
in section 38(1)(c)(i) or section 38(1)(d) as it refers to section 38(1)(c)(i),
with the spouse as the designated nominee, or a pension in the form specified
in section 38(1)(f).
(2) Subject
to subsection (2.1), where an alternative form of pension is selected under
subsection (1) or (1.1), the pension is in an amount that is the actuarial
equivalent of the pension in the form specified in section 47(2)(a).
(2.1) Where
a person referred to in subsection (1.1)(b) selects a pension in the form
specified in section 38(1)(e), the pension is in an amount that is the
actuarial equivalent of the pension specified in section 47(2)(b).
(2.2) Where
an alternative form of pension is selected under subsection (1.2), the pension
is in an amount that is the actuarial equivalent of the pension in the form
specified in section 47(2)(b).
(3) Section
38(3) applies.
(4) Where
an alternative form of pension is allowed under subsection (3), the pension is
in an amount that is the actuarial equivalent of the pension in the form
specified in section 47(2)(a) or (b), depending on which of the forms of
pension specified in those clauses the person is entitled to receive.
Pension on early retirement
50(1) A person who terminates, has attained the age
of 55 years without meeting the requirements of section 47(1) and has
accumulated at least 5 years’ combined pensionable service is entitled
(a) to
receive a pension in the form and in the amount of a normal pension, reduced,
however, in amount by 3/12 of 1% for each complete month (with a proration for
the additional portion, if any, of a month) by which pension commencement falls
short of the date when his future age and his accumulated combined pensionable
service to pension commencement, or his future age, would entitle him, if
instead he terminated at that future date, to a pension under section 47, or
(b) to
the benefit referred to in section 72(c).
(2) In addition, the person is entitled to the
employee contribution excess.
AR 370/93 s50;248/99
Pension after
reaching 69
51(1) Section 40 applies.
(2) In
addition, the person is entitled to the employee contribution excess.
Disability pensions
52(1) Subject to subsection (3), a person who, before
becoming entitled to a pension under section 47,
(a) has
accumulated at least 5 years’ combined pensionable service,
(b) satisfies
the Minister that he has become totally disabled, and
(c) either
terminates and ceases to be a participant as a result of that disability or had
previously terminated and had elected to receive a deferred pension under
section 72(d),
becomes and, subject
to section 53, is entitled to receive a normal pension.
(2) Subject
to subsection (3), a person who, before becoming entitled to a pension under
section 47,
(a) has
accumulated at least 5 years’ combined pensionable service,
(b) satisfies
the Minister that he
(i) has become incapable of effectively performing the regular duties
of his work as a result of his mental or physical impairment, and
(ii) is not totally disabled,
and
(c) either
terminates and ceases to be a participant as a result of that impairment or had
previously terminated and had elected to receive a deferred pension under
section 72(d),
becomes and, subject
to section 53, is entitled to receive a pension in the form and in the amount
of a normal pension, reduced, however, in amount by 3/12 of 1% for each
complete month (with a proration for the additional portion, if any, of a
month) by which pension commencement falls short of the date when his future
age and his accumulated combined pensionable service to pension commencement,
or his future age, would entitle him, if instead he terminated at that future
date, to a pension under section 47.
(3) Section
41(3) applies.
(4) Section
41(4) applies, with the reference in it to section 42 being taken as a
reference to section 53.
(5) In
addition, the person is entitled to the employee contribution excess.
Disability pension
adjustments
53(1) Where a person who is not yet entitled to a
pension under section 47 is in receipt of a pension under section 52(1) and
(a) does
not submit the evidence required under section 96 of the continuing total
disability, or
(b) the
Minister finds that he is no longer totally disabled,
the Minister may have
his pension reduced to the amount provided for by section 52(2).
(2) Where
a person who is not yet entitled to a pension under section 47 is in receipt of
a pension under section 52(2) and satisfies the Minister that he is totally
disabled, the Minister may upgrade his pension to a pension under section
52(1), with effect from the date of his application for the upgrading.
(3) Where
a person who has not yet attained the age of 55 years is in receipt of a
pension under section 52(2) and the Minister is no longer satisfied that he is
eligible for the pension, the Minister may eliminate payment of the pension.
Postponement of
pension
54(1) A
person who is entitled to receive a pension under section 47 or a normal pension
under section 72(d) may postpone commencement of the pension to any date up to
the end of the year in which he attains the age of 71 years.
(2) Section
43(2) applies.
(3) Section
43(3) applies.
(4) Where
a pension is postponed, any employee contribution excess is payable at pension
commencement.
Failure to select
pension
55 A person who is requested in writing by
the Minister to make a choice of pensions and who fails to do so within 90 days
after the request is sent is deemed for the purposes of the Plan to have chosen
a pension in the form of a normal pension.
Death after
entitlement to section 47 pension
56 Section 45 applies, with references in it
to sections 36, 37(3) and 38(1)(c)(i) and (a) being respectively taken as
references to section 47 and to sections 48 and 49, as they incorporate
sections 37(3) and 38(1)(c)(i) and (a).
Death after
entitlement to section 50 pension
56.1 Where a person dies after pension
commencement has occurred in relation to a pension under section 50 but before he
has made a valid choice as to the form of pension to be taken, the deceased is
deemed for the purposes of the Plan to have chosen
(a) if
there is a surviving spouse and no valid statutory declaration under section
48(3) had been filed in respect of his pension, a pension in the form referred
to in section 49(1), as it incorporates section 38(1)(c)(i), with the spouse as
the designated nominee, or
(b) if
there is no surviving spouse or if there is but a valid statutory declaration
under section 48(3) had been filed in respect of his pension, a guaranteed term
pension referred to in section 47(2)(a).
Division 2
Death Benefits
Application and
interpretation of Division
57(1) This Division applies with respect to a person,
other than a pensioner, who dies with employee contributions referred to in
section 29(1) or 30(1) in the Plan.
(2) In
this Division, “surviving spouse” means the person (if any) who was the spouse
of the person referred to in subsection (1) immediately before death occurred,
and who survived the deceased.
Return of prior, etc.
service contributions
58(1) Except where a pension is to be paid under this
Division, the amount of any employee contributions referred to in section 29(1)
or 30(1) paid to establish any prior service under section 20(1)(d) and any
leave without pay or salary and the unsalaried portion of any leave with
partial salary in respect of which the participant paid employer contributions
pursuant to section 15(3) or pursuant to the former Act in respect of service
in 1992 or 1993 shall be
(a) paid
to, or transferred to a registered retirement savings plan belonging to, the
surviving spouse, if there is one, or
(b) paid
to the person entitled to receive any benefit on the death, if there is no
surviving spouse.
(2) Subdivisions A and B apply to a person only
after any applicable payment or transfer required by subsection (1) has been
made and after section 20(4) has been applied.
AR 370/93 s58;295/95
Subdivision A
For Service Before 1994
Benefit on death before
commencement of pension
- spouse’s entitlements
59 Where there is a surviving spouse, the
spouse may choose,
(a) if
the deceased had at least 10 years’ combined pensionable service accumulated,
(i) the pension that would have been payable if the deceased, immediately
before dying, had terminated under the circumstances referred to in section
41(1) (disregarding age however) and had exercised the joint life option
specified in section 38(1)(c)(i), with the surviving spouse as the designated
nominee or, if the spouse so selects as an alternative, a guaranteed term
pension, payable for
(A) whichever term, being 5, 10 or 15 years, is
selected by the spouse, or
(B) the life of the spouse,
whichever is the
longer, in an amount that is the actuarial equivalent of that deemed joint life
pension,
(ii) to have transferred from the Plan an amount equal to the
aggregate of the employee contributions and the contributions made by the
employer in respect of him, with interest, or
(iii) to receive the amount specified in subclause (ii),
or
(b.1) if
the deceased had less than 10 years’ combined pensionable service accumulated,
the benefit specified in clause (a)(ii) or (iii).
Idem - where no
spouse
62 Where there is no surviving spouse, the
person entitled to receive any benefit on the death is entitled to a benefit
specified in section 59(b.1).
Subdivision B
For Service After 1993
Interpretation for
Subdivision
63 In this Subdivision, the deceased’s
accrued benefits that are to be taken into account in determining commuted
value are to be taken to be what his accrued benefits would have been under
Subdivision B of Division 3 had the deceased terminated rather than dying.
Benefit on death
before commencement of pension
- spouse’s entitlements
64(1) Where there is a surviving spouse, the spouse
may choose,
(a) if
the deceased had at least 5 years’ combined pensionable service accumulated,
(i) both
(A) the pension that would have been payable if
the deceased, immediately before dying, had terminated under the circumstances
referred to in section 52(1) and had exercised the joint life option under
section 49(1)(a) specified in section 38(1)(c)(i), with the surviving spouse as
the designated nominee or, if the spouse so selects as an alternative, a
guaranteed term pension, payable for
(I) whichever term, being 5, 10 or 15 years, is
selected by the spouse, or
(II) the life of the spouse,
whichever
is the longer, in an amount that is the actuarial equivalent of that deemed
joint life pension, and
(B) to receive the employee contribution excess,
or
(ii) to have transferred from the Plan to a locked‑in retirement
account whichever is the greater of
(A) an amount equal to the aggregate of the
commuted value and the employee contribution excess, and
(B) an amount equal to 1.75 times the amount of
the employee contributions, other than those contributions required by section
15(3) and the additional contributions,
or
(b) if
the deceased had less than 5 years’ combined pensionable service accumulated,
(i) to receive an amount equal to the employee contributions, or
(ii) to have that amount transferred from the Plan.
(2) A
pension under subsection (1)(a)(i) is in an amount that is reduced in
accordance with section 47(4) and that is the actuarial equivalent of what the
pension would have been under section 47(2)(a).
Idem - where no
spouse
65(1) Where there is no surviving spouse and the
deceased had at least 5 years’ combined pensionable service accumulated, the
person entitled to receive any benefit on the death is entitled to receive the
greater of
(a) an
amount equal to the aggregate of the commuted value and the employee
contribution excess, and
(b) an
amount equal to 1.75 times the amount of the employee contributions, other than
those contributions required by section 15(3) and the additional contributions.
(2) Where
there is no surviving spouse and the deceased had less than 5 years’ combined
pensionable service accumulated, the person entitled to receive any benefit on
the death is entitled to receive an amount equal to the employee contributions.
Division 3
Benefits on Termination
Before Pension Eligibility
Application of Division
66 This Division applies with respect to a
person who terminates with pensionable service before being entitled to apply
for and receive a pension.
Return of prior
service contributions
67(1) Except where a deferred pension is to be paid
under this Division, the amount of any employee contributions referred to in
section 29(1) or 30(1) paid to establish any prior service under section
20(1)(d) and any leave without pay or salary and the unsalaried portion of any
leave with partial salary in respect of which the participant paid employer
contributions pursuant to section 15(3) or pursuant to the former Act in
respect of service in 1992 or 1993 shall be paid to, or transferred to a
registered retirement savings plan belonging to, the former participant or
transferred from the Plan to a registered pension plan operated by the other
party to a reciprocal agreement.
(2) Subdivisions A and B apply to a person only
after any applicable payment or transfer required by subsection (1) has been
made and after section 20(4) has been applied.
AR 370/93 s67;295/95
Locking in under old
reciprocal agreements
68 Nothwithstanding anything in this
Division, where any amount that would otherwise be payable to a person or
transferable on a non‑locked‑in basis under this Division
represents money that has been received on a locked‑in basis under an old
reciprocal agreement, that money must nevertheless be transferred from the Plan
on a locked‑in basis.
Subdivision A
For Service Before 1994
Termination after 10
years’ combined pensionable service
69 A person who has accumulated at least 10
years’ combined pensionable service may choose
(a) to
receive an amount equal to the employee contributions, excluding additional
contributions with interest,
(b.1) to
have an amount equal to the aggregate of the amount specified in clause (a)
together with contributions, other than additional contributions, made by the
employer in respect of him, with interest, transferred from the Plan to a
registered retirement savings plan or a registered pension plan belonging to
him,
(c) subject
to sections 71 and 85, to have his pension entitlements transferred from the
Plan to a registered pension plan operated by the other party to a reciprocal
agreement in the amount required by that other party, not exceeding, however,
the amount which, taken together with the amount to be transferred under
section 72(c) (excluding any employee contribution excess) is specified in
section 84(2)(a), or
(d) to
receive, when he attains the age of 55 years, a normal pension.
Termination before 10
years’ combined pensionable service
70 A person who has accumulated less than 10
years’ combined pensionable service may choose the benefit specified in section
69(a), (b.1) or (c), plus additional contributions made by that person.
Excess not
transferred under reciprocal agreement
71 Where a sum of money is transferred from
the Plan under a reciprocal agreement that is less than the amount of the
benefit transferable under a reciprocal agreement under section 84(2)(a), the
excess is to be
(a) transferred
from the Plan on a locked‑in basis, to the extent that it is locked in,
and
(b) paid
to the person, to the extent that it is not.
Subdivision B
For Service After 1993
Termination after 5
years’ combined pensionable service
72 A person who has accumulated at least 5
years’ combined pensionable service may choose
(a) whichever
of the following involves the greater amount of monetary benefit, that is
(i) to have an amount equal to the commuted value transferred from
the Plan to a locked‑in retirement account and either to receive the
employee contribution excess or to have it transferred from the Plan,
or
(ii) to have transferred from the Plan to a locked‑in retirement
account an amount equal to 1.75 times the amount of the employee contributions,
other than those contributions required by section 15(3) and the additional
contributions, with interest,
(c) subject
to sections 74 and 98, to have his pension entitlements transferred on a locked‑in
basis from the Plan to a registered pension plan operated by the other party to
a reciprocal agreement in the amount required by that other party, not
exceeding, however, the amount which, taken together with the amount to be
transferred under section 69(c) or 70 (as it relates to section 69(c)), as the
case may be, is specified in section 97(2)(a), or
(d) to
receive
(i) a pension in the form of a normal pension and in the amount that
is equal to a pension under section 47 or 50, as the case may be, having
reached the date when he would have been entitled to receive a pension under
that section had he continued to be an employee until that time, but taking
into account only combined pensionable service and pensionable service,
respectively, accumulated at the actual date of termination, and actual highest
average salary, and
(ii) the employee contribution excess.
AR 370/93 s72;149/98
Termination before 5
years’ combined pensionable service
73 A person who has accumulated less than 5
years’ combined pensionable service may choose
(a) to
receive an amount equal to the employee contributions,
(b) to
have the amount specified in clause (a) transferred from the Plan, or
(c) subject
to sections 74 and 98, to have his pension entitlements transferred from the
Plan to a registered pension plan operated by the other party to a reciprocal
agreement in the amount required by that other party, not exceeding, however,
the amount which, taken together with the amount to be transferred under
section 70 (as it relates to section 69(c)), is specified in section 97(2)(a).
Excess not
transferred under reciprocal agreement
74 Section 71 applies with the reference in
it to section 84(2)(a) being taken as a reference to section 97(2)(a).
Division 4
Cost‑of‑living Increases
Subdivision
A
For Service Before 1994
Cost‑of‑living
increases
75(1) Notwithstanding anything else in the Plan, if
the cost of living has increased in the 12‑month period ending on October
31 in the calendar year previous to the current calendar year, all amounts
payable as pensions in the current calendar year shall be increased by a cost‑of‑living
increase calculated in accordance with subsections (3) to (6) or by the higher
rate, if any, that the Board establishes under section 76.
(2) The
increases shall also be applied to the periods
(a) of
postponement under section 43, and
(b) between
termination and the commencement of deferred pensions under section 69(d).
(3) The
amount of a cost‑of‑living increase under this section shall be
determined using a pension index, calculated in accordance with subsection (4).
(4) The
pension index for each calendar year shall be calculated as
(a) the
quotient obtained by dividing the sum of the consumer price indices for
Alberta, as published by Statistics Canada, for each month in the 12‑month
period ending on October 31 in the previous year by the sum of the
corresponding indices for the 12‑month period immediately preceding that
period, adjusted to 3 digits after the decimal point, or
(b) one,
if the quotient so obtained is less than 1.
(5) Subject
to subsection (6), the basic monthly amount of a pension, excluding any
additional payment under section 80, in one calendar year shall be increased,
if applicable, annually with effect from January 1 of the following calendar
year so that the amount payable, to the nearest cent, for a month in that
following year is an amount equal to the product obtained by multiplying
(a) the
basic amount that would have been payable for that month if no increase had
been made under this section,
by
(b) 1
+ .6X,
where X is equal to
the pension index (calculated in accordance with subsection (4)) minus 1.
(6) Where
a pension has commenced in the calendar year immediately preceding the
effective date of a cost‑of‑living increase, the amount of the
increase shall be multiplied by the fraction obtained by dividing the number of
complete months in that year during which the pension was paid by 12.
Increase by Board of
normal COLA
76(1) The Board may establish a higher rate of
increase for the purposes of section 75(1) and (2), but only if the
contribution rates are sufficient to provide for the higher rate.
(2) Section
75(6) applies with respect to increases under subsection (1).
Subdivision B
For Service After 1993
Cost‑of‑living
increases
77 Section 75 applies, with references in it
to sections 76, 43, 69(d) and 80 being taken as references to sections 78, 54,
72(d) and 93 respectively.
Increase by Board of
normal COLA
78(1) The Board may establish a higher rate of
increase for the purposes of section 77, as it incorporates section 75(1) and
(2), but only if
(a) the
Plan meets the minimum funding and solvency requirements set by section 38(2)
and (3), and the regulations made with reference to section 38(2), of the Employment
Pension Plans Act, and
(b) the
higher rate complies with the tax rules.
(2) Section
76(2) applies, with the reference in it to section 75(6) being taken as a
reference to section 77, as it incorporates that subsection.
Division 5
Miscellaneous
Subdivision
A
For Service Before 1994
Interest allowance
79(1) Where the Plan provides for the allowing of
interest, interest shall be
(a) allowed
at the rate of 4% per annum compounded semi‑annually up to commencement,
and
(b) thereafter
allowed at the rate, compounded annually, calculated in the manner and applied
at the times, provided in subsections (2) to (5).
(2) Subject
to this section, the rate of interest to be allowed for the purposes of
subsection (1)(b) is the rate that is calculated on and as of the first day of
the fiscal year on the basis of the average of the yields of 5‑year
personal fixed term chartered bank deposit rates maintained by Statistics
Canada as CANSIM Series B 14045, over the most recent 12‑month period for
which the rates are available and, where that rate results in a fraction of 1%
that is expressed otherwise than as a multiple of a full 1/10 of 1%, rounded
downwards to the next full 1/10 of 1%.
(3) Interest
shall be applied on the first day of each fiscal year with respect to all
contributions, with interest accumulated up to the end of the fiscal year
immediately preceding the most recently completed fiscal year.
(4) Interest
shall be applied on the first day of each fiscal year to contributions made
during the most recently completed fiscal year at 1/2 of the applicable rate
provided by subsection (2).
(5) Where
a person becomes entitled to have a benefit, other than a pension, paid to him
or transferred, interest shall be applied to the end of the month immediately
preceding the date of payment,
(a) at
the rate calculated by dividing 365 into the product of the number of days in
the uncompleted fiscal year with respect to which interest is to be paid and
the applicable rate provided for by subsection (2) at the end of the
immediately preceding fiscal year, and
(b) to
contributions made during the more recent uncompleted fiscal year, at 1/2 of
the rate applied under clause (a).
Co-ordination of
certain pensions with C.P.P. and O.A.S.
80(1) Where
a person is to receive a pension under section 36(1.1), 41(2) or 69(d) before
attaining the age of 65 years, he may choose to increase the pension by an
amount equal to the actuarial equivalent of the estimated Canada Pension Plan
retirement pension or the Old Age Security benefit or both until he reaches or
would, but for his previous death, have reached the age of 65 years, at which
time the increased pension, including that amount, shall be reduced by the
amount of the previously estimated Canada Pension Plan retirement pension or
Old Age Security benefit or both, as the case may be.
(2) Where
a person is to receive a pension under section 41(1) or 59(a) before attaining
the age of 65 years, he may choose to increase the pension by an amount equal
to the actuarial equivalent of the estimated Old Age Security benefit until he
reaches or would, but for his previous death, have reached the age of 65 years,
at which time the increased pension, including that amount, shall be reduced by
the amount of the previously estimated Old Age Security benefit.
(3) Notwithstanding
subsections (1) and (2), if the basic pension under the Plan ceases before the
age of 65 years, payment of the amount of the actuarial equivalent of the
previously estimated Canada Pension Plan retirement pension or Old Age Security
benefit or both ceases at the same time.
(4) Notwithstanding
subsections (1) and (2), where a person selects a pension in the form specified
in section 38(1)(c)(ii) or section 38(1)(d), as it relates to section
38(1)(c)(ii), the amount of the Canada Pension Plan retirement pension or the
Old Age Security benefit or both to be received or recovered under those
subsections are subject to reduction in the same manner as the basic pension.
(4.1) Subsection
(1) does not apply to a person who selects the combination of pension forms
specified in section 32(3).
(7) Where
a basic pension is upgraded under section 42(2) and the person entitled to the
pension had chosen to increase it by the amount of the actuarial equivalent of
the estimated Canada Pension Plan retirement pension or the Old Age Security
benefit or both, payment of the actuarial equivalent or recovery of the
previously estimated Canada Pension Plan retirement pension or the Old Age
Security benefit or both shall occur as if the basic pension had not been so
upgraded.
(8) In
this section, “basic pension” means a pension in the amount computed before any
adjustment is made for
(a) co‑ordination
under this section, or
(b) any
cost‑of‑living increase under Division 4 or under the former Act,
other than, in the case of a deferred pension under section 69(d) of these plan
rules or under section 29(d) of the former Act, any increase for a period prior
to its pension commencement.
Pension commencement
81(1) Where a person becomes entitled to receive a
pension under section 36(1) and does not postpone commencement of that pension,
the effective date of the commencement of the pension is the day after
termination or, if later, the applicable date specified in section 36(1)(c).
(1.1) Where
a person becomes entitled to receive a pension under section 36(1.1) and does
not postpone commencement of that pension, the effective date of the
commencement of the pension is the day after termination.
(2) Where
a person becomes entitled to receive a pension under section 41, the effective
date of the commencement of the pension is the latest of
(a) the
date indicated in the application for the pension,
(b) the
day of receipt of the application by the Minister, and
(c) the
day after the termination.
(3) Where
a person becomes entitled to receive a pension under section 69(d) and does not
postpone commencement of that pension, the effective date of the commencement
of the pension is the latest of
(a) the
date indicated in the application for the pension,
(b) the
day of receipt of the application by the Minister, and
(c) the
day after the person attains the age of 55 years.
(4) Where
a person postpones commencement of a pension, the effective date of the
commencement of the pension is the later of
(a) the
date indicated in the application for the pension, and
(b) the
day of receipt of the application by the Minister.
(5) Notwithstanding
subsections (2) and (3), the Minister may treat the effective date of the
commencement of a pension under either of those subsections as being a date
that is not more than 6 months prior to the date that would otherwise be the
effective date under that subsection and that is not prior to the day after
termination.
(6) The
effective date of the commencement of a pension under section 59(a)(i) is the
day following the death of the deceased.
Commencement of
guaranteed term of years
82 The guaranteed term of a guaranteed term
pension is to be taken as commencing on pension commencement.
Requirement of
evidence
83(1) Before
any benefit is paid or transferred, there must be provided to the Minister
(a) where
it is necessary to determine in relation to a person the age, spousal or single
status, legal change of name, fact of death or facts relative to previous
employment, documents evidencing the facts, and
(b) where
a person applies for a pension under section 41,
(i) a medical statement from a physician outlining the findings of a
medical examination and assessing the degree of the person’s disability or
mental or physical impairment, and
(ii) any other documents evidencing that incapacity that the Minister
specifies.
(2) Without
limiting the application of subsection (4), for the purposes of determining
whether a person who has been granted a pension under section 41 is to continue
to receive the same amount of pension or not, the Minister may require that
person
(a) to
undergo the special medical examinations,
(b) to
supply the reports, and
(c) to
supply the statements of his occupation and earnings for any period,
that the Minister
specifies.
(3) An
employer shall submit to the Minister the evidence required by the Minister in
respect of a participant who applies for a pension under section 41.
(4) For
the purposes of determining whether a person who has been granted a pension is
or is not entitled to continue to receive the same amount of pension or any
pension at all, the Minister may require that person to supply any information
that the Minister considers relevant to determining that entitlement.
Transfer of pensions
under reciprocal agreements
84(1) The
Minister may enter into a reciprocal or any other agreement with any
university, college, government, local authority within the meaning of the Local Authorities Pension Plan or
other public body, or any private body, any of whose workers is subject to a
pension plan, for the purposes of enabling the transfer of pension entitlements
between the Plan and any such plan.
(2) A
reciprocal agreement entered into, made or amended after commencement must be
consistent with the Plan and provide
(a) for
pension entitlements under the Plan, based on all pensionable service, whether
accumulated before or after January 1, 1992, to be transferred from the Plan on
a locked‑in basis only in an amount that is not greater than the greater
of
(i) the commuted value, based on all such service and determined as
of the date when the application for the transfer is received by the Minister,
and
(ii) an amount equal to the combined aggregate amounts specified in
sections 69(b.1) and 72(a) or section 70, as it relates to section 69(b.1) and
section 73(a), as the case may be, and the amount (based on all such service)
transferable under section 67(1),
(b) that
only persons who were participants at or after commencement are entitled to
transfer pension entitlements from the Plan,
(d) for
service that is eligible to be recognized as pensionable service under the Plan
to be recognized only on an actuarial reserve basis,
(e) where
the amount transferred into the Plan is less than the amount required by
applying clause (d), for the participant to be able to
(i) prorate the service, or
(ii) both
(A) prorate the service, and
(B) subject to meeting the requirements of
section 22, acquire as pensionable service the service not recognized as
pensionable service on an actuarial reserve basis,
and
(f) that
money that is locked in under the transferring plan will continue to be locked
in under the transferee plan even if it would not be locked in under the
transferee plan but for this requirement.
(3) The Minister shall ensure that no reciprocal
agreements that were in force immediately before commencement remain or are in
force more than one year after commencement unless they comply with subsection
(2).
AR 370/93 84;149/98
Prohibition against
certain reciprocal transfers of service
85 A person who ceases to be a participant
and immediately becomes a participant of and within the meaning of the related
plan under circumstances whereby the pensionable service will become combined
pensionable service in the related plan is not entitled to have any pensionable
service transferred to the related plan under a reciprocal agreement.
Beneficiaries
86(1) Where a person designates a person to receive a
benefit payable on his death, whether beneficially or in a representative
capacity, or revokes a designation so made, the designation or revocation may
be filed with the Minister.
(2) Where
a person designates his estate as being entitled to receive a benefit payable
on his death, or makes a designation using words indicative of his estate or of
the representative capacity of his personal representative, he shall be deemed
to have designated the personal representative of his estate in his
representative capacity.
(3) Where
(a) at
the date of the death of a person on whose death a benefit is payable, there is
no valid designation by him filed with the Minister, or
(b) after
his death but before any payment is made under section 12(2) of the
Regulations, there is filed with the Minister a valid revocation by him of a
designation filed with the Minister
and no valid
designation is filed with the Minister before any such payment is made, the
person entitled to receive any benefit payable on his death is the deceased’s
spouse, if he is survived by a spouse, or the personal representative of the
deceased’s estate, if there is no surviving spouse.
(4) The
right of any person under this section to a benefit is subject to any rights
given by Subdivision A of Division 1 or 2 of this Part to any other person.
Method of payment of
pensions
87(1) A pension shall be paid on a monthly basis in
an amount equal to 1/12 of the annual amount of the pension.
(2) If
pension commencement occurs after the first day of a month, the amount payable
in respect of the remaining days in the month is as follows:
number
of days remaining
annual amount of pension X in the month
365
(3) Subject
to subsection (4), where a person in receipt of a pension dies, the pension is
payable to the person for the full month in which the death occurred.
(4) Subsection
(3) does not have the effect of extending the term of any guaranteed term
pension.
(5) The
reduction of a pension payable in the form specified in section 38(1)(c)(ii) or
in section 38(1)(d), as it relates to section 38(1)(c)(ii) on the first death
is to be taken as occurring with effect from the beginning of the month
following that in which the death occurred.
Idem - conversion
following death
88(1) Where a pensioner who has chosen a guaranteed
term pension dies before the expiry of the guaranteed term and the person
entitled to the remainder of the pension payments requests the Minister in
writing that those payments be converted to a lump sum payment, the person so
entitled shall instead be paid the present value of the remaining pension
payments.
(2) Subsection
(1) does not apply if the person entitled is the surviving spouse unless the
Minister grants the request for the conversion.
(3) Where
a person is to be paid the present value under this section and there are
pension payments outstanding after the date of death and before the payment of
the present value, the outstanding payments are to be made first and the
remaining payments are to be converted to a lump sum.
Suspension of
pensions on re‑employment
89 Section 102, so far as applicable, applies.
Continuation of
existing pensions and pension rights
91(1) A person who was in receipt of or entitled to a
benefit immediately before commencement continues, subject to these plan rules,
to be entitled to that benefit and in the same form that applied on that date
and the same survivorship rights, if any, that applied on that date continue to
apply thereafter.
(2) A
person who before commencement had chosen to receive a deferred pension under
section 29(d) of the former Act and, immediately before commencement, had not
yet commenced to receive that pension continues to be entitled to receive the
same pension, with the same rights appertaining to himself and to other persons
flowing through him, that would have applied had the former Act, as it was on
that date, still been in force, except that the options as to the form of
pension to be taken are to be those under these plan rules rather than those
under the former Act.
Subdivision B
For Service After 1993
Interest allowance
92 Where the Plan provides for the allowing
of interest, interest shall be allowed at the rate, compounded annually,
calculated in the manner and applied at the times, provided in section 79(2) to
(5).
Co‑ordination
of certain pensions with C.P.P. and O.A.S.
93(1) Where a person is to receive a pension under
section 47(1), 50, 52(2) or 72(d) before attaining the age of 65 years, section
80(1) applies.
(2) Where
a person is to receive a pension under section 52(1) or 64(1)(a)(i) before
attaining the age of 65 years, section 80(2) applies.
(3) Section
80(3) applies.
(4) Notwithstanding
subsections (1) and (2), where a person selects a pension in the form provided
for in section 49(1), so far as it incorporates section 38(1)(c)(ii) or section
38(1)(d), as it relates to section 38(1)(c)(ii), section 80(4) applies.
(4.1) Section
80(4.1) applies.
(7) Where
a basic pension is upgraded under section 53(2), section 80(7), if applicable,
applies.
(8) Section
80(8) applies, with the reference in it to section 69(d) being taken as a
reference to section 72(d) and the reference to section 29(d) of the former Act
being taken as a reference to section 30.2(d) of it.
Pension commencement
94(1) Where a person becomes entitled to receive a
pension under section 47(1) and does not postpone commencement of that pension,
the effective date of the commencement of the pension is the day after
termination.
(2) Where
a person becomes entitled to receive a pension under section 50 or 52, section
81(2) applies.
(3) Where
a person becomes entitled to receive a pension under section 72(d) and does not
postpone commencement of that pension, the effective date of the commencement
of the pension is the latest of
(a) the
date indicated in the application for the pension,
(b) the
day of receipt of the application by the Minister, and
(c) the
day after the person reaches the date referred to in section 72(d).
(4) Section
81(4) applies.
(5) Section
81(5) applies.
(6) The
effective date of the commencement of a pension under section 64(1)(a)(i) is
the day following the death of the deceased.
Commencement of
guaranteed term of years
95 Section 82 applies.
Requirement of
evidence
96 Section 83 applies, with references in it
to section 41 being taken as references to section 52.
Transfer of pensions
under reciprocal agreements
97(1) Section 84(1) applies.
(2) A
reciprocal agreement entered into, made or amended after commencement must be
consistent with the Plan and provide
(a) for
the transfer of the pension entitlements covered by section 84(2)(a) (based on
all pensionable service, whenever accumulated), subject to the maximum of the
aggregate of the maximum allowed by section 84(2)(a) and in addition and if
applicable, in the case of a person falling within section 72(a), the employee
contribution excess determined as of the date when the application for the
transfer is received by the Minister, and
(b) the
matters specified in section 84(2)(b), (d), (e) and (f).
(3) Section 84(3) applies.
AR 370/93 s97;149/98
Prohibition against
certain reciprocal transfers of service
98 Section 85 applies.
Beneficiaries
99 Section 86 applies, with the reference in
subsection (4) of it to Subdivision A being taken as a reference to Subdivision
B.
Method of payment of
pensions
100 Section 87 applies, with the references
in subsection (5) of it to section 38(1)(c)(ii) and (d) being taken as
references to section 49(1) as it incorporates those enactments.
Idem - conversion
following death
101 Section 88 applies.
Suspension of
pensions on re-employment
102(1) Where a person who is receiving a pension
before reaching the age of 65 years in respect of his own pensionable service
becomes engaged to work for an employer or for an employer within the meaning
of the related plan and his hours of work are more than 1/2 of what those hours
would be if he were employed on a full‑time basis under this Plan or under
the related plan, as the case may be, his pension is suspended.
(2) If
the person is making current service contributions under this Plan in respect
of his subsequent work and elects to repay the amounts he was paid while in
receipt of a pension and, if applicable, any pension under the related plan,
based on all service whether accumulated before or after commencement, together
with interest on those amounts from the date of his last becoming a
participant, then his pensionable service and combined pensionable service in
the related plan, respectively, before his last becoming a participant and his
subsequent pensionable service shall be taken into account, as applicable, in
determining his entitlements in relation to a pension and in calculating his pension
on his again terminating, but if the person elects not to repay those amounts,
he is entitled, on his again terminating, to an additional benefit based on his
pensionable service subsequent to his latest work engagement.
(3) If
the person is making current service contributions under and within the meaning
of the related plan in respect of his subsequent work and elects to repay the
amounts he was paid while in receipt of a pension and, if applicable, any
pension under the related plan, based on all service whether accumulated before
or after commencement, together with interest on those amounts from the date of
his last becoming a participant of the related plan, then his pensionable
service and combined pensionable service in the related plan, respectively,
before his last becoming a participant of the related plan and his subsequent
combined pensionable service in the related plan shall be taken into account,
as applicable, in determining his entitlements in relation to a pension and in
calculating his pension on his again terminating.
(4) This
section does not apply to a person after the end of the year in which he
attained the age of 71 years.
(5) A
person is deemed, for the purposes of this section, to reach the age of 65
years
(a) on
June 30 immediately following attainment of the age of 65 years in the case of
persons whose appointment date was after June 30, 1966, or
(b) on
August 31 immediately following attainment of that age in the case of persons
whose appointment date was before July 1, 1966.
Part 6
Miscellaneous
Interest chargeable
105(1) Where the Plan provides for the charging of
interest, interest shall be charged at the rate of 4% per annum compounded semi‑annually
up to commencement.
(2) Where
a provision of these plan rules provides for the charging of interest after
commencement and does not provide for a specific rate, interest shall be
charged at the rate that is calculated on and as of the first day of the fiscal
year on the basis of the average of the yields of 5‑year personal fixed
term chartered bank deposit rates maintained by Statistics Canada as CANSIM
Series B 14045, over the most recent 12‑month period for which the rates
are available and, where that rate results in a fraction of 1% that is
expressed otherwise than as a multiple of a full 1/10 of 1%, rounded downwards
to the next full 1/10 of 1%.
(3) Where a provision of these plan rules provides
for the charging of interest at the financing rate, interest shall be charged
at the rate that is equal to the nominal interest rate per annum, compounded
annually, used in the calculation of actuarial reserve amounts.
AR 370/93 s105;258/98
Advance against
pension
106 Where there is a delay in processing a
pension beyond 30 days from pension commencement, the Provincial Treasurer may
advance money from the plan fund to the pensioner against the pension.
Actuarial formulas
107(1) The actuarial formulas to be used for the
purposes of the Plan or for particular provisions of the Plan are to be
certified by an actuary and approved in writing by the Minister for the
purposes of the Plan.
(2) The
actuarial formulas are exempt from the application of the Regulations Act.
Exercise of benefit
choice
108(1) A person wishing to exercise a choice in
relation to a benefit must do so by giving written notice to the Minister
indicating the choice.
(2) A
choice made, including a choice deemed to be made, in relation to a benefit is
irrevocable when, and is not irrevocable until, the benefit is received or
commences to be paid.
Prohibition against
assignment, etc.
109(1) A
person may not assign, charge, anticipate, give as security or surrender his
interest in a benefit or any of his rights under the Plan.
(2) For
the purposes of subsection (1),
(a) assignment
does not include
(i) an assignment under a matrimonial property order, or
(ii) an assignment by the legal representative of a deceased
individual on the distribution of the individual’s estate,
and
(b) surrender
does not include a reduction in benefits to avoid the revocation of the Plan’s
registration.
Overpayments and
deficiencies
110 Any overpayment of benefit paid or
underpayment of contribution payable is recoverable by the Minister, with
interest, as a debt due to the Plan.
Return of money
111(1) If the Minister finds that a person paid a
contribution that was not, or that was in excess of what was, payable, the
Provincial Treasurer shall repay from the plan fund the contribution or the
excess, with interest.
(2) The
Provincial Treasurer shall return any contribution to the person who made it
where returning it is necessary to ensure compliance with the tax rules.
Retentions for debt
112(1) The Provincial Treasurer may withhold from any
benefit payable a sum sufficient to meet any amount by which the person
entitled to the benefit is indebted to the Plan.
(2) The
Provincial Treasurer shall apply any money withheld under this section in
satisfaction of the debt to the Plan.
Part 7
Transitional and Commencement Provisions
113 Repealed AR 175/95 s5.
Reduction of pension
for predecessor plan benefits
113.1(1) Notwithstanding Part 5, where a period was
recognized as pensionable service for pension benefits purposes under the
Retirement System or the Lethbridge Plan and that service is counted as
pensionable service under this Plan, the pension payable under this Plan shall
be reduced, according to the formula and in the amount determined by the
Minister, by the amount of any pension benefits payable under the Retirement
System or the Lethbridge Plan.
(2) Benefits
arising under the Universities Academic Pension Act (repealed in 1985)
from a waiver benefit under a disability plan may be deducted, according to the
formula and in the amount determined by the Minister, from a pension payable
under this Plan.
(3) Pension
payments being made under Part I or annuity payments being made under Parts II,
III and V of the University of Alberta Plan as at June 30, 1978 shall be deemed
to be pensions payable under the Plan and are payable in accordance with the
terms of the type of pension or annuity chosen at the time the pension or
annuity payments commenced under the University of Alberta Plan.
(4) Notwithstanding
subsection (3), persons in receipt of a pension pursuant to section 38(3) of
the Universities Academic Pension Act (repealed in 1985) immediately
before the commencement of this section shall continue to receive that pension
under the Plan.
(5) Division
4 of Part 5 applies to pensions and annuities payable under this section.
Transitional - prior
service provisions
114(1) Notwithstanding
anything in Part 3, a person is regarded as having made the arrangements to
purchase prior service under and within the meaning of the former Act if he
made an application pursuant to section 7 of the Universities Academic
Pension Plan Regulation (Alta. Reg. 315/85) before commencement or, in the
case of leave without pay that ended at any time within the 7 months prior to
commencement, within 7 months of the end of that leave period, and he commences
to comply with section 8 and, if applicable, section 9 of that Regulation
expeditiously after commencement or the end that leave, as the case may be, as
if those provisions were still in force.
(2) Where
a person, immediately before the commencement of section 14, was performing
service in the form of leave without pay that continued as leave without salary
after that commencement, that person remains entitled to purchase that service
as prior service under and within the meaning of the former Act until 7 months
after the end of the leave period and, if he does so, that person and, if
applicable, the employer continue to be liable to make contributions in respect
of that leave on the same basis, including that rate of interest, that applied
immediately before that commencement, as if the former Act were still in force.
(3) Where
a person, immediately before the commencement of section 14, was performing
service in the form of leave with partial pay or educational leave that
continued as leave with partial salary or educational leave after that commencement,
that person remains entitled to purchase that service and he and, if
applicable, the employer continue to be liable to make contributions in respect
of that leave on the same basis, including the rate of interest, that applied
immediately before that commencement, as if the former Act were still in force.
(4) Section
26 applies where subsection (1) or (2), or, to the extent that it deals with
prior service within the meaning of the former Act, subsection (3), is met.
Transitional ‑
spousal protection
115(1) Section 37(3)(a) is to be read as if “or an
effective statutory declaration by that person made under section 24 of the
former Act before its repeal” were added at the end of that clause, and section
48(3) is deemed to read accordingly.
(2) Without
affecting the application of section 37(4) or section 48(4), as it incorporates
section 37(4), subsection (1) ceases to have any force 90 days after
commencement.
