COMPENSATION DIRECTIVE : 1994-011

1

PURPOSE

1.1

The purpose of this directive is to provide information concerning the above-noted subject.

2

PROCEDURES/INSTRUCTIONS

2.1

Active employees who become age 65 on or after September 9, 1993 must now continue to contribute to the Public Service Superannuation Account (PSSA) at the integrated rate regardless of whether they are in receipt of Canada Pension Plan/Quebec Pension Plan (CPP/QPP) benefits (Superannuation Administration Manual/Special Bulletin 1993-8 dated September 10, 1993).

2.2

Prior to September 9, 1993, Departments were notified by the Superannuation Directorate that PSSA and CPP/QPP deductions were to cease when an employee became entitled to CPP/QPP benefits. Since the Directorate will no longer provide this notification, Personnel Offices may not be informed that an employee is in receipt of CPP/QPP benefits. As a result, the CPP/QPP deductions may not be stopped for these employees.

2.3

Personnel Offices should advise all their employees who are age 65 and over to inform them as soon as they start to receive pension benefits from CPP/QPP. Form DSS 2265 (Pension Information Release) can be used to solicit this information. Upon receipt of this notification to the effect that the employee is in receipt of CPP/QPP benefits, the Personnel Officer must immediately advise the Paying Office to stop the CPP/QPP deduction (PPIM Vol 1, Chapter 3).

2.4

The CPP/QPP deduction must be stopped effective from the month immediately preceding the month in which the employee starts to receive CPP/QPP benefit payments.

2.5

In cases where a refund of over-deducted CPP/QPP contributions may be required, there are two possible methods of payment:

1. Follow the regular refund procedures in the PPIM, or
2. Tell the employee that the refund will be handled via his/her income tax return at year-end.

3

INQUIRIES

3.1

Any inquiries on the foregoing may be directed to Michel David at (819) 956-2064, or Adèle Gervais at (819) 956-2058 of the Advisory Services Division.

3.2

Questions regarding individual cases should be directed to the Superannuation Branch at (506) 533-5700 for English calls and (506) 533-5767 for French calls.