COMPENSATION DIRECTIVE: 2004-007

1

PURPOSE

1.1

The purpose of this directive is to advise the compensation advisors of recent system enhancements made to the PSS to calculate an adjusted pension benefit where a pension benefits division has been finalized. These system changes came into effect on May 5, 2004.

1.2

These enhancements will improve the delivery of valued service to clients both immediately, and in future endeavors to centralize within Public Works and Government Services Canada (PWGSC) all services related to pension benefits divisions.

1.3

In this text, use of the masculine is generic and applies to both men and women.

2

POLICY

2.1

In accordance with the Pension Benefits Division Regulations, once a division of pension benefits has taken place, the member's pension entitlement or benefit must be adjusted to reflect the fact that a portion of the benefit has been paid out.

3

PROCEDURES

3.1

Pension Estimate

3.1.1

The Pension Calculation "SNCAL" screen of the PSS has been modified to calculate an adjusted pension where a pension division has been finalized. Therefore, for pension accounts which have an indicator code "F" in the "Pension Division Field", the PSS will automatically calculate an adjusted pension benefit using the finalized pension division information from the Pension Benefits Division System (PBDS). A message will be displayed on the Pension Calculation "SNCAL" screen indicating that the pension benefit has been adjusted. Please note that in these situations, only the adjusted benefits will be displayed.

3.2

Transfer Value

3.2.1

The Transfer Value Calculation "SNTVC" screen of the PSS has been modified to calculate an adjusted transfer value (TV) where a pension division has been finalized. Therefore, for those accounts which have an indicator code "F" in the "Pension Division Field", the PSS will automatically calculate an adjusted TV benefit using the finalized pension division information from the PBDS. A message will be displayed on the Transfer Value Calculation "SNTVC" screen indicating that the TV benefit has been adjusted. Please note that in these situations, only the adjusted TV will be displayed.

3.2.2

In addition, once the calculation of the adjusted TV benefit has been performed, the pension division values used in the calculation will be displayed in the following fields: PBDA AVG. SALARY, PBDA REDUCTION, PBDA CPP/QPP and PBDA RCA.

4

EXCEPTIONS

4.1

The PSS will NOT be able to perform the adjusted calculation on accounts which have more than one finalized (code "F") pension division or where the pension division was calculated with operational service information. For those situations, a message will be displayed indicating that the benefit was not adjusted. Compensation advisors should, in these cases, contact the Superannuation, Pension Transition and Client Services Sector.

5

INQUIRIES

5.1

Any inquiries on the information contained in this document should be addressed to your PWGSC Compensation Services Office.