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1998-003-e.html
Special Advice to Crown Corporations
1998-003
October 30, 1998
SUBJECT: Pension Adjustment Reversal (PAR)
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1
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PURPOSE
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1.1
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The purpose of this Special Advice is to advise that a form will be sent to you
shortly, from the Superannuation Directorate, requesting information on
employees who have terminated membership in the Public Service Superannuation
Plan after 1996 and have received a lump sum type benefit.
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1.2
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In this text, use of the masculine is generic and applies to both men and
women.
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2
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BACKGROUND
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2.1
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This Advice is further to Special Advice to Crown Corporations 1997-002 dated
June 27, 1997, in which Crown Corporations were requested to ensure that
records of employees' Pension Adjustment (PA) from 1990 onwards remain
available.
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2.2
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The Department of Finance advised in a News Release dated October 2, 1998, that
Pension Plan Administrators (Public Works and Government Services Canada) is
required to report a PAR amount to Revenue Canada and the former employees by
March 31, 1999.
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3
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Policy
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3.1
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Public Works and Government Services Canada (PWGSC) is required to report a PAR
to both Revenue Canada and the employee for individuals who terminated
membership after 1996 and have or will receive a lump sum benefit (e.g. return
of contributions, transfer, value, etc.) which results in the termination of
their membership in the plan.
Please note that
the date of termination of plan membership for PAR purposes is related to the
date the employee received his lump sum benefit payment and not the date of
termination of employment.
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3.2
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The PAR must be reported no later then March 31, 1999.
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4
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PROCEDURES/INSTRUCTIONS
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4.1
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The Superannuation Directorate will be forwarding to you, in the near future, a
form for each affected individual requesting that you provide them with PA
values for the affected employees for each year from 1990 to
termination.
Due to the deadlines imposed by the
Department of Finance, this information must be provided to the Superannuation
Directorate by November 30, 1998.
PWGSC is
responsible for the acquisition of all necessary data and also the calculation
of the PAR. They are also responsible for reporting, to Revenue Canada and each
former member of the Public Service Superannuation Plan, the PAR amount via the
prescribed Revenue Canada form T10 (PAR).
More
detailed information, via Superannuation Bulletin and other communication
vehicles, will be issued to you shortly on this subject. The purpose of this
Special Advice is mainly to advise you of the immediate requirement to supply
Superannuation Directorate with this data which will allow them to fulfill
their mandate.
Effective immediately, PA values
for all employees terminating their service in the Public Service and who will
be receiving a lump sum benefit must be reported to the Superannuation
Directorate when the employee is struck off strength (SOS). Until advised
otherwise, form PWGSC-TPSGC 2386 "Certification Notice - Pension Support
System" should be used to report these values.
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5
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INQUIRIES
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5.1
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Any request for information regarding the foregoing should be addressed to your
PWGSC Compensation Services Office.
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Original Signed by
P. Charko
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P. Charko
Director General
Compensation
Sector
Government Operational Service
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