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1 |
PURPOSE |
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1.1 |
The purpose of this bulletin is to provide Personnel Offices with additional information regarding the changes that will be to the Public Service Superannuation Act (PSSA), paragraph 5(1)(j), as a result of Bill C-55. |
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1.2 |
This bulletin also contains further information, regarding the amalgamation of the Public Service Superannuation (PSS) Account and the Supplementary Retirement Benefits (SRB) Accounts, as described in SAM Special Bulletin 1992-5. |
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2 |
BACKGROUND |
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2.1 |
Paragraph 5(1)(j), of the PSSA, provides that employees who are age 65 and over and in receipt of retirement benefits from CPP/QPP, are prohibited from contributing to the PSS Account. Employees age 65 and older, who are not in receipt of CCP/QPP retirement benefits, continue to contribute to the PSS Account (providing, of course, PSSA eligibility criteria continue to be met). |
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3 |
POLICY |
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3.1 |
As described in Special Bulletin 1992-5, Section 3.1(iii), once the repeal of this provision takes effect, employees who reach age 65 will simply continue to contribute to the PSS Account, regardless of whether or not they are in receipt of CPP/QPP benefits. |
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3.2 |
In addition, employees who have ceased to contribute because of 5(1)(j) will be given an opportunity to recommence PSS Account contributions, providing they purchase the service between the time they ceased contributing because of 5(1)(j) and the date contributions recommence. |
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3.3 |
As well, pensioners who were affected by the provision will be given an opportunity to purchase the previously non-pensionable service, and appropriate adjustments will be made to their pensions |
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4 |
PROCEDURES |
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4.1 |
Departments will be provided with a list of employees who are over age 65 and who have NOT ceased to contribute to the PSS Account. These employees should be advised that the provision preventing them from accruing PSSA benefits, while in receipt of CPP/QPP retirement benefits, will be removed in the near future. |
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4.2 |
Affected employees should be made aware of these pending changes, since the information may have some bearing on the decision to defer CPP/QPP retirement benefits. |
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4.3 |
An employee over age 65 who, at this time, chooses to receive CPP/QPP retirement benefits will continue to be subject to paragraph 5(1)(j) and, therefore, must cease to contribute to the PSS Account. However, as noted, all employees so affected will be given an option to recommence PSS Account contributions once the appropriate regulations take effect, providing they purchase the service between the time they ceased contributing because of paragraph 5(1)(j) and the date contributions recommence. |
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4.4 |
The cost to purchase past service will be determined by regulations. |
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4.5 |
The time limit and procedures for electing will also be set by regulations. |
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4.6 |
Further information will be made available regarding the cost of the elective service and the effective dates of these changes once the regulations take effect. |
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5 |
PSSA/SRBA MERGER |
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5.1 |
As described in Special Bulletin 1992-5, the PSS and SRB Account were merged retroactive to April 1, 1991. |
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5.2 |
Section 4.8.4 of the Superannuation Administration Manual (SAM) advises that in the case of an employee who is in receipt of a CFSA or RCMPSA pension, and who receives a Return of Contributions (ROC) under the PSSA, the SRBA portion of return must be transferred to the CFSA or RCMPSA as appropriate. With the merger of the Accounts, the transfer is no longer necessary. Any ROC paid in such cases should include a return of both the PSS Account and former SRB Account contributions. |
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5.3 |
Prior to the merger of these accounts, the payment of a 5 year Minimum Benefit, or of a Cash Termination Allowance might have included a refund of the balance of the SRB Account contributions. Since the accounts have now been merged, there is no longer a separate refund of the SRB Account contributions. |
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6 |
INQUIRIES |
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6.1 |
Any inquiries regarding the content of this Bulletin may be directed to Diane Perrier at (819) 956-2094, or Marg Bambrick at (819) 956-2058, of the Compensation Advisory Group. |
