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1 |
PURPOSE |
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1.1 |
The purpose of this bulletin is to provide Personnel Offices with information regarding recent changes to the Public Service Superannuation Act (PSSA). |
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1.2 |
Superannuation Administration Manual (SAM) Special Bulletin 1992-005 described proposed changes to the PSSA. |
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1.3 |
This bulletin described changes to the following provisions which took effect from April 20, 1993. |
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2 |
ANNUAL ALLOWANCE (LESS THAN 5 YEARS SERVICE) |
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2.1 |
Normally, an employee with less than 5 years of pensionable service to his credit is entitled to a return of pension contributions at termination. However, in the specific circumstances described in SAM Chapter 4.2.1 and 4.2.2 , an employee with less than 5 years of pensionable service under the PSSA may opt for a continuing benefit entitlement. |
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2.2 |
Circumstances where an employee with less than 5 years service may have a pension entitlement include: employees with 30 or more years under the CFSA or RCMPSA who cannot accumulate 5 years under the PSSA, employees who transfer out under a Reciprocal Agreement and have a period of less than 5 years which is non-transferable, and employees who become CFSA/RCMPSA contributors and have a period of service of less than 5 years witch is not countable under those plans. |
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2.3 |
Prior to April 20, 1993, an employee who met the above conditions was entitled to i) an immediate annuity, or the greater of a cash termination allowance or a return of contribution, if he was age 60 at termination or was disabled ; or ii) if less than age 60 at termination, to a return of contributions or a Deferred Annuity payable at age 60. Employees in this situation could not opt for an Annual Allowance. |
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2.4 |
Employees in this situation will now be able to opt for an Annual Allowance subject to the reductions outlined in SAM 4.5.2. The applicable reduction is the Formula 1 reduction, that is 5% X (60 minus age to the nearest 1/10 of a year). |
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3 |
COMMON-LAW SPOUSE/CO-HABITATION PERIOD |
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3.1 |
Chapter 5.5.7 of SAM describes some of the requirements that must be met when a common-law spouse is claiming survivor benefits. The Treasury Board may deem a person to be the "surviving spouse" where that person has been residing with and publicly represented by the contributor as the spouse for a period immediately prior to the contributor's death. Prior to April 20, 1993, the co-habitation period was either one or three years depending on the marital status of the individuals involved. |
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3.2 |
Effective from April 20, 1993, the period of co-habitation required to establish a claim to benefits was standardized to one year regardless of the marital status of the individuals involved. |
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3.3 |
The responsibility for preparing cases for consideration by the Treasury Board remains with the Superannuation Branch. |
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4 |
PROCEDURESAnnual Allowances: |
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4.1 |
Employees with less than 5 years of pensionable service as described in 2.2 above should be advised that their benefit options include an Annual Allowance, subject to the appropriate reduction. Common-law definition: |
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4.2 |
Where a common-law claim is being prepared on behalf of a former employee, the Personnel Office should be aware of the standardization of the co-habitation period to one year immediately prior to the contributor's death. Other changes: |
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4.3 |
Further Bulletins will be issued to advise Personnel Offices of the effective dates of the other proposed changes outlined in Special Bulletin 1992-005. |
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5 |
INQUIRIES |
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5.1 |
Inquiries regarding the content of this bulletin should be directed to Marg Bambrick at (819) 956-2058, or Adèle Gervais (819) 956-2096 or Judy Thorne (819) 956-2064 Compensation Advisory Group. |
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5.2 |
Inquiries regarding individual cases should be directed to the Supperannuation Branch. |
