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1 |
PURPOSE |
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1.1 |
The purpose of this bulletin is to provide information regarding the Pension Reform Legislation concerning the Marriage After Retirement (MAR) provision. |
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1.2 |
The legislation amending the Public Service Superannuation Act (PSSA) received Royal Assent on September 29, 1992. The regulations on the Marriage After Retirement provision became effective February 18, 1994. |
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2 |
POLICY |
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2.1 |
Prior to February 18, 1994, on the death of a pensioner, the spouse was entitled to a continuing survivor benefit, only if the marriage had taken place before the contributor had retired from the Public Service. |
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2.2 |
Effective February 18, 1994, a pensioner who married after retirement may complete an election to provide for spousal survivor benefits upon his death. This option is available to legally-married spouses; it does not apply to common-law relationships. |
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2.3 |
The election, which in most cases will be irrevocable, must be made and sent to Superannuation Directorate no later than one year after the later of February 18, 1994, the date of the marriage, the date the pensioner's benefits first become payable. |
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2.4 |
The pensioner's PSSA benefit is reduced when a MAR election is made. The reduction is required to cover the cost of the additional liability to the pension fund. The pensioner may choose one of three levels of spousal benefit coverage valued at approximately 30%, 40% or 50% of the pensioner's benefit. |
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2.5 |
An election will remain in effect for the duration of the marriage. Coverage would cease upon divorce or the death of the spouse. In those circumstances, the pensioner's benefit would be revised to delete the reduction due to the MAR election effective from the month following the date on which the event occurred. |
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2.6 |
An election for Spousal Benefit Coverage in cases of Marriage after Retirement may be revoked at the pensioner's request if, subsequent to the making of the election, the pensioner's benefits are subject to division pursuant to the anticipated Pension Benefits Division Act (not in force at this date). A recalculation will be performed automatically and a notice sent to the pensioner indicating the new spousal benefit coverage amount and the new pension reduction amount. The pensioner will have three months to choose to continue, revise or revoke this election. |
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3 |
PROCEDURES |
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3.1 |
Superannuation Directorate will advise pensioners of this new provision. Interested pensioners may obtain an estimated value of spousal benefit coverage and reduced pension entitlement by contacting Superannuation Directorate. |
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4 |
INSTRUCTIONS |
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4.1 |
Personnel Offices will not be involved in the application of the marriage after retirement (MAR) provision. However, for pre-retirement information purposes, they must be aware that the provision exists and have some basic knowledge of what it comprises. |
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5 |
REQUEST FOR INFORMATION |
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5.1 |
Any request for information on the content of this bulletin should be addressed to Michel David (819) 956-2064 or Adèle Gervais (819) 956-2058, Advisory Services Division, Compensation Services Directorate. |
