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1 |
PURPOSE |
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1.1 |
The purpose of this bulletin is to provide Personnel Offices with a reminder of the changes to the Supplementary Death Benefit (SDB) Regulations which were effective April 1, 1995. |
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2 |
BACKGROUND |
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2.1 |
The SDB Regulations were amended effective April 1, 1995 to allow employees who choose an immediate Annual Allowance to elect to retain their SDB coverage at the regular contribution rates. |
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2.2 |
It has been noted that a significant number of eligible SDB participants under the Public Service Superannuation Act who are eligible for, and opt to receive an immediate Annual allowance (reduced or unreduced) that is payable not later than 30 days after ceasing to be employed, have not elected to retain their SDB coverage at the regular contribution rates. |
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2.3 |
Personnel Offices must ensure that eligible employees are properly counselled and advised of their options, as the election for coverage must be made within one year prior to, or 30 days after terminating employment. The coverage is not automatic; an election must be made using the election form PWGSC-TPSGC 2017 "Election to continue SDB coverage" within the appropriate time limits. |
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2.4 |
Where, at termination, an employee has opted for a Deferred Annuity, he cannot elect for SDB coverage at the regular rates. However, if the employee then opts for an Annual Allowance is payable within 30 days of SOS, the employee is eligible to elect for SDB coverage at the regular rates. |
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2.5 |
Personnel Offices are asked to ensure that this information is incorporated into retirement planning programs and other retirement materials. |
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2.6 |
For additional and more detailed information regarding policies and procedures, please refer to Compensation Directive 1995-016 dated April 7, 1995. |
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3 |
INQUIRIES |
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3.1 |
Any request for information regarding the foregoing should be addressed to your PWGSC Client Services Centre as per Compensation Directive 1994-039 dated October 6, 1994. |
