1

PURPOSE

1.1

The purpose of this bulletin is to clarify certain issues that have arisen since the enactment of the regulations allowing the reinstatement of transfer value service.

1.2

This bulletin details the responsibilities of the human resources offices in administering the new business processes resulting from these new regulations. Specifically, this will guide compensation advisors when dealing with eligible employees interested in this new option.

1.3

In this text, the use of masculine is generic and applies to both men and women.

2

BACKGROUND

2.1

Effective December 13, 2002, a current contributor under the Public Service Superannuation Act (PSSA) can reinstate prior periods of pensionable service for which transfer value payments were received.

2.2

Immediately after the new regulations were enacted, notices were sent to eligible employees and their compensation advisors advising them of the new option and the process involved in making an election.

3

POLICY

3.1

The new regulations provide a one-time opportunity for a contributor under the PSSA to reinstate a prior period of pensionable service for which he received a transfer value.

3.2

The election to reinstate the service must be made no later than one year after the later of:

i) the date of issue of the "Notification of Contributory Status" (PWGSC-TPSGC 2018 (PDF 101k)) informing the contributor that he has become a contributor under the PSSA; or

ii) December 13, 2002, which is the coming into force (CIF) date of the regulations.

3.3

Payments to reinstate transfer value service must be completed within 90 days following the date on which the "Election Form for Transfer Value Service" (PWGSC-TPSGC 2005 (PDF 552k)) is received by the Minister of Public Works and Government Services Canada (PWGSC), or a person designated by the Minister.

3.4

Apart from the exceptions identified in (a) and (b) of the Superannuation Administration Manual (SAM) Subsection 3.6.1, contributors will be required to undergo a medical examination. As with any other type of election, the prescribed time to secure this is not more than 90 days before or six months after making the election.

3.5

Refer to the SAM for additional information pertaining to the regulations governing the reinstatement of transfer value service.

4

PROCEDURES/INSTRUCTIONS

4.1

Notification of Eligibility

4.1.1

While the Superannuation Directorate was responsible for mailing the notices to eligible employees and their compensation advisors when the option to reinstate previous transfer value service was first introduced, the compensation advisors are now responsible for notifying all re-employed contributors who are eligible to exercise such an option.

4.2

Counselling and Requests for Estimates

4.2.1

Compensation advisors must redirect inquiries and requests for estimates of cost for transfer value reinstatement to the call center which is dedicated to handling such inquiries at the Superannuation Directorate. The telephone number of the call center is 1 800 883-1411. Inquiries or requests for estimates of cost for other types of elections should continue to be dealt with within the department's human resources section.

4.3

Receipt of Election

4.3.1

As indicated in SAM Special Bulletin 1997-001, employing departments are responsible for receiving elections on behalf of the Minister of PWGSC. This also applies to elections to reinstate transfer value service. Nevertheless, due to the time limits imposed on the receipt of the election payments, the usual 60-day deadline for compensation advisors to forward elections to the Superannuation Directorate does not apply to elections to reinstate transfer value service.

4.4

Documentation

4.4.1

Form PWGSC-TPSGC 2005

4.4.1.1

Although the "Election Form for Transfer Value Service" (PWGSC-TPSGC 2005 (PDF 552k)) is provided by the Superannuation Directorate to contributors requesting estimates of cost for the reinstatement of transfer value service, it is also available on the PWGSC Compensation Sector Web site at the following Internet address:

/compensation/forms/2005.pdf (PDF 552k)

Consequently, compensation advisors will be able to provide copies of the form to interested contributors.

4.4.1.2

Due to the time constraints involved in this type of election, compensation advisors must complete "Part C" of the form upon its receipt and immediately forward "Copy 1", with the employee's original signature, to the Superannuation Directorate. As indicated in subsection 4.3.1 of this bulletin, the usual 60-day deadline for compensation advisors to forward the completed election form to the Superannuation Directorate does not apply.

4.4.2

Form HC/SC 3312E

4.4.2.1

The Superannuation Directorate also provides the "Occupational Health Assessment Report" form (HC/SC 3312E) to contributors who are required to undergo a medical examination to validate their option to reinstate transfer value service. However, compensation advisors can also supply the form when requested by an employee.

4.4.3

Proof of age

4.4.3.1

Normally, the Superannuation Directorate should already have a document providing proof of age on file as it was required before the transfer value benefit was paid out. However, in instances where there has been a change of name (i.e. marriage, divorce, etc.), it is the responsibility of the compensation advisor to provide the Superannuation Directorate with the appropriate documentation to establish continuity of name at the time of the election.

5

ATTACHMENT

5.1

Attached is an information package prepared by the Superannuation Directorate providing information on the reinstatement of transfer value service.

6

INQUIRIES

6.1

Any request for information regarding the content of this document should be addressed to your PWGSC Compensation Services Office.

Original Signed by
R. Jolicoeur