National Defence and the Canadian Forces
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Backgrounder
Modernizing the CFSA : Streamlining the Management of Pension Arrangements
BG-03.023 - May 15, 2003
In addition to introducing substantive policy changes, it is also considered prudent to use this legislative amendment opportunity to propose changes that would make the overall management of the Canadian Forces pension plan more efficient.
There has been a general trend in the Federal Government over the last several decades to deal with technical or purely administrative matters through regulations. This regulatory process allows for more direct input, specific technical expertise and more effective stakeholder consultation. Furthermore, the regulatory process also provides greater flexibility, especially in technical or administrative areas where changes in arrangements are more likely to be required, to more quickly and easily accommodate future requirements, as appropriate.
In keeping with this, examples of where such efficiencies could be introduced is with the counting and buying back of past service and the cashing out of small pensions.
Regulatory authority is also being sought to adapt the Regular Force pension provisions to Reserve members who serve on a full-time basis for extended periods of time. This kind of regulatory adapting power was included when the Public Service Superannuation Act was amended to extend coverage for part-time federal public servants.
As far as the actual administration of the pension plan is concerned, it is proposed that the Minister of National Defence be given authority to deal with potential problems or disputes, which involve erroneous advice or administrative error.
The proposed legislation would also provide a mechanism for individuals who believe they have been denied entitlement under the Plan to request a review of their circumstances. This would assure individuals there could be a second look at their case.
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