Her Excellency the Right Honourable Adrienne Clarkson, C.C., C.M.M.,
C.D.
Governor General of Canada
Excellency:
I have the honour to submit to Your Excellency the Report on the
Administration of the Supplementary Retirement Benefits Act for the
Fiscal Year Ended March 31, 2002.
Respectfully submitted,
The paper version was signed by Lucienne Robillard
President of the Treasury Board
This is the 32nd annual report on the administration of the Supplementary
Retirement Benefits Act (the Act), which came into force on April 1,
1970.
Supplementary Benefits
The Act makes it possible to provide supplementary benefits for - that is, to
index - pensions or allowances payable under the following Acts or regulations,
as at March 31, 2002:
1. the Governor General's Act;
2. Part VI of the Members of Parliament Retiring Allowances Act,
R.S.C. 1970,
c. M-10;
3. the Lieutenant Governors Superannuation Act;
4. the Judges Act;
5. the Diplomatic Service (Special) Superannuation Act;
6. the Civil Service Superannuation Act;
7. the Defence Services Pension Continuation Act, R.S.C. 1970,
c. D-3;
8. the Royal Canadian Mounted Police Pension Continuation Act,
parts II and III, R.S.C. 1970, c. R-10;
9. subsection 15(2) of the Currency, Mint and Exchange Fund Act;
10. subsection 25(10) of the War Veterans Allowance Act;
11. the Annuities Agents Pension Regulations;
12. the Canadian Overseas Telecommunications Corporation Pension
Regulations;
13. the Canadian Arsenals Pension Regulations;
14. the Sydney Pilots Pension Regulations;
15. the National Harbours Board Pension Regulations;
16. the Canadian Wheat Board Pension Regulations;
17. the Atlantic Pilotage Authority Pension Regulations;
18. the Atomic Energy of Canada Ltd. Pension Regulations.
The original Act of 1970 provided for increases in pensions of a maximum of
2 per cent per year, based on the year of retirement going back to
1952. The increases were payable at the age of 60, or earlier under specific
conditions.
Effective January 1, 1974, the 2 per cent ceiling on increases
was removed and an annual increase in pensions reflecting the full increase in
the cost of living was permitted. The annual increase in pensions is payable in
January of each year. This increase is based on the percentage increase in
the average of the Consumer Price Index (CPI) for the 12 months ended on
the preceding September 30 over the CPI average for the 12 months
ended a year earlier.
The Act was amended in 1975 to permit interest to be paid on returns of
contributions. The interest rate is 4 per cent compounded annually.
Since 1982, the legislation has required that the increase payable in the
first year after a person retires be pro-rated according to the number of
complete months of retirement.
In 1983 and 1984, the increases were limited to 6.5 and
5.5 per cent, respectively, under amendments to the Act passed in
1983.
In 1992, the Act was amended because changes were being made to the statutes
governing four federal public-sector pension plans: the Public Service
Superannuation Act (PSSA); the Canadian Forces Superannuation Act (CFSA);
the Royal Canadian Mounted Police Superannuation Act (RCMPSA); and
the Members of Parliament Retiring Allowances Act (MPRAA). The
amendments meant that the Act did not apply to pensions payable under those
statutes. Consequently, each of those statutes now permits increases in these
pensions, which are determined as they were under the Act. The amendments to the
Act related to benefits payable under the PSSA, the CFSA and the RCMPSA were
made retroactive to April 1, 1991. Those related to the MPRAA became
effective on January 1, 1992. For more information on these amendments, see
the section titled "Funding."
The increase in pensions payable in January 2002 was
3.0 per cent.
Funding
The Act establishes an account known as the Supplementary Retirement Benefits
Account (the Account). Plan members who have not yet retired, except the
Governor General, contribute to this account. The government matches these
contributions.
Between April 1, 1970, and December 31, 1976, members contributed
0.5 per cent of their salary. Effective January 1, 1977, this
rate was increased to 1 per cent.
Interest on the Account is payable at the end of each quarter. It is
calculated monthly on the minimum balance in the Account at an interest
rate that represents the yield on outstanding Government of Canada bonds having
a term to maturity of five years, less one eighth of
1 per cent.
Before January 1, 1974, all supplementary benefits were charged to the
Account. Since that date, however, the benefits paid to a former contributor
have been charged to the Account only until they equal the total amount credited
to the Account for that person. Supplementary benefits paid in excess of that
total have been charged to the Consolidated Revenue Fund.
Under the 1992 amendments mentioned in the preceding section, the appropriate
portions of the Account were transferred to the superannuation accounts
established under the PSSA, the CFSA, the RCMPSA and the MPRAA. These
transfers greatly reduced the size of the Account.
Account Transactions and Membership Statistics
During the year, total receipts from contributors and the government,
including interest, amounted to $6.6 million. The total amount paid under
the Act was $27.2 million, of which $34,607 was charged to the Account; the
remaining $27.2 million was charged to the Consolidated Revenue Fund, in
accordance with subsection 8(2) of the Act. The balance in the Account
at the end of the year was $82.8 million.
Details of the transactions in the Account during the fiscal year appear in
tables 1 and 2.
Table 3 is a comparative statement of receipts and payments since the
Act came into force.
On March 31, 2002, there were 1,049 contributors to the Account and
2,144 beneficiaries. The number of contributors and beneficiaries over
the last 12 years appears in Table 4.
Table 1
|
Supplementary Retirement Benefits Account (in thousands of
dollars)
|
|
Balance on March 31, 2001
|
76,240
|
|
|
Receipts
|
|
Contributions
|
|
- Members
|
1,313
|
- Government
|
1,312
|
Interest
|
3,932
|
Total Receipts
|
6,558
|
|
|
Payments
|
|
Annuities
|
27,230
|
Less charges to the Consolidated
Revenue Fund in accordance with subsection 8(2) of the Act
|
27,195
|
- Net Payments
|
35
|
|
|
Balance on March 31, 2002
|
82,763
|
Note
Totals may not add up due to rounding.
Table 2
|
Supplementary Retirement Benefits Account
Details of Receipts and Payments 2001-02 (in thousands of dollars)
|
|
|
|
Parliament
|
Others
|
Total
|
|
Balance at March 31, 2001
|
|
75
|
76,165
|
76,240
|
|
|
|
|
|
Receipts
|
|
|
|
|
Contributions
|
|
|
|
|
- Members
|
|
|
1,313
|
1,313
|
- Government
|
|
|
1,312
|
1,312
|
Interest
|
|
1
|
3,931
|
3,932
|
Total Receipts
|
|
1
|
6,557
|
6,558
|
|
|
|
|
|
Payments
|
|
|
|
|
Annuities1
|
|
|
30
|
30
|
Return of Contributions
|
|
|
5
|
5
|
Total Payments
|
|
|
35
|
35
|
Increase (Decrease)
|
|
1
|
6,522
|
6,523
|
|
|
|
|
|
Balance at March 31, 2002
|
|
76
|
82,687
|
82,763
|
1. In addition to these charges to the Account, $27,195,228 was charged
to the Consolidated Revenue Fund under subsection 8(2) of the Act.
Note
Totals may not add up due to rounding.
Table 3
|
Supplementary Retirement Benefits Account
Comparative Data - April 1, 1970, to March 31, 2002 (in thousands of
dollars)
|
|
Fiscal Years
|
Members
Contributions
|
Government
Contributions
|
Other
Receipts
|
Interest
|
Total
Receipts
|
|
1970-1988
|
1,267,953
|
1,092,694
|
178,416
|
1,895,176
|
4,434,239
|
1988-89
|
141,037
|
115,333
|
24,281
|
397,643
|
678,294
|
1989-90
|
154,851
|
129,221
|
27,266
|
471,138
|
782,476
|
1990-91
|
164,794
|
138,648
|
26,545
|
610,418
|
940,405
|
1991-92
|
1,294
|
1,279
|
-
|
2,849
|
5,422
|
1992-93
|
1,199
|
1,199
|
-
|
2,250
|
4,647
|
1993-94
|
1,393
|
1,265
|
-
|
1,762
|
4,420
|
1994-95
|
1,239
|
1,304
|
-
|
3,848
|
6,391
|
1995-96
|
1,365
|
1,364
|
-
|
3,487
|
6,216
|
1996-97
|
1,408
|
1,406
|
-
|
2,980
|
5,794
|
1997-98
|
1,451
|
6,713
|
-
|
2,187
|
10,350
|
1998-99
|
1,703
|
1,704
|
-
|
3,502
|
6,909
|
1999-00
|
1,727
|
1,722
|
-
|
3,546
|
6,995
|
2000-01
|
1,959
|
1,770
|
-
|
4,062
|
7,791
|
Totals
|
1,743,373
|
1,495,622
|
256,508
|
3,404,848
|
6,900,349
|
|
Fiscal Years
|
Annuities
|
Return of
Contributions
|
Transfers
|
Total
Payment
|
Yearly Net
Increases
(Decrease)
|
|
1970-1988
|
6,260,815
|
130,456
|
10,923
|
515,495
|
3,918,744
|
1988-89
|
979,348
|
21,726
|
2,097
|
94,809
|
583,485
|
1989-90
|
1,069,653
|
23,589
|
2,207
|
119,523
|
662,953
|
1990-91
|
1,175,979
|
22,466
|
2,813
|
143,098
|
797,307
|
1991-92
|
47,457
|
16
|
5,939,7141
|
174
|
(5,934,466)
|
1992-93
|
50,482
|
-
|
-
|
71
|
4,576
|
1993-94
|
48,580
|
-
|
-
|
66
|
4,354
|
1994-95
|
48,357
|
-
|
-
|
46
|
6,345
|
1995-96
|
44,422
|
-
|
-
|
37
|
6,179
|
1996-97
|
42,997
|
8
|
-
|
1,688
|
4,107
|
1997-98
|
47,050
|
12
|
-
|
66
|
10,284
|
1998-99
|
40,568
|
-
|
-
|
45
|
6,864
|
1999-00
|
38,712
|
-
|
-
|
39
|
6,956
|
2000-01
|
37,721
|
-
|
-
|
9,229
|
(1,438)
|
Totals
|
9,932,1412
|
198,263
|
5,957,754
|
884,386
|
|
|
1. Represents the aggregate amounts transferred to the superannuation
accounts established under the PSSA, the CFSA, the RCMPSA and the MPRAA, as
explained earlier in this report.
2. Includes approximately $9.3 billion charged to the Consolidated Revenue
Fund from 1973-74 to 2001-02 under subsection 8(2) of the Act.
Note
Totals may not add up due to rounding.
Table 4
|
Supplementary Retirement Benefits Account
|
|
|
Public
Service
|
Canadian
Forces
|
RCMP
|
Parliament
|
Others
|
Total
|
|
Number of Contributors
|
|
|
|
|
|
At: March 31, 1991
|
308,977
|
87,319
|
19,209
|
404
|
706
|
416,615
|
March 31, 19921
|
-
|
-
|
-
|
-
|
753
|
753
|
March 31, 1993
|
-
|
-
|
-
|
-
|
796
|
796
|
March 31, 1994
|
-
|
-
|
-
|
-
|
833
|
833
|
March 31, 1995
|
-
|
-
|
-
|
-
|
854
|
854
|
March 31, 1996
|
-
|
-
|
-
|
-
|
902
|
902
|
March 31, 1997
|
-
|
-
|
-
|
-
|
913
|
913
|
March 31, 1998
|
-
|
-
|
-
|
-
|
928
|
928
|
March 31, 1999
|
-
|
-
|
-
|
-
|
954
|
954
|
March 31, 2000
|
-
|
-
|
-
|
-
|
981
|
981
|
March 31, 2001
|
-
|
-
|
-
|
-
|
996
|
996
|
March 31, 2002
|
-
|
-
|
-
|
-
|
1,049
|
1,049
|
Number of Beneficiaries
|
|
|
|
|
|
At: March 31, 1991
|
178,274
|
54,183
|
4,035
|
349
|
514
|
237,355
|
March 31, 19921
|
-
|
1,5912
|
1,2602
|
-
|
551
|
3,402
|
March 31, 1993
|
-
|
1,476
|
1,196
|
-
|
560
|
3,232
|
March 31, 1994
|
-
|
1,383
|
1,143
|
-
|
585
|
3,111
|
March 31, 1995
|
-
|
1,294
|
1,095
|
-
|
609
|
2,998
|
March 31, 1996
|
-
|
1,174
|
1,004
|
-
|
609
|
2,787
|
March 31, 1997
|
-
|
1,092
|
992
|
-
|
630
|
2,714
|
March 31, 1998
|
-
|
1,007
|
906
|
-
|
642
|
2,555
|
March 31, 1999
|
-
|
923
|
886
|
-
|
653
|
2,462
|
March 31, 2000
|
-
|
870
|
887
|
-
|
672
|
2,429
|
March 31, 2001
|
-
|
785
|
790
|
-
|
684
|
2,259
|
March 31, 2002
|
-
|
718
|
737
|
-
|
689
|
2,144
|
1. As explained earlier in this report, in the fiscal year 1991-92, the
Act ceased to apply to pensions payable under the PSSA, the CFSA,
the RCMPSA and the MPRAA.
2. Beginning with the fiscal year 1991-92, these beneficiaries are those
receiving pensions under the Defence Services Pension Continuation Act and
the Royal Canadian Mounted Police Pension Continuation Act.
|