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, 2003.
Respectfully submitted,
The paper version was signed by Reg Alcock
President of the Treasury Board
This is the 33rd 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 Acts or regulations listed in the Appendix, as at March 31, 2003.
The original Supplementary Retirement Benefits 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 2003 was 1.6 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 $7.5 million.
The total amount paid under the Act was $28.3 million, of which $119,337 was charged to the Account; the remaining $28.2
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 $90.1 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, 2003, there were 1,042 contributors to the Account and 2,252 beneficiaries.
Appendix
The Supplementary Retirement Benefits Act applies to pensions or allowances payable under the following Acts
or Regulations:
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
Table 1
Supplementary Retirement Benefits Account (in thousands of dollars) |
|
Balance on March 31, 2002
|
82,763
|
Receipts
|
|
Contributions
|
|
- Members
|
1,771
|
- Government
|
1,736
|
Interest
|
3,982
|
Total Receipts
|
7,489
|
Payments
|
|
Annuities
|
28,342
|
Less charges to the Consolidated
Revenue Fund in accordance with subsection 8(2) of the Act
|
28,223
|
- Net Payments
|
119
|
Balance on March 31, 2003
|
90,133
|
|
Note
Totals may not add up due to rounding.
Table 2
Supplementary Retirement Benefits Account
Details of Receipts and Payments 2002-03 (in thousands of dollars) |
|
Judges
|
Parliament
|
Others
|
Total
|
|
|
|
|
|
Balance at March 31, 2002
|
82,241
|
76
|
446
|
82,763
|
|
|
|
|
|
Receipts
|
|
|
|
|
Contributions
|
|
|
|
|
- Members
|
1,775
|
|
15
|
1,771
|
- Government
|
1,721
|
|
16
|
1,736
|
Interest
|
3,958
|
4
|
21
|
3,982
|
|
|
Total Receipts
|
7,434
|
4
|
52
|
7,489
|
|
|
|
|
|
Payments
|
|
|
|
|
Annuities1
|
|
80
|
40
|
119
|
Return of Contributions
|
|
|
|
|
|
|
Total Payments
|
|
80
|
40
|
119
|
Increase (Decrease)
|
7,434
|
(76)
|
12
|
7,370
|
|
|
|
|
|
Balance at March 31, 2003
|
89,675
|
-
|
458
|
90,133
|
|
1. In addition to these charges to the Account, $28,223,255 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, 2003 (in thousands of dollars) |
Fiscal Years
|
Members
Contributions
|
Government
Contributions
|
Other
Receipts
|
Interest
|
Total
Receipts
|
Apr. 1, 1970-
Mar. 31, 1993
|
1,731,128
|
1,478,374
|
256,508
|
3,379,474
|
6,845,483
|
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
|
2001-02 |
1,313
|
1,312
|
-
|
3,932
|
6,558
|
2002-03 |
1,771
|
1,736
|
-
|
3,982
|
7,489
|
|
|
Totals
|
1,746,457
|
1,498,670
|
256,508
|
3,412,762
|
6,914,397
|
|
Table 3 (Continued)
Supplementary Retirement Benefits Account
Comparative Data - April 1, 1970, to March 31, 2003 (in thousands of dollars) |
Fiscal Years
|
Annuities
|
Return of
Contributions
|
Transfers
|
Charges to
the Account
|
Yearly Net
Increases
(Decrease)
|
Apr. 1, 1970-
Mar. 31, 1993
|
9,583,734
|
198,253
|
5,957,7541
|
873,170
|
32,599
|
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
|
4
|
-
|
9,229
|
(1,438)
|
2001-02 |
27,230
|
5
|
-
|
35
|
6,523
|
2002-03 |
28,342
|
-
|
-
|
119
|
7,370
|
|
|
|
Totals
|
9,987,7132
|
198,282
|
5,957,754
|
884,540
|
|
|
1. Includes $5,939,714 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 2002-03 under
subsection 8(2) of the Act.
Note
Totals may not add up due to rounding.
|