Vol. 137, No. 17 — August 13, 2003

Registration
SOR/2003-286 25 July, 2003

PUBLIC SERVICE SUPERANNUATION ACT FINANCIAL ADMINISTRATION ACT

T.B. 830526 23 July, 2003

The Treasury Board, on the recommendation of the President of the Treasury Board, pursuant to paragraph 42.1(1)(u) (see footnote a)  and subsection 42.1(2) (see footnote b)  of the Public Service Superannuation Act and paragraph 7(2)(a) of the Financial Administration Act, hereby makes the annexed Portions of the Department of Health Divestiture Regulations.

PORTIONS OF THE DEPARTMENT OF HEALTH DIVESTITURE REGULATIONS

DEFINITIONS

1. The following definitions apply in these Regulations.

"Act" means the Public Service Superannuation Act. (Loi)

"new employer" means a person or body who, by reason of an agreement with Her Majesty in right of Canada, carries out the activities that were formerly carried out by a portion of the Department of Health. (nouvel employeur)

APPLICATION

2. (1) Subject to subsections (2) and (3), these Regulations apply to a person who, by reason of an agreement between Her Majesty in right of Canada and a new employer, ceases to be employed in the Public Service and becomes employed by the new employer.

(2) These Regulations do not apply to a person who subsequently becomes re employed by the new employer.

(3) Sections 4 to 9 do not apply to a person who has received a return of contributions pursuant to subsection 3(3) or has exercised an option in accordance with subsection 3(4).

APPLICABLE PROVISIONS

3. (1) Sections 12 to 13.01 of the Act only apply to a person on and after the date on which that person ceases to be employed by the new employer.

(2) A person, other than a person who exercises an option in accordance with subsection (4), is deemed, for the purposes of the application of section 13.01 of the Act, to be employed by a new employer as that term is defined in subsection 83(1) of the Public Service Superannuation Regulations.

(3) Despite subsection (1), if on or after September 1, 2002 a person would be entitled, were it not for these Regulations, to a return of contributions under subsection 12(3) of the Act, he or she may request, in writing, the payment of that entitlement within one year after the date on which the person ceases to be employed in the Public Service and becomes employed by the new employer.

(4) Despite subsection (1), if on or after September 1, 2002 a person would be entitled, were it not for these Regulations, to exercise an option under section 13.01 of the Act, he or she may exercise that option within one year after the date on which the person ceases to be employed in the Public Service and becomes employed by the new employer.

SURVIVOR AND CHILDREN

4. For the purposes of subsection 12(8) of the Act, the survivor and children of a person who dies while employed by the new employer are entitled to a death benefit equal to a return of contributions.

5. For the purposes of subsection 13(3) of the Act, the survivor and children of a person who dies while employed by the new employer are entitled to the allowances described in paragraphs 12(4)(a) and (b) of the Act, subject to the limitations set out in subsections 12(4) and (5) of the Act.

6. For the purposes of subsection 26(2) of the Act, a child who was born to or adopted by a person or became the stepchild of the person during the period that begins on the date on which the person ceases to be employed in the Public Service and that ends on the date on which that person ceases to be employed by the new employer is entitled to an allowance under Part I of the Act.

ADAPTATION OF SUBSECTION 10(5) OF THE ACT

7. For the purposes of subsection 10(5) of the Act, the one year period referred to in paragraph 10(5)(a) of the Act begins on the date on which the person ceases to be employed by the new employer.

ADAPTATION OF SECTIONS 12 TO 13.01 OF THE ACT

8. For the purposes of sections 12 to 13.01 of the Act, pensionable service includes the period of service with the new employer that begins on the date on which the person ceases to be employed in the Public Service and that ends on the date on which the person ceases to be employed by the new employer.

9. For the purposes of sections 12 and 13 of the Act, the age of a person when the person ceases to be employed in the Public Service is the age of the person on the day on which that person ceases to be employed by the new employer.

COMING INTO FORCE

10. These Regulations are deemed to have come into force on September 1, 2002.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

Divestiture regulations are required under the Public Service Superannuation Act to define the availability of pension benefits as of September 1, 2002 for employees of the Department of Health who transfer to a new employer on or after that date.

The regulations provide that eligible individuals can access a lump sum benefit such as a return of contributions or a transfer value on ceasing to be employed in the Public Service. Individuals who do not exercise an option for a lump sum benefit will retain the protection of their pension accruals under the Public Service Superannuation Act, as of the date they cease to be employed in the Public Service and their service with the new employer will count for benefit eligibility purposes under that Act.

Alternatives

The provisions of the pension arrangements for public service employees are specified in statute or regulations; therefore there is no alternative to the regulatory route.

Benefits and Costs

The application of these Regulations is limited to the affected individuals whose particular circumstances are described in the Regulations and would have a positive effect on affected plan members.

Consultation

There have been consultations on the pension arrangements for divestiture situations with the President of the Treasury Board's Advisory Committee on the Public Service Superannuation Act and the Department of Health.

These Regulations were pre-published in the Canada Gazette, Part I, on May 24, 2003. No comments were received.

Compliance and Enforcement

The normal legislative, regulatory and administrative compliance structures will apply, including internal audits, reports to Parliament and responses to enquiries received from Members of Parliament, affected plan members and their representatives.

Contact

Joan M. Arnold
Director
Pensions Legislation Development Group
Pensions and Benefits Sector
Treasury Board Secretariat
Ottawa, Ontario
K1A 0R5
Telephone: (613) 952-3119

Footnote a 

S.C. 1992, c. 46, s. 22

Footnote b 

S.C. 1992, c. 46, s. 22

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with hypertext language (HTML). Its content is very similar except for the footnotes, the symbols and the tables.

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