SUMMARY

The Bill establishes an independent Public Sector Pension Investment Board with a mandate to invest employee and employer pension contributions made under the Public Service, Canadian Forces and Royal Canadian Mounted Police (RCMP) pension plans. New pension funds are created under each plan in respect of service after April 1, 2000.

The Bill also amends these plans so the employee contribution rate under each is set independently of those under the Canada Pension Plan. Employee rates under each plan are frozen until 2003, and set by Treasury Board subsequently, subject to limits. Existing plan surpluses are reconciled with current liabilities, and mechanisms for managing future surpluses are established. The three existing pension advisory committees are strengthened to ensure employee and pensioner input to the design, administration and funding of the plans, the term life insurance component of the Public Service plan is improved and survivor benefits are extended to an expanded class of beneficiaries. Several authorities are proposed to provide increased flexibility under the Canadian Forces and RCMP plans. Canada Post Corporation is directed to establish its own pension plan as of October 1, 2000, and transitional arrangements are provided in connection with this.

EXPLANATORY NOTES

Public Service Superannuation Act

Clause 53: (1) The definition ``misconduct'' in subsection 3(1) reads as follows:

``misconduct'' means wilful disobedience of the provisions of any statute or regulation governing the performance of official duties, the breach of which involves dismissal from the Public Service, malversation in office or abandonment of office;

(2) The definitions ``child'' and ``contributor'' in subsection 3(1) read as follows:

``child'' includes a natural child, stepchild or adopted child;

``contributor'' means a person required by subsection 5(1) to contribute to the Superannuation Account, and, unless the context otherwise requires,

      (a) a person who, having ceased to be so required to contribute to the Superannuation Account, continues to be employed in the Public Service, or has retired, and

      (b) for the purposes of sections 25, 27 and 28, a contributor under Part I of the Superannuation Act who has been granted an annual allowance under that Act or has died;

(3) New.

Clause 54: Subsection 4(1) reads as follows:

4. (1) Subject to this Part, an annuity or other benefit specified in this Part shall be paid to or in respect of every person who, being required to contribute to the Superannuation Account in accordance with this Part, dies or ceases to be employed in the Public Service, which annuity or other benefit shall, subject to this Part, be based on the number of years of pensionable service to the credit of that person.

Clause 55: (1) to (4) Section 5 reads as follows:

5. (1) Every person employed in the Public Service, other than

    (a) [Repealed, 1992, c. 46, s. 2]

    (b) an employee who is engaged for a term of six months or less or a seasonal employee, unless he has been employed in the Public Service substantially without interruption for a period of more than six months,

    (c) subject to section 5.2, a person who, immediately before the coming into force of this paragraph, was employed in the Public Service as a part-time employee within the meaning of this Act as it read at that time and who has been so employed substantially without interruption since that time,

    (d) an employee in receipt of a salary computed at an annual rate of less than nine hundred dollars, except any such employee who was a contributor under Part I of the Superannuation Act immediately prior to January 1, 1954 and has been employed in the Public Service substantially without interruption since that time,

    (e) persons in positions, as determined by the Governor in Council with effect from July 11, 1966, in the whole or any portion of any board, commission or corporation that has its own pension plan while that pension plan is in force,

    (f) an employee on leave of absence from employment outside the Public Service who, in respect of his current service, continues to contribute to or under any superannuation or pension fund or plan established for the benefit of employees of the person from whose employment he is absent,

    (g) an employee whose compensation for the performance of the regular duties of his position or office consists of fees of office,

    (h) an employee engaged locally outside Canada, or

    (i) a sessional employee, a postmaster or assistant postmaster in a revenue post office, a person employed as a clerk of works, a member of the staff of Government House who is paid by the Governor General from his salary or allowance or an employee of a commission that is appointed under Part I of the Inquiries Act and added to Part I of Schedule I, unless designated by the Minister individually or as a member of a class,

    (j) [Repealed, 1992, c. 46, s. 2]

is required to contribute to the Superannuation Account, by reservation from salary or otherwise, six and one-half per cent of his salary minus an amount equal to the amount he would be required to contribute under the Canada Pension Plan in respect of that salary if that salary, expressed in terms of an annual rate, were the total amount of his income for the year from pensionable employment as defined in that Act and that Act applied to his employment.

(2) Notwithstanding subsection (1), no person shall contribute to the Superannuation Account as required by that subsection in respect of periods of service in a category described in paragraph 3(2)(a) or (b) preceding June 29, 1984 and for which he did not make contributions to the Superannuation Account.

(3) Notwithstanding anything in this Part,

    (a) no person shall contribute to the Superannuation Account as required by subsection (1) after that person has to his credit a period of pensionable service totalling thirty-five years;

    (b) no person who has become entitled to or has been granted any superannuation or pension benefit of a kind specified in the regulations, payable

      (i) out of the Consolidated Revenue Fund or out of any account or fund in the accounts of Canada other than the Superannuation Account, or

      (ii) out of or under a superannuation or pension fund or plan pursuant to which contributions have been paid out of the Consolidated Revenue Fund in respect of employees engaged locally outside of Canada,

    shall contribute to the Superannuation Account as required by subsection (1) after that person has to his credit a period of pensionable service totalling thirty-five years less the number of years of service on which that superannuation or pension benefit is based;

    (c) no person shall, in respect of any period of service of that person before July 14, 1960, contribute to the Superannuation Account in respect of any amount received as salary at a rate in excess of fifteen thousand dollars a year; and

    (d) no person shall, in respect of any period of service of that person on or after the day on which this paragraph comes into force, contribute to the Superannuation Account in respect of any portion of that person's annual rate of salary that is in excess of such annual rate of salary as is fixed by or determined in the manner prescribed by the regulations.

(4) For the purposes of paragraphs (3)(a) and (b), the period of thirty-five years therein specified does not include any period of service specified in clause 6(1)(a)(iii)(C) or (E).

Clause 56: Subsections 5.1(1) and (2) read as follows:

5.1 (1) Notwithstanding subsection 5(1), a person employed in the Public Service is not required to contribute to the Superannuation Account under that subsection if that person is engaged to work on average less than twelve hours a week or such lesser number of hours a week as may be prescribed by the regulations.

(2) Notwithstanding subsection 5(1), a person employed in the Public Service who was so employed on the day on which this subsection comes into force and who, on the day immediately before that day, was not required to contribute to the Superannuation Account by reason of the person being a person described in paragraph 5(1)(j) of this Act, as it read on that immediately preceding day, is not required to contribute to the Account under that subsection in respect of any period of service on or after that day.

Clause 57: Section 5.2 reads as follows:

5.2 Every person referred to in paragraph 5(1)(c) who is engaged to work on average at least twelve hours a week or such lesser number of hours a week as may be prescribed by the regulations, may, subject to the regulations, elect to contribute to the Superannuation Account in accordance with subsection 5(1), beginning on the first day of the month following the month in which that person makes that election.

Clause 58: Subsection 5.3(2) reads as follows:

(2) Notwithstanding subsection 5(1), a contributor who makes an election under subsection (1) is not required to contribute to the Superannuation Account under subsection 5(1) in respect of the portion of the period to which the election relates.

Clauses 59: (1) to (4) The relevant portion of subsection 6(1) reads as follows:

6. (1) Subject to this Part, the following service may be counted by a contributor as pensionable service for the purposes of this Part:

    (a) non-elective service, comprising,

      (i) in the case of a contributor who, immediately prior to January 1, 1954, was a contributor under Part I of the Superannuation Act,

        . . .

        (B) the period during which he is required by subsection 5(1) to contribute to the Superannuation Account,

      (ii) in the case of a contributor who, immediately prior to January 1, 1954, was not a contributor under Part I of the Superannuation Act,

        (A) the period during which he is required by subsection 5(1) to contribute to the Superannuation Account,

        . . .

      (iii) with reference to any contributor,

        (A) any period of service that may be counted by that contributor as pensionable service pursuant to paragraph 29(a) or subsection 35(2), 40(11) or (13) or 40.2(9),

        . . .

        (D) any period of service in the Public Service before becoming a contributor under this Part during which he contributed to the Superannuation Account in the manner and at the rates set out in subsection 5(1), if that service is service for which he might have elected, under this Part or Part I of the Superannuation Act on subsequently becoming a contributor thereunder, to pay, but for which he failed so to elect within the time prescribed therefor, and

Clause 60: The relevant portion of subsection 7(1) reads as follows:

7. (1) Subject to subsection (1.1) and section 8, a contributor who is entitled under this Part to count as pensionable service any period of elective service specified in paragraph 6(1)(b) is required to pay, in respect thereof, the following:

    . . .

    (e) in respect of any period specified in clause 6(1)(b)(iii)(B), an amount equal to the amount that he would have been required to contribute had he, during that period, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rates set out in subsection 5(1) as it read on December 31, 1965, in respect of that period or that portion thereof, and

      (ii) where that period or any portion thereof was after 1965, in the manner and at the rates set out in subsection 5(1), in respect of that period or that portion thereof,

    in respect of a salary at the rate authorized to be paid to him on the most recent occasion on which he became a contributor under this Part, together with interest;

    (f) in respect of any period specified in clause 6(1)(b)(iii)(C), (D), (E), (F) or (J), an amount equal to twice the amount that he would have been required to contribute had he, during that period, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rates set out in subsection 5(1) as it read on December 31, 1965, in respect of that period or that portion thereof, and

      (ii) where that period or any portion thereof was after 1965, in the manner and at the rates set out in subsection 5(1), in respect of that period or that portion thereof,

    in respect of a salary at the rate authorized to be paid to him on the most recent occasion on which he became a contributor under this Part, together with interest;

Clause 61: (1) New.

(2) Subsection 8(8) reads as follows:

(8) Where any amount payable by a contributor into the Superannuation Account by reservation from salary or otherwise has become due, but remains unpaid at the time of his death, that amount, with interest at four per cent per annum from the time when it became due, may be recovered, in accordance with the regulations, from any allowance payable under this Part to the surviving spouse and children of the contributor, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof, and any amount so recovered shall be credited to the Superannuation Account and shall be deemed, for the purposes of the definition ``return of contributions'' in subsection 10(1), to have been paid into that Account by the contributor.

Clause 62: (1) The definitions ``cash termination allowance'' and ``return of contributions'' in subsection 10(1) read as follows:

``cash termination allowance'' means an amount equal to one month's pay for each year of pensionable service computed on the basis of the rate of salary authorized to be paid to the contributor

      (a) at the time he ceases to contribute to the Superannuation Account, or

      (b) in the case of a contributor who continues to be employed in the Public Service after having ceased to contribute to the Superannuation Account pursuant to paragraph 5(3)(a) or (b), at the time he ceases to be employed in the Public Service,

    minus an amount equal to the amount by which

      (c) the total amount the contributor would have been required to contribute to the Superannuation Account up to the time he ceases to be employed in the Public Service, other than interest or charges for payments by instalments, in respect of service after 1965, if he had contributed on the basis of the rates set out in subsection 5(1) as it read on December 31, 1965,

    exceeds

      (d) the total amount the contributor was required to contribute to the Superannuation Account up to the time he ceases to be employed in the Public Service, other than interest or charges for payments by instalments, in respect of service after 1965;

``return of contributions'' means a return of

      (a) the amount paid by the contributor into the Superannuation Account, but not including any amount so paid pursuant to subsection 24(6) of the Royal Canadian Mounted Police Superannuation Act,

      (b) any amount to his credit in the Retirement Fund that has been transferred to the Superannuation Account, and

      (c) any amount paid by him into any other account or fund, together with interest, if any, that has been transferred to the Superannuation Account,

    to the extent that the amount remains to his credit in the Superannuation Account, together with interest, if any, calculated pursuant to subsection (9);

(2) Subsections 10(3) and (4) read as follows:

(3) Where an annual allowance becomes payable under this Part to a surviving spouse or child, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, until the end of the month in which the recipient dies or otherwise ceases to be entitled to receive an annual allowance, and any amount in arrears thereof that remains unpaid at any time after the death of the recipient shall be paid to the estate of the recipient or, if less than one thousand dollars, as the Minister may direct.

(4) Where a person who is a contributor or surviving spouse has become entitled under this Part to an annuity or annual allowance the amount of which would be less than two per cent of the Year's Maximum Pensionable Earnings within the meaning of subsection 11(3) in respect of the year in which the request is made, there may be paid to that person, on request by that person, to the Minister in writing within three months from the day on which written notice is sent by the Minister informing the person of the amount of the annuity or annual allowance, an amount determined in accordance with the regulations to be the capitalized value of the annuity or annual allowance, which payment shall be in lieu of any other benefit under this Part and Part III.

(3) The relevant portion of subsection 10(5) reads as follows:

(5) Where, under section 12 or 13, a contributor is entitled to a benefit therein specified at his option,

    . . .

    (c) if, without having exercised or been deemed to have exercised the option, he becomes re-employed in the Public Service, he ceases to be entitled to exercise the option until such time as he ceases to be so re-employed, unless before that time he becomes, or would have become, but for subsection 5(3), a contributor under this Part, in which case the period on which that benefit was based, except any such period specified in clause 6(1)(a)(iii)(C) or (E), shall be counted as pensionable service for the purposes of subsection 6(1).

(4) Subsection 10(9) reads as follows:

(9) For the purposes of the definition ``return of contributions'' in subsection (1), interest shall be calculated in such manner as the regulations provide and on such balances as are determined in accordance with the regulations,

    (a) at the rate of four per cent, compounded annually, for any period before January 1, 1997; and

    (b) at the rates established in the regulations made under paragraph 44(1)(c), compounded quarterly, for any period on or after January 1, 1997.

(5) The relevant portion of subsection 10(10) reads as follows:

(10) Subject to Part II of the Garnishment, Attachment and Pension Diversion Act and to the Pension Benefits Division Act,

    . . .

    (b) a benefit to which a contributor, surviving spouse or child is entitled under this Part or Part III is not capable of being surrendered or commuted during the lifetime of that person and any transaction that purports to so surrender or commute any such benefit is void; and

Clause 63: Subsection 11(8) reads as follows:

(8) For the purposes of subparagraphs (1)(a)(ii) and (iii), any period of service during which a person is employed in the Public Service after that person has, pursuant to paragraph 5(3)(a) or (b), ceased to contribute to the Superannuation Account is deemed to be a period of pensionable service to the credit of that person.

Clause 64: (1) to (3) Subsection 12(1) reads as follows:

12. (1) The following provisions are applicable in respect of any contributor described in subsection (2):

    (a) if the contributor ceases to be employed in the Public Service, having reached sixty years of age, for any reason other than misconduct, or ceases to be employed in the Public Service by reason of having become disabled, he is entitled, at his option, to

      (i) an immediate annuity, or

      (ii) either a cash termination allowance or a return of contributions, whichever is the greater;

    (b) if the contributor ceases to be employed in the Public Service, not having reached sixty years of age, for any reason other than disability or misconduct, he is entitled, at his option, to

      (i) a deferred annuity,

      (ii) a return of contributions, or

      (iii) an annual allowance calculated and payable in the manner set out in clause 13(1)(c)(ii)(D);

    (c) if the contributor becomes disabled, not having reached sixty years of age but having become entitled to a deferred annuity, he ceases to be entitled to that deferred annuity and becomes entitled to an immediate annuity; and

    (d) if the contributor is dismissed from the Public Service for misconduct, he is entitled to a return of contributions.

(4) The relevant portion of subsection 12(2) reads as follows:

(2) For the purposes of subsection (1), a contributor described in this subsection is any contributor who

    . . .

    (b) having to the contributor's credit more than thirty-three years of service on which a superannuation or pension benefit of a kind described in paragraph 5(3)(b) is based, has to the contributor's credit less than two years of pensionable service;

(5) Subsection 12(4) reads as follows:

(4) On the death of a contributor who, at the time of his death, was entitled under subsection (1) to an immediate annuity or a deferred annuity, the surviving spouse and children of the contributor are entitled to the following allowances, computed on the basis of the product obtained by multiplying the average annual salary of the contributor during the period applicable, as specified in subsection 11(1) or elsewhere in this Part for the purposes of that subsection, by the number of years of pensionable service to his credit, one one-hundredth of the product so obtained being hereinafter referred to as the ``basic allowance``:

    (a) in the case of the surviving spouse, an immediate annual allowance equal to the basic allowance, and

    (b) in the case of each child, an immediate annual allowance equal to one-fifth of the basic allowance or, if the contributor died without leaving a surviving spouse or the spouse is dead, two-fifths of the basic allowance,

but the total amount of the allowances paid under paragraph (b) shall not exceed four-fifths of the basic allowance or, if the contributor died without leaving a surviving spouse or the spouse is dead, eight-fifths of the basic allowance.

(6) Subsections 12(6) to (8) read as follows:

(6) Notwithstanding subsection (8), on the death of a contributor who at the time of his death was a contributor described in paragraph (2)(a) or (b), the surviving spouse and children of the contributor are entitled to the annual allowances to which they would have been entitled under subsection (4) had the contributor, immediately prior to his death, become entitled under subsection (1) to an immediate annuity or a deferred annuity.

(7) On the death of a contributor who has, after having reached the age of forty-five years, received an amount as a cash termination allowance or as a return of contributions in respect of pensionable service prior to October 1, 1967, but who continued, on receiving the cash termination allowance or return of contributions, to have to his credit pensionable service after September 30, 1967 of less than five years, the surviving spouse and children of the contributor are entitled to the annual allowances to which they would have been entitled under subsection (4) had the contributor, immediately prior to his death, become entitled under subsection (1) to an immediate annuity or a deferred annuity.

(8) Subject to subsection (7), on the death of a contributor who, not having been a contributor under Part I of the Superannuation Act immediately before January 1, 1954, or, having been a contributor thereunder at that time but not having continued to be employed in the Public Service substantially without interruption thereafter, was employed in the Public Service at the time of the contributor's death, having to the contributor's credit less than two years of pensionable service, the surviving spouse and children of the contributor, in any case where the contributor died leaving a surviving spouse or a child less than eighteen years of age, are entitled, jointly, to a death benefit equal to a return of contributions.

Clause 65: (1) to (3) The relevant portion of subsection 13(1) reads as follows:

13. (1) The following provisions are applicable in respect of any contributor who has to the contributor's credit two or more years of pensionable service:

    (a) if the contributor ceases to be employed in the Public Service, having reached sixty years of age, for any reason other than misconduct, the contributor is entitled to an immediate annuity;

    . . .

    (c) if he ceases to be employed in the Public Service, not having reached sixty years of age, for any reason other than disability or misconduct, he is entitled to,

      (i) if at the time he ceases to be so employed he has reached fifty-five years of age and has to his credit not less than thirty years of pensionable service, an immediate annuity, or

      (ii) in any other case, at his option

        (A) a deferred annuity,

        (B) if at the time he ceases to be so employed he has reached fifty years of age and has to his credit not less than twenty-five years of pensionable service, an annual allowance, payable immediately on his exercising his option, equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying five per cent of the amount of that annuity by

          (I) fifty-five minus his age in years, to the nearest one-tenth of a year, at the time he exercises his option, or

          (II) thirty minus the number of years, to the nearest one-tenth of a year, of pensionable service to his credit,

        whichever is the greater,

        (C) if at the time he ceases to be so employed he has reached fifty-five years of age, has been employed in the Public Service on a full-time basis for a period of or for periods totalling at least ten years and does not voluntarily retire from the Public Service, an annual allowance, payable immediately on his so ceasing to be employed, equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying

          (I) five per cent of the amount of that annuity

        by

          (II) thirty minus the number of years, to the nearest one-tenth of a year, of pensionable service to his credit,

        except that in any such case the whole or any part of the reduction provided for by this clause may be waived by the Treasury Board, or

        (D) an annual allowance, payable

          (I) immediately on his exercising his option, in the case of a contributor fifty or more years of age, or

          (II) on his reaching fifty years of age, in the case of a contributor who exercises his option when he is less than fifty years of age,

        which allowance shall be equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying

          (III) five per cent of the amount of that annuity

        by

          (IV) sixty minus his age in years, to the nearest one-tenth of a year, at the time the allowance becomes payable;

    . . .

    (e) if he is dismissed from the Public Service for misconduct, he is entitled to

      (i) a return of contributions, or

      (ii) with the consent of the Treasury Board, the whole or any part specified by the Treasury Board of any benefit to which he would have been entitled under this subsection had he, at the time of his dismissal, ceased to be employed in the Public Service for a reason other than misconduct, except that in no case shall the capitalized value thereof be less than the return of contributions referred to in subparagraph (i).

(4) Subsections 13(2) and (3) read as follows:

(2) On the death of a contributor who, at the time of his death, was entitled under subsection (1) to an immediate annuity or a deferred annuity, or to an annual allowance payable immediately or on his reaching fifty years of age, the surviving spouse and children of the contributor are entitled to an annual allowance respectively, as described in paragraphs 12(4)(a) and (b) and subject to the limitations set out in subsections 12(4) and (5).

(3) On the death of a contributor who was employed in the Public Service at the time of the contributor's death, having to the contributor's credit two or more years of pensionable service, the surviving spouse and children of the contributor are entitled to the annual allowances to which they would have been entitled under subsection (2) had the contributor, immediately prior to the contributor's death, become entitled under subsection (1) to an immediate annuity or a deferred annuity or an annual allowance payable immediately or on reaching fifty years of age.

(5) Subsection 13(7) reads as follows:

(7) Where a contributor who has to the contributor's credit two or more years of pensionable service, having been a contributor on the day immediately before the coming into force of this subsection and having been a contributor continuously after that day, other than a contributor in respect of whom a payment is made into the Superannuation Account pursuant to an agreement entered into under section 40 or 40.2, ceases to be employed in the Public Service during the period ending two years after the coming into force of this subsection, the contributor is entitled, at the option of the contributor, to

    (a) a return of contributions, unless when the contributor ceases to be employed in the Public Service the contributor has reached forty-five years of age and has to the contributor's credit not less than ten years of pensionable service or is a contributor referred to in paragraph 13(1)(a);

    (b) a cash termination allowance, if the contributor ceases to be employed in the Public Service, not having reached sixty years of age, by reason of having become disabled, unless when the contributor ceases to be employed in the Public Service the contributor has reached forty-five years of age and has to the contributor's credit not less than ten years of pensionable service; or

    (c) any other benefit to which the contributor would otherwise be entitled under this section.

Clause 66: The relevant portion of subsection 13.03(1) reads as follows:

13.03 (1) Where a contributor is entitled to a return of contributions and the pensionable service to the contributor's credit includes a period in respect of which

    (a) a payment has been made into the Superannuation Account pursuant to an agreement entered into under section 40 or 40.2, and

    . . .

the return of contributions in respect of that period shall be paid in accordance with subsection 13.01(2).

Clause 67: Subsection 13.1(4) reads as follows:

(4) If a contributor who makes an election under subsection (1) is subsequently re-employed in the Public Service and required by subsection 5(1) to contribute to the Superannuation Account, the election is deemed to be revoked at the time determined in accordance with the regulations.

Clause 68: (1) The relevant portion of subsection 17(1) reads as follows:

17. (1) Where an air traffic controller employed in operational service on or after April 1, 1976 ceases otherwise than voluntarily to be employed in that service for any reason other than misconduct, the following provisions apply:

(2) Subsection 17(5) reads as follows:

(5) Where an air traffic controller employed in operational service on or after April 1, 1976 ceases to be so employed by reason of being dismissed from the Public Service for misconduct, he is entitled to

    (a) a return of contributions; or

    (b) with the consent of the Treasury Board, the whole or any part specified by the Treasury Board of any benefit to which he would have been entitled under subsection (1) or (2) had he, at the time of his dismissal, ceased to be employed in the Public Service for a reason other than misconduct, except that in no case shall the capitalized value thereof be less than the return of contributions referred to in paragraph (a).

Clause 69: Section 19 reads as follows:

19. Every person employed in operational service and required to contribute to the Superannuation Account under subsection 5(1) is, except in the circumstances described in subsection 5(3), required to contribute to the Superannuation Account by reservation from salary or otherwise, in addition to any other amount required under this Act, two per cent of his salary.

Clause 70: (1) and (2) The relevant portion of subsection 20(1) reads as follows:

20. (1) Operational service occurring on or after April 1, 1976 for which an election pursuant to section 6 has been made by a contributor or that may be counted by a contributor as pensionable service pursuant to subsection 40(11) may not be counted as operational service that is pensionable service for the purposes of sections 16 and 17 unless

    . . .

    (b) the contributor, at any time after he becomes employed in operational service but before he ceases to be employed in the Public Service, further elects to pay to the Superannuation Account in respect of that operational service an amount equal to the amount he would have been required to contribute had he, during that period, been required to contribute, at the rate of two per cent of his salary, together with interest within the meaning of subsection 7(2).

Clause 71: Section 21 reads as follows:

21. Where an air traffic controller is entitled to a benefit under section 16 or subsection 17(1), if he becomes re-employed in the Public Service without having exercised his option under section 16 or subsection 17(1) and is, or would but for subsection 5(3) be, required to contribute to the Superannuation Account, he ceases to be entitled to exercise the option until such time as he ceases to be so re-employed.

Clause 72: (1) The relevant portion of subsection 22(1) reads as follows:

22. (1) Where an air traffic controller who is receiving an annuity or an annual allowance under section 16 or subsection 17(1) or (5) is, or would but for subsection 5(3) be, required to contribute to the Superannuation Account on being re-employed in the Public Service

(2) and (3) Subsection 22(2) reads as follows:

(2) Where a contributor referred to in subsection (1), on ceasing to be re-employed in the Public Service, exercises his option under this Part in favour of a return of contributions, or is not entitled under this Part to any benefit other than a return of contributions,

    (a) the amount so returned shall not include any amount paid into the Superannuation Account to his credit at any time prior to the time when he became so re-employed; and

    (b) the benefit referred to in subsection (1) shall be restored to him.

Clause 73: Section 24.2 reads as follows:

24.2 Any person who is employed in operational service by the Correctional Service of Canada on or after the coming into force of this section and who is required by subsection 5(1) to contribute to the Superannuation Account is entitled, at the person's option on ceasing to be employed in the Public Service, in respect of the operational service that is pensionable service to the credit of that person, to an immediate annuity or annual allowance calculated in the manner prescribed by the regulations, in the circumstances and subject to the terms and conditions prescribed by those regulations, in lieu of any benefit to which that person is otherwise entitled under subsection 13(1) in respect of that service.

Clause 74: Subsection 24.4(1) reads as follows:

24.4 (1) Subject to subsection (2), every person who is employed in operational service by the Correctional Service of Canada on or after the coming into force of this section and who is required by subsection 5(1) to contribute to the Superannuation Account is, except in the circumstances described in subsection 5(3), required to contribute to the Superannuation Account by reservation from salary or otherwise, in addition to any other amount required under this Act, such percentage of the person's salary as is fixed by or determined in the manner prescribed by the regulations.

Clause 75: Section 25 and the heading before it read as follows:

Payments to Surviving Spouses, Children and Other Beneficiaries

25. (1) Where, in this Part, it is provided that the surviving spouse and children of a contributor are entitled jointly to a return of contributions, the total amount thereof shall be paid to the surviving spouse of the contributor except that

    (a) if at the time of the death of the contributor all of the children were eighteen years of age or over and at the time the payment is to be made the spouse is dead or cannot be found, the total amount shall be paid to the children in equal shares;

    (b) if at the time of the death of the contributor any of the children were less than eighteen years of age, and the contributor died without leaving a surviving spouse or at the time the payment is to be made the spouse is dead or cannot be found, the total amount shall be paid to the children in such shares as the Minister considers equitable and proper under the circumstances, or to any of them, as the Minister may direct;

    (c) if any of the children who were less than eighteen years of age at the time of the death of the contributor are living apart from the surviving spouse at the time the payment is to be made, the total amount shall be paid to the surviving spouse and the children so living apart in such shares as the Minister considers equitable and proper under the circumstances, or to the surviving spouse or any of the children so living apart, as the Minister may direct; and

    (d) if the contributor died without leaving any children and at the time the payment is to be made the spouse is dead or cannot be found, or if the contributor died without leaving a surviving spouse and at the time the payment is to be made all of the children are dead or cannot be found, the total amount shall be paid

      (i) if the contributor named his estate as his beneficiary or named another beneficiary under Part II and the beneficiary survives the contributor, to the beneficiary, and

      (ii) in any other case, to the estate of the contributor or, if less than one thousand dollars, as the Minister may direct.

(2) [Repealed, 1989, c. 6, s. 3]

(3) Where a child of a contributor is entitled to an annual allowance or other amount under this Part, payment thereof shall, if the child is less than eighteen years of age, be made to the person having the custody and control of the child, or, where there is no person having the custody and control of the child, to such person as the Minister may direct, and for the purposes of this subsection the surviving spouse of the contributor, except where the child is living apart from the surviving spouse, shall be presumed, in the absence of evidence to the contrary, to be the person having the custody and control of the child.

(4) For the purposes of this Part, where a contributor dies and the contributor had been, for a period of not less than one year immediately before the contributor's death, residing with a person of the opposite sex to whom the contributor was not married, the Treasury Board may deem that person to be the surviving spouse of the contributor if, during that period, that person had been publicly represented by the contributor to be the spouse of the contributor, and may deem that person to have become married to the contributor on the day established by that person to the satisfaction of the Treasury Board as being the day on which the representation began.

(4.1) For the purposes of this Part, where a contributor dies and, at the time of death, the contributor was married to a person with whom the contributor had been residing for a period immediately before the marriage and who, during that period, had been publicly represented by the contributor to be the spouse of the contributor, the Treasury Board may deem that person to have become married to the contributor on the day established by that person to the satisfaction of the Treasury Board as being the day on which the representation began.

(5) If, on the death of a contributor, it appears to the Treasury Board that the surviving spouse of the contributor had, immediately prior to his death, been living apart from him, and if the Treasury Board so directs, having regard to the surrounding circumstances, including the welfare of any children involved, the surviving spouse shall be deemed, for the purpose of determining entitlement to any benefit payable to the surviving spouse and children of the contributor as such, to have predeceased the contributor.

(6) The Treasury Board may, in its discretion, notwithstanding any direction made by the Board under subsection (5), direct that an annual allowance payable to a surviving spouse be apportioned among several applicants for the allowance, in which case any direction made under subsection (5) shall be deemed to be revoked.

(7) Any direction made under subsection (6) may from time to time be reviewed and varied.

Clause 76: (1) Subsection 26(1) reads as follows:

26. (1) Subject to section 13.1 but notwithstanding any other provision of this Part, the surviving spouse of a person is not entitled to any annual allowance under this Part if that person married the surviving spouse after having become entitled under this Part to an annuity or annual allowance, unless, after the marriage, that person became or continued to be a contributor under this Part.

(2) Subsection 26(3) reads as follows:

(3) Notwithstanding anything in this Part, where a contributor dies within one year after marriage, no annual allowance is payable to the surviving spouse of the contributor or the children of that marriage if the Treasury Board is not satisfied that the contributor was at the time of the marriage in such a condition of health as to justify the contributor in having an expectation of surviving for at least one year thereafter.

(3) Subsection 26(7) is new. Subsection 26(6) reads as follows:

(6) Notwithstanding anything in this Act, no person is entitled to an allowance under this Part by virtue of his being or being deemed to be the widower of a contributor unless the contributor was

    (a) employed in the Public Service, and

    (b) required by subsection 5(1) to contribute to the Superannuation Account

on or after December 20, 1975, and section 2 does not apply in respect of this subsection.

Clause 77: Section 26.1 reads as follows:

26.1 Where, before the coming into force of this section, the surviving spouse was paid an amount pursuant to subsection 25(2) as that subsection read from time to time before the coming into force of this section, the Minister may retain that amount, in the manner prescribed by the regulations, by way of deduction from any subsequent payments on account of the resumption of payment of the annual allowance pursuant to section 34 of the Statute Law (Superannuation) Amendment Act, as if that amount were an amount that had been paid in error under this Act on account of an annual allowance, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof.

Clause 78: (1) Subsection 27(1) reads as follows:

27. (1) Where, on the death of a contributor who was not required to contribute to the Superannuation Account under subsection 5(1) on or after December 20, 1975, there is no person to whom an allowance provided in this Part may be paid, or where the persons to which that allowance may be paid die or cease to be entitled thereto and no other amount may be paid to them under this Part, any amount by which the amount of a return of contributions exceeds the aggregate of all amounts paid to those persons and to the contributor under this Part and the Superannuation Act shall be paid, as a death benefit, to the contributor's estate or, if less than one thousand dollars, as the Minister may direct.

(2) The relevant portion of subsection 27(2) reads as follows:

(2) Where, on the death of a contributor who was required to contribute to the Superannuation Account under subsection 5(1) on or after December 20, 1975, there is no person to whom an allowance provided in this Part may be paid, or where the persons to whom that allowance may be paid die or cease to be entitled thereto and no other amount may be paid to them under this Part, an amount equal to the amount by which

Clause 79: Section 29 reads as follows:

29. The following provisions apply to any person who is entitled, under subsection 12(1) or 13(1) or any regulations made for the purposes of section 24.2, to an annuity or an annual allowance, or who has been granted, as a contributor under Part I of the Superannuation Act, any annual allowance or adjusted annual allowance thereunder:

    (a) if that person is re-employed in the Public Service and becomes, or would have become, but for the provisions of subsection 5(3), a contributor under this Part, whatever right or claim that he may have to the annuity, annual allowance or adjusted annual allowance shall forthwith be terminated, but the period of service on which the benefit was based, except any period specified in clause 6(1)(a)(iii)(C) or (E), may be counted by that person as pensionable service for the purposes of subsection 6(1), except that if that person, on ceasing to be so re-employed, exercises his option under this Part in favour of a return of contributions, or is not entitled under this Part to any benefit other than a return of contributions, the amount so returned shall not include any amount paid into the Superannuation Account to his credit at any time prior to the time when he became so re-employed, but whatever right or claim that, but for this paragraph, he would have had to the annuity, annual allowance or adjusted annual allowance on ceasing to be so re-employed shall thereupon be restored to him; and

    (b) if that person is re-employed in the Public Service and becomes, or would have become, but for the provisions of subsection 5(3), a contributor under this Part, and the period of service on which his annuity, annual allowance or adjusted annual allowance was based included any period specified in clause 6(1)(a)(iii)(C) or (E), he may, within one year from the time when he so became or would have become a contributor under this Part, elect to retain that annuity, annual allowance or adjusted annual allowance, in which case, from and after the date of that election, he shall be deemed, for the purposes of this section, not to have become a contributor under this Part in respect of his service since becoming so re-employed, but if, on ceasing to be so re-employed, he exercises his option under this Part in favour of a return of contributions or is not entitled to any benefit under this Part in respect of his service since becoming so re-employed except a return of contributions, the amount so returned shall not include any amount paid into the Superannuation Account to his credit at any time prior to the time when he became so re-employed.

Clause 80: Section 30 reads as follows:

30. Where, in any Act of Parliament, it is provided that a contributor who leaves the Public Service for employment outside thereof continues to be a contributor under this Part during that employment and is eligible, in the event of his being retired from that employment, to be re-employed in the Public Service, if the contributor, having been retired from that employment but not having reached sixty years of age and not being disabled, fails to apply for re-employment in the Public Service or refuses to accept a position in the Public Service that, in the opinion of the Minister, is commensurate with his qualifications, he is deemed to have ceased to be employed in the Public Service, not having reached sixty years of age, for a reason other than disability or misconduct.

Clause 81: Subsection 31(2) reads as follows:

(2) Notwithstanding anything in this Part, where a contributor to whom subsection (1) applies has been medically examined, as prescribed in the regulations, and has failed to pass the examination, neither the contributor nor his surviving spouse or children shall, in respect of any service of the contributor to which the election referred to in subsection (1) relates, become entitled to any benefit under this Part other than a return of contributions unless the contributor continues to be employed in the Public Service for a further period of not less than five years from the time of the examination or is again medically examined, as prescribed in the regulations, and passes the examination.

Clause 82: New.

Clause 83: Section 34 reads as follows:

34. (1) In this section,

``provincial scheme'' means any provision made by law for the payment of superannuation or pension benefits to persons employed under a provincial government;

``provincial service'' means service under a provincial government that may be counted for superannuation or pension purposes under a provincial scheme.

(2) Subject to subsection (3), where a contributor to whom section 16 or 17 of the Superannuation Act applied ceases to be employed in the Public Service to become re-employed by the provincial government by which he was employed immediately prior to becoming employed in the Public Service, and where the period of his service in the Public Service may be counted by him under a provincial scheme as though it were provincial service, the Governor in Council may authorize payment to that government of an amount equal to the aggregate of

    (a) twice the amount of the contributions made by the contributor to the Superannuation Account in respect of his service in the Public Service, with simple interest at four per cent per annum from the middle of the fiscal year in which those contributions were made;

    (b) the amount of his contributions, if any, to the Superannuation Account in respect of his provincial service, with interest, as described in paragraph (a); and

    (c) any amount transferred by that government in respect of his provincial service and credited to the Superannuation Account, with simple interest at four per cent per annum from the time when the transfer was made.

(3) No payment shall be made pursuant to subsection (2) except with the consent in writing of the contributor, and on the making of the payment the contributor ceases to be entitled to any benefit under this Part other than a return of his contributions, if any, to the Superannuation Account in respect of service other than service in the Public Service or provincial service.

Clause 84: Subsections 37(3) to (5) are new. Subsection 37(2) reads as follows:

(2) Where a person is an employee of a Public Service corporation and a contributor under this Part, or an employee of any other corporation and a contributor under this Part by reason of a provision in any Act of Parliament that he continues to be a contributor during his employment with that corporation, the Public Service corporation or other corporation, as the case may be, shall, from time to time as required by the Minister, pay into the Superannuation Account, in respect of the contributions of that person to the Superannuation Account in the course of his employment with the corporation, such amount as is determined by the Minister in accordance with the regulations.

Clause 85: Subsections 38(1) and (2) read as follows:

38. (1) Service of a person with a corporation included in Part IV of Schedule I is service in the Public Service only if that person is not precluded by that Part from contributing to the Superannuation Account in respect of that service or from electing to pay for that service otherwise than as service in pensionable employment immediately before becoming employed in the Public Service.

(2) No person shall, while he is employed by a corporation included in Part IV of Schedule I, contribute to the Superannuation Account under subsection 5(1) unless he is a person who by reason of a provision in any other Act of Parliament continues to be a contributor during his employment with that corporation.

Clause 86: (1) The relevant portion of subsection 39(2) reads as follows:

(2) Where a person elects to pay for a period of service under subsection (1), the amount required by this Part to be paid by that person for that service is,

    . . .

    (b) in the case of service for which, by the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, he was not required to pay, an amount equal to the amount that he would have been required to pay had he, during the period of that service, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rates set out in subsection 5(1) as it read on December 31, 1965, in respect of that service or that portion thereof, and

      (ii) where that period or any portion thereof was after 1965, in the manner and at the rates set out in subsection 5(1) in respect of that service or that portion thereof,

    in respect of a salary at a rate equal to the rate authorized to be paid to him on the most recent occasion on which he became a contributor under this Part, together with interest, as defined in subsection 7(2); and

    (c) notwithstanding paragraph (a), in the case of service for which, by the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, he was required to pay, and in respect of which he has received an amount by way of a return of contributions or a cash termination allowance, an amount equal to the amount that he would have been required to pay had he, during the period of that service, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rates set out in subsection 5(1) as it read on December 31, 1965, in respect of that service or that portion thereof, and

      (ii) where that period or any portion thereof was after 1965, in the manner and at the rates set out in subsection 5(1) in respect of that service or that portion thereof,

    in respect of a salary at a rate equal to the rate authorized to be paid to him on the most recent occasion on which he became a contributor under this Part, together with interest, as defined in subsection 7(2).

(2) Subsections 39(8.1) and (10) are new. Subsections 39(7) to (9) read as follows:

(7) Where a person to whom subsection (5) applies elects, pursuant to subsection (6), to surrender the annuity, annual allowance or pension referred to in subsection (5), the person so electing shall pay an amount equal to the amount of the annuity, annual allowance, pension or supplementary retirement benefit paid to him for any period commencing in any month commencing after he has been a contributor under this Part for one year, together with simple interest at four per cent per annum and the amount so paid shall be credited to the account maintained in the accounts of Canada pursuant to Part I of the Canadian Forces Superannuation Act, pursuant to the Royal Canadian Mounted Police Superannuation Act or pursuant to the Supplementary Retirement Benefits Act, as the case may be.

(8) On the making of any election under this section whereby the person so electing is required by this Part to pay for any period of service of the kind described in paragraph (2)(a), there shall be charged to the account maintained in the accounts of Canada pursuant to the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, and credited to the Superannuation Account in respect of that person, an amount equal to the amount determined under subparagraph (2)(a)(ii), and for the purposes of the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, the amount of any return of contributions or other lump sum payment that is or may become payable under that Act to or in respect of that person shall be deemed to be the amount otherwise determined therein minus the amount required by this subsection to be credited to the Superannuation Account on the making of the election.

(9) On the making of an election under this section whereby the person so electing is required to pay for any period of service of the kind described in paragraph (2)(c), there shall be charged to the account maintained in the accounts of Canada pursuant to the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, and credited to the Superannuation Account in respect of that person, an amount equal to the amount of any return of contributions received by that person under that Act.

Clause 87: (1) Subsections 40(2) and (3) read as follows:

(2) The Minister may, with the consent of the Governor in Council and on terms approved by the Treasury Board, enter into an agreement with any approved employer whereby, in consideration of the agreement of that employer to pay into the Superannuation Account an amount determined in accordance with the agreement in respect of any employee of that employer who becomes or has become employed in the Public Service, the Minister will pay to that employer, for the purpose of any superannuation or pension fund or plan established for the benefit of employees of that employer, an amount determined in accordance with subsection (3) or (4) in respect of any contributor who has ceased or ceases to be employed in the Public Service to become employed by that employer.

(3) Where a contributor ceases to be employed in the Public Service to become employed by any approved employer with whom the Minister has entered into an agreement pursuant to subsection (2), the Minister may, subject to subsection (9) and if the agreement so provides, pay to that employer out of the Superannuation Account

    (a) an amount equal to the total amount paid into the Superannuation Account in respect of that employee, except any portion thereof so paid by Her Majesty in right of Canada;

    (b) such amount paid into the Superannuation Account in respect of that employee by Her Majesty in right of Canada as the Minister determines; and

    (c) such amount representing interest as the Minister determines.

(2) Subsections 40(8) and (9) read as follows:

(8) Where

    (a) the amount paid by the Minister to an approved employer pursuant to subsection (3) in respect of an employee,

together with

    (b) the amount determined by the Minister as having being paid into the Superannuation Account in respect of that employee and in respect of which that employee is or may become entitled to a benefit under this Part or Part III,

is less than

    (c) the amount determined by the Minister as being the total amount paid into the Superannuation Account by and in respect of that employee,

the Minister may pay to that employee an amount not exceeding that difference.

(9) No amount paid into the Superannuation Account in respect of any period of service of a person described in subsection (11) or (13)

    (a) that, at the time that person ceased to be employed by an approved employer or the administration of any service in which he was employed was transferred to Her Majesty in right of Canada, he was entitled to count for the purpose of any superannuation or pension fund or plan established for the benefit of persons employed by that employer or in that service, and

    (b) in respect of which the Pension Benefits Standards Act, 1985 or a provincial law required the vesting of benefits or the locking-in of contributions

shall be paid out of the Superannuation Account to an approved employer for the purpose of any superannuation or pension fund or plan established for the benefit of employees of that employer if that fund or plan is not subject to the Pension Benefits Standards Act, 1985 or a provincial law.

(3) Subsection 40(11.1) is new. Subsection 40(11) reads as follows:

(11) Where an employee of any approved employer with whom the Minister has entered into an agreement pursuant to subsection (2) has ceased to be employed by that employer to become employed in the Public Service, any service of that employee that, at the time he left that employment, he was entitled to count for the purpose of any superannuation or pension fund or plan established for the benefit of employees of that employer may, if the agreement so provides, be counted by him as pensionable service for the purposes of subsection 6(1) without contribution by him except as specified in the agreement if, within one year from the time when he becomes a contributor under this Part or within such further time as is specified in the agreement, the employer pays into the Superannuation Account such amount as is required under the agreement to be so paid by that employer in respect of the employee.

Clause 88: The relevant portion of subsection 40.1(2) reads as follows:

(2) Notwithstanding the definition ``Public Service'' in subsection 3(1), the Treasury Board may, subject to such terms and conditions as may be prescribed by the regulations made under paragraph 42.1(1)(v.5), including the requirement of the person or body referred to in subsection (1) to pay into the Superannuation Account the amount determined in accordance with those regulations,

Clause 89: (1) Subsections 40.2(2) and (3) read as follows:

(2) The Minister may, on terms approved by the Treasury Board, enter into an agreement with any eligible employer that

    (a) requires the Minister to pay to that employer, for the purpose of any plan referred to in subsection (1), an amount determined in accordance with subsection (3) in respect of any contributor who has ceased or ceases to be employed in the Public Service and is or becomes employed by that employer; and

    (b) may provide that any eligible employer pay into the Superannuation Account an amount determined in accordance with the agreement in respect of any person who has ceased or ceases to be employed by that employer and is or becomes employed in the Public Service.

(3) Where a contributor ceases to be employed in the Public Service and is or becomes employed by any eligible employer with whom the Minister has entered into an agreement pursuant to subsection (2), the Minister may, subject to such terms and conditions as the agreement provides and if the agreement so provides, pay to that employer out of the Superannuation Account

    (a) amounts equal in the aggregate to

      (i) an amount not exceeding the value, actuarially calculated in accordance with the agreement, of all benefits accrued under this Part and Part III in respect of the pensionable service of the contributor, and

      (ii) such amount representing interest on the amount determined in accordance with subparagraph (i) as of the date of payment to the eligible employer as the Minister determines; or

    (b) the benefits payable under this Part and Part III to or in respect of the contributor, as they become payable.

(2) Subsection 40.2(6) reads as follows:

(6) Subject to any regulations made under paragraph 42.1(1)(u), where, pursuant to paragraph (3)(a), the Minister makes a payment to an eligible employer in respect of an employee, that employee ceases to be entitled to any benefit under this Part or Part III in respect of the period of pensionable service to which that payment relates.

(3) Subsection 40.2(9) reads as follows:

(9) Where an employee of any eligible employer with whom the Minister has entered into an agreement pursuant to subsection (2) has ceased to be employed by that employer and is or becomes employed in the Public Service, any service of that employee that, at the time of leaving that employment, the employee was entitled to count for the purpose of any plan referred to in subsection (1) established for the benefit of employees of that employer may, if the agreement so provides, be counted by the employee as pensionable service for the purposes of subsection 6(1), to the extent and subject to the terms and conditions provided in the regulations, if the employer pays into the Superannuation Account such amount as is required under the agreement to be so paid by that employer in respect of the employee.

Clause 90: Section 41 reads as follows:

41. (1) The Governor in Council may establish an Advisory Committee, to advise and assist the Minister on matters arising in connection with the administration of this Act.

(2) The membership of the Advisory Committee shall consist of twelve persons, appointed by the Governor in Council after consultation with the National Joint Council of the public service of Canada, for a term not exceeding three years each.

Clause 91: (1) to (5) The relevant portion of subsection 42(1) reads as follows:

42. (1) The Governor in Council may make regulations

    . . .

    (d) prescribing, notwithstanding subsection 5(1) and sections 19 and 65, the rates at which, the manner in which and the circumstances under which persons who are or have been absent from the Public Service on leave of absence without pay shall contribute to the Superannuation Account in respect of that absence, prescribing the salaries those persons are deemed to have received during that absence and respecting any interest or other charges those persons shall pay into the Account;

    . . .

    (k) specifying, for the purposes of paragraphs 5(3)(b) and 8(2)(a), the kinds of superannuation or pension benefits therein referred to;

    . . .

    (kk) prescribing the manner in which an amount referred to in section 26.1 may be recovered from any payment on account of the annual allowance referred to in that section;

    . . .

    (mm) providing, notwithstanding anything in this Part, for the reduction of any annuity or annual allowance payable under this Part to or in respect of a person who has been convicted of an indictable offence committed by him while employed in the Public Service, where, in the opinion of the Minister, the commission of that offence by him constituted misconduct in office;

    . . .

    (ss) providing for the reduction of any allowance that may become payable under this Part to the surviving spouse, children or other dependants of a person to whom Part III of the Superannuation Act applied, who, at the time of his election to become a contributor under Part I of that Act, failed to pay into the Consolidated Revenue Fund the amount referred to in subsection 31(2) of the Superannuation Act;

    (tt) providing for payment out of the Superannuation Account, on the death of a contributor and on application to the Minister by or on behalf of any successor thereunder to whom any annual allowance becomes payable under this Part, of the whole or any part of such portion of any estate, legacy, succession or inheritance duties or taxes that are payable by the successor as is determined in accordance with the regulations to be attributable to that allowance, and prescribing the amounts by which and the manner in which any such allowance and any amount payable under section 27 in any such case shall be reduced;

(6) Subsection 42(2) reads as follows:

(2) For the purposes of this Part, a person who has contributed to the Superannuation Account in accordance with the regulations made by the Governor in Council pursuant to paragraph (1)(d), in respect of any period during which the person was absent from the Public Service on leave of absence without pay, is deemed to have contributed to the Superannuation Account in respect of that period in accordance with subsection 5(1).

(7) The relevant portion of subsection 42(6) reads as follows:

(6) Notwithstanding anything in this Part, the Governor in Council may by regulation provide

    . . .

    (b) for payment out of the Superannuation Account of any pension granted under any plan described in paragraph (a), subject to such terms and conditions as the regulations may prescribe; and

    (c) for the transfer to the Superannuation Account of any contributions made under any plan described in paragraph (a), including any contributions by or on behalf of the board, commission or corporation and any accrued interest.

(8) Subsection 42(8) reads as follows:

(8) Notwithstanding anything in this Part, the Governor in Council may by regulation provide that the service of a former member of the House of Commons or a former Senator in respect of which he made contributions under the Members of Parliament Retiring Allowances Act may, to such extent and subject to such conditions as may be prescribed by the regulations, be counted by that former member or former Senator as pensionable service for the purposes of this Part, and for the transfer to the Superannuation Account of all contributions made by him under that Act and any amounts credited under section 5 of that Act in respect of him.

Clause 92: (1) to (5) Paragraph 42.1(1)(v.8) is new. The relevant portion of subsection 42.1(1) reads as follows:

42.1 (1) The Governor in Council may make regulations

    (a) fixing an annual rate of salary for the purposes of paragraph 5(3)(d) or prescribing the manner of determining the annual rate of salary;

    . . .

    (r) fixing the percentage of a person's salary required to be contributed to the Superannuation Account under subsection 24.4(1) or prescribing the manner of determining that percentage;

    . . .

    (t) requiring the Minister to credit additional amounts to the Superannuation Account in respect of the operational service that is pensionable service to the credit of a person referred to in section 24.2 and prescribing the manner and circumstances in which those amounts are to be so credited;

    . . .

    (v.3) respecting the manner in which and the determination of the balances on which interest is to be calculated under subsection 10(9);

    . . .

    (v.5) respecting the terms and conditions, including the requirement of a person or body referred to in subsection 40.1(1) to pay into the Superannuation Account such amount as is determined in accordance with the regulations for any or all cases, subject to which, and the maximum period during which, the person or body is to form part of the Public Service pursuant to a direction of the Treasury Board made under subsection 40.1(2);

    . . .

    (v.7) respecting the manner in which and extent to which any provision of this Act or any regulations made under this Act apply to any employee of an entity or portion thereof and adapting any of those provisions for the purposes of that application where an order is made under subsection 42(4) or a regulation is made under paragraph (v.1) in respect of that entity, including the manner of determining any amount that may be paid out of the Superannuation Account in respect of those employees and the terms and conditions under which the amount is to be paid; and

Clause 93: Section 43 reads as follows:

43. All amounts required for the payment of benefits for which this Part makes provision shall be paid out of the Superannuation Account.

Clause 94: The heading before section 44 reads as follows:

Amounts to be Credited to the Account

Clause 95: (1) The relevant portion of subsection 44(1) reads as follows:

44. (1) There shall be credited to the Superannuation Account in each fiscal year

    (a) in respect of every month, an amount equal to the total of

      (i) an amount matching the total amount estimated by the Minister to have been paid into the Account during the month by way of contributions in respect of current service other than current service with any Public Service corporation or other corporation as defined in section 37, and

      (ii) such additional amount as is determined by the Minister to be required to provide for the cost of the benefits that have accrued in respect of that month in relation to current service and that will become chargeable against the Account;

(2) Subsections 44(2) to (6) read as follows:

(2) There shall be charged to the Supplementary Retirement Benefits Account established pursuant to the Supplementary Retirement Benefits Act and credited to the Superannuation Account

    (a) on the day on which this subsection comes into force, the amount by which

      (i) the aggregate of

        (A) all amounts that, pursuant to Part III, were credited to the Supplementary Retirement Benefits Account before that day, and

        (B) the interest credited pursuant to section 9 of the Supplementary Retirement Benefits Act on such portion of the balance in that Account as may be attributed to the amounts referred to in clause (A),

    exceeds

      (ii) the benefits and other amounts charged to the Supplementary Retirement Benefits Account in respect of contributors, before that day, pursuant to section 8 of the Supplementary Retirement Benefits Act; and

    (b) such interest as is credited pursuant to section 9 of the Supplementary Retirement Benefits Act, at any time on or after the day on which this subsection comes into force, on such portion of the balance in that Account as may be attributed to the amount referred to in paragraph (a).

(3) For the purpose of calculating the amount referred to in paragraph (1)(c), the Superannuation Account shall be deemed to have been established immediately before the day on which subsection (1) comes into force and the total amount standing to the credit of the Account on that day, together with the amounts credited to the Account pursuant to subsection (2), are deemed to constitute the balance to the credit of the Account immediately before that day.

(4) The Minister shall estimate the total cost of the benefits payable under this Part and Part III, as at the day on which this subsection comes into force, in respect of the pensionable service to the credit of contributors before that day.

(5) There shall be credited to the Superannuation Account, on the day on which this subsection comes into force, such amount as in the opinion of the Minister will, together with the amount estimated by the Minister to be to the credit of the Account at that time, meet the total cost estimated pursuant to subsection (4).

(6) Following the laying before Parliament of any actuarial valuation report pursuant to section 45 that relates to the state of the Superannuation Account, there shall be credited to the Account, at the time and in the manner set out in subsection (7), such amount as in the opinion of the Minister will, at the end of the fifteenth fiscal year following the tabling of that report or at the end of such shorter period as the minister may determine, together with the amount that the Minister estimates will be to the credit of the Account at that time, meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that is to the credit of contributors.

(3) Subsections 44(9) to (14) are new. Subsection 44(8) reads as follows:

(8) Where a subsequent actuarial valuation report is laid before Parliament before the end of the period applicable under subsection (7), the instalments remaining to be credited in that period may be adjusted to reflect the amount that is estimated by the Minister, at the time that subsequent report is laid before Parliament, to be the amount that will, together with the amount that the Minister estimates will be to the credit of the Account at the end of that period, meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that is to the credit of contributors.

Clause 96: New.

Clause 97: Part I.1 is new. Sections 45 and 46 read as follows:

45. In accordance with the Public Pensions Reporting Act, a cost certificate, an actuarial valuation report and an assets report on the state of the Superannuation Account shall be prepared, filed with the Minister designated under that Act and laid before Parliament.

Annual Report

46. The Minister shall cause to be laid before each House of Parliament each year a report on the administration of this Part and Part III during the preceding fiscal year, including a statement showing the amounts paid into and out of the Superannuation Account during that year, by appropriate classifications, the number of contributors and the number of persons receiving benefits under this Part and Part III, together with such additional information as the Governor in Council requires.

Clause 98: (1) The definition ``basic benefit'' in subsection 47(1) reads as follows:

``basic benefit'', with respect to a participant, means an amount equal to twice the salary of the participant, if that amount is a multiple of two hundred and fifty dollars, or an amount equal to the nearest multiple of two hundred and fifty dollars above twice the salary of the participant, if the first-mentioned amount is not a multiple of two hundred and fifty dollars, subject to a reduction of ten per cent, to be made as of such time as the regulations prescribe, for every year of age in excess of sixty attained by the participant, except that

      (a) in the case of a participant who is employed in the Public Service, the basic benefit shall not be less than

        (i) an amount equal to one third of the participant's salary, if that one-third is a multiple of two hundred and fifty dollars, or an amount equal to the nearest multiple of two hundred and fifty dollars above one third of the participant's salary, if that one-third is not a multiple of two hundred and fifty dollars, or

        (ii) five thousand dollars,

    whichever is the greater,

      (b) subject to paragraph (c), in the case of an elective participant who, on ceasing to be employed in the Public Service or to be a member of the regular force, was entitled under Part I to an immediate annuity, the basic benefit shall not be less than five thousand dollars, and

      (c) in the case of an elective participant who makes an election under subsection 52(2), the basic benefit shall be five hundred dollars.

(2) Paragraph (b.1) of the definition ``participant'' in subsection 47(1) is new. The relevant portion of that definition reads as follows:

``participant'' means

      (a) a person who is required by subsection 5(1) to contribute to the Superannuation Account,

      (b) an employee of a Crown corporation who is required to contribute to the Superannuation Account in respect of current service or who, but for subsection 5(3), would be required so to contribute,

      (c) a person not coming within paragraph (a) or (b) who has made an election under section 51 and continues to contribute under this Part,

      (d) a person not coming within paragraph (a), (b) or (c) who has made an election under section 51 and to whom the basic benefit of five thousand dollars referred to in paragraph (b) of the definition ``basic benefit'' in this subsection, or to whom the basic benefit of five hundred dollars referred to in paragraph (c) of that definition, applies without contribution under this Part by the participant therefor,

      . . .

    but does not include an employee of a Crown corporation or public board excluded from the operation of this Part by the regulations;

(3) The relevant portion of the definition ``salary'' in subsection 47(1) reads as follows:

``salary'' means

    . . .

(4) New.

Clause 99: New.

Clause 100: Sections 49 and 50 read as follows:

49. Where, in any circumstances, the Treasury Board may, for any purposes of Part I, direct that a person be deemed to be the surviving spouse of a contributor, that the surviving spouse of a contributor be deemed to have predeceased him or that any annual allowance payable to a surviving spouse be apportioned, in similar circumstances, the Treasury Board may, for the purpose of determining entitlement under this Part to any benefit payable to the surviving spouse of a participant as such, direct that a person be deemed to be the surviving spouse of the participant or that the surviving spouse of the participant be deemed to have predeceased him, as the case may be, and may apportion the benefit payable under this Part.

50. For the purposes of sections 51 and 53,

    (a) in calculating the period during which a person has been employed in the Public Service, any service of that person as a member of the regular force shall be deemed to be employment in the Public Service; and

    (b) in calculating the period during which a person has been a participant under this Part, any period during which that person was a regular force participant under this Part prior to August 1, 1966 or under Part II of the Canadian Forces Superannuation Act shall be included.

Clause 101: The relevant portion of subsection 51(2) reads as follows:

(2) A person who ceases to be employed in the Public Service and at the time of ceasing to be so employed is a participant who has been employed in the Public Service substantially without interruption for two years or more or has been a participant under this Part without interruption for two years or more,

    . . .

    (b) may, within that period of thirty days, elect to continue to be a participant under this Part after the expiration of that period, and shall, if on ceasing to be so employed he is entitled under Part I to an immediate annuity, be deemed so to have elected within that period to continue to be a participant under this Part after the expiration of that period.

Clause 102: (1) and (2) Subsections 52(2.1) and (2.2) are new. Section 52 reads as follows:

52. (1) Where the basic benefit of an elective participant who, on ceasing to be employed in the Public Service, was entitled under Part I to an immediate annuity, exceeds five thousand dollars, the amount of the basic benefit shall, if the participant so elects, be reduced to five thousand dollars.

(2) An elective participant who has made an election under section 52 of this Act as it read from time to time before the day on which this section comes into force is, beginning on that day, deemed to have elected to reduce the basic benefit of the participant to five thousand dollars unless, within one year after that day, the participant elects not to be deemed to have so elected.

(3) An election made under subsection (1) or (2) is irrevocable.

Clause 103: Section 53 reads as follows:

53. Every participant shall contribute to the Consolidated Revenue Fund at the rate of five cents per month for every two hundred and fifty dollars in the amount of the participant's basic benefit (reduced, if the participant has attained the age of sixty-five years and is employed in the Public Service, having been so employed substantially without interruption for two years or more or having been a participant under this Part without interruption for two years or more, by one dollar per month, commencing as of such time as the regulations prescribe, being the contribution otherwise payable under this Part for the basic benefit in the amount of five thousand dollars referred to in the definition ``basic benefit'' in subsection 47(1)) or, in the case of elective participants and participants who are absent from duty, such contribution as the regulations prescribe.

Clause 104: New.

Clause 105: The relevant portion of subsection 56(1) reads as follows:

56. (1) There shall be an account in the accounts of Canada to be known as the Public Service Death Benefit Account to which shall be credited the following:

    . . .

    (c) an amount equal to the amount estimated by the Minister to be sufficient to cover the cost of the benefits that will become chargeable against the Account but not less than the aggregate of

      . . .

      (iii) the amount of the single premium determined under Schedule II in respect of each participant in the case of whom the basic benefit in the amount of five thousand dollars referred to in paragraph (b) of the definition ``basic benefit'' in subsection 47(1), or the basic benefit in the amount of five hundred dollars referred to in paragraph (c) of that definition, applies without contribution under this Part by the participant therefor; and

Clause 106: The relevant portion of subsection 61(1) reads as follows:

61. (1) The Governor in Council may make regulations for carrying the purposes and provisions of this Part into effect and, without restricting the generality of the foregoing, may make regulations

    . . .

    (h) authorizing payment, with the approval of the Minister, out of any benefit payable to the spouse, beneficiary or estate of a deceased participant, of reasonable expenses incurred for the maintenance, medical care or burial of the participant;

Clause 107: The definition ``contributor'' in section 64 reads as follows:

``contributor'' means

      (a) a person who is required by subsection 5(1) to contribute to the Superannuation Account,

      (b) a person described in paragraph 5(3)(a) or (b) who is employed in the Public Service, or

      (c) a person who is required to contribute to the Superannuation Account by reason of a provision in any other Act of Parliament;

Clause 108: Section 65 of the Act reads as follows:

65. Every contributor is required to contribute to the Superannuation Account, by reservation from salary or otherwise, in addition to any other amount required under this Act, an amount equal to one per cent of the contributor's salary.

Clause 109: Subsection 66(1) reads as follows:

66. (1) A contributor who elects, pursuant to section 6 or 39, to count as pensionable service any period of elective service specified in that section, or any portion thereof, that is after March 31, 1970 is required to contribute to the Superannuation Account in respect thereof, in addition to any other amount required under this Act, an amount calculated in the manner and in respect of the salary described in those sections

    (a) in the case of any period of elective service or portion thereof that is after March 31, 1970 and before January 1, 1977, at the rate set out in subsection 65(1) of the Public Service Superannuation Act, as it read immediately before the coming into force of this paragraph; and

    (b) in the case of any period of elective service or portion thereof that is after December 31, 1976, at the rate set out in section 65.

Clause 110: Section 67 reads as follows:

67. Where a contributor is an employee of a Public Service corporation or other corporation as defined in section 37, the Public Service corporation or other corporation, as the case may be, shall from time to time, as required by the Minister, pay into the Superannuation Account in respect of the contribution of the contributor to the Account under section 65 such amount as is determined by the Minister in accordance with the regulations.

Clause 111: The relevant portion of subsection 69(3) reads as follows:

(3) For the purposes of this section,

    . . .

    (b) the retirement year or retirement month of a person who is in receipt of a pension by virtue of being a surviving spouse, a child or an orphan, is the retirement year or retirement month, as the case may be, of the person in respect of whom or in respect of whose service the pension is payable.

Clause 112: Subsection 70(2) reads as follows:

(2) For greater certainty, all amounts required for the payment of supplementary benefits shall be paid out of the Consolidated Revenue Fund and charged to the Superannuation Account.

Clause 113: The relevant portion of subsection 71(1) reads as follows:

71. (1) The Governor in Council may, for the purpose of enabling the pension plan provided by this Act to conform with any provision of section 147.1 of the Income Tax Act and Part LXXXV of the Income Tax Regulations, as they read on January 15, 1992, make regulations

Clause 114: (1) This amendment is consequential on the amendment proposed by clause 227.

(2) New.

Canadian Forces Superannuation Act

Clause 115: (1) The definitions ``contributor'' and ``salary'' in subsection 2(1) read as follows:

``contributor'' means a person who is required by section 5 to contribute to the Superannuation Account, and includes, unless the context otherwise requires,

      (a) a person who has ceased to be so required to contribute to the Superannuation Account, and

      (b) for the purposes of sections 26 to 35 and 38 to 40, a contributor under Part V of the former Act who has become entitled to a pension under that Part or has died;

``salary'' as applied to a member of the Canadian Forces means his income for the year from his employment as a member of the Canadian Forces, computed in accordance with the Income Tax Act, plus any deductions for the year made in computing that income;

(2) New.

(3) Subsection 2(2) reads as follows:

(2) Words in this Act referring to the child of a person include a stepchild of that person, an illegitimate child of that person who, at the time of that person's death, was being maintained by him and was wholly or substantially dependent on him for support, and an individual adopted either legally or in fact by that person while such individual was under eighteen years of age.

Clause 116: Subsection 4(1) reads as follows:

4. (1) Subject to this Act, an annuity or other benefit hereinafter specified shall be paid to or in respect of every person who, being required to contribute to the Superannuation Account in accordance with this Act, ceases to be a member of the regular force or dies, and that annuity or other benefit shall, subject to this Act, be based on the number of years of pensionable service to the credit of that person.

Clause 117: (1) Subsections 5(1.01) to (1.03) are new. Subsection 5(1) reads as follows:

5. (1) Every member of the regular force, except a person described in subsection (1.1), is required to contribute to the Superannuation Account, by reservation from pay or otherwise, six and one-half per cent of the member's pay minus an amount equal to the amount the member would be required to contribute under the Canada Pension Plan in respect of the member's salary for the period of that pay if the member's salary were the total amount of the member's income for the year from pensionable employment as defined in that Act.

(2) Subsections 5(3) to (6) are new. Subsection 5(2) reads as follows:

(2) Notwithstanding anything in this Act,

    (a) no person who is entitled to a pension under any of Parts I to III of the former Act by virtue of having served in the regular force shall contribute to the Superannuation Account as required by subsection (1);

    (b) no person shall contribute to the Superannuation Account as required by subsection (1) after that person has to his credit a period of pensionable service totalling thirty-five years;

    (c) no person who has become entitled to or has been granted any superannuation or pension benefit of a kind prescribed by the regulations payable out of the Consolidated Revenue Fund or out of any account or fund in the accounts of Canada other than the Superannuation Account shall contribute to the Superannuation Account as required by subsection (1) after that person has to his credit a period of pensionable service totalling thirty-five years less the number of years of service on which that superannuation or pension benefit is based; and

    (d) no person shall, in respect of any period of service of that person as a member of the regular force on or after the day on which this paragraph comes into force, contribute to the Superannuation Account in respect of any portion of that person's annual rate of pay that is in excess of such annual rate of pay as is fixed by or determined in the manner prescribed by the regulations.

Clause 118: (1) and (2) Clauses 6(b)(ii)(M) and (N) are new. The relevant portion of section 6 reads as follows:

6. Subject to this Act, the following service may be counted by a contributor as pensionable service for the purposes of this Act, namely,

    (a) non-elective service, comprising,

      . . .

      (ii) in the case of any contributor,

        (A) any period during which he is required by section 5 to contribute to the Superannuation Account, and

        . . .

    (b) elective service, comprising,

      . . .

      (ii) in the case of any contributor,

Clause 119: Subsection 6.1(2) reads as follows:

(2) Notwithstanding subsection 5(1), a contributor who makes an election under subsection (1) is not required to contribute to the Superannuation Account under subsection 5(1) in respect of the portion of the period to which the election relates.

Clause 120: (1) to (3) The relevant portion of subsection 7(1) reads as follows:

7. (1) Subject to section 9, a contributor who is entitled under this Act to count as pensionable service any period of elective service specified in paragraph 6(b), is required to pay, in respect thereof, as follows:

    . . .

    (c) in respect of any period specified in clause 6(b)(ii)(A) or (B), an amount equal to the amount that he would have been required to contribute had he, during that period, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rate set forth in subsection 5(1) as it read on December 31, 1965, in respect of that period or that portion thereof,

      (ii) where that period or any portion thereof was after 1965 and prior to April 1, 1969, in the manner and at the rate set forth in subsection 5(1) as it read immediately prior to April 1, 1969, in respect of that period or that portion thereof, and

      (iii) where that period or any portion thereof was after March 31, 1969, in the manner and at the rates set forth in subsection 5(1) in respect of that period or that portion thereof,

    in respect of pay equal to the pay authorized to be paid to him on the most recent occasion on which he became a contributor under this Act, together with interest;

    (d) in respect of any period specified in clause 6(b)(ii)(C) or (D), an amount equal to the amount that he would have been required to contribute had he, during that period, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rate set forth in subsection 5(1) as it read on December 31, 1965, in respect of that period or that portion thereof,

      (ii) where that period or any portion thereof was after 1965 and prior to April 1, 1969, in the manner and at the rate set forth in subsection 5(1) as it read immediately prior to April 1, 1969, in respect of that period or that portion thereof, and

      (iii) where that period or any portion thereof was after March 31, 1969, in the manner and at the rates set forth in subsection 5(1) in respect of that period or that portion thereof,

    in respect of pay equal to the pay authorized to be paid to him during that period, together with interest;

    . . .

    (g) in respect of any period specified in clause 6(b)(ii)(G), an amount equal to the amount that he would have been required to contribute had he, during that period, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rate set forth in subsection 5(1) as it read on December 31, 1965, in respect of that period or that portion thereof,

      (ii) where that period or any portion thereof was after 1965 and prior to April 1, 1969, in the manner and at the rate set forth in subsection 5(1) as it read immediately prior to April 1, 1969, in respect of that period or that portion thereof, and

      (iii) where that period or any portion thereof was after March 31, 1969, in the manner and at the rates set forth in subsection 5(1) in respect of that period or that portion thereof,

    in respect of pay on a full-time basis at the rates in effect during those periods for the rank or ranks in the Canadian Forces corresponding to the rank or ranks held by him during that period, together with interest;

    . . .

    (l) in respect of any period specified in clause 6(b)(ii)(L), such amount as is determined in accordance with the regulations.

Clause 121: New.

Clause 122: (1) New.

(2) Subsection 9(4) reads as follows:

(4) Where any amount payable by a contributor into the Superannuation Account by reservation from pay and allowances or otherwise has become due, but remains unpaid at the time of his death, that amount, with interest at four per cent per annum from the time it became due, may be recovered in accordance with the regulations from any allowance payable under this Act to the surviving spouse or children of the contributor, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof, and any amounts so recovered shall be credited to the Superannuation Account and shall be deemed, for the purposes of the definition ``return of contributions'' in section 10, to have been paid into that Account by the contributor.

Clause 123: The definitions ``cash termination allowance'' and ``return of contributions'' in section 10 read as follows:

``cash termination allowance'' means an amount equal to one month's pay for each year of pensionable service to the credit of the contributor, computed on the basis of the rate of pay authorized to be paid to him at the time he ceases to be a member of the regular force, minus an amount equal to the amount by which

      (a) the total amount the contributor would have been required to contribute to the Superannuation Account up to the time he ceases to be a member of the regular force, other than interest or charges for payments by instalments, in respect of service after 1965, if he had contributed on the basis of the rate set forth in subsection 5(1) as it read on December 31, 1965,

    exceeds

      (b) the total amount the contributor was required to contribute to the Superannuation Account up to the time he ceases to be a member of the regular force, other than interest or charges for payments by instalments, in respect of service after 1965;

``return of contributions'' means a return of

      (a) the amount paid by the contributor into the Superannuation Account but not including any amount so paid pursuant to subsection 39(7) of the Public Service Superannuation Act or subsection 24(6) of the Royal Canadian Mounted Police Superannuation Act, and

      (b) any amount paid by him into any other account or fund, together with interest, if any, that has been transferred to the Superannuation Account,

    to the extent that the amount remains to his credit in the Superannuation Account, together with interest, if any, calculated pursuant to section 13.

Clause 124: Subsection 11(2) reads as follows:

(2) Where an annual allowance becomes payable under this Part to a surviving spouse or child, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, until the end of the month during which the recipient dies or otherwise ceases to be entitled to receive an annual allowance, and any amount in arrears thereof that remains unpaid at any time after the death of the recipient shall be paid to the estate of the recipient or, if less than one thousand dollars, as the Minister may direct.

Clause 125: Section 13 reads as follows:

13. Where, at any time after December 31, 1974, a contributor ceases to be a member of the regular force, the Minister shall

    (a) determine the aggregate of all amounts referred to in paragraphs (a) and (b) of the definition ``return of contributions'' in section 10 that have been paid by the contributor into the Superannuation Account or transferred to the Superannuation Account to the credit of the contributor

      (i) prior to 1974, and

      (ii) during each year, hereinafter called a ``contribution year'', subsequent to 1973, in which contributions were made by or on behalf of the contributor to the Superannuation Account,

    and that have not previously been paid to him as a return of contributions or otherwise; and

    (b) calculate interest at the rate of four per cent compounded annually

      (i) on the aggregate amount determined in respect of the period referred to in subparagraph (a)(i), from December 31, 1973 to December 31 of the year immediately preceding the year in which he ceased to be a member of the regular force, and

      (ii) on the aggregate amount determined in respect of each contribution year referred to in subparagraph (a)(ii), from December 31 of that year to December 31 of the year immediately preceding the year in which he ceased to be a member of the regular force.

Clause 126: Section 14 reads as follows:

14. Subject to Part II of the Garnishment, Attachment and Pension Diversion Act and to the Pension Benefits Division Act,

    (a) a benefit under this Part or Part III is not capable of being assigned, charged, anticipated or given as security and any transaction that purports to assign, charge, anticipate or give as security any such benefit is void;

    (b) a benefit to which a contributor, surviving spouse or child is entitled under this Part or Part III is not capable of being surrendered or commuted during the lifetime of that person and any transaction that purports to so surrender or commute any such benefit is void; and

    (c) a benefit under this Part or Part III is exempt from attachment, seizure and execution, either at law or in equity.

Clause 127: Subsection 15(5) reads as follows:

(5) For the purposes of subparagraphs (1)(a)(ii) and (iii), a period of service during which a person continues to be a member of the regular force after that person has, pursuant to paragraph 5(2)(b) or (c), ceased to contribute to the Superannuation Account is deemed to be a period of pensionable service to the credit of that person.

Clause 128: Section 16 reads as follows:

16. A contributor who, having reached retirement age, ceases to be a member of the regular force for any reason other than a reason described in subsection 18(1) or (4) is entitled to a benefit determined as follows:

    (a) if he has served in the regular force for three years or less, he is entitled to a return of contributions;

    (b) if he has served in the regular force for more than three years but less than ten years, he is entitled to

      (i) a return of contributions, or

      (ii) a cash termination allowance,

    whichever is the greater; and

    (c) if he has served in the regular force for ten or more years, he is entitled to an immediate annuity.

Clause 129: The relevant portion of subsection 17(2) reads as follows:

(2) A contributor who

    . . .

is entitled

    (e) if he has served in the regular force, other than as a subordinate officer, for ten or more years, at his option, to a return of contributions or a deferred annuity, or

Clause 130: (1) to (3) Section 18 reads as follows:

18. (1) A contributor who is compulsorily retired from the regular force by reason of having become disabled is entitled to a benefit determined as follows:

    (a) if he has served in the regular force for less than ten years, he is entitled to

      (i) a return of contributions, or

      (ii) a cash termination allowance,

    whichever is the greater; and

    (b) if he has served in the regular force for ten or more years, he is entitled to an immediate annuity.

(2) A contributor who, not having reached retirement age, is compulsorily retired from the regular force to promote economy or efficiency is entitled to a benefit determined as follows:

    (a) if he has served in the regular force for three years or less, he is entitled to a return of contributions;

    (b) if he has served in the regular force for more than three years but less than ten years, he is entitled to

      (i) a return of contributions, or

      (ii) a cash termination allowance,

    whichever is the greater;

    (c) if he has served in the regular force for ten or more years but less than twenty years, he is entitled, at his option, to

      (i) a return of contributions,

      (ii) a deferred annuity, or

      (iii) with the consent of the Minister, an immediate annuity reduced until such time as he reaches sixty-five years of age but not thereafter, by five per cent for each full year not exceeding six by which

        (A) the period of his service in the regular force is less than twenty years, or

        (B) his age at the time of his retirement is less than the retirement age applicable to his rank,

      whichever is the lesser; and

    (d) if he has served in the regular force for twenty or more years, he is entitled to an immediate annuity.

(3) A contributor described in subsection (4) is entitled to a benefit determined as follows:

    (a) if he has served in the regular force for less than ten years, he is entitled to a return of contributions; or

    (b) if he has served in the regular force for ten or more years, he is entitled to

      (i) a return of contributions, or

      (ii) with the consent of the Treasury Board, the whole or any part specified by the Treasury Board of any annuity to which he would have been entitled under subsection 19(1) had he, at the time of his retirement, ceased to be a member of the regular force for a reason other than a reason described in subsection 17(1) or (2) or 18(1), (2) or (4), except that in no case shall the capitalized value thereof be less than the amount of the return of contributions referred to in subparagraph (i).

(4) For the purposes of subsection (3), a contributor described in this subsection is any contributor who is compulsorily retired from the regular force

    (a) as a result of the carrying out of a punishment of dismissal, or dismissal with disgrace, from Her Majesty's service;

    (b) by reason of his having been convicted of an offence under

      (i) section 336 of the Criminal Code, or

      (ii) section 130 of the National Defence Act for an act punishable under section 336 of the Criminal Code;

    (c) by reason of his having been found guilty of an offence under section 114 of the National Defence Act that was found to have been committed at a time when he was, by reason of his rank, appointment or employment or as a result of any lawful command, entrusted with the custody, control or distribution of the thing stolen;

    (d) by reason of his having been convicted under any law of Canada, other than section 94 of the National Defence Act, of an offence involving traitorous or treasonable behaviour;

    (e) by reason of his having been convicted under section 88 of the National Defence Act of the offence of desertion; or

    (f) by reason of his having been absent without authority from his place of duty for such period immediately preceding his retirement as may be prescribed by regulation.

Clause 131: Sections 19 and 20 read as follows:

19. (1) A contributor who, not having reached retirement age, ceases to be a member of the regular force for any reason other than a reason described in subsection 17(1) or (2) or 18(1), (2) or (4) is, except as provided in section 20, entitled to a benefit determined as follows:

    (a) if he has served in the regular force for less than ten years, he is entitled to a return of contributions;

    (b) if he has served in the regular force for ten or more years but less than twenty years, he is entitled, at his option, to

      (i) a return of contributions, or

      (ii) a deferred annuity;

    (c) if he has served in the regular force for twenty or more years but less than twenty-five years, he is entitled,

      (i) in the case of an officer, to an immediate annuity reduced by five per cent for each full year by which his age at the time of his retirement is less than the retirement age applicable to his rank, or

      (ii) in the case of a contributor other than an officer, to an immediate annuity reduced by five per cent for each full year by which

        (A) the period of his service in the regular force is less than twenty-five years, or

        (B) his age at the time of his retirement is less than the retirement age applicable to his rank,

      whichever is the lesser; and

    (d) if he has served in the regular force for twenty-five or more years, he is entitled

      (i) in the case of an officer, to an immediate annuity reduced by five per cent for each full year by which his age at the time of his retirement is less than the retirement age applicable to his rank, or

      (ii) in the case of a contributor other than an officer, to an immediate annuity.

(2) For the purposes of subsection (1), there shall be included in computing the length of service of a contributor in the regular force, who has served in that force for ten or more years, any period of service on active service during time of war in the naval, army or air forces of Her Majesty raised by Canada.

20. A contributor who, not having reached retirement age, ceases to be a member of the regular force for any reason other than a reason described in subsection 17(1) or (2) or 18(1), (2) or (4) is, if he ceases to be a member of the regular force while on an indefinite period of service after having completed an intermediate engagement, entitled to the immediate annuity to which he would have been entitled on completing the intermediate engagement increased to such extent, not exceeding the immediate annuity to which he would be entitled if section 16 or subsection 18(1) applied to him, as may be prescribed by regulation.

Clause 132: New.

Clause 133: (1) Subsection 25(1) reads as follows:

25. (1) On the death of a contributor who, at the time of the contributor's death, was entitled under this Act to an annuity, the surviving spouse and children of the contributor are entitled to the following allowances, computed on the basis of the product obtained by multiplying the average annual pay received by the contributor during the period specified in subparagraph 15(1)(a)(ii), by the number of years of pensionable service to the contributor's credit, one one-hundredth of the product so obtained being hereinafter referred to as the ``basic allowance``:

    (a) in the case of a surviving spouse, an immediate annual allowance equal to the basic allowance, and

    (b) in the case of each child, an immediate annual allowance equal to one-fifth of the basic allowance or, if the contributor died without leaving a surviving spouse or the spouse is dead, two-fifths of the basic allowance,

but the total amount of the allowances paid under paragraph (b) shall not exceed four-fifths of the basic allowance or, if the contributor died without leaving a surviving spouse or the spouse is dead, eight-fifths of the basic allowance.

(2) Subsection 25(3) reads as follows:

(3) On the death of a contributor who served in the regular force for five or more years and was a member of the regular force at the time of his death, the surviving spouse and children of the contributor are entitled to the annual allowances to which they would have been entitled under subsection (1) had the contributor, immediately before his death, become entitled under this Act to an annuity.

(3) The relevant portion of subsection 25(5) reads as follows:

(5) On the death of a contributor who served in the regular force for less than five years and was a member of the regular force at the time of his death, the surviving spouse and children of the contributor, in any case where the contributor died leaving a surviving spouse or a child less than eighteen years of age, are entitled jointly to a death benefit equal to

Clause 134: Subsection 25.1(4) reads as follows:

(4) If a contributor who makes an election under subsection (1) is subsequently re-enrolled in or transferred to the regular force and required by subsection 5(1) to contribute to the Superannuation Account, the election is deemed to be revoked at the time determined in accordance with the regulations.

Clause 135: Section 26.1 is new. Section 26 and the heading before it read as follows:

Payments to Surviving Spouses, Children and Other Beneficiaries

26. Where, in this Part, it is provided that the surviving spouse and children of a contributor are entitled jointly to a return of contributions or to an amount described in paragraph 25(5)(b), the total amount shall be paid to the surviving spouse of the contributor, except that

    (a) if at the time of the death of the contributor all of the children were eighteen years of age or over and at the time the payment is to be made the spouse is dead or cannot be found, the total amount shall be paid to the children in equal shares;

    (b) if at the time of the death of the contributor any of the children were less than eighteen years of age, and the contributor died without leaving a surviving spouse or at the time the payment is to be made the spouse is dead or cannot be found, the total amount shall be paid to the children in such shares as the Minister considers equitable and proper under the circumstances, or to any of them, as the Minister may direct;

    (c) if any of the children who were less than eighteen years of age at the time of the death of the contributor are living apart from the surviving spouse of the contributor at the time the payment is to be made, the total amount shall be paid to the surviving spouse and the children so living apart in such shares as the Minister considers equitable and proper under the circumstances, or to the surviving spouse or any of the children so living apart, as the Minister may direct; and

    (d) if the contributor died without leaving any children and at the time the payment is to be made the spouse of the contributor is dead or cannot be found, or if the contributor died without leaving a surviving spouse and at the time the payment is to be made all of the children are dead or cannot be found, the total amount shall be paid

      (i) if the contributor named his estate as his beneficiary or named another beneficiary under Part II and the beneficiary survives the contributor, to the beneficiary,

      (ii) if the contributor is not survived by a beneficiary so named and the death of the contributor occurred while he was a member of the regular force, to the service estate of the contributor, and

      (iii) in any other case, to the estate of the contributor or, if less than one thousand dollars, as the Minister may direct.

Clause 136: Sections 28 to 30 read as follows:

28. Where a child of a contributor is entitled to an annual allowance or other amount under this Act, payment thereof shall, if the child is less than eighteen years of age, be made to the person having the custody and control of the child, or, where there is no person having the custody and control of the child, to such person as the Minister may direct, and for the purposes of this section the surviving spouse of the contributor, except where the child is living apart from the surviving spouse, shall be presumed, in the absence of evidence to the contrary, to be the person having the custody and control of such child.

29. (1) For the purposes of this Act, where a contributor dies and the contributor had been, for a period of not less than one year immediately before the contributor's death, residing with a person of the opposite sex to whom the contributor was not married, the Treasury Board may deem that person to be the surviving spouse of the contributor if, during that period, that person had been publicly represented by the contributor to be the spouse of the contributor, and may deem that person to have become married to the contributor on the day established by that person to the satisfaction of the Treasury Board as being the day on which the representation began.

(2) For the purposes of this Act, where a contributor dies and, at the time of death, the contributor was married to a person with whom the contributor had been residing for a period immediately before the marriage and who, during that period, had been publicly represented by the contributor to be the spouse of the contributor, the Treasury Board may deem that person to have become married to the contributor on the day established by that person to the satisfaction of the Treasury Board as being the day on which the representation began.

30. (1) If, on the death of a contributor, it appears to the Treasury Board that the surviving spouse of the contributor had immediately prior to the death of the contributor, been living apart from him, and if the Treasury Board so directs, having regard to the surrounding circumstances, including the welfare of any children involved, the surviving spouse shall be deemed, for the purpose of determining entitlement to any benefit payable to the surviving spouse and children of the contributor as such, to have predeceased the contributor.

(2) The Treasury Board may, in its discretion, notwithstanding any direction made by the Board under subsection (1), direct that an annual allowance payable to a surviving spouse be apportioned among several applicants for the allowance, in which case any direction made under subsection (1) shall be deemed to be revoked.

(3) Any direction made under subsection (2) may from time to time be reviewed and varied.

Clause 137: Subsection 31(1) reads as follows:

31. (1) Subject to section 25.1 but notwithstanding any other provision of this Act, the surviving spouse of a person is not entitled to any annual allowance under this Act if that person was over sixty years of age at the time of the marriage unless, after that time, that person became or continued to be a contributor.

Clause 138: Section 32 reads as follows:

32. Notwithstanding anything in this Act, where a contributor dies within one year after marriage, no annual allowance is payable to the surviving spouse of the contributor or the children of that marriage if the Treasury Board is not satisfied that the contributor was at the time of the marriage in such a condition of health as to justify the contributor in having an expectation of surviving for at least one year thereafter.

Clause 139: Section 34 reads as follows:

34. Notwithstanding anything in this Act, no person is entitled to an allowance under this Part by virtue of his being or being deemed to be the widower of a contributor if the contributor was not a member of the regular force on or after December 20, 1975, and section 3 does not apply in respect of this section.

Clause 140: Section 35.1 reads as follows:

35.1 Where, before the coming into force of this section, the surviving spouse was paid an amount pursuant to section 27 as that section read from time to time before the coming into force of this section, the Minister may retain that amount, in the manner prescribed by the regulations, by way of deduction from any subsequent payments on account of the resumption of payment of the annual allowance pursuant to section 34 of the Statute Law (Superannuation) Amendment Act, as if that amount were an amount that had been paid in error under this Act on account of an annual allowance, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof.

Clause 141: New.

Clause 142: (1) The relevant portion of subsection 41(1) reads as follows:

41. (1) Where a person who has become entitled to an annuity under this Act or a pension under Part V of the former Act by virtue of having served in the regular force is re-enrolled in or transferred to the regular force and becomes, or would have become, but for paragraph 5(2)(b) or (c), a contributor under this Act, whatever right or claim that he may have had to that annuity or pension, in this subsection referred to as the ``original annuity'', thereupon ceases and the period of service on which the original annuity was based may be counted by him as pensionable service for the purposes of this Act, except that

    (a) if, on subsequently ceasing to be a member of the regular force, he is not entitled under this Act to any benefit other than a return of contributions, the amount so returned shall not include any amount paid into the Superannuation Account to his credit at any time before the time of his re-enrollment in the regular force, and whatever right or claim that, but for this subsection, he would have had to the original annuity on subsequently ceasing to be a member of the regular force shall thereupon be restored to him; and

(2) Subsection 41(3) reads as follows:

(3) For the purposes of this Act, a person who, after having ceased to be required by section 5 to contribute to the Superannuation Account, is enrolled in or transferred to the reserve force shall, on the expiration of any continuous period of full-time service therein of one year, commencing on or after the day on which this subsection comes into force, be deemed to have become re-enrolled in the regular force at the end of that period.

(3) Subsection 41(5) reads as follows:

(5) A person who makes an election under subsection (4) shall pay into the Superannuation Account, at the time and in the manner prescribed by the regulations, an amount equal to the amount of the annuity or pension that the person received under this Act or the former Act during the period described in subsection (3).

Clause 143: (1) Subsections 42(1.1) and (1.2) are new. Subsection 42(1) reads as follows:

42. (1) Any person who becomes a contributor under this Act, having been enrolled as an officer of the regular force for a fixed period of service before so becoming a contributor, is entitled to count as pensionable service for the purposes of this Act any period of service in the regular force during which the contributor was so enrolled, except any such service described in clause 6(b)(ii)(D), if the contributor elects, within one year of becoming a contributor under this Act, to pay for that service, in which case the amount required by this Act to be paid by the contributor therefor is an amount equal to the greater of

    (a) six per cent of the pay authorized to be paid to the contributor in respect of that period or any portion thereof that was prior to April 1, 1969 plus

      (i) in the case of a male contributor, six and one-half per cent of the pay authorized to be paid to the contributor in respect of that period or any portion thereof after March 31, 1969, or

      (ii) notwithstanding section 3, in the case of a female contributor,

        (A) five per cent of the pay authorized to be paid to the contributor in respect of that period or any portion thereof after March 31, 1969 and prior to February 1, 1976,

      plus

        (B) six and one-half per cent of the pay authorized to be paid to the contributor in respect of that period or any portion thereof after February 1, 1976,

    minus, in respect of any period of service or portion thereof after 1965, an amount equal to the amount the contributor would have been required to contribute under the Canada Pension Plan in respect of the salary of the contributor during that period of service if that salary were the total amount of the income of the contributor for that period from pensionable employment as defined in that Act, and

    (b) the aggregate of

      (i) any amount withheld under regulations made pursuant to the National Defence Act from his pay in respect of that period,

      (ii) any amount paid to the contributor as a return of contributions under this Act in respect of that period, and

      (iii) an amount equal to

        (A) twenty-four twenty-fourths of any gratuity paid to the contributor under the regulations referred to in subparagraph (i) in respect of that period if the contributor becomes a contributor before the end of the month next following the month in which that period of service terminated,

        (B) twenty-three twenty-fourths of any such gratuity if the contributor becomes a contributor in the second month following the month in which that period of service terminated,

        (C) twenty-two twenty-fourths of such gratuity if the contributor becomes a contributor in the third month following the month in which that period of service terminated,

    and so on, by like progression, until the commencement of the twenty-fifth month following the month in which that period of service terminated,

together with simple interest at four per cent per annum from the time of the expiration of that period or the time of the payment of that gratuity, whichever is the later, until the time of making the election.

(2) Subsection 42(3) reads as follows:

(3) On any person described in subsection (1) becoming a contributor under this Act, any amount withheld as described in paragraph (1)(b) that has not previously been paid to the contributor shall be transferred to the Superannuation Account, and on the transfer of that amount the contributor shall be deemed to have elected to pay for the period of service in respect of which that amount was withheld and to have paid that amount as or on account of the amount required by this Act to be paid by the contributor for that service.

Clause 144: (1) The relevant portion of section 48 reads as follows:

48. On the making of any election under subsection 43(1) or 46(2) whereby the person so electing is required by this Act to pay for any period of service of the kind described in paragraph 43(2)(a), there shall be

(2) New.

Clause 145: Subsections 49.1(1.1) and (3.1) are new. Subsections 49.1(1) to (3) read as follows:

49.1 (1) The Minister may establish a committee, to be known as the Canadian Forces Pension Advisory Committee, the members of which are appointed by the Minister in accordance with subsection (2), to advise and assist the Minister on matters arising in connection with the administration of this Act.

(2) The membership of the Committee shall consist of

    (a) one person appointed from among contributors in receipt of an annuity under this Act who are nominated for appointment by an association that, in the opinion of the Minister, represents such contributors;

    (b) three persons appointed from among persons required to contribute to the Superannuation Account who are nominated for appointment by the Chief of the Defence Staff to represent persons serving in the Canadian Forces;

    (c) two persons appointed from among persons required to contribute to the Superannuation Account; and

    (d) two persons appointed from among persons required to contribute to the Superannuation Account or any other superannuation or pension account in the accounts of Canada.

(3) A member of the Committee shall be appointed to hold office for a term not exceeding three years.

Clause 146: (1) and (2) The relevant portion of section 50 reads as follows:

50. The Governor in Council may make regulations

    . . .

    (c) prescribing the extent to which and the circumstances under which any period of service of a person, whether before or after March 1, 1960, for which no pay was authorized to be paid or for which any forfeiture of pay or deduction from pay in respect of a period of suspension from duty was authorized to be made shall be counted as pensionable service for the purposes of this Act, prescribing the pay that shall be deemed to have been authorized to be paid to that person and to have been received by that person during that period, and prescribing, notwithstanding subsection 5(1) and section 75, the contributions to be made by that person to the Superannuation Account in respect of that pay;

    . . .

    (n) providing, notwithstanding anything in this Act, for the reduction by the Treasury Board of any annuity or pension payable under this Act or Part V of the former Act to or in respect of a person who, after his retirement from the regular force, is convicted of an indictable offence committed by him while a member of the regular force where, in the opinion of the Service Pension Board, the commission of the offence by him constituted misconduct in the performance of his duties as a member of the regular force;

    (o) providing for the payment out of the Superannuation Account, on the death of a contributor and on application to the Minister by or on behalf of any successor thereunder to whom any annual allowance becomes payable under this Act, of the whole or any part of such portion of any estate, legacy, succession or inheritance duties or taxes that are payable by the successor as is determined in accordance with the regulations to be attributable to that allowance, and prescribing the amounts by which and the manner in which any such allowance and any amount payable in any such case under any of sections 38 to 40 shall be reduced; and

Clause 147 : (1) and (2) Paragraphs 50.1(1)(d.1) to (d.4) are new. The relevant portion of subsection 50.1(1) reads as follows:

50.1 (1) The Governor in Council may make regulations

    (a) fixing an annual rate of pay for the purposes of paragraph 5(2)(d) or prescribing the manner of determining the annual rate of pay;

    . . .

    (d) notwithstanding any regulations made under paragraph 50(c), determining the amounts to be paid under paragraph 7(1)(l);

Clause 148: Section 52 reads as follows:

52. Notwithstanding anything in this Part, the Governor in Council may by regulation provide that the service of a former member of the House of Commons or a former Senator in respect of which he made contributions under the Members of Parliament Retiring Allowances Act may, to such extent and subject to such conditions as may be prescribed by the regulations, be counted by that former member or former Senator as pensionable service for the purposes of this Part, and for the transfer to the Superannuation Account of all contributions made by him under that Act, and any amounts credited under section 5 of that Act in respect of him.

Clause 149: Section 54 reads as follows:

54. All amounts required for the payment of benefits under this Part, including any pension referred to in subsection 59(1), shall be paid out of the Consolidated Revenue Fund and charged to the Superannuation Account.

Clause 150: The heading before section 55 reads as follows:

Amounts to be Credited to Account

Clause 151: (1) The relevant portion of section 55(1) reads as follows:

55. (1) There shall be credited to the Superannuation Account in each fiscal year

    (a) in respect of every month, an amount equal to the amount estimated by the President of the Treasury Board to be required to provide for the cost of the benefits that have accrued in respect of that month and that will become chargeable against the Account; and

(2) Subsections 55(2) to (6) read as follows:

(2) There shall be charged to the Supplementary Retirement Benefits Account established pursuant to the Supplementary Retirement Benefits Act and credited to the Superannuation Account

    (a) on the day on which this subsection comes into force, the amount by which

      (i) the aggregate of

        (A) all amounts that, pursuant to Part III, were credited to the Supplementary Retirement Benefits Account before that day, and

        (B) the interest credited pursuant to section 9 of the Supplementary Retirement Benefits Act on such portion of the balance in that Account as may be attributed to the amounts referred to in clause (A),

    exceeds

      (ii) the benefits and other amounts charged to the Supplementary Retirement Benefits Account in respect of contributors, before that day, pursuant to section 8 of the Supplementary Retirement Benefits Act; and

    (b) such interest as is credited pursuant to section 9 of the Supplementary Retirement Benefits Act, at any time on or after the day on which this subsection comes into force, on such portion of the balance in that Account as may be attributed to the amount referred to in paragraph (a).

(3) For the purpose of calculating the amount referred to in paragraph (1)(b), the Superannuation Account shall be deemed to have been established immediately before the day on which subsection (1) comes into force and the total amount standing to the credit of the Account on that day, together with the amounts credited to the Account pursuant to subsection (2), are deemed to constitute the balance to the credit of the Account immediately before that day.

(4) The President of the Treasury Board shall estimate the total cost of the benefits payable under this Part and Part III, as at the day on which this subsection comes into force, in respect of the pensionable service to the credit of contributors before that day.

(5) There shall be credited to the Superannuation Account, on the day on which this subsection comes into force, such amount as in the opinion of the President of the Treasury Board will, together with the amount estimated by the President of the Treasury Board to be to the credit of the Account at that time, meet the total cost estimated pursuant to subsection (4).

(6) Following the laying before Parliament of any actuarial valuation report pursuant to section 56 that relates to the state of the Superannuation Account, there shall be credited to the Account, at the time and in the manner set out in subsection (7), such amount as in the opinion of the President of the Treasury Board will, at the end of the fifteenth fiscal year following the tabling of that report or at the end of such shorter period as the President of the Treasury Board may determine, together with the amount that the President of the Treasury Board estimates will be to the credit of the Account at that time, meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that is to the credit of contributors.

(3) Subsections 55(9) to (14) are new. Subsection 55(8) reads as follows:

(8) Where a subsequent actuarial valuation report is laid before Parliament before the end of the period applicable under subsection (7), the instalments remaining to be credited in that period may be adjusted to reflect the amount that is estimated by the President of the Treasury Board, at the time that subsequent report is laid before Parliament, to be the amount that will, together with the amount that the President of the Treasury Board estimates will be to the credit of the Account at the end of that period, meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that is to the credit of contributors.

Clause 152: New.

Clause 153: Sections 56 and 57 read as follows:

56. In accordance with the Public Pensions Reporting Act, a cost certificate, an actuarial valuation report and an assets report on the state of the Superannuation Account shall be prepared, filed with the Minister designated under that Act and laid before Parliament.

Annual Report

57. The Minister shall cause to be laid before each House of Parliament each year a report on the administration of this Part and Part III during the preceding fiscal year, including a statement showing the amounts paid into and out of the Superannuation Account during that year, by appropriate classifications, the number of contributors and the number of persons receiving benefits under this Part and Part III, together with such additional information as the Governor in Council requires.

Clause 154: New.

Clause 155: (1) The definitions ``basic benefit'' and ``salary'' in subsection 60(1) read as follows:

``basic benefit'', with respect to a participant, means an amount equal to twice the salary of the participant, if that amount is a multiple of two hundred and fifty dollars, or an amount equal to the nearest multiple of two hundred and fifty dollars above twice the salary of the participant, if the first-mentioned amount is not a multiple of two hundred and fifty dollars, subject to a reduction of ten per cent, to be made as of such time as the regulations prescribe, for every year of age in excess of sixty attained by the participant, except that

      (a) in the case of an elective participant who has not made an election under subsection 64(2) and who, on ceasing to be a member of the regular force or on ceasing to be employed in the Public Service, was entitled under Part I or under the Defence Services Pension Continuation Act, chapter D-3 of the Revised Statutes of Canada, 1970, to an immediate annuity or pension, the basic benefit shall not be less than five thousand dollars, and

      (b) in the case of an elective participant who makes an election under subsection 64(2), the basic benefit shall be five hundred dollars;

``salary'' means

      (a) in the case of a participant who is a member of the regular force or a member of the reserve force described in paragraph (b) of the definition ``participant'', the greater of

        (i) the pay of that participant, expressed in terms of an annual rate, and

        (ii) three thousand dollars per annum if his rank is lower than warrant officer, or five thousand dollars per annum if his rank is warrant officer or higher, and

      (b) in the case of an elective participant, the greater of

        (i) the pay of that participant at the time he ceased to be a member of the regular force, expressed in terms of an annual rate, and

        (ii) three thousand dollars per annum if his rank at the time he ceased to be a member of the regular force was lower than chief petty officer in the Royal Canadian Navy, warrant officer in the Canadian Army or Royal Canadian Air Force or warrant officer in the Canadian Forces, or five thousand dollars per annum if his rank at that time was chief petty officer or higher in the Royal Canadian Navy, warrant officer or higher in the Canadian Army or Royal Canadian Air Force or warrant officer or higher in the Canadian Forces,

      except that where a retroactive increase is authorized in the pay of that participant, the increase shall be deemed to have commenced to have been received by him on such day as the regulations prescribe.

(2) The relevant portion of the definition ``participant'' in subsection 60(1) reads as follows:

``participant'' means

      . . .

      (d) a person not coming within paragraph (a) or (c) who has made an election under section 62 and to whom the basic benefit in the amount of five thousand dollars referred to in paragraph (a) of the definition ``basic benefit'', or to whom the basic benefit of five hundred dollars referred to in paragraph (b) of that definition, applies without contribution under this Part by the participant therefor, and

      . . .

    but does not include a person described in paragraph 62(1)(b) of the Public Service Superannuation Act who elected not to come under the provisions of Part II of that Act;

Clause 156: Section 61 reads as follows:

61. Where, in any circumstances, the Treasury Board may, for any purpose of the Defence Services Pension Continuation Act, chapter D-3 of the Revised Statutes of Canada, 1970, or Part I of this Act, direct that a person be deemed to be the surviving spouse of a contributor, that the surviving spouse of a contributor be deemed to have predeceased him or that any pension or annual allowance payable to a surviving spouse be apportioned, in similar circumstances, the Treasury Board may, for the purpose of determining entitlement under this Part to any benefit payable to the surviving spouse of a participant as such, direct that a person be deemed to be the surviving spouse of the participant or that the surviving spouse of the participant be deemed to have predeceased him, as the case may be, and may apportion the benefit payable under this Part.

Clause 157: Sections 64 and 65 read as follows:

64. (1) Where the basic benefit of an elective participant, who, on ceasing to be a member of the regular force, was entitled under Part I or under the Defence Services Pension Continuation Act, chapter D-3 of the Revised Statutes of Canada, 1970, to an immediate annuity or pension exceeds five thousand dollars, the amount of the basic benefit shall, if the participant so elects, be reduced to five thousand dollars.

(2) For the purposes of this Part, an elective participant who has made an election under section 64 of this Act, as it read from time to time before the day on which this section comes into force, is, beginning on that day, deemed to have elected to reduce the basic benefit of the participant to five thousand dollars unless, within one year after that day, the participant elects not to be deemed to have so elected.

(3) An election made under subsection (1) or (2) is irrevocable.

Contributions

65. Every participant shall contribute to the Consolidated Revenue Fund at the rate of five cents per month for every two hundred and fifty dollars in the amount of the participant's salary or, in the case of elective participants or participants who are absent from duty, such contribution as the regulations prescribe.

Clause 158: Subsection 66(1) reads as follows:

66. (1) On the death of a participant, there shall be paid to the persons and in the manner specified in this Part, the amount of the basic benefit of the participant with respect to which the last contribution payable under this Part by the participant was calculated.

Clause 159: New.

Clause 160: The relevant portion of subsection 68(1) reads as follows:

68. (1) There shall be an account in the accounts of Canada to be known as the Regular Force Death Benefit Account to which shall be credited the following:

    . . .

    (b) an amount equal to the amount estimated by the President of the Treasury Board to be sufficient to cover the cost of the benefits that will become chargeable against the Account but not less than the aggregate of

      . . .

      (iii) the amount of the single premium determined under the schedule in respect of each participant in the case of whom the basic benefit in the amount of five thousand dollars referred to in paragraph (a) of the definition ``basic benefit'' in subsection 60(1), or the basic benefit in the amount of five hundred dollars referred to in paragraph (b) of that definition, applies without contribution under this Part by the participant therefor; and

Clause 161: (1) to (3) The relevant portion of subsection 73(1) reads as follows:

73. (1) The Governor in Council may make regulations for carrying the purposes and provisions of this Part into effect and, without restricting the generality of the foregoing, may make regulations

    (a) prescribing the times as of which the reductions referred to in the definition ``basic benefit'' in subsection 60(1) shall be made;

    (b) prescribing the manner and time of payment of contributions;

    (c) prescribing the contributions to be made by elective participants and by participants who are absent from duty and prescribing the conditions on which participants who are absent from duty may continue to be participants;

    . . .

    (g) authorizing payment, with the approval of the Minister, out of any benefit payable to the surviving spouse, beneficiary or estate of a deceased participant, of reasonable expenses incurred for the maintenance, medical care or burial of the participant;

    . . .

    (l) prescribing, for the purpose of the definition ``salary'' in subsection 60(1), the day on which a retroactive increase in pay shall be deemed to have commenced to have been received by a participant; and

(4) New.

Clause 162: (1) The definition ``contributor'' in section 74 reads as follows:

``contributor'' means a member of the regular force to whom this Act or the Defence Services Pension Continuation Act, chapter D-3 of the Revised Statutes of Canada, 1970, applies;

(2) The relevant portion of the definition ``recipient'' in section 74 reads as follows:

``recipient'' means

      . . .

      (e) a person who is in receipt of the pension by reason of being a surviving spouse, a child or an orphan.

Clause 163: Section 75 reads as follows:

75. Every contributor is required to contribute to the Superannuation Account, by reservation from pay or otherwise, in addition to any other amount required under this Act, an amount equal to one per cent of the contributor's pay.

Clause 164: Subsection 76(1) reads as follows:

76. (1) A contributor who elects, pursuant to section 6, 42 or 43, to count as pensionable service any period of elective service specified in those sections, or any portion thereof, that is after March 31, 1970 is required to contribute to the Superannuation Account in respect thereof, in addition to any other amount required under this Act, an amount calculated in the manner and in respect of the pay described in those sections

    (a) in the case of any period of elective service or portion thereof that is after March 31, 1970 and before January 1, 1977, at the rate set out in subsection 75(1) of this Act as it read immediately before the coming into force of this paragraph; and

    (b) in the case of any period of elective service or portion thereof that is after December 31, 1976, at the rate set out in section 75.

Clause 165: The relevant portion of subsection 78(3) reads as follows:

(3) For the purposes of this section,

    . . .

    (b) the retirement year or retirement month of a person who is in receipt of a pension by reason of being a surviving spouse, a child or an orphan, is the retirement year or retirement month, as the case may be, of the person in respect of whom or in respect of whose service the pension is payable.

Clause 166: Subsection 79(2) reads as follows:

(2) For greater certainty, all amounts required for the payment of supplementary benefits shall be paid out of the Consolidated Revenue Fund and charged to the Superannuation Account.

Clause 167: The relevant portion of subsection 80(1) reads as follows:

80. (1) The Governor in Council may, for the purpose of enabling the pension plan provided by this Act to conform with any provision of section 147.1 of the Income Tax Act and Part LXXXV of the Income Tax Regulations, as they read on January 15, 1992, make regulations

Clause 168: The schedule provides for a single premium for $500 of death benefit coverage for life. These amounts would be prescribed by regulation further to the amendment proposed in clause 160.

Royal Canadian Mounted Police Superannuation Act

Clause 169: (1) The definitions ``child'' and ``contributor'' in subsection 3(1) read as follows:

``child'' includes an illegitimate child, a stepchild and an adopted child;

``contributor'' means a person who is required by section 5 to contribute to the Superannuation Account, and includes, unless the context otherwise requires,

      (a) a person who has ceased to be so required to contribute to the Superannuation Account, and

      (b) for the purposes of sections 15 to 19 and 22, a contributor under Part V of the former Act who has been granted a pension or annual allowance under that Act or has died;

(2) New.

Clause 170: Subsection 4(1) reads as follows:

4. (1) Subject to this Part, an annuity or other benefit specified in this Act shall be paid to or in respect of every person who, being required to contribute to the Superannuation Account in accordance with this Part, ceases to be a member of the Force or dies, which annuity or other benefit shall, subject to this Part, be based on the number of years of pensionable service to the credit of that person.

Clause 171: Section 5 reads as follows:

5. (1) Every member of the Force who

    (a) was a contributor under Part V of the former Act immediately before April 1, 1960, or

    (b) was not a member of the Force immediately before April 1, 1960 or, having been a member of the Force at that time, thereafter ceased to be a member of the Force and subsequently was re-appointed to or re-enlisted in the Force,

is required to contribute to the Superannuation Account, by reservation from pay or otherwise, an amount equal to six and one-half per cent of his pay minus an amount equal to the amount he would be required to contribute under the Canada Pension Plan in respect of that pay if that pay, expressed in terms of an annual rate, were the total amount of his income for the year from pensionable employment as defined in that Act.

(2) Notwithstanding anything in this Part,

    (a) no person shall contribute to the Superannuation Account as required by subsection (1) after that person has to his credit a period of pensionable service totalling thirty-five years;

    (b) no person who has become entitled to or has been granted any superannuation or pension benefit of a kind prescribed by the regulations, payable out of the Consolidated Revenue Fund or out of any account or fund in the accounts of Canada other than the Superannuation Account, shall contribute to the Superannuation Account as required by subsection (1) after that person has to his credit a period of pensionable service totalling thirty-five years less the number of years service on which that superannuation or pension benefit is based; and

    (c) no person shall, in respect of any period of service of that person as a member of the Force on or after the day on which this paragraph comes into force, contribute to the Superannuation Account in respect of any portion of that person's annual rate of pay that is in excess of such annual rate of pay as is fixed by or determined in the manner prescribed by the regulations.

Clause 172: (1) to (4) Clauses 6(a)(ii)(C) and (b)(ii)(F.1) and (L) to (P) are new. The relevant portion of section 6 reads as follows:

6. Subject to this Part, the following service may be counted by a contributor as pensionable service for the purposes of this Part:

    (a) non-elective service, comprising,

      . . .

      (ii) in the case of any contributor,

        (A) any period during which he is required by section 5 to contribute to the Superannuation Account, and

        . . .

    (b) elective service, comprising,

      . . .

      (ii) in the case of any contributor,

Clause 173: Subsection 6.1(2) reads as follows:

(2) Notwithstanding subsection 5(1), a contributor who makes an election under subsection (1) is not required to contribute to the Superannuation Account under subsection 5(1) in respect of the portion of the period to which the election relates.

Clause 174: (1) and (2) The relevant portion of subsection 7(1) reads as follows:

7. (1) Subject to section 8, a contributor who is entitled under this Part to count as pensionable service any period of elective service specified in paragraph 6(b) is required to pay, in respect thereof, as follows:

    . . .

    (d) in respect of any period specified in clause 6(b)(ii)(B), an amount equal to the amount that he would have been required to contribute had he, during that period, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rates set forth in subsection 5(1) as it read on December 31, 1965, in respect of that period or that portion thereof,

      (ii) where that period or any portion thereof was after 1965 and prior to April 1, 1969, in the manner and at the rates set forth in subsection 5(1) as it read immediately prior to April 1, 1969, in respect of that period or that portion thereof, and

      (iii) where that period or any portion thereof was after March 31, 1969, in the manner and at the rates set forth in subsection 5(1), in respect of that period or that portion thereof,

    in respect of pay equal to the pay authorized to be paid to him on the most recent occasion on which he became a contributor under this Act, together with interest;

    (e) in respect of any period specified in clause 6(b)(ii)(C), (D), (E), (F) or (G), an amount equal to the amount that he would have been required to contribute had he, during that period, been required to contribute

      (i) where that period or any portion thereof was prior to 1966, in the manner and at the rates set forth in subsection 5(1) as it read on December 31, 1965, in respect of that period or that portion thereof,

      (ii) where that period or any portion thereof was after 1965 and prior to April 1, 1969, in the manner and at the rates set forth in subsection 5(1) as it read immediately prior to April 1, 1969, in respect of that period or that portion thereof, and

      (iii) where that period or any portion thereof was after March 31, 1969, in the manner and at the rates set forth in subsection 5(1) in respect of that period or that portion thereof,

    in respect of pay equal to the pay authorized to be paid to him on the most recent occasion on which he became a contributor under this Act, together with interest;

    . . .

    (i) in respect of any period described in clause 6(b)(ii)(K), an amount determined in accordance with the regulations.

Clause 175: (1) The relevant portion of subsection 8(2) reads as follows:

(2) An election under this Part is void in so far as it is

    . . .

    (b) an election to pay for any period of service described in clause 6(b)(ii)(J) or (K), unless the elector has passed a medical examination, as prescribed by the regulations, within such time immediately before or after the making of the election as is prescribed by the regulations;

    (b.1) an election to surrender an annuity, annual allowance or pension under subsection 24(5) on or after the day on which this paragraph comes into force, unless the elector has passed a medical examination, as prescribed by the regulations, within such time immediately before or after the making of the election as is prescribed by the regulations; or

(2) New.

(3) Subsection 8(8) is new. Subsection 8(7) reads as follows:

(7) Where any amount payable by a contributor into the Superannuation Account by reservation from pay and allowances or otherwise has become due, but remains unpaid at the time of his death, that amount, with interest at four per cent per annum from the time it became due, may be recovered in accordance with the regulations from any allowance payable under this Part to the surviving spouse or children of the contributor, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof, and any amount so recovered shall be credited to the Superannuation Account and shall be deemed, for the purposes of the definition ``return of contributions'' in subsection 9(1), to have been paid into that Account by the contributor.

Clause 176: (1) The definitions ``cash termination allowance'' and ``return of contributions'' in subsection 9(1) read as follows:

``cash termination allowance'' means an amount equal to one month's pay for each year of pensionable service to the credit of the contributor, computed on the basis of the rate of pay authorized to be paid to him at the time he ceases to be a member of the Force, minus an amount equal to the amount by which

      (a) the total amount the contributor would have been required to contribute to the Superannuation Account up to the time he ceases to be a member of the Force, other than interest or charges for payments by instalments, in respect of service after 1965, if he had contributed on the basis of the rates set forth in subsection 5(1) as it read on December 31, 1965,

    exceeds

      (b) the total amount the contributor was required to contribute to the Superannuation Account up to the time he ceases to be a member of the Force, other than interest or charges for payments by instalments, in respect of service after 1965;

``return of contributions'' means a return of

      (a) the amount paid by the contributor into the Superannuation Account but not including any amount so paid pursuant to subsection 39(7) of the Public Service Superannuation Act, and

      (b) any amount paid by him into any other account or fund, together with interest, if any, that has been transferred to the Superannuation Account,

    to the extent that the amount remains to his credit in the Superannuation Account together with interest, if any, calculated pursuant to subsection (6).

(2) Subsection 9(3) reads as follows:

(3) Where an annual allowance becomes payable under this Part to a surviving spouse or child, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, until the end of the month during which the recipient dies or otherwise ceases to be entitled to receive an annual allowance, and any amount in arrears thereof that remains unpaid at any time after the death of the recipient shall be paid to the estate of the recipient or, if less than one thousand dollars, as the Minister may direct.

(3) Subsection 9(6) reads as follows:

(6) Where, at any time after December 31, 1974, a contributor ceases to be a member of the Force, the Minister shall

    (a) determine the aggregate of all amounts referred to in paragraphs (a) and (b) of the definition ``return of contributions'' in subsection (1) that have been paid by the contributor into the Superannuation Account or transferred to the Superannuation Account to the credit of the contributor

      (i) prior to 1974, and

      (ii) during each year, hereinafter called a ``contribution year'', subsequent to 1973, in which contributions were made by or on behalf of the contributor to the Superannuation Account,

    and that have not previously been paid to him as a return of contributions or otherwise; and

    (b) calculate interest at the rate of four per cent compounded annually

      (i) on the aggregate amount determined in respect of the period referred to in subparagraph (a)(i), from December 31, 1973 to December 31 of the year immediately preceding the year in which he ceased to be a member of the Force, and

      (ii) on the aggregate amount determined in respect of each contribution year referred to in subparagraph (a)(ii), from December 31 of that year to December 31 of the year immediately preceding the year in which he ceased to be a member of the Force.

(4) The relevant portion of subsection 9(7) reads as follows:

(7) Subject to Part II of the Garnishment, Attachment and Pension Diversion Act and to the Pension Benefits Division Act,

    . . .

    (b) a benefit to which a contributor, surviving spouse or child is entitled under this Part or Part III is not capable of being surrendered or commuted during the lifetime of that person and any transaction that purports to so surrender or commute any such benefit is void; and

Clause 177: Subsection 10(5) reads as follows:

(5) For the purposes of subparagraphs (1)(a)(ii) and (iii), a period of service during which a person continues to be a member of the Force after that person has, pursuant to paragraph 5(2)(a) or (b), ceased to contribute to the Superannuation Account is deemed to be a period of pensionable service to the credit of that person.

Clause 178: (1) Subsection 11(1) reads as follows:

11. (1) A contributor who, having reached retirement age, ceases to be a member of the Force for any reason other than disability or misconduct is entitled to a benefit determined as follows:

    (a) if he has served in the Force for less than ten years, he is entitled to

      (i) a return of contributions, or

      (ii) a cash termination allowance,

    whichever is the greater; and

    (b) if he has served in the Force for ten or more years, he is entitled to an immediate annuity.

(2) Subsection 11(2) reads as follows:

(2) A contributor who is compulsorily retired from the Force by reason of having become disabled is entitled to a benefit determined as follows:

    (a) if he has to his credit less than ten years of pensionable service, he is entitled to

      (i) a return of contributions, or

      (ii) a cash termination allowance,

    whichever is the greater; and

    (b) if he has to his credit ten or more years of pensionable service, he is entitled to an immediate annuity.

(3) Subsection 11(3) reads as follows:

(3) A contributor who, not having reached retirement age, is compulsorily retired from the Force to promote economy or efficiency is entitled to a benefit determined as follows:

    (a) if he has served in the Force for less than ten years, he is entitled to a return of contributions;

    (b) if he has served in the Force for ten or more years but less than twenty years, he is entitled to

      (i) a return of contributions,

      (ii) a deferred annuity, or

      (iii) in the case of a contributor whose retirement is due to a reduction in the total number of members of the Force, and in any other case in the discretion of the Treasury Board, an immediate annuity, reduced, until such time as the contributor reaches sixty-five years of age but not thereafter, by five per cent for each full year not exceeding six by which the period of his service in the Force is less than twenty years,

    at his option; and

    (c) if he has served in the Force for twenty or more years, he is entitled to an immediate annuity.

(4) The relevant portion of subsection 11(4) reads as follows:

(4) A contributor who is compulsorily retired from the Force by reason of misconduct is entitled to

    . . .

    (b) in the discretion of the Treasury Board, the whole or any part specified by the Treasury Board of any benefit to which he would have been entitled under this section if

      (i) in the case of a contributor who at the time of his retirement had reached retirement age, he had ceased to be a member of the Force for any reason other than disability or misconduct, or

      (ii) in the case of a contributor who at the time of his retirement had not reached retirement age, he had been compulsorily retired from the Force to promote economy or efficiency due to a reduction in the total number of members of the Force,

    except that in no case shall the capitalized value thereof be less than the amount of the return of contributions referred to in paragraph (a).

(5) Subsection 11(5) reads as follows:

(5) A contributor who, not having reached retirement age, ceases to be a member of the Force for any reason other than disability, misconduct or to promote economy or efficiency is entitled to a benefit determined as follows:

    (a) if the contributor has served in the Force for less than ten years, the contributor is entitled to a return of contributions;

    (b) if the contributor has served in the Force for ten or more years but less than twenty years, the contributor is entitled to a return of contributions or a deferred annuity at the contributor's option;

    (c) if the contributor has served in the Force for twenty or more years but less than twenty-five years, the contributor is entitled to an annual allowance payable immediately on the contributor ceasing to be a member of the Force reduced by five per cent for each full year by which

      (i) the period of the contributor's service in the Force is less than twenty-five years, or

      (ii) the contributor's age at the time of retirement is less than the retirement age applicable to the contributor's rank,

    whichever is the lesser; and

    (d) if the contributor has served in the Force for twenty-five years or more, the contributor is entitled to an immediate annuity.

(6) Subsection 11(6) reads as follows:

(6) For the purposes of this section,

    (a) a member of the Force who is retired from the Force on the expiration of a period of engagement shall be deemed to have retired from the Force

      (i) compulsorily, if he offered to re-engage in the Force on the expiration of that period and his offer was refused, and

      (ii) voluntarily, if he did not offer to re-engage in the Force on the expiration of that period; and

    (b) a member of the Force not holding a rank in the Force is entitled to an immediate annuity if that person has served in the Force for thirty-five years or more or, in any other case, to a benefit described in subsection (7), (8), (9) or (10).

(7) Subsection 11(12) is new. Subsections 11(7) to (11) read as follows:

(7) Where a contributor who is a member of the Force not holding a rank in the Force, having reached retirement age, ceases to be a member of the Force for any reason other than misconduct, he is entitled,

    (a) if at the time he ceases to be a member of the Force he has to his credit less than five years of pensionable service, to a return of contributions; and

    (b) if at the time he ceases to be a member of the Force he has to his credit five or more years of pensionable service, to an immediate annuity.

(8) Where a contributor who is a member of the Force not holding a rank in the Force is compulsorily retired from the force by reason of having become disabled, he is entitled,

    (a) if at the time he is so compulsorily retired he has to his credit less than five years of pensionable service, to

      (i) a return of contributions, or

      (ii) a cash termination allowance,

    whichever is the greater; and

    (b) if at the time he is so compulsorily retired he has to his credit five or more years of pensionable service, to an immediate annuity.

(9) Where a contributor who is a member of the Force not holding a rank in the Force ceases, after having served less than thirty-five years but not less than five years in the Force, to be a member of the Force, for any reason other than disability or misconduct, he is entitled,

    (a) if at the time he ceases to be a member of the Force he has reached fifty-five years of age and has to his credit not less than thirty years of pensionable service, to an annuity payable immediately on his ceasing to be a member of the Force; or

    (b) in any other case, at his option,

      (i) to a deferred annuity, or

      (ii) if at the time he ceases to be a member of the Force he has reached fifty years of age and has to his credit not less than twenty-five years of pensionable service, to an annual allowance, payable immediately on his exercising his option, equal to the amount of the deferred annuity referred to in subparagraph (i) reduced by the product obtained by multiplying five per cent of the amount of that annuity by

        (A) fifty-five minus his age in years, to the nearest one-tenth of a year, at the time he exercises his option, or

        (B) thirty minus the number of years, to the nearest one-tenth of a year, of pensionable service to his credit,

      whichever is the greater,

      (iii) if at the time he ceases to be a member of the Force, he has reached fifty-five years of age, has been a member of the Force for a period of or for periods totalling at least ten years and does not voluntarily cease to be a member of the Force, to an annual allowance, payable immediately on his so ceasing to be a member of the Force, equal to the amount of the deferred annuity referred to in subparagraph (i) reduced by the product obtained by multiplying

        (A) five per cent of the amount of that annuity

      by

        (B) thirty minus the number of years, to the nearest one-tenth of a year, of pensionable service to his credit,

      except that in any such case the whole or any part of the reduction provided for by this subparagraph may be waived by the Treasury Board,

      (iv) to an annual allowance, payable

        (A) immediately on his exercising his option, in the case of a contributor fifty or more years of age, or

        (B) on his reaching fifty years of age, in the case of a contributor who exercises his option when he is less than fifty years of age,

      which allowance shall be equal to the amount of the deferred annuity referred to in subparagraph (i) reduced by the product obtained by multiplying

        (C) five per cent of the amount of that annuity

      by

        (D) sixty minus his age in years, to the nearest one-tenth of a year, at the time the allowance becomes payable, or

      (v) to a return of contributions.

(10) Where a contributor who is a member of the Force not holding a rank in the Force is compulsorily retired from the Force by reason of misconduct, he is entitled

    (a) to a return of contributions; or

    (b) with the consent of the Treasury Board, to the whole or any part specified by the Treasury Board of any benefit to which he would have been entitled under subparagraph (5)(b)(ii) or under subsection (7), (8) or (9) had he, at the time of his dismissal, ceased to be a member of the Force for a reason other than misconduct, except that in no case shall the capitalized value thereof be less than the return of contributions referred to in paragraph (a).

(11) Notwithstanding anything in this section, except as provided for in subsection (2), (7), (8), (9) or (10), a contributor who ceases to be a member of the Force, having to his credit less than ten years of pensionable service, is entitled only to a return of contributions.

Clause 179: New.

Clause 180: (1) Subsection 13(1) reads as follows:

13. (1) On the death of a contributor who, at the time of the contributor's death, was entitled under this Part to an annuity or annual allowance, the surviving spouse and children of the contributor are entitled to the following allowances, computed on the basis of the product obtained by multiplying the average annual pay received by the contributor during the period specified in subparagraph 10(1)(a)(ii), by the number of years of pensionable service to the contributor's credit, one one-hundredth of the product so obtained being hereinafter referred to as the ``basic allowance``:

    (a) in the case of the surviving spouse, an immediate annual allowance equal to the basic allowance, and

    (b) in the case of each child, an immediate annual allowance equal to one-fifth of the basic allowance or, if the contributor died without leaving a surviving spouse or the surviving spouse is dead, two-fifths of the basic allowance,

but the total amount of the allowances paid under paragraph (b) shall not exceed four-fifths of the basic allowance or, if the contributor died without leaving a surviving spouse or the surviving spouse is dead, eight-fifths of the basic allowance.

(2) Subsection 13(3) reads as follows:

(3) On the death of a contributor who was a member of the Force at the time of his death, having to his credit five or more years of pensionable service, the surviving spouse and children of the contributor are entitled to the annual allowances to which they would have been entitled under subsection (1) had the contributor, immediately before his death, become entitled under this Part to an annuity or annual allowance.

Clause 181: The relevant portion of section 14 reads as follows:

14. On the death of a contributor who was a member of the Force at the time of his death, having to his credit less than five years of pensionable service, the surviving spouse and children of the contributor, in any case where the contributor died leaving a surviving spouse or a child less than eighteen years of age, are entitled jointly to a death benefit equal to

Clause 182: Subsection 14.1(4) reads as follows:

(4) If a contributor who makes an election under subsection (1) is subsequently re-appointed to or re-enlisted in the Force and required by subsection 5(1) to contribute to the Superannuation Account, the election is deemed to be revoked at the time determined in accordance with the regulations.

Clause 183: Section 15.1 is new. Section 15 and the heading before it read as follows:

Payments to Surviving Spouses, Children and Other Beneficiaries

15. Where, in this Part, it is provided that the surviving spouse and children of a contributor are entitled jointly to a return of contributions or an amount described in paragraph 14(b), the total amount thereof shall be paid to the surviving spouse of the contributor except that

    (a) if at the time of the death of the contributor all of the children were eighteen years of age or over and at the time the payment is to be made the surviving spouse is dead or cannot be found, the total amount shall be paid to the children in equal shares;

    (b) if at the time of the death of the contributor any of the children were less than eighteen years of age, and the contributor died without leaving a surviving spouse or at the time the payment is to be made the surviving spouse is dead or cannot be found, the total amount shall be paid to the children in such shares as the Minister considers equitable and proper under the circumstances, or to any of them, as the Minister may direct;

    (c) if any of the children who were less than eighteen years of age at the time of the death of the contributor are living apart from the contributor's surviving spouse at the time the payment is to be made, the total amount shall be paid to the surviving spouse and the children so living apart from the surviving spouse in such shares as the Minister considers equitable and proper under the circumstances, or to the surviving spouse or any of the children so living apart, as the Minister may direct; and

    (d) if the contributor died without leaving any children and at the time the payment is to be made the contributor's surviving spouse is dead or cannot be found, or if the contributor died without leaving a surviving spouse and at the time the payment is to be made all of the children are dead or cannot be found, the total amount shall be paid

      (i) if the contributor, pursuant to any regulations made under section 26, named his estate as his beneficiary or named another beneficiary who may be named under those regulations and the beneficiary survives the contributor, to the beneficiary, and

      (ii) in any other case, to the estate of the contributor or, if less than one thousand dollars, as the Minister may direct.

Clause 184: Subsection 17(2) reads as follows:

(2) For the purposes of subsection (1), the surviving spouse of the contributor, except where the child is living apart from the surviving spouse, shall be presumed, in the absence of evidence to the contrary, to be the person having the custody and control of the child.

Clause 185: Section 18 reads as follows:

18. (1) For the purposes of this Part, where a contributor dies and the contributor had been, for a period of not less than one year immediately before the contributor's death, residing with a person of the opposite sex to whom the contributor was not married, the Treasury Board may deem that person to be the surviving spouse of the contributor if, during that period, that person had been publicly represented by the contributor to be the spouse of the contributor, and may deem that person to have become married to the contributor on the day established by that person to the satisfaction of the Treasury Board as being the day on which the representation began.

(1.1) For the purposes of this Part, where a contributor dies and, at the time of death, the contributor was married to a person with whom the contributor had been residing for a period immediately before the marriage and who, during that period, had been publicly represented by the contributor to be the spouse of the contributor, the Treasury Board may deem that person to have become married to the contributor on the day established by that person to the satisfaction of the Treasury Board as being the day on which the representation began.

(2) If, on the death of a contributor, it appears to the Treasury Board that the surviving spouse of the contributor had, immediately prior to his death, been living apart from him, and if the Treasury Board so directs, having regard to the surrounding circumstances, including the welfare of any children involved, the surviving spouse shall be deemed, for the purpose of determining entitlement to any benefit payable to the surviving spouse and children of the contributor as such, to have predeceased the contributor.

(3) The Treasury Board may, in its discretion, notwithstanding any direction made by the Board under subsection (2), direct that an annual allowance payable to a surviving spouse be apportioned among several applicants for the allowance, in which case any direction made under subsection (2) shall be deemed to be revoked.

(4) Any direction made under subsection (3) may be reviewed and varied.

Clause 186: (1) Subsection 19(1) reads as follows:

19. (1) Subject to section 14.1 but notwithstanding any other provision of this Part, the surviving spouse of a person is not entitled to any annual allowance under this Part if that person was over sixty years of age at the time of the marriage unless, after that time, that person became or continued to be a contributor.

(2) Subsection 19(3) reads as follows:

(3) Notwithstanding anything in this Part, where a contributor dies within one year after marriage, no annual allowance is payable to the surviving spouse or children of that marriage if the Treasury Board is not satisfied that the contributor was at the time of marriage in such a condition of health as to justify him in having an expectation of surviving for at least one year thereafter.

(3) Subsection 19(6) reads as follows:

(6) Notwithstanding anything in this Act, no person is entitled to an allowance under this Part by virtue of his being or being deemed to be the widower of a contributor if the contributor was not a member of the Force on or after December 20, 1975, and section 2 does not apply in respect of this subsection.

Clause 187: Section 19.1 reads as follows:

19.1 Where, before the coming into force of this section, the surviving spouse was paid an amount pursuant to section 16 as that section read from time to time before the coming into force of this section, the Minister may retain that amount, in the manner prescribed by the regulations, by way of deduction from any subsequent payments on account of the resumption of payment of the annual allowance pursuant to section 34 of the Statute Law (Superannuation) Amendment Act, as if that amount were an amount that had been paid in error under this Act on account of an annual allowance, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof.

Clause 188: New.

Clause 189: The relevant portion of section 23 reads as follows:

23. Where a person who has become entitled to an annuity or annual allowance under this Part or a pension under Part V of the former Act by virtue of having served in the Force is re-appointed to or re-enlisted in the Force and becomes, or would have become, but for subsection 5(2), a contributor under this Part, whatever right or claim that he may have had to that annuity, annual allowance or pension, in this section referred to as the ``original annuity'', shall thereupon cease and the period of service on which the original annuity was based may be counted by him as pensionable service for the purposes of this Part, except that

    (a) if, on subsequently ceasing to be a member of the Force, he exercises his option under this Part in favour of a return of contributions, or is not entitled under this Part to any benefit other than a return of contributions, the amount returned shall not include any amount paid into the Superannuation Account to his credit at any time before the time of his re-appointment to or re-enlistment in the Force, and whatever right or claim that, but for this section, he would have had to the original annuity on subsequently ceasing to be a member of the Force shall thereupon be restored to him; and

Clause 190: (1) Subparagraphs 24(1)(b)(iv) and (v) are new. The relevant portion of subsection 24(1) reads as follows:

24. (1) Any person who becomes a contributor under this Part, having been employed in the Public Service but not having become entitled to an annuity or annual allowance under the Public Service Superannuation Act, or having been a member of the regular force but not having become entitled to an annuity, annual allowance or pension under the Canadian Forces Superannuation Act, is entitled to count as pensionable service for the purposes of this Part any period of service in the Force or any period of service described in section 6 that, under the Public Service Superannuation Act or the Canadian Forces Superannuation Act, as the case may be, he was entitled to count for pension purposes, if he elects, within one year of becoming a contributor under this Part, to pay for that service, in which case the amount required by this Act to be paid by him for that service is,

    . . .

    (b) in the case of service for which, by the Public Service Superannuation Act or the Canadian Forces Superannuation Act, as the case may be, he was not required to pay, an amount equal to the amount that he would have been required to pay had he, during the period of that service, been required to contribute

      . . .

      (iii) where that period or any portion thereof was after March 31, 1969, in the manner and at the rates set forth in subsection 5(1) in respect of that period or that portion thereof,

(2) Subsection 24(9) is new. Subsections 24(6) to (8) read as follows:

(6) Where a person to whom subsection (4) applies elects, pursuant to subsection (5), to surrender the annuity, annual allowance or pension referred to in subsection (4), the person so electing shall pay an amount equal to the amount of the annuity, annual allowance, pension or supplementary retirement benefit paid to him for any period commencing in any month commencing after he has been a contributor under this Part for one year, together with simple interest at four per cent per annum and the amount so paid shall be credited to the account in the accounts of Canada maintained pursuant to Part I of the Public Service Superannuation Act, pursuant to Part I of the Canadian Forces Superannuation Act or pursuant to the Supplementary Retirement Benefits Act, as the case may be.

(7) On the making of any election under this section whereby the person so electing is required by this Part to pay for any period of service of the kind described in paragraph (1)(a), there shall be charged to the account in the accounts of Canada maintained pursuant to the Public Service Superannuation Act or the Canadian Forces Superannuation Act, as the case may be, and credited to the Superannuation Account in respect of that person, an amount equal to the amount determined under subparagraph (1)(a)(ii).

(8) For the purposes of the Public Service Superannuation Act or the Canadian Forces Superannuation Act, as the case may be, the amount of any return of contributions or other lump sum payment that is or may become payable under that Act to or in respect of that person shall be deemed to be the amount otherwise determined thereunder minus the amount required by subsection (7) to be credited to the Superannuation Account on the making of the election.

Clause 191: New.

Clause 192: Subsections 25.1(1.1) and (3.1) are new. Subsections 25.1(1) to (3) read as follows:

25.1 (1) The Minister may establish a committee, to be known as the Royal Canadian Mounted Police Pension Advisory Committee, the members of which are appointed by the Minister in accordance with subsection (2), to advise and assist the Minister on matters arising in connection with the operation of this Act.

(2) The membership of the Committee shall consist of

    (a) one person appointed from among contributors in receipt of an annuity under this Act who are nominated for appointment by an association that, in the opinion of the Minister, represents such contributors;

    (b) three persons appointed from among persons required to contribute to the Superannuation Account who are nominated for appointment by a body that, in the opinion of the Minister, represents such persons;

    (c) two persons appointed from among persons required to contribute to the Superannuation Account; and

    (d) two persons appointed from among persons required to contribute to the Superannuation Account or any other superannuation or pension account in the accounts of Canada.

(3) A member of the Committee shall be appointed to hold office for a term not exceeding three years.

Clause 193: (1) and (2) The relevant portion of section 26 reads as follows:

26. The Governor in Council may make regulations,

    . . .

    (c) prescribing, notwithstanding subsection 5(1) and section 36, the manner in which and the circumstances under which persons who are required to contribute to the Superannuation Account in accordance with subsection 5(1) or section 36 but who are or have been, either before or after April 1, 1960, absent from the Force on leave of absence without pay shall contribute to the Superannuation Account in respect of that absence, prescribing the pay that shall be deemed to have been paid to those persons during that absence and respecting the contributions to be made by those persons to the Superannuation Account in respect of that pay;

    . . .

    (r) providing for the payment out of the Superannuation Account, on the death of a contributor and on application to the Minister by or on behalf of any successor thereunder to whom any annual allowance becomes payable under this Part, of the whole or any part of such portion of any estate, legacy, succession or inheritance duties or taxes that are payable by the successor as is determined in accordance with the regulations to be attributable to that allowance, and prescribing the amounts by which and the manner in which any such allowance and any amount payable under section 22 in any such case shall be reduced;

Clause 194: (1) to (3) Paragraphs 26.1(1)(c.1) to (c.3) and (h.1) to (h.6) are new. The relevant portion of subsection 26.1(1) reads as follows:

26.1 (1) The Governor in Council may make regulations

    (a) fixing an annual rate of pay for the purposes of paragraph 5(2)(c) or prescribing the manner of determining the annual rate of pay;

Clause 195: Section 27 reads as follows:

27. (1) For the purposes of this Part, a person who has contributed to the Superannuation Account in accordance with any regulation made under paragraph 26(c) in respect of any period during which he was absent from the Force on leave of absence without pay shall be deemed to have contributed to the Superannuation Account,

    (a) where that period or any portion thereof was prior to 1966, in the manner and at the rates set forth in subsection 5(1) as it read on December 31, 1965, in respect of that period or that portion thereof,

    (b) where that period or any portion thereof was after 1965 and prior to April 1, 1969, in the manner and at the rates set forth in subsection 5(1) as it read immediately prior to April 1, 1969 in respect of that period or that portion thereof, and

    (c) where that period or any portion thereof was after March 31, 1969, in the manner and at the rates set forth in subsection 5(1) in respect of that period or that portion thereof,

and to have received, during that period, pay and allowances at a rate equal to the rate of pay and allowances that would have been authorized to be paid to him if he had not been so absent on leave of absence without pay.

(2) Notwithstanding anything in this Part, the Governor in Council may by regulation provide that the service of a former member of the House of Commons or a former Senator in respect of which he made contributions under the Members of Parliament Retiring Allowances Act may, to such extent and subject to such conditions as may be prescribed by the regulations, be counted by that former member or former Senator as pensionable service for the purposes of this Part, and for the transfer to the Superannuation Account of all contributions made by him under that Act, and any amounts credited under section 5 of that Act in respect of him.

Clause 196: Section 28 reads as follows:

28. All amounts required for the payment of benefits under this Part, including the benefits referred to in subsection 26(3) of the Royal Canadian Mounted Police Superannuation Act, chapter 34 of the Statutes of Canada, 1959, shall be paid out of the Consolidated Revenue Fund and charged to the Superannuation Account.

Clause 197: The heading before section 29 reads as follows:

Amounts to be Credited to Account

Clause 198: (1) The relevant portion of subsection 29(1) reads as follows:

29. (1) There shall be credited to the Superannuation Account in each fiscal year

    (a) in respect of every month, an amount equal to the amount estimated by the President of the Treasury Board to be required to provide for the cost of the benefits that have accrued in respect of that month and that will become chargeable against the Account; and

(2) Subsections 29(2) to (6) read as follows:

(2) There shall be charged to the Supplementary Retirement Benefits Account established pursuant to the Supplementary Retirement Benefits Act and credited to the Superannuation Account

    (a) on the day on which this subsection comes into force, the amount by which

      (i) the aggregate of

        (A) all amounts that, pursuant to Part III, were credited to the Supplementary Retirement Benefits Account before that day, and

        (B) the interest credited pursuant to section 9 of the Supplementary Retirement Benefits Act on such portion of the balance in that Account as may be attributed to the amounts referred to in clause (A),

    exceeds

      (ii) the benefits and other amounts charged to the Supplementary Retirement Benefits Account in respect of contributors, before that day, pursuant to section 8 of the Supplementary Retirement Benefits Act; and

    (b) such interest as is credited pursuant to section 9 of the Supplementary Retirement Benefits Act, at any time on or after the day on which this subsection comes into force, on such portion of the balance in that Account as may be attributed to the amount referred to in paragraph (a).

(3) For the purpose of calculating the amount referred to in paragraph (1)(b), the Superannuation Account shall be deemed to have been established immediately before the day on which subsection (1) comes into force and the total amount standing to the credit of the Account on that day, together with the amounts credited to the Account pursuant to subsection (2), are deemed to constitute the balance to the credit of the Account immediately before that day.

(4) The President of the Treasury Board shall estimate the total cost of the benefits payable under this Part and Part III, as at the day on which this subsection comes into force, in respect of the pensionable service to the credit of contributors before that day.

(5) There shall be credited to the Superannuation Account, on the day on which this subsection comes into force, such amount as in the opinion of the President of the Treasury Board will, together with the amount estimated by the President of the Treasury Board to be to the credit of the Account at that time, meet the total cost estimated pursuant to subsection (4).

(6) Following the laying before Parliament of any actuarial valuation report pursuant to section 30 that relates to the state of the Superannuation Account, there shall be credited to the Account, at the time and in the manner set out in subsection (7), such amount as in the opinion of the President of the Treasury Board will, at the end of the fifteenth fiscal year following the tabling of that report or at the end of such shorter period as the President of the Treasury Board may determine, together with the amount that the President of the Treasury Board estimates will be to the credit of the Account at that time, meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that is to the credit of contributors.

(3) Subsections 29(9) to (14) are new. Subsection 29(8) reads as follows:

(8) Where a subsequent actuarial valuation report is laid before Parliament before the end of the period applicable under subsection (7), the instalments remaining to be credited in that period may be adjusted to reflect the amount that is estimated by the President of the Treasury Board, at the time that subsequent report is laid before Parliament, to be the amount that will, together with the amount that the President of the Treasury Board estimates will be to the credit of the Account at the end of that period, meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that is to the credit of contributors.

Clause 199: New.

Clause 200: Sections 30 and 31 read as follows:

30. In accordance with the Public Pensions Reporting Act, a cost certificate, an actuarial valuation report and an assets report on the state of the Superannuation Account shall be prepared, filed with the Minister designated under that Act and laid before Parliament.

Annual Report

31. The Minister shall cause to be laid before each House of Parliament each year a report on the administration of this Part and Part III during the preceding fiscal year, including a statement showing the amounts paid into and out of the Superannuation Account during that year, by appropriate classifications, the number of contributors and the number of persons receiving benefits under this Part and Part III, together with such additional information as the Governor in Council requires.

Clause 201: (1) The definition ``contributor'' in section 35 reads as follows:

``contributor'' means a member of the Force to whom this Act or the Royal Canadian Mounted Police Pension Continuation Act, chapter R-10 of the Revised Statutes of Canada, 1970, applies;

(2) The relevant portion of the definition ``recipient'' in section 35 reads as follows:

``recipient'' means

      . . .

      (f) a person who is in receipt of the pension by reason of being a surviving spouse, a child or an orphan.

Clause 202: Section 36 reads as follows:

36. Every contributor is required to contribute to the Superannuation Account, by reservation from pay or otherwise, in addition to any other amount required under this Act, an amount equal to one per cent of the contributor's pay.

Clause 203: Subsection 37(1) reads as follows:

37. (1) A contributor who elects, pursuant to section 6 or 24, to count as pensionable service a period of elective service, or any portion thereof, that is after March 31, 1970 is required to contribute to the Superannuation Account in respect thereof, in addition to any other amount required under this Act, an amount calculated in the manner and in respect of the pay described in those sections

    (a) in the case of a period of elective service or portion thereof that is after March 31, 1970 and before January 1, 1970, at the rate set out in subsection 36(1) of the Royal Canadian Mounted Police Superannuation Act, as it read immediately before the coming into force of this paragraph; and

    (b) in the case of a period of elective service or portion thereof that is after December 31, 1976, at the rate set out in section 36.

Clause 204: The relevant portion of subsection 39(3) reads as follows:

(3) For the purposes of this section,

    . . .

    (b) the retirement year or retirement month of a person who is in receipt of a pension by reason of being a surviving spouse, a child or an orphan, is the retirement year or retirement month, as the case may be, of the person in respect of whom or in respect of whose service the pension is payable.

Clause 205: Subsection 40(2) reads as follows:

(2) For greater certainty, all amounts required for the payment of supplementary benefits shall be paid out of the Consolidated Revenue Fund and charged to the Superannuation Account.

Clause 206: (1) The relevant portion of subsection 41(1) reads as follows:

41. (1) The Governor in Council may, for the purpose of enabling the pension plan provided by this Act to conform with any provision of section 147.1 of the Income Tax Act and Part LXXXV of the Income Tax Regulations, as they read on January 15, 1992, make regulations

(2) New.

Defence Services Pension Continuation Act

Clause 207: (1) New.

(2) Subsection 2(2) reads as follows:

(2) In this Act words referring to the child of a person include a stepchild of that person, an illegitimate child of that person who, at the time of that person's death, was being maintained by him and was wholly or substantially dependent upon him for support, and an individual adopted either legally or in fact by that person while such individual was under eighteen years of age.

Clause 208: Subsections 10(3) and (4) read as follows:

(3) Where an officer dies before a period at which a pension might be granted him, the Governor in Council may grant to his widow, or, if he leaves no widow, to his children under eighteen years of age at the date of his death a gratuity equal to the amount of the deductions made under subsection 9(1) from such officer's pay during his service.

(4) Where an officer dies leaving no widow or child to whom a gratuity under subsection (3) or a pension or compassionate allowance under this Act would be payable, but who leaves a father, mother, brother, sister or child who, at the date of such officer's death was wholly or partially dependent on him for support, the Governor in Council may grant to the person or persons so dependent a gratuity not exceeding in the aggregate the amount of the deductions made under subsection 9(1) from the officer's pay during his services.

Clause 209: Subsection 25(2) is new. Section 25 and the heading before it read as follows:

Provision for Officers' Wives and Children

25. Subject to the provisions hereinafter contained, the Minister may, as to him seems fit, grant a pension to the widow and a compassionate allowance to each of the children of any officer who, at the time of death being on full pay, dies after a period at which a pension might be granted him, or who was, at the time of his death, in receipt of a pension.

Clause 210: The relevant portion of section 26 reads as follows:

26. Such pension or compassionate allowance shall not be granted

    . . .

    (d) if the officer married after retirement;

    (e) if the officer was at the time of his marriage over sixty years of age; or

Clause 211: Section 27 reads as follows:

27. The pension of a widow shall, if her husband was at the time of his death on full pay, be an amount equal to one-half of the pension to which he would have been entitled if he had been retired compulsorily immediately before his death, or, if at the time of his death he had been pensioned, an amount equal to one-half of such pension.

Clause 212: Subsection 28(2) reads as follows:

(2) If the child is motherless and, in the opinion of the Minister, in great need, the allowance shall be double that fixed by this section.

Clause 213: Section 29 reads as follows:

29. The total amount paid to the widow and children of an officer during any year shall not exceed the amount of the pension that the officer was in receipt of, or to which he would have been entitled, as the case may be.

Clause 214: Section 32 reads as follows:

32. (1) For the purposes of this Act, where a woman establishes to the satisfaction of the Treasury Board that she had, for a period of not less than one year immediately before the death of an officer or former officer with whom she had been residing and to whom she was not married, been publicly represented by him to be his wife, the Treasury Board may deem her to be the widow of the officer or former officer and to have become married to him at the time when, in fact, the representation began.

(2) For the purposes of this Act, where the widow of an officer or former officer establishes to the satisfaction of the Treasury Board that she had resided with the officer or former officer for a period immediately before their marriage and that she had, for that period, been publicly represented by him to be his wife, the Treasury Board may deem her to have become married to him at the time when, in fact, the representation began.

Clause 215: New.

Royal Canadian Mounted Police Pension Continua tion Act

Clause 216: New.

Clause 217: Subsection 5(2) reads as follows:

(2) Where a person described in subsection (1) dies before he is granted compensation under that subsection, his widow or, if there is no widow, his children may be granted such compensation in respect of the period preceding his death that he was disabled, including medical and hospital expenses, as the Treasury Board may prescribe.

Clause 218: New.

Clause 219: Subsection 19(2) is new. Section 19 reads as follows:

19. Subject to this Part, the Governor in Council may, as to him seems fit, grant a pension to the widow and a compassionate allowance to each of the children of an officer who, having completed ten years of service, was at the time of his death a member of the Force, or who is at the time of his death in receipt of a pension.

Clause 220: The relevant portion of section 20 reads as follows:

20. Such pension or compassionate allowance shall not be granted

    . . .

    (c) if the officer married after retirement;

    (d) if the officer was at the time of his marriage over sixty years of age;

Clause 221: Section 23 reads as follows:

23. The total amount paid to the widow and children of an officer during any year shall not exceed the amount of the pension of which the officer was in receipt, or to which he would have been entitled, as the case may be.

Clause 222: Section 25.1 reads as follows:

25.1 (1) For the purposes of this Act, where a woman establishes to the satisfaction of the Treasury Board that she had, for a period of not less than one year immediately before the death of an officer or former officer with whom she had been residing and to whom she was not married, been publicly represented by him to be his wife, the Treasury Board may deem her to be the widow of the officer or former officer and to have become married to him at the time when, in fact, the representation began.

(2) For the purposes of this Act, where the widow of an officer or former officer establishes to the satisfaction of the Treasury Board that she had resided with the officer or former officer for a period immediately before their marriage and that she had, for that period, been publicly represented by him to be his wife, the Treasury Board may deem her to have become married to him at the time when, in fact, the representation began.

Clause 223: New.

Members of Parliament Retiring Allowances Act

Clause 224: New.

Clause 225: (1) The relevant portion of subsection 20(1) reads as follows:

20. (1) On the death of a member or former member, there shall be paid

    (a) to

      (i) the person who was the spouse of the member or former member immediately before the death and, in the case of a former member, immediately before the time when the former member ceased to be a member, and

      (ii) any person of the opposite sex who establishes that the person was cohabiting in a conjugal relationship with the member or former member for at least one year immediately before the death of the member or former member and, in the case of a former member, that cohabitation commenced before the time when the former member ceased to be a member,

    an allowance equal to three fifths of the basic retirement allowance, but, if more than one person is entitled to an allowance under this paragraph, the total amount of the allowances shall not exceed three fifths of the basic retirement allowance and that total amount shall be apportioned in accordance with subsection (1.1); and

(2) Subsection 20(1.1) reads as follows:

(1.1) For the purposes of paragraph (1)(a), the total amount shall be apportioned so that

    (a) the spouse receives an amount, if any, equal to the total amount less any amount determined under paragraph (b); and

    (b) the cohabitant receives an amount equal to that proportion of the total amount that the number of years the cohabitant cohabited with the member or former member while a member is of the number of years that the member or former member was a member.

Clause 226: (1) The relevant portion of subsection 40(1) reads as follows:

40. (1) On the death of a member or former member, there shall be paid

    (a) to

      (i) the person who was the spouse of the member or former member immediately before the death and, in the case of a former member, immediately before the time when the former member ceased to be a member, and

      (ii) any person of the opposite sex who establishes that the person was cohabiting in a conjugal relationship with the member or former member for at least one year immediately before the death of the member or former member and, in the case of a former member, that cohabitation commenced before the time when the former member ceased to be a member,

    an allowance equal to three fifths of the basic compensation allowance, but, if more than one person is entitled to an allowance under this paragraph, the total amount of the allowances shall not exceed three fifths of the basic compensation allowance and that total amount shall be apportioned in accordance with subsection (1.1); and

(2) Subsection 40(1.1) reads as follows:

(1.1) For the purposes of paragraph (1)(a), the total amount shall be apportioned so that

    (a) the spouse receives an amount, if any, equal to the total amount less any amount determined under paragraph (b); and

    (b) the cohabitant receives an amount equal to that proportion of the total amount that the number of years the cohabitant cohabited with the member or former member while a member is of the number of years that the member or former member was a member.

Canada Post Corporation Act

Clause 227: Subsection 13(2) reads as follows:

(2) The Chairman, President, officers and employees of the Corporation shall be deemed to be employed in the Public Service for the purposes of the Public Service Superannuation Act and the Corporation shall be deemed to be a Public Service corporation for the purposes of section 37 of that Act.

Payment Clearing and Settlement Act

Clause 228: New. The relevant portion of the definition ``financial institution'' in subsection 13(2) reads as follows:

``financial institution'' means