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Bill C-78

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Payments to Survivors, Children and Other Beneficiaries

Lump sum payments

25. (1) Where, in this Part, it is provided that the survivor and children of a contributor are entitled jointly to a return of contributions, the total amount of the return shall be paid to the survivor 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 survivor 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 survivor or at the time the payment is to be made the survivor is dead or cannot be found, the total amount shall be paid to the children in the shares that 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 survivor at the time the payment is to be made, the total amount shall be paid to the survivor and the children so living apart in the shares that the Minister considers equitable and proper under the circumstances, or to the survivor 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 survivor is dead or cannot be found, or if the contributor died without leaving a survivor 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 or her estate or succession as 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 or succession of the contributor or, if less than one thousand dollars, as the Minister may direct.

Apportionme nt when two survivors

(2) If there are two survivors of a contributor, the share of the total amount to be paid to the survivor referred to in paragraph (a) of the definition ``survivor'' in subsection 3(1) and the share to be paid to the survivor referred to in paragraph (b) of that definition shall be paid as the Minister may direct.

Share may be nil

(2.1) Nothing in subsection (2) is to be read as limiting the Minister's power to direct that the share of one or other of the survivors under that subsection is nil.

Allowances paid to children

(3) When a child of a contributor is entitled to an annual allowance or other amount under this Part, payment of it shall, if the child is less than eighteen years of age, be made to the person having custody and control of the child, or, if there is no person having custody and control of the child, to the person whom the Minister may direct.

Person considered to be the survivor

(4) For the purposes of this Part, when a person establishes that he or she was cohabiting in a relationship of a conjugal nature with the contributor for at least one year immediately before the death of the contributor, the person is considered to be the survivor of the contributor.

Person considered to be married

(4.1) For the purposes of this Part, when a contributor dies and, at the time of death, the contributor was married to a person with whom the contributor had been cohabiting in a relationship of a conjugal nature for a period immediately before the marriage, that person is considered to have become married to the contributor on the day established as being the day on which the cohabitation began.

When survivor not to receive annual allowance - waiver

(5) A survivor is not entitled to receive an annual allowance if the survivor makes an irrevocable waiver under subsection (6).

Permitted waivers

(6) A survivor may make an irrevocable waiver in writing only if it results in

    (a) an increase in the allowance payable to a child under paragraph 12(4)(b); or

    (b) a benefit being paid under section 27.

Time for waiver

(7) A waiver must be made no later than three months after the survivor is notified of his or her entitlement to an allowance under this Act and takes effect as of the date of the death of the contributor.

When survivor not to receive benefits - criminal responsibility for death

(8) A survivor is not entitled to receive any benefit under this Act with respect to the contributor when the contributor dies and the survivor is found criminally responsible for the death.

When survivor not to receive annual allowance - missing survivor

(9) A survivor is not entitled to receive an annual allowance when the contributor dies if it is established to the satisfaction of the Minister that the survivor cannot be found.

Apportionme nt of allowance when two survivors

(10) When an annual allowance is payable under paragraph 12(4)(a) or subsection 13(2) and there are two survivors of the contributor, the total amount of the annual allowance shall be apportioned so that

    (a) the survivor referred to in paragraph (a) of the definition ``survivor'' in subsection 3(1) is entitled to receive the proportion of the annual allowance that the total of the number of years that he or she cohabited with the contributor while married to the contributor and the number of years that he or she cohabited with the contributor in a relationship of a conjugal nature bears to the total number of years that the contributor so cohabited with the survivors; and

    (b) the survivor referred to in paragraph (b) of that definition is entitled to receive the proportion of the annual allowance that the number of years that he or she cohabited with the contributor in a relationship of a conjugal nature bears to the total number of years that the contributor cohabited with the survivors, either while married or while in a relationship of a conjugal nature.

Years

(11) In determining a number of years for the purposes of subsection (10), part of a year shall be counted as a full year if the part is six or more months and shall be ignored if it is less.

Death, etc. of one of the survivors

(12) When one of the survivors referred to in subsection (10) dies or is not entitled to receive a benefit under this Act when the contributor dies, the portion of the annual allowance that would have been payable to the survivor who died or is not entitled shall be paid to the remaining survivor in addition to his or her own portion.

1992, c. 46, s. 14

76. (1) Subsection 26(1) of the Act is replaced by the following:

Marriage, etc. after retirement

26. (1) Subject to section 13.1 but notwithstanding any other provision of this Part, the survivor of a contributor is not entitled to an annual allowance in respect of the contributor under this Part if that contributor married the survivor or began to cohabit with the survivor in a relationship of a conjugal nature after having become entitled under this Part to an annuity or annual allowance, unless, after the marriage, or after the beginning of the period of cohabitation, the contributor became or continued to be a contributor under this Part.

(2) Subsection 26(3) of the Act is replaced by the following:

Death within one year after marriage

(3) Notwithstanding anything in this Part, when a contributor dies within one year after marriage, no annual allowance is payable to the survivor of the contributor or the children of that marriage unless it is established to the satisfaction of the Minister 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 after the marriage.

(3) Subsection 26(6) of the Act is replaced by the following:

Transitional

(6) Notwithstanding anything in this Act, no person is entitled to an allowance under this Part by virtue of being the survivor of a female contributor unless the contributor, on or after December 20, 1975 but before January 1, 2000, was

    (a) employed in the Public Service; and

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

Section 2 does not apply in respect of this subsection.

Transitional

(7) Notwithstanding anything in this Act, no person is entitled to an allowance under this Part by virtue of being the survivor of a female contributor unless the contributor, on or after January 1, 2000, was

    (a) employed in the Public Service; and

    (b) required by subsections 5(1.1) or (1.2) to contribute to the Superannuation Account or the Public Service Pension Fund.

Section 2 does not apply in respect of this subsection.

1989, c. 6, s. 5

77. Section 26.1 of the Act is repealed.

78. (1) Subsection 27(1) of the Act is replaced by the following:

Minimum benefits

27. (1) If, on the death of a contributor who was not required to contribute to the Superannuation Account under subsection 5(1) in the period that began on or after December 20, 1975 and that ends on December 31, 1999 - or who was not required to contribute to the Superannuation Account or the Public Service Pension Fund under subsection 5(1.1) or (1.2) on or after January 1, 2000 - there is no person to whom an allowance provided in this Part may be paid, or if the persons to which that allowance may be paid die or cease to be entitled to that allowance 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 succession or, if less than one thousand dollars, as the Minister may direct.

(2) The portion of subsection 27(2) of the Act before paragraph (a) is replaced by the following:

Minimum benefits

(2) If, on the death of a contributor who was required to contribute to the Superannuation Account under subsection 5(1) in the period that began on or after December 20, 1975 and that ends on December 31, 1999 - or who was required to contribute to the Superannuation Account or the Public Service Pension Fund under subsection 5(1.1) or (1.2) on or after January 1, 2000 - there is no person to whom an allowance provided in this Part may be paid, or if the persons to whom that allowance may be paid die or cease to be entitled to that allowance and no other amount may be paid to them under this Part, an amount equal to the amount by which

79. Paragraphs 29(a) and (b) of the Act are replaced by the following:

    (a) if that person is re-employed in the Public Service and becomes a contributor under this Part, whatever right or claim that he or she may have to the annuity, annual allowance or adjusted annual allowance shall be terminated without delay, 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 or her 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 or the Public Service Pension Fund to his or her credit at any time before the time when he or she became re-employed, but whatever right or claim that, but for this paragraph, he or she would have had to the annuity, annual allowance or adjusted annual allowance on ceasing to be so re-employed shall then be restored to him or her; and

    (b) if that person is re-employed in the Public Service and becomes a contributor under this Part, and the period of service on which his or her annuity, annual allowance or adjusted annual allowance was based included any period specified in clause 6(1)(a)(iii)(C) or (E), he or she may, within one year from the time when he or she became 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 or she shall be deemed, for the purposes of this section, not to have become a contributor under this Part in respect of his or her service since becoming so re-employed, but if, on ceasing to be so re-employed, he or she exercises an 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 or her service since becoming re-employed except a return of contributions, the amount so returned shall not include any amount paid into the Superannuation Account or the Public Service Pension Fund to his or her credit at any time before the time when he or she became so re-employed.

80. Section 30 of the Act is replaced by the following:

Failure to apply for re-employme nt

30. Where, in any Act of Parliament, it is provided that a contributor who leaves the Public Service for employment outside of it continues to be a contributor under this Part during that employment and is eligible, in the event of 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 or her qualifications, he or she 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.

81. Subsection 31(2) of the Act is replaced by the following:

Failure to pass medical examination

(2) Notwithstanding anything in this Part, when 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 the contributor's survivor 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.

82. Section 32 of the Act is amended by adding the following after subsection (3):

Garnishment, Attachment and Pension Diversion Act

(4) For the purposes of Part II of the Garnishment, Attachment and Pension Diversion Act, all survivors within the meaning of this Act are deemed to be included in the definition ``recipient'' in subsection 32(1) of that Act.

83. Section 34 of the Act and the heading ``Former Provincial Government Employees'' before it are repealed.

84. Subsection 37(2) of the Act is replaced by the following:

Contributions in respect of employees of corporation

(2) If a person is or has been 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 or she continues to be a contributor during his or her employment with that corporation, the Public Service corporation or other corporation shall, as required by the Minister, pay into the Superannuation Account or the Public Service Pension Fund, at the time and in the manner determined by the Minister in respect of the contributions of that person to the Superannuation Account or the Public Service Pension Fund in the course of his or her employment with the corporation, and in respect of his or her non-elective or elective service within the meaning of subsection 6(1), the amount that is determined by the Minister in accordance with the regulations.

Contributions - current service

(3) If, on the day on which this subsection comes into force, a corporation has not made a contribution under this section with respect to an employee referred to in subsection (2) in respect of his or her current service or with respect to an election made by the person before that day, the contribution, in the amount that the Minister determines, shall be made to the Superannuation Account at the time and in the manner determined by the Minister.

Interest

(4) If an amount referred to in subsection (2) or (3) is not paid within the time determined by the Minister, the Minister may require that the corporation pay into the Superannuation Account or the Public Service Pension Fund interest on that amount at the time and in the manner that the Minister may determine.

Information to be provided

(5) The corporation shall provide the information relating to the employment, pensionable service, salary and contributions to the Superannuation Account or the Public Service Pension Fund, including reports and assessments respecting the accurate application of this Act, and any other relevant information, that the Minister may require with respect to employees or former employees referred to in subsection (2), at the times and in the manner that the Minister may direct.

85. Subsections 38(1) and (2) of the Act are replaced by the following:

Service with corporation included in Part IV of Schedule I

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 or the Public Service Pension Fund 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.

Contributions to Superannuatio n Account and Public Service Pension Fund

(2) No person shall, while he or she is employed by a corporation included in Part IV of Schedule I, contribute to the Superannuation Account or the Public Service Pension Fund under section 5 unless he or she is a person who by reason of a provision in any other Act of Parliament continues to be a contributor while employed with that corporation.

86. (1) Paragraphs 39(2)(b) and (c) of the Act are replaced by the following:

    (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 or she was not required to pay, an amount equal to the amount that he or she would have been required to pay had he or she, during the period of that service, been required to contribute

      (i) if that period or any portion of it was before 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,

      (ii) if that period or any portion of it was after 1965 but before January 1, 2000, in the manner and at the rates set out in subsection 5(1) as it reads on December 31, 1999 in respect of that service or that portion,

      (iii) if that period or any portion of it was after 1999 but before January 1, 2004, in the manner and at the rates set out in subsection 5(1.1), in respect of that service or that portion, and

      (iv) if that period or any portion of it was after December 31, 2003, in the manner and at the rates determined under subsection 5(1.2), in respect of that service or that portion,

    in respect of a salary at a rate equal to the rate authorized to be paid to him or her on the most recent occasion on which he or she 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 or she was required to pay, and in respect of which he or she has received an amount by way of a return of contributions or a cash termination allowance, an amount equal to the amount that he or she would have been required to pay had he or she, during the period of that service, been required to contribute

      (i) if that period or any portion of it was before 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,

      (ii) if that period or any portion of it was after 1965 but before January 1, 2000, in the manner and at the rates set out in subsection 5(1) as it reads on December 31, 1999 in respect of that service or that portion,

      (iii) if that period or any portion of it was after 1999 but before January 1, 2004, in the manner and at the rates set out in subsection 5(1.1), in respect of that service or that portion, and

      (iv) if that period or any portion of it was after December 31, 2003, in the manner and at the rates determined under subsection 5(1.2), in respect of that service or that portion,