R-12.1, r. 2 - Special provisions in respect of classes of employees designated under section 23 of the Act respecting the Pension Plan of Management Personnel

Section 8 Disposition versions

2017-01-01

8. Subject to section 25, the amount of the pension of an employee who ceases to be a member of the plan after 31 December 2009 in respect of the years of service credited to the employee while this Order in Council applies to the employee, is equal to the total of the following amounts on the date on which the employee ceases to be a member of the plan:

(1)  the amount obtained by multiplying the average pensionable salary by 1.6% per year of service credited before 1 January 1997 and by 1.7% per year of service credited after 31 December 1996, while this Order in Council or, as the case may be, Order in Council 245-92 dated 26 February 1992, as it read on 16 September 2003, applies to the employee;

(2)  an amount equal to 0.15% of the employee’s average pensionable salary per year of service credited before 1 January 1997 and to 0.30% per year of service credited after 31 December 1996, while this Order in Council or, as the case may be, Order in Council 245-92 dated 26 February 1992, as it read on 16 September 2003, applies to the employee if the employee is under 65 years of age. The amount is payable until the end of the month in which the pensioner reaches 65 years of age and is indexed in accordance with sections 115 and 116 of the Act. If the employee has less than 120 months of service, including the months of service recognized under the employee’s former pension plan, the amount is reduced by multiplying it by the fraction that the number of months of such service is of the total of 120. For the purpose of computing the number of months of service, the service accumulated by an employee during the period in which the plan did not apply to the employee while one of the following provisions applied to the employee must also be taken into account:

(a)  section 2 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) as it read on 31 December 2000;

(b)  paragraph 7 of section 4 of that Act as it read on that date;

(c)  section 2 of the Act; or

(d)  paragraph 7 of section 3 of the Act; and

(3)  the amount obtained by multiplying the average pensionable salary by 2% per year of service credited after 31 December 2010, while this Order in Council applies to the employee, over and beyond 35 years of service used in computing the total pension, but without exceeding 38 years of service;

(4)  the amount obtained by multiplying the average pensionable salary by 2% per year of service credited after 31 December 2016, while this Order in Council applies to the employee, over and beyond 38 years of service used in computing the total pension.

The amount of the pension obtained pursuant to subparagraphs 1, 3 and 4 of the first paragraph may not exceed the amount obtained by multiplying the defined benefit limit, applicable for the year of retirement and established under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), by the number of years of service credited while this Order in Council applies to the employee.

The amount of the pension obtained pursuant to subparagraph 2 of the first paragraph may not exceed the amount obtained by computing the reduction provided for in section 57 of the Act, taking into account only the years of service credited after 31 December 1991 while this Order in Council applies to the employee but, for the purposes of subparagraph 3 of the first paragraph of that section, selecting only the last years of service required to bring the aggregate of the corresponding contributory periods up to 3 or, if the aggregate is less than 3, selecting all the years of service.

For the purposes of subparagraphs 1 and 2 of the first paragraph, the number of years of an employee’s credited service are taken into account up to the number of years necessary so that the years of service used in computing the total pension do not exceed 35. The years of service that exceed 35 and are credited on 31 December 1995 to an employee who ceases to be a member of the plan after that date are taken into account for the purpose of computing the pension.

For the purposes of subparagraphs 3 and 4 of the first paragraph, the number of years in excess of an employee’s credited service referred to in those subparagraphs are taken into account up to the number of years necessary so that the years of service used in computing the total pension do not exceed 40.

O.C. 960-2003, s. 8; O.C. 524-2009, s. 3; O.C. 376-2011, s. 3; O.C. 857-2017, s. 2.

2012-09-01

8. Subject to section 25, the amount of the pension of an employee who ceases to be a member of the plan after 31 December 2009 in respect of the years of service credited to the employee while this Order in Council applies to the employee, is equal to the total of the following amounts on the date on which the employee ceases to be a member of the plan:

(1)  the amount obtained by multiplying the average pensionable salary by 1.6% per year of service credited before 1 January 1997 and by 1.7% per year of service credited after 31 December 1996, while this Order in Council or, as the case may be, Order in Council 245-92 dated 26 February 1992, as it read on 16 September 2003, applies to the employee;

(2)  an amount equal to 0.15% of the employee’s average pensionable salary per year of service credited before 1 January 1997 and to 0.30% per year of service credited after 31 December 1996, while this Order in Council or, as the case may be, Order in Council 245-92 dated 26 February 1992, as it read on 16 September 2003, applies to the employee if the employee is under 65 years of age. The amount is payable until the end of the month in which the pensioner reaches 65 years of age and is indexed in accordance with sections 115 and 116 of the Act. If the employee has less than 120 months of service, including the months of service recognized under the employee’s former pension plan, the amount is reduced by multiplying it by the fraction that the number of months of such service is of the total of 120. For the purpose of computing the number of months of service, the service accumulated by an employee during the period in which the plan did not apply to the employee while one of the following provisions applied to the employee must also be taken into account:

(a)  section 2 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) as it read on 31 December 2000;

(b)  paragraph 7 of section 4 of that Act as it read on that date;

(c)  section 2 of the Act; or

(d)  paragraph 7 of section 3 of the Act; and

(3)  the amount obtained by multiplying the average pensionable salary by 2% per year of service credited after 31 December 2010, while this Order in Council applies to the employee, over and beyond 35 years of service used in computing the total pension.

The amount of the pension obtained pursuant to subparagraphs 1 and 3 of the first paragraph may not exceed the amount obtained by multiplying the defined benefit limit, applicable for the year of retirement and established under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), by the number of years of service credited while this Order in Council applies to the employee.

The amount of the pension obtained pursuant to subparagraph 2 of the first paragraph may not exceed the amount obtained by computing the reduction provided for in section 57 of the Act, taking into account only the years of service credited after 31 December 1991 while this Order in Council applies to the employee but, for the purposes of subparagraph 3 of the first paragraph of that section, selecting only the last years of service required to bring the aggregate of the corresponding contributory periods up to 3 or, if the aggregate is less than 3, selecting all the years of service.

For the purposes of subparagraphs 1 and 2 of the first paragraph, the number of years of an employee’s credited service are taken into account up to the number of years necessary so that the years of service used in computing the total pension do not exceed 35. The years of service that exceed 35 and are credited on 31 December 1995 to an employee who ceases to be a member of the plan after that date are taken into account for the purpose of computing the pension.

For the purposes of subparagraph 3 of the first paragraph, the number of years in excess of an employee’s credited service referred to in that subparagraph are taken into account up to the number of years necessary so that the years of service used in computing the total pension do not exceed 38.

O.C. 960-2003, s. 8; O.C. 524-2009, s. 3; O.C. 376-2011, s. 3.