Bill C-397: An Act to amend certain Acts in relation to survivor pension benefits

Bill C-397 LEGISinfo First Reading Bilingual view XML PDF Canadian Forces Superannuation Act Judges Act Members of Parliament Retiring Allowances Act Public Service Superannuation Act Royal Canadian Mounted Police Superannuation Act Pension Benefits Standards Act, 1985 Pooled Registered Pension Plans Act Transitional Provisions Coordinating Amendments First Session, Forty-second Parliament, 64-65-66-67 Elizabeth II, 2015-2016-2017-2018 HOUSE OF COMMONS OF CANADA BILL C-397 An Act to amend certain Acts in relation to survivor pension benefits FIRST READING, February 13, 2018 Ms. Mathyssen 421484 SUMMARY This enactment amends the Canadian Forces Superannuation Act, the Judges Act, the Members of Parliament Retiring Allowances Act, the Public Service Superannuation Act, the Royal Canadian Mounted Police Superannuation Act, the Pension Bene­fits Standards Act, 1985 and the Pooled Registered Pension Plans Act to allow the survivor of an eligible person to receive pension benefits after the death of the person even if the person and the survivor married or began cohabiting in a conjugal relationship after the person attained the age of 60 years or retired. Available on the House of Commons website at the following address: www.ourcommons.ca 1st Session, 42nd Parliament, 64-65-66-67 Elizabeth II, 2015-2016-2017-2018 HOUSE OF COMMONS OF CANADA BILL C-397 An Act to amend certain Acts in relation to survivor pension benefits Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.‍S.‍, c. 17 Canadian Forces Superannuation Act 1 Paragraph 25(1)‍(b) of the Canadian Forces Superannuation Act is replaced by the following: (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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, two-fifths of the basic allowance. 2 Subsection 25(2) of the Act is replaced by the following: Total child allowance (2) The total amount of the allowances paid under paragraph (1)‍(b) shall not exceed four-fifths of the basic allowance or, if the contributor died without leaving a survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, eight-fifths of the basic allowance. 3 Section 25.‍1 of the Act is repealed. 4 Subsection 31(1) of the Act is repealed. 5 Paragraph 50(1)‍(r) of the Act is repealed. R.‍S.‍, c. J-1 Judges Act 6 Subsection 44(4) of the Judges Act is repealed. 7 Section 44.‍2 of the Act is repealed. 8 Subsection 52(1) of the Act is replaced by the following: Diversion of payments to satisfy financial support order 52 (1) If a court in Canada of competent jurisdiction has made an order requiring a recipient of an annuity or other amount payable under section 42, 43, 43.‍1, 44 or 44.‍1 or subsection 51(1) to pay financial support, amounts so payable to the recipient are subject to being diverted to the person named in the order in accordance with Part II of the Garnishment, Attachment and Pension Diversion Act. R.‍S.‍, c. M-5 Members of Parliament Retiring Allowances Act 9 Paragraphs (a) and (b) of the definition survivor in subsection 2(1) of the Members of Parliament Retiring Allowances Act are replaced by the following: (a) a person who was married to the member or former member immediately before the death of that member or former member; or (b) a person who establishes that they were cohabiting in a relationship of a conjugal nature with the member or former member for at least one year immediately before the death of that member or former member. (survivant) 10 Section 25 of the Act is repealed. 11 Section 45 of the Act is repealed. 12 Subparagraph 49(4)‍(a)‍(ii) of the Act is repealed. 13 Subparagraph 49(4)‍(b)‍(ii) of the Act is repealed. 14 Section 49.‍1 of the Act is repealed. 15 Paragraph 50(2)‍(b) of the Act is replaced by the following:   (b) the retirement year or retirement month of a person who is in receipt of an allowance under subsection 20(1), 40(1) or 49(1) is the retirement year or retirement month, as the case may be, of the former member in respect of whose service the allowance is payable. 16 Subsection 57(2) of the Act is replaced by the following: Recovery of amounts due (2) If any amount payable by a member or former member under a provision of this Act has become due but remains unpaid at the time of death of the member or former member, that amount, with interest at a rate prescribed from the time when it became due, may be re­covered, in the prescribed manner, from any allowance payable under subsection 20(1), 40(1) or 49(1) to another person in respect of the member or former member, without prejudice to any other recourse available to Her Majesty with respect to the recovery of that amount, and any amount so recovered is deemed, for the purposes of that provision, to have been paid by the member or former member. 17 The portion of subsection 59.‍1(3) before paragraph (a) is replaced by the following: Report (3) Every former member who, on or after July 13, 1995, commences to hold a federal position or enters into a federal service contract and who is receiving or commences to receive an allowance or other benefit under Part I, II, III or IV, other than a withdrawal allowance or an allowance under paragraph 20(1)‍(a) or 40(1)‍(a) or subsection 49(1), shall 18 Subsection 59.‍1(7) is replaced by the following: Reductions ignored for certain purposes (7) The amount of an allowance or other benefit payable under section 20, 40, 49 or 51 to or in respect of a former member to whom this section applies or applied shall be determined as if no reduction were made under this section to the allowances or other benefits payable to the former member. 19 Paragraph 64(m) of the Act is repealed. R.‍S.‍, c. P-36 Public Service Superannuation Act 20 The portion of subsection 12(4) of the Public Service Superannuation Act after paragraph (a) is replaced by the following: (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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, two-fifths of the basic allowance. However, 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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, eight-fifths of the basic allowance. 21 The portion of subsection 12.‍1(5) of the Act after paragraph (a) is replaced by the following: (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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, two-fifths of the basic allowance. However, 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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, eight-fifths of the basic allowance. 22 Section 13.‍1 of the Act is repealed. 23 Subsection 26(1) of the Act is repealed. 24 Paragraph 42.‍1(1)‍(j) of the Act is repealed. R.‍S.‍, c. R-11 Royal Canadian Mounted Police Superannuation Act 25 The portion of subsection 13(1) of the Royal Canadian Mounted Police Superannuation Act after paragraph (a) is replaced by the following: (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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, two-fifths of the basic allowance. However, 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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, eight-fifths of the basic allowance. 26 Section 14.‍1 of the Act is repealed. 27 Subsection 19(1) of the Act is repealed. 28 Paragraph 26.‍1(1)‍(e) of the Act is repealed. R.‍S.‍, c. 32 (2nd Supp.‍) Pension Benefits Standards Act, 1985 29 Subsection 16.‍3(1) of the Pension Benefits Standards Act, 1985 is replaced by the following: Entitlement of survivor 16.‍3 (1) In the case of the death of a former member, the survivor is entitled to receive, subject to the regulations and the regulations made under the Income Tax Act, a variable benefit payable under a defined contribution provision based on the amount remaining in the former member’s account maintained in respect of the defined contribution provision. 30 Subsection 22(2) of the Act is replaced by the following: Joint and survivor pension benefit (2) A pension benefit that commences to be paid on or after January 1, 1987, to a member or former member of a pension plan who has a spouse or common-law partner at the time the pension benefit commences to be paid or at any time after it commences to be paid shall be in the form of a joint and survivor pension benefit, subject to subsection 25(7). 2012, c. 16 Pooled Registered Pension Plans Act 31 Section 49 of the Pooled Registered Pension Plans Act is replaced by the following: Entitlement of survivor 49 In the case of the death of a member, the survivor is entitled to receive — subject to the regulations, the Income Tax Act and the Income Tax Regulations — variable payments from the funds in the member’s account. Transitional Provisions Canadian Forces Superannuation Act 32 A contributor who opted to reduce the amount of their annuity or annual allowance under subsection 25.‍1(1) of the Canadian Forces Superannuation Act, as it read immediately before the day on which this section comes into force, is deemed to have revoked the option on that day. Judges Act 33 A judge who elected to reduce their annuity under subsection 44.‍2(1) of the Judges Act, as it read immediately before the day on which this section comes into force, is deemed to have revoked the election on that day. Members of Parliament Retiring Allowances Act 34 A former member who made an election under subsection 25(1) or 45(1) of the Members of Parliament Retiring Allowances Act, as those subsections read immediately before the day on which this section comes into force, is deemed to have revoked the election on that day. Public Service Superannuation Act 35 A contributor who elected to reduce the amount of their annuity or annual allowance under subsection 13.‍1(1) of the Public Service Superannuation Act, as it read immediately before the day on which this section comes into force, is deemed to have revoked the election on that day. Royal Canadian Mounted Police Superannuation Act 36 A contributor who elected to reduce the amount of their annuity or annual allowance under subsection 14.‍1(1) of the Royal Canadian Mounted Police Superannuation Act, as it read immediately before the day on which this section comes into force, is deemed to have revoked the election on that day. Coordinating Amendments 2017, c. 33 37 (1) In this section, “other Act” means the Budget Implementation Act, 2017, No. 2, chapter 33 of the Statutes of Canada, 2017. (2) If section 6 of this Act comes into force before subsection 242(6) of the other Act, then that subsection 242(6) is replaced by the following: (6) Subsection 44(3) of the English version of the Act is replaced by the following: Prothonotaries (3) No annuity shall be paid under this section to the survivor of a prothonotary of the Federal Court if the prothonotary ceased to hold the office of prothonotary before the day on which this subsection comes into force. (3) If section 6 of this Act comes into force on the same day as subsection 242(6) of the other Act, then that section 6 is deemed to have come into force before that subsection 242(6) and subsection (2) applies as a consequence. (4) If section 7 of this Act comes into force before section 244 of the other Act, then that section 244 is repealed. (5) If section 7 of this Act comes into force on the same day as section 244 of the other Act, then that section 7 is deemed to have come into force before that section 244 and subsection (4) applies as a consequence. Published under authority of the Speaker of the House of Commons Publication Explorer Publication Explorer ParlVU