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Bill C-78

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	132. The Act is amended by adding the following after section 24:
Commuted value of annuity	24.1 (1) A contributor who has ceased to be a member of the regular force and is entitled to an annuity under this Act is entitled, in the place of any other benefit under this Act to which the contributor would otherwise be entitled in respect of the period of pensionable service on which the annuity is based, to direct that the commuted value of the annuity determined in accordance with the regulations be transferred in accordance with the regulations to, at the direction of the contributor,
	(a) a pension plan selected by the contributor that is registered under the Income Tax Act, if that pension plan so permits;
	(b) a retirement savings plan or fund for the contributor that is of the kind prescribed by the regulations; or
	(c) a financial institution authorized to sell immediate or deferred life annuities of the kind prescribed by the regulations, for the purchase from that financial institution of such an annuity for the contributor.
Election to pay by instalments	(2) If a contributor who is entitled to direct the transfer of a commuted value has elected to pay for a period of pensionable service by means of instalments, that value shall be determined in accordance with the regulations and by reference to the portion of the period of pensionable service that the contributor has paid for at the time of the transfer.
Election	(3) Once a transfer has been made under subsection (1), a person who is re-enrolled as a member of the regular force after the transfer and becomes a contributor may only count as pensionable service the period of service to which the transfer relates if he or she elects, in accordance with the terms and conditions prescribed by the regulations, to pay the amount prescribed by the regulations at the time and in the manner prescribed by the regulations.
1992, c. 46, s. 41	133. (1) Subsection 25(1) of the Act is replaced by the following:
Benefits payable on death	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 survivor 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 survivor, 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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Act, 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 survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Act, eight-fifths of the basic allowance.
	(2) Subsection 25(3) of the Act is replaced by the following:
Benefits	(3) On the death of a contributor who served in the regular force for a period that is the lesser of five years and the period prescribed by the regulations for the purposes of this subsection and was a member of the regular force at the time of death, the survivor 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 death, become entitled under this Act to an annuity.
	(3) The portion of subsection 25(5) of the Act before paragraph (a) is replaced by the following:
Benefits payable on death	(5) On the death of a contributor who served in the regular force for less than the lesser of five years and the period prescribed by the regulations for the purposes of subsection (3) and was a member of the regular force at the time of death, the survivor and children of the contributor, in any case where the contributor died leaving a survivor or a child less than eighteen years of age, are entitled jointly to a death benefit equal to
1992, c. 46, s. 42	134. Subsection 25.1(4) of the Act is replaced by the following:
Revocation	(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 section 5 to contribute to the Superannuation Account or the Canadian Forces Pension Fund, the election is deemed to be revoked at the time determined in accordance with the regulations.
	135. Section 26 of the Act and the heading before it are replaced by the following:
	Payments to Survivors, Children and Other Beneficiaries
Lump sum payments	26. Where, in this Part, it is provided that the survivor 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 survivor 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 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 of the contributor 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 of the contributor 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,
	(ii) if the contributor is not survived by a beneficiary so named and the death of the contributor occurred while he or she was a member of the regular force, to the service estate of the contributor, and
	(iii) 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	26.1 (1) If there are two survivors of a contributor, the share of the total amount referred to in section 26 to be paid to the survivor referred to in paragraph (a) of the definition ``survivor'' in subsection 2(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) Nothing in subsection (1) 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.
1992, c. 46, s. 43	136. Sections 28 to 30 of the Act are replaced by the following:
Allowances paid to children	28. When a child of a contributor is entitled to an annual allowance or other amount under this Act, 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	29. (1) For the purposes of this Act, 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	(2) For the purposes of this Act, 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	(3) A survivor is not entitled to receive an annual allowance if the survivor makes an irrevocable waiver under subsection (4).
Permitted waivers	(4) 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 25(1)(b); or
	(b) a benefit being paid under any of sections 38 to 40.
Time for waiver	(5) A waiver must be made no later than three months after the survivor is notified of his or her entitlement to an allowance and takes effect as of the date of the death of the contributor.
When survivor not to receive benefits - criminal responsibility for death	(6) 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	(7) 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	(8) When an annual allowance is payable under paragraph 25(1)(a) 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 2(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	(9) In determining a number of years for the purposes of subsection (8), 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	(10) When one of the survivors referred to in subsection (8) 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. 44	137. Subsection 31(1) of the Act is replaced by the following:
Marriage after sixty years of age	31. (1) Subject to section 25.1 but notwithstanding any other provision of this Act, the survivor of a contributor is not entitled to an annual allowance in respect of the contributor under this Part if at the time the contributor married the survivor or began to cohabit with the survivor in a relationship of a conjugal nature, the contributor had attained the age of sixty years unless, after that time, the contributor became or continued to be a contributor.
	138. Section 32 of the Act is replaced by the following:
Death within one year after marriage	32. Notwithstanding anything in this Act, 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.
	139. Section 34 of the Act is replaced by the following:
Transitional	34. 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 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.
1989, c. 6, s. 10	140. Section 35.1 of the Act is repealed.
	141. Section 36 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.
	142. (1) The portion of subsection 41(1) of the Act before paragraph (b) is replaced by the following:
Persons re-enrolled or transferred	41. (1) If 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 a contributor under this Part, whatever right or claim that he or she may have had to that annuity or pension, in this subsection referred to as the ``original annuity'', then ceases and the period of service on which the original annuity was based may be counted by him or her as pensionable service for the purposes of this Part, except that
	(a) if, on subsequently ceasing to be a member of the regular force, he or she 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 or the Canadian Forces Pension Fund to his or her credit at any time before the time of re-enrollment in the regular force, and whatever right or claim that, but for this subsection, he or she would have had to the original annuity on subsequently ceasing to be a member of the regular force shall be restored to him or her; and
1992, c. 46, s. 46	(2) Subsection 41(3) of the Act is replaced by the following:
Deemed re-enrolment	(3) For the purposes of this Act, a person who, after having ceased to be required by subsection 5(1) or (1.01) to contribute to the Superannuation Account or the Canadian Forces Pension Fund, is enrolled in or transferred to the reserve force shall, on the expiry of any continuous period of full-time service in the reserve force 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.
1992, c. 46, s. 46	(3) Subsection 41(5) of the Act is replaced by the following:
Payment	(5) A person who makes an election under subsection (4) shall pay into the Superannuation Account or the Canadian Forces Pension Fund, 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).
	143. (1) Subsection 42(1) of the Act is replaced by the following:
Election	42. (1) A 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 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 is, subject to subsections (1.1) and (1.2), 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 of it 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 portion after March 31, 1969 but before January 1, 2000, 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 of it after March 31, 1969 but before 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 of it after February 1, 1976 but before January 1, 2000,
	minus, in respect of any period of service or portion after 1965 but before January 1, 2000, 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 or her 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 the 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 the gratuity if the contributor becomes a contributor in the third month following the month in which that period of service terminated,

Bill C-78

Payments to Survivors, Children and Other Beneficiaries