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Bill C-378

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1st Session, 37th Parliament,
49-50 Elizabeth II, 2001

House of Commons of Canada

BILL C-378

An Act to amend the Income Tax Act, the Members of Parliament Retiring Allowances Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act (dependent beneficiaries)

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

R.S., c. 1 (5th Supp.)

INCOME TAX ACT

1. The definition ``registered pension plan'' in subsection 248(1) of the Income Tax Act is replaced by the following:

``registered pension plan''
« régime de pension agréé »

``registered pension plan'' means a pension plan

      (a) that has been registered by the Minister for the purposes of this Act, which registration has not been revoked, and

      (b) that, in respect of the 2004 and subsequent taxation years, in the case of a plan that provides for a benefit to a surviving spouse or minor child, includes a right for a contributor, who has no spouse or minor children, to designate one or more of the contributors family members including a child who is not a minor child, a grandchild, father, mother, brother, sister, uncle or aunt of the contributor who, at the time of the contributor's death, are and have for at least the three preceding years been financially dependent, to the extent of fifty percent or more, on the contributor, as persons who may receive the benefit that would otherwise be payable to a surviving spouse, in the shares designated by the contributor;

R.S., c. M-5

MEMBERS OF PARLIAMENT RETIRING ALLOWANCES ACT

2. Paragraph 20(1)(b) of the Members of Parliament Retiring Allowances Act is replaced by the following:

    (b) to each child, an allowance equal to one tenth of the basic retirement allowance, or if the member or former member died leaving no one entitled to an allowance under paragraph (a), to each child a share of three-fifths of the basic retirement allowance divided equally between all of the children; or

    (c) if the member or former member died leaving no one entitled to an allowance under paragraph (a) or (b), to such family dependant as the member or former member had designated for the purpose or shared between two or more family dependants designated by the member or former member in the shares designated by the member or former member, an allowance equal to three-fifths of the basic retirement allowance.

3. Section 20 of the Act is amended by adding the following after subsection (1):

Definition of ``family dependant''

(1.1) In subsection (1), ``family dependant'' means a person

    (a) who is

      (i) a child of the member or former member but is not within the age limits provided in paragraphs (a) and (b) of the definition of ``child'' in subsection 2(1) or is a grandchild, father, mother, brother, sister, uncle or aunt of the member or former member, or

      (ii) is an equivalent step or in-law relative of the member or former member; and

    (b) who was, at the time of the death of the member or former member and had been for no less than the three-year period prior to the death of the member or former member, financially dependent to an extent of fifty percent or more on the member or former member.

R.S., c. P-36

PUBLIC SERVICE SUPERANNUATION ACT

4. The portion of subsection 12(4) of the Public Service Superannuation Act that follows paragraph (a) is replaced by the following:

    (b) in the case of each child, an immediate annual allowance of a share of the basic allowance, divided equally between all of the children; or

    (c) if the contributor died leaving no one entitled to an allowance under paragraph (a) or (b), to such family dependant as the contributor had designated for the purpose or shared between two or more family dependants designated by the contributor in the shares designated by the contributor, an allowance equal to three-fifths of the basic retirement allowance.

5. Subsections 12(6) to (9) of the Act are replaced by the following:

Idem

(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, and if there be none, the family dependants designated by 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.

Idem

(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, and if there be none, the family dependants designated by 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.

Lump sum payment to survivors

(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, and if there be none, the family dependants designated by the contributor , are entitled, jointly, to a death benefit equal to a return of contributions.

Definitions

(9) For the purposes of this section and section 13,

``child''
« enfant »

``child'' means a child of the contributor

      (a) who is less than eighteen years of age, or

      (b) who is eighteen or more years of age but less than twenty-five years of age, and is in full-time attendance at a school or university, having been in such attendance substantially without interruption since the child reached eighteen years of age or the contributor died, whichever occurred later;

``family dependant''"
« membre à charge de sa famille »

``family dependant'' means a person

      (a) who is

        (i) a child of the contributor but is not within the age limits provided in paragraphs (a) and (b) of the definition of ``child'' in subsection 12(9) or is a grandchild, father, mother, brother, sister, uncle or aunt of the contributor, or

        (ii) is an equivalent step or in-law relative of the contributor, and

      (b) who was, at the time of the death of the contributor and had been for no less than the three-year period prior to the death of the contributor, financially dependent to an extent of fifty percent or more on the contributor.

6. Subsections 13(2) and (3) of the Act are replaced by the following:

Allowance to survivors

(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, and if there be none, the family dependants designated by 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).

Idem

(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, and if there be none, the family dependants designated by 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.

R.S., c. R-10

ROYAL CANADIAN MOUNTED POLICE SUPERANNUATION ACT

7. The portion of subsection 13(1) of the Royal Canadian Mounted Police Superannuation Act that follows paragraph (a) is replaced by the following:

    (b) in the case of each child, an immediate annual allowance of a share of the basic allowance, divided equally between all of the children; or

    (c) if the contributor died leaving no one entitled to an allowance under paragraph (a) or (b), to such family dependant as the contributor had designated for the purpose or shared between two or more family dependants designated by the contributor in the shares designated by the contributor, an allowance equal to three-fifths of the basic retirement allowance.

8. Subsection 13(3) of the Act is replaced by the following:

Benefits

(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, children and family dependants 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.

9. Section 13 of the Act is amended by adding the following after subsection 4:

Definition of ``family dependant''

(5) For the purpose of this Act, ``family dependant'' means a person

    (a) who is a child of the contributor who is not within the age limits provided in paragraphs (a) and (b) of the definition of ``child'', or is a grandchild, father, mother, brother, sister, uncle or aunt, or an equivalent step or in-law relative of the contributor; and

    (b) who was, at the time of the death of the contributor and had been for no less than the three-year period prior to the death of the contributor, financially dependent to an extent of fifty percent or more on the contributor.

10. The portion of section 14 of the Act that precedes paragraph (a) is replaced by the following:

Benefits payable on death

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, and in any other case, the family dependants as defined in subsection 13(5), if any, are entitled jointly to a death benefit equal to

Coming into force

11. (1) Subject to subsection (2), this Act comes into force on January 1, 2002.

Coming into force of Income Tax Act amendment

(2) Section 1 comes into force on January 1, 2004.

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