Bill C-45

Consequential Amendments to the Financial Administration Act

461. (1) Part I of Schedule III to the Financial Administration Act is amended by striking out the following:

Canada Employment Insurance Financing Board

(2) Part I of Schedule III to the Act is amended by adding the following in alphabetical order:

Canada Employment Insurance Financing Board

Coordinating Amendments

462. (1) In this section, “other Act” means the Jobs, Growth and Long-term Prosperity Act.

(2) If section 307 of the other Act comes into force before subsection 436(4) of this Act, then, on the first day on which both that section 307 and subsection 436(3) of this Act are in force, paragraph 66.1(1)(b) of the Employment Insurance Act is replaced by the following:

(b) the forecast costs to be paid under paragraphs 77(1)(d), (d.1), (f) and (g) during the following year, including any forecast change in those costs resulting from any change to the payments referred to in paragraph (a);

(3) On the first day on which both section 307 of the other Act and subsection 436(4) of this Act are in force, paragraph 66.1(1)(b) of the Employment Insurance Act is replaced by the following:

(b) the forecast costs to be paid under paragraphs 77(1)(d), (d.1) and (g) during the following year, including any forecast change in those costs resulting from any change to the payments referred to in paragraph (a); and

(4) If section 307 of the other Act comes into force before subsection 439(1) of this Act, then subsection 439(1) of the English version of this Act is replaced by the following:

439. (1) Subsection 77(1) of the Act is amended by adding “and” at the end of paragraph (d.1) and by repealing paragraphs (e) and (f).

(5) If subsection 439(1) of this Act comes into force before section 307 of the other Act, then, on the day on which that section 307 comes into force, subsection 77(1) of the English version of the Employment Insurance Act is amended by striking out “and” at the end of paragraph (d) and by adding “and” at the end of paragraph (d.1).

(6) If section 307 of the other Act comes into force on the same day as subsection 439(1) of this Act, then that subsection 439(1) is deemed to have come into force before that section 307 and subsection (5) applies as a consequence.

Coming into Force

463. (1) Subsections 433(1) and (3), 434(1), 435(1), (2), (4), (6) and (8), 436(1), (4), (5) and (7), 437(1), (3) and (5), 438(1), 439(1), 440(1) and (3), 441(1), 442(1), 443(1) and 445(2), sections 447 and 452 to 460 and subsection 461(1) come into force on a day to be fixed by order of the Governor in Council.

(2) Subsections 439(3), 442(2), 443(2) and 461(2) come into force on the first day on which the Governor in Council makes an order under section 448.

(3) Subsection 439(2) comes into force on a day, after the day referred to in subsection (2), to be fixed by order of the Governor in Council.

(4) Subsections 433(2) and (4), 434(2), 435(3), (5), (7) and (9), 436(2), (6) and (8), 437(2), (4) and (6), 438(2), 440(2) and (4) and 441(2) come into force on the day on which subsection 609(2) of the Jobs, Growth and Long-term Prosperity Act comes into force.

Division 23

Public Sector Pensions

Canadian Forces Superannuation Act

Amendments to the Act

464. The portion of the definition “contributor” in subsection 2(1) of the Canadian Forces Superannuation Act before paragraph (b) is replaced by the following:

“contributor” means a person who is required by section 5 to contribute to the Canadian Forces Pension Fund, and includes, unless the context otherwise requires,

(a) a person who has ceased to be required by this Act to contribute to the Superannuation Account or the Canadian Forces Pension Fund, and

465. Section 5 of the Act is replaced by the following:

5. (1) A member of the regular force, except a person described in subsection (6), is required to contribute to the Canadian Forces Pension Fund, in respect of every portion of the period beginning on January 1, 2013 by reservation from salary or otherwise, at the contribution rates determined by the Treasury Board in respect of that portion on the joint recommendation of the President of the Treasury Board and the Minister.

(2) A person who has to his or her credit, on or after January 1, 2013, a period of pensionable service — or a period of pensionable service and other pensionable service — totalling at least 35 years is not required to contribute under subsection (1) but is required to contribute, by reservation from salary or otherwise, to the Canadian Forces Pension Fund, in respect of the period beginning on the later of January 1, 2013 and the day on which the person has to his or her credit those 35 years, in addition to any other amount required under this Act, at the rates determined by the Treasury Board on the joint recommendation of the President of the Treasury Board and the Minister.

(3) In determining the contribution rates for the purposes of subsections (1) and (2), the rates must not exceed the rates paid under section 5 of the Public Service Superannuation Act by Group 1 contributors who are described in subsection 12(0.1) of that Act.

(4) For the purpose of subsection (2), “other pensionable service” means years of service, other than service credited under a plan established in accordance with Part I.1, giving rise to a superannuation or pension benefit of a kind specified in the regulations that is payable

(a) out of the Consolidated Revenue Fund, or out of any account in the accounts of Canada other than the Superannuation Account; or

(b) out of the Public Service Pension Fund within the meaning of the Public Service Superannuation Act or the Royal Canadian Mounted Police Pension Fund within the meaning of the Royal Canadian Mounted Police Superannuation Act.

(5) Despite anything in this Part, no person shall, in respect of any period of his or her service on or after December 15, 1994, make a contribution under this Part in respect of any portion of his or her annual rate of pay that is in excess of the annual rate of pay that is fixed by or determined in the manner prescribed by the regulations.

(6) The exceptions are

(a) a member who, immediately before March 1, 1960, was a member of the regular force but not a contributor under Part V of the former Act and who has not elected under subsection 18(2) of the Canadian Forces Superannuation Act, chapter C-9 of the Revised Statutes of Canada, 1970, to become a contributor under this Act; and

(b) a person on leave of absence from employment outside the regular force who, in respect of current service continues to contribute to or under any superannuation or pension fund or plan established for the benefit of employees of the employer from whose employment the member is absent.

466. Clause 6(a)(ii)(A) of the Act is replaced by the following:

(A) any period during which he or she was required by subsections 5(1) and (1.01), as they read on December 31, 2012, to contribute to the Superannuation Account or the Canadian Forces Pension Fund, and any period during which he or she is required by subsection 5(1) to contribute to the Canadian Forces Pension Fund, and

467. (1) Subparagraphs 7(1)(c)(iv) and (v) of the Act are replaced by the following:

(iv) 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), as it read on December 31, 2003, in respect of that period or portion,

(v) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.01), as it read on December 31, 2012, in respect of that period or portion, and

(2) Subparagraphs 7(1)(d)(iv) and (v) of the Act are replaced by the following:

(iv) 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), as it read on December 31, 2003, in respect of that period or portion,

(v) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.01), as it read on December 31, 2012, in respect of that period or portion, and

(3) Subparagraphs 7(1)(g)(iv) and (v) of the Act are replaced by the following:

(iv) 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), as it read on December 31, 2003, in respect of that period or portion,

(v) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.01), as it read on December 31, 2012, in respect of that period or portion, and

(4) Section 7 of the Act is amended by adding the following after subsection (1):

468. Subsection 9(1) of the Act is replaced by the following:

9. (1) Subject to this section, any amount required by subsection 7(1) or (1.1) to be paid by a contributor in respect of any period of service for which he or she has elected to pay shall be paid by him or her into the Superannuation Account, at his or her option,

(a) in a lump sum, at the time of making the election; or

(b) in instalments, on the terms and computed on the bases as to mortality and interest as are prescribed by the regulations.

469. Subsection 15(5) of the Act is replaced by the following:

(5) For the purposes of subparagraphs (1)(a)(ii) and (iii), a period of service during which a person continues to be a member of the regular force and is required to make contributions under subsection 5(2), or was required to make contributions under subsection 5(2), (3) or (4) as it read on December 31, 2012, is deemed to be a period of pensionable service to his or her credit.

470. Subsection 41(3) of the Act is replaced by the following:

(3) For the purposes of this Act, a person who, after having ceased to be required by section 5 to contribute to the Superannuation Account or the Canadian Forces Pension Fund, is enrolled in or transferred to the reserve force is on the expiry of any continuous period of full-time service in the reserve force of one year, beginning on or after January 1, 2000, deemed to have become re-enrolled in the regular force at the end of that period.

471. (1) Paragraph 49.1(2)(b) of the Act is replaced by the following:

(b) three members appointed from among persons required to contribute to the Canadian Forces Pension Fund who are nominated for appointment by the Chief of the Defence Staff to represent persons serving in the Canadian Forces;

(2) Paragraph 49.1(2)(d) of the Act is replaced by the following:

(d) five other members appointed by the Minister, four of whom must be from among persons required to contribute to the Canadian Forces Pension Fund and one of whom may be a person required to contribute to any other superannuation or pension account in the accounts of Canada or the Public Service Pension Fund within the meaning of the Public Service Superannuation Act or the Royal Canadian Mounted Police Pension Fund within the meaning of the Royal Canadian Mounted Police Superannuation Act.

472. Paragraph 50(1)(g) of the Act is replaced by the following:

(g) fixing an annual rate of pay for the purposes of subsection 5(5) or prescribing the manner of determining the annual rate of pay;

Consequential Amendment to the Special Retirement Arrangements Act

473. Paragraph 11(3)(b) of the Special Retirement Arrangements Act is replaced by the following:

(b) subsection 5(5) of the Canadian Forces Superannuation Act;

Coordinating Amendments

474. (1) In this section, “other Act” means An Act to amend the Canadian Forces Superannuation Act and to make consequential amendments to other Acts, chapter 26 of the Statutes of Canada, 2003.

(2) If section 5 of the other Act comes into force before subsections 467(1) to (3) of this Act, then those subsections 467(1) to (3) are repealed.

(3) If section 5 of the other Act comes into force on the same day as subsections 467(1) to (3) of this Act, then those subsections 467(1) to (3) are deemed to have come into force before that section 5.

(4) If section 5 of the other Act comes into force before subsection 467(4) of this Act, then that subsection 467(4) and section 468 of this Act are repealed.

(5) If section 5 of the other Act comes into force on the same day as subsection 467(4) of this Act, then that subsection 467(4) and section 468 of this Act are deemed to have come into force before that section 5.

(6) If section 21 of the other Act comes into force before section 470 of this Act, then that section 470 is repealed.

(7) If section 21 of the other Act comes into force on the same day as section 470 of this Act, then that section 470 is deemed to have come into force before that section 21.

Public Service Superannuation Act

Amendments to the Act

475. The portion of the definition “contributor” in subsection 3(1) of the Public Service Superannuation Act before paragraph (b) is replaced by the following:

“contributor” means a person required by section 5 to contribute to the Public Service Pension Fund, and, unless the context otherwise requires,

(a) a person who has ceased to be required by this Act to contribute to the Superannuation Account or the Public Service Pension Fund, and

476. (1) The portion of subsection 5(1) of the Act before paragraph (a) is replaced by the following:

5. (1) Subsections (2) and (3) apply to persons employed in the public service, other than

(2) Paragraph 5(1)(d) of the Act is repealed.

(3) Subsections 5(1.1) to (4) of the Act are replaced by the following:

(2) A person is required to contribute to the Public Service Pension Fund, in respect of every portion of the period beginning on January 1, 2013, by reservation from salary or otherwise, at the contribution rates determined by the Treasury Board in respect of that portion on the recommendation of the Minister.

(3) A person who has to his or her credit, on or after January 1, 2013, a period of pensionable service — or a period of pensionable service and other pensionable service — totalling at least 35 years is not required to contribute under subsection (2) but is required to contribute, by reservation from salary or otherwise, to the Public Service Pension Fund, in respect of the period beginning on the later of January 1, 2013 and the day on which the person has to his or her credit those 35 years, in addition to any other amount required under this Act, at the rates determined by the Treasury Board on the recommendation of the Minister.

(4) In determining the contribution rates of Group 1 contributors described in subsection 12(0.1) and of Group 2 contributors described in subsection 12.1(1) for the purposes of subsections (2) and (3), the rates must not result in a total amount of contributions that would exceed 50% of the current service cost of Group 1 or Group 2, as the case may be, for the portion of the period in respect of the benefits payable under Parts I and III.

(4) The portion of subsection 5(5) of the Act before paragraph (a) is replaced by the following:

(5) For the purpose of subsection (3), “other pensionable service” means years of service giving rise to a superannuation or pension benefit of a kind specified in the regulations that is payable

(5) Subsection 5(6) of the Act is replaced by the following:

(6) Despite anything in this Part, no person shall, in respect of any period of his or her service on or after December 15, 1994, make a contribution under this Part in respect of any portion of his or her annual rate of salary that is in excess of the annual rate of salary that is fixed by or determined in the manner prescribed by the regulations.

477. (1) Clause 6(1)(a)(i)(B) of the Act is replaced by the following:

(B) any period during which he or she was required by subsections 5(1.1) and (1.2), as they read on December 31, 2012, to contribute to the Superannuation Account or the Public Service Pension Fund,

(2) Clause 6(1)(a)(ii)(A) of the Act is replaced by the following:

(A) any period during which he or she was required by subsections 5(1.1) and (1.2), as they read on December 31, 2012, to contribute to the Superannuation Account or the Public Service Pension Fund and any period during which he or she is required by subsection 5(2) to contribute to the Public Service Pension Fund,

(3) Clause 6(1)(a)(iii)(A) of the Act is replaced by the following:

(A) any period of service that may be counted by that contributor as pensionable service under section 29 or subsection 35(2), 40(11), (11.1) or (13) or 40.2(9),

(4) Clause 6(1)(a)(iii)(D) of the Act is replaced by the following:

(D) any period of service in the public service before becoming a contributor under this Part during which he or she contributed to the Superannuation Account or the Public Service Pension Fund in the manner and at the rates set out in subsections 5(1.1) and (1.2), as they read on December 31, 2012, if that service is service for which he or she might have elected, under this Part or Part I of the Superannuation Act on subsequently becoming a contributor under those Parts, to pay, but for which he or she failed so to elect within the time prescribed for elections,

478. (1) Subparagraphs 7(1)(e)(iii) and (iv) of the Act are replaced by the following:

(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), as it read on December 31, 2003, in respect of that period or portion,

(iv) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.2), as it read on December 31, 2012, in respect of that period or portion, and

(2) Subparagraphs 7(1)(f)(iii) and (iv) of the Act are replaced by the following:

(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), as it read on December 31, 2003, in respect of that period or portion,

(iv) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.2), as it read on December 31, 2012, in respect of that period or portion, and

479. (1) The definition “deferred annuity” in subsection 10(1) of the Act is replaced by the following:

“deferred annuity” means an annuity that becomes payable to the contributor at the time he or she reaches 60 years of age, in the case of a Group 1 contributor described in subsection 12(0.1), or 65 years of age, in the case of a Group 2 contributor described in subsection 12.1(1);

(2) Paragraphs (a) and (b) of the definition “cash termination allowance” in subsection 10(1) of the Act are replaced by the following:

(a) at the time he or she ceases to contribute to the Public Service Pension Fund, or

(b) in the case of a contributor who continues to be employed in the public service after having ceased to contribute to the Public Service Pension Fund under subsection 5(2) or (3), at the time he or she ceases to be employed in the public service,

(3) The portion of subsection 10(5) of the Act before paragraph (a) is replaced by the following:

(5) When, under any of sections 12 to 13.001, a contributor is entitled to a benefit specified in that section at his or her option,

(4) Subsections 10(6) to (8) of the Act are replaced by the following:

(6) When, under any of sections 12 to 13.001, a contributor is entitled to a benefit specified in that section at his or her option, the option may be revoked and a new option exercised by the contributor, under the circumstances and on the terms and conditions that the Governor in Council by regulation prescribes.

(7) If a contributor who is entitled under any of sections 12 to 13.001 to a return of contributions becomes re-employed in the public service and a contributor under this Part before those contributions have been paid to him or her, the period of pensionable service to which those contributions relate (except any such period specified in clause 6(1)(a)(iii)(C) or (E)) shall be counted as pensionable service for the purposes of this Part, and the amount of those contributions shall, in lieu of being paid to him or her, be applied in payment of or on account of the amount required by this Part to be paid by him or her for that service.

(8) A contributor who has to his or her credit a period of pensionable service in respect of which no amount can, by virtue of subsection 40(9), be paid to an approved employer is entitled in respect of that service, on ceasing to be employed in the public service, to a benefit specified in whichever of sections 12 to 13.001 that applies to him or her, other than a cash termination allowance or a return of contributions.

480. Subsection 11(8) of the Act is replaced by the following:

(8) For the purposes of subparagraphs (1)(a)(ii) and (iii), any period of service during which a person is employed in the public service and is required to make contributions under subsection 5(3), or was required to make contributions under subsection 5(3), (3.1) or (4) as it read on December 31, 2012, is deemed to be a period of pensionable service to his or her credit.

481. The heading before section 12 of the Act is replaced by the following:

Group 1 Contributors with Less than Two Years of Pensionable Service

482. (1) Section 12 of the Act is amended by adding the following before subsection (1):

(2) The portion of subsection 12(1) of the Act before paragraph (a) is replaced by the following:

(1) The following provisions are applicable in respect of any contributor described in subsection (2):

(3) The portion of subsection 12(2) of the Act before paragraph (a) is replaced by the following:

(2) For the purposes of subsection (1), a contributor described in this subsection is any Group 1 contributor who

(4) Subsection 12(3) of the Act is replaced by the following:

(3) A Group 1 contributor, other than one described in subsection (2), who has to his or her credit less than two years of pensionable service, is entitled, on ceasing to be employed in the public service, to a return of contributions.

483. The Act is amended by adding the following after section 12:

484. The heading before section 13 of the Act is replaced by the following:

Group 1 Contributors with Two or More Years of Pensionable Service

485. (1) The portion of subsection 13(1) of the Act before paragraph (a) is replaced by the following:

13. (1) The following provisions are appli-cable in respect of any Group 1 contributor described in subsection 12(0.1) who has to his or her credit two or more years of pensionable service:

(2) Subsections 13(3) and (4) of the Act are replaced by the following:

(3) On the death of a Group 1 contributor described in subsection 12(0.1) who was employed in the public service at the time of death, having to his or her credit two or more years of pensionable service, the contributor’s survivor and children are entitled to the annual allowances to which they would have been entitled under subsection (2) had the contributor, immediately before his or her death, become entitled under subsection (1) to an immediate annuity or a deferred annuity or an annual allowance payable immediately or on reaching 50 years of age.

(4) Despite anything in this section, a Group 1 contributor described in subsection 12(0.1) who voluntarily retires from the public service, not having been employed in it substantially without interruption for a period of two years immediately before retirement from it, is entitled only to a return of contributions.

486. The Act is amended by adding the following after section 13:

487. Section 19 of the Act is replaced by the following:

19. Subject to subsection 5(6), every person employed in operational service and required to contribute to the Public Service Pension Fund under subsection 5(2) is, except in the circumstances described in subsection 5(3), required to contribute to the Public Service Pension Fund by reservation from salary or otherwise, in addition to any other amount required under this Act, 2% of his or her salary.

488. Sections 24.2 and 24.3 of the Act are replaced by the following:

24.2 Any person who is employed in operational service by the Correctional Service of Canada on or after March 18, 1994 and who was required by subsection 5(1.1) or (1.2), as it read on December 31, 2012, to contribute to the Superannuation Account or the Public Service Pension Fund or is required by subsection 5(2) to contribute to the Public Service Pension Fund is entitled, at his or her option on ceasing to be employed in the public service, in respect of the operational service that is pensionable service to his or her credit, to an immediate annuity or annual allowance calculated in the manner prescribed by the regulations, in the circumstances and subject to the terms and conditions prescribed by those regulations, in lieu of any benefit to which that person is otherwise entitled under subsection 13(1) or 13.001(1) in respect of that service.

24.3 If a person is entitled to a benefit under subsection 13(1) or 13.001(1), and section 24.2, the number of years of pensionable service to his or her credit is, for the purpose of computing the benefit to which he or she is entitled under subsection 13(1) or 13.001(1), deemed to be

(a) the number of years of pensionable service to his or her credit

minus

(b) the number of years of pensionable service to his or her credit in respect of which he or she is entitled to a benefit under section 24.2.

489. Subsection 24.4(1) of the Act is replaced by the following:

24.4 (1) Subject to subsections (2) and 5(6), every person who is employed in operational service by the Correctional Service of Canada on or after March 18, 1994 and who is required by subsection 5(2) to contribute to the Public Service Pension Fund is, except in the circumstances described in subsection 5(3), required to contribute to the Public Service Pension Fund by reservation from salary or otherwise, in addition to any other amount required under this Act, any percentage of his or her salary that is determined by the Treasury Board on the recommendation of the Minister, which recommendation is to be based on actuarial advice.

490. Section 24.5 of the Act is replaced by the following:

24.5 A reference in subsection 10(6) to a benefit specified at the contributor’s option under section 13 or 13.001 shall be read as including a reference to an immediate annuity or annual allowance at the contributor’s option under section 24.2, and a reference in subsection 13(2) or (3) or 13.001(2) or (3) to the immediate annuity, deferred annuity or annual allowance to which the contributor was entitled under subsection 13(1) or 13.001(1) shall be read as including a reference to the contributor’s entitlement to an immediate annuity or annual allowance under section 24.2.

491. (1) Paragraph 25(6)(a) of the Act is replaced by the following:

(a) an increase in the allowance payable to a child under paragraph 12(4)(b) or 12.1(5)(b); or

(2) The portion of subsection 25(10) of the Act before paragraph (a) is replaced by the following:

(10) When an annual allowance is payable under paragraph 12(4)(a) or 12.1(5)(a) or subsection 13(2) or 13.001(2) and there are two survivors of the contributor, the total amount of the annual allowance shall be apportioned so that

492. (1) Subsection 26(5) of the Act is replaced by the following:

(5) Nothing in this section prejudices any right that a child of an earlier marriage of the contributor has to an allowance under any of sections 12 to 13.001.

(2) Paragraph 26(7)(b) of the Act is replaced by the following:

(b) required by subsection 5(1.1) or (1.2), as it read on December 31, 2012, or by subsection 5(2) to contribute to the Superannuation Account or the Public Service Pension Fund.

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

27. (1) This subsection applies to

(a) 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 ended on December 31, 1999;

(b) a contributor who was not required to contribute to the Superannuation Account or the Public Service Pension Fund under subsection 5(1.1) or (1.2), as it read on December 31, 2012, in the period that began on or after January 1, 2000 and that ended on December 31, 2012; and

(c) a contributor who was not required to contribute to the Public Service Pension Fund under subsection 5(2).

If, on the death of such a contributor, 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, 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 $1,000, as the Minister may direct.

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

(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 ended on December 31, 1999, a contributor who was required to contribute to the Superannuation Account or the Public Service Pension Fund under subsection 5(1.1) or (1.2), as it read on December 31, 2012, in the period that began on or after January 1, 2000 and that ended on December 31, 2012, or a contributor who was required to contribute to the Public Service Pension Fund under subsection 5(2), 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

494. Paragraph 28(a) of the Act is replaced by the following:

(a) is less than 60 years of age, in the case of a Group 1 contributor described in subsection 12(0.1), or is less than 65 years of age, in the case of a Group 2 contributor described in subsection 12.1(1), and

495. Section 29 of the Act is replaced by the following:

29. If a person who is entitled, under any of subsections 12(1), 12.1(2), 13(1) or 13.001(1) or any regulations made for the purposes of section 24.2, to an annuity or an annual allowance 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 or 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 section, he or she would have had to the annuity or annual allowance on ceasing to be so re-employed shall then be restored to him or her.

496. (1) Subparagraphs 39(2)(b)(iii) and (iv) of the Act are replaced by the following:

(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), as it read on December 31, 2003, in respect of that period or portion,

(iv) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.2), as it read on December 31, 2012, in respect of that period or portion, and

(2) Subparagraphs 39(2)(c)(iii) and (iv) of the Act are replaced by the following:

(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), as it read on December 31, 2003, in respect of that period or portion,

(iv) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.2), as it read on December 31, 2012, in respect of that period or portion, and

497. Subsection 40.2(8) of the Act is replaced by the following:

(8) If the amount paid by the Minister to an eligible employer under subsection (3) in respect of an employee is less than the return of contributions to which that employee would otherwise be entitled under any of sections 12 to 13.001, the Minister shall pay to the employee an amount equal to the amount of the difference.

498. (1) Paragraph 42(1)(v) of the Act is replaced by the following:

(v) respecting, for the purposes of paragraphs 13(1)(d) and 13.001(1)(d) and subsections 13(6) and 13.001(7), the method by which the amount of any annuity or annual allowance payable to a contributor described in paragraph 13(1)(a), (c) or (d) or 13.001(1)(a), (c) or (d), as the case may be, shall be adjusted;

(2) Subsection 42(1) of the Act is amended by adding the following after paragraph (x):

499. (1) Paragraph 42.1(1)(a) of the Act is replaced by the following:

(a) fixing an annual rate of salary for the purposes of subsection 5(6) or prescribing the manner of determining the annual rate of salary;

(2) Paragraph 42.1(1)(r) of the Act is repealed.

(3) Subsection 42.1(2) of the Act is replaced by the following:

(2) Regulations made under paragraph (1)(a), (f), (g), (h), (i), (m), (q), (s), (u) or (v) may, if they so provide, be retroactive and have effect with respect to any period before they are made.

500. (1) Clause 46.3(3)(b)(ii)(B) of the Act is replaced by the following:

(B) for the period beginning on January 1, 2004, at the rate that the Board of Directors of the Corporation may fix from time to time, that Board being subject to the same restrictions in fixing the rate as is the Treasury Board under subsection 5(1.4), as it read on January 1, 2000;

(2) Section 46.3 of the Act is amended by adding the following after subsection (7):

Transitional Provision

501. Regulations made under paragraph 42.1(1)(v.2) of the Public Service Superannuation Act in order to implement the provisions enacted by sections 475 to 500 of this Act may, if they so provide, be retroactive and have effect with respect to any period before they are made that begins on or after January 1, 2013.

Consequential Amendments

Garnishment, Attachment and Pension Diversion Act

502. (1) Paragraphs 35.1(1)(b) and (c) of the Garnishment, Attachment and Pension Diversion Act are replaced by the following:

(b) is not a recipient but has exercised an option for a deferred annuity under any of sections 12 to 13.001 of the Public Service Superannuation Act or is entitled to do so, and

(2) The portion of subsection 35.1(2) of the Act before paragraph (a) is replaced by the following:

(2) A court to whom an application is made under subsection (1) may make an order deeming the person against whom there is a valid and subsisting financial support order to have exercised an option under any of sections 12 to 13.001 of the Public Service Superannuation Act in favour of an annual allowance payable as of the date of the making of the order under this subsection if the court is satisfied that

Special Retirement Arrangements Act

503. Paragraph 11(3)(a) of the Special Retirement Arrangements Act is replaced by the following:

(a) subsection 5(6) of the Public Service Superannuation Act;

Royal Canadian Mounted Police Superannuation Act

Amendments to the Act

504. The portion of the definition “contributor” in subsection 3(1) of the Royal Canadian Mounted Police Superannuation Act before paragraph (b) is replaced by the following:

“contributor” means a person who is required by section 5 to contribute to the Royal Canadian Mounted Police Pension Fund, and includes, unless the context otherwise requires,

(a) a person who has ceased to be required by this Act to contribute to the Superannuation Account or the Royal Canadian Mounted Police Pension Fund, and

505. Section 5 of the Act is replaced by the following:

5. (1) A member of the Force is required to contribute to the Royal Canadian Mounted Police Pension Fund, in respect of every portion of the period beginning on January 1, 2013, by reservation from pay or otherwise, at the contribution rates determined by the Treasury Board in respect of that portion on the joint recommendation of the President of the Treasury Board and the Minister.

(2) A person who has to his or her credit, on or after January 1, 2013, a period of pensionable service — or a period of pensionable service and other pensionable service — totalling at least 35 years is not required to contribute under subsection (1) but is required to contribute, by reservation from pay or otherwise, to the Royal Canadian Mounted Police Pension Fund, in respect of the period beginning on the later of January 1, 2013 and the day on which the person has to his or her credit those 35 years, in addition to any other amount required under this Act, at the rates determined by the Treasury Board on the joint recommendation of the President of the Treasury Board and the Minister.

(3) In determining the contribution rates for the purposes of subsections (1) and (2), the rates must not exceed the rates paid under section 5 of the Public Service Superannuation Act by Group 1 contributors described in subsection 12(0.1) of that Act.

(4) For the purpose of subsection (2), “other pensionable service” means years of service giving rise to a superannuation or pension benefit of a kind specified in the regulations that is payable

(a) out of the Consolidated Revenue Fund, or out of any account in the accounts of Canada other than the Superannuation Account; or

(b) out of the Canadian Forces Pension Fund within the meaning of the Canadian Forces Superannuation Act or the Public Service Pension Fund within the meaning of the Public Service Superannuation Act.

(5) Despite anything in this Part, no person shall, in respect of any period of his or her service on or after December 15, 1994, make a contribution under this Part in respect of any portion of his or her annual rate of pay that is in excess of the annual rate of pay that is fixed by or determined in the manner prescribed by the regulations.

(6) A member of the Force who is engaged to work on average fewer than a number of hours per week or days per year prescribed in the regulations shall not contribute under this Act.

506. Clause 6(a)(ii)(A) of the Act is replaced by the following:

(A) any period during which he or she was required by subsections 5(1) and (2), as they read on December 31, 2012, to contribute to the Superannuation Account or the Royal Canadian Mounted Police Pension Fund, and any period during which he or she is required by subsection 5(1) to contribute to the Royal Canadian Mounted Police Pension Fund,

507. (1) Subparagraphs 7(1)(d)(iv) and (v) of the Act are replaced by the following:

(iv) 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), as it read on December 31, 2003, in respect of that period or portion,

(v) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(2), as it read on December 31, 2012, in respect of that period or portion, and

(2) Subparagraphs 7(1)(e)(iv) and (v) of the Act are replaced by the following:

(iv) 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), as it read on December 31, 2003, in respect of that period or portion,

(v) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(2), as it read on December 31, 2012, in respect of that period or portion, and

508. Subsection 10(5) of the Act is replaced by the following:

(5) For the purposes of subparagraphs (1)(a)(ii) and (iii), a period of service during which a person continues to be a member of the Force and is required to make contributions under subsection 5(2), or was required to make contributions under subsection 5(5), (6) or (7) as it read on December 31, 2012, is deemed to be a period of pensionable service to his or her credit.

509. Subparagraphs 24(1)(b)(iv) and (v) of the Act are replaced by the following:

(iv) 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), as it read on December 31, 2003, in respect of that period or portion,

(v) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(2), as it read on December 31, 2012, in respect of that period or portion, and

510. Paragraphs 25.1(2)(b) and (c) of the Act are replaced by the following:

(b) three persons appointed from among persons required to contribute to the Royal Canadian Mounted Police Pension Fund who are nominated for appointment by a body that, in the Minister’s opinion, represents such persons;

(c) two persons appointed from among persons required to contribute to the Royal Canadian Mounted Police Pension Fund; and

511. (1) Paragraph 26.1(1)(a) of the Act is replaced by the following:

(a) fixing an annual rate of pay for the purposes of subsection 5(5) or paragraph 10(4)(b) or prescribing the manner of determining the annual rate of pay;

(2) Paragraph 26.1(1)(c.1) of the Act is replaced by the following:

(c.1) prescribing the number of hours per week and the number of days per year for the purposes of subsection 5(6), clauses 6(b)(ii)(F.1), (M) and (N) and paragraph 7(1)(i);

512. Paragraphs 27(1)(d) and (e) of the Act are replaced by the following:

(d) 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), as it read on December 31, 2003, in respect of that period or portion,

(e) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(2), as it read on December 31, 2012, in respect of that period or portion, and

Consequential Amendment to the Special Retirement Arrangements Act

513. Paragraph 11(3)(c) of the Special Retirement Arrangements Act is replaced by the following:

(c) subsection 5(5) of the Royal Canadian Mounted Police Superannuation Act; or

Coming into Force

514. (1) Subject to subsection (2), this Division comes into force or is deemed to have come into force on January 1, 2013.

(2) Subsection 467(4) and section 468 come into force on a day to be fixed by order of the Governor in Council.

Division 24

Canada Revenue Agency Act

515. (1) Paragraph 51(1)(d) of the Canada Revenue Agency Act is replaced by the following:

(d) after consulting with the President of the Treasury Board, determine and regulate the pay to which persons employed by the Agency are entitled for services rendered, the hours of work and leave of those persons and any related matters;

(2) Paragraph 51(1)(h) of the Act is replaced by the following:

(h) after consulting with the President of the Treasury Board, determine and regulate the payments that may be made to Agency employees by way of reimbursement for travel or other expenses and by way of allowances in respect of expenses and conditions arising out of their employment; and

516. Section 58 of the Act is replaced by the following:

58. Before entering into collective bargaining with the bargaining agent for a bargaining unit composed of Agency employees, the Agency must have its negotiating mandate approved by the President of the Treasury Board.