Money Purchase Accounts Plan Regulation

Money Purchase Accounts Plan Regulation, M.R. 142/98 The Civil Service Superannuation Act , C.C.S.M. c. C120 Regulation 142/98 Registered August 14, 1998 bilingual version (HTML) Definitions 1 In this regulation, "Act" means The Civil Service Superannuation Act ; (« Loi ») "annuity commencement date" means the last day of any month subsequent to age 55; (« date du début du service de la rente ») "board" means The Civil Service Superannuation Board; (« Régie ») "effective date" means January 2, 1985; (« date d'entrée en vigueur ») "employer" means the Government of Manitoba or any agency thereof, or any other employer or person designated by the Lieutenant Governor in Council under subsection 6(3) of the Act whose employees are deemed to be in the civil service for all purposes of the Act; (« employeur ») "entry date" means the effective date and the last day of any calendar month thereafter; (« date d'adhésion ») "fund" means The Civil Service Superannuation Fund; (« Caisse ») "money purchase account" means an account established for a participant in accordance with section 64 of the Act; (« compte du Régime à cotisation déterminée ») "participant" means an employee as defined under subsection 2(1) of the Act, recipients of superannuation allowances, annuities or pensions payable under the Act or persons on whose behalf the board is required or requested to transfer monies to a money purchase account; (« participant ») "plan" means collectively the money purchase accounts established for participants who transfer monies to the account pursuant to section 64 of the Act and this regulation; (« Régime ») "plan year" means the period commencing on January 1 and ending on December 31; (« année contractuelle ») "totally and permanently disabled" means a disability that is so severe that the employee is incapable of pursuing any substantially gainful occupation, and prolonged in that the disability is likely to be long and of indefinite duration or likely to result in death. (« invalidité totale et permanente ») M.R. 87/2002 Eligibility 2(1) Any person may become a participant when that person becomes eligible. 2(2) A person becomes eligible (a) on termination of employment and continues to be eligible for the following 12 months; (b) on becoming an employee if the person agrees to transfer amounts from the pension plan of the person's prior employer by delivering the application form to the board within 12 months of becoming an employee or prior to December 31, 1985 if the person is an employee on January 2, 1985; (c) on divorce or on termination of a common-law relationship as recognized under the Act where the participant is the employee or the former spouse or common-law partner of the employee; or (d) on death where the participant is the employee or is the former spouse or common-law partner or a dependent child of an employee. M.R. 87/2002 2(3) A person who is eligible may become a participant by completing the application form as prescribed by the board and shall provide such other information as the board deems necessary or desirable and shall agree to transfer to the plan an amount from either (a) the fund; or (b) the pension plan or scheme of that person's prior employer. Commencement of annuity 3(1) Every participant may apply in writing within three months of the participant's expected annuity commencement date on or after age 55, to have that person's annuity commence on the first day of the month coincident with or following the date of application. 3(2) The annuity shall commence not later than the last day of the year during which the participant attains the age of 69 years or such other time as is acceptable under the Income Tax Act (Canada) and its regulations. 3(3) The annuity shall not commence while the participant is an employee under the Act. 3(4) The annuity may commence prior to age 55 if the participant is totally and permanently disabled. 3(5) The annuity must be paid during the participant's lifetime. 3(6) The participant may choose any option that is available under the Act if under all circumstances the amount paid is at least equal to the accumulated value of the money purchase account as at the date that the annuity commences. 3(7) The annuity rate formula used to determine the annuity shall be calculated in accordance with assumptions provided by the actuary from time to time and shall vary with changes in interest rates. 3(8) The accumulated value of the participant's account used to provide the annuity shall be calculated on the last day of the month prior to the month in which annuity payment commences to an annuity reserve which shall be part of the reserve for present and future benefits of the fund. Death of participant 4(1) If a participant dies prior to applying for an annuity, there will be payable to the participant's spouse or common-law partner, or if none, to the participant's estate, an amount equal to the accumulated value of the participant's account. M.R. 87/2002 4(2) The beneficiary who is the participant's spouse or common-law partner may elect to have the death benefits payable in the form of an immediate life annuity or a deferred life annuity commencing not later than the last day of the year during which the spouse or common-law partner attains the age of 69 years or such other time as is acceptable under the Income Tax Act (Canada) and its regulations. M.R. 87/2002 4(3) In the event of the death of a participant after the annuity commences, any annuity payments due thereafter will be made to the participant's beneficiary, and, if there is no beneficiary, the commuted value of the remaining annuity payments due will be paid to the participant's estate in a lump sum. Termination of employment 5 On termination of employment (a) a participant may transfer an account belonging to the participant to a new employer's pension plan or to a locked-in Retirement Account or Registered Pension or similar pension vehicle; (b) the participant shall have one year from the date of ceasing to be an employee to transfer the account by delivering the transfer form to the board within one year of ceasing to be an employee; (c) the amounts that are locked-in shall be transferred only if the financial institution to which the monies are being transferred agrees to lock-in these amounts; (d) the participant may continue as a participant. Payment of lump sum 6 If the accumulated value of the participant's account will not provide an annuity of $25 per month or such greater amount as may be applicable under The Pension Benefits Act , the accumulated value shall be paid in a lump sum. Administration 7(1) The board shall furnish a written explanation to each participant of the plan and the terms and condition of the plan and amendments thereto applicable to the participant, together with an explanation of the rights and duties of each participant with reference to the benefits available under the terms of the plan and any other information prescribed under The Pension Benefits Act and regulations under that Act. 7(2) The participant shall provide proof consistent with the requirements of the Act prior to any benefit being paid under this plan. 7(3) The board shall be remunerated for its expenses in administering this plan on the basis of: (a) ¼ of 1 percent per annum of the market value of the assets of the plan; and (b) actual hours spent by the board's employees at the hourly rate for each employee plus 25% for overhead in administering the plan. 7(4) The board shall distinguish between those accounts where the amounts are locked-in and those accounts where the amounts are not locked-in as permitted by The Pension Benefits Act . 7(5) Units shall be purchased for or redeemed from a participant's money purchase account on the last business day of the month on receipt of the necessary documentation and monies where applicable. Calculation of accumulated value 8(1) Accumulated value of a money purchase account means the value determined by multiplying the number of units in the account by the current unit price. 8(2) The account shall be unitized and unit values shall be determined as follows: (a) the initial unit value shall be $10.00 and the initial transfer shall take place at unit value of $10.00; (b) on the last business day of each month, the market value of each asset shall be determined in accordance with the procedures approved by the investment committee of the board; (c) the market value of total assets plus accrued income less expenses shall be divided by the number of units outstanding at the end of the previous month to determine the unit value. Repeal 9 Manitoba Regulation 77/85 is repealed.