Government Annuities Act

An Act to authorize the issue of Government annuities for old age Short title This Act may be cited as the Government Annuities Act. Definitions In this Act annuitant means a person in receipt of, or entitled to the receipt of, an annuity; (rentier) annuity means an annuity issued under this Act; (rente) common-law partner, in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year; (conjoint de fait) Minister means the Minister appointed by the Governor in Council to administer this Act; (Ministre) purchaser means any person who has contracted for the purchase of an annuity. (acheteur) Administration Until otherwise determined by the Governor in Council, this Act shall be administered by the Minister of Employment and Social Development. Sale of annuities authorized Her Majesty, represented and acting by the Minister, may, subject to this Act and any order in council made under the authority of this Act, contract with any person for the sale of an immediate or deferred annuity to any person resident or domiciled in Canada, for the life of the annuitant; for a term of years certain, not exceeding twenty years, or for the life of the annuitant, whichever is the shorter; or for a term of years certain, not exceeding twenty years, or for the life of the annuitant, whichever is the longer; of an immediate or deferred annuity to any two persons resident or domiciled in Canada during their joint lives, and with or without continuation to the survivor. Payments by purchaser The purchaser may, by the payment at any time of a sum of not less than ten dollars, or by the payment of a stipulated sum periodically at fixed and definite intervals, to any agent of the Minister appointed under this Act, purchase an annuity under this Act, but the amount payable by way of the annuity so purchased is subject to the terms of section 8. [Repealed, 1980-81-82-83, c. 54, s. 56] Purchase of annuities for corporation members Any society or association of persons, being a body corporate for fraternal, benevolent, religious or other lawful purposes, may contract with Her Majesty, on behalf of such of its members as are domiciled in Canada, for the sale to such members of annuities otherwise purchasable by them as individuals under this Act; and any sums of money necessary to the carrying out of this object may be paid by such society or association directly to the Minister. Purchase of annuities for employees Employers of labour may, pursuant to agreement entered into with their employees in that behalf, such agreement to be of a form approved by the Minister, contract with Her Majesty for the sale to such of their employees as are domiciled in Canada of annuities otherwise purchasable by such employees as individuals under this Act; and any sums of money necessary to the carrying out of this object, whether such sums are derived from the wages of the employees solely, or partly from the wages of the employees and partly from contributions of the employers, or from contributions of the employers solely, may be paid by such employers directly to the Minister; but unless otherwise expressly stipulated, any sums so paid shall be held for the exclusive account of the persons in whose names they were deposited, respectively. Annuity tables All contracts for the purchase of annuities shall be entered into in accordance with the values stated in tables prepared under regulations made pursuant to section 13, and for the time being in use. Limitations as to persons and amount An annuity shall not be granted or issued on the life of any person other than the actual annuitant, nor for an amount less than ten dollars a year; and the total amount payable by way of an annuity or annuities to any annuitant or to joint annuitants shall not exceed twelve hundred dollars a year. Maximum age Any contract providing for an annuity to commence to be payable at any greater age than eighty-five years is, as to purchase price, subject to the same terms as if the age were exactly eighty-five years. Conversion When a person who has purchased an annuity payable to themself applies to have a portion thereof converted into an annuity payable to their spouse or common-law partner, the Minister may make such a conversion, if the application is made within the three months preceding the time when the annuity becomes payable, the annuity so made payable to the spouse or common-law partner does not exceed one-half of the person’s annuity, and the provisions of this Act and any regulations made under this Act are complied with. Refusal for cause The Minister may refuse to contract for an annuity in any case where he is of opinion that there are sufficient grounds for refusing to do so. Rights not transferable Except as otherwise provided in this Act, no property, right, title, benefit or interest in, under, or arising out of a contract for an annuity is transferable, either at law or in equity. Trusts not recognized The Minister shall not receive nor be affected by notice, however given, of any trust affecting an annuity or affecting moneys paid or payable in respect of an annuity. Interest not attachable An annuity and all moneys paid or payable and all rights under an annuity contract are exempt from the operation of any law relating to bankruptcy or insolvency, and shall not be seized nor levied upon by or under the process of any court. Rights of creditors saved If the application for annuity contract is made and the consideration therefor is paid with intent to delay, hinder or defraud creditors, the creditors are, upon establishing such intent before a court of competent jurisdiction, entitled to receive, and the Minister is hereby authorized to pay to them or to any person authorized by the court to receive it on their behalf, any sum paid in by the purchaser, with interest thereon at the rate of three per cent per annum compounded yearly, or so much thereof as is certified by the court to be required to satisfy the claims of such creditors, and costs; and thereupon the annuity contract shall be cancelled, or the annuity to become payable thereunder shall be proportionately reduced, according as the whole or a part only of the sum payable as aforesaid is so paid by the Minister; or, if an annuity is then payable under the contract, such payment may be made out of and up to an amount equal to the present value of the annuity so payable, and the contract shall thereupon be cancelled, or the annuity payable thereunder proportionately reduced, according as the whole or a part only of such present value is so paid. Limitation of action No action shall be brought for the cancellation of an annuity granted under this Act after the lapse of two years from the time at which the payment complained of has been made. Death of annuitant before annuity payable When the annuitant or last survivor of joint annuitants dies before the annuity becomes payable, and any moneys have been paid or deposited as consideration for the annuity, such moneys shall be repaid to the purchaser or to his legal representatives, with interest thereon at the rate of four per cent per annum, compounded yearly; but if there is an express agreement between the Minister and the purchaser as to dealing with such moneys, then they shall be paid as provided in such agreement. When term unexpired When, under the annuity contract, the annuity is payable for a term of years certain or for the life of the annuitant, whichever period is the longer, and the annuitant dies before the expiration of that term of years certain, the annuity shall, during the unexpired portion of that term, be paid to the purchaser or to his legal representatives; but if there is an express agreement to the contrary between the Minister and the purchaser, the annuity shall be paid as provided in such agreement. Regulations The Governor in Council may make regulations not inconsistent with this Act in respect of the rate of interest to be allowed in the computation of values in the tables hereinafter referred to, and the rate of interest to be employed in valuing the annuities as provided for in subsection 15(2); the preparation and use of tables for determining the value of annuities; and the revocation of all or any such tables and the preparation and use of other tables; the mode of making, and the forms of, contracts for annuities, including all requirements as to applications therefor; the selection of agents of the Minister to assist in executing the provisions of this Act, and the remuneration, if any, to such agents therefor; the modes of proving the age and identity and the existence or death of persons; the modes of paying sums of moneys payable under this Act; dealing with an application of unclaimed annuities; and the doing of anything incidental to the foregoing matters, or necessary for the effectual execution and working of this Act and the attainment of the intention and objects thereof. C.R.F. The moneys received under this Act form part of the Consolidated Revenue Fund; and the moneys payable under this Act shall be paid out of the Consolidated Revenue Fund. Accounts to be kept An account shall be kept, to be called the Government Annuities Account, of all moneys received and paid out under this Act, and of the assets and liabilities appertaining to the grant of annuities under this Act; and among the liabilities included in the said account at the end of each fiscal year shall appear the present value of the prospective annuities contracted for up to the end of such fiscal year. Calculation of present value of annuities The present value referred to in subsection (1) shall, as to interest, be calculated upon such rate as is fixed be the Governor in Council, and, as to mortality, upon such rates as are used in preparing the tables approved of by the Governor in Council and for the time being in use, as provided for in paragraph 13(b). [Repealed, 1974-75-76, c. 83, s. 18]