These regulations set how certain Canada Post-related pension benefits are valued and paid, including interest rates, timing, and who the rules apply to.
Canada Post Corporation Withdrawal Regulations The Treasury Board, on the recommendation of the President of the Treasury Board, pursuant to paragraph 42.1(1)(v.7)a and subsection 46.3(6)b of the Public Service Superannuation Act and paragraph 7(2)(a) of the Financial Administration Act, hereby makes the annexed Canada Post Corporation Withdrawal Regulations. S.C. 1999, c. 34, s. 92(6) S.C. 1999, c. 34, s. 97 The definitions in this section apply in these Regulations. Act means the Public Service Superannuation Act. (Loi) Canada Post Pension Plan means the pension plan established by the Corporation under paragraph 46.3(1)(a) of the Act. (régime de retraite de la Société canadienne des postes) pensionable service means pensionable service within the meaning of the Act. (service ouvrant droit à pension) These Regulations apply in respect of the pensionable service of persons who, by virtue of the coming into force of section 227 of the Public Sector Pension Investment Board Act cease to be employed in the Public Service for the purposes of the Act on October 1, 2000 and are employed by the Corporation and are contributors on September 30, 2000, and remain employed by the Corporation for at least one day following September 30, 2000. Subject to subsections (2) and (3), the actuarial present value of the benefits accrued in respect of the pensionable service to the credit of the persons referred to in section 2 is calculated as of September 30, 2000 using the actuarial methods and assumptions contained in the Actuarial Report as at March 31, 1996, on the Pension Plan for the Public Service of Canada, tabled in Parliament on March 18, 1998 by the Minister. The actuarial assumptions contained in the Actuarial Report referred to in subsection (1) are varied as follows: the rate of interest for the period beginning on October 1, 2000 and ending on September 30, 2015 is 3.9% per annum plus the rates of increase in the consumer price index for that period as set out in the Actuarial Report; the rate of interest for the period after September 30, 2015 is 6.5% per annum; the rate of increase in salaries and the yearly maximum pensionable earnings is 3.9% per annum for the period beginning on October 1, 2000 and ending on September 30, 2001 and 4% per annum after that; retirement rates are the rates set out in Schedule 1; rates of termination are the rates set out in Schedule 2; and transfer values on termination of employment are to be calculated using the interest rates specified in paragraphs (a) and (b). The amount calculated in accordance with subsection (1) shall be net of the present value of any instalment payments in respect of pensionable service where such payments would have been due and payable into the Superannuation Account or the Public Service Pension Fund after September 30, 2000 by persons referred to in section 2 had those persons remained in the Public Service for the purposes of the Act. For the purposes of subsection (3), any instalment payment that is attributable to a period of leave of absence without pay is calculated as if it were due and payable on October 1, 2000. For the purposes of subsection (3), the present value is calculated using an interest rate of 6.9% per annum. The amount calculated in accordance with section 3, together with interest calculated in accordance with subsection (2), shall be paid by the Minister over a period not exceeding two years from October 1, 2000. Interest on each payment made by the Minister shall be calculated at the rate of 7.25% per annum from October 1, 2000 to the end of the day preceding each payment. The amount calculated in accordance with section 3, together with interest calculated in accordance with subsection 4(2), shall be paid to the Canada Post Pension Plan out of the Superannuation Account to the extent to which the amount has been calculated in respect of pensionable service to the credit of persons referred to in section 2 prior to April 1, 2000; and out of the Public Service Pension Fund to the extent to which the amount has been calculated in respect of pensionable service credited to those persons after March 31, 2000. These Regulations come into force on the day on which they are registered.