Canadian Forces Superannuation Act

Marginal note:Election

• 42 (1) A person who becomes a contributor under this Act, having been enrolled as an officer of the regular force for a fixed period of service before becoming a contributor, is entitled to count as pensionable service for the purposes of this Act any period of service in the regular force during which the contributor was so enrolled, except any such service described in clause 6(b)(ii)(D), if the contributor elects, within one year of becoming a contributor under this Act, to pay for that service, in which case the amount required by this Act to be paid by the contributor is, subject to subsections (1.1) and (1.2), an amount equal to the greater of

  • (a) six per cent of the pay authorized to be paid to the contributor in respect of that period or any portion of it that was prior to April 1, 1969 plus

    • (i) in the case of a male contributor, six and one-half per cent of the pay authorized to be paid to the contributor in respect of that period or portion after March 31, 1969 but before January 1, 2000, or

    • (ii) notwithstanding section 3, in the case of a female contributor,

      • (A) five per cent of the pay authorized to be paid to the contributor in respect of that period or any portion of it after March 31, 1969 but before February 1, 1976,

      plus

      • (B) six and one-half per cent of the pay authorized to be paid to the contributor in respect of that period or any portion of it after February 1, 1976 but before January 1, 2000,

    minus, in respect of any period of service or portion after 1965 but before January 1, 2000, an amount equal to the amount the contributor would have been required to contribute under the Canada Pension Plan in respect of the salary of the contributor during that period of service if that salary were the total amount of the income of the contributor for that period from pensionable employment as defined in that Act, and

  • (b) the aggregate of

    • (i) any amount withheld under regulations made pursuant to the National Defence Act from his or her pay in respect of that period,

    • (ii) any amount paid to the contributor as a return of contributions under this Act in respect of that period, and

    • (iii) an amount equal to

      • (A) twenty-four twenty-fourths of any gratuity paid to the contributor under the regulations referred to in subparagraph (i) in respect of that period if the contributor becomes a contributor before the end of the month next following the month in which that period of service terminated,

      • (B) twenty-three twenty-fourths of the gratuity if the contributor becomes a contributor in the second month following the month in which that period of service terminated,

      • (C) twenty-two twenty-fourths of the gratuity if the contributor becomes a contributor in the third month following the month in which that period of service terminated,

    and so on, by like progression, until the commencement of the twenty-fifth month following the month in which that period of service terminated,

  together with simple interest at four per cent per annum from the time of the expiry of that period or the time of the payment of that gratuity, whichever is the later, until the time of making the election.

• Marginal note:Exception — election after 2000 but before 2004

  (1.1) A person who becomes a contributor under this Act, having been enrolled as an officer of the regular force for a fixed period of service before so becoming a contributor, is entitled to count as pensionable service for the purposes of this Act any period of service in the regular force during which the contributor was so enrolled, except any such service described in clause 6(b)(ii)(D), if the contributor elects, within one year of becoming a contributor under this Act, to pay for that service, in which case the amount required by this Act to be paid by the contributor is an amount equal to the greater of

  • (a) in respect of a period or portion of a period beginning on January 1, 2000 and ending on December 31, 2003, the aggregate of

    • (i) four per cent of the portion of his or her salary that is less than or equal to the Year’s Maximum Pensionable Earnings, as that term is defined in subsection 15(3), and

    • (ii) seven and one-half percent of the portion of his or her salary that is greater than the Year’s Maximum Pensionable Earnings, and

  • (b) the aggregate of

    • (i) any amount withheld under regulations made pursuant to the National Defence Act from his or her pay in respect of that period,

    • (ii) any amount paid to the contributor as a return of contributions under this Act in respect of that period, and

    • (iii) an amount equal to

      • (A) twenty-four twenty-fourths of any gratuity paid to the contributor under the regulations referred to in subparagraph (i) in respect of that period if the contributor becomes a contributor before the end of the month next following the month in which that period of service terminated,

      • (B) twenty-three twenty-fourths of any such gratuity if the contributor becomes a contributor in the second month following the month in which that period of service terminated, and

      • (C) twenty-two twenty-fourths of such gratuity if the contributor becomes a contributor in the third month following the month in which that period of service terminated,

    and so on, by like progression, until the commencement of the twenty-fifth month following the month in which that period of service terminated,

  together with simple interest at four per cent per annum from the time of the expiry of that period or the time of the payment of that gratuity, whichever is the later, until the time of making the election.

• Marginal note:Exception — election after 2004

  (1.2) A person who becomes a contributor under this Act, having been enrolled as an officer of the regular force for a fixed period of service before so becoming a contributor, is entitled to count as pensionable service for the purposes of this Act any period of service in the regular force during which the contributor was so enrolled, except any such service described in clause 6(b)(ii)(D), if the contributor elects, within one year of becoming a contributor under this Act, to pay for that service, in which case the amount required by this Act to be paid by the contributor is an amount equal to the greater of

  • (a) the product obtained by multiplying his or her salary by the contribution rate determined by the Treasury Board in respect of the relevant portion of the period on the joint recommendation of the President of the Treasury Board and the Minister in respect of a period or portion of a period beginning on January 1, 2004, and

  • (b) the aggregate of

    • (i) any amount withheld under regulations made pursuant to the National Defence Act from his or her pay in respect of that period,

    • (ii) any amount paid to the contributor as a return of contributions under this Act in respect of that period, and

    • (iii) an amount equal to

      • (A) twenty-four twenty-fourths of any gratuity paid to the contributor under the regulations referred to in subparagraph (i) in respect of that period if the contributor becomes a contributor before the end of the month next following the month in which that period of service terminated,

      • (B) twenty-three twenty-fourths of any such gratuity if the contributor becomes a contributor in the second month following the month in which that period of service terminated, and

      • (C) twenty-two twenty-fourths of such gratuity if the contributor becomes a contributor in the third month following the month in which that period of service terminated,

    and so on, by like progression, until the commencement of the twenty-fifth month following the month in which that period of service terminated,

  together with simple interest at four per cent per annum from the time of the expiry of that period or the time of the payment of that gratuity, whichever is the later, until the time of making the election.

• Marginal note:Application of subsection 8(3)

  (2) Subsection 8(3) does not apply in respect of any election made under this section.

• Marginal note:Transfer of amounts withheld

  (3) When a person described in subsection (1), (1.1) or (1.2) becomes a contributor under this Act, any amount withheld as described in paragraph (1)(b) that has not previously been paid to the contributor shall be transferred to the Superannuation Account — and any amount withheld as described in paragraph (1.1)(b) or (1.2)(b) that has not previously been paid to the contributor shall be transferred to the Canadian Forces Pension Fund — and on the transfer of that amount the contributor is deemed to have elected to pay for the period of service in respect of which that amount was withheld and to have paid that amount as or on account of the amount required by this Act to be paid by the contributor for that service.