Vol. 134, No. 33 — August 12, 2000

Canada Post Corporation Withdrawal Regulations

Statutory Authority

Public Service Superannuation Act and Financial Administration Act

Sponsoring Agency

Treasury Board Secretariat

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Public Service Pension Investment Board Act, S.C., 1999, c. 34, included amendments to the Public Service Superannuation Act (PSSA), removing the Canada Post Corporation (the Corporation) from the provisions of the PSSA effective October 1, 2000. The Corporation is required by that date to set up a pension plan for its employees to which the actuarial value of the PSSA benefit accrued by all active Canada Post Corporation employees would be transferred to the new plan in accordance with the Regulations made pursuant to paragraph 42.1(1)(v.7).

The Regulations hereunder set out the specific terms and conditions for the transfer of the past service liability to the new Canada Post Corporation Pension Plan.

Alternatives

The provisions of the pension arrangements for persons covered by the Public Service Superannuation Act have been specified in statute or regulations. Without a change in the enabling legislation, there is no alternative to the regulatory route.

Benefits and Costs

The application of these Regulations is limited to the method of determining the amount that must be transferred to the new Canada Post Corporation Pension Plan over a period of two years beginning on October 1, 2000. It has no direct impact on other parties, including plan members.

Consultation

During the development of these Regulations, there has been consultation with Canada Post Corporation and its consultants, the Office of the Superintendent of Financial Institutions, the Department of Public Works and Government Services and the Department of Finance.

Compliance and Enforcement

Compliance should not be an issue, because of the work being done prior to the effective date of the Regulations to ensure the integrity of the data being used to determine the amount to be transferred to the Corporation.

Contact

Linda Hansen, Pension Policy and Communications, Pensions Division, Treasury Board Secretariat, Ottawa, Ontario K1A 0R5, (613) 952-3122.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Treasury Board, pursuant to paragraph 42.1(1)(v.7)(see footnote a) and subsection 46.3(6)(see footnote b) of the Public Service Superannuation Act and paragraph 7(2)(a) of the Financial Administration Act proposes to make the annexed Regulations Governing the Canada Post Corporation Withdrawal.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Phil Charko, Assistant Secretary, Pensions Division, Treasury Board Secretariat, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0R5.

LUCIENNE ROBILLARD
President of the Treasury Board

CANADA POST CORPORATION WITHDRAWAL REGULATIONS

INTERPRETATION

1. 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)

APPLICATION

2. 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

(a) are employed by the Corporation and are contributors on September 30, 2000, and

(b) remain employed by the Corporation for at least one day following September 30, 2000.

VALUATION

3. (1) 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.

(2) The actuarial assumptions contained in the Actuarial Report referred to in subsection (1) are varied as follows:

(a) 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;

(b) the rate of interest for the period after September 30, 2015 is 6.5% per annum;

(c) 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;

(d) retirement rates are the rates set out in Schedule 1;

(e) rates of termination are the rates set out in Schedule 2; and

(f) transfer values on termination of employment are to be calculated using the interest rates specified in paragraphs (a) and (b).

(3) 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.

(4) 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.

(5) For the purposes of subsection (3), the present value is calculated using an interest rate of 6.9% per annum.

TRANSFER OF FUNDS

4. (1) 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.

(2) 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.

5. 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

(a) 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

(b) 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.

COMING INTO FORCE

6. These Regulations come into force on the day on which they are registered.

SCHEDULE 1
(Paragraph 3(2)(d))

RETIREMENT RATES
(Age Last Basis)

Male	Completed Years of Service
Age	1 to 3	4 to 23	24 to 28	29	30 to 33	34	35+
49	0.04	0.02	0.03	0.06	0.08	0.14	0.12
50	0.04	0.02	0.03	0.05	0.08	0.16	0.12
51	0.04	0.02	0.05	0.07	0.10	0.16	0.16
52	0.04	0.02	0.06	0.08	0.17	0.21	0.20
53	0.04	0.02	0.07	0.09	0.14	0.22	0.25
54	0.04	0.07	0.12	0.29	0.46	0.71	0.67
55	0.04	0.05	0.08	0.28	0.35	0.61	0.55
56	0.04	0.05	0.09	0.30	0.36	0.59	0.44
57	0.04	0.07	0.12	0.31	0.29	0.56	0.46
58	0.04	0.08	0.13	0.30	0.29	0.54	0.52
59	0.04	0.23	0.51	0.51	0.51	0.62	0.56
60	0.04	0.20	0.37	0.40	0.48	0.56	0.48
61	0.04	0.18	0.30	0.35	0.40	0.57	0.44
62	0.04	0.20	0.31	0.39	0.42	0.57	0.42
63	0.04	0.22	0.31	0.43	0.42	0.68	0.54
64	0.04	0.67	0.70	0.73	0.72	0.79	0.64
65	0.04	0.42	0.52	0.57	0.61	0.74	0.54
66	0.04	0.39	0.50	0.57	0.57	0.74	0.54
67	0.04	0.39	0.45	0.57	0.57	0.74	0.54
68	0.04	0.40	0.45	0.57	0.57	0.74	0.54
69	1.00	0.45	0.45	0.57	0.57	0.74	0.54
70	1.00	1.00	1.00	1.00	1.00	1.00	1.00

 

Female	Completed Years of Service
Age	1 to 3	4 to 23	24 to 28	29	30 to 33	34	35+
49	0.05	0.03	0.04	0.06	0.10	0.15	0.12
50	0.05	0.02	0.04	0.08	0.08	0.16	0.13
51	0.05	0.03	0.04	0.08	0.09	0.17	0.14
52	0.05	0.03	0.05	0.08	0.09	0.17	0.14
53	0.05	0.03	0.05	0.10	0.10	0.21	0.17
54	0.05	0.04	0.08	0.14	0.14	0.27	0.19
55	0.05	0.05	0.10	0.12	0.12	0.23	0.18
56	0.05	0.06	0.09	0.12	0.12	0.23	0.18
57	0.05	0.06	0.11	0.12	0.12	0.23	0.18
58	0.05	0.07	0.10	0.14	0.13	0.23	0.16
59	0.05	0.14	0.26	0.35	0.32	0.62	0.42
60	0.05	0.12	0.25	0.32	0.32	0.56	0.32
61	0.05	0.13	0.25	0.32	0.31	0.56	0.34
62	0.05	0.14	0.27	0.32	0.32	0.56	0.31
63	0.05	0.15	0.27	0.32	0.30	0.56	0.34
64	0.05	0.51	0.56	0.56	0.52	0.68	0.49
65	0.05	0.30	0.44	0.46	0.46	0.58	0.46
66	0.05	0.27	0.34	0.34	0.38	0.58	0.39
67	0.05	0.26	0.34	0.34	0.38	0.58	0.39
68	0.05	0.27	0.34	0.34	0.38	0.58	0.39
69	1.00	0.29	0.34	0.34	0.38	0.58	0.39
70	1.00	1.00	1.00	1.00	1.00	1.00	1.00

SCHEDULE 2
(Paragraph 3(2)(e))

RATES OF TERMINATION (FOR REASONS OTHER THAN DISABILITY AND DEATH) PRIOR TO AGE 50 WITH RIGHT TO A PENSION

Completed years of service	Male	Female
1	0.043	0.052
2	0.037	0.046
3	0.031	0.040
4	0.026	0.035
5	0.024	0.031
6	0.021	0.029
7	0.020	0.028
8	0.019	0.026
9	0.018	0.026
10	0.018	0.025
11	0.017	0.024
12	0.016	0.021
13	0.014	0.019
14	0.012	0.017
15	0.010	0.015
16	0.008	0.013
17	0.008	0.012
18	0.008	0.011
19	0.007	0.010
20	0.006	0.009
21	0.005	0.009
22 +	0.005	0.009

RATES OF TERMINATION WITHOUT RIGHT TO A PENSION

Completed years of service	Male	Female
0	0.049	0.058

[33-1-o]

Footnote a

S.C. 1999, c. 34, s. 92(6)

Footnote b

S.C. 1999, c. 34, s. 97

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