ARCHIVED SAM - Special Bulletin 2009-003
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July 3, 2009
SUBJECT: Information regarding the Canadian Forces members and the Public Service Superannuation Act (PSSA)
1.1. The purpose of this bulletin is to advise compensation advisors that members of the Public Service pension plan can contribute to both the Public Service Pension Fund (PSPF) and the Canadian Force Pension Funds simultaneously, regardless of whether they are contributing under Part I.1 or under Part I of the Canadian Forces Superannuation Act (CFSA).
2.1. Effective March 1, 2007, amendments to the CFSA and its supporting regulations came into force which introduced new pension plan arrangements for members of the Reserve Force.
This new Reserve Force pension plan (RFPP), established under Part I.1 of the CFSA, has been created to cover the majority of reserve Force members. It should be noted that according to the amendments, any reservist, who has been employed and has served in the Reserve Force on a full-time basis for 55 months in a 60-month period, will automatically become a contributor under the provisions of Part I of the CFSA, the part that pertains to the regular Force members.
3.1. Eligibility to contribute to the plan under the PSSA
There are no provisions in the PSSA which would prevent a Reserve Force member from simultaneously contributing to the PSSA and to Part I.1 of the CFSA, that is to the RFPP, or to Part I of the CFSA, the pension plan for Regular Force members and long-term members of the Reserve Force.
However, rule 2 of the Superannuation Administration Manual (SAM) under section 2-4-8 continues to be in effect, i.e. persons employed in the Public Service while on retiring or terminal leave from the Canadian Forces or Royal Canadian Mounted Police are excluded from contributing to the PSPF until they cease contributing to other superannuation accounts.
3.2. Counting reserve service under the PSSA
As of February 16, 2009, the Public Service Pension Centre (PSPC) is responsible for all service buyback activities, including providing advice to employees on the buyback or surrender of CFSA service.
Compensation advisors should direct plan members to the PSPC to obtain more information about service buyback, including CFSA related inquiries.
3.3. Impact on 35-year pensionable service limit
The PSSA does not recognize pensionable service accrued under Part I.1 of the CFSA, therefore, it does not count for the 35-year pensionable limit allowable under the three federal pension plans (imposed under the PSSA, CFSA and the Royal Canadian Mounted Police Superannuation Act [RCMPSA]). However, service accrued under Part I of the CFSA is subject to the 35-year limit and any service from Part I.1 of the CFSA that is transferred to Part I of the CFSA will be included in the 35-year limit.
4.1. Compensation advisors are to advise employees they may contribute to both the PSSA and to Part I.1 of the CFSA, that is the RFPP, or to Part I of the CFSA, the pension plan for Regular Force members and long-term members of the Reserve Force.
Reminder: As soon as compensation advisors are aware that a plan member is or was serving in the Canadian Forces, they should ensure the Canadian Forces service is reported to the PSPC. Reporting this information, which also applies to service under the RCMPSA, will help to ensure that the member does not exceed the 35-year pensionable service limit.
5.1. The SAM will be updated to incorporate the relevant information contained in this bulletin.
6.1. Any request for information regarding the content of this bulletin should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
Accounting, Banking and Compensation
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