ARCHIVED CD 2003-014
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September 26, 2003
SUBJECT: Canada Savings Bonds Deductions for Retiring Employees
1.1 The purpose of this directive is to inform compensation advisors of a change to the Canada Savings Bonds (CSB) Payroll Savings program that will affect retiring employees.
1.2 In this text, use of the masculine is generic and applies to both men and women.
1.3 A notice of information to employees concerning the above subject has been included with this Compensation Directive.
2.1 In August of previous years, as part of its Payroll Savings Program Campaign, the Bank of Canada would distribute an information notice to pensioners under the Public Service Superannuation Act (PSSA), the Canadian Forces Superannuation Act (CFSA), the Royal Canadian Mounted Police Superannuation Act (RCMPSA) and the Members of Parliament Retiring Allowance Act (MPRAA). This information notice provided pensioners with a toll free number they could call to receive a CSB payroll savings application form following which pensioners could complete the application form and mail it to their pension office to have a CSB deduction started from their pension.
Starting with this year's campaign, the Bank of Canada will be changing how it promotes Canada Savings Bonds to pensioners. The Bank of Canada will no longer send an information notice or provide CSB payroll savings application forms to pensioners. The pension offices will also not be providing application forms.
3.1 Members of Parliament as well as Public Servants including Canadian Forces and Royal Canadian Mounted Police employees who are not already participating in the CSB payroll savings program when they retire will not be able to apply for and start a CSB deduction from their pension.
3.2 If an employee or Member of Parliament wishes to participate in the CSB payroll savings program after retirement, he must ensure that he has a CSB deduction being taken from his pay prior to retiring. This can only be done during a CSB campaign period (October 1 to October 31) preceding his retirement.
It should be noted that federal judges do not have the option of deducting CSBs from their pension, even if they have had a CSB deduction taken from their pay.
4.1 Retiring Public Service Employees and Retiring Members of Parliament
4.1.1 Employees and Members of Parliament retiring under the PSSA or the MPRAA who wish to have their CSB deduction taken from their pension should complete line 5 of form PWGSC-TPSGC 1422, Deductions from Annuity or Annual Allowance, during the exit process. The employee must specify the amount of the monthly deduction.
4.2. Retiring Canadian Forces Employees
4.2.1 Employees retiring under the CFSA who wish to have their CSB deduction taken from their pension may send a request in writing to their pension advisor during the exit process. The employee's written request must specify the amount of the monthly deduction.
4.3. Retiring Royal Canadian Mounted Police Employees
4.3.1 Employees retiring under the RCMPSA who wish to have their CSB deduction taken from their pension must complete the Royal Canadian Mounted Police (RCMP)/ Gendarmerie royale du Canada (GRC)1733 Discharge Request form during the exit process and specify the amount of the monthly deduction.
4.4. Deduction Amounts
4.4.1 When completing the application form to take the deductions from the pension for employees who are paid on a bi-weekly basis, care must be taken to ensure that the total monthly deduction amount does not exceed the amount equal to the annualized contract.
4.5. Changes in Deduction
4.5.1 Retiring employees are to be advised that as pensioners, they may only request an increase in their CSB deduction amount during the yearly campaign period (October 1 to October 31). The request must be in writing and must be received by the pension office before the end of the campaign period. Retired employees may request a decrease in their CSB deduction amount at any time during the year, by writing to their pension office.
4.6. Deduction Cancellations
4.6.1 Retiring Employees are also to be advised that once they become pensioners, if they wish to cancel their existing deduction, they should submit a request in writing to their pension office. The pension office will then take the necessary action to cancel the deduction.
4.6.2 Cancelling the deduction does not cancel the pensioner's CSB plan(s). The plan(s) will remain in effect and continue to earn interest until the pensioner redeems the money.
4.6.3 Once the pensioner fully redeems his plan(s), he will not be able to start a new CSB deduction.
4.7. Pension Office Addresses
4.7.1. For pensions issued under CFSA and MPRAA:
Public Works and Government Services Canada
Specialized Services Division
1451 Coldrey Avenue
Ottawa, ON K1A 0S5
4.7.2. For pensions issued under PSSA:
Public Works and Government Services Canada
P.O. Box 5010
Shediac, NB E4P 9B4
4.7.3. For pensions issued under RCMPSA:
RCMP Benefits Administration Centre,
c/o Morneau Sobeco
1060 University Street, 9th Floor,
Montreal, Québec H3B 4V3
5.1 Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
Accounting, Banking and Compensation
Reference: CJA 1065-2-1
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