Acts and Regulations

91-195 - General

Section 25.5
Disposition versions

Full text
Pension plan provisions on recommencement of employment
25.5(1)The following are prescribed provisions for the purposes of subsection 39(4) of the Act:
(a) payment of the pension to the former member shall continue and the former member shall not be eligible to become a member;
(b) payment of the pension to the former member shall be suspended and the former member shall become a member of the pension plan no later than the date on which payment of the pension is suspended; and
(c) the former member may choose
(i) to continue receiving payment of his or her pension and the former member shall not be eligible to become a member, or
(ii) to have payment of his or her pension suspended and the former member shall become a member of the pension plan no later than the date on which payment of the pension is suspended.
25.5(2)If a pension plan does not include one of the prescribed provisions in subsection (1), the pension plan shall be deemed to include paragraph (1)(a).
25.5(3)A pension plan shall be deemed to include paragraph (1)(c) in relation to an employee if
(a) the pension plan is amended to adopt paragraph (1)(a) or (b) after the employee recommences work or service in employment covered by the plan, or
(b) the pension plan includes paragraph (1)(b) and the employee was not advised of this verbally and in writing before recommencing work or service in employment covered by the plan.
25.5(4)A pension plan may adopt more than one of the provisions referred to in subsection (1), and the provisions shall be applicable in different circumstances set out in the pension plan.
25.5(5)If a pension plan provides for the suspension of the payment of a pension, the pension payable when a member recommences receipt of his or her pension shall not be less than the sum of the pension payable with respect to the member’s recommenced employment and
(a) if the initial pension began to be paid before the member’s retirement date, the pension that would have been payable had the pension begun to be paid on or after the member’s retirement date, reduced in accordance with the terms of the pension plan when the initial pension began to be paid, or
(b) if the initial pension began to be paid on or after the member’s retirement date, the pension that was payable when the pension began to be paid.
25.5(6)The calculation of a reduction under paragraph (5)(a) shall be based upon an assumed age calculated according to the following formula:
a = b – (c – d)
where
a = assumed age for calculation;
b = age at date of subsequent pension commencement;
c = age at date of pension suspension; and
d = age at date of initial pension commencement.
25.5(7)If a member dies while payment of the member’s pension is suspended, the commuted value of any death benefit shall not be less than the greater of
(a) the commuted value of the death benefit that would have been payable had the member not recommenced work or service, and
(b) the commuted value of the death benefit that is payable based upon the accrued pension calculated in accordance with the pension plan and this section.
2003-87
Pension plan provisions on recommencement of employment
25.5(1)The following are prescribed provisions for the purposes of subsection 39(4) of the Act:
(a) payment of the pension to the former member shall continue and the former member shall not be eligible to become a member;
(b) payment of the pension to the former member shall be suspended and the former member shall become a member of the pension plan no later than the date on which payment of the pension is suspended; and
(c) the former member may choose
(i) to continue receiving payment of his or her pension and the former member shall not be eligible to become a member, or
(ii) to have payment of his or her pension suspended and the former member shall become a member of the pension plan no later than the date on which payment of the pension is suspended.
25.5(2)If a pension plan does not include one of the prescribed provisions in subsection (1), the pension plan shall be deemed to include paragraph (1)(a).
25.5(3)A pension plan shall be deemed to include paragraph (1)(c) in relation to an employee if
(a) the pension plan is amended to adopt paragraph (1)(a) or (b) after the employee recommences work or service in employment covered by the plan, or
(b) the pension plan includes paragraph (1)(b) and the employee was not advised of this verbally and in writing before recommencing work or service in employment covered by the plan.
25.5(4)A pension plan may adopt more than one of the provisions referred to in subsection (1), and the provisions shall be applicable in different circumstances set out in the pension plan.
25.5(5)If a pension plan provides for the suspension of the payment of a pension, the pension payable when a member recommences receipt of his or her pension shall not be less than the sum of the pension payable with respect to the member’s recommenced employment and
(a) if the initial pension began to be paid before the member’s retirement date, the pension that would have been payable had the pension begun to be paid on or after the member’s retirement date, reduced in accordance with the terms of the pension plan when the initial pension began to be paid, or
(b) if the initial pension began to be paid on or after the member’s retirement date, the pension that was payable when the pension began to be paid.
25.5(6)The calculation of a reduction under paragraph (5)(a) shall be based upon an assumed age calculated according to the following formula:
a = b – (c – d)
where
a = assumed age for calculation;
b = age at date of subsequent pension commencement;
c = age at date of pension suspension; and
d = age at date of initial pension commencement.
25.5(7)If a member dies while payment of the member’s pension is suspended, the commuted value of any death benefit shall not be less than the greater of
(a) the commuted value of the death benefit that would have been payable had the member not recommenced work or service, and
(b) the commuted value of the death benefit that is payable based upon the accrued pension calculated in accordance with the pension plan and this section.
2003-87