Provision respecting five or more years of pensionable service
10.4(1)Notwithstanding paragraph 10(1)(c), a contributor who has to his or her credit five or more years of pensionable service and who, not having reached the age of sixty years, ceases to be employed in the Public Service for any reason other than death is entitled to
(a)
a return of contributions with interest, or
(b)
in the case of a contributor fifty-five or more years of age, an annual allowance payable immediately, which allowance is to be the actuarial equivalent of the immediate pension that would have been payable had the contributor been entitled to the immediate pension calculated in accordance with subsection 7(3) when the contributor actually ceased to be employed,
at the contributor’s option, except that if the contributor fails to advise the Minister of the option within one year of ceasing to be employed, the contributor is deemed to have chosen a return of contributions with interest.
10.4(2)An annual allowance under paragraph (1)(b) is subject to paragraph 8503(3)(c) of the
Income Tax Regulations under the
Income Tax Act (Canada).
1991, c.45, s.6; 2008, c.16, s.7