Acts and Regulations

P-5.1 - Pension Benefits Act

Section 55
Disposition versions

Full text
Percentage of pension benefit offset by employee
55(1)If a member of a pension plan has become entitled to the immediate payment of a contributory pension benefit or has become entitled to a deferred pension in respect of a contributory pension benefit, the member’s accumulated contributions with interest are to be applied to offset not more than the percentage of the commuted value of the pension benefit fixed by the plan.
55(1.1)For the purposes of subsection (1), a pension plan may fix a different percentage of the commuted value of a contributory pension benefit that a member’s contributions with interest are to offset for the portion of the pension benefit that is attributable, in accordance with the benefit formula of the pension plan, to a purchase of past service made after the commencement of this subsection.
55(2)Upon termination of employment or wind-up of a pension plan, a member of a plan is entitled to a refund of the amount, if any, equal to the aggregate of the contributions made by the member with interest less the amount required to offset the percentage of the commuted value of the pension benefit referred to in subsection (1), and that amount, at the option of the member, shall be dealt with in one or more of the following ways:
(a) returned to the member;
(b) transferred to a registered retirement savings plan as defined in the Income Tax Act (Canada) if
(i) the transfer is permitted under that Act or its regulations, and
(ii) the registered retirement savings plan is not a retirement savings arrangement prescribed for the purposes of subparagraph 36(1)(a)(ii); or
(c) transferred to a registered retirement income fund as defined in the Income Tax Act (Canada) if
(i) the transfer is permitted under that Act or its regulations, and
(ii) the registered retirement income fund is not a retirement savings arrangement prescribed for the purposes of subparagraph 36(1)(a)(ii).
55(2.1)Notwithstanding subsection (2), an optional ancillary contribution shall not be refunded if
(a) its refund is prohibited by the Income Tax Act (Canada), or
(b) its refund would result in the revocation of the pension plan’s registration under subsection 147.1(13) of the Income Tax Act (Canada).
55(3)If a pension plan does not fix the percentage of the commuted value of a contributory pension benefit that a member’s contributions with interest are to offset, the plan shall be deemed to have fixed the percentage at fifty per cent.
55(4)Subsections (1) and (3) do not apply in respect of defined contribution benefits or benefits arising from additional voluntary contributions or optional ancillary contributions.
55(5)Subsections (1) and (3) apply to pension benefits provided in respect of employment after the commencement of this section and to pension benefits resulting from an amendment to the pension plan made after the commencement of this section whether or not the amendment applies in respect of employment before the commencement of this section.
2002, c.12, s.25
Percentage of pension benefit offset by employee
55(1)If a member of a pension plan has become entitled to the immediate payment of a contributory pension benefit or has become entitled to a deferred pension in respect of a contributory pension benefit, the member’s accumulated contributions with interest are to be applied to offset not more than the percentage of the commuted value of the pension benefit fixed by the plan.
55(1.1)For the purposes of subsection (1), a pension plan may fix a different percentage of the commuted value of a contributory pension benefit that a member’s contributions with interest are to offset for the portion of the pension benefit that is attributable, in accordance with the benefit formula of the pension plan, to a purchase of past service made after the commencement of this subsection.
55(2)Upon termination of employment or wind-up of a pension plan, a member of a plan is entitled to a refund of the amount, if any, equal to the aggregate of the contributions made by the member with interest less the amount required to offset the percentage of the commuted value of the pension benefit referred to in subsection (1), and that amount, at the option of the member, shall be dealt with in one or more of the following ways:
(a) returned to the member;
(b) transferred to a registered retirement savings plan as defined in the Income Tax Act (Canada) if
(i) the transfer is permitted under that Act or its regulations, and
(ii) the registered retirement savings plan is not a retirement savings arrangement prescribed for the purposes of subparagraph 36(1)(a)(ii); or
(c) transferred to a registered retirement income fund as defined in the Income Tax Act (Canada) if
(i) the transfer is permitted under that Act or its regulations, and
(ii) the registered retirement income fund is not a retirement savings arrangement prescribed for the purposes of subparagraph 36(1)(a)(ii).
55(2.1)Notwithstanding subsection (2), an optional ancillary contribution shall not be refunded if
(a) its refund is prohibited by the Income Tax Act (Canada), or
(b) its refund would result in the revocation of the pension plan’s registration under subsection 147.1(13) of the Income Tax Act (Canada).
55(3)If a pension plan does not fix the percentage of the commuted value of a contributory pension benefit that a member’s contributions with interest are to offset, the plan shall be deemed to have fixed the percentage at fifty per cent.
55(4)Subsections (1) and (3) do not apply in respect of defined contribution benefits or benefits arising from additional voluntary contributions or optional ancillary contributions.
55(5)Subsections (1) and (3) apply to pension benefits provided in respect of employment after the commencement of this section and to pension benefits resulting from an amendment to the pension plan made after the commencement of this section whether or not the amendment applies in respect of employment before the commencement of this section.
2002, c.12, s.25