Regulations - Public Service Superannuation - Interest Rates and Calculation

1 These regulations may be cited as the Interest Rates and Calculation Regulations.

(c) “Superannuation Fund” means the Superannuation Fund created and maintained under the Superannuation Plan and referred to in the Act;

(d) “Superannuation Plan” means the pension plan set out in the Act and its regulations.

3 (1) Interest is payable on the accumulated balance of contributions and accrued interest on contributions made by an employee under paragraph 2(j)(ii)(B), subsection 5(2), clause 9(3)(b) and Section 10 of the Act at the interest rates and by the calculation methods set out in the following table for the periods of time specified:

Rates of Interest on Accumulated Balance of Employee Contributions
Time Period	Interest Rate
Up to and including December 31, 1958	4% per year, compounded semi-annually
On and after January 1, 1959, to and including December 31, 1969	6% per year, compounded semi-annually
On and after January 1, 1970, to and including September 30, 1978	7% per year, compounded semi-annually
On and after October 1, 1978, to and including March 31, 1982	8.25% per year, compounded semi-annually
On and after April 1, 1982, to and including October 31, 1985	13.15% per year, compounded semi-annually
On and after November 1, 1985, to and including March 31, 2008	10% per year, compounded semi-annually
On and after April 1, 2008	per fiscal year, the nominal interest rate used in the actuarial valuation of the Superannuation Plan for funding purposes for the immediately preceding fiscal year, compounded semi-annually

4 The rate of interest payable during an amortized instalment period by an employee who pays contributions by instalment payments under Section 5, 9, 10 or 13 of the Act is as set out in the following table for the specified time period during which the employee applies to make the instalment payments:

Rates of Interest on Instalment Payments
Application Time Period	Interest Rate During Amortized Instalment Period
On and after November 1, 1985, to and including March 31, 2008	10% per year, compounded semi-annually
On and after April 1, 2008	per fiscal year, the nominal interest rate used in the actuarial valuation of the Superannuation Plan for funding purposes for the immediately preceding fiscal year, compounded semi-annually

Outstanding balance of instalment contributions and interest upon retirement, termination of employment, or death

5 (1) If, upon retirement or termination of employment, an employee who has been paying or repaying required contributions plus interest to purchase prior service by payroll deductions has an outstanding balance of contributions plus interest, that balance becomes due and payable no later than the date of the employee’s retirement or termination.

(2) If an outstanding balance of contributions plus interest payable as required by subsection (1) is not paid in full, the pension benefit shall be adjusted to reflect the years and months of service actually paid for prior to the date of the employee’s retirement or termination.

(3) If, upon the death of an employee who has been paying or repaying required contributions plus interest to purchase prior service by payroll deductions, there remains an outstanding balance of contributions plus interest payable, the pension benefit shall be adjusted to reflect the years and months of service actually paid for prior to the date of the employee’s death.

6 (1) In this Section, “contributions” includes interest or other payments made by or on behalf of the employee into the Superannuation Fund.

(2) For the purposes of subsections 7(3), 8(4), 14(2) and 17(3) of the Act and clause 27(4)(c) of the Act, interest must be calculated on contributions made within a calendar year, beginning on January 1 of the year following the first year in which the contributions were made and continuing to the applicable date set out in the following table:

End Date for Calculation of Interest on Contributions
Provision in Act	End Dates
7(3)	the last day of the month immediately preceding the month in which the Minister receives the request, in writing, from the employee or the employee’s personal representative
8(4)	the effective date of calculation of the commuted value
14(2)	the effective date of the employee’s retirement
17(3)	the effective date of the employee’s retirement
27(4)(c)	the last day of the month immediately preceding the month in which the employee’s spouse dies

(3) No per diem interest rate applies to interest calculated under this Section.

(4) The rates of interest payable on contributions referred to in subsection (2) are as set out in the following table:

Rates of Interest on Payments from Superannuation Fund
Time Period	Interest Rate
On and after August 1, 1983, to and including December 31, 1989	simple interest at 6% per calendar year
On and after January 1, 1990, to and including December 31, 2007	simple interest at 10% per calendar year
On and after January 1, 2008	rate per calendar year calculated on the basis of the average of the yields of 5-year personal fixed-term chartered bank deposit rates (Statistics Canada CANSIM Series B 14045) for the 12-month period ending October 31 in the calendar year immediately preceding the calendar year for which interest is to be calculated, compounded annually

7 (1) To the extent not expressly provided for elsewhere in these regulations, any time the Minister requires that money be paid into the Superannuation Fund, the payment must include interest for any appropriate period determined by the Minister.

(2) Interest required by subsection (1) must be calculated for a given fiscal year at the nominal interest rate used in the actuarial valuation of the Superannuation Plan for funding purposes for the immediately preceding fiscal year, compounded semi-annually.

8 (1) To the extent not expressly provided for elsewhere in these regulations, any time the Minister considers it appropriate to pay money from the Superannuation Fund, the payment must include interest for any appropriate period determined by the Minister.

(2) Interest required by subsection (1) must, for a given calendar year, be at a rate calculated on the basis of the average of the yields of 5-year personal fixed-term chartered bank deposit rates (Statistics Canada CANSIM Series B 14045) for the 12-month period ending October 31 in the immediately preceding calendar year, compounded annually.