Government Annuities Improvement Act

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Sections37

• 1Short title

  This Act may be cited as the Government Annuities Improvement Act.

• 2Minister
• 2(1)

  In this Act, Minister means such member of the Queen’s Privy Council for Canada as is designated by the Governor in Council to administer the Government Annuities Act.

• 2(2)Words and expressions

  Unless the context otherwise indicates, words and expressions have the same meaning as in the Government Annuities Act.

• 3Increased interest for deferred annuities
• 3(1)

  In determining the value of an annuity prior to the date on which it becomes payable, the rate or rates of interest to be used shall, for the period before April 1st, 1975, be the rate or rates of interest applicable to that annuity contract and, for the period commencing April 1st, 1975, shall, subject to subsection (2), be seven per cent per annum.

• 3(2)Governor in Council may vary interest rate

  The Governor in Council may by regulation vary, in respect of any annuity or category of annuities, the seven per cent rate of interest mentioned in subsection (1), but the rate of interest fixed by regulation may not, in respect of any annuity, be lower than the rate or rates of interest applicable to that annuity prior to April 1st, 1975.

• 4Calculation of amount of annuity

  At the date on which an annuity becomes payable, if that date is on or after April 1st, 1975, the amount of annuity payable shall be calculated by using the value of that annuity determined in accordance with section 3 and the table or tables of values prescribed under paragraph 13(b) of the Government Annuities Act applicable to that annuity contract.

• 5Annuity payments to be increased
• 5(1)

  All amounts payable by way of an annuity on or after April 1st, 1975 shall be increased by the applicable percentage or percentages shown in the schedule.

• 5(2)Amendment of schedule

  The Governor in Council may, by regulation, amend the schedule in respect of any annuity or category of annuities.

• 6Maximum annuity max exceed $1,200 per year
• 6(1)

  Notwithstanding subsection 8(1) of the Government Annuities Act, the total amount payable by way of an annuity or annuities to any annuitant or to joint annuitants may exceed twelve hundred dollars a year to the extent that such excess results from the application of section 3 or 5 or both.

• 6(2)Regulations may permit further increase in maximum

  The Governor in Council may make regulations for permitting the total amount payable by way of annuity or annuities to any annuitant or to joint annuitants to exceed the maximum permitted by subsection (1).

• 7Variation and substitution

  The Minister may, upon such terms and conditions as are prescribed by regulation,

• 7(a)

  vary an existing annuity contract with the consent of the purchaser; or

• 7(b)

  substitute a new annuity contract for an existing one where there is a change of purchaser.

• 8When purchaser dies or goes out of existence

  Where an annuity contract under the Government Annuities Act does not permit the annuitant to request changes in his annuity without the purchaser’s consent and the purchaser has died or gone out of existence, the annuitant has the same right to request changes in his annuity as had the purchaser.

• 9Commutation available in certain cases

  When, under an annuity contract under the Government Annuities Act, the annuity is payable for a term of years certain or for the life of the annuitant, whichever period is the longer, and the annuitant has died before the expiration of that term of years certain, then, notwithstanding subsection 12(2) of the Government Annuities Act, the remaining instalments may, at the request of the purchaser or his legal representative, be commuted into a lump sum payment, the amount of which shall be calculated in accordance with the regulations.

• 10Interest to date of repayment in certain cases

  The interest referred to in subsection 12(1) of the Government Annuities Act shall accrue to the date of repayment in cases where the relevant death occurs after the commencement of this Act, even if the annuity contract stipulates that the interest will accrue only to the date of death.

• 11Rate of interest in certain cases

  Notwithstanding the provisions of The Appropriation Act No. 4, 1950, Vote 695, and of Appropriation Act No. 6, 1960, Vote 526, the interest mentioned in those Votes shall, after March 31st, 1975, accrue at a rate determined from time to time by the Governor in Council.

• 12Transferability of benefits

  Notwithstanding subsection 10(1) the Government Annuities Act, where an annuity contract is a registered retirement savings plan within the meaning of the Income Tax Act or is under a registered pension fund or plan within the meaning of the Income Tax Act, any monies payable under that contract may, at the request of the annuitant or, if the annuitant is dead, at the request of the beneficiary, be paid to another registered retirement savings plan within the meaning of the Income Tax Act or to another registered pension fund or plan within the meaning of the Income Tax Act.

• 13No new contracts

  After the commencement of this Act, no further annuity contracts may be entered into under the Government Annuities Act, except as provided by the terms of an existing annuity contract under that Act or by paragraph 7(b) of this Act.

• 14Registration deadline under group contracts

  No further registration of employees under annuity contracts mentioned in subsection 6(3) of the Government Annuities Act may take place after March 31st, 1979.

• 15Calculation of liability
• 15(1)

  Notwithstanding anything in section 15 of the Government Annuities Act, the liability outstanding at the end of each fiscal year in respect of annuity contracts shall be calculated on the basis of such rate or rates of interest and mortality tables, and in such manner, as is prescribed by regulation.

• 15(2)Credits to Account

  If at the end of any fiscal year the liability calculated under subsection (1) exceeds the balance of the Government Annuities Account, there shall be credited to the Account and charged to the Consolidated Revenue Fund an amount equal to the excess of the liability over the balance of the Account.

• 15(3)Charges to Account

  If at the end of any fiscal year the liability calculated under subsection (1) is less than the balance of the Government Annuities Account, there shall be charged to the Account and credited to the Consolidated Revenue Fund an amount equal to the amount by which the balance of the Account exceeds the liability.

• 16Repealed

  [Repealed, 2026, c. 3, s. 571]

• 17Regulations

  The Governor in Council may make regulations

• 17(a)

  prescribing terms and conditions for the purposes of section 7;

• 17(b)

  respecting the manner in which a grant of letters probate, or similar document, of any court or authority outside Canada is to be proved for the purposes of the Government Annuities Act;

• 17(c)

  prescribing the manner in which lump sum payments mentioned in section 9 are to be calculated; and

• 17(d)

  prescribing the manner in which the liability outstanding at the end of each fiscal year in respect of annuity contracts is to be calculated, and the rate or rates of interest and mortality tables to be used in that regard.

• 18Annual report to Parliament
• 18(1)

  Within nine months after the end of each fiscal year, the Minister shall prepare a report on all business done under the Government Annuities Act and this Act during that fiscal year and shall lay the report before Parliament within fifteen days after it bas been prepared or, if Parliament is not then sitting, within the first fifteen days next thereafter that Parliament is sitting.

• 18(2)Repeal

  Section 16 of the Government Annuities Act is repealed.