Superannuation Administration Manual—Special Bulletin 2011-002

Transitional Implementation Guidelines

April 11, 2011 Updated February 27, 2015

These guidelines will explain what should be done with pension work remaining with the compensation advisor on April 11, 2011, and are only to be followed for outstanding work on implementation. The new processes to be followed for Pension Benefit Entitlements and Survivor Pension Entitlements can be found in the Work Procedures document.

It is expected that organizations will complete all pension benefit and survivor pension entitlements work received prior to implementation. The Pension Support System (PSS) will be unavailable for both compensation advisors and the Pension Centre as of March 31, 2011. The conversion of data from the current system to the new pension solution will take place between March 31 and April 11, 2011. Plan members can be advised to contact the Pension Centre on April 11, 2011 or later. Detailed instructions on the completion of work are provided below:

Transmission of Pension Request or Payment Pension Benefit Estimates

Compensation advisors will complete requests for pension benefit estimates received prior to March 31, 2011. In order to do so, compensation advisors must perform all necessary pension calculations in the PSS prior to March 31, 2011.

For requests not completed, compensation advisors must complete and forward a "Transmission of Pension Request/Payment" document to the plan member and the Pension Centre.

Terminations of Employment

Current termination of employment processes must continue to be followed until April 11, 2011, regardless of a plan member's termination date or date of death.

Compensation advisors are reminded to complete the compensation advisor portion of all pension documents before sending to plan members for completion, such as the current Deductions from Annuity or Annual Allowance (PWGSC-TPSGC 1422) form or the Election To Continue As A Participant Under The Supplementary Death Benefit Plan (PWGSC-TPSGC 2017) form.

If a plan member returns completed pension documents to the compensation advisor after April 11, 2011, the following applies:

• A completed "Transmission of Pension Request/Payment" document must be forwarded to the plan member
• The compensation advisor must send all completed documents to the Pension Centre, along with a copy of the "Transmission of Pension Request/Payment"
• The Pension Centre will review all documents for completeness and follow up with the plan member, if required

"Submit" action in the Pension Support System

As the PSS will be unavailable as of March 31, 2011, "Submit" actions in the PSS (providing verification of salary, service and LWOP information) cannot be performed after that date.

Compensation advisors must ensure "submits" are done for all termination of employment transactions that have or will be done prior to March 31, 2011. For employers that do not use the PSS, the process for submitting salary, service, and LWOP data remains the same until April 11, 2011.

In addition, prior to March 31, 2011, to ensure a smooth transition for plan members and their survivors or legal representatives, we are asking that compensation advisors review and verify in the PSS, in advance, the salary, service, and LWOP data for termination dates of July 11, 2011, or earlier. Data can also be submitted for retirements with termination dates in 2011. Employers not using the PSS are asked to complete a "Salary Service Information-Pension Support System" form (PWGSC-TPSGC 2020).

Return of Contributions

The current process of completing a "Request for Return of Superannuation Contributions - Direct Input Document (Regional Pay System only)" (PWGSC-TPSGC 2577) and forwarding it to the PO will remain in effect until March 30, 2011. Requests for payments of Returns of Contributions (ROC) between March 31 and April 11, 2011, should be sent to the Pension Centre using a "Transmission of Pension Request/Payment" document.

For non-Regional Pay System (RPS) users, the Pension Centre will continue to pay the ROC.

If a plan member returns completed pension documents to the compensation advisor or advises of method of payment for a ROC (cash versus Registered Retirement Savings Plan (RRSP)/Registered Pension Plan (RPP)) in another manner after March 30, 2011, the following applies:

• A completed "Transmission of Pension Request/Payment" document must be forwarded to the plan member
• The compensation advisor must send a copy of the "Transmission of Pension Request/Payment" document to the Pension Centre, along with the plan member's chosen method of payment for a ROC (cash versus RRSP/RPP)
• The Pension Centre will review, pay the ROC and follow up with the plan member, if required

"Transmission of Pension Request/Payment" Document

The document "Transmission of Pension Request/Payment", found in this SAM Special Bulletin, is to be used to facilitate the transfer of work received from a plan member to the Pension Centre.

The document must be fully completed by the compensation advisor, including the type of request, before being sent to the plan member or the Pension Centre.

Death in Service

Due to the sensitivity of death in service cases, it is important that plan members' survivors or legal representatives be provided assistance from both the compensation advisors and the Pension Centre during the transition period.

For a death in service that occurs during the transition period, compensation advisors must indicate, on the Notification of Death In Service (PWGSC-TPSGC 2014) form, whether or not plan members' survivors or their legal representatives have been provided with any pension benefit information. When it is indicated that information has not been provided, the Pension Centre will contact the plan members' survivors or their legal representatives to provide the necessary information.

The document "Transmission of Pension Request/Payment" should not be sent to a plan member's survivors or their legal representatives.

Transmission of Pension Request or Payment

April 11, 2011

TO: Plan member

FROM: Compensation

As of April 11, 2011, the Pension Centre is now responsible for all pension benefit entitlement activities, including pension benefit estimates and pension counseling on termination of employment. We have therefore forwarded your request for pension information/payment to the Pension Centre for processing.

"Your Public Service Pension and Benefits" Web portal guides you through determining your estimated pension entitlements and steps to follow when you are terminating employment. We encourage you to visit the site at: Your Public Service Pension and Benefits. Further information is also available in the Pension Entitlement Termination Package at: PWGSC—Pension Entitlement.

The Pension Centre will process your request. Should additional information be required, you will be contacted within three weeks.

The Pension Centre contact information is available at:

Public Works and Government Services Canada
Government of Canada Pension Centre—Mail Facility
PO Box 8000
Matane QC G4W 4T6
Toll free: 1-800-561-7930
Outside Canada and the United States: 0-506-533-5800
Telephone Teletype (TTY): 0-506-533-5990
Fax: 418-566-6298

Work Procedures

April 11, 2011 Updated February 27, 2015

For Compensation Advisors, Pay Offices and the Pension Centre

Questions from employees and their survivors or legal representatives on pay entitlements and application of the rules of pay policies and procedures will continue to be addressed by compensation advisors.

Severance Pay Clauses of Collective Agreements

The wording used in the severance pay clauses of most collective agreements is identical. The entitlement to severance pay for reasons of retirement is dependent on a plan member's pension entitlement.

Since compensation advisors, effective April 11, 2011, will no longer be responsible for establishing pension entitlements, some general rules, provided below, will be required to determine when a plan member is entitled to an immediate annuity or an immediate annual allowance and, therefore, would fall under the retirement clause for severance pay purposes. If unsure, the Pension Centre can be contacted for confirmation of entitlement.

For employers whose severance pay entitlements are not based on entitlement to an immediate annuity or an immediate annual allowance but are based on other pension rules, the Pension Centre can be contacted for confirmation of pension entitlement.

General rules to establish entitlement to an immediate annuity or an immediate annual allowance

A plan member is entitled to an immediate annuity or an immediate annual allowance in the following situations:

On termination, at any age, with a medical retirement approval as indicated on the "Interpretation Of Medical Examination For Pension Purposes" (PWGSC-TPSGC 2012) form, and with at least 2 years from the most recent date of becoming a plan member (with no break in service).

Plan members less than age 50, except as described above, are not entitled to an immediate annuity or an immediate annual allowance.

On termination, plan members age 50 or over with at least 2 years from the most recent date of becoming a plan member (with no break in service).

If a plan member does not fall under the general rules, compensation advisors, if unsure, should contact the Pension Centre to confirm entitlement to an immediate annuity or an immediate annual allowance or ask the plan member for a copy of his/her Pension Benefit Options Statement (PWGSC-TPSGC 2011E-PF). Note: that reference can only be made to the options statement if the termination date on the statement is the same as the plan member's actual termination date.

If a plan member chooses to make a payment towards their service buyback using their severance pay payment, he must provide specific direction to the compensation advisor.

Termination/Retirement Information (PWGSC-TPSGC 4242)

Updated Compensation advisors will complete Part 1 of the Termination/Retirement Information (PWGSC-TPSGC 4242) (accessible only on the Government of Canada network) form for all plan members and forward to the Pension Centre within five business days of a termination of employment transaction, or within five business days of a request from the Pension Centre. In the case of a retroactive salary increase, the 5 business day does not apply.

In addition, a copy of the form must continue to be sent to the PO for their completion once the account is finalized. An account is considered finalized once it has been terminated in the pay system, any cancelled cheques have been processed, and all final salary and termination payments with deductions have been issued by the pay system.

Updated In order to forward the form to the Pension Centre within five business days of a termination transaction, the form can be completed with an indication that a debt exists, but amounts are unknown, if required. In these situations, a final copy of the form, with Part 1 completed, must then be forwarded to the PO for their completion. In addition, a second copy of the form should be forwarded to the Pension Centre.

For detailed instructions on the completion and distribution of the form, refer to the Compensation Directive: 2010-000 entitled "New form - Termination/Retirement Information".

Completion of the Termination/Retirement Information (PWGSC-TPSGC 4242) form is not required for plan members with no break in service who terminate employment and move from a department where Treasury Board is the employer to a Crown Corporation/Separate Employer or vice-versa, or who move between two Crown Corporations/Separate Agencies both covered under the public service pension plan.

The completion of the form is also not required when plan members are terminated and are to be transferred to another pay system or a PO not within the Public Works and Government Services Canada pay system.

When a retroactive salary increase occurs after termination of employment, a Termination/Retirement Information (PWGSC-TPSGC 4242) form is required in certain situations only:

When a change in salary will affect an annuitant's Supplementary Death Benefit coverage. This occurs when an increase effective date (the first of the month following the month during which the authorizing instrument was issued) is on the first of the month prior to the termination date. Refer to SAM Section 6-2-5 for further details.

When the retroactive period contains a leave without pay period for which deficiencies were owing on termination of employment.

A revised Termination/Retirement Information (PWGSC-TPSGC 4242) form will also be required when a pensionable allowance effective on the last day of employment changes from the amount reported on the original form.

Updated Debts to the Crown Reported on the Termination/Retirement Information (PWGSC-TPSGC 4242) form

Pay special attention to the new reporting requirements of debts to the Crown to be made from pension payments, if applicable.

If a recovery is required from a pension payment, compensation advisors must report all existing debts to the Crown upon termination of employment (before any recoveries). Once the account is finalized, the PO will report any debts recovered, and the final debt amount outstanding. Compensation advisors and POs must ensure the reporting of debt amounts is done properly to avoid a duplication of reporting and recovery.

If the client department, Crown corporation, agency or territorial government manages the debt themselves and will recover the debt through other means, there is no need to advise the Pension Centre of the debt. In these cases the compensation advisor must not report the debt amount on the Termination/Retirement Information (PWGSC-TPSGC 4242) (accessible only on the Government of Canada network) form. In addition, if a debt amount is not reported in Part 1B of the form, the PO must not complete Part 2B of the form.

The Pension Centre will advise the employing organization when a debt has been recovered.

• For employers using RPS, the organization will be notified that the debt was recovered via an interdepartmental settlement (IS) to the Finance and Administration Branch (FAB). It will be FAB's responsibility to notify the compensation advisor that a payment has been received. Compensation advisor contact information will be provided in the financial system for this purpose. The compensation advisor must then input a Cash receipt (accessible only on the Government of Canada network) transaction or inform the pay office to remove the debt from the pay system. If this last step does not occur, the recovery could be made twice in error
• Employers not using RPS will be sent a cheque directly from the Pension Centre for the money recovered. Following this, the debt will be removed from the pay system

Should a compensation advisor subsequently recover the amount of the debt to the Crown reported on the Termination/Retirement Information (PWGSC-TPSGC 4242) form, or a part thereof, the Pension Centre must be notified immediately to avoid duplication of recoveries.

Termination and Contributions Advice (PWGSC-TPSGC 2321)

With the implementation of the new Data Capture Tool (DCT), on termination of employment, Crown corporations, departments, agencies and territorial governments not using the RPS will no longer be required to complete a "Termination and Contributions Advice" (PWGSC-TPSGC 2321), as the required information will be fed through the DCT.

Notification of Death in Service (PWGSC-TPSGC 2014)

When advised of a death in service, compensation advisors will immediately complete Part A of the revised Notification of Death In Service (PWGSC-TPSGC 2014) form and fax it to the Pension Centre. This form will serve to notify the Pension Centre that a death has occurred.

RPS users do not send a copy of the completed form to the PO. Upon notification of a death in service, the Pension Centre will verify the entitlement to a Supplementary Death Benefit payment. If a Supplementary Death Benefit payment must be made, the Pension Centre will determine if there is a possibility that Supplementary Death Benefit deficiencies may be outstanding and will contact the PO for completion of the form, if required.

For non-RPS users, both the compensation advisor and the PO section of the form must be completed before being sent to the Pension Centre.

Canadian Forces Superannuation Act (CFSA)/Royal Canadian Mounted Police Superannuation Act (RCMPSA) Report of Pensionable Service (PWGSC-TPSGC 2073)

When a new plan member indicates on his "Enrolment Information and Acknowledgement of Plan Membership" form (PWGSC-TPSGC 571) prior service with the CF or the RCMP, the Pension Centre will send a request to the CF or the RCMP for completion of a CFSA/RCMPSA Report Of Pensionable Service (PWGSC-TPSGC 2073) (accessible only on the Government of Canada network) form.

If a compensation advisor requires a completed (CFSA/RCMPSA Report Of Pensionable Service (PWGSC-TPSGC 2073) form and there is not one on the plan member's file, the compensation advisor should continue to forward the form to the CF or the RCMP for completion.

The CFSA/RCMPSA Report Of Pensionable Service (PWGSC-TPSGC 2073) form has been amended to instruct the CF and the RCMP to forward the completed form to both the Pension Centre and the compensation advisor, as both may require the information.

Pre-Retirement Transition Leave

A plan member wanting to apply for pre-retirement transition leave must attach proof of their earliest date of retirement with an unreduced pension to their pre-retirement leave application. The manager will require this date to determine whether the member meets the eligibility requirement of an unreduced pension at the start of the leave arrangement, or is within two years of becoming eligible for an unreduced pension, in order to approve. Plan members can obtain their earliest date of retirement with an unreduced pension date in the "Retirement or Departure" section available on the left-hand side menu bar within the Pension and Insurance Benefits Statement. The Pension Centre can also be contacted, if required.

All other pre-retirement leave processes do not change.

Forms Pension Reduction Waiver Request (PWGSC-TPSGC 2429) and Pension Reduction Waiver Request (PWGSC-TPSGC 2429-1) and Work Force Adjustment

Work Force Adjustment directives (WFAD) specify criteria that must be met for an employee to be eligible for a waiver of a pension penalty or reduction.

Compensation advisors continue to be responsible to forward a completed Pension Reduction Waiver Request (PWGSC-TPSGC 2429) (accessible only on the Government of Canada network) form or Pension Reduction Waiver Request (PWGSC-TPSGC 2429-1) (accessible only on the Government of Canada network) form to the Pension Centre, when required.

These forms have been amended to gather certification that a plan member was at least age 55 at termination, has been employed in the public service for at least ten years, and has met the requirements for a waiver of the reduction, as detailed on the forms.

The Pension Centre will provide information to plan members on both regular pension entitlements and the impacts should a pension reduction waiver be approved.

Correctional Service Canada form Election to Continue to Pay Extra Contributions for All Additional Years of Non-Operational Service (PWGSC-TPSGC 2469)

Compensation advisors remain responsible for determining entitlement of a plan member to opt, when applicable, to continue paying the additional contributions in order to count service as deemed operational.

If a plan member requires clarification on the pension impacts of this decision, the member should be referred to the Pension Centre.

Service Standards

Pay Office

Complete and fax the Notification of Death In Service (PWGSC-TPSGC 2014) form—Part B to the Pension Centre within 24 hours of receipt, when applicable.

Complete the Termination/Retirement Information (PWGSC-TPSGC 4242) form within ten business days of receipt of the form from the compensation advisor.

Pension Centre

Telephone calls will be returned within 48 hours from receipt of the call (two business days). The Pension Centre will provide the plan member pension benefit entitlement information and estimates requests by phone, based on the information available.

Email inquiries: All email inquiries will be responded to within five business days from receipt of the inquiry.

ROC payments: The ROC payments will be issued within 30 days of receipt of all required documentation, or within 30 days of the date of termination, depending on whichever is later.

Transfer value (TV) payments: The TV payments will be issued within 45 days of receipt of all required documentation, or within 45 days of the date of termination, depending upon whichever is later.

Initial pension payment to annuitants: When the documentation required to pay the pension has been received prior to the termination date, or within 15 days following termination, the first pension cheque will be issued within 45 days of the termination date. When the essential retirement documents are received more than 15 days after the termination date, the first pension cheque will be issued within 30 days of receipt of the final required documents.

Initial payment to survivors: Initial payment to a surviving spouse will be issued within 30 days of receipt of the required documentation.

Supplementary Death Benefit payment for death-in-service: Payment will be issued within 72 hours (three working days) of receipt of all required documentation.

Roles and Responsibilities

April 11, 2011 Updated February 27, 2015