Vol. 149, No. 26 — December 30, 2015
SOR/2015-250 December 11, 2015
ROYAL CANADIAN MOUNTED POLICE SUPERANNUATION ACT
Regulations Amending the Royal Canadian Mounted Police Superannuation Regulations
P.C. 2015-1274 December 11, 2015
His Excellency the Governor General in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness, pursuant to sections 26 (see footnote a) and 41 (see footnote b) of the Royal Canadian Mounted Police Superannuation Act (see footnote c), makes the annexed Regulations Amending the Royal Canadian Mounted Police Superannuation Regulations.
REGULATIONS AMENDING THE ROYAL CANADIAN MOUNTED POLICE SUPERANNUATION REGULATIONS
1. (1) Paragraph 10(1)(b) of the Royal Canadian Mounted Police Superannuation Regulations (see footnote 1) is replaced by the following:
- (b) subject to subsection 6.1(2) of the Act, in respect of the remainder of the leave, two and one-half times that amount in respect of any portion of that remainder that is before January 1, 2016 and two times that amount in respect of any portion of that remainder that is after December 31, 2015.
(2) Paragraph 10(2)(a) of the Regulations is repealed.
(3) Subparagraph 10(2)(b)(ii) of the Regulations is replaced by the following:
- (ii) because of a physical or mental impairment that prevents the contributor from performing the duties of the employment in which they were engaged before the commencement of the impairment, or
(4) Paragraph 10(2)(b) of the Regulations is amended by striking out “or” at the end of subparagraph (iii) and by repealing subparagraph (iv).
2. (1) Subsection 19(2) of the English version of the Regulations is amended by replacing “him” with “him or her”.
(2) Subsection 19(3) of the English version of the Regulations is amended by replacing “his” with “their”.
3. Section 20.2 of the French version of the Regulations is amended by replacing “conjoint survivant” with “survivant”.
4. Section 23 of the Regulations and the heading before it are repealed.
COMING INTO FORCE
5. These Regulations come into force on January 1, 2016, but, if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
On January 1, 2016, the cost-sharing ratio for members of the Royal Canadian Mounted Police (RCMP) Pension Plan and the Government of Canada is set to be 41:59. The Royal Canadian Mounted Police Superannuation Regulations require a plan member contribution rate of two and one-half times the normal amount for certain types of leave without pay. In these instances, affected members would have to contribute 102.5% of the total pension contributions required in respect of a leave without pay period which would be unduly high.
The Income Tax Regulations set out a number of rules applicable to registered pension plans, including the RCMP Pension Plan. One of the rules places a five-year limit on the amount of leave without pay that can be counted as pensionable service. A period of temporary disability is excluded from this limit if the pension plan member is unable to perform their assigned duties. The Royal Canadian Mounted Police Superannuation Regulations (the Regulations) are overly restrictive where they describe temporary disability as a period during which the member is unfit to pursue any employment.
Finally, the Regulations contain two redundant and one outdated provision and the Standing Joint Committee for the Scrutiny of Regulations has concerns with gender-specific language and terminology that is inconsistent with the enabling authority, the Royal Canadian Mounted Police Superannuation Act.
The Royal Canadian Mounted Police Pension Plan (the Plan) is governed by the provisions of the Royal Canadian Mounted Police Superannuation Act and its related Regulations. The Plan is funded by contributions from members of the RCMP and the Government of Canada as the employer. Contribution rates for members of the federal public sector pension plans are gradually increasing to reach a more balanced cost-sharing ratio between the members and the Government.
The Royal Canadian Mounted Police Superannuation Act was amended in 2012 to specify that members of the RCMP Pension Plan will contribute at the same rates as those established for Public Service Pension Plan members.
Effective January 1, 2016, the cost-sharing ratio for RCMP members and the Government will be established at 41:59.
The Regulations set out the rules for the pension treatment of a period of authorized leave without pay taken by a member of the RCMP. In most cases, a period of such leave becomes pensionable under the Plan and requires the payment of pension contributions when the leave period ends.
For certain types of pensionable leave without pay, the Regulations require the member to pay two and one-half times the amount they would have paid had they not been absent. The purpose of the two and one-half times rate was to ensure the member paid their portion of pension contributions plus a portion of the Government of Canada’s share.
The objective of the regulatory amendments is to ensure that affected members of the RCMP Pension Plan do not pay more than 100% of the total pension contributions required from the member and from the Government of Canada in respect of certain leave periods that occur on or after the day the amendments come into force. The amendments also bring the member pension contribution rate for leave without pay periods in line with the rate that applies to members of the Public Service Pension Plan.
The description of leave without pay because of a temporary period of disability is updated to align with the description of this type of leave without pay in the Income Tax Regulations, where those Regulations set out certain rules for registered pension plans in Canada. This change will ensure that such a period is appropriately excluded from the tax limit on the maximum amount of other types of leave without pay that a pension plan member may count as pensionable service.
The Regulations are further amended to ensure coherence and consistency by repealing two redundant and one outdated provision and by ensuring that terminology aligns with the Royal Canadian Mounted Police Superannuation Act.
The amendments reduce the rate of pension contributions required from a plan member, in respect of certain types of leave without pay, from two and one-half times to two times the amount the member would have paid had they been actively at work.
The description of the type of leave without pay due to disability is amended to define the type of impairment as one that prevents the member from performing their assigned duties. This is a change from the previous overly restrictive definition that described the member as unable to pursue any employment.
The Regulations contain provisions stating that a period of leave without pay not exceeding six consecutive days and a period of leave without pay for personal needs not exceeding three months require the plan member to pay the amount of pension contributions they would have paid had they not been on leave. However, the Regulations also contain a primary rule stating that the first three months of any type of leave without pay require such an amount of contributions, making the former two provisions redundant. Consequently, they are repealed.
An outdated provision relates to the treatment of a person who is in receipt of a pension under the former Act and who becomes subject to the current Royal Canadian Mounted Police Superannuation Act. Given that the current Act has been in force since 1959, this spent provision is repealed.
Another amendment replaces the term “his” by gender-neutral language in the English version of the Regulations. In the French version of the Regulations, the term “conjoint survivant” is replaced by “survivant” to use terminology consistent with the statutory authority in the Royal Canadian Mounted Police Superannuation Act.
The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business. This proposal does not apply to business.
Small business lens
The small business lens does not apply to this proposal, as there are no costs to small business. This proposal does not apply to business.
Consultations took place with the Office of the Chief Actuary, the Department of Justice Canada, and the Treasury Board Secretariat.
The Royal Canadian Mounted Police Pension Advisory Committee was advised and is supportive of the amendments. This Committee has a statutory mandate to review matters respecting the administration, design and funding of the Royal Canadian Mounted Police Superannuation Act and to make recommendations to the Minister of Public Safety and Emergency Preparedness about those matters.
The Royal Canadian Mounted Police Superannuation Act provides that details relating to the pension arrangements for members of the Royal Canadian Mounted Police Pension Plan are set in accordance with the Regulations; therefore, there is no alternative to amending the Regulations.
There is little to no risk associated with the amended Regulations, as they are strictly beneficial to stakeholders. The reduction of the contribution rate for certain types of leave without pay ensures that members of the Royal Canadian Mounted Police Pension Plan do not pay more than 100% of the total pension contributions required from the member and the Government of Canada in respect of the leave period.
The updated description of the type of leave without pay taken because of a temporary disability aligns with the rules for registered pension plans set out in the Income Tax Regulations. Members of the Royal Canadian Mounted Police currently do not have established maximums for sick leave with pay; consequently, no members have been disadvantaged by the previous description which was overly restrictive.
The changes also resolve concerns of the Standing Joint Committee for the Scrutiny of Regulations.
There is no increase in the actuarial liability of the Royal Canadian Mounted Police Pension Plan and no change in the current service cost as a result of the amendments.
Implementation, enforcement and service standards
The Regulations come into force the later of January 1, 2016, or the day on which they are registered.
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