Vol. 143, No. 14 — July 8, 2009

Registration

SOR/2009-204 June 25, 2009

PUBLIC SERVICE SUPERANNUATION ACT
FINANCIAL ADMINISTRATION ACT

The Micronutrient Initiative Divestiture Regulations

T.B. 835148 June 18, 2009

The Treasury Board, on the recommendation of the President of the Treasury Board, pursuant to paragraph 42.1(1)(u) (see footnote a) of the Public Service Superannuation Act (see footnote b) and paragraph 7(2)(a) of the Financial Administration Act (see footnote c), hereby makes the annexed The Micronutrient Initiative Divestiture Regulations.

THE MICRONUTRIENT INITIATIVE DIVESTITURE REGULATIONS

Application

1. (1) These Regulations apply to a person who, by reason of the agreement dated December 1, 2001 between the International Development Research Centre, established under section 3 of the International Development Research Centre Act, and The Micronutrient Initiative, incorporated by Letters Patent issued July 4, 2001 under the Canada Corporations Act, ceased to be deemed to be employed, on December 1, 2001, in the public service for the purposes of the Public Service Superannuation Act (the “Act”) and became employed by The Micronutrient Initiative.

Exception — person re-employed

(2) These Regulations do not apply to a person who becomes re-employed by The Micronutrient Initiative.

When provisions are applicable

2. Sections 13 and 13.01 of the Act only apply to the person on or after the day on which they cease to be employed by The Micronutrient Initiative.

Benefits for survivor and children

3. The survivor and children of the person who dies while employed by The Micronutrient Initiative are entitled to one of the following benefits to which they would have been entitled if the person had been employed in the public service:

(a) the death benefit under subsection 12(8) of the Act; or

(b) the allowances referred to in subsection 13(3) of the Act.

Subsection 26(2) of the Act

4. For the purposes of subsection 26(2) of the Act, a person is deemed to cease to be employed in the public service on the day on which the person ceases to be employed by The Micronutrient Initiative.

Subsection 10(5) of the Act

5. For the purposes of subsection 10(5) of the Act, the one-year period referred to in paragraph (a) of that subsection begins on the day on which the person ceases to be employed by The Micronutrient Initiative.

Pensionable service

6. For the purposes of sections 13 and 13.01 of the Act, pensionable service includes the period of service that begins on the day on which the person ceases to be employed in the public service and that ends on the day on which they cease to be employed by The Micronutrient Initiative.

Section 13 of the Act

7. For the purposes of section 13 of the Act, the age of the person when they cease to be employed in the public service is the age of that person on the day on which they cease to be employed by The Micronutrient Initiative.

COMING INTO FORCE

Registration

8. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

On December 1, 2001, the jobs of certain employees of the International Development Research Centre (IDRC) were divested to a new employer, the Micronutrient Initiative (MI).

When the federal government transfers or divests itself of the administration of a service, the government promises to “protect” certain pension benefits of the affected employees who are transferred to the new employer as a result of such a government initiative so they are not adversely affected by the transfer.

Description

The proposed Micronutrient Initiative Divestiture Regulations defer the availability of pensions under the Public Service Superannuation Act (PSSA) for those individuals whose accrued pension benefits were left under the PSSA until such time as they cease to be employed with the MI. These Regulations do not apply to individuals who opted under the pension transfer agreement to transfer their accrued PSSA pension benefits to the pension plan of the MI.

These Regulations will protect the following benefits:

• Individuals will have the period of service with MI added to their period of PSSA service to determine their eligibility for benefits.
• Survivors will have “normal” survivor benefits under the PSSA, provided the dependant was “acquired” prior to leaving MI. Individuals who marry after terminating their Public Service employment but while still employed with MI will automatically have protection for their surviving spouse. Similarly, a survivor allowance would be payable in respect of a child born while employed with MI.
• The one year period for making a benefit option commences only on ceasing to be employed by MI.

Consultation

There have been consultations on the pension arrangements for divestiture situations with the President of the Treasury Board’s Advisory Committee on the Public Service Superannuation Act and the Micronutrient Initiative.

Implementation, enforcement and service standards

The normal legislative, regulatory and administrative compliance structures will apply, including internal audits, reports to Parliament and responses to enquiries received from Members of Parliament, affected plan members and their representatives.

Contact

Joan M. Arnold
Senior Director
Legislation Authorities and Litigation Management
Pension and Benefits Sector
Treasury Board Secretariat
Ottawa, Ontario
K1A 0R5
Telephone: 613-952-3119

Footnote a
S.C. 2003, c. 22, par. 255(z.19)

Footnote b
R.S., c. P-36

Footnote c
R.S., c. F-11

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