Report on the Administration of the Supplementary Retirement Benefits Act for the Fiscal Year Ended March 31, 2018

From Treasury Board of Canada Secretariat

The Supplementary Retirement Benefits Act (SRBA) applies primarily to pension benefits payable to federal judges under the Judges Act, as well as to pension benefits payable under other statutes listed in Schedule I of the SRBA, such as the Diplomatic Service (Special) Superannuation Act, the Lieutenant Governors Superannuation Act, the Defence Services Pension Continuation Act of the Canadian Armed Forces and the Royal Canadian Mounted Police Pension Continuation Act.

The SRBA does not apply to pension benefits payable under the major federal public service pension plans governed by the Public Service Superannuation Act, the Canadian Forces Superannuation Act, the Royal Canadian Mounted Police Superannuation Act and the Members of Parliament Retiring Allowances Act.

Year at a glance

Active contributors increased by 3.0% to 1,192 members (1,157 members in 2017).
Retired members and survivors decreased by 1.3% to 1,333 members (1,350 members in 2017).
As a result of indexation, pension benefits were increased by 1.6% in January 2018 (1.3% in January 2017).

Historical context

The SRBA provides supplementary benefits for recipients of pensions or allowances payable under the acts or regulations listed in Schedule I of the SRBA.

Effective January 1, 1974, an annual increase in pensions reflecting the full increase in the cost of living was permitted, payable starting in January of each year. This increase is based on the percentage increase in the average of the Consumer Price Index (CPI) for the 12 months ended on the preceding September 30, over the CPI average for the 12 months ended a year earlier. Since 1982, the legislation has required that the increase payable in the first year after a person retires be pro-rated to the number of complete months of retirement in the previous year.

In 1992, the SRBA was amended to reflect changes being made to the Public Service Superannuation Act, the Canadian Forces Superannuation Act, the Royal Canadian Mounted Police Superannuation Act and the Members of Parliament Retiring Allowances Act and no longer applied to pension benefits payable under these statutes. Consequently, these statutes were amended to incorporate the authority to provide increases in their respective pensions as if they were determined under the SRBA.

Supplementary Retirement Benefits Account

The SRBA establishes an account known as the Supplementary Retirement Benefits Account (the account) in the Public Accounts of Canada. Plan members who have not yet retired, except the Governor General, contribute to the account. The government matches these contributions.

Before January 1, 1974, all supplementary benefits were charged to the account. Since that date, however, the benefits paid to former contributors have been charged to the account only until they equal the total amount credited to the account. Supplementary benefits paid in excess of that total are charged to the Consolidated Revenue Fund.

Under the 1992 amendments mentioned in the previous section, the appropriate portions of the account were transferred to the superannuation accounts established under the Public Service Superannuation Act, the Canadian Forces Superannuation Act, the Royal Canadian Mounted Police Superannuation Act and the Members of Parliament Retiring Allowances Act. These transfers have greatly reduced the size of the account.

Membership statistics

As at March 31, 2018 , there were 1,192 members (1,157 members in 2017) contributing to the account and 1,333 retired members and survivors (1,350 members in 2017).

Figure 1 shows the number of contributors relative to the number of retired members and survivors from 2009 to 2018.

Contributors, and retired members and survivors from 2009 to 2018. Text version below: — **Figure 1: Contributors, and retired members and survivors from 2009 to 2018**

Figure 1. Contributors, and retired members and survivors from 2009 to 2018
Year	Number of contributors	Number of retired members and survivors
2009	1,093	1,750
2010	1,119	1,739
2011	1,146	1,642
2012	1,140	1,625
2013	1,132	1,582
2014	1,147	1,534
2015	1,171	1,410
2016	1,169	1,371
2017	1,157	1,350
2018	1,192	1,333

Funding

Between April 1, 1970, and December 31, 1976, members contributed 0.5% of their salary. Effective January 1, 1977, this rate was increased to 1%.

Interest on the account is payable at the end of each quarter. It is calculated monthly on the minimum balance in the account at an interest rate that represents the yield on outstanding Government of Canada bonds that have a term to maturity of 5 years, reduced by 0.125%.

Account transactions

In fiscal year ended March 31, 2018, total receipts from contributors and the government, including interest, amounted to $10.75 million ($8.69 million in fiscal year ended March 31, 2017).

The total amount paid under the SRBA was $30.03 million ($30.33 million in fiscal year ended March 31, 2017), of which $22,911 ($20,721 in fiscal year ended March 31, 2017) was charged to the account; the remaining $30.01 million ($30.31 million in fiscal year ended March 31, 2017) was charged to the Consolidated Revenue Fund, in accordance with subsection 8(2) of the SRBA.

The balance in the account at the end of the year was $235.26 million ($224.53 million in fiscal year ended March 31, 2017).

Details of the transactions in the account during the fiscal year appear in the “Account transaction statements” section.

Account transaction statements

Supplementary Retirement Benefits Account statement
Fiscal year ended March 31, 2018 ($ thousands)^{table 1 note 1}
Receipts
	2018	2017
Table 1 Notes Table 1 Note 1 Due to rounding, figures differ slightly from those in the Public Accounts of Canada. Return to table 1 note 1 referrer Table 1 Note 2 This information does not reflect exactly the information presented in the Public Accounts of Canada. Annuities and charges to the Consolidated Revenue Fund are supplementary information included to reflect all payments made under the authority of the SRBA. The amounts charged to the Consolidated Revenue Fund are not charged to the Supplementary Retirement Benefits Account due to an exclusion under subsection 8(2) of the SRBA. The amount of charges to the Consolidated Revenue Fund reported in this statement is calculated based on financial information provided directly by several organizations responsible for processing SRBA benefit payments, such as the Registrar of the Supreme Court of Canada, the Office of the Commissioner for Federal Judicial Affairs Canada, Canadian Heritage, National Defence and the Senate of Canada. Return to table 1 note 2 referrer
Supplementary Retirement Benefits Account, opening balance (A)	224,530	215,856
Contributions
Members	3,695	3,596
Government	3,710	3,583
Interest	3,344	1,515
Total receipts (B)	10,749	8,694
Payments
Annuities ^{table 1 note 2}	30,028	30,326
Less charges to Consolidated Revenue Fund in accordance with subsection 8(2) of the SRBA ^{table 1 note 2}	30,005	30,306
Net payments (C)	23	20
Increase (B – C = D)	10,726	8,674
Supplementary Retirement Benefits Account, closing balance (A + D)	235,256	224,530

Supplementary Retirement Benefits Account statement
Details of receipts and payments for fiscal year ended March 31, 2018 ($ thousands)^{table 2 note 1}
Receipts
	Judges	Others	Total
Table 2 Notes Table 2 Note 1 Due to rounding, figures differ slightly from those in the Public Accounts of Canada. Return to table 2 note 1 referrer Table 2 Note 2 In addition to these charges to the account, $30.01 million was charged to the Consolidated Revenue Fund under subsection 8(2) of the SRBA, as reported in the previous statement. The information in this statement is similar to that reported in the Public Accounts of Canada. Return to table 2 note 2 referrer
Supplementary Retirement Benefits Account, opening balance (A)	223,714	816	224,530
Contributions
Members	3,657	38	3,695
Government	3,657	53	3,710
Interest	3,331	13	3,344
Total receipts (B)	10,645	104	10,749
Payments
Annuities ^{table 2 note 2}	0	23	23
Return of contributions	0	0	0
Total Payments (C)	0	23	23
Increase (B – C = D)	10,645	81	10,726
Supplementary Retirement Benefits Account, closing balance (A + D)	234,359	897	235,256

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Date modified:: 2022-03-31

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