Report on the Administration of the Supplementary Retirement Benefits Act for the Fiscal Year Ended March 31, 2019

On this page

• Introduction
• Fiscal year at a glance
• Historical context
• Supplementary Retirement Benefits Account
• Membership statistics
• Funding
• Account transactions
• Account transaction statements

Introduction

The Supplementary Retirement Benefits Act (SRBA) applies 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, the Royal Canadian Mounted Police Pension Continuation Act, and Part IV of the Members of Parliament Retiring Allowances Act.

The indexing benefit of major federal public sector pension plans, including 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, is governed by the relevant pension statutes as well as by the SRBA.

Fiscal year at a glance

• Active contributors increased by 2.7% to 1,224 members (1,192 members in 2018).
• Retired members and survivors decreased by 2.6% to 1,299 members (1,333 members in 2018).
• As a result of indexation, pension benefits were increased by 2.2% in January 2019 (1.6% in January 2018).

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 average of the CPI 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 prorated 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, 2019, there were 1,224 members (1,192 in 2018) contributing to the account and 1,299 retired members and survivors (1,333 in 2018).

Figure 1 shows the number of contributors and the number of retired members and survivors from 2010 to 2019.

Figure 1 - Text version

Year	Number of contributors	Number of retired members and survivors
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
2019	1,224	1,299

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%. The government matches these contributions.

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, 2019, total receipts from contributors and the government, including interest, amounted to $12.40 million ($10.75 million in fiscal year ended March 31, 2018).

The total amount paid under the SRBA was $30.72 million ($30.03 million in fiscal year ended March 31, 2018), of which $21,307 ($22,911 in fiscal year ended March 31, 2018) was charged to the account; the remaining $30.70 million ($30.01 million in fiscal year ended March 31, 2018) 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 fiscal year was $247.63 million ($235.26 million in fiscal year ended March 31, 2018).

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

Account transaction statements