7 November 1994 Internal T.I. 9423157 - PENSION

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Election under 13.1 of Public Service Superannuation Act

Position TAKEN:

Amounts paid following that election taxable as pension benefit. 56(2) and (4) not applicable

Reasons FOR POSITION TAKEN:

Conditions of 56(2) and (4) not met

			November 7, 1994

	SAINT JOHN DISTRICT OFFICE	HEAD OFFICE
	Public Affairs 	Rulings Directorate
	Jacinthe LeBlanc	Ghislain Martineau
(613) 957-8953

7-942315

Subsection 13.1(1)
Public Service Superannuation Act ("PSSA")

This is in reply to your memorandum of August 30, 1994 wherein you request our opinion on the tax consequences where an election pursuant to subsection 13.1(1) of the PSSA is made by an individual in order to provide a survivor benefit to his\her surviving spouse for marriage after retirement.

Where a post retirement election is made pursuant to subsection 13.1(1) of the PSSA, the individual's pension entitlement is reduced in order that the survivor could become entitled to an immediate annual allowance (of a different periodic sum) following the individual's death.

It is our view that any amount received by the individual after the election or by the surviving spouse from the PSSA will be included in income pursuant to subparagraph 56(1)(a)(i) of the Act in each and every year of receipt.

Section Chief
Financing, Leasing and Deferred Plans Section
Financial Industries Division
Rulings Directorate