17. Despite the fourth paragraph of section 16, an employee who has availed himself or herself of a provision permitting the transfer of the actuarial value of the benefits acquired under the plan pursuant to a provision made under section 23 of the Act or section 10.1 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) as it read on 31 December 2000 is entitled to have credited or counted, in whole or in part, the years or parts of a year of service that had been credited or counted on his or her behalf before the date of the transfer. The employee’s former pension plan is the plan designated in Schedule I of which the employee was a member before this Order in Council or, as the case may be, Order in Council 245-92 dated 26 February 1992, as it read on 16 September 2003, applied for the first time to the employee.
To have the years or parts of a year of service credited or counted, an employee must pay, on the date on which the employee exercises that right, an amount equal to the amount that was transferred and, where applicable, reimbursed to the employee increased by interest compounded annually, at the rates in Schedule VII to the Act, from the date of the transfer and, where applicable, the reimbursement until the date of payment to Retraite Québec.
Despite the second paragraph, the employee may pay part of the amount required to have the years or parts of a year of service credited. In that case, the employee must pay an amount at least equal to the amount that was transferred to the employee and those years and parts of a year of service are credited to the employee or counted commencing with the most recent service. Where applicable, the years and parts of a year of service that cannot be credited or counted for the purposes of the plan are added, solely for pension eligibility purposes, to the years and parts of a year of service credited to the employee or counted on the employee’s behalf under the plan.
Any amount paid to Retraite Québec pursuant to the second or third paragraph shall be paid into the Consolidated Revenue Fund.
The first, second and third paragraphs apply, with the necessary modifications, only to the extent permitted under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).
O.C. 960-2003, s. 17; O.C. 725-2004, s. 2; O.C. 482-2005, s. 4.