Valuation Day Definition Clarified

Summary#

These final regulations amend the Public Service Superannuation Regulations to remove an old, inoperable definition of the term “valuation day” and confirm the definition that has applied since 2016. They came into force on October 11, 2024 and were published in the Canada Gazette on October 23, 2024.

What it does#

• Replaces the definition of “valuation day” in subsection 83(1) with a clearer two-part rule:
  • it is April 30, 1997 if a contributor exercised an option for a transfer value on or after June 20, 1996 and before April 30, 1997; or
  • in all other cases, it is the day the transfer value is actually transferred.
• Repeals subsection 83(2) of the Public Service Superannuation Regulations.
• Confirms the regulation is an administrative fix to remove a leftover pre-2016 definition so only the post-2016 interpretation applies.
• The changes are made under the Public Service Superannuation Act and took effect on the day the regulations were registered (October 11, 2024).

Who's affected#

• Members of the public service pension plan who leave the plan but are not yet entitled to a monthly pension and who choose to take a lump-sum transfer value (this typically applies to those with at least two years of pensionable service).
• The plan’s administrator, Public Services and Procurement Canada, and the plan’s advisory group, the Public Service Pension Advisory Committee, which was consulted and supported the change.
• The change is mostly a clarification. It does not introduce a new payment method or new calculation steps.

Why it matters#

• The “valuation day” determines the date used to calculate a lump-sum transfer value. That date can materially change the amount because market and interest conditions vary over time.
• By removing an outdated, inoperable definition, the regulations reduce confusion and make clear which valuation date applies when a transfer value is calculated.
• According to the regulatory note, the change has no expected costs and does not alter benefits or administrative procedures — it simply provides certainty for plan members about how their transfer value will be determined.