Statutes of Newfoundland 1994 Chapter 45

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Statutes of Newfoundland 1994

CHAPTER 45 CHAPTER 45

AN ACT TO AMEND THE PUBLIC SERVICE
PENSIONS ACT, 1991
(Assented to December 16, 1994)

Analysis

1. S.5 Amdt.
Employee contributions

2. S.6.1 Added
Rejoining pension plan

3. S.18 Amdt.
Calculation of pension

4. S.19 Amdt.
Pension upon retirement

5. S.33 Amdt.
Regulations generally

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

1991 c12 as amended

1. Subsections 5(3) and (4) of the Public Service Pensions Act, 1991 are repealed and the following substituted:

(3) Where contributions have been deducted from the salary of an employee in excess of the amount set out in subsection (2), those contributions shall be returned to the employee together with interest at the prescribed rate.

2. The Act is amended by adding immediately after section 6 the following:

Rejoining pension plan

6.1 (1) An employee who has not reached normal retirement age and, has completed 35 years of pensionable service between April 1, 1993 and the commencement of this Act may elect to

(a) rejoin the pension plan; or

(b) rejoin the pension plan and make contributions to the pension plan until the amount of the service accrued yields an annual entitlement to a pension award of 70% of the employee's average annual salary as calculated under subsection 18(1).

(2) An employee who has not reached normal retirement age who, before April 1, 1993 had completed 35 years of pensionable service may elect to rejoin the pension plan.

(3) An employee who elects to rejoin the pension plan under this section may elect to purchase the period of service from the date of his or her completion of 35 years of pensionable service to the date of his or her election to rejoin the pension plan at a cost that shall be prescribed by regulation.

(4) Subsection (1) shall be considered to have come into force on April 1, 1993.

3. (1) Section 18 of the Act is amended by adding immediately after subsection (1) the following:

(1.1) For the purposes of subsection 19(5) the pension awarded under subsection (1) shall be reduced by 6% for each year that the employee's age is less than the age at which his or her unreduced pension would start.

(2) Subsection 18(2) of the Act is repealed and the following substituted:

(2) A pension awarded under subsection (1) shall not exceed the maximum allowable benefit payable as determined under the Income Tax Act (Canada).

4. Section 19 of the Act is amended by adding immediately after subsection (4) the following:

(5) Notwithstanding subsection (2), an employee who

(a) has reached the age of 50 years and has completed not less than 30 years of pensionable service; or

(b) has reached the age of 55 years and the aggregate of that employee's age and completed years of pensionable service is not less than 85 years,

may elect to retire and receive a reduced pension calculated in accordance with subsection 18(1.1).

5. Paragraph 33(1)(g) of the Act is amended by adding immediately after the word "sections" the figure and comma "6.1,".