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This is an official version. Copyright © 2000: Queen's Printer, Important Information
Statutes of Newfoundland 1997 CHAPTER 35 AN ACT TO AMEND THE MEMORIAL (Assented to December 19, 1997) Analysis 1. S.2 Amdt. 2. S.11 Amdt. 3. S.12 Amdt. 4. S.15 Amdt. 5. Ss.15.1 and 15.2 Added 6. S.16 R&S 7. S.18 Amdt. 8. S.18.1 Added 9. S.19 Amdt. 10. S.20 Amdt. 11. S.21 Rep. 12. S.23 Amdt. 13. S.25 Amdt. 14. S.25.1 Added 15. Ss.26 and 27 R&S Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: RSN1990 cM-8 as amended 1. (1) Section 2 of the Memorial University Pensions Act is amended by adding immediately after paragraph (e) the following: (e.1) "infirm" means incapable of pursuing substantial gainful employment because of a mental or physical disability as certified by a qualified medical practitioner; (2) Section 2 of the Act is amended by adding immediately after paragraph (k) the following: (k.1) "prescribed" means as directed by the board in a policy directive under section 29.1; 2. Subsections 11(3) and (4) of the Act are repealed and the following substituted: (3) The account submitted under subsection (1) shall be signed by the chairperson or vice-chairperson and by the treasurer of the board, and certified by the auditor general or a person appointed under section 38 of the Memorial University Act and shall include any relevant report which that auditor may have made to the board. (4) The account kept under subsection (1) shall be audited annually. 3. (1) Subsection 12(1) of the Act is repealed and the following substituted: Contributions to fund 12. (1) Each employee shall contribute to the fund (a) 6.565% of that portion of the employee's pensionable salary which is the basic exemption under the Canada Pension Plan; (b) 4.765% of that portion of the employee's pensionable salary in excess of the basic exemption referred to in paragraph (a) up to and including the year's maximum pensionable earnings under the Canada Pension Plan; and (c) 6.565% of the portion of the employee's pensionable salary which is in excess of the year's maximum pensionable earnings under the Canada Pension Plan. (2) Subsection 12(2) of the Act is amended by deleting the words and number "of 6% has been made" and substituting the words "made under subsection (1)". (3) Subsection 12(4) of the Act is repealed. (4) Subsection (1) shall come into force on January 1, 1998. 4. (1) Subsections 15(1), (2) and (3) of the Act are repealed and the following substituted: Retirement 15. (1) An employee shall be retired (a) on his or her reaching normal retirement age; or (b) if he or she is not participating in the long term disability insurance plan of the university or a similar plan substituted for it and is unable to perform his or her duties effectively owing to physical or mental incapacity medically certified to the satisfaction of the board as likely to be permanent. (2) An employee who has reached age 60 and who is entitled to a pension benefit under subsection (5) may elect to retire before the employee's normal retirement age and upon that election shall receive an immediate pension. (3) An employee who has reached age 55 and who is entitled to a pension benefit under subsection (5) may elect to retire before reaching age 60. (2) Subsections 15(5) and (6) of the Act are repealed and the following substituted: (5) An employee who retires or ceases to be a member of the plan is entitled to a deferred pension benefit in accordance with this Act where (a) with respect to pensionable service credited before January 1, 1997, the employee has completed 5 years of pensionable service; and (b) with respect to pensionable service credited on and after January 1, 1997, the employee has completed 2 years of pensionable service. (6) Subsection (5) is considered to have come into force on January 1, 1997. 5. The Act is amended by adding immediately after section 15 the following: Deferred pensions 15.1 (1) If a person entitled to receive a pension benefit under subsection 15(5) ceases to be an employee for any reason other than that set out in paragraph 15(1)(b) before the employee reaches age 55 and has not withdrawn his or her contributions to the fund, the employee may elect to receive a deferred pension. (2) An employee who has elected to receive a deferred pension under subsection (1) shall (a) if the employee has less than 30 years pensionable service, receive a pension upon reaching age 60; or (b) if the employee has 30 years or more pensionable service, receive a pension upon reaching age 55. (3) Subject to the locking-in provisions of the Pension Benefits Act, 1997, an employee who elects to receive a pension under subsection (1) but is not in receipt of a pension may revoke the election and elect a benefit under paragraph 25(1.1)(b). (4) An employee who elects to receive a pension under subsection (1) and is not in receipt of a pension may revoke the election where the revocation is for the purpose of transferring pensionable service to a pension plan included in the Schedule to the Portability of Pensions Act or another pension plan under a reciprocal agreement under section 34. Advanced retirement 15.2 (1) An employee who has reached the age of 50 and has completed not less than 30 years of pensionable service may elect to retire before the employee reaches the age of 55. (2) An employee who has elected to retire under subsection (1) shall receive an immediate pension to be reduced by.5% for each month from the beginning of the employee's pension to the first day of the month following the employee reaching age 55. 6. Section 16 of the Act is repealed and the following substituted: To whom pension payable 16. The board shall award a pension to an employee who is entitled to a pension benefit under section 15 and has retired under that section. 7. Subsection 18(2) of the Act is repealed and the following substituted: (2) A pension awarded under this Act, whether on retirement, termination of employment or termination of the plan, shall not exceed an amount that is at an annual rate that is the lesser of (a) the product of (i) 2% for each year of service, and (ii) the average of the best 5 years of pensionable salary paid to the employee by the board or other employer set out in section 19; or (b) the maximum allowable benefit payable as determined under the Income Tax Act (Canada). 8. The Act is amended by adding immediately after section 18 the following: Rejoining pension plan 18.1 (1) An employee who has not reached normal retirement age and who is not in receipt of a pension under this Act and who has completed 35 years of pensionable service may elect to rejoin the pension plan. (2) This section is considered to have come into force on January 1, 1997. 9. Paragraph 19(1)(c) of the Act is repealed and the following substituted: (c) the period, not exceeding 2 years, during which an employee is on leave of absence and (i) during the period the employee continues to contribute to the fund based on the salary the employee would have received if he or she had rendered services during the period of leave, (ii) the employee elects within the lesser of 90 days after returning from that authorized leave and the date of termination from the employer to purchase the period of leave, and contributes to the fund an amount to be prescribed based on the salary the employee would have received if he or she had rendered services during the period of leave, or (iii) the employee elects after expiration of the period referred to in subparagraph (ii) and pays contributions to be calculated in accordance with the terms and conditions that may be prescribed; 10. Subsection 20(3) of the Act is repealed and the following substituted: (3) War service which may not be counted as pensionable service under paragraph 19(1)(f) shall be counted as pensionable service of an employee provided the employee has performed not less than 5 years of pensionable service with the Memorial University of Newfoundland before the addition of war service. 11. (1) Section 21 of the Act is repealed. (2) This section is considered to have come into force on January 1, 1990. 12. (1) Subsection 23(1) of the Act is repealed and the following substituted: Survivor's allowance 23. (1) Where an employee (a) dies while in receipt of a pension; (b) is entitled to a pension on retirement under section 15 and dies after retirement but before receiving a pension; or (c) is entitled to a pension on retirement under section 15 and dies before retirement, the board shall award to the surviving spouse an allowance equal to 60% of the pension being paid to the employee or to which the employee is entitled at the date of death, without actuarial reduction, and on the death of the surviving spouse an allowance which the surviving spouse was receiving at the date of death, if the surviving spouse leaves a child or children under age 18, shall be paid by the board to the guardian of the child or children to be expended at the direction of the board for the support, maintenance and education of each child until the child reaches age 18, and, where there are 2 or more children, each child shall share equally in the benefits to be derived from the allowance. (2) Subsection 23(2) of the Act is amended by adding a comma and the words "or is infirm" immediately after the word "institution". (3) Subsection 23(3) of the Act is repealed. (4) Subsection (1) is considered to have come into force on January 1, 1997 and subsection (3) is considered to have come into force on April 1, 1993. 13. (1) Subsection 25(1) of the Act is repealed and the following substituted: Refund 25. (1) Where an employee ceases to be an employee before becoming entitled to a pension under this Act, the board shall refund to the employee, within 12 months of the person ceasing to be an employee, or, upon ceasing to be an employee, at the person's own request, the amount of the employee's contributions to the fund together with interest at the prescribed rate. (1.1) Where an employee ceases to be an employee after becoming entitled to a pension under this Act, the employee shall elect (a) a deferred pension; or (b) subject to the locking-in provisions of the Pension Benefits Act, 1997, (i) a return of the employee's contributions made to the fund before January 1, 1997, together with interest at the prescribed rate, and transfer of the commuted value of the pension benefit accrued after December 31, 1996 in accordance with subsection (1.2), or (ii) a transfer of the commuted value of the employee's deferred pension benefit in accordance with subsection (1.2). (1.2) A transfer under paragraph 25(1.1)(b) shall be to a pension vehicle or other retirement arrangement that may be prescribed, provided that the employee meets the terms and conditions required under these arrangements. (2) Subsection 25(3) of the Act is repealed and the following substituted: (3) A person who has ceased to be an employee and who has received a refund under subsection (1) may, if the person is re-employed by the board and if the board approves, be credited with the prior pensionable service that the employee may elect to purchase by paying an amount to be calculated in accordance with the terms and conditions that may be prescribed. (4) For the purpose of this section, "prior pensionable service" means all pensionable service under the pension plan. 14. The Act is further amended by adding the following as section 25.1: Residual amounts 25.1 Where, upon the death of an employee in receipt of a pension, an allowance is paid to an eligible dependent and that dependent dies or ceases to be entitled to the allowance, any amount by which the contribution made by the deceased employee, plus interest at the prescribed rate, credited to the date of retirement, exceeds the aggregate of all amounts paid on behalf of the deceased employee under this Act shall be paid to the deceased employee's estate. 15. Sections 26 and 27 of the Act are repealed and the following substituted: Repayment of contributions to spouse and children 26. Where an employee dies before becoming entitled to a pension under this Act, the board shall pay to a surviving spouse the amount the employee has contributed to the fund, together with interest at the prescribed rate, and, where the employee does not leave a surviving spouse but leaves a child or children under age 18, the board shall pay the amount to the guardian of the child or children, to be expended at the direction of the board, for the support, maintenance and education of the child or children until the child or children reach age 18 and where there are 2 or more children each child shall share equally in the benefits derived from the payment. Repayment of contributions of deceased employees 27. (1) Where an employee dies before becoming entitled to a pension under this Act and leaves neither a spouse nor a child, the board shall pay to the employee's executor or administrator the amount the employee has contributed to the fund together with interest at the prescribed rate. (2) When an employee dies and leaves neither a spouse nor a child, the board shall pay to the employee's executor or administrator the following benefit: (a) where the employee was in receipt of a pension, an amount equal to the amount the employee has contributed to the fund, with interest at the prescribed rate, credited to the date of retirement, less the total of pension payments received by the employee; or (b) where the employee was entitled to a pension on retirement under this Act and dies before receiving a pension, the following amounts: (i) in respect of pensionable service before January 1, 1997, the employee's contributions together with interest at the prescribed rate, and (ii) in respect of pensionable service on and after January 1, 1997, the commuted value of the pension. ©Earl G. Tucker, Queen's Printer |