Statutes of Newfoundland 1999 Chapter 35

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Statutes of Newfoundland 1999

CHAPTER 35

AN ACT TO AMEND THE TEACHERS' PENSIONS ACT
(Assented to December 14, 1999)

Analysis

1. S.22 Amdt.
Calculation of pension

2. Commencement

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

SN1991 c17

1. (1) Subsection 22(1) of the Teachers' Pensions Act is repealed and the following substituted:

Calculation of pension

22. (1) A pension awarded to a teacher is the sum of

(a) 1.4% of the lesser of the average of the

(i) teacher's highest 5 years of pensionable annual salary, and

(ii) year's maximum pensionable earnings in the 3 years immediately before retirement; plus

(b) 2% of the excess of the average of the teacher's highest 5 years of pensionable annual salary over the average of the year's maximum pensionable earnings in the 3 years immediately before retirement,

multiplied by the number of years and 1/10 years of pensionable service credited after March 31, 1967.

(1.1) A bridge benefit shall be paid to a teacher who retires before attaining the age of 65 and that bridge benefit shall be, subject to limitations imposed under the Income Tax Act (Canada), equal to 0.6% of the lesser of the average of the teacher's highest 5 year's pensionable annual salary and the average of the year's maximum pensionable earnings in the 3 years immediately before retirement multiplied by the number of years and 1/10 years of pensionable service credited after March 31, 1967.

(1.2) A bridge benefit paid under subsection (1.1) shall cease on the last day of the month in which the teacher who receives that benefit attains the age of 65 years.

(2) Subsection 22(6) of the Act is repealed and the following substituted:

(6) Notwithstanding subsection (1), a teacher's accumulated percentage of pensionable service earned before the commencement of this section is protected by this Act except that the amount that is 0.6% of the lesser of the average of the teacher's highest 5 years of pensionable annual salary and the average of the years maximum pensionable earnings in the 3 years immediately before retirement multiplied by the number of years and 1/10 years of pensionable service credited after March 31, 1967 shall, subject to the limitations imposed under the Income Tax Act (Canada), be treated as a bridge benefit that ceases upon attaining 65 years of age.

(6.1) Notwithstanding subsections (1.1) and (6), the amount equal to the bridge benefit calculated under those subsections shall continue after a teacher has attained the age of 65 years only in respect of years and 1/10 years of pensionable service credited after March 31, 1967, exceeding 35 years or while a teacher was a member of a religious order.

(6.2) In this section, the words "year's maximum pensionable earnings" have the same meaning as under the Canada Pension Plan established under the Canada Pension Plan Act (Canada).

(3) Subsections 22(8), (9), (10) and (11) of the Act are repealed.

Commencement

2. Section 1 is considered to have come into force on September 1, 1998.