Statutes of Newfoundland and Labrador 2002 Chapter 14

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Statutes of Newfoundland and Labrador 2002

Statutes of Newfoundland and Labrador 2002 Chapter 14 CHAPTER 14

AN ACT TO AMEND THE PUBLIC SERVICE PENSIONS ACT, 1991
(Assented to December 19, 2002)

Analysis

1. S.2 Amdt.
Definitions

2. S.5 Amdt.
Employee contributions

3. S.6 Amdt.
Deductions paid to fund

4. S.21 Amdt.
Offer of re-employment before age 65

5. S.25 Amdt.
When pension payable

6. S.25.1 Added
Indexing

7. Commencement

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

SNL1991 c12
as amended

1. (1) Section 2 of the Public Service Pensions Act, 1991 is amended by adding immediately after paragraph (b.1) the following:

(b.2) "Consumer Price Index" with respect to any year, means the average for each month of that year of the Consumer Price Index for Canada, as published by Statistics Canada;

(2) Paragraph 2(m) of the Act is repealed and the following substituted:

(m) "pensioner" means a person in receipt of a pension under this Act;

2. Subsection 5(2) of the Act is repealed and the following substituted:

(2) There shall be deducted from the salary of every employee to whom the pension plan applies

(a) 8.6% of that portion of his or her salary which is the basic exemption under the Canada Pension Plan;

(b) 6.8% of that portion of his or her salary in excess of the basic exemption referred to in paragraph (a) up to and including the YMPE;

(d) other additional amounts that may be prescribed.

3. Subsection 6(2.1) of the Act is repealed and the following substituted:

(2.1) The government of the province shall pay into the pension plan payments of $60 million yearly.

4. Subsection 21(4) of the Act is repealed.

5. Subsection 25(2) of the Act is repealed and the following substituted:

(2) Pension payments shall cease at the end of the month in which the death of the pensioner or person receiving a survivor benefit occurs.

6. The Act is amended by adding immediately after section 25 the following:

Indexing

25.1 (1) On October 1 the amount of a pension or survivor benefit being paid to a person who has reached the age of 65 shall be adjusted by multiplying

(a) the annual amount of the pension or survivor benefit;

(b) 60% of the ratio that the Consumer Price Index for the previous calendar year bears to the Consumer Price Index for the calendar year immediately before the previous calendar year,

but the amount of any increase shall not exceed 1.2% of the annual pension or survivor benefit.

(2) The amount of a pension or survivor benefit being paid to a person shall not decrease by reason only of an adjustment under subsection (1).

Commencement

7. (1) Section 2 of this Act is considered to have come into force on October 1, 2002.

(2) Section 3 of this Act comes into force on January 1, 2003.