This is an official version.

 

Copyright © 2010: Queen’s Printer,
St. John's, Newfoundland and Labrador, Canada

Important Information
(Includes details about the availability of printed and electronic versions of the Statutes.)

 

Table of Public Statutes

Main Site

How current is this statute?

 
 

Responsible Department

 
 

RSNL1990 CHAPTER G-6

GOVERNMENT MONEY PURCHASE PENSION PLAN ACT

Amended:

1993 c18 s1; 1994 c11 s4; 1994 cP-4.1; 1995 c24 s1; 1996 cR-10.1 s34; 1997 c13 s26; 2001 c22 ss5-8;2001 cN-3.1 s2; 2006 c40 s21; 2009 c43

CHAPTER G-6

AN ACT RESPECTING A PENSION PLAN FOR CERTAIN EMPLOYEES IN THE PROVINCE

Analysis



Short title

††††††† 1. This Act may be cited as the Government Money Purchase Pension Plan Act.

1990 c12 s1

Back to Top

Definitions

††††††† 2. In this Act

†††††††††††† (a) "cohabiting partner"

††††††††††††††††††††† (i) in relation to a member who has a spouse, means a person who is not the spouse of the member who has cohabited continuously with the member in a conjugal relationship for not less than 3 years, or

†††††††††††††††††††† (ii) in relation to a member who does not have a spouse, means a person who has cohabited continuously with the member in a conjugal relationship for not less than one year

and is cohabiting or has cohabited with the member in the preceding year;

†††††††††††† (b) "custodian" means the trustee or insurer that the minister may appoint to administer the fund;

†††††††††††† (c) "earnings" means the amount of gross normal remuneration received by the employee but excludes overtime and other remuneration which is not part of the basic remuneration unless those amounts are specifically included as part of a collective agreement;

†††††††††††† (d) "effective date" means April 1, 1989 or a later date designated by the minister in relation to an employer from which the employer is considered to have joined the plan;

†††††††††††† (e) "employee" means an employee of an employer who is not eligible to participate in another government sponsored pension plan of that employer, but does not include students or casual relief workers;

††††††††††††† (f) "employer" means the government of the province or

††††††††††††††††††††† (i) a crown corporation, agency or board of the province,

†††††††††††††††††††† (ii) a non-profit public organization which has close affiliations with the province whose primary function is to provide public services which would normally be provided by the province if the organization were not to exist, or

††††††††††††††††††† (iii) an organization that is a participating employer under the Public Service Pensions Act, 1991

where the entity referred to in subparagraph (i), (ii) or (iii) has applied to have the plan extended to its designated employees and that application has been approved by the minister;

†††††††††††† (g) "fund" means the investment fund referred to in section 12;

†††††††††††† (h) "inactive member" means a person who has ceased to be an employee but has not withdrawn his or her contributions from the plan;

††††††††††††† (i) "member" means an employee or an inactive member;

††††††††††††† (j) "minister" means the minister appointed under the Executive Council Act to administer this Act who shall act as trustee for the plan;

†††††††††††† (k) "plan" means the pension plan for employees as set out in this Act, which shall be named the "Government Money Purchase Pension Plan";

††††††††††††† (l) "principal beneficiary" means the spouse of a member, or where a member has a cohabiting partner, the member's cohabiting partner;

††††††††††† (m) "service" means service with an employer including those periods when the employee is on lay-off or other inactive status but has a right of recall or call back by agreement with the employer; and

†††††††††††† (n) "spouse" means a person who

††††††††††††††††††††† (i) is married to the member,

†††††††††††††††††††† (ii) is married to the member by a marriage that is voidable and has not been voided by a judgment of nullity, or

††††††††††††††††††† (iii) has gone through a form of marriage with the member, in good faith, that is void and is cohabiting or has cohabited with the member within the preceding year.

2009 c43 s1

Back to Top

Application

††††††† 3. This Act applies to

†††††††††††† (a) every employee hired after the effective date;

†††††††††††† (b) every employee hired before the effective date, who opts to participate in the plan from the effective date; and

†††††††††††† (c) every employee hired before the effective date who opts to participate in the plan from a date after the effective date.

1990 c12 s3

Back to Top

Deduction amounts

††††††† 4. (1)†Each employee who participates in the plan shall contribute to it an amount equal to 5% of the employee's earnings or a greater amount that may be established by a directive of the minister.

†††††††††††† (2) An employer shall contribute to the fund an amount equal to the contributions of each employee under this Act.

†††††††††††† (3) All contributions made under this section shall be paid to the custodian before the end of the calendar month immediately following the month during which the contributions were made.

†††††††††††† (4) The government of the province may reduce its contribution under subsection (2), either for all its employees or for a group of its employees, by an amount that the Lieutenant-Governor in Council prescribes, but the amount of the reduction shall not exceed 4.5% of the earnings of the government's employees to whom the reduction applies.

†††††††††††† (5) An employer that is not the government of the province shall, where directed to do so by order of the Lieutenant-Governor in Council, reduce its contribution under subsection (2), either for all its employees or for a group of its employees, by an amount that the Lieutenant-Governor in Council prescribes, but the amount of the reduction shall not exceed 4.5% of the earnings of the employees to whom the reduction applies.

2009 c43 s2

Back to Top

Leave without pay

††††† 4.1 (1)†An employee who is on authorized leave without pay may make contributions in respect of that period of leave.

†††††††††††† (2) Notwithstanding subsection (1), the types of authorized leave without pay for which contributions may be made and the terms and conditions for determining the amount of contributions shall be established by a directive of the minister.

†††††††††††† (3) The employer who authorized the period of leave without pay shall pay an amount equal to the employeeís contribution under subsection (1).

†††††††††††† (4) The crediting of periods of leave without pay shall be subject to the limitations of the Income Tax Act ( Canada ).

2009 c43 s3

Back to Top

Pre retirement benefits

††††††† 5. (1)†An employee who stops being an employee and who has completed less than 2 years of service or another period specified for vesting and locking in under the Pension Benefits Act, 1997 may elect to receive a refund of his or her contributions plus the accumulated earnings on those contributions.

†††††††††††† (2) An employee who stops being an employee and who has completed more than 2 years of service or another period specified for vesting and locking in under the Pension Benefits Act, 1997 may elect to transfer the value of the funds that have accumulated to his or her credit in the fund to a locked in retirement account, another registered pension plan, or another retirement savings arrangement approved by the Superintendent of Pensions appointed under the Pensions Benefits Act, 1997 .

†††††††††††† (3) Upon the death of a member who has completed less than 2 years of service or another period specified for vesting and locking in under the Pension Benefits Act , 1997 the principal beneficiary or designated beneficiary shall receive a cash payment of the amount that has accumulated to the deceased memberís credit.

2009 c43 s4

Back to Top

Additional contributions

††††††† 6. Additional voluntary contributions may be made to the fund by an employee.

1990 c12 s6

Back to Top

Vesting and locking-in

††††††† 7. Where an employee has participated in the plan for 2 years or in accordance with the vesting and locking-in provisions of the Pension Benefits Act, 1997 , all contributions made under sections 4 and 4.1, together with the accumulated earnings on those contributions, shall be permanently vested and locked in until the employee's retirement, at which time the amount standing to his or her credit in the fund may be transferred to a retirement arrangement approved by the Superintendent of Pensions appointed under the Pension Benefits Act, 1997.

2009 c43 s5

Back to Top

Retirement benefits

††††††† 8. (1)†Where an employee whose right to a pension has vested under section 7 stops being employed and later retires,

†††††††††††† (a) at the end of the month in which he or she reaches the age of 65 years;

†††††††††††† (b) at any time during the 10 year period immediately preceding the retirement date referred to in paragraph (a); or

†††††††††††† (c) at any time following the retirement date referred to in paragraph (a) but, in any event, no later than the end of the year in which he or she reaches the age at which a pension is required to commence being paid under the provisions of the Income Tax Act (Canada),

he or she is entitled to receive an immediate pension which can be purchased with the amount that has accumulated to his or her credit in the fund at that time.

†††††††††††† (2) An employee with a principal beneficiary shall receive a pension in the form specified by Article VI of Schedule A with a survivor benefit of at least 60%, payable upon his or her death to the principal beneficiary during the principal beneficiaryís lifetime.

†††††††††††† (3) Where the employee does not have a principal beneficiary, the employee may designate another person as a beneficiary.

2009 c43 s6

Back to Top

Rep. by 2009 c43 s7

††††††† 9. [Rep. by 2009 c43 s7]

2009 c43 s7

Back to Top

Plan is portable

††††† 10. The benefits and service credits of an employee who transfers between employers continue to accrue under this Act.

1990 c12 s10; 2009 c43 s8

Back to Top

Reciprocity

††††† 11. (1)†The minister may enter into a reciprocal pension transfer agreement with an employer that provides for the transfer of funds in respect of an employee.

†††††††††††† (2) The amount of a transfer from the plan under this Act shall be determined by the reciprocal agreement but the amount transferred shall not be more or less than the amount standing to the credit of the employee in the fund.

1990 c12 s11

Back to Top

Ministerial directive

†† 11.1 The minister may issue directives

†††††††††††† (a) amending the Schedules to this Act;

†††††††††††† (b) designating a class of persons to be included as employees for the purpose of this Act;

†††††††††††† (c) excluding a class of persons from the application of this Act;

††††††††† (c.1) determining the types of authorized leave without pay for which contributions may be made;

††††††††† (c.2) determining the amount of contributions required to be paid where an employee was on authorized leave without pay; and

†††††††††††† (d) generally, for the purpose of this Act.

1997 c13 s26; 2009 c43 s9

Back to Top

Investments

††††† 12. All contributions made under this Act shall be deposited in a fund which shall be invested in accordance with the Pension Benefits Act.

1990 c12 s12

Back to Top

Committee

†† 12.1 The Lieutenant-Governor in Council may appoint a committee to assist the minister in the administration of this Act and may prescribe the duties of the committee and designate the matters respecting which the committee may make recommendations to the minister.

2009 c43 s10

Back to Top

Rep. by 1996 cR-10.1 s34

††††† 13. [Rep. by 1996 cR-10.1 s34]

1996 cR-10.1 s34

Back to Top

Money Purchase Pension Plan

††††† 14. (1)†The plan entitled the "Money Purchase Pension Plan For Part-Time Employees of The Province of Newfoundland And Labrador and For Certain Employees of Other Participating Employers" which is contained in Schedule A forms part of this Act.

†††††††††††† (2) Where this Act conflicts with the Pension Benefits Act, the latter Act applies.

†††††††††††† (3) Where this Act conflicts with the Income Tax Act ( Canada ), the latter Act applies.

1990 c12 s14; 2001 cN-3.1 s2

Back to Top

Schedule A

Money Purchase Pension Plan For Part-Time Employees of The Province of Newfoundland And Labrador And For Certain Employees of Other Employers

ARTICLE I
Definitions

†††††††††††† The following terms wherever used in this instrument shall, for the purposes of it, unless the context otherwise requires have the meaning set out below:

††††††† 1. "Administrator" means the person who, on the recommendation of the Committee, the Minister may from time to time appoint to administer the Plan.

††††††† 2. "Cohabiting Partner",

†††††††††††† (a) in relation to a Member who has a Spouse, means a person who is not the Spouse of the Member who has cohabited continuously with the Member in a conjugal relationship for not less than 3 years, or

†††††††††††† (b) in relation to a Member who does not have a Spouse, means a person who has cohabited continuously with the Member in a conjugal relationship for not less than one year,

and is cohabiting or has cohabited with the Member within the preceding year.

††††††† 3. "Committee" means the Government Money Purchase Pension Plan (GMPP) Committee appointed by the province.

††††††† 4. "Custodian" means the Trustee or Insurer that the Minister may from time to time appoint to administer the Fund.

††††††† 5. "Designated Beneficiary" means a person so designated by an Employee in accordance with Article XI (Designated Beneficiaries).

††††††† 6. "Earnings" means the amount of gross normal remuneration received by the Employee but excludes overtime and other remuneration which is not part of the basic remuneration unless those amounts are specifically included as part of a collective agreement.

††††††† 7. "Effective Date" means April 1, 1989 or the date designated by the Minister in relation to a particular Employer from which the Employer is deemed to have joined the Plan.

††††††† 8. "Employee" means an Employee of an Employer who is not eligible to participate in another government sponsored pension plan of that Employer, but excludes students and casual relief workers.

††††††† 9. "Employer" means the government of the province or:

†††††††††††† (a) a Crown Corporation, Agency, or Board of the province;

†††††††††††† (b) a non-profit public organization which has close affiliations with the province whose primary function is to provide public services which would normally be provided by the province if the organization were not to exist; or

†††††††††††† (c) an organization that is a participating employer under the provisions of the Public Service Pensions Act, 1991 ;

where the entity referred to in paragraph (a), (b) or (c) has applied to have the plan extended to its designated employees and that application has been approved by the minister.

††††† 10 . "Fund" means the investment fund referred to in section 12 of the Government Money Purchase Pension Plan Act.

††††† 11. "Inactive Member" means a person who has ceased to be an Employee but has not withdrawn his or her contributions from the Plan.

††††† 12. "Income Tax Act" means the Income Tax Act, R.S.C. 1985, c.1 (5th Supp), as amended and the regulations under it.

††††† 13. "Insurer" means a life insurance company or other entity authorized to transact annuity business in Canada .

††††† 14. "Interest" means the investment income resulting from investment of the Memberís Account as determined in accordance with Article XIV (Custodian and Accounts).

††††† 15 . "Investment Counsel" means a person or organization that the Committee may from time to time appoint for purposes of the Plan whose function is to give advice to the Committee on the investment of the Fund.

††††† 16 . "Member" means an Employee or Inactive Member.

††††† 17. "Memberís Account" means the aggregate of contributions made in accordance with Sections 1, 2, 3 and 5 of Article III . Such account shall be adjusted not less frequently than annually to reflect a proportionate share of all interest and other income credited to the Fund, all administrative expenses borne by the Fund and all increases and decreases in the value of the properties comprising the Fund applicable to the types of investments being utilized for such contributions, as determined by the Administrator. The accumulated value of each Member Account at any valuation date shall be its proportionate share of the total market value of the Fund at such valuation date. Each Member Accountís proportionate share of the Fund shall be determined on the basis of the sum of its accumulated value at the immediately preceding valuation date and all contributions made to such Memberís Account subsequent to that preceding valuation date.

††††† 18. "Minister" means the Minister of Finance for the Province of Newfoundland and Labrador .

††††† 19. "Pension Adjustment" means the aggregate of the Memberís Pension Credits for the calendar year, under the Plan of the Employer in which the Member participates.

††††† 20 . "Pension Benefits Act" means the Pension Benefits Act, 1997 , SNL1996 cP-4.01, as amended and the regulations thereunder.

††††† 21 . "Pension Credit" in respect of a defined contribution provision or plan means the total of all contributions made under the provision or plan in the year by the Employee and by the Employer.

††††† 22 . "Plan" means the pension plan for Employees as set out in this instrument, which shall be named the "Government Money Purchase Pension Plan."

††††† 23. "Plan Year" means the period from the Effective Date to the next following December 31st and from each January 1st to the next following December 31st in each subsequent year.

††††† 24 . "Principal Beneficiary" means the Spouse of a Member, or where the Member has a Cohabiting Partner, the Memberís Cohabiting Partner.

††††† 25. "Service" means service with an Employer including those periods when the Employee is on lay-off or other inactive status but has rights of recall or call back by agreement with the Employer.

††††† 26. "Spouse" means, except for the purposes of Article XIII, a person, who

†††††††††††† (a) is married to the Employee;

†††††††††††† (b) is married to the Employee by a marriage that is voidable and has not been voided by a judgment of nullity; or

†††††††††††† (c) has gone through a form of a marriage with the Employee, in good faith, that is void and is cohabiting or has cohabited with the Employee within the preceding year.

††††† 27. "YMPE" means the yearís maximum pensionable earnings as defined under the Canada Pension Plan.

ARTICLE II
Eligibility and Membership

††††††† 1. Eligibility and Membership

†††††††††††† All Employees hired after the Effective Date must join the Plan on their date of employment.

†††††††††††† All Employees hired before the Effective Date may join the Plan from the Effective Date or at a later date.

†††††††††††† The Employees shall complete those forms that are required by the Administrator.

††††††† 2. Explanation to Members

†††††††††††† The Administrator shall provide a written description of the Plan to each Employer for distribution to every person who is eligible to become a Member on or before the date of eligibility. The description shall explain the terms and conditions of the Plan and amendments to it as are applicable to the Member, and shall set out the rights and duties of the Employee with reference to the benefits available and the contributions payable under the Plan.

†††††††††††† The Administrator shall, at the written request of the Member and at least annually, provide each Member with a written benefit statement as required by applicable provincial legislation.

†††††††††††† Within 60 days of an amendment to the Plan, the Administrator shall provide a similar description of the amendment to each Employer for distribution to each Member affected by the amendment.

†††††††††††† Upon termination of employment, the Employer shall request the Administrator to provide the Member with a written statement showing the benefits to which he or she is entitled.

†††††††††††† Employers are to distribute all information concerning the Plan to Members within the timeframes referenced under the Pension Benefits Act.

ARTICLE III
Contributions

††††††† 1. Employee Contributions

†††††††††††† (a) Each Employee shall contribute to the Plan during a period of membership an amount equal to five percent of Earnings or such greater amount that may be established by a directive of the Minister.

†††††††††††† (b) The contributions shall be deducted from the Earnings by the Employer.

††††††† 2. Employer Contributions

†††††††††††† The Employer shall contribute to the Plan on behalf of each Employee an amount equal to the Employeeís contributions or such other amount that may be established by a directive of the Minister.

††††††† 3. Contributions for Authorized Leave without Pay

†††††††††††† An Employee who commences an authorized leave of absence without pay may be permitted to make contributions in respect of that period of leave under terms and conditions that may be established by a directive of the Minister. The Employer shall be required to pay an amount equal to the Employeeís contributions under this Section. All contributions under this Section are subject to limitations contained in the Income Tax Act.

††††††† 4. Payment to the Custodian

†††††††††††† The Employer shall pay to the Custodian all contributions made by or on behalf of Employees under this Article, within the calendar month following the month during which the contributions were made.

††††††† 5. Voluntary Contributions

†††††††††††† Subject to the limitations of Section 6 of this Article, the Employee may make additional voluntary contributions to the Plan, which are not required to be matched by the Employer.

††††††† 6. Limitations on Contributions

†††††††††††† Notwithstanding Sections 1, 2, 3 and 5 of this Article, contributions made under those Sections may be returned to the person who made the contribution where the contribution is returned to avoid the revocation of the registration of the Plan under the Income Tax Act.

†††††††††††† To avoid the revocation of the registration of the Plan under the Income Tax Act:

†††††††††††† (a) for an Employee and an Employer, the total amount of the Employeeís Pension Credit for the year in respect of the Employer under the Plan shall not exceed the lesser of

††††††††††††††††††††† (i) the money purchase limit for the year, and

†††††††††††††††††††† (ii) 18% of the Employee = s remuneration from the Employer for the year; or

†††††††††††† (b) for an Employee, the total amount of the Employee = s Pension Credit for the year in respect of an Employer under the Plan shall not exceed the money purchase limit for the year; and

†††††††††††† (c) no contributions may be made by an Employee after the end of the calendar year in which the Employee reaches the age at which a pension benefit is required to begin under the Income Tax Act.

ARTICLE IV
Retirement Dates and Conditions

††††††† 1. Normal Retirement

†††††††††††† (a) The normal retirement date of a Member shall be the first day of the month following attainment of age sixty-five provided the Member has completed two years of Service.

†††††††††††† (b) The pension payable to a Member on normal retirement shall be determined in accordance with Article V (Retirement Benefits).

††††††† 2. Early Retirement

†††††††††††† (a) A Member may elect to retire at any time in the ten year period immediately preceding his or her normal retirement date and receive a pension provided the Member has completed two years of Service.

†††††††††††† (b) The pension payable to a Member on early retirement shall be determined in accordance with Article V (Retirement Benefits).

††††††† 3. Postponed Retirement

†††††††††††† (a) A Member may elect to retire at any time after his or her normal retirement date but not later than the end of the year in which the Member reaches the age at which a pension benefit is required to begin under the Income Tax Act, provided the Member has completed at least two years of Service.

†††††††††††† (b) The pension payable to a Member on postponed retirement shall be determined in accordance with Article V (Retirement Benefits).

ARTICLE V
Retirement Benefits

††††††† 1. Normal or Postponed Retirement

†††††††††††† A Member who retires on or after his or her normal retirement date shall be entitled to receive a pension, which can be purchased with the value of the Memberís Account at the actual retirement date.

††††††† 2. Early Retirement Pension

†††††††††††† A Member who retires before the normal retirement date shall be entitled to receive, from his or her retirement date, an immediate pension, which can be purchased with the value of the Memberís Account at the actual retirement date.

††††††† 3. Benefit from Member Voluntary Contributions

†††††††††††† In addition to any other retirement benefits payable under this Article, a Member is entitled to receive either:

†††††††††††† (a) a refund of the Memberís voluntary contributions made under Article III , if any, plus interest; or

†††††††††††† (b) an annuity purchased from an insurance company licensed to transact business in Canada with the amount described in (1).

††††††† 4. Small Benefit Commutation

†††††††††††† If the annual lifetime pension payable at a Memberís normal retirement date is not more than 4% of the YMPE in the year of the Memberís termination of employment, or the value of the Memberís Account is not more than 10% of the YMPE in the year of the Memberís termination of employment, or such other amount as may be prescribed for this purpose by the Pension Benefits Act, the Member will receive a lump sum payment equal to the value of the Memberís Account in full satisfaction of his or her entitlement under the Plan.

††††††† 5. Transfer of Refund to RRSP

†††††††††††† A Member who is entitled to receive a refund of contributions may elect to have that refund transferred directly on his or her behalf to a Registered Retirement Savings Plan.

ARTICLE VI
Normal and Optional Forms

††††††† 1. Normal Form of Pension

†††††††††††† For a retiring Member with a Principal Beneficiary the normal form of pension is one which provides a lifetime pension income and further, upon the death of the retired Member, continues at sixty percent to the Principal Beneficiary, until the death of the Principal Beneficiary.

††††††† 2. Optional Forms of Pension

†††††††††††† The retiring Member may elect another form of pension, which is acceptable to the Administrator and is permissible under the Pension Benefits Act and the Income Tax Act.

††††††† 3. Transfer of lump sum to RRSP

†††††††††††† If the person who is entitled to receive a lump sum payment under any form of pension payable under the Plan is the Spouse or former spouse of the Member, the Spouse or former spouse of the Member may elect to have that amount transferred directly on his or her behalf to a Registered Retirement Savings Plan.

ARTICLE VII
Termination of Service

††††††† 1. If an Employee terminates employment prior to the normal retirement date, the terms of this Article shall apply.

††††††† 2. Vesting and Locking-In

†††††††††††† (a) An Employee who terminates employment prior to January 1, 1997 has a vested entitlement to funds in the Memberís Account provided he or she has completed at least five years of Service. An Employee who terminates employment after January 1, 1997 and after completion of two years of Service has a vested entitlement to funds in the Memberís Account. A Member has at all times a completely vested interest in his or her voluntary account. An Employee whose employment is terminated for any reason whatsoever other than death or retirement, will be entitled to receive a benefit as described in this Article.

†††††††††††† (b) Locking in refers to the cash availability of funds in the Memberís Account and will be as follows:

†††††††††††††††††††† (a) With respect to contributions made prior to January 1, 1997 , but after January 1985, if the terminated Employee has both attained age 45 and completed 10 years of continuous Service, no cash option is available with respect to such contributions.

†††††††††††††††††††† (b) With respect to contributions made on or after January 1, 1997 , if the terminated Employee has completed at least 2 years of Service no cash option is available with respect to such contributions.

††††††† 3. Non Vested Termination

†††††††††††† An Employee who terminates on or after January 1, 1997 with less than 2 years Service is only entitled to a refund of his or her own contributions plus interest, which may be transferred directly to a Registered Retirement Savings Plan.

††††††† 4. Vested Termination

†††††††††††† If an Employee terminates employment on or after January 1, 1997 , prior to retirement, the Employee may elect to transfer the funds accumulated in the Memberís Account to a locked in retirement account, another registered pension plan, a deferred life annuity, a life income fund or other retirement arrangement approved by the Superintendent of Pensions.

††††††† 5. Small Benefit Commutation

†††††††††††† If the annual lifetime pension payable at the Memberís normal retirement date is not more than 4% of the YMPE in the year of the Memberís termination of employment, or the value of the Memberís Account is not more than 10% of the YMPE in the year of the Memberís termination of employment, or such other amount as may be prescribed for this purpose by the Pension Benefits Act, the Member will receive a lump sum payment equal to the value of the Memberís Account in full satisfaction of his or her entitlement under the Plan.

††††††† 6. Where a non-vested Employee terminates under Section 3 of this Article, the amount of the Employer contribution balance resulting from the termination shall be deposited to a forfeitures account to be used to reduce the administrative expenses of the Plan.

ARTICLE VIII
Withdrawal from Plan

††††††† 1. While an Employee remains in employment with an Employer the Employee may neither:

†††††††††††† (a) withdraw his or her contributions from the Plan; nor

†††††††††††† (b) borrow against his or her contributions.

ARTICLE IX
Pre Retirement Death

††††††† 1. In the event of the death of a Member, a lump sum amount equal to the value of the Member's Account on the date of death (the benefit) shall be paid to the Principal Beneficiary, pursuant to the provisions under the Pension Benefits Act.

††††††† 2. In the event there is no Principal Beneficiary, the benefit shall be paid to the Memberís Designated Beneficiary as designated in accordance with Article XI (Designated Beneficiaries).

††††††† 3. If there is no Designated Beneficiary or if the person designated by the Member as his or her Designated Beneficiary is not living at the time of the Memberís death, the benefit shall be paid to the Member's estate.

††††††† 4. In the event of there being a doubt as to the identity of the Designated Beneficiary or as to whether the Designated Beneficiary is the person legally entitled to receive a benefit, payment of the benefit may be withheld for a reasonable time to permit investigation to be made. In this event, a Designated Beneficiary or claimant shall on demand be obliged to furnish all information and to produce proof of identity and of right to the benefits that may be reasonable in the circumstances.

ARTICLE X
Transfers

††††††† 1. Reciprocal Transfer Agreements

†††††††††††† Reciprocal transfer agreements may be entered into to provide for transfers between registered pension plans.

††††††† 2. Transfer from Employment

†††††††††††† (a) Where a reciprocal transfer agreement exists between an Employer and a previous employer, the Employer will accept deposits into the Memberís Account by way of transfer from the previous employer's registered pension plan in accordance with the terms of the reciprocal transfer agreement.

†††††††††††† (b) An Employee may pay into his or her Memberís Account, as permitted by the Income Tax Act, an amount received or receivable by him or her as a cash withdrawal benefit under another employee pension plan registered as such with the Canada Revenue Agency for purposes of the Income Tax Act .

††††††† 3. Transfer to Other Employment

†††††††††††† Where there exists a reciprocal transfer agreement between the Employer and the subsequent employer of the Employee, transfer payments may be made into the fund of the subsequent employer's pension plan. The amount of such a transfer shall be determined in accordance with the Reciprocal Transfer Agreement but the total amount transferred shall be the amount credited to the Member in the Memberís Account as if the Member has vested under Article VII .

ARTICLE XI
Designated Beneficiaries

††††††† 1. The Designated Beneficiary shall be the Principal Beneficiary.

††††††† 2. A Member without a Principal Beneficiary may designate in writing a person to receive a benefit payable under the Plan in the event of death prior to retirement.

††††††† 3. A Member who has made a designation in accordance with Section 2 of this Article may from time to time alter or revoke the designation by filing with the Administrator the alteration or revocation in writing.

††††††† 4. Once a Member has a Principal Beneficiary a prior designation made in accordance with Sections 2 or 3 of this Article shall be null and void.

ARTICLE XII
Limitation of Assignment

††††††† 1. No right of a person under the Plan is capable of being assigned, charged, anticipated, given as security or surrendered, and, for the purposes of this condition,

††††††††††††† (i) assignment does not include

††††††††††††††††††† (A) assignment pursuant to a decree, order or judgment of a competent tribunal or a written agreement in settlement of rights arising out of a marriage or cohabiting partnership between a Member and the Memberís spouse or Cohabiting Partner or former spouse or Cohabiting Partner, on or after the breakdown of their marriage or Cohabiting Partner, or

††††††††††††††††††† (B) assignment by the legal representative of a deceased Member on the distribution of the Memberís estate, and

†††††††††††† (ii) surrender does not include a reduction in benefits to avoid the revocation of the registration of the Plan under the Income Tax Act.

ARTICLE XIII
Splitting of Credits on Marriage Breakdown

††††††† 1. In the event of marriage breakdown, pension benefits will be divided in accordance with a written separation agreement, or an order under the Family Law Act , RSNL1990 cF-2, as amended. Such division is subject to Part VI of the Pension Benefits Act.

††††††† 2. Pension benefits will be determined as if the Member had terminated employment on the date of marriage breakdown. Where benefits are to be divided pursuant to a separation agreement, the settlement to the spouse may not exceed the limits imposed by the Pension Benefits Act.

††††††† 3. If the Memberís benefits under the Plan are locked-in, locking-in will also apply to the spouseís settlement. In such event, the spouse may elect to transfer the benefit to:

†††††††††††† (a) a locked-in retirement account, which is a Registered Retirement Savings Plan which meets the conditions of applicable legislation, or

†††††††††††† (b) another registered pension plan of which the spouse is a member, provided such a plan accepts such transfers, or

†††††††††††† (c) an insurance company to purchase a deferred life annuity, meeting the conditions of applicable legislation, or

†††††††††††† (d) a life income fund in the spouseís name, or any other arrangement approved by the Superintendent of Pensions

wherein the benefits so transferred will continue to be administered in accordance with applicable legislation.

ARTICLE XIV
Custodian and Accounts

††††††† 1. The accounts shall be established and administered by the Custodian, in accordance with the terms of an agreement executed between the Minister and the Custodian and in accordance with the requirements for registered pension plans as outlined in the Income Tax Act and other applicable legislation.

††††††† 2. The Custodian shall maintain and keep record of a separate account for each Member which will consist of:

†††††††††††† (a) all contributions made in accordance with the terms of the Plan by Employers and Employees;

†††††††††††† (b) all contributions credited to each Member on account of transfers pursuant to Article X (Transfers);

†††††††††††† (c) all additional voluntary contributions made by each Member; and

†††††††††††† (d) interest accrued on (a), (b) and (c).

††††††† 3. Death and termination benefits under the Plan shall be provided directly from the Memberís Account.

††††††† 4. Each Memberís Account shall be charged with the fees as outlined in the policy document of the Administrator as agreed to by the Committee.

††††††† 5. Each Memberís Account shall have a fiscal year ending December 31st.

ARTICLE XV
Administration and Procedures

††††††† 1. The Committee, on behalf of the Minister, is responsible for all matters relating to the administration of the Plan. The Committee may make any recommendations to the minister respecting the administration of the plan that it considers necessary.

††††††† 2. The Committee shall keep a permanent record of minutes of its meetings and of its decisions. The quorum for meetings of the Committee may be fixed by the Committee. Any writing required to transmit or record decisions of the Committee shall be sufficiently executed when signed by the chairperson. In all other matters relating to the conduct of its affairs the Committee may make its own rules and regulations.

††††††† 3. Upon the recommendation of the Committee, the Minister may modify, amend or revise the Plan from time to time to meet the aims and objectives of the Plan and satisfy the requirements of applicable legislation.

††††††† 4. The Committee shall from time to time receive reports from the Investment Counsel and the Custodian. As a result of these reports the Committee may recommend certain courses of action to the Minister.

††††††† 5. Payment of a benefit under the Plan shall be made only upon receipt of written request for it in the manner prescribed by the Administrator and upon submission of the relevant supporting evidence as the Administrator in his or her discretion may require.

††††††† 6. All pension benefits must be provided under an arrangement acceptable under the Pension Benefits Act and the Income Tax Act.

††††††† 7. The Administrator shall make available for inspection by eligible individuals the documents and information concerning the Plan and the Fund as prescribed by the Pension Benefits Act.

††††††† 8. The Committee will advise the Canada Revenue Agency of any changes in name or address of the appointed Administrator of the Plan within 30 days of such change.

††††††† 9. Beginning in 1991, the Employer will report to the Canada Revenue Agency a Pension Adjustment for each Member. Such Pension Adjustment shall be reported by the end of February of each calendar year.

††††††††††† 10. The Plan includes and shall only include investments that:

†††††††††††† (a) are not prohibited investments under Section 8514(1) of the regulations to the Income Tax Act; and

†††††††††††† (b) are permitted investments under the Pension Benefits Act.

††††† 11. Borrowing against the Plan is prohibited.

ARTICLE XVI
General

††††††† 1. No Member, Principal Beneficiary or Designated Beneficiary shall have any recourse under this Plan against a past, present or future Custodian, Administrator, Employer or other Employee or person acting on behalf of those persons or member of the Committee, and all those persons shall be free from all liability.

††††††† 2. The Plan shall not:

†††††††††††† (a) give an Employee a right to be retained in the Service of an Employer;

†††††††††††† (b) prevent an Employer from discharging an Employee at any time;

†††††††††††† (c) give rise to a claim by anyone against the Employer for damages for any cause.

††††††† 3. All contributions to and all benefits made from the Plan shall be payable in the lawful currency of Canada .

††††††† 4. In case the age of a Member is found to have been incorrectly stated, the Administrator is empowered to make or cause to be made those adjustments respecting the Member, for the purposes of the Plan that the Administrator shall consider equitable.

ARTICLE XVII
Future of the Plan

††††††† 1. Continuation of Plan

†††††††††††† The Minister intends to maintain the Plan indefinitely, but reserves the right to amend the Plan or discontinue the Plan in whole or in part.

††††††† 2. Amendment to the Plan

†††††††††††† No amendment shall operate to reduce the pension benefits, which have accrued to any Member before the date of the amendment, based on Earnings up to the date of the amendment.

††††††† 3. Termination of the Plan

†††††††††††† If the Plan is wound up, in part or in whole, assets of the Plan, other than those in the forfeitures account, will be distributed among Members of the Plan in a fair and equitable manner, as determined by the Administrator and as approved by all relevant governmental authorities. All expenses related to the wind up of the Plan shall be paid from the forfeitures account with any residual amounts remaining in the account after wind up returned to the Government of Newfoundland and Labrador .

†††††††††††† If the Plan is wound up, in whole or in part, Employers shall not make further contributions to the Fund in respect of the Plan or the portion of the Plan being wound up, as applicable, except for amounts due, or that have accrued up to the effective date of the wind-up and have not been paid into the Fund as required by the Plan and the Pension Benefits Act, plus amounts required to be contributed pursuant to the requirements of the Pension Benefits Act.

2009 c43 s11

Back to Top

Schedule B

Institutions or Organizations

Alcohol and Drug Dependency Commission

Carbonear General Hospital

Dr. Charles LeGrow Health Centre

A.M. Guy Memorial Hospital

Agnes Pratt Home

Baie Verte Peninsula Health Centre

Bay Roberts Group Home

Bonavista Peninsula Health Care Complex

Bay D'Espoir, Hermitage, Fortune Bay Integrated School Board

Cape Freels Integrated School Board

Carbonear Interfaith Home for Senior Citizens

Exploits Valley Integrated School Board

Salvation Army Glenbrook Lodge

St. Augustine 's Group Home

The General Hospital Corporation

St. John's Youth Centre

Newfoundland and Labrador Liquor Corporation

Memorial United Church Group Home ( Grand Falls )

Newfoundland and Labrador Cancer Treatment and Research Foundation

Placentia and Area Healthcare Complex ( Placentia Hospital )

Roman Catholic School Board Placentia - St. Mary's

Whitbourne Youth Centre

Roman Catholic School Board Humber - St. Barbe

Cabot Institute

Hoyles - Escasoni Complex

Avalon Consolidated School Board

Waterford Hospital

Salvation Army Grace General Hospital

Janeway Child Health Centre

St. Patrick's Mercy Home

St. Clare's Mercy Hospital

Canada Newfoundland and Labrador Offshore Petroleum Board

Humber Valley Association Group Home

Interfaith Home for Senior Citizens ( Corner Brook )

Roman Catholic School Board for St. John's

Vinland Integrated School Board

Public Libraries Board

Children's Rehabilitation Centre

Gander and District Continuing Care

VS Services Limited

Bonnews Lodge

Marystown Community Living Foundation

Lewisporte Group Home

Mercy Residence

North Haven Manor

The Newfoundland and Labrador Liquor Licensing Board

Harbour Lodge

St. Luke's Home

Lakeside Homes

Nova Services

Burin Peninsula Integrated School Board

Senior Citizens Home, St. Anthony

Lions Manor Nursing Home

Gander Regional Youth Assessment Centre

Roman Catholic School Board, Ferryland District

Conception Bay North Association for Community Living

Newfoundland Co-ordinating Council on Deafness

Modern Building Cleaning Ltd.

Newfoundland and Labrador Housing

Notre Dame Bay Memorial Hospital

Port aux Basques Group Home

Port aux Basques Integrated School Board

Roman Catholic School Board - Labrador

Sir Thomas Roddick Hospital

Western Memorial Hospital

Masonic Park Nursing Home

Bay St. George Residential Support Board

Association of Registered Nurses of Newfoundland

Eastern Newfoundland and Labrador Children's Home Inc.

Grand Bank Group Home

Bonavista - Trinity Placentia Integrated School Board

Burin Peninsula Healthcare Centre

Golden Heights Manor

Bonavista Peninsula Healthcare Program

Central Newfoundland and Labrador Regional Health Center

Pentecostal Assemblies Board of Education

Grenfell Regional Health Services

Gander Group Home

Captain William Jackman Hospital

Gander and District Hospital Board

Green Bay Healthcare Centre

St. John's Home Care Program

Corner Brook Transition House

Dr. G.B. Cross Memorial Hospital

Avalon North Integrated School Board

Notre Dame Bay Integrated School Board

St. David's Group Home

Bay St. George Senior Citizens Home

Carmelite House

The Harry L. Paddon Memorial Home

Bay St. George Community Employment Corporation

Enterprise Newfoundland and Labrador

Newfoundland Hospital and Nursing Home Association

Libra House

Daybreak Parent/Child Centre

Iris Kirby House

Maple Valley Group Home Board

Placentia Area Committee for Community Living

Calypso W.O.R.C.

Work Oriented Rehabilitation Centre

Marriott Corporation of Canada Limited (St. Clare's Food Services)

Vera Perlin Society

Newfoundland and Labrador Hydro-Electric Corporation

Port aux Basques Community Employment Corporation

Memorial University (Newhook Medical Clinic)

Marine Institute

Gran-For-Line Association for Community Living

Newfoundland Medical Board

Ace Independence Incorporated

Corner Brook Residential Support Board

Anderson Co-op Apartment

T.J. McDonald Achievement Home Incorporated

Farmdale Home Incorporated

Newfoundland Lumber Producers Association

Hearth Home Corporation

Newfoundland Medical Care Commission

Pentecostal Senior Citizens Home

Grand Bank Group Home

St. Francis Foundation

Workers' Compensation Commission of Newfoundland and Labrador

Exploits Community Employment Corporation

Twin Cities Residential Support Board, Incorporated

Avalon Community Accommodations Board

1990 c12 Sch B; 1994 c11 s4; 94/91; 197/91; 161/92; 61/93; 176/93; 123/94; 27/95; 38/95; 2001 cN-3.1 s2