21

 


Second Session, 48th General Assembly

66 Elizabeth II, 2017

BILL 21

AN ACT TO AMEND THE MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT AND THE PORTABILITY OF PENSIONS ACT

Received and Read the First Time.................................................................................................

Second Reading.................................................................................................................................

Committee..........................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE TOM OSBORNE

Minister of Finance

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTES

This Bill would amend the Members of the House of Assembly Retiring Allowances Act and the Portability of Pensions Act.

The Members of the House of Assembly Retiring Allowances Act would be amended to clarify existing provisions of the Act that relate to entitlement and calculation of registered and supplementary allowances to be consistent with the terms of the pension plan. The Act would also be amended to provide that a member of the House of Assembly who is elected for the first time to the House of Assembly on or after November 30, 2015

·         must reach the age of 60 years before he or she is eligible for a pension;

·         is not eligible for a reduced pension;

·         accrues a pension at an accrual rate of 2.5% of the MHA’s or minister’s salary per year; and

·         is not permitted to be credited with pensionable service under the Members of the House of Assembly pension plan for service accrued under another public sector pension plan or a pension plan of another government or entity.

The Portability of Pensions Act would be amended to exclude a member of the House of Assembly or a minister elected for the first time on or after November 30, 2015 from the application of the Act.


A BILL

AN ACT TO AMEND THE MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT AND THE PORTABILITY OF PENSIONS ACT

Analysis


              MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT

        1.   S.11 R&S
Calculation of registered allowance

        2.   S.19 Amdt.
Entitlement

 

        3.   S.20 Amdt.
Calculation of supplementary allowance

        4.   S.30 Amdt.
Purchase of service

        5.   S.32 Amdt.
Reciprocal transfers

              PORTABILITY OF PENSIONS ACT

        6.   S.2.1 Added
Application

        7.   Commencement


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

MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT

SNL2005 cM-6.1
as amended

        1. Section 11 of the Members of the House of Assembly Retiring Allowances Act is repealed and the following substituted:

Calculation of registered allowance

      11. (1) The annual amount of the registered allowance paid to a member elected for the first time before or during the 43rd General Assembly shall be calculated by adding the following amounts:

             (a)  for each year of MHA service for a maximum period of 17 years, 2% of his or her base MHA salary;

             (b)  for each year of ministers service for a maximum period of 17 years, 2% of his or her base ministers salary; and

             (c)  for each year of other service, 2% of the sum of his or her base MHA salary and his or her base ministers salary.

             (2)  The annual amount of the registered allowance paid to a member elected for the first time after the 43rd General Assembly and before November 30, 2015 shall be calculated by adding the following amounts:

             (a)  for each year of MHA service for a maximum period of 20 years, 2% of his or her base MHA salary;

             (b)  for each year of ministers service for a maximum period of 20 years, 2% of his or her base ministers salary; and

             (c)  for each year of other service, 2% of the sum of his or her base MHA salary and his or her base ministers salary.

             (3)  The annual amount of the registered allowance paid to a member elected for the first time on or after November 30, 2015 shall be calculated by adding the following amounts:

             (a)  for each year of MHA service for a maximum period of 20 years, 2% of his or her base MHA salary;

             (b)  for each year of ministers service for a maximum period of 20 years, 2% of his or her base ministers salary; and

             (c)  for each year of service purchased by a member under section 31, 2% of his or her base MHA salary.

             (4)  Notwithstanding paragraph (2)(c), for the purpose of calculating the amount of the registered allowance paid to a member elected for the first time after the 45th General Assembly, his or her base ministers salary shall not be included.

             (5)  Notwithstanding subsections (1) and (2), for the years between January 1, 1998 and December 31, 2004, the annual amount of the registered allowance payable to a member shall be calculated under subsection (1) or (2), as applicable, and reduced by the result of the following calculation:

 

 

 

the member's average YMPE ´ .006


X

the member's months
of MHA service
12

 

 

 

             (6)    A reduction under subsection (5) shall occur on the first day of the month in which the member reaches the age of 65 years.

             (7)  A registered allowance shall not exceed the maximum allowable benefit as determined under the Income Tax Act (Canada).

 

        2. (1) Subsections 19(2.1) and (2.2) of the Act are repealed and the following substituted:

         (2.1)  Notwithstanding subsections (1) and (2), a vested member elected for the first time after December 31, 2009 and before November 30, 2015 who is no longer an MHA or a minister may, on application, receive a supplementary allowance if

             (a)  the member has paid the contributions for service required under this Act; and

             (b)  the member has reached the age of 55 years.

         (2.2)  Notwithstanding subsection (2.1), a vested member elected for the first time after December 31, 2009 and before November 30, 2015 who is no longer an MHA or a minister may, on application, receive a reduced supplementary allowance calculated in accordance with subsection 20(2.3) if

             (a)  the member has paid the contributions for service required under this Act; and

             (b)  the member has reached the age of 50 years.

             (2)  Section 19 of the Act is amended by adding immediately after subsection (2.2) the following:

         (2.3)  Notwithstanding subsections (1) and (2), a vested member elected for the first time on or after November 30, 2015 who is no longer an MHA or a minister may, on application, receive a supplementary allowance if

             (a)  the member has paid the contributions for service required under this Act; and

             (b)  the member has reached the age of 60 years.

 

        3. (1) Subsections 20(2.1) and (2.2) of the Act are repealed and the following substituted:

         (2.1)  Notwithstanding subsection (2), the annual amount of the supplementary allowance paid to a member elected for the first time after December 31, 2009 and before November 30, 2015 shall be calculated by adding the following amounts:

             (a)  for each year of MHA service for a maximum period of 20 years, 3.5% of his or her base MHA salary;

             (b)  for each year of ministers service for a maximum period of 20 years, 3.5% of his or her base ministers salary; and

             (c)  for each year of other service, 2% of his or her base MHA salary.

         (2.2)  Notwithstanding subsection (2), the annual amount of the supplementary allowance paid to a member elected for the first time on or after November 30, 2015 shall be calculated by adding the following amounts:

             (a)  for each year of MHA service for a maximum period of 20 years, 2.5% of his or her base MHA salary;

             (b)  for each year of ministers service for a maximum period of 20 years, 2.5% of his or her base ministers salary; and

             (c)  for each year of service purchased by a member under section 31, 2% of his or her base MHA salary.

             (2)  Section 20 of the Act is amended by adding immediately after subsection (2.2) the following:

         (2.3)  For the purpose of subsection 19(2.2), the retiring allowance awarded under subsection (2.1) shall be reduced by 6% for each year that the member’s age is less than the age of 55 years.

 

        4. Subsection 30(1) of the Act is repealed and the following substituted:

Purchase of service

      30. (1) Where a member who was elected before November 30, 2015 was formerly covered under a pension plan established under

             (a)  the Memorial University Pensions Act;

             (b)  the Public Service Pensions Act, 1991;

             (c)  the Teachers’ Pensions Act;

             (d)  the Uniformed Services Pensions Act, 1991; or

             (e)  an Act replaced by an Act referred to in paragraphs (a) to (d),

and has no remaining entitlement to benefits under that pension plan, the member may, upon his or her election and on payment of an amount that may be prescribed by the Minister of Finance by directive, be credited with pensionable service for all or a portion of the period of service formerly covered by that pension plan.

 

        5. Section 32 of the Act is amended by adding immediately after subsection (2) the following:

             (3)  This section does not apply in respect of a member who was elected for the first time on or after November 30, 2015.

PORTABILITY OF PENSIONS ACT

RSNL1990 cP-17
as amended

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

Application

      2.1 (1) This Act does not apply to an MHA or a minister who was elected for the first time on or after November 30, 2015.

             (2)  In this section, "MHA" and "minister" have the meaning assigned to them in the Members of the House of Assembly Retiring Allowances Act.

Commencement

        7. This Act is considered to have come into force on November 30, 2015.