Statutes of Newfoundland 1995 Chapter 5

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Statutes of Newfoundland 1995

CHAPTER 5 CHAPTER 5

AN ACT TO AMEND THE PENSION BENEFITS ACT
(Assented to May 31, 1995)

Analysis

1. S.2 Amdt.
Definitions

2. S.18 Amdt.
Required terms

3. S.28 Amdt.
Regulations

4. Commencement

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

RSN1990 cP-4

1. Section 2 of the Pension Benefits Act is amended by renumbering paragraph (a) as (a.1) and by adding the following immediately before paragraph (a.1):

(a) "commuted value" means the value, calculated in the prescribed manner and as of a fixed date, of a pension, a deferred pension, a pension benefit or an ancillary benefit;

2. (1) Subsection 18(1) of the Act is amended by deleting the word "and" at the end of paragraph (b), by deleting the period at the end of paragraph (c) and by substituting a semi-colon and by adding the following immediately after paragraph (c):

(d) a member or former member of a pension plan whose employment with the employer is terminated and who is entitled to a deferred pension is entitled to require the administrator to pay the commuted value of the deferred pension,

(i) to the pension fund related to another pension plan, where the administrator of the other plan agrees to accept this payment,

(ii) into a retirement savings arrangement, prescribed by regulation, or

(iii) for the purchase on the member's behalf of a deferred life annuity under which payments commence at normal retirement age;

(e) the entitlement under paragraph (d) is subject to the limitations, prescribed by regulation, in respect of the transfer of funds from pension funds; and

(f) paragraph (d) does not apply to a member or former member whose employment is terminated and who is entitled to immediate payment of a pension benefit under the pension plan unless the pension plan provides for that entitlement.

(2) Paragraph 18(2)(a) of the Act is repealed.

3. Paragraph 28(e) of the Act is repealed and the following substituted:

(e) prescribing the conditions under which, upon termination of employment of an employee, upon termination of an employee's membership in a pension plan or upon the termination or winding up of a pension plan, pension benefit credits or the commuted value of pension benefit credits may be held in trust by the administrator, insurer or trustee of the pension plan, transferred as provided in paragraph 18(1)(d) or transferred to the agency described in section 14;

Commencement

4. This Act is considered to have come into force on January 1, 1995.