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This is an official version. Copyright © 2000: Queen's Printer, Important Information
Statutes of Newfoundland 1998 CHAPTER 12 AN ACT TO AMEND THE MEMBERS OF THE HOUSE OF ASSEMBLY PENSIONS ACT (Assented to June 5, 1998) Analysis 1. S.5 R&S 2. S.9 R&S 3. S.15 R&S 4. S.19 Amdt. 5. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: RSN1990 cM-6 1. Section 5 of the Members of the House of Assembly Pensions Act is repealed and the following substituted: Contributions 5. (1) A member shall contribute to the fund established under the Pensions Funding Act at a rate of 8% of pensionable salary. (2) Notwithstanding subsection (1) and effective April 1, 1999, a member shall contribute to the fund established under the Pensions Funding Act at a rate of 9% of pensionable salary. (3) Where a member has made contributions that will provide the maximum allowance to which he or she is entitled under subsection 9(4), his or her obligation to contribute stops. 2. Section 9 of the Act is repealed and the following substituted: Retiring allowance 9. (1) Where a person has stopped being a member there shall be paid to him or her annually during his or her lifetime a retiring allowance amounting to the total of (a) the product of 5% of the average of his or her pensionable salary as a member for 3 calendar years times the years of his or her service as a member up to but not exceeding 10 years; (b) the product of 4% of the average of his or her pensionable salary as a member for 3 calendar years times the years of his or her service as a member after the 10 years referred to in paragraph (a) up to but not exceeding 5 years; and (c) the product of 2.5% of the average of his or her pensionable salary as a member for 3 calendar years times the years of his or her service as a member after the 5 years referred to in paragraph (b) to a maximum of 2 years. (2) Notwithstanding subsection (1), when a member who was elected for the first time after the 43d General Assembly has stopped being a member there shall be paid to him or her annually during his or her lifetime a retiring allowance amounting to the total of (a) the product of 5% of the average of his or her pensionable salary as a member for 3 calendar years times the years of his or her service as a member up to but not exceeding 10 years; and (b) the product of 2.5% of the average of his or her pensionable salary as a member for 3 calendar years times the years of his or her service as a member to a maximum of 10 years. (3) Where a member serves as a member for less than 3 years, the average of his or her pensionable salary shall be the average of the annual rates of pensionable salary pro-rated in the manner prescribed in a directive of the minister until sufficient time has elapsed to provide an average of pensionable salary for 3 calendar years. (4) The retiring allowance paid to a member under subsection (1) or (2) shall not exceed 75% of the average of his or her pensionable salary as a member for 3 calendar years selected by the member. (5) A retiring allowance awarded under subsection (1) or (2) shall be reduced by the product of 6/10 of 1% of the member's average annual salary as calculated under subsection (1) or (2) multiplied by the number of years and months of pensionable service as a member done after March 31, 1967 and credited under this Act, including service credited under subsection 33(1) not exceeding 35 years. (6) For the purpose of subsection (5) a member's average annual salary may not exceed the average of the employee's Year's Maximum Pensionable Earnings under the Canada Pension Plan in the year the member has retired and in the 2 years immediately before the member's year of retirement. (7) A retiring allowance of a member shall be reduced under subsection (5) at a time which is the earlier of (a) the first of the month following the month in which the member reaches the age of 65 years; or (b) the effective date of the payment of benefits to the member under the Canada Pension Plan where the effective date of the reduction is before age 65, the amount of the reduction as calculated under subsection (5) shall be reduced by.5% for each month the effective date as established under paragraph (b) is less than the date established under paragraph (a) to a maximum of 30%. (8) The retiring allowance paid to a member shall be paid as directed by the minister in equal and periodic payments and shall stop at the end of the month in which the death of the recipient occurs. 3. Section 15 of the Act is repealed and the following substituted: Contributions 15. (1) A minister shall contribute to the fund established under the Pensions Funding Act at a rate of 8% of pensionable salary. (2) Notwithstanding subsection (1) and effective April 1, 1999, a minister shall contribute to the fund established under the Pensions Funding Act at a rate of 9% of pensionable salary. (3) Where a minister has made contributions that will provide the maximum allowance to which he or she is entitled under subsection 19(3), his or her obligation to contribute stops. 4. (1) Section 19 of the Act is amended by adding immediately after subsection (1) the following: (1.1) Notwithstanding subsection (1), where a minister who was elected as a member for the first time after the 43d General Assembly has stopped being a minister, there shall be paid to him or her annually for his or her lifetime a retiring allowance amounting to the total of (a) the product of 5% of the average of his or her pensionable salary as a member for any 3 calendar years times the years of his or her service as a minister up to but not exceeding 10 years; and (b) the product of 2.5% of the average of his or her pensionable salary as a minister for any 3 calendar years times the years of his or her service as a minister to a maximum of 10 years. (2) Subsection 19(5) of the Act is amended by adding immediately after the words "Minister of Finance" the phrase " in equal and periodic payments". Commencement 5. This Act shall be considered to have come into force on April 1, 1998. ©Earl G. Tucker, Queen's Printer |