Statutes of Newfoundland and Labrador 2007 Chapter 6

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

SNL1996 cP-4.01 as amended

1. Section 28 of the Pension Benefits Act, 1997 is repealed and the following substituted:

Retirement date

28. (1) A pension plan shall provide for normal retirement calculated with reference to the age when a member is normally eligible to start receiving a pension in accordance with the plan without reduction or increase and normal retirement age shall be not later than the date the member or former member attains age 65.

(2) A pension plan shall provide that a member who continues in employment after reaching normal retirement age and who is not receiving a pension under the plan shall be entitled to continue to participate in the plan on the same basis that applied before the member reached normal retirement age.

(3) A pension plan may provide that where a member continues in employment after reaching normal retirement age, one or more of the following options may be available to the member:

(a) the member may cease to contribute to the plan and no additional benefits shall be accrued but on the member's pension commencing, the pension shall be increased, taking into account the period of time during which the pension was not paid, to at least the actuarial equivalent of the pension accrued at normal retirement age;

(b) the member may commence receipt of a pension while continuing in employment and no further contributions to the plan are payable and no additional benefits may be accrued; or

(4) Notwithstanding subsection (2), a member's or former member's pension benefit shall commence before the end of the calendar year in which the member or former member attains the age at which a pension benefit is required to begin under the Income Tax Act (Canada).

Commencement

2. This Act shall come into force on May 26, 2007.