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Statutes of Newfoundland and Labrador 2009


CHAPTER 28

AN ACT TO AMEND THE MEMORIAL UNIVERSITY PENSIONS ACT
NO.
2

(Assented to December 22, 2009)

Analysis


        1.   S.2 Amdt.
Definitions

        2.   S.3 Amdt.
Application of Act

        3.   S.5 Amdt.
Pension fund

        4.   S.6 R&S
Charges upon fund

        5.   S.8 R&S
Investments

        6.   S.9 Amdt.
Trust account

        7.   S.12 Amdt.
Contributions to fund

        8.   S.13 Amdt.
Payments by government

        9.   S.15 Amdt.
Retirement

      10.   S.17 Rep.
President's pension

      11.   S.18 Amdt.
Amount of pension

      12.   S.18.2 Added
Offer of re-employment

      13.   S.19 Amdt.
Pensionable service

      14.   S.19.1 Added
Periods of unpaid leave or reduced pay

      15.   S.22 Rep.
Temporary pension

      16.   S.23 R&S
Survivor's allowance

      17.   S.26 R&S
Repayment of contributions to survivor

      18.   S.27 R&S
Repayment of contributions of deceased employees

      19.   S.29 Rep.
Adjustment or cancellation of pension

      20.   S.29.1 Amdt.
Policy directive

      21.   S.29.2 Rep.
Integration with
Canada Pension Plan

      22.   S.35 Amdt.
Agreement with president


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

RSNL1990 cM-8
as amended

        1. (1) Paragraphs 2(j) and (k) of the Memorial University Pensions Act are repealed and the following substituted:

              (j)  "pensionable salary" means the average salary received in any 5 years of pensionable service chosen by the employee, calculated by reference to the salary in effect on the employee's date of retirement and on the same date in each prior year of pensionable service;

             (k)  "pensionable service" means service which may be taken into account in determining whether an employee has qualified for the award of a pension and the amount of a pension and includes service under section 19, provided that pensionable service will be eligible service as defined in the Income Tax Act (Canada) and regulations made under that Act;

             (2)  Section 2 of the Act is amended by adding immediately after paragraph (k.2) the following:

          (k.3)  "salary" means the annual basic salary paid to an employee by the board or by an employer referred to in paragraphs 3(1)(b), (c) and (c.1), including other remuneration that the board may prescribe by policy directive made under section 29.1, but does not include remuneration paid for teaching at summer school or for services other than or ancillary to the principal duties in respect of the performance of which pensionable service is credited to him or her under this Act, except as may be prescribed by the board in a policy directive made under section 29.1;

             (3)  Subparagraph 2(l)(iii) of the Act is amended by deleting the word "and" at the end of the subparagraph.

             (4)  Paragraph 2(m) of the Act is amended by deleting the period at the end of the paragraph and substituting a semi-colon and by adding immediately after that paragraph the following:

             (n)  "year's basic exemption" means the year's basic exemption as defined under the Canada Pension Plan; and

             (o)  "year's maximum pensionable earnings" means the year's maximum pensionable earnings as defined under the Canada Pension Plan.

 

        2. (1) Subsection 3(1) of the Act is amended by adding immediately after paragraph (c) the following:

          (c.1)  a person employed full-time for an indefinite term by Memorial University of Newfoundland Students' Union, Medical Practice Associates, and the Geological Association of Canada, Newfoundland Section, and who is, on the date of the coming into force of this paragraph, a member of the pension plan or in receipt of a pension benefit from the fund;

             (2)  Paragraph 3(1)(e) of the Act is repealed and the following substituted:

             (e)  a person appointed by the board or by an employer referred to in paragraph (b), (c), or (c.1) who is employed on a less than full-time basis for an indefinite period as directed by the board and approved by the minister.

             (3)  Subsections 3(3) and (4) of the Act are repealed and the following substituted:

             (3)  An employee who, before his or her appointment by the board, had been contributing to a registered retirement savings arrangement may elect to continue his or her contributions to that arrangement by advising the board within 60 days of beginning his or her employment.

             (4)  Where an employee makes an election under subsection (3), the board may provide to the employee an amount for contribution to the registered retirement savings arrangement in which the employee participates not exceeding that which it would have otherwise contributed to the fund with respect to that person.

 

        3. Paragraph 5(b.1) of the Act is amended by deleting the references "paragraphs 3(1)(b) and (c)" and substituting the references "paragraphs 3(1)(b), (c) and (c.1)".

 

        4. Section 6 of the Act is repealed and the following substituted:

Charges upon fund

        6. All pensions, payments and refunds, and all expenses of the administration of this Act are a charge upon and payable out of the fund and if at any time there is not sufficient money at the credit of the fund for those purposes as they fall due for payment the Minister of Finance shall pay to the board an amount to cover the deficiency, and the board shall deposit that amount to the fund.

 

        5. Section 8 of the Act is repealed and the following substituted:

Investments

        8. All investments and reinvestments under section 7 shall conform to the investment requirements of

             (a)  section 37 of the Pension Benefits Act, 1997; and

             (b)  the regulations made under section 78 of that Act.

 

        6. Subsection 9(1) of the Act is repealed and the following substituted:

Trust account

        9. (1) All money paid into the fund shall be deposited to the credit of the fund in a trust account kept by a custodian approved by the board.

 

        7. (1) Subsection 12(1) of the Act is repealed and the following substituted:

Contributions to fund

      12. (1) An employee shall contribute to the fund an amount set by directive of the Minister of Finance provided that an employee's contributions in a year shall not exceed the lesser of

             (a)  9% of the employee's compensation from the board or an employer referred to in paragraphs 3(1)(b), (c) and (c.1) for the year; and

             (b)  $1,000 plus 70% of the employee's total pension credits for the year

or another limit as prescribed by the Income Tax Act (Canada).

             (2)  Subsection 12(3.1) of the Act is repealed and the following substituted:

          (3.1)  The board and an employer referred to in paragraphs 3(1)(b), (c) and (c.1) shall contribute to the fund an amount equal to the contributions paid by their employees under this section and additional amounts required to be paid by an employer under the Pension Benefits Act,1997 and the rateable share of those additional amounts shall be determined by the board where

             (a)  contributions in any month will not be less than the amount, if any, identified by the actuary as necessary to maintain registration of the plan under the Pension Benefits Act, 1997;

             (b)  contributions in any month will not be more than the amount, if any, identified by the actuary as the maximum amount permissible in order to maintain registration of the plan under the Income Tax Act (Canada); and

             (c)  those contributions are eligible contributions as that term is defined in the Income Tax Act (Canada).

          (3.2)  For the purpose of subsection (1), the terms "compensation" and "total pension credits" shall have the meaning assigned to them in the Income Tax Act (Canada).

 

        8. Subsection 13(1) of the Act is repealed and the following substituted:

Payments by government

      13. (1) Where a pension has been awarded to an employee under this Act and in determining the amount of the pension a period referred to in paragraph 19(1)(e) was counted as pensionable service, the Minister of Finance shall pay to the board on March 31 in a year during which or part of which the pension was paid, an amount bearing the same proportion to the pension as that period bears to the whole of the pensionable service taken into account in determining the amount of the pension, and the board shall deposit that amount to the fund.

 

        9. Paragraph 15(1)(d) of the Act is repealed.

 

      10. Section 17 of the Act is repealed.

 

      11. (1) Subsection 18(1) of the Act is repealed and the following substituted:

Amount of pension

      18. (1) The annual amount of pension awarded under section 16 shall be equal to:

             (a)  2% of pensionable salary up to the average year's basic exemption for the same 5 years used in determining pensionable salary;

             (b)  1.4% of pensionable salary in excess of the same average year's basic exemption and up to the average year's maximum pensionable earnings for the same 5 years used in determining pensionable salary; and

             (c)  2% of pensionable salary in excess of the same average year's maximum pensionable earnings;

with the total multiplied by

             (d)  the employee's pensionable service.

             (2)  Section 18 of the Act is amended by adding immediately after subsection (1) the following:

          (1.1)  In addition to the pension under subsection (1), where an employee retires prior to age 65, a bridge pension shall be payable until the employee turns age 65, and the annual amount of that pension shall be equal to

             (a)  0.6% of pensionable salary in excess of the average year's basic exemption and up to the average year's maximum pensionable earnings for the same 5 years used in determining pensionable salary,

multiplied by

             (b)  the employee's pensionable service.

          (1.2)  The board, with the approval of the minister, may issue a directive to exempt a person or class of persons from the application of subsections (1) and (1.1).

             (3)  Subsection 18(2) and (3) of the Act are repealed and the following substituted:

             (2)  A pension awarded under this Act, whether on retirement, termination of employment or termination of the plan, shall not exceed the maximum allowable benefit payable as determined under the Income Tax Act (Canada).

             (3)  Subsection (2) shall not apply to an annual pension of $300 or less for each year of pensionable service before January 1, 1992 or to the portion of the pension derived from an employee's voluntary contributions on account of current service.

 

      12. The Act is amended by adding immediately after section 18.1 the following:

Offer of re-employment

   18.2 (1) A pensioner who has retired under the pension plan upon termination of employment but has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada) may be re-employed in a pensionable position.

             (2)  Where a pensioner accepts an offer of re-employment under this section, his or her pension shall be cancelled and, subject to the making of contributions in accordance with this Act, the period of subsequent employment shall, in calculating a pension upon subsequent retirement, be added to the years of pensionable service accumulated before his or her first retirement and the pension shall be calculated in accordance with section 18 as if the award of the former pension had not occurred.

 

      13. (1) Paragraph 19(1)(c) of the Act is amended by adding immediately before the word "the" the first time it occurs, the words and comma "in respect of service before 1992,".

             (2)  Subsection 19(1) of the Act is amended by adding immediately after paragraph (c) the following:

          (c.1)  the period during which an employee is on an authorized unpaid leave of absence or reduced pay, subject to section 19.1;

             (3)  Paragraph 19(1)(f) of the Act is amended by adding immediately before the word "the" the first time it occurs, the words and comma "subject to the limits on prescribed compensation set out in the regulations made under the Income Tax Act (Canada),".

             (4)  Subsection 19(4) of the Act is repealed.

 

      14. The Act is amended by adding immediately after section 19 the following:

Periods of unpaid leave or reduced pay

   19.1 (1) In this section

             (a)  "actual salary" means the remuneration actually received by the employee during a period of reduced pay;

             (b)  "nominal salary" means the salary of the employee in effect before a period of reduced pay or leave of absence without pay and any subsequent annual increments accorded by the regular salary program of the university or an employer referred to in paragraphs 3(1)( b), (c) and (c.1); and

             (c)  "period of reduced pay" means a period after 1991

                      (i)  in each year of which the employee renders services to the board or an employer referred to in paragraphs 3(1)(b), (c) and (c.1), and

                     (ii)  in each year of which the actual salary received by the employee is less than the nominal salary as a consequence of the employee and the board or an employer referred to in paragraphs 3(1)(b), (c) and (c.1) having entered into a reduced pay arrangement.

             (2)  An employee who is on an authorized unpaid leave of absence may have that period credited as pensionable service, where

             (a)  during the period the employee continues to contribute to the fund based on the employee's nominal salary;

             (b)  the employee elects within the lesser of 90 days after returning from that authorized leave and the date of termination from the employer to purchase the period of leave, and contributes to the fund an amount to be prescribed based on the employee's nominal salary; or

             (c)  the employee elects after expiration of the period referred to in paragraph (b) and contributes to the fund an amount to be prescribed based on the employee's salary at the date of election to purchase.

             (3)  An employee who has completed at least 36 months employment and has entered into a reduced pay arrangement, as approved by the board or, subject to the board's approval, by an employer referred to in paragraphs 3(1)(b), (c), or (c.1) shall, where the reduced pay arrangement so provides, have that period of reduced pay credited as pensionable service, subject to the limits set out in subsection (4) and provided that

             (a)  pensionable service under this section shall be credited in full for the duration of the period of reduced pay;

             (b)  contributions made to the fund by the employee and the board or an employer referred to in paragraphs 3(1)(b), (c) or (c.1) shall be based on the employee's nominal salary; and

             (c)  the employee's nominal salary shall be used in the determination of pensionable salary.

             (4)  Notwithstanding subsection (2), the pensionable service credited under this section shall be limited to a cumulative maximum of 5 years in respect of periods of unpaid leave of absence or periods of reduced pay plus an additional 3 years in respect of periods of parenting and shall be subject to the limits on prescribed compensation set out in the regulations made under the Income Tax Act (Canada).

 

      15. Section 22 of the Act is repealed.

 

      16. Section 23 of the Act is repealed and the following substituted:

Survivor's allowance

      23. (1) Where an employee

             (a)  dies while in receipt of a pension;

             (b)  is entitled to a pension on retirement under section 15, and dies after retirement but before receiving a pension; or

             (c)  is entitled to a pension on retirement under section 15, and dies before retirement,

the board shall award to the surviving principal beneficiary an allowance equal to 60% of the pension being paid to the employee or to which the employee is entitled at the date of death, without actuarial reduction, and on the death of the surviving principal beneficiary an allowance which the surviving principal beneficiary was receiving at the date of death, if the employee or surviving principal beneficiary leaves a child or children under age 18, shall be paid by the board to the guardian of the child or children to be expended at the direction of the board for the support, maintenance and education of each child until the child reaches age 18, and where there are 2 or more children each child shall share equally in the benefits to be derived from the allowance.

             (2)  Where an employee referred to in paragraph (1)(a) dies leaving no surviving principal beneficiary, the survivor's allowance that would have been paid had there been a surviving principal beneficiary shall be paid by the board to the guardian of the employee's surviving children to be expended at the direction of the board for the support, maintenance and education of each child until the child reaches age 18, and where there are 2 or more children, each child shall share equally in the benefits to be derived from the allowance.

             (3)  Notwithstanding subsections (1) and (2), the age limit of 18 set out in those subsections is increased to 24 while the child is in full-time attendance at a school or post-secondary institution, or is infirm.

             (4)  With respect to service after 1996, where the commuted value of the survivor's allowance payable under paragraphs (1)(b) and (c) is less than the commuted value of the employee's deferred pension benefit, the survivor's allowance shall be increased so as to have a commuted value equal to the commuted value of the employee's deferred pension benefit.

             (5)  The surviving principal beneficiary may elect to receive the commuted value of the survivor's allowance payable under paragraphs (1)(b) and (c) as a lump sum cash refund or a transfer to a registered retirement savings arrangement in which the surviving principal beneficiary participates provided that the surviving principal beneficiary meets the terms and conditions required by the registered retirement savings arrangement.

             (6)  Where an employee referred to in subsection (1) has not reached the age of 65 years at the date of his or her death, the survivor's allowance shall include 60% of the bridge pension that the employee was receiving or was entitled to receive under subsection 18(1.1) and that amount shall be payable up to and including the month in which the deceased employee would have turned 65.

 

      17. Section 26 of the Act is repealed and the following substituted:

Repayment of contributions to survivor

      26. Where an employee dies before becoming entitled to a pension under this Act, the board shall pay to a surviving principal beneficiary the amount the employee has contributed to the fund, together with interest at the prescribed rate.

 

      18. Section 27 of the Act is repealed and the following substituted:

Repayment of contributions of deceased employees

      27. (1) Where an employee dies before becoming entitled to a pension under this Act and leaves no principal beneficiary, the board shall pay to the employee's executor or administrator the amount the employee has contributed to the fund together with interest at the prescribed rate.

             (2)  When an employee or deferred pensioner dies and leaves no principal beneficiary, the board shall pay to the employee's or deferred pensioner's executor or administrator the following benefit:

             (a)  where the employee was in receipt of a pension, an amount equal to the amount the employee has contributed to the fund, with interest at the prescribed rate, credited to the date of retirement, less the total of pension payments received by the employee; or

             (b)  where the employee or deferred pensioner was entitled to a pension on retirement under this Act and dies before receiving a pension, the following amounts:

                      (i)  in respect of pensionable service before January 1, 1997, the employee's contributions together with interest at the prescribed rate, and

                     (ii)  in respect of pensionable service on and after January 1, 1997, the commuted value of the pension.

 

      19. Section 29 of the Act is repealed.

 

      20. (1) Paragraph 29.1(2)(b) of the Act is repealed and the following substituted:

             (b)  employees of an employer referred to in paragraphs 3(1)(b), (c) and (c.1) who are employed full-time or part-time for a fixed term of employment,

             (2)  Subsection 29.1(3) of the Act is repealed and the following substituted:

             (3)  A directive prescribed under subsection (2) may establish the terms and conditions upon which prior service with the board or an employer referred to in paragraph 3(1)(b), (c) or (c.1) may be counted as pensionable service under this Act and may provide for matters relating to the prior service.

 

      21. Section 29.2 of the Act is repealed.

 

      22. (1) Subsection 35(2) of the Act is amended by deleting the phrase and commas ", other than section 17,".

             (2)  Paragraph 35(3)(a) of the Act is amended by deleting the phrase and commas ", other than section 17,".