This is an official version. Copyright © 2009: Queen's Printer, Important Information
Statutes of Newfoundland and Labrador 2009 AN ACT TO AMEND THE GOVERNMENT MONEY
PURCHASE PENSION (Assented to Analysis 1.
S.2 R&S 2.
S.4 R&S 3.
S.4.1 Added 4.
S.5 R& 5.
S.7 R&S 6.
S.8 R&S 7.
S.9 Rep. 8.
S.10 Amdt. 9.
S.11.1 Amdt. 10.
S.12.1 Added 11. Sch. A R&S Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: RSNL1990 cG-6 1. Section 2 of the Government Money Purchase Pension Plan Act is repealed and the following substituted: Definitions 2. In this Act (a) "cohabiting partner" (i) in relation to a member who has a spouse, means a person who is not the spouse of the member who has cohabited continuously with the member in a conjugal relationship for not less than 3 years, or (ii) in relation to a member who does not have a spouse, means a person who has cohabited continuously with the member in a conjugal relationship for not less than one year and is cohabiting or has cohabited with the member in the preceding
year; (b) "custodian" means the trustee or insurer that the minister may appoint to administer the fund; (c) "earnings" means the amount of gross normal remuneration received by the employee but excludes overtime and other remuneration which is not part of the basic remuneration unless those amounts are specifically included as part of a collective agreement; (d) "effective
date" means (e) "employee" means an employee of an employer who is not eligible to participate in another government sponsored pension plan of that employer, but does not include students or casual relief workers; (f) "employer"
means the government of the province or (i) a crown corporation, agency or board of the province, (ii) a non-profit public organization which has close affiliations with the province whose primary function is to provide public services which would normally be provided by the province if the organization were not to exist, or (iii) an organization that
is a participating employer under the
Public Service Pensions Act, 1991 where the entity referred to in subparagraph (i), (ii) or (iii) has
applied to have the plan extended to its designated employees and that
application has been approved by the minister; (g) "fund" means the investment fund referred to in section 12; (h) "inactive member" means a person who has ceased to be an employee but has not withdrawn his or her contributions from the plan; (i) "member" means an employee or an inactive member; (j) "minister" means the minister appointed under the Executive Council Act to administer this Act who shall act as trustee for the plan; (k) "plan" means the pension plan for employees as set out in this Act, which shall be named the "Government Money Purchase Pension Plan"; (l) "principal beneficiary" means the spouse of a member, or where a member has a cohabiting partner, the member's cohabiting partner; (m) "service" means service with an employer including those periods when the employee is on lay-off or other inactive status but has a right of recall or call back by agreement with the employer; and (n) "spouse" means a person who (i) is married to the member, (ii) is married to the member by a marriage that is voidable and has not been voided by a judgment of nullity, or (iii) has gone through a
form of marriage with the member, in good faith, that is void and is cohabiting
or has cohabited with the member within the preceding year. 2. Section 4 of the Act is repealed and the following substituted: Deduction amounts 4. (1) Each employee who participates in the plan shall contribute
to it an amount equal to 5% of the employee's earnings or a greater amount that
may be established by a directive of the minister. (2) An employer shall contribute to the fund an
amount equal to the contributions of each employee under this Act. (3) All contributions made under this section
shall be paid to the custodian before the end of the calendar month immediately
following the month during which the contributions were made. (4) The government of the province may reduce its
contribution under subsection (2), either for all its employees or for a group
of its employees, by an amount that the Lieutenant-Governor in Council prescribes,
but the amount of the reduction shall not exceed 4.5% of the earnings of the
government's employees to whom the reduction applies. (5) An employer that is not the government of the province shall, where directed to do so by order of the Lieutenant-Governor in Council, reduce its contribution under subsection (2), either for all its employees or for a group of its employees, by an amount that the Lieutenant-Governor in Council prescribes, but the amount of the reduction shall not exceed 4.5% of the earnings of the employees to whom the reduction applies. 3. The Act is amended by adding immediately after section 4 the following: Leave without pay 4.1 (1) An employee who is on authorized leave without pay may make contributions in respect of that period of leave. (2) Notwithstanding subsection (1), the types of
authorized leave without pay for which contributions may be made and the terms
and conditions for determining the amount of contributions shall be established
by a directive of the minister. (3) The employer who authorized the period of leave without pay shall pay an amount equal to the employees contribution under subsection (1). (4)
The crediting of periods of leave without
pay shall be subject to the limitations of the Income Tax Act ( 4. Section 5 of the Act is repealed and the following substituted: Pre retirement benefits 5. (1) An employee who stops being an employee and who has completed less than 2 years of service or another period specified for vesting and locking in under the Pension Benefits Act, 1997 may elect to receive a refund of his or her contributions plus the accumulated earnings on those contributions. (2) An employee who stops being an employee and
who has completed more than 2 years of service or another period specified for
vesting and locking in under the Pension
Benefits Act, 1997 may elect to transfer the value of the funds that have
accumulated to his or her credit in the fund to a locked in retirement account,
another registered pension plan, or another retirement savings arrangement
approved by the Superintendent of Pensions appointed under the Pensions Benefits Act, 1997. (3) Upon the death of a member who has completed
less than 2 years of service or another period specified for vesting and locking
in under the Pension Benefits Act, 1997 the principal beneficiary or designated
beneficiary shall receive a cash payment of the amount that has accumulated to
the deceased members credit. 5. Section 7 of the Act is repealed and the following substituted: Vesting and locking-in 7. Where an employee has participated in the plan for 2 years or in
accordance with the vesting and locking-in provisions of the Pension Benefits Act, 1997, all
contributions made under sections 4 and 4.1, together with the accumulated
earnings on those contributions, shall be permanently vested and locked in
until the employee's retirement, at which time the amount standing to his or
her credit in the fund may be transferred to a retirement arrangement approved
by the Superintendent of Pensions appointed under the Pension Benefits Act, 1997. 6. Section 8 of the Act is repealed and the following substituted: Retirement benefits (a) at the end of the month in which he or she reaches the age
of 65 years; (b) at
any time during the 10 year period immediately preceding the retirement date
referred to in paragraph (a); or (c) at
any time following the retirement date referred to in paragraph (a) but, in any
event, no later than the end of the year in which he or she reaches the age at
which a pension is required to commence being paid under the provisions of the Income Tax Act (Canada), he or she is entitled to receive an
immediate pension which can be purchased with the amount that has accumulated
to his or her credit in the fund at that time. (2) An
employee with a principal beneficiary shall receive a pension in the form
specified by Article VI of Schedule A with a survivor benefit of at least 60%,
payable upon his or her death to the principal beneficiary during the principal
beneficiarys lifetime. (3) Where
the employee does not have a principal beneficiary, the employee may designate
another person as a beneficiary. 7. Section 9 of the Act is repealed. 8. Section 10 of the Act is amended by deleting
the word "participating". 9. Section 11.1 of the Act is amended by deleting the word "and" at the end of paragraph (c) and by adding immediately after that paragraph the following: (c.1) determining the types of authorized leave without pay for which contributions may be made; (c.2) determining the amount of contributions required to be paid where an employee was on authorized leave without pay; and 10. The Act is amended by adding immediately after section 12 the following: Committee 12.1 The
Lieutenant-Governor in Council may appoint a committee to assist the minister
in the administration of this Act and may prescribe the duties of the committee
and designate the matters respecting which the committee may make
recommendations to the minister. 11. Schedule A of the Act is repealed and the following substituted: Schedule A Money Purchase Pension Plan For Part-Time Employees of The ARTICLE I The following terms wherever used in this instrument shall, for the purposes of it, unless the context otherwise requires have the meaning set out below: 1. "Administrator" means the person who, on the recommendation of the Committee, the Minister may from time to time appoint to administer the Plan. 2. "Cohabiting Partner", (a) in relation to a Member who has a Spouse, means a person who is not the Spouse of the Member who has cohabited continuously with the Member in a conjugal relationship for not less than 3 years, or (b) in relation to a Member who does not have a Spouse, means a person who has cohabited continuously with the Member in a conjugal relationship for not less than one year, and is cohabiting or has cohabited with the Member within the preceding year. 3. "Committee" means the Government Money Purchase Pension Plan (GMPP) Committee appointed by the province. 4. "Custodian" means the Trustee or Insurer that the Minister may from time to time appoint to administer the Fund. 5. "Designated Beneficiary" means a person so designated by an Employee in accordance with Article XI (Designated Beneficiaries). 6. "Earnings" means the amount of gross normal remuneration received by the Employee but excludes overtime and other remuneration which is not part of the basic remuneration unless those amounts are specifically included as part of a collective agreement. 7. "Effective Date" means 8. "Employee" means an Employee of an Employer who is not eligible to participate in another government sponsored pension plan of that Employer, but excludes students and casual relief workers. 9. "Employer" means the government of the province or: (a) a Crown Corporation, Agency, or Board of the province; (b) a non-profit public organization which has close affiliations with the province whose primary function is to provide public services which would normally be provided by the province if the organization were not to exist; or (c) an organization that is a participating employer under the provisions of the Public Service Pensions Act, 1991; where the entity referred to in paragraph (a), (b) or (c) has applied to have the plan extended to its designated employees and that application has been approved by the minister. 10. "Fund" means the investment fund
referred to in section 12 of the Government
Money Purchase Pension Plan Act. 11. "Inactive Member" means a person who has ceased to be an Employee but has not withdrawn his or her contributions from the Plan. 12. "Income Tax Act" means the Income Tax Act, R.S.C. 1985, c.1 (5th Supp), as amended and the regulations under it. 13. "Insurer" means a life insurance company or other entity
authorized to transact annuity business in 14. "Interest" means the investment income resulting from investment of the Members Account as determined in accordance with Article XIV (Custodian and Accounts). 15. "Investment Counsel" means a person or organization that the Committee may from time to time appoint for purposes of the Plan whose function is to give advice to the Committee on the investment of the Fund. 16. "Member" means an Employee or Inactive Member. 17. "Members Account" means the aggregate of contributions
made in accordance with Sections 1, 2, 3 and 5 of Article 18. "Minister" means the Minister of Finance for the 19. "Pension Adjustment" means the aggregate of the Members Pension Credits for the calendar year, under the Plan of the Employer in which the Member participates. 20. "Pension Benefits Act" means the Pension Benefits Act, 1997, SNL1996 cP-4.01, as amended and the regulations thereunder. 21. "Pension Credit" in respect of a defined contribution provision or plan means the total of all contributions made under the provision or plan in the year by the Employee and by the Employer. 22. "Plan" means the pension plan for Employees as set out in this instrument, which shall be named the "Government Money Purchase Pension Plan." 23. "Plan Year" means the period from the Effective Date to the next following December 31st and from each January 1st to the next following December 31st in each subsequent year. 24. "Principal Beneficiary" means the Spouse of a Member, or where the Member has a Cohabiting Partner, the Members Cohabiting Partner. 25. "Service" means service with an Employer including those periods when the Employee is on lay-off or other inactive status but has rights of recall or call back by agreement with the Employer. 26. "Spouse" means, except for the purposes of Article XIII, a person, who (a) is married to the Employee; (b) is married to the Employee by a marriage that is voidable and has not been voided by a judgment of nullity; or (c) has gone through a form of a marriage with the Employee, in good faith, that is void and is cohabiting or has cohabited with the Employee within the preceding year. 27. "YMPE" means the years maximum pensionable earnings as defined under the Canada Pension Plan. ARTICLE II 1. Eligibility and Membership All Employees hired after the Effective Date must join the Plan on their date of employment. All Employees hired before the Effective Date may join the Plan from the Effective Date or at a later date. The Employees shall complete those forms that are required by the Administrator. 2. Explanation to Members The
Administrator shall provide a written description of the Plan to each Employer
for distribution to every person who is eligible to become a Member on or
before the date of eligibility. The description shall explain the terms and
conditions of the Plan and amendments to it as are applicable to the Member,
and shall set out the rights and duties of the Employee with reference to the
benefits available and the contributions payable under the Plan. The
Administrator shall, at the written request of the Member and at least
annually, provide each Member with a written benefit statement as required by
applicable provincial legislation. Within
60 days of an amendment to the Plan, the Administrator shall provide a similar
description of the amendment to each Employer for distribution to each Member affected
by the amendment. Upon
termination of employment, the Employer shall request the Administrator to
provide the Member with a written statement showing the benefits to which he or
she is entitled. Employers
are to distribute all information concerning the Plan to Members within the
timeframes referenced under the Pension Benefits Act. ARTICLE 1. Employee Contributions (a) Each Employee shall contribute to the Plan during a period of membership an amount equal to five percent of Earnings or such greater amount that may be established by a directive of the Minister. (b) The contributions shall be deducted from the Earnings by the Employer. 2. Employer Contributions The
Employer shall contribute to the Plan on behalf of each Employee an amount
equal to the Employees contributions or such other amount that may be
established by a directive of the Minister. 3. Contributions for Authorized Leave without Pay An
Employee who commences an authorized leave of absence without pay may be
permitted to make contributions in respect of that period of leave under terms
and conditions that may be established by a directive of the Minister. The
Employer shall be required to pay an amount equal to the Employees
contributions under this Section. All contributions under this Section are
subject to limitations contained in the Income Tax Act. 4. Payment to the Custodian The Employer shall pay to the Custodian all contributions made by or on behalf of Employees under this Article, within the calendar month following the month during which the contributions were made. 5. Voluntary Contributions Subject
to the limitations of Section 6 of this Article, the Employee may make
additional voluntary contributions to the Plan, which are
not required to be matched by the Employer. 6. Limitations on Contributions Notwithstanding Sections 1, 2, 3 and 5 of this Article, contributions made under those Sections may be returned to the person who made the contribution where the contribution is returned to avoid the revocation of the registration of the Plan under the Income Tax Act. To
avoid the revocation of the registration of the Plan under the Income Tax Act: (a) for an Employee and an Employer, the total amount of the Employees Pension Credit for the year in respect of the Employer under the Plan shall not exceed the lesser of (i) the money purchase limit for the year, and (ii) 18% of the Employee=s remuneration from the Employer for the year; or (b) for an Employee, the total amount of the Employee=s Pension Credit for the year in respect of an Employer under the Plan shall not exceed the money purchase limit for the year; and (c) no contributions may
be made by an Employee after the end of the calendar year in which the Employee
reaches the age at which a pension benefit is required to begin under the Income
Tax Act. ARTICLE IV 1. Normal Retirement (a) The normal retirement date of a Member shall be the first day of the month following attainment of age sixty-five provided the Member has completed two years of Service. (b) The pension payable to a Member on normal retirement shall be determined in accordance with Article V (Retirement Benefits). 2. Early Retirement (a) A Member may elect to retire at any time in the ten year period immediately preceding his or her normal retirement date and receive a pension provided the Member has completed two years of Service. (b) The pension payable to a Member on early retirement shall be determined in accordance with Article V (Retirement Benefits). 3. Postponed Retirement (a) A Member may elect to retire at any time after his or her normal retirement date but not later than the end of the year in which the Member reaches the age at which a pension benefit is required to begin under the Income Tax Act, provided the Member has completed at least two years of Service. (b) The pension payable to a Member on postponed
retirement shall be determined in accordance with Article V (Retirement Benefits). ARTICLE V 1. Normal or Postponed Retirement A Member who retires on or after his or her normal retirement date shall be entitled to receive a pension, which can be purchased with the value of the Members Account at the actual retirement date. 2. Early Retirement Pension A Member who retires before the normal retirement date shall be entitled to receive, from his or her retirement date, an immediate pension, which can be purchased with the value of the Members Account at the actual retirement date. 3. Benefit from Member Voluntary Contributions In addition to any other retirement benefits payable under this Article, a Member is entitled to receive either: (a) a refund of the
Members voluntary contributions made under Article (b) an annuity purchased
from an insurance company licensed to transact business in 4. Small Benefit Commutation If the annual lifetime pension payable at a Members normal retirement date is not more than 4% of the YMPE in the year of the Members termination of employment, or the value of the Members Account is not more than 10% of the YMPE in the year of the Members termination of employment, or such other amount as may be prescribed for this purpose by the Pension Benefits Act, the Member will receive a lump sum payment equal to the value of the Members Account in full satisfaction of his or her entitlement under the Plan. 5. Transfer of Refund to RRSP A Member who is entitled to receive a refund of contributions may elect to have that refund transferred directly on his or her behalf to a Registered Retirement Savings Plan. ARTICLE VI 1. Normal Form of Pension For a retiring Member with a Principal Beneficiary the normal form of pension is one which provides a lifetime pension income and further, upon the death of the retired Member, continues at sixty percent to the Principal Beneficiary, until the death of the Principal Beneficiary. 2. Optional Forms of Pension The retiring Member may elect another form of pension, which is acceptable to the Administrator and is permissible under the Pension Benefits Act and the Income Tax Act. 3. Transfer of lump sum to RRSP If
the person who is entitled to receive a lump sum payment under any form of
pension payable under the Plan is the Spouse or former spouse of the Member,
the Spouse or former spouse of the Member may elect to have that amount
transferred directly on his or her behalf to a Registered Retirement Savings
Plan. ARTICLE 1. If an Employee terminates employment prior to the normal retirement date, the terms of this Article shall apply. 2. Vesting and Locking-In (a) An Employee who terminates employment prior to
(b) Locking in refers
to the cash availability of funds in the Members Account and will be as follows: (a) With respect to contributions made prior to (b) With respect to contributions made on or after
3. Non Vested Termination An
Employee who terminates on or after 4. Vested Termination If
an Employee terminates employment on or after 5. Small Benefit Commutation If the annual lifetime pension payable at the Members normal retirement date is not more than 4% of the YMPE in the year of the Members termination of employment, or the value of the Members Account is not more than 10% of the YMPE in the year of the Members termination of employment, or such other amount as may be prescribed for this purpose by the Pension Benefits Act, the Member will receive a lump sum payment equal to the value of the Members Account in full satisfaction of his or her entitlement under the Plan. 6. Where a non-vested Employee terminates under Section 3 of this Article, the amount of the Employer contribution balance resulting from the termination shall be deposited to a forfeitures account to be used to reduce the administrative expenses of the Plan. ARTICLE VIII 1. While an Employee remains in employment with an Employer the Employee may neither: (a) withdraw his or her contributions from the Plan; nor (b) borrow against his or her contributions. ARTICLE IX 1. In the event of the death of a Member, a lump sum amount equal to
the value of the Member's Account on the date of death (the benefit) shall be
paid to the Principal Beneficiary, pursuant to the provisions under the Pension
Benefits Act. 2. In the event there is no Principal Beneficiary, the benefit shall be paid to the Members Designated Beneficiary as designated in accordance with Article XI (Designated Beneficiaries). 3. If there is no Designated Beneficiary or if the person designated by the Member as his or her Designated Beneficiary is not living at the time of the Members death, the benefit shall be paid to the Member's estate. 4. In the event of there being a doubt as to the identity of the Designated Beneficiary or as to whether the Designated Beneficiary is the person legally entitled to receive a benefit, payment of the benefit may be withheld for a reasonable time to permit investigation to be made. In this event, a Designated Beneficiary or claimant shall on demand be obliged to furnish all information and to produce proof of identity and of right to the benefits that may be reasonable in the circumstances. ARTICLE X 1. Reciprocal Transfer Agreements Reciprocal
transfer agreements may be entered into to provide for transfers between
registered pension plans. 2. Transfer from Employment (a) Where a reciprocal transfer agreement exists between an Employer and a previous employer, the Employer will accept deposits into the Members Account by way of transfer from the previous employer's registered pension plan in accordance with the terms of the reciprocal transfer agreement. (b) An Employee may pay into his or her Members Account, as permitted by the Income Tax Act, an amount received or receivable by him or her as a cash withdrawal benefit under another employee pension plan registered as such with the Canada Revenue Agency for purposes of the Income Tax Act. 3. Transfer to Other Employment Where
there exists a reciprocal transfer agreement between the Employer and the
subsequent employer of the Employee, transfer payments may be made into the
fund of the subsequent employer's pension plan. The amount of such a transfer
shall be determined in accordance with the Reciprocal Transfer Agreement but
the total amount transferred shall be the amount credited to the Member in the
Members Account as if the Member has vested under Article ARTICLE XI 1. The Designated Beneficiary shall be the Principal Beneficiary. 2. A Member without a Principal Beneficiary may designate in writing a person to receive a benefit payable under the Plan in the event of death prior to retirement. 3. A Member who has made a designation in accordance with Section 2 of this Article may from time to time alter or revoke the designation by filing with the Administrator the alteration or revocation in writing. 4. Once a Member has a Principal Beneficiary a prior designation made in accordance with Sections 2 or 3 of this Article shall be null and void. ARTICLE XII 1. No right of a person under the Plan is capable of being assigned, charged, anticipated, given as security or surrendered, and, for the purposes of this condition, (i) assignment does not include (A) assignment pursuant to a decree, order or judgment of a competent tribunal or a written agreement in settlement of rights arising out of a marriage or cohabiting partnership between a Member and the Members spouse or Cohabiting Partner or former spouse or Cohabiting Partner, on or after the breakdown of their marriage or Cohabiting Partner, or (B) assignment by the
legal representative of a deceased Member on the distribution of the Members
estate, and (ii) surrender does not
include a reduction in benefits to avoid the revocation of the registration of
the Plan under the Income Tax Act. ARTICLE
XIII 1. In the event of marriage breakdown, pension benefits will be divided
in accordance with a written separation agreement, or an order under the Family Law Act, RSNL1990 cF-2, as
amended. Such division is subject to Part VI of the Pension Benefits Act. 2. Pension benefits will be determined as if the Member had terminated
employment on the date of marriage breakdown. Where benefits are to be divided
pursuant to a separation agreement, the settlement to the spouse may not exceed
the limits imposed by the Pension Benefits Act. 3. If the Members benefits under the Plan are locked-in, locking-in
will also apply to the spouses settlement. In such event, the spouse may elect
to transfer the benefit to: (a) a locked-in retirement
account, which is a Registered Retirement Savings Plan which meets the
conditions of applicable legislation, or (b) another registered
pension plan of which the spouse is a member, provided such a plan accepts such
transfers, or (c) an insurance company
to purchase a deferred life annuity, meeting the conditions of applicable
legislation, or (d) a life income fund in the spouses name, or any other arrangement approved by the Superintendent of Pensions wherein the benefits so transferred will continue to be administered in
accordance with applicable legislation. ARTICLE XIV 1. The accounts shall be established and administered by the Custodian, in accordance with the terms of an agreement executed between the Minister and the Custodian and in accordance with the requirements for registered pension plans as outlined in the Income Tax Act and other applicable legislation. 2. The Custodian shall maintain and keep record of a separate account for each Member which will consist of: (a) all contributions made in accordance with the terms of the Plan by Employers and Employees; (b) all contributions credited to each Member on account of transfers pursuant to Article X (Transfers); (c) all additional voluntary contributions made by each Member; and (d) interest accrued on (a), (b) and (c). 3. Death and termination benefits under the Plan shall be provided directly from the Members Account. 4. Each Members Account shall be charged with the fees as outlined in the policy document of the Administrator as agreed to by the Committee. 5. Each Members Account shall have a fiscal year ending December 31st. ARTICLE XV 1. The Committee, on behalf of the Minister, is responsible for all matters relating to the administration of the Plan. The Committee may make any recommendations to the minister respecting the administration of the plan that it considers necessary. 2. The Committee shall keep a permanent record of minutes of its meetings and of its decisions. The quorum for meetings of the Committee may be fixed by the Committee. Any writing required to transmit or record decisions of the Committee shall be sufficiently executed when signed by the chairperson. In all other matters relating to the conduct of its affairs the Committee may make its own rules and regulations. 3. Upon the recommendation of the Committee, the Minister may modify, amend or revise the Plan from time to time to meet the aims and objectives of the Plan and satisfy the requirements of applicable legislation. 4. The Committee shall from time to time receive reports from the Investment Counsel and the Custodian. As a result of these reports the Committee may recommend certain courses of action to the Minister. 5. Payment of a benefit under the Plan shall be made only upon receipt of written request for it in the manner prescribed by the Administrator and upon submission of the relevant supporting evidence as the Administrator in his or her discretion may require. 6. All pension benefits must be provided under an arrangement acceptable
under the Pension Benefits Act and
the Income Tax Act. 7. The Administrator shall make available for inspection by eligible
individuals the documents and information concerning the Plan and the Fund as
prescribed by the Pension Benefits Act. 8. The Committee will advise the Canada Revenue Agency of any changes in
name or address of the appointed Administrator of the Plan within 30 days of
such change. 9. Beginning in 1991, the Employer will report to the Canada Revenue
Agency a Pension Adjustment for each Member. Such Pension Adjustment shall be
reported by the end of February of each calendar year. 10. The Plan includes and shall only include investments that: (a) are not prohibited investments under Section
8514(1) of the regulations to the Income Tax Act; and (b) are permitted investments under the Pension
Benefits Act. 11. Borrowing against the Plan is prohibited. ARTICLE XVI 1. No Member, Principal Beneficiary or Designated Beneficiary shall have any recourse under this Plan against a past, present or future Custodian, Administrator, Employer or other Employee or person acting on behalf of those persons or member of the Committee, and all those persons shall be free from all liability. 2. The Plan shall not: (a) give an Employee a right to be retained in the Service of an Employer; (b) prevent an Employer from discharging an Employee at any time; (c) give rise to a claim by anyone against the Employer for damages for any cause. 3. All contributions to and all benefits made from the Plan shall be payable
in the lawful currency of 4. In case the age of a Member is found to have been incorrectly stated, the Administrator is empowered to make or cause to be made those adjustments respecting the Member, for the purposes of the Plan that the Administrator shall consider equitable. ARTICLE XVII 1. Continuation of Plan The Minister intends to maintain
the Plan indefinitely, but reserves the right to amend the Plan or discontinue
the Plan in whole or in part. 2. Amendment to the Plan No amendment shall operate to
reduce the pension benefits, which have accrued to any Member before the date
of the amendment, based on Earnings up to the date of the amendment. 3. Termination of the Plan If the Plan is wound up, in part or
in whole, assets of the Plan, other than those in the forfeitures account, will
be distributed among Members of the Plan in a fair and equitable manner, as
determined by the Administrator and as approved by all relevant governmental authorities.
All expenses related to the wind up of the Plan shall be paid from the
forfeitures account with any residual amounts remaining in the account after
wind up returned to the Government of Newfoundland and If the Plan is wound up, in whole or in part, Employers shall not make further contributions to the Fund in respect of the Plan or the portion of the Plan being wound up, as applicable, except for amounts due, or that have accrued up to the effective date of the wind-up and have not been paid into the Fund as required by the Plan and the Pension Benefits Act, plus amounts required to be contributed pursuant to the requirements of the Pension Benefits Act. ©Earl G. Tucker, Queen's Printer |