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St. John's, Newfoundland and Labrador, Canada

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Statutes of Newfoundland and Labrador 2012


CHAPTER 36

AN ACT TO AMEND THE PUBLIC SERVICE PENSIONS ACT, 1991

(Assented to December 22, 2012)

Analysis


        1.   S.5 Amdt.
Employee contributions

        2.   S.6 R&S
Deductions paid to fund

        3.   S.6.1 Rep.
Rejoining pension plan

        4.   S.7 Amdt.
Repayment of contributions

        5.   S.7.1 Amdt.
Election upon termination

        6.   S.8 Amdt.
Purchase of prior service

        7.   S.8.1 Amdt.
Purchase by designated employees

        8.   S.9 Amdt.
Pension rights on becoming an employee

        9.   S.11 Amdt.
Leave of absence without pay

      10.   S.13 R&S
Transfer from Government Money Purchase Pension Plan

      11.   S.14.1 Amdt.
Transfer

      12.   S.19 Amdt.
Pension upon retirement

      13.   S.23.1 Amdt.
Death of employee

      14.   S.24 Amdt.
Estate provision

      15.   S.25 Amdt.
When pensions payable

      16.   S.26.1 Amdt.
Subsections apply notwithstanding

      17.   S.27 R&S
Pension shall not be assigned or attached

      18.   S.28 Rep.
Attachment

      19.   S.34 Amdt.
Regulations re certain employees


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

SNL1991 c12
as amended

        1. Subsection 5(3) of the Public Service Pensions Act, 1991 is amended by striking out the words "together with interest at the prescribed rate".

 

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 Section 6 of the Act is repealed and the following substituted:

Deductions paid to fund

        6. (1) The government of the province shall pay out of the Consolidated Revenue Fund and pay into the pension fund

             (a)  an amount equal to the contributions of its employees under this Act unless otherwise directed by this Act or a directive of the minister; and

             (b)  an additional amount that may be prescribed.

             (2)  The employers of those persons included in the pension plan under an Act of the Legislature or by a directive made under section 34 shall pay into the pension fund

             (a)  an amount equal to the contributions of their employees under this Act unless otherwise directed by this Act or a directive of the minister; and

             (b)  an additional amount that may be prescribed.

             (3)  Excess government or employer contributions required to match employee contributions paid in accordance with subsection 5(3) shall be refunded to the government or the employer.

             (4)  Where the amount of government contributions under subsection (1) or employer contributions under subsection (2) exceeds the amount of the annual deductible contributions to a registered plan permitted under the Income Tax Act (Canada), the amount of the excess, as determined at the end of the calendar year in which the contributions are made, shall be paid from the pension fund to the supplementary account no later than the last day of February in the immediately following calendar year.

             (5)  Where the contribution of the government of the province or another employer to whom this Act applies was reduced under this Act between the period of April 1, 1993 and March 31, 1996, an employee or a former employee may elect to contribute an amount, in addition to the amount which he or she is or was required to contribute under section 5, to be calculated in accordance with the terms and conditions which the Lieutenant-Governor in Council may prescribe by regulation, which would place the employee or former employee in the position he or she would have been in respecting an award of pension if the government of the province, or another employer to whom this Act applies, had not reduced its contribution.               

 

        3. Section 6.1 of the Act is repealed.

 

        4. (1) Subsection 7(1.1) of the Act is amended by striking out the words "personal representative" and substituting the word "estate".

             (2)  Subsections 7(2), (3) and (4) of the Act are repealed.

 

        5. (1) Subsection 7.1(1) of the Act is repealed and the following substituted:

Election upon termination

      7.1 (1) A terminating employee with at least 5 years of pensionable service who is ineligible for an immediate, unreduced pension may elect within 180 days after termination

             (a)  a transfer of the commuted value of the pension entitlement of the employee, in accordance with paragraph 40(1)(a) of the Pension Benefits Act, 1997;

             (b)  a deferred pension in accordance with section 20; or

             (c)  a return of the contributions made by that employee, with interest at a rate prescribed, for periods of pensionable service credited

                      (i)  before January 1, 1987, and

                     (ii)  before January 1, 1997 where the employee had less than 10 years of pensionable service and is less than 45 years of age,

and a transfer of the commuted value of the terminating employee's pension entitlement based on the remaining periods of pensionable service under  paragraph (a).

             (2)  Subsection 7.1(3) of the Act is repealed and the following substituted:

             (3)  An employee who elects or is considered to have elected to receive a deferred pension may revoke that election and elect a transfer under paragraph (1)(a), calculated at the date of election.

 

        6. (1) Subsection 8(1) of the Act is amended by striking out the words "refund of contributions or a commuted value upon termination" and substituting the words "termination benefit".

             (2)  Section 8 of the Act is amended by adding immediately after subsection (1) the following:

          (1.1)  Where an employee to whom subsection (1) applies transferred his or her termination benefit to a registered retirement savings plan, a deferred profit sharing plan or a registered pension plan, payment by that employee for the purchase of prior pensionable service shall include a transfer of the funds remaining in the registered retirement savings plan, the deferred profit sharing plan or the registered pension plan from the amount originally transferred.

             (3)  Subsection 8(2) of the Act is amended by striking out the words "refund of contributions or a commuted value" and substituting the words "termination benefit".

             (4)  Section 8 of the Act is amended by adding immediately after subsection (4) the following:

             (5)  For the purpose of subsections (1) and (3.1), periods of pensionable service may be credited where that service qualifies as a period of eligible service under the Income Tax Act (Canada).

 

        7. Subsection 8.1(1) of the Act is repealed and the following substituted:

Purchase by designated employees

      8.1 (1) Where an employee was formerly employed by a company owned by the government of the province, the employee may elect to purchase as pensionable service the period of full time service worked with that company while that company was owned by government, provided that service qualifies as eligible service under the Income Tax Act (Canada).

 

        8. Section 9 of the Act is amended by adding immediately after subsection (3) the following:

             (4)  For the purpose of subsections (1) and (2), periods of pensionable service may be credited where that service qualifies as a period of eligible service under the Income Tax Act (Canada).

 

        9. (1) Subsection 11(5) is amended by striking out the references "(2), (6) and (8)" and substituting the references "(2) and (8)".

             (2)  Subsections 11(6) and (7) of the Act are repealed.

             (3)  Section 11 of the Act is amended by adding immediately after subsection (8) the following:

             (9)  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 regulations made under the Income Tax Act (Canada).

 

      10. Section 13 of the Act is repealed and the following substituted:

Transfer from Government Money Purchase Pension Plan

      13. The minister shall accept the transfer of funds from the Government Money Purchase Pension Plan created by the Government Money Purchase Pension Plan Act and establish the amount of related pensionable service in accordance with those terms and conditions that may be prescribed. 

 

      11. Subsection 14.1(2) of the Act is repealed and the following substituted:

             (2)  Subsection (1) applies where the employee

             (a)  has terminated his or her membership in the exporting pension plan;

             (b)  has not received a termination benefit from the exporting pension plan; and

             (c)  is entitled to transfer his or her full entitlement from the exporting pension plan.

 

      12. Section 19 of the Act is amended by adding immediately after subsection (5) the following:

             (6)  An employee who has reached advanced retirement age and has been credited with not less than 5 years of pensionable service may elect to retire and receive an actuarially reduced pension.

             (7)  For the purpose of subsection (6), an actuarially reduced pension refers to a pension that has been reduced by an amount determined by the actuary that reflects the fact that the pension is being paid from a date that is earlier than the date the employee, based on his or her service, would be eligible for an unreduced pension.

 

      13. Subsection 23.1(2) of the Act is amended by deleting the phrase "and subsections 7(2), (3) and (4) apply to the transfer".

 

      14. Section 24 of the Act is amended by striking out the words "in accordance with subsection 7(2)" and substituting the words "to the estate".

 

      15. Section 25 of the Act is amended by adding immediately after subsection (2) the following:

             (3)  Pension payments shall be equal and periodic.

 

      16. Section 26.1 of the Act is amended by striking out the reference "6(4.1)" and substituting the reference "6(4)".

 

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

Pension shall not be assigned or attached

      27. A pension awarded under this Act shall not be assigned, charged, attached, anticipated or given as security and is exempt from execution, seizure or attachment, and a transaction purporting to assign, charge, attach, anticipate or give as security such money is void, except in accordance with the Pension Benefits Act, 1997.

 

      18. Section 28 of the Act is repealed.

 

      19. Paragraph 34(1)(g) of the Act is repealed and the following substituted:

             (g)  the Public Service Credit Union if those persons were employed on a full time basis before January 1, 2013;