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Revised Statutes of Newfoundland 1990


CHAPTER P-17

AN ACT TO PROVIDE FOR THE PORTABILITY OF PENSIONABLE SERVICE BETWEEN CERTAIN PENSION PLANS GUARANTEED BY THE PROVINCE

Analysis

1. Short title

2. Interpretation

3. Portability election

4. Payment of contributions

5. Crediting of service

6. Deficiency and surplus

7. War service

8. Adding to Schedule

Schedule


Short title

1. This Act may be cited as the Portability of Pensions Act.

1983 c11 s1

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Interpretation

2. (1) In this Act

(a) "pension plan" means a pension plan, retirement benefit or arrangement

(i) as constituted under the authority of, or

(ii) as set out in,

an Act listed in the Schedule or added to the Schedule by order; and

(b) "employee" means

(i) an employee who transfers immediately from one pension plan to another without taking a refund,

(ii) a former employee who has left his or her pension contributions on deposit in a pension plan, or

(iii) a deferred pensioner,

and includes a person to whom an Act listed in the Schedule, or added to the Schedule by order, applies.

(2) This Act shall be read as one with the Acts listed in the Schedule, or added to the Schedule by order.

1983 c11 s2

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Portability election

3. (1) An employee, covered under a pension plan, who transfers his or her employment to another body whose pension plan is established under one of the pension plans may elect to have the pensionable service transferred to that other pension plan where the employee has not received a refund of contributions from the exporting pension plan.

(2) Subsection (1) applies to pensionable service accumulated before or after May 31, 1983.

(3) An election may be made under subsection (l) by an employee who transfers, or has transferred his or her employment before, on or after May 31, 1983.

(4) An election made under this section is irrevocable.

1983 c11 s4

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Payment of contributions

4. (1) Upon an election being made under section 3, the exporting pension plan shall pay to the importing pension plan the employee and employer contributions to the pension plan with respect to the employee together with interest.

(2) The rate of interest referred to in subsection (1) shall be the rate of interest applicable to refunds of the exporting pension plan.

(3) For the purposes of this section, employee contributions shall include contributions considered to have been made where the service was initially credited under a non-contributory pension plan superseded by a pension plan at the same contribution rate as if the pension plan had applied throughout the non-contributory period.

(4) For the purposes of this section, employer contributions shall include contributions considered to have been made by the government of the province when all contributions were paid into the Consolidated Revenue Fund or where the service was initially credited under a non-contributory pension plan superseded by a pension plan.

(5) The amount of the contributions considered to have been made under subsection (4) shall be equal to the amount, together with interest, paid or considered to have been paid by the employee throughout the period of service being credited.

1983 c11 s5; 1986 c47 s1

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Crediting of service

5. Notwithstanding the nature of the previous pension plan of the employee, the period of pensionable service to be credited under the importing pension plan is the period of pensionable service credited under the exporting pension plan.

1983 c11 s6

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Deficiency and surplus

6. (1) Where there is a deficiency in the amount of contributions paid under section 4, the Minister of Finance shall pay the amount of the deficiency to the importing pension plan out of the Consolidated Revenue Fund.

(2) Where there is a surplus in the amount of contributions paid under section 4, it shall be paid over to the Consolidated Revenue Fund.

(3) The amount of the deficiency or surplus for the purposes of this section shall be the difference between

(a) the amount transferred under section 4; and

(b) an amount to be calculated on the basis of twice the beginning salary of the affected employee, times the total period of pensionable service credited to the employee under the exporting pension plan times the rate of contributions for an employee in the importing pension plan.

(4) The beginning salary of the affected employee in subsection (3) is the salary at the time that the employee joins the employer who is covered under the importing pension plan.

1983 c11 s7; 1986 c47 s2

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War service

7. (1) Where an employee retires from an importing pension plan and has not been credited with 10 years of pensionable service under that importing pension plan but has sufficient pensionable service when combined with pensionable service transferred from the exporting pension plan, that combined pensionable service shall apply for the purposes of qualifying for war service under section 3 of the War Service Pensions Act.

(2) Where the combined pensionable service is necessary to qualify for war service under subsection (1), there shall be paid from the Consolidated Revenue Fund to the importing pension plan an amount for that pensionable service necessary from the exporting pension plan to enable the employee to be credited with 10 years of pensionable service.

(3) The amount paid into the importing pension plan under subsection (2) shall be calculated as being twice the employee's beginning salary with the importing pension plan multiplied by the contribution rate for each year of service together with interest at the importing pension plan refund rate from the date of the beginning of employment to the date of retirement.

1983 c11 s8

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Adding to Schedule

8. The Lieutenant-Governor in Council may, by order, add to the Schedule to this Act.

1983 c11 s9

 

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Schedule

1. The Civil Service Act

2. The Constabulary Pensions Act

3. The Education Act, 1927

4. The Education Teachers' Pensions Act

5. The Members of the House of Assembly Contributory Pension Plan Act

6. The Members of the House of Assembly Retiring Allowances Act

7. The Memorial University Pensions Act

8. The Public Service Pensions Act

9. The Uniformed Services Pensions Act

1983 c11 Sch

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