SNL1991 CHAPTER 12 - Public Service Pensions Act, 1991 - Point in Time

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

Short title

1. This Act may be cited as the Public Service Pensions Act, 1991.

1991 c12 s1

Definitions

2. In this Act

(a) "Canada Pension Plan" means the Canada Pension Plan, chapter C-8 of the Revised Statutes of Canada, 1985;

(b) "child" means a natural child, a stepchild or an adopted child;

(b.01) "cohabiting partner",

(i) in relation to an employee, pensioner or deferred pensioner who has a spouse, means a person who is not the spouse who has cohabited continuously with the employee, pensioner or deferred pensioner in a conjugal relationship for not less than 3 years,

(ii) in relation to an employee, pensioner or deferred pensioner who does not have a spouse, means a person who has cohabited continuously with the employee, pensioner or deferred pensioner, in a conjugal relationship for not less than one year,

and is cohabiting or has cohabited with the employee, pensioner or deferred pensioner within the preceding year;

(b.1) "commuted value" means commuted value as defined in the Pension Benefits Act, 1997 ;

(b.2) "Consumer Price Index" with respect to any year, means the average for each month of that year of the Consumer Price Index for Canada , as published by Statistics Canada;

(c) "contractual employee" means a person employed on a full time basis under a contract with the government of the province or an organization included in the pension plan under section 34, except where the contract stipulates that the person is a member of the pension plan;

(d) "employee" means a person

(i) who is employed on a full-time basis by the government of the province and paid a salary out of public funds voted by the Legislature, or

(ii) who is included by a directive made under section 34,

but does not include a contractual employee or a person who is specifically excluded from participation in the pension plan by or under this Act;

(e) "employed on a full-time basis" means employed for the number of working hours required for full-time employment in the departments of the government of the province or those other number of hours that may be prescribed and may include job sharing of full-time employment;

(f) "former Act" means The Public Service (Pensions) Act ;

(f.1) "life income fund" means life income fund as defined in the Pension Benefits Act Regulations ;

(f.2) "locked in retirement account" means locked in retirement account as defined in the Pension Benefits Act Regulations ;

(g) "minister" means the minister appointed under the Executive Council Act to administer this Act;

(h) "month" means a calendar month and includes a portion of a calendar month;

(i) "normal retirement age" means the end of the month in which an employee reaches the age of 65 years;

(j) "pension" means an annual pension payable to a former employee in accordance with the pension plan;

(k) "pension fund" means the Province of Newfoundland and Labrador Pooled pension fund established under the Pensions Funding Act;

(l) "pensionable service" means service credited while in receipt of full salary and calculated in years and months which may be taken into account under the pension plan for the purpose of determining whether an employee has qualified for the award of a pension and the amount of the pension;

(m) "pensioner" means a person in receipt of a pension under this Act;

(n) "pension plan" means the Public Service Pension Plan referred to in this Act;

(o) "prescribed" means, except where the context otherwise requires, prescribed by a directive of the minister;

(o.1) "principal beneficiary" means the spouse of an employee, pensioner or deferred pensioner, or where the employee, pensioner or deferred pensioner has a cohabiting partner, his or her cohabiting partner;

(p) "salary" means the normal remuneration paid at an annual, monthly, fortnightly, weekly or hourly rate for the normal working period of the employee, or other remuneration that may be prescribed, but does not include payments made on a fee basis;

(q) "seasonal employee" means a full-time employee whose services are of a seasonal but recurring nature;

(r) "spouse" means a person who

(i) is married to the employee, pensioner or deferred pensioner,

(ii) is married to the employee, pensioner or deferred pensioner by a marriage that is voidable and has not been voided by a judgment of nullity, or

(iii) has gone through a form of a marriage with the employee, pensioner or deferred pensioner, in good faith, that is void and is cohabiting or has cohabited with the employee, pensioner or deferred pensioner within the preceding year;

(r.1) "supplementary account" means the Public Service Supplementary Plan Account established under subsection 4(2);

(s) "survivor benefit" means a benefit payable to the principal beneficiary or child of the employee, pensioner or deferred pensioner;

(t) "temporary employee" means a full-time employee who is employed for a period not exceeding 3 months;

(t.1) "terminating employee" means an employee who terminates his or her employment or whose employment is terminated for reasons other than disability and who is not retired, or entitled to receive a pension under subsections 19(2) or (3);

(u) "year" means 12 months; and

(v) "YMPE" means the years maximum pensionable earnings as defined under the Canada Pension Plan.

1991 c12 s2; 1992 c45 s1; 1997 c13 s58; 1999 c36 s1; 2001 c22 s30; 2001 cN-3.1 s2; 2002 c14 s1; 2006 c40 s21; 2006 c52 s1

Application

3. (1) This Act applies to every employee.

(2) A person shall not be eligible to make a contribution to or participate in the pension plan, if he or she

(a) is excluded from this Act by a directive of the minister;

(b) is in receipt of a pension; or

(3) A Provincial Court judge is not eligible to be retired under paragraph 16(1)(b) of this Act unless he or she was retired on or before April 1, 2002.

1991 c12 s3; 1997 c13 s58; 2004 cP-29.1 s31

Pension plan

4. (1) The Public Service Pension Plan provided for, by and under the former Act is continued, subject to this Act, as the pension plan.

(2) The Public Service Supplementary Plan Account is established in the Consolidated Revenue Fund.

1991 c12 s4; 1997 c13 s58; 2006 c52 s2

Employee contributions

5. (1) All employees to whom the pension plan applies shall make the contributions set out in this section and in or under the other provisions of this Act.

(2) There shall be deducted from the salary of every employee to whom the pension plan applies

(a) 8.6% of that portion of his or her salary which is the basic exemption under the Canada Pension Plan;

(b) 6.8% of that portion of his or her salary in excess of the basic exemption referred to in paragraph (a) up to and including the YMPE;

(d) other additional amounts that may be prescribed.

(3) Where contributions have been deducted from the salary of an employee in excess of the amount set out in subsection (2), those contributions shall be returned to the employee.

(4) [Rep. by 1994 c45 s1]

(5) Contributions to the pension plan deducted from the salary of an employee under subsection (2) shall be deposited each month to the credit of the pension fund.

(6) Where the amount of contributions made 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.

1991 c12 s5; 1994 c45 s1; 2002 c14 s2; 2006 c52 s3; 2012 c36 s1

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.

2012 c36 s2

Rep. by 2012 c36 s3

6.1 [Rep. by 2012 c36 s3]

2012 c36 s3

Repayment of contributions

7. (1) A terminating employee with less than 5 years of pensionable service may elect to receive a refund of contributions made by that employee, with interest at a rate prescribed.

(1.1) Where an employee with less than 5 years of pensionable service dies, the contributions made by that employee, with interest at a rate prescribed, shall be paid to the employees estate.

(2) [Rep. by 2012 c36 s4]

(3) [Rep. by 2012 c36 s4]

(4) [Rep. by 2012 c36 s4]

1991 c12 s7; 1999 c36 s2; 2012 c36 s4

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) In default of an election under subsection (1) the employee is considered to have elected to receive a deferred pension.

(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.

(4) A transfer under paragraph (1)(a) which is not to another pension plan or a deferred life annuity shall, regardless of when the pensionable service was credited, be to a life income fund or a locked in retirement account or other retirement arrangement approved by the superintendent of pensions.

(5) The transfer under paragraph (1)(a) shall not be less than the contributions made by that employee with interest at a rate prescribed.

(6) Where the transfer under paragraph (1)(a) would be greater than the maximum amount permitted under the Income Tax Act (Canada ), the excess shall be paid to the employee.

(7) Where the annual pension payable is less than 4% of the YMPE for the calendar year in which employment is terminated, the employee or former employee is entitled to receive a lump sum payment instead of the deferred pension under section 20.

(8) Where the commuted value of a deferred pension benefit is less than 10% of the YMPE for the calendar year in which employment was terminated, the employee or former employee is entitled to receive a lump sum payment instead of the deferred pension under section 20.

1999 c36 s4; 2012 c36 s5

Purchase of prior service

8. (1) Where a former employee ceased to be employed and received a termination benefit and later becomes an employee, that employee may be credited with the prior pensionable service that he or she may elect to purchase in accordance with the terms and conditions that may be prescribed.

(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.

(2) Where a former employee who ceased to be employed and had not received a termination benefit and later becomes an employee, that employee shall be credited with all pensionable service that accrued immediately before the employees termination.

(3) Where a former employee ceased to be employed before April 1, 1967 and later becomes an employee, that former employee may be credited with prior pensionable service in accordance with those terms and conditions that may be prescribed.

(3.1) Where an employee

(a) continued in employment after reaching normal retirement age before May 26, 2007;

(b) continues to be an employee on and after May 26, 2007; and

he or she may be credited with the pensionable service in respect of the period of service beyond normal retirement age that he or she may elect to purchase in accordance with prescribed terms and conditions.

(4) For the purpose of this section, "prior pensionable service" means

(a) all pensionable service under the pension plan;

(b) all service performed on a full-time basis with the government of the province or those organizations which were members of the pension plan under the former Act, whether or not that service was recognized under the former Act; or

(c) all service performed on a full-time basis with the government of the province before April 1, 1967 whether or not that service was recognized under the Public Employees Act.

(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 ).

1991 c12 s8; 1992 c48 s28; 1999 c36 s4; 2007 c7 s1; 2012 c36 s6

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).

(2) Purchase of pensionable service under subsection (1) shall be at full actuarial cost determined at the date of purchase.

(3) For the purpose of subsection (1) included companies and periods of service eligible to be purchased shall be prescribed.

1997 c34 s1; 2012 c36 s7

Pension rights on becoming an employee

9. (1) Where an employee was formerly covered under a pension plan established under

(a) the Teachers' Pensions Act;

(b) the Members of the House of Assembly Pensions Act;

(d) the Uniformed Services Pensions Act, 1991; or

(e) an Act replaced by an Act referred to in paragraphs (a) to (d)

for which contributions were paid under that pension plan and subsequently refunded, the employee shall be credited with the pensionable service recognized by those pension plans that he or she may elect to purchase upon paying contributions that may be prescribed.

(2) Where an employee was covered under a pension plan listed in subsection (1) and

(a) the contributions were payable and not paid in respect of service under that plan; or

(b) the employee was employed on a full-time basis but was not eligible for membership in the pension plan or was precluded from membership due to administrative error,

the employee may elect to purchase that service under the respective plans by paying the prescribed contribution.

(3) An employee is not eligible to be credited with pensionable service under this section if the employee is eligible to be credited with that pensionable service under this Act or under another Act.

(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 theIncome Tax Act (Canada ).

1991 c12 s9; 2012 c36 s8

Contractual employee

10. A contractual employee who subsequently becomes an employee may elect to purchase all full-time contractual service based on a cost calculated in a manner that may be prescribed.

1991 c12 s10

Leave of absence without pay

11. (1) An employee who is on authorized leave of absence without pay may have that period credited as pensionable service upon paying the contributions required under section 5.

(2) The contributions made under subsection (1) and the calculation of a pension under section 18 shall be based on the salary that the employee was earning immediately prior to the commencement of his or her authorized leave of absence without pay provided that the employee elects within the lesser of 90 days after returning from that authorized leave or prior to the date of termination from the employer to purchase the relative period of absence.

(3) Should the employee terminate from his or her employer before the expiration of the 90 days and fail to elect to purchase that leave without pay and later become an employee, the person may elect to purchase the leave without pay within the 90 day period as if the person continued to be employed with the previous employer.

(4) All matching contributions required under subsection (2) shall be paid by the current employer from whom the authorized leave of absence was granted.

(5) Notwithstanding subsections (2) and (8), authorized leave of absence without pay may be purchased at any time after the expiration period at a cost that may be prescribed and no matching contributions are required by the government of the province or an employer.

(6) [Rep. by 2012 c36 s9]

(7) [Rep. by 2012 c36 s9]

(8) A temporary employee or seasonal employee who was continuously employed immediately prior to participation in the pension plan may be credited with that pensionable service within 90 days of participation in the pension plan upon paying contributions in accordance with subsections (1), (2) or (5).

(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).

1991 c12 s11; 2012 c36 s9

Purchase of service

12. (1) All contributions that are required to be paid under sections 8, 8.1, 9, 10 and 11 may be paid in equal instalments over the shorter of

(a) the period of pensionable service being purchased; or

(b) the period from the date of election to a date immediately preceding the date on which the employee retires

together with the prescribed interest.

(2) An employee whose employment status changes from full-time to part-time may continue to make existing payments towards a purchase of service contract entered into under this Act or the former Act.

1991 c12 s12; 1997 c34 s2

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.

2012 c36 s10

Reciprocity

14. (1) A person, who before becoming an employee, was in the employment of the Government of Canada, the government of another province, an agency of the Government of Canada or a province or of a company, corporation, institution or a legal entity authorized to carry on business in Canada, which has a pension plan and the employee was formerly a member of that plan may be credited with pensionable service under this Act, with the whole or part of his or her years of pensionable service credited to him or her under that former plan under an agreement made pursuant to subsection (2) which provides for crediting that pensionable service on a reciprocal basis.

(2) The minister may, with the approval of the Lieutenant-Governor in Council, enter into a reciprocal agreement with a government, company, corporation, institution or legal entity referred to in subsection (1) to give effect to the purposes set out in that subsection and to provide for payments to be made into and out of the pension fund under that agreement.

1991 c12 s14

Transfer

14.1 (1) A person who, before becoming an employee, made contributions to a pension plan that is registered as a pension plan under the Income Tax Act (Canada), other than a pension plan

(a) to which the Portability of Pensions Act applies; or

(b) that is the subject of a reciprocal agreement under section 14

may, upon becoming an employee, elect to have that pensionable service transferred directly from the exporting pension plan to the pension plan in accordance with this section.

(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

(3) An election made under subsection (1) is irrevocable.

(4) The pensionable service to be credited under the pension plan shall be determined with reference to the actuarial cost of the pensionable service at the date of the election under subsection (1) as calculated by the pension plans actuary.

(5) Upon an election under subsection (1), the exporting pension plan shall transfer to the pension plan a lump-sum amount that is the lesser of

(a) the actuarial cost of the pensionable service at the date of election; and

(b) the value of the termination benefit to which the person is entitled.

(6) Where the lump-sum amount transferred under subsection (5) is insufficient to finance the actuarial cost of the full period of pensionable service that has been transferred under subsection (1), the employee may elect

(a) to pay the amount required to make up the deficiency; or

(b) to be credited with the proportionate period of pensionable service that can be financed by the lump-sum amount.

(7) The amount of a deficiency shall be paid in the prescribed manner.

(8) For the purpose of this section "actuarial cost" means the cost of the service to be credited as determined at the date of the election and calculated with reference to the assumptions from the most recent actuarial valuation for funding purposes.

2005 c11 s1; 2012 c36 s11

Right to a pension

15. Every employee shall, subject to this Act, receive a pension as a matter of right.

1991 c12 s15

Retirement

16. (1) An employee shall be retired under the pension plan

(a) where he or she makes an election under section 19 or terminates employment upon reaching normal retirement age, or, where he or she continues working past normal retirement age, at the earlier of termination of employment or reaching the age at which a pension benefit is required to begin under the Income Tax Act (Canada); or

(b) where, after the employee has used up all sick leave entitlement, he or she is unable to perform efficiently the duties of his or her position or the duties of an alternative position owing to incapacity that is medically certified to the satisfaction of the minister as likely to be permanent, from a date to be determined by the minister.

(2) Notwithstanding paragraph (1)(b), the minister reserves the right to require an employee to participate in a rehabilitation program which has been recommended by medical advisors, or to take other action which is reasonable in the circumstances, to rehabilitate the employee to the extent possible so as to enable the employee to reasonably perform the duties of his or her position or alternative position.

(3) Where the employee elects not to participate, or through his or her own negligence does not respond properly to an approved rehabilitation program, or knowingly performs an act which aggravates the medical condition to cause permanent disability, or refuses an offer of an alternative position, that employee shall be ineligible for a pension under paragraph (1)(b).

(4) Where an employee who retired under paragraph (1)(b) becomes fit for work and receives an offer of re-employment to his or her former position or an alternative position within 12 months of his or her retirement and refuses the offer, without reasonable cause, the pension paid to that employee may be cancelled by the minister.

(4.1) Notwithstanding subsection 16(1), where, during the period an employee is on sick leave,

(a) the employee's employment is terminated by reason of redundancy;

(b) the employee has not used up all his or her sick leave benefits; and

the employee shall be retired under the pension plan from the date the employee's employment is terminated.

(5) For the purpose of this section, an alternative position includes a position for which, in the opinion of the minister, the employee is reasonably suited by virtue of his or her training, experience and education and which has been offered in writing to the employee.

1991 c12 s16; 1995 c23 s1; 2007 c7 s2

Minimum service

17. (1) An employee shall not receive a pension under the pension plan until the employee has been credited with not less than 5 years of pensionable service.

(2) An employee shall not receive a pension under the pension plan while he or she is an employee.

(3) For the purposes of this section a pension does not include a survivor benefit.

1991 c12 s17

Calculation of pension

18. (1) A pension awarded to an employee or seasonal employee is the product of 2% of the average annual salary of the employee or seasonal employee for the highest 5 years of pensionable service before retirement, multiplied by the number of years and months of credited pensionable service.

(1.1) For the purposes of subsection 19(5) the pension awarded under subsection (1) shall be reduced by 6% for each year that the employee's age is less than the age at which his or her unreduced pension would start.

(1.2) Subject to the Income Tax Act (Canada ), an employee may elect to pay an amount to partially or fully reinstate the reduction in pension required under subsection (1.1).

(1.3) Where an employee elects to pay an amount under subsection (1.2), the reduction required under subsection (1.1) shall be reduced proportionately by the ratio of the amount paid by the employee to the amount under subsection (1.4) required to fully reinstate the calculated reduction.

(1.4) The amount to be paid under subsection (1.2) shall be

(a) determined by the minister; and

(b) paid in a manner directed by the minister.

(1.5) Subsections (1.2) to (1.4) shall be considered to have come into force on February 28, 1997.

(2) [Rep. by 2006 c52 s5]

(3) A pension awarded under subsection (1) shall be reduced by the product of 6/10 of 1% of the employee's average annual salary as calculated under subsection (1) multiplied by the number of years and months of pensionable service done after March 31, 1967 not exceeding 35.

(4) For the purposes of subsection (3) an employee's average annual salary may not exceed the average of the employee's Year's Maximum Pensionable Earnings under the Canada Pension Plan in the year the employee has retired and in the 2 years immediately before the employee's year of retirement.

(5) The reduction under subsection (3) shall occur on the first of the month following the month in which the employee reaches the age of 65 years or when the employee commences receipt of a pension under the pension plan, whichever is the later.

(6) For the purposes of determining the average annual salary of a seasonal employee, the total salary received by that employee in the last 60 months before retirement shall be divided by the number of months of service in respect of which the salary was received and multiplied by 12.

(7) Notwithstanding subsection (1), where the contribution to the pension plan of the government of the province or another employer to whom this Act applies is reduced under this Act and an employee or a former employee affected by the reduction does not make a compensating contribution under this Act, the formula set out in subsection (1) respecting the calculation of an award of pension shall be adjusted to reduce the employee's or former employee's award of pension proportionately. [Subsection (7) in force April 1, 1993]

1991 c12 s18; 1992 c45 s3; 1993 c18 s2; 1994 cP-4.1 s3; 1994 c45 s3; 1995 c24 s2; 1997 c31 s1; 2001 c35 s1; 2006 c52 s5; 2007 c7 s3

Rep. by 2006 c52 s6

18.1 [Rep. by 2006 c52 s6]

2006 c52 s6

Pension upon retirement

19. (1) Upon retirement in accordance with section 16 or subsections (2) and (3) of this section, an employee shall be awarded a pension.

(2) An employee

(a) who has reached early retirement age; or

(b) who has reached advanced retirement age and has done not less than 30 years of pensionable service

may elect to retire and receive a pension calculated and paid in accordance with section 18 and the other provisions of this Act.

(3) Notwithstanding subsection (2), a prescribed employee who has reached the age of 55 years and has not less than 25 years of pensionable service may elect to retire before normal retirement age and shall receive a pension calculated in accordance with this Act from the end of the month in which the employee's election becomes effective.

(4) In this section

(a) "advanced retirement age" means the end of the month in which the employee reaches the age of 55 years; and

(b) "early retirement age" means the end of the month in which the employee reaches the age of 60 years.

(5) Notwithstanding subsection (2), an employee who

(a) has reached the age of 50 years and has completed not less than 30 years of pensionable service; or

(b) has reached the age of 55 years and the aggregate of that employee's age and completed years of pensionable service is not less than 85 years,

may elect to retire and receive a reduced pension calculated in accordance with subsection 18(1.1).

(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.

1991 c12 s19; 1994 c45 s4; 2012 c36 s12

Deferred pension

20. (1) A terminating employee with at least 5 years of pensionable service is entitled to a deferred pension benefit to be paid in accordance with section 19.

(2) An employee who has made an election under subsection (1) and subsequently becomes an employee is deemed to have revoked his or her election.

(3) Where an employee elects to receive a pension under subsection (1) and there is an increase in the amount of pension, that increase shall apply to that deferred pension as if the employee was a pensioner on the 1st of the month immediately following termination.

(4) A former employee with at least 5 years pensionable service whose employment terminated before January 1, 2000 and who did not receive a refund of contributions may before becoming eligible to receive a pension under subsection 19(2) or (3) make the same election as a terminating employee under section 7.1.

1991 c12 s20; 1999 c36 s5

Offer of re-employment

21. (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) A pensioner who has retired under the pension plan under paragraph 16(1)(b) but has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada ) may, upon proof of good health and with the consent of the minister, be re-employed in a pensionable position.

(3) 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 as required under 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 1st retirement and the pension shall be calculated in accordance with section 18 as if the award of the former pension had not occurred.

(4) [Rep. by 2002 c14 s4]

1991 c12 s21; 2002 c14 s4; 2007 c7 s4

Rep. by 2007 c7 s5

22. [Rep. by 2007 c7 s5]

2007 c7 s5

Survivor benefit

23. (1) A surviving principal beneficiary of

(a) a pensioner;

(b) a deferred pensioner; or

is entitled upon the death of the pensioner, deferred pensioner or employee to a survivor benefit equal to 60% of the pension entitlement of the pensioner, deferred pensioner or employee.

(2) Where the pension entitlement of the pensioner, deferred pensioner or employee on his or her death has not been reduced under subsection 18(5), the reduction shall be applied to his or her pension entitlement on the first day of the month following the month in which he or she would have reached 65 years and the survivor benefit shall be adjusted accordingly.

(3) The survivor benefit shall be paid to the principal beneficiary for life and shall commence on the first day of the month following the month in which the pensioner, deferred pensioner or employee dies.

(4) Where a surviving principal beneficiary dies while in receipt of a survivor benefit, the survivor benefit shall be paid to or for the benefit of any surviving children of the employee, pensioner or deferred pensioner, while they are under the age of 18 years, or under the age of 24 years while they are in full-time attendance at a recognized school or post-secondary institution.

(5) Where a pensioner referred to in subsection (1) dies leaving no surviving principal beneficiary, the survivor benefit shall be paid to or for the benefit of his or her surviving children, while they are under the age of 18 years, or under the age of 24 years while they are in full-time attendance at a recognized school or post-secondary institution.

1999 c36 s6; 2001 c22 s31; 2001 c35 s2; 2008 c23 s9

Death of employee

23.1 (1) Where an employee with at least 5 years of pensionable service or a deferred pensioner dies before receiving a pension and a survivor benefit is payable under section 23, a surviving principal beneficiary may elect

(a) to receive the survivor benefit in accordance with section 23; or

(b) to receive in a lump sum

(i) the commuted value of the survivor benefit, or

(ii) the commuted value of the employees pension entitlement,

whichever is greater.

(2) Where an employee with at least 5 years of pensionable service or a deferred pensioner dies before receiving a pension and there is no principal beneficiary entitled to a survivor benefit under section 23, the commuted value of the pension entitlement of the employee or a deferred pensioner, calculated as of the date of death, shall be transferred to the employee's or deferred pensioner's estate.

1999 c36 s6; 2001 c22 s32; 2008 c23 s10; 2012 c36 s13

Transitional

23.2 (1) A child who is receiving a survivor benefit when this section comes into force who is a child of a deceased employee or deferred pensioner who died without a principal beneficiary after December 13, 1999 is entitled to

(a) continue to receive the survivor benefit while he or she is under the age of 18 years, or under the age of 24 years while in full-time attendance at a recognized school or post-secondary institution; or

(b) be paid the commuted value of his or her entitlement determined at the date of the death of the deceased employee or deferred pensioner, less any payments already received by the child at the date of election.

(2) Where the total survivor benefit paid under subsection (1) is less than the deceased employee's or deferred pensioner's commuted value at the date of death, the difference in the commuted value and the total survivor benefit paid shall be paid to the estate of the deceased employee or deferred pensioner.

(3) Notwithstanding the entitlements referred to in subsection (1), where a deceased employee or deferred pensioner had more than one child, the children shall elect jointly and there shall be only one election for the payment of the entitlements.

(4) Unless an election is made under subsection (1), a survivor benefit shall be continued as if continuation under paragraph (1)(a) had been elected.

2008 c23 s11

Estate provision

24. Where the total pension or survivor benefit paid under this Act at the date the pensioner dies or the last survivor benefit has been paid does not exceed the deceased employee's contributions together with the prescribed interest calculated to the date of retirement, the difference in the amount of contributions together with interest and the total pension or survivor benefits shall be paid to the estate.

1991 c12 s24; 2012 c36 s14

When pensions payable

25. (1) Pensions shall be paid as the minister directs.

(2) Pension payments shall cease at the end of the month in which the death of the pensioner or person receiving a survivor benefit occurs.

(3) Pension payments shall be equal and periodic.

1991 c12 s25; 2002 c14 s5; 2012 c36 s15

Indexing

25.1 (1) On October 1 the amount of a pension or survivor benefit being paid to a person who has reached the age of 65 shall be adjusted by multiplying

(a) the annual amount of the pension or survivor benefit;

(b) 60% of the ratio that the Consumer Price Index for the previous calendar year bears to the Consumer Price Index for the calendar year immediately before the previous calendar year,

but the amount of any increase shall not exceed 1.2% of the annual pension or survivor benefit.

(2) The amount of a pension or survivor benefit being paid to a person shall not decrease by reason only of an adjustment under subsection (1).

2002 c14 s6

Pension payments

26. (1) A pension payable under this Act shall be paid according to the following:

(a) a pension calculated under subsection 18(1) relating to service accrued prior to September 1, 1991 shall be paid from the pension fund;

(b) a pension calculated under subsection 18(1), relating to service accrued on and after September 1, 1991, not exceeding the maximum annual allowable registered pension permitted under the Income Tax Act (Canada) shall be paid from the pension fund; and

(c) a portion of a pension calculated under subsection 18(1), relating to service accrued on and after September 1, 1991, that exceeds the maximum annual allowable registered pension permitted under the Income Tax Act (Canada) shall be paid from the supplementary account.

(2) Benefits payable under sections 23, 23.1 and 24 and a return of contributions, commuted value or other lump sum payment in respect of an entitlement under this Act shall be paid from the pension fund and the supplementary account on the same basis and in the same proportion as a pension payment under subsection (1).

(3) Where there are insufficient funds in the supplementary account to meet the obligations referred to in this section, there shall be paid from Consolidated Revenue Fund to the supplementary account sufficient money necessary to cover the deficit.

2006 c52 s7

Subsections apply notwithstanding

26.1 Subsections 5(6), 6(4) and 26(1) and (2) apply notwithstanding another provision of this Act or another Act.

2006 c52 s8; 2012 c36 s16

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 .

2012 c36 s17

Rep. by 2012 c36 s18

28. [Rep. by 2012 c36 s18]

2012 c36 s18

Error or misrepresentation

29. The minister may adjust or cancel a pension which has been awarded or paid as a result of error or misrepresentation and where an overpayment of pension has been made the minister may reduce, suspend or withdraw future payments of the pension until the amount has been recovered.

1991 c12 s29

Rectification

30. Where a pension has been underpaid or unusual delays in payments have occurred, the minister may make payments in rectification in those cases together with interest that may be prescribed.

1991 c12 s30

Committee

31. 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 from time to time the matters on which the Committee shall make recommendations to the minister.

1991 c12 s31

Marriage breakdown

32. Where

(a) a court has made an order for the division of matrimonial property under the Family Law Act or a similar order of a court outside the province; or

(b) an employee has entered into a separation agreement within the meaning of the Family Law Act to divide matrimonial property,

a pension shall be divided in accordance with the court order or separation agreement, and Part VI of the Pension Benefits Act, 1997 applies with the necessary changes.

1999 c36 s7

Rep. by 1996 cR-10.1 s60

33. [Rep. by 1996 cR-10.1 s60]

1996 cR-10.1 s60

Regulations re certain employees

34. (1) The minister may by a directive include in the pension plan persons employed on a full-time basis with

(a) a board, agency, commission or corporation created by or under a statute of the province in respect of which control, direct or indirect, whether by the appointment of members or otherwise vests in the Crown, or a corporation of which 50% of the outstanding common shares is owned by such a body, agency, commission or corporation;

(b) a Crown corporation within the meaning of the Crown Corporations Local Taxation Act;

(c) a person, firm or body, if, immediately before employment, the person was an employee, and the person was transferred to the employment of that person, firm or body at the request or under direction of the government of the province;

(d) a private home for special care as defined in subparagraph 2(b)(i) of the Private Homes for Special Care Allowances Act;

(e) a non-profit corporation, association or other body established under the laws of the province that, in the opinion of the Lieutenant-Governor in Council, has as its principal objective the provision of a service that it would otherwise be the responsibility of the province to provide and that is dependent substantially on the financial support of the province in order to provide the service;

(f) the Association of Registered Nurses of Newfoundland ;

(f.1) the Newfoundland and Labrador Nurses Union as president for the duration of that persons term as president if, before election as president, that person was a member of the pension plan;

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

(h) the Newfoundland and Labrador School Trustees Association; or

(i) the denominational education commission established under the Education Act, 1996 as designated by the Lieutenant-Governor in Council.

(1.1) Paragraph (1)(f.1) shall be considered to have come into force on March 28, 1996.

(2) A directive issued under this section may prescribe the terms and conditions upon which prior service with a board, agency, commission, corporation, association, government or private home for special care referred to in subsection (1) may be counted as pensionable service under this Act and may provide for matters relating to the prior service, and all persons so included shall be considered to be employees for the purposes of paying contributions to and participating in the pension plan.

(3) Directives made under this section may be made with retroactive effect.

1991 c12 s34; 1996 cE-2.2 s9; 1997 c13 s58; 2001 c42 s34; 2004 c45 s1; 2012 c36 s19

Directive of minister

34.1 The minister may issue directives to give effect to the purpose of this Act.

1997 c13 s58

Appeal

35. (1) An employee or other person who is aggrieved by a decision of the minister or of the Lieutenant-Governor in Council in a matter related to, connected with or arising out of his or her entitlement to or the award to him or her of a pension or other money under this Act may appeal from the decision to a judge of the Trial Division.

(2) Where an employee or other person proposes to appeal under subsection (1), he or she shall, within 60 days after he or she has received the decision of the minister or the Lieutenant-Governor in Council, serve on the minister a written notice of his or her intention to appeal to a judge of the Trial Division.

(3) The notice of appeal served under subsection (2) shall be signed by the employee or other person or by his or her solicitor or agent, and in the notice, the grounds of the appeal shall be set out, and the employee or other person shall file a copy of the notice in the Registry of the Supreme Court.

1991 c12 s35

Procedure

36. (1) The employee or other person shall, within 14 days after service of the notice of appeal under subsection 35(2), apply to the judge for the appointment of a day for the hearing of the appeal, and shall, not less than 14 days before the hearing, serve upon the minister a written notice of the day appointed for the hearing.

(2) The judge shall hear the appeal and the evidence adduced before him or her by the employee or other person and by the minister in a summary manner and shall decide the matter of the appeal.

(3) The minister shall cause to be produced before the judge on the hearing of the appeal all papers and documents in the minister's possession affecting the matter of the appeal.

(4) The costs of the appeal are in the discretion of the judge who may make an order respecting them in favour of or against the minister and may fix the amount of the costs.

(5) An appeal may be taken from an order or decision of the judge to the Court of Appeal upon a point of law raised on the hearing of the appeal, and the rules governing appeals to that Court from an order or decision of a judge of the Trial Division apply to appeals under this subsection.

1991 c12 s36

Conflict of Acts

37. (1) Where this Act conflicts with the Public Employees Act or another Act, this Act shall prevail.

(2) Notwithstanding subsection (1), where this Act conflicts with the Pension Benefits Act, that Act shall prevail and the Lieutenant-Governor in Council may make regulations to further comply with that Act.

1991 c12 s37; 1992 c48 s28

Certain employees

38. Those persons who on the commencement of this Act are employed by the Newfoundland Association of Public Employees and who became members of the pension plan upon the terms and conditions set out in certain Orders-in-Council made under the authority of subsection 33(3) of the former Act shall continue to participate in the pension plan upon those same terms and conditions or those other terms and conditions that may be specified by order of the Lieutenant-Governor in Council from a date not earlier than April 1, 1967.

1991 c12 s38

Existing plan protected

39. All benefits acquired under the former Act before the commencement of this Act are protected under this Act.

1991 c12 s39

Rep. by 1997 c13 s58

40. [Rep. by 1997 c13 s58]

1997 c13 s58

Income Tax (Canada )

41. For the purpose of the Income Tax Act (Canada )

(a) the pension adjustment factor as defined under the Income Tax Act (Canada ) shall not exceed 18% for all years of service after December 31, 1990;

(b) all employer and employee contributions shall be made with reference to actuarial reports; and

1991 c12 s41

Acts amended

42. (1) Paragraph 3(d) of the Pensions Funding Act is repealed and the following substituted:

(d) thePublic Service Pensions Act, 1991 and the Public Employees Act.

(2) Where in an Act or regulations there is a reference to The Public Service (Pensions) Act or a part or section of that Act, the reference shall be considered to be a reference to the equivalent part or section contained in the Public Service Pensions Act, 1991.

1991 c12 s42

RSN 1970 c.319 Rep.

43. The Public Service (Pensions) Act is repealed.

1991 c12 s43

Commencement

44. This Act comes into force on a date to be proclaimed by the Lieutenant-Governor in Council. (In force - Sept. 1/91)