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SNL1991 CHAPTER 17 TEACHERS' PENSIONS ACT Amended: 1991 c43 s19; 1992 c39 s18; 1993 c18 s3; 1993 c23; 1994 c31; CHAPTER 17 AN ACT TO REVISE AND AMEND THE LAW (Assented to May 31, 1991)
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 Teachers' Pensions Act . Interpretation 2. (1) In this Act (a) "child" includes a natural child, a stepchild or an adopted child; (a.1) "cohabiting partner", (i) in relation to a teacher or deferred pensioner who has a spouse, means a person who is not the spouse who has cohabited continuously with the teacher or pensioner in a conjugal relationship for not less than 3 years, (ii) in relation to an teacher or pensioner who does not have a spouse, means a person who has cohabited continuously with the teacher or pensioner, in a conjugal relationship for not less than one year, and is cohabiting or has cohabited with the teacher or pensioner within the preceding year; (a.2) "commuted value" means commuted value as defined in the Pension Benefits Act, 1997 ;
(a.3)
"consumer price index" with respect to a year, means the average for each month of that year of the Consumer Price Index for (b) [Rep. by 1998 c26 s1] (c) "former Act" means The Education (Teachers' Pensions) Act ; (d) "minister" means the minister appointed under the Executive Council Act to administer this Act; (e) "normal retirement age" means the end of the month in which a teacher reaches the age of 60 years, but not later than the end of the teaching year in which the teacher reaches the age of 60 years; (f) "pension" means an annual pension payable to a former teacher in accordance with the pension plan;
(g)
"pension fund" means the (h) "pension plan" means the Teachers' Pension Plan referred to in this Act; (i) "pensionable service" means service credited under the pension plan for the purpose of determining whether a teacher has qualified for a pension and the amount of the pension; (j) "pensioner" means a person in receipt of a pension under this Act; (k) "prescribed" means, except where the context otherwise indicates, prescribed by directives issued by the minister under section 42; (k.1) "principal beneficiary" means the spouse of a teacher or pensioner, or where the teacher or pensioner has a cohabiting partner, his or her cohabiting partner; (l) "salary" means the normal remuneration paid to a teacher for the normal working period or other remuneration that may be prescribed; (m) "spouse" means a person who (i) is married to the teacher or pensioner, (ii) is married to the teacher or 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 teacher or pensioner, in good faith, that is void and is cohabiting or has cohabited with the teacher or pensioner within the preceding year; (m.1) "supplementary account" means the Teachers' Supplementary Plan Account established under subsection 5(2); (n) "survivor benefit" means a benefit payable to the principal beneficiary of a deceased teacher or pensioner; (o) "teacher" means a person holding a valid and subsisting certificate or grade or licence not lower than the emergency supply licence issued under theTeacher Training Act, who is, subject to the Schools Act, 1997 appointed or employed by a board of directors or a school board to give instruction or to administer or supervise instructional services in a college or a school and includes (i) a director, an associate director or an assistant director, except the assistant director of finance and administration appointed under section 79 of the Schools Act, 1997 , and (ii) every person who is considered a teacher under section 3; (p) "teaching service" means the total period during which a person who holds a valid certificate of grade or a licence is employed as a teacher in the province; (q) "teaching year" means the 12 calendar months beginning on July 1; (q.1) "terminating teacher" means a teacher 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 subsection 20(1) or (3); and (r) "year of pensionable service" means 190 days of teaching service unless otherwise prescribed. (2) Words and expressions used in paragraph 2(1)(o) and section 3 and defined by The Schools Act have the meaning assigned to them by that Act. 1991 c17 s2; 1996 c13 s29; 1996 cS-12.1 s119; 1997 c13 s72; 1997 cS-12.2 s126; 1998 c26 s1; 2001 c22 s33; 2001 cN-3.1 s2; 2002 c19 s1; 2005 c38 s1; 2006 c40 s21; 2006 c52 s9; 2013 c25 s15 Application 3. (1) This Act applies to every teacher who (a) teaches (i) in a school or a college and is paid from public funds allocated under the Schools Act, 1997 , or is approved by the minister responsible for education for the purpose of this Act, or (ii) in a school operated by the department under section 50 of the Schools Act, 1997 ; (b) has similar qualifications approved by the minister responsible for education and is employed in a special school or in an institution in the province approved by the minister responsible for education for the purpose of this Act and receives his or her total remuneration directly from public funds voted by the Legislature; (c) has similar qualifications approved by the Teachers' Certification Committee established under the Teacher Training Act and is employed full time in the province to teach (i) in a school, (ii) in a private school, (iii) in an institution for children with disabilities, or (iv) a regular course for children with disabilities in a school, where that school, institution or course has been approved under the Schools Act, 1997 , and for the purpose of this section, approved by the minister;
(d)
is an administrative officer of the (i) a teacher to whom this Act or the former Act applied, or (ii) a public servant to whom the Public Service Pensions Act, 1991 applied, and is considered to be, during his or her term of office as the administrative officer, a teacher for the purpose of the pension plan; or (e) is a full time salaried president of the Canadian Teachers' Federation and who was before his or her appointment (i) a teacher to whom this Act or the former Act applied, or (ii) a public servant to whom the Public Service Pensions Act, 1991 applied, and is considered to be, during his or her term of office as the president, a teacher for the purpose of the pension plan. (2) Where a person is eligible to receive a pension under this Act that person shall, before receiving that pension, pay the pension contributions that are required by this Act for the period during which that person is considered to have done pensionable service, and if the required contributions are not paid, the period shall not be counted as pensionable service for the purpose of this Act. 1991 c17 s3; 1996 cS-12.1 s119; 1997 cS-12.2 s127; 1999 c22 s27; 2006 c39 s1 Excluded teachers 4. Notwithstanding section 3, this Act does not apply to a teacher who (a) is obliged to make contributions to a pension plan other than that provided by this Act; or (b) is excluded from this Act by a directive of the minister. 1991 c17 s4; 1997c13 s72 Pension plan 5. (1) The pension plan provided for, by and under the former Act is continued, subject to this Act, as the pension plan. (2) The Teachers Supplementary Plan Account is established in the Consolidated Revenue Fund. 1991 c17 s5; 1997 c13 s72; 2006 c52 s10 Contributions by teachers 6. (1) All teachers 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 teacher to whom the pension plan applies (a) 9.35% of that salary; and (b) other additional amounts that may be prescribed. (3) 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. (4) Where, as a result of an administrative error or oversight, contributions have been deducted from the salary of a teacher in excess of the amounts set out in subsection (2) those contributions shall be returned to the teacher together with interest at the prescribed rate. 1991 c17 s6; 1998 c26 s2; 2002 c19 s2; 2006 c52 s11 Deductions paid to fund 7. All deductions made under this Act shall be deposited each month to the credit of the pension fund. Government contributions 8. (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 teachers under this Act unless otherwise directed by this Act or a directive of the minister; and (b) an additional amount that may be prescribed. (1.1) Where the amount of government contributions under subsection (1) 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 of the immediately following calendar year. (2) Where, as a result of an administrative error or oversight government contributions are made in excess of those required under section 6, those contributions shall be refunded to the government with interest at the prescribed rate. (3) Notwithstanding subsection (1), the government of the province may reduce the contribution under subsection (1), either for all teachers or for a group of teachers, by an amount that the Lieutenant-Governor in Council may prescribe, but the amount of the reduction shall not exceed 4.5% of the salaries of teachers to whom the reduction applies. [Effective April 1, 1993 - March 31, 1994]
(3.1)
Notwithstanding subsection (1), the government of the province may reduce the contribution under subsection (1), either for all teachers or for a group of teachers, by an amount that the Lieutenant-Governor in Council may prescribe by regulation, but the amount of the reduction shall not exceed 1.05% of the salaries of teachers to whom the reduction applies. [Effective
(4)
Where the contribution of the government of the province is reduced under this Act, a teacher or a former teacher may elect to contribute an amount, in addition to the amount which he or she is or was required to contribute under section 6, to be calculated in accordance with the terms and conditions which the Lieutenant-Governor in Council may prescribe by regulation, which would place the teacher or former teacher in the position he or she would have been in respecting an award of pension if the government of the province had not reduced its contribution. [Effective 1991 c17 s8; 1993 c18 s3; 1995 c24 s3; 1997 c13 s72; 1998 c26 s3; 2006 c52 s12 Government payments 8.1 (1) The government of the province shall pay $815 million to the Teachers Pension Plan. (2) Payment under subsection (1) shall be made as follows in the amount of
(a)
$166 million, on or before
(b)
$166 million, on or before (c) $76 million on or before September 1 in each year after 1999 until a total of $815 million, including interest, has been paid. (3) Interest shall accrue on the outstanding balance described under subsection (2) at the rate of 8% a year, compounded annually. Repayment of contributions 9. (1) A terminating teacher with less than 5 years of pensionable service may elect to receive a refund of his or her contributions, with interest at a rate prescribed. (1.1) Where a teacher with less than 5 years of pensionable service dies, the contributions made by the teacher, with interest at a rate prescribed, shall be paid to the teacher's personal representative. (2) [Rep. by 1998 c26 s5] (3) Where money is payable to the personal representative of a teacher under this section or another provision of this Act, the minister may, without probate or proof of title, pay or distribute a reasonable amount, whether that amount is the whole or part only of that sum, to or among 1 or more of the persons appearing to the minister to be the persons beneficially entitled to the estate of the deceased teacher. (4) In determining the persons to whom or the proportions in which the amount shall be paid or distributed under this section, the minister may take into consideration the expenses incurred by those persons for or on account of the burial expenses of the deceased teacher. (5) A payment made in accordance with this section shall have the same effect in law as if it were made to the personal representative of the deceased teacher. 1991 c17 s9; 1998 c26 s5; 2001 c22 s34; 2005 c38 s2 Election upon termination 9.1 (1) A terminating teacher with at least 5 years of pensionable service may elect, within 180 days after termination,
(a)
a transfer of the commuted value of the pension entitlement of the teacher, in accordance with paragraph 40(1)(a) of the Pension Benefits Act, 1997; (b) a deferred pension in accordance with section 21; or (c) a return of the contributions made by the teacher, with interest at a rate prescribed, for periods of pensionable service credited
(i)
before (ii) before January 1, 1997, where the teacher has less than 10 years of pensionable service and is less than 45 years of age, and a transfer of the commuted value of his or her pension entitlement, based on the remaining periods of pensionable service, under paragraph (a). (2) In default of an election under subsection (1) a teacher is considered to have elected to receive a deferred pension. (3) A teacher who elects or is considered to have elected under section (2) to receive a deferred pension may only revoke that election to transfer his or her contributions to a pension plan included in the Schedule to the Portability of Pensions Act . (4) A transfer under paragraph (1)(a) which is not to another pension plan or deferred life annuity shall, regardless of when the pensionable service was credited, be to a retirement arrangement approved for this purpose by the Superintendent of Pensions. (5) A transfer under paragraph (1)(a) shall not be less than the contributions made by the teacher, with interest at a rate prescribed.
(6)
Where a transfer under paragraph (1)(a) would be greater than the maximum amount permitted under the Income Tax Act
( (7) Where the annual pension payable is less than 4% of the YMPE for the calendar year in which the employment is terminated, a teacher or former teacher is entitled to receive a lump sum payment instead of the deferred pension under section 21. (8) Where the commuted value of a deferred pension benefit is less than 10% of the YMPE for the calendar year in which the employment is terminated, a teacher or former teacher is entitled to receive a lump sum instead of the deferred pension under section 21. (9) For the purposes of subsections (7) and (8), "YMPE" means the years maximum pensionable earnings as defined under the Canada Pension Plan. Purchase of prior teaching service 10. (1) Where a former teacher ceased to be employed and received a refund of contributions and later becomes a teacher, that teacher may be credited with the prior pensionable service that he or she may elect to purchase on paying contributions to be calculated in accordance with the terms and conditions that may be prescribed. (2) Where a former teacher who ceased to be employed and has not received a refund of contributions later becomes a teacher, that teacher shall be credited with all pensionable service that accrued immediately before the teacher's termination. (3) Where a teacher
(a)
continued in employment after reaching normal retirement age before
(b)
continues to be employed as a teacher on and after (c) did not receive a pension upon reaching normal retirement age, 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. Purchase of prior substitute teaching service 11. (1) Where a teacher was formerly covered by the pension plan established under The Government Money Purchase Pension Plan Act , the minister shall accept the transfer of funds from that pension plan and establish the amount of related pensionable service in accordance with those terms and conditions that may be prescribed. (2) Where a teacher has substitute teaching service before or after the commencement ofThe Government Money Purchase Pension Plan Act which cannot be transferred under subsection (1), he or she may elect to purchase all or part of that service under terms and conditions that may be prescribed. (3) For the purpose of subsection (2), periods of substitute teaching service may include substitute teaching service formerly recognized by the pension plan referred to in subsection (1) for which the teacher earlier had elected a refund of contributions. Purchase of service with related plans 12. (1) Where a teacher was formerly covered under a pension plan established under (a) The Public Service (Pensions) Act ; (b) The Civil Service Act ; (c) The Members of the House of Assembly (Retiring Allowances) Act ;
(d)
The (e) The Uniformed Services Pensions Act ; or (f) an Act replaced by an Act referred to in paragraphs (a) to (e) for which contributions were paid under that pension plan and subsequently refunded, the teacher 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 a teacher 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 teacher 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 teacher may elect to purchase that service under the respective plans by paying the prescribed contributions. (3) Where a teacher who was employed on a full time basis (a) is an employee of an employer to which the Public Service Pensions Act, 1991 applies; and (b) the service was performed before that Act was made applicable to the employer, the teacher may elect to purchase all or a part of that service and pay those contributions that may be prescribed, provided that he or she was not covered by a pension plan of the employer during that period. Strike and lockout
12.1
(1) A teacher who has a period of absence due to a lawful strike or lockout may have that period of absence credited as pensionable service.
(2)
Where a teacher has had a period of absence due to a lawful strike or lockout that occurred before (3) Where a teacher has a period of absence due to a lawful strike or lockout after September 1, 2008, and wishes to purchase pensionable service for that period of absence, that teacher must elect to purchase that service not later than 3 months after the first of the month immediately after the collective agreement relating to that strike has been ratified. (4) The cost of the purchase of pensionable service under this section shall be twice the contributions that the teacher would have made had that teacher not had the period of absence together with interest at a rate prescribed by the minister from the date on which the period of absence ceases until the date of the payment of the cost by that teacher. (5) A payment made by a teacher under subsection (4) shall be a lump sum payment. Purchase of leave without pay 13. (1) A teacher who is on an authorized leave of absence without pay may have the period of that leave of absence credited as pensionable service provided that he or she makes the contributions required under section 6. (2) The contributions made under subsection (1) and the calculation of a pension under section 22 shall be based on the salary that the teacher was earning immediately before the commencement of his or her authorized leave of absence without pay provided that the teacher elects (a) within 180 days after returning from that authorized leave; or (b) before termination of the employment to purchase the period of absence, whichever is less. (3) All matching contributions required under subsection (2) shall be paid by the government of the province. (4) Notwithstanding subsections (2), (6) and (7) an authorized leave of absence without pay may be purchased after the expiration period at a cost that may be determined by the minister and no matching contributions shall be paid by the government of the province. (5) The cost referred to in subsection (4) shall be the greater of the actuarial cost and the employee contributions required under section 6. (6) Upon the commencement of this section, a teacher with periods of authorized leave of absence without pay who did not purchase that service before the commencement of this section shall have 180 days from the commencement of this section to purchase those periods of leave of absence without pay as pensionable service in accordance with subsections (1) and (2). (7) The contributions referred to in subsection (6) shall be matched by the government of the province. (8) A teacher is not eligible to be credited with pensionable service under this section if the teacher is eligible to be credited with that pensionable service under another section of this Act. Rep. by 1998 c26 s8 13.1 [Rep. by 1998 c26 s7] Rep. by 1998 c26 s8 14. [Rep. by 1998 c26 s8] Payment of contributions for prior service 15. All contributions that are required to be paid under sections 10, 11, 12 and 13 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 teacher retires, together with the prescribed interest. 1991 c17 s15; 1994 c31 s3; 1998 c26 s9 Period of prior substitute teaching service 15.1 For the purchase of prior substitute teaching service under section 11, where the teacher did not contribute to the Substitute Teachers Pension Plan, the time period for payment for that service by instalment shall not exceed a period which is the shorter of (a ) twice the period of pensionable service; or (b) the period from the date of election to purchase the service to a date immediately preceding the date on which the teacher retires. Reciprocity 16. (1) A person who, before becoming a teacher, 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 teacher 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 under 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. (3) [Rep. by 1998 c26 s11] Transfer 16.1 (1) A person who, before becoming a teacher, 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 16 may, upon becoming a teacher, 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) shall apply only where the teacher has terminated his or her membership in the exporting pension plan and has not received a termination benefit from the exporting pension plan. (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 teacher 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 teacher 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. Right to a pension 17. (1) Every teacher shall, subject to this Act, receive a pension as a matter of right. (2) Upon retirement, a teacher shall be awarded a pension calculated and paid in accordance with this Act provided that he or she has been credited with at least 5 years of pensionable service. Retirement 18. A teacher shall be retired under the pension plan (a) when he or she makes an election under section 20 or terminates employment upon reaching normal retirement age; or
(b)
where he or she continues in employment after reaching normal retirement age, when he or she terminates employment or reaches the age at which a pension benefit is required to begin under the Income Tax Act
( Disability retirement 19. (1) Every teacher shall be retired under the pension plan where he or she is suffering from a physical or mental impairment that prevents the teacher from performing the duties of the employment in which he or she was engaged before the commencement of the impairment provided that the impairment is medically certified to the satisfaction of the minister as likely to be permanent. (2) The minister may, by notice in writing, require a pensioner who has retired under subsection (1) or who is receiving a pension under subsection 21(3.1) and who has not attained normal retirement age to be available for a medical examination that may be prescribed, and if upon that medical examination he or she is found to be in good health the minister may, by a further notice in writing, require him or her to resume employment as a teacher. (3) The pension of a pensioner referred to in subsection (2) who, upon receipt of the notice mentioned in that subsection, fails to be present for a medical examination in accordance with that subsection, or who upon receipt of the further notice mentioned in that subsection fails to resume employment as a teacher, shall be discontinued immediately during the period in which he or she fails to comply with the request contained in the notice. 1991 c17 s19; 1993 c23 s2; 1998 c26 s12 Early retirement 20. (1) A teacher who has reached early retirement age and has done not less than 25 years of pensionable service may elect to retire and receive a pension calculated and paid in accordance with section 22 and other provisions of this Act. (2) For the purpose of this section "early retirement age" means the end of the month in which a teacher reaches the age of 55 years. (3) Regardless of age, a teacher may retire early where that teacher has accrued not less than (a) 30 years of worked service; or (b) 29 years of worked service and 30 years of pensionable service. (4) For the purpose of paragraph (3)(b), a teacher under the age of 55 shall have pension benefits as calculated under section 22 reduced in accordance with the following table:
(5) The reduction of pension benefits referred to in subsection (4) shall cease when the teacher reaches the age of 55. (6) For the purpose of this section, "worked service" means pensionable service except a teachers university training years for which the teacher has been credited under the plan. Deferred pension 21. (1) A teacher who terminated employment, or whose employment was terminated for a reason other than disability, and who has been credited with not less than 5 years of pensionable service may elect to receive a deferred pension calculated in accordance with section 22 and paid from his or her normal retirement age, or, if he or she so qualifies, paid in accordance with section 20 and the other provisions of this Act. (2) A teacher who has made an election under subsection (1) and subsequently becomes a teacher is considered to have revoked his or her election. (3) Where a teacher 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 teacher were a pensioner on the 1st of the month immediately following termination. (3.1) A teacher who terminated his or her employment and elected to receive a deferred pension under subsection (1) and who, after his or her termination of employment, becomes incapacitated to the extent that the incapacity would, if he or she were employed as a teacher, cause retirement under section 19, shall receive a pension on that incapacity being medically certified to the minister as likely to be permanent. (4) Notwithstanding the locking-in provisions under The Pension Benefits Act or contributions held under that Act, a teacher may elect to have those contributions transferred to (a) a pension plan included in the Schedule to The Portability of Pensions Act ; (b) a pension plan of another jurisdiction with which the minister has entered into a reciprocal agreement; or (c) other locked-in pension plans or retirement arrangements that may be prescribed, provided that the teacher meets the terms and conditions required under these arrangements. (5) Subject to the locking-in provisions of The Pension Benefits Act , a teacher who elects to receive a pension under subsection (1) may negate his or her election and elect a return of his or her contributions together with interest at a prescribed rate. Calculation of pension 22. (1) A pension awarded to a teacher is the sum of (a) 1.4% of the lesser of the average of the (i) teachers highest 5 years of pensionable annual salary, and (ii) years maximum pensionable earnings in the 3 years immediately before retirement; plus (b) 2% of the excess of the average of the teachers highest 5 years of pensionable annual salary over the average of the years maximum pensionable earnings in the 3 years immediately before retirement, multiplied by the number of years and 1/10 years of pensionable service credited after
(1.1)
A bridge benefit
shall be paid to a teacher who retires before attaining the age of 65 and that bridge benefit shall be, subject to limitations imposed under the Income Tax Act
(Canada), equal to 0.6% of the lesser of the average of the teachers highest 5 years pensionable annual salary and the average of the years maximum pensionable earnings in the 3 years immediately before retirement multiplied by the number of years and 1/10 years of pensionable service credited after March 31, 1967. [effective
(1.2)
A bridge benefit paid under subsection (1.1) shall cease on the last day of the month in which the teacher who receives that benefit attains the age of 65 years. [effective
(1.3)
Notwithstanding subsection (1), where the period of pensionable service credited includes service credited or eligible to be credited for a period before (a) 1.62% of the lesser of the average of the (i) teacher's highest 5 years of pensionable annual salary, and (ii) year's maximum pensionable earnings in the 3 years immediately before retirement; plus (b) 2.22% of the excess of the average of the teacher's highest 5 years of pensionable annual salary over the average of the year's maximum pensionable earnings in the 3 years immediately before retirement multiplied by the number of years and 1/10 of pensionable service credited after
(2)
Commencing on (2.1) At the end of a school year, teachers who require 5/10 or less of a year of pensionable service in order to qualify for a pension, may elect to retire but that benefit shall be determined by the number of years and tenths of years of pensionable service accumulated to the date of retirement. (3) For the purposes of subsection (1), 1/10 part of a year of pensionable service shall be credited as prescribed. (4) For the purposes of subsection (1) not more than 10 1/10 parts of a year of pensionable service may be credited in a teaching year, and where fewer than 10 1/10 parts of a year of pensionable service are credited in a teaching year, that fraction may be added to fractions credited in other teaching years for the purpose of computing pensionable service. (5) [Rep. by 2006 c52 s13]
(6)
Notwithstanding subsection (1), a teachers accumulated percentage of pensionable service earned before the commencement of this section is protected by this Act except that the amount that is 0.6% of the lesser of the average of the teachers highest 5 years of pensionable annual salary and the average of the years maximum pensionable earnings in the 3 years immediately before retirement multiplied by the number of years and 1/10 years of pensionable service credited after March 31, 1967 shall, subject to the limitations imposed under the Income Tax Act
(Canada), be treated as a bridge benefit that ceases upon attaining 65 years of age. [(6)-(6.2) effective (6.1) Notwithstanding subsections (1.1) and (6), the amount equal to the bridge benefit calculated under those subsections shall continue after a teacher has attained the age of 65 years only in respect of years and 1/10 years of pensionable service credited after March 31, 1967, exceeding 35 years or while a teacher was a member of a religious order. (6.2) In this section, the words “years maximum pensionable earnings” have the same meaning as under the Canada Pension Plan established under the Canada Pension Plan Act (Canada). (7) Notwithstanding subsection (1), where the contribution to the pension plan of the government of the province is reduced under this Act and a teacher or former teacher 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 teacher's or former teacher's award of pension proportionately. (8) [Rep. by 1999 c35 s1] (9) [Rep. by 1999 c35 s1] (10) [Rep. by 1999 c35 s1] (11) [Rep. by 1999 c35 s1] 1991 c17 s22; 1993 c18 s3; 1995 c24 s3; 1998 c26 s14; 1999 c35 s1; 2005 c38 s4; 2006 c52 s13 Suspension of pension 23. (1) A teacher shall not receive a pension under the pension plan while he or she is employed as a teacher. (2) For the purpose of this section, a pension does not include a survivor benefit. Re-employment 24. (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 as a teacher.
(2)
A pensioner who has been retired under the pension plan under subsection 19(1) but has not reached the age at which a pension benefit is required to begin under the Income Tax Act
( (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 earlier retirement, and the pension shall be calculated in accordance with section 22 and the other provisions of this Act as if the award of the former pension had not occurred. (4) Notwithstanding subsection (1), a pensioner, with the approval of the minister, may be re-employed for a period which will not exceed 65 days in the aggregate in a teaching year during which he or she shall not be considered a teacher for the purpose of this Act. Rep. by 2007 c7 s9 25. [Rep. by 2007 c7 s9] Survivor benefits 26. (1) A survivor benefit equal to 60% of (a) the pension being paid to a pensioner who dies; (b) a pension entitlement of a teacher who dies in service; or (c) the pension entitlement of a deferred pensioner who dies would have received had he or she reached normal retirement age at the time of his or her death, shall be paid to the surviving principal beneficiary for life commencing on the 1st day of the month following the month in which the death of the pensioner, teacher or deferred pensioner occurs. (1.1) Notwithstanding subsection (1), a survivor benefit equal to 60% of (a) the pension paid to a deceased pensioner who retired on or after September 1, 1998 as if that pensioner were subject to the reduction under subsection 22(8); or (b) the pension entitlement of a teacher who dies in service on or after September 1, 1998, reduced in accordance with subsection 22(8) as if that teacher were 65 years of age on the date of his or her death; or (c) the pension entitlement a deferred pensioner who dies on or after September 1, 1998 would have received had he or she reached his or her normal retirement age at the time of his or her death, reduced in accordance with subsection 22(8) as if that deferred pensioner were 65 years of age on his or her date of death, shall be paid to the surviving principal beneficiary for life, commencing on the first day of the month following the month in which the death of the pensioner, teacher or deferred pensioner occurs. (2) 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. (3) 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. 1991 c17 s26; 1998 c26 s16; 2001 c22 s33; 2008 c23 s12 Indexing 26.1 (1) A teachers' indexing account shall be established as a separate account within the pension fund to provide for the increase in the amount of pension or survivor benefits referred to in subsection (3). (2) The following amounts shall be allocated to the teachers' indexing account: (a) .85% of the salary of every teacher to whom the pension plan applies from the money deducted under subsection 6(2); and (b) an amount equivalent to the amount under paragraph (a) from the contributions of the government of the province under subsection 8(1). (3) On September 1 in a year, the amount of pension or survivor benefit being paid to a person who has reached the age of 65 years shall be adjusted by multiplying (a) the annual amount of the pension or survivor benefit; by (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 that previous calendar year, but the amount of an increase shall not exceed 1.2% of the annual pension or survivor benefit.
(4)
Subsection (3) only applies to a pension or survivor benefit where the teacher to whom that pension or benefit relates retires after (5) The amount of a pension or survivor benefit being paid to a person shall not decrease by reason only of an adjustment under subsection (3). (6) Notwithstanding subsection (3), the amount of increase determined under subsection (3) shall be paid only to the extent that funds are available in the teachers' indexing account and in the event that the funds in the teachers' indexing account are insufficient to pay the full amount of the actuarial cost of the increase under subsection (3), the amount of the increase shall be reduced in accordance with subsection (7). (7) A reduction in the increase payable under subsection (3) shall be determined by the ratio of the funds in the teachers' indexing account to the actuarial cost of the increase under subsection (3). (8) For the purposes of subsections (6) and (7), the actuarial cost of the increase under subsection (3) shall be determined by the plan's actuary on September 1 of the year in which the adjustment under subsection (3) is made. (9) For the purposes of this section, the teachers' indexing account shall participate in the pension fund as if it were a plan defined under paragraph 2(c) of the Pensions Funding Act . (10) Notwithstanding subsection (6), section 9 of the Pensions Funding Act does not apply to the teachers' indexing account required under subsection (1).
(11)
This section is considered to have come into force on Designated beneficiary 27. (1) A teacher, pensioner or deferred pensioner who does not have a principal beneficiary or a child entitled to a survivor benefit may designate a beneficiary who is a dependent and who shall be considered to be a principal beneficiary for the purposes of section 26. (2) The designation of a beneficiary shall be made to the minister by way of a written instrument duly signed and witnessed. (3) The teacher, pensioner or deferred pensioner may revoke his or her election at any time and substitute another designated beneficiary in the same manner as required in subsection (2). (4) Where there is a subsequent principal beneficiary or child of a teacher, pensioner or deferred pensioner, the election shall be revoked effective from the death of the teacher, pensioner or deferred pensioner. (5) For the purpose of this section a dependent of a teacher at the time of the teachers death means a parent, grandparent, brother, sister, child or grandchild of the teacher who, at that time, is both dependent on the teacher for support and is (a) under 18 years of age and will not attain the age of 18 years in the calendar year of the death of the teacher; (b) under the age of 24 years and is in full time attendance at an educational institution; or (c) dependent on the teacher by reason of mental or physical infirmity. 1991 c17 s27; 1998 c26 s17; 2001 c22 s35; 2004 c47 s34 Death of employee 27.1 (1) Where a teacher with at least 5 years of pensionable service dies before receiving a pension and a survivor benefit is payable under section 26, a surviving principal beneficiary may elect (a) to receive the survivor benefit in accordance with section 26; or (b) to receive in a lump sum (i) the commuted value of the survivor benefit, or (ii) the commuted value of the teachers pension entitlement, whichever is the greater. (2) Where a teacher 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 26, the commuted value of the pension entitlement of the teacher or the deferred pensioner, calculated as of the date of death, shall be transferred to the teacher's or deferred pensioner's estate and subsections 9(3), (4) and (5) apply to the transfer. Estate provision 28. 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 teacher's contributions together with the prescribed interest calculated to the date of retirement, the excess amount shall be paid in accordance with section 9. Transitional
28.1
(1) A child who is receiving a survivor benefit when this section comes into force who is a child of a deceased teacher or deferred pensioner who died without a principal beneficiary after (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 teacher 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 teacher'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 teacher or deferred pensioner. (3) Notwithstanding the entitlements referred to in subsection (1), where the deceased teacher or deferred pensioner had more than one child, the children shall elect jointly and there shall be only one election for payment of the entitlement. (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. When pensions payable 29. (1) Pensions and other related money payable under the pension plan shall be paid as the minister directs. (2) Pension payments and other related money payable under the pension plan shall cease at the end of the month in which the death of the pensioner, survivor or designated beneficiary occurs. (3) Pension payments shall be equal and periodic. Pension payments 30. (1) A pension payable under this Act shall be paid according to the following: (a) a pension calculated under section 22, not exceeding the maximum annual allowable registered pension permitted under the Income Tax Act (Canada), shall be paid from the pension fund; and
(b)
a portion of the pension calculated under section 22 that exceeds the maximum annual allowable registered pension permitted under the Income Tax Act
( (2) Benefits payable under sections 26, 27, 27.1 and 28 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 proportions 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 the Consolidated Revenue Fund to the supplementary account sufficient money necessary to cover the deficit. Subsections apply notwithstanding 30.1 Subsections 6(3), 8(1.1) and 30(1) and (2) apply notwithstanding another provision of this Act or another Act. Pension not assignable 31. (1) A pension may not be assigned, surrendered, charged, anticipated or given as security except as provided under the Pension Benefits Act, 1997 . Attachment 32. A pension awarded under this Act shall not be liable to or be taken under attachment or execution. Error or misrepresentation 33. 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. Rectification 34. 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. Committee 35. 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 on which the committee shall make recommendations to the minister. Marriage breakdown 36. Where (a) a court has made an order for the division of matrimonial property under the Family Law Act or a similar order has been made by 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 right under this Act 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. Rep. by 1996 cR-10.1 s71 37. [Rep. by 1996 cR-10.1 s71] Appeal 38. (1) A teacher 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 the teacher of a pension or other money under this Act may appeal from the decision to a judge of the Trial Division. (2) Where a teacher 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 teacher or by his or her solicitor or agent and in the notice, the grounds of the appeal shall be set out, and the teacher or other person shall file a copy of the notice with the Trial Division. Procedure 39. (1) A teacher or other person shall, within 14 days after service of the notice of appeal under subsection 38(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 teacher 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. Conflict 40. (1) Where this Act conflicts with the Schools Act, 1997 or another Act of the province, 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 c17 s40; 1996 cS-12.1 s119; 1997 cS-12.2 s127; 1998 c26 s21 Plan protected 41. This Act shall apply to all benefits accrued under the former Act. Ministerial directive 42. The minister may issue directives for the purpose of this Act. Income Tax Act (
43.
For the purpose of the Income Tax Act
(
(a)
the pension adjustment factor as defined under the Income Tax Act
( (i) the money purchase limit for the year, or (ii) 18% of the members compensation from the employer for the year; (b) contributions under sections 6 and 8 shall be made under the recommendation of an actuary; and (c) the minister is the administrator of the pension plan. Acts amended 44. (1) Paragraph 3(b) of The Pensions Funding Act is repealed and the following substituted: (b) theTeachers' Pensions Act and The Education Act, 1927 ; (2) Where in an Act or regulation there is a reference to The Education (Teachers' 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 this Act. Teachers with greater than 30 years
45.
(1) Notwithstanding section 6 and subsection 47(2), where a teacher on (2) Notwithstanding subsection (1), a teacher referred to in subsection (1) may elect before attaining normal retirement age to contribute further to the pension plan and receive additional years of pensionable service in accordance with this Act. (3) [Rep. by 1998 c26 s24]
(4)
A teacher who fails to make an election under subsection (3) may elect to contribute after Rep. by 1998 c26 s25 46. [Rep. by 1998 c26 s25] Rep. by 1998 c26 s26 47. [Rep. by 1998 c26 s26] RSN 1970 c.102 Rep. 48. The Education (Teachers' Pensions) Act is repealed. Commencement
49.
This Act is considered to have come into force on ©Queen's Printer |