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RSNL1990 CHAPTER M-8

MEMORIAL UNIVERSITY PENSIONS ACT

Amended:

1992 c48 s28; 1993 c18 s5; 1993 c53 s22; 1994 c28 s19; 1995 c24; 1996 cR-10.1 s47; 1997 c13 s43; 1997 c35; 2001 c22 ss10-17;
2001 c42 s29; 2004 c20; 2005 c51; 2006 c40 s21; 2009 c25; 2009 c28

CHAPTER M-8

AN ACT RESPECTING A PENSION FUND FOR THE MEMORIAL UNIVERSITY OF NEWFOUNDLAND

Analysis


       
1.   Short title

       
2.   Definitions

       
3.   Application of Act

       
4.   Administration of Act

       
5.   Pension fund

     
5.1   Pension entitlement

       
6.   Charges upon fund

       
7.   Investment of fund

       
8.   Investments

       
9.   Trust account

     
10.   Accounts

     
11.   Report; audit of fund

     
12.   Contributions to fund

     
13.   Payments by government

     
14.   Consolidated Revenue Fund

     
15.   Retirement

   
15.1   Deferred pensions

   
15.2   Advanced retirement

     
16.   To whom pension payable

     
17.   Rep. by 2009 c28 s10

     
18.   Amount of pension

   
18.1   Rejoining pension plan

   
18.2   Offer of re-employment

     
19.   Pensionable service

   
19.1   Periods of unpaid leave or reduced pay

     
20.   War service

     
21.   Rep. by 1997 c35 s11

     
22.   Rep. by 2009 c28 s15

     
23.   Survivor's allowance

     
24.   Allowance to survivors of deferred pensioners

   
24.1   Indexing

     
25.   Refund

   
25.1   Residual amounts

     
26.   Repayment of contributions to survivor

     
27.   Repayment of contributions of deceased employees

     
28.   Saving

     
29.   Rep. by 2009 c28 s19

   
29.1   Policy directive

   
29.2   Rep. by 2009 c28 s21

     
30.   Rep. by 1996 cR-10.1 s47

     
31.   Rep. by 1996 cR-10.1 s47

     
32.   Rep. by 1996 cR-10.1 s47

     
33.   Pensionable employment

     
34.   Reciprocal agreements

   
34.1   Transfer where no agreement

     
35.   Agreement with president


Short title

        1. This Act may be cited as theMemorial University Pensions Act.

RSN1970 c232 s1

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Definitions

        2. In this Act

             (a)  "board" means the Board of Regents of the Memorial University of Newfoundland;

             (b)  "child" means

                      (i)  a person who is a child of a parent by birth, whether within or outside marriage,

                     (ii)  a person whom the parent has demonstrated a settled intention to treat as a child of the family other than under an arrangement where the child is placed for valuable consideration in a foster home by a person having lawful custody,

                    (iii)  a lawfully adopted child, or

                    (iv)  a person who has a legal guardian;

          (b.1)  "cohabiting partner",

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

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

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

          (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)  "department" means the Department of Education;

             (d)  "employee" means a person to whom this Act applies;

             (e)  "fund" means the fund created by this Act;

          (e.1)  "infirm" means incapable of pursuing substantial gainful employment because of a mental or physical disability as certified by a qualified medical practitioner;

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

             (g)  "normal retirement age" means 65 years of age;

             (h)  "pension" means an annual pension;

              (i)  "pensionable earnings" means the amount resulting on the multiplication of the pensionable salary by the number of years of pensionable service;

              (j)  "pensionable salary" means the average salary received in any 5 years of pensionable service chosen by the employee, calculated by reference to the salary in effect on the employee's date of retirement and on the same date in each prior year of pensionable service;

             (k)  "pensionable service" means service which may be taken into account in determining whether an employee has qualified for the award of a pension and the amount of a pension and includes service under section 19, provided that pensionable service will be eligible service as defined in the Income Tax Act (Canada) and regulations made under that Act;

          (k.1)  "prescribed" means as directed by the board in a policy directive under section 29.1;

          (k.2)  "principal beneficiary" means the spouse of an employee, or where the employee has a cohabiting partner, the employee's cohabiting partner;

          (k.3)  "salary" means the annual basic salary paid to an employee by the board or by an employer referred to in paragraphs 3(1)(b), (c) and (c.1), including other remuneration that the board may prescribe by policy directive made under section 29.1, but does not include remuneration paid for teaching at summer school or for services other than or ancillary to the principal duties in respect of the performance of which pensionable service is credited to him or her under this Act, except as may be prescribed by the board in a policy directive made under section 29.1;

              (l)  "spouse" means a person who

                      (i)  is married to the employee,

                     (ii)  is married to the employee 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, in good faith, that is void and is cohabiting or has cohabited with the employee within the preceding year;

            (m)  "university" means the Memorial University of Newfoundland;

             (n)  "year's basic exemption" means the year's basic exemption as defined under the Canada Pension Plan; and

             (o)  "year's maximum pensionable earnings" means the year's maximum pensionable earnings as defined under the Canada Pension Plan.

RSN1970 c232 s2; 1973 No35 Sch; 1977 c72 s1; 1984 c42 Sch B; 1987 c39 s1; 1990 c26 Sch B; 1997 c35 s1; 2001 c22 s10; 2004 c20 s1; 2006 c40 s21; 2009 c28 s1

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Application of Act

        3. (1) This Act applies to

             (a)  a person appointed by the board employed full-time for an indefinite term upon an annual salary paid wholly and directly by the board;

             (b)  a person employed full-time for an indefinite term by the Memorial University Recreation Complex Inc.;

             (c)  a person employed full-time for an indefinite term by a related not-for-profit employer whose operations and financial position are reported in the university’s consolidated financial statements and who is, upon the date of the coming into force of this paragraph, a member of the pension plan or in receipt of a pension benefit from the fund;

          (c.1)  a person employed full-time for an indefinite term by Memorial University of Newfoundland Students' Union, Medical Practice Associates, and the Geological Association of Canada, Newfoundland Section, and who is, on the date of the coming into force of this paragraph, a member of the pension plan or in receipt of a pension benefit from the fund;

             (d)  a person directed by the board to be included in the pension plan under subsection 29.1(2); and

             (e)  a person appointed by the board or by an employer referred to in paragraph (b), (c), or (c.1) who is employed on a less than full-time basis for an indefinite period as directed by the board and approved by the minister.

             (2)  The board may exempt an employee from the operation of this Act.

             (3)  An employee who, before his or her appointment by the board, had been contributing to a registered retirement savings arrangement may elect to continue his or her contributions to that arrangement by advising the board within 60 days of beginning his or her employment.

             (4)  Where an employee makes an election under subsection (3), the board may provide to the employee an amount for contribution to the registered retirement savings arrangement in which the employee participates not exceeding that which it would have otherwise contributed to the fund with respect to that person.

1977 c72 s2; 1987 c39 s2; 2005 c51 s1; 2009 c28 s2

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Administration of Act

        4. The board shall administer this Act and may appoint officers and other staff that are necessary for that purpose.

RSN1970 c232 s4

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Pension fund

        5. There shall be a fund to be known as The Memorial University Pension Fund into which shall be paid

             (a)  all contributions made by employees;

             (b)  all contributions made by the board under paragraph 34(1)(n) of theMemorial University Act;

          (b.1)  contributions made by an employer referred to in paragraphs 3(1)(b), (c) and (c.1) of this Act;

             (c)  amounts that may be voted by the Legislature for the purpose of the fund; and

             (d)  accruals of interest on the amounts mentioned in paragraphs (a), (b), (b.1) and (c).

RSN1970 c232 s5; 2005 c51 s2; 2009 c28 s3

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Pension entitlement

      5.1 (1) Notwithstanding the other provisions of this Act respecting the calculation of an award of pension, where the board reduces its contribution to the fund and an employee or a former employee affected by the reduction does not make a compensating contribution under subsection (2), the formulas contained in this Act respecting the calculation of an award of pension shall be adjusted to reduce the employee's or former employee's award of pension proportionately.

             (2)  Where the board reduces its contribution, an employee or a former employee may elect to contribute an amount, in addition to the amount that 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, that would place the employee or former employee in the position he or she would have been in respecting an award of pension if the board had not reduced its contribution, but the amount of an employee's or a former employee's contribution under this subsection shall not result in a purchase of service in excess of the reduction of service under subsection (1) which the employee or former employee would have been subject to if he or she had not made a contribution under this subsection.

[NOTE: Section 5.1 in force April 1, 1993 to March 31, 1994 only.]

1993 c18 s5; 1995 c24 s5

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Charges upon fund

        6. All pensions, payments and refunds, and all expenses of the administration of this Act are a charge upon and payable out of the fund and if at any time there is not sufficient money at the credit of the fund for those purposes as they fall due for payment the Minister of Finance shall pay to the board an amount to cover the deficiency, and the board shall deposit that amount to the fund.

2009 c28 s4

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Investment of fund

        7. The fund shall be held in trust by the board and may be invested in

             (a)  bonds or debentures of a municipality in Canada or a public school corporation or other corporation, which are guaranteed by the Government of Canada or a province;

             (b)  investments in which life insurance companies are authorized by the Parliament of Canada to invest funds, subject to the limitation on investments in stocks, bonds, debentures and real estate mortgages set out in the Insurance Companies Act (Canada); and

             (c)  other securities and upon terms and conditions that are approved for the purpose by the Lieutenant-Governor in Council; or

             (d)  any of the securities or investments referred to in paragraphs (a) to (c).

RSN1970 c232 s7; 1973 No101 s2; 1994 c28 s19

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Investments

        8. All investments and reinvestments under section 7 shall conform to the investment requirements of

             (a)  section 37 of the Pension Benefits Act, 1997 ; and

             (b)  the regulations made under section 78 of that Act.

2009 c28 s5

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Trust account

        9. (1) All money paid into the fund shall be deposited to the credit of the fund in a trust account kept by a custodian approved by the board.

             (2)  All money required by the board for the purpose of this Act shall be paid out of the account established under subsection (1) by cheques signed by members of the board, or officers of the university, that may be authorized by the board.

1977 c72 s4; 2009 c28 s6

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Accounts

      10. The board shall keep complete books of account in which shall be entered all amounts paid into and out of the fund and all details of the amounts and all other transactions and the details of those transactions carried on by the board in connection with the fund.

RSN1970 c232 s9

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Report; audit of fund

      11. (1) The chairperson of the board shall not later than September 30 in each year submit to the minister a report of the work of the board in connection with the fund and the report shall include an account made up to the preceding March 31, setting out the receipts and expenditures of the fund during the preceding year and a statement of the assets and liabilities of the fund.

             (2)  The minister shall lay the report and account before the Legislature within 15 days after they are submitted to him or her, if the Legislature is then in session, and, if not, then within 15 days after the beginning of the next session.

             (3)  The account submitted under subsection (1) shall be signed by the chairperson or vice-chairperson and by the treasurer of the board, and certified by the auditor general or a person appointed under section 38 of the Memorial University Act and shall include any relevant report which that auditor may have made to the board.

             (4)  The account kept under subsection (1) shall be audited annually.

RSN1970 c232 s10; 1997 c35 s2

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Contributions to fund

      12. (1) An employee shall contribute to the fund an amount set by directive of the Minister of Finance provided that an employee's contributions in a year shall not exceed the lesser of

             (a)  9% of the employee's compensation from the board or an employer referred to in paragraphs 3(1)(b), (c) and (c.1) for the year; and

             (b)  $1,000 plus 70% of the employee's total pension credits for the year

or another limit as prescribed by the Income Tax Act (Canada ).

          (1.1)  The Minister of Finance shall by directive set the rate of contributions to be paid by employees at a level sufficient to fund one half of

             (a)  the current service costs of the plan as determined by the most recent actuarial valuation; and

             (b)  the cost of amortization over 40 years of the unfunded liability, on the coming into force of this section, arising from the cost of providing indexed benefits in relation to past service under section 24.1.

             (2)  The allowances referred to in sections 23 and 24 shall be paid in that proportion that the period in which a contribution made under subsection (1) bears to the entire period of the employee's pensionable service.

             (3)  There shall be deducted from the salary of each employee and paid into the fund the contributions payable under this section.

          (3.1)  The board and an employer referred to in paragraphs 3(1)(b), (c) and (c.1) shall contribute to the fund an amount equal to the contributions paid by their employees under this section and additional amounts required to be paid by an employer under the Pension Benefits Act,1997 and the rateable share of those additional amounts shall be determined by the board where

             (a)  contributions in any month will not be less than the amount, if any, identified by the actuary as necessary to maintain registration of the plan under the Pension Benefits Act, 1997;

             (b)  contributions in any month will not be more than the amount, if any, identified by the actuary as the maximum amount permissible in order to maintain registration of the plan under the Income Tax Act (Canada); and

             (c)  those contributions are eligible contributions as that term is defined in the Income Tax Act (Canada ).

          (3.2)  For the purpose of subsection (1), the terms "compensation" and "total pension credits" shall have the meaning assigned to them in the Income Tax Act (Canada).

             (4)  [Rep. by 1997 c35 s3]

             (5)  [Rep. by 2005 c51 s3]

1977 c72 s5; 1987 c39 s3; 1995 c24 s5; 1997 c35 s3; 2004 c20 s2; 2005 c51 s3; 2009 c28 s7

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Payments by government

      13. (1) Where a pension has been awarded to an employee under this Act and in determining the amount of the pension a period referred to in paragraph 19(1)(e) was counted as pensionable service, the Minister of Finance shall pay to the board on March 31 in a year during which or part of which the pension was paid, an amount bearing the same proportion to the pension as that period bears to the whole of the pensionable service taken into account in determining the amount of the pension, and the board shall deposit that amount to the fund.

             (2)  In calculating the amount of a pension under this Act the Increase of Pensions Acts shall apply in relation to a pension for which service has been credited under paragraph 19(1)(e).

RSN1970 c232 s12; 1985 c25 s1; 2009 c28 s8

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Consolidated Revenue Fund

      14. A payment that the Minister of Finance may be required to make under section 13 shall be made by him or her out of the Consolidated Revenue Fund of the province.

RSN1970 c232 s13

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Retirement

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

             (a)  when he or she terminates employment on reaching normal retirement age;

             (b)  when he or she makes an election under subsection (2) or (3) or section 15.2;

             (c)  where he or she continues 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

             (d)  [Rep. by 2009 c28 s9]

             (2)  An employee who has reached age 60 and who is entitled to a pension benefit under subsection (5) may elect to retire before the employee's normal retirement age and upon that election shall receive an immediate pension.

             (3)  An employee who has reached age 55 and who is entitled to a pension benefit under subsection (5) may elect to retire before reaching age 60.

             (4)  An employee who has elected to retire under subsection (3)

             (a)  shall, if he or she has less than 30 years pensionable service, receive an immediate pension to be reduced by 1/2 of 1% for each month from the beginning of his or her pension to the 1st day of the month following his or her 60th birthday; or

             (b)  shall, if he or she has 30 years or more pensionable service, receive an immediate pension.

             (5)  An employee who retires or ceases to be a member of the plan is entitled to a deferred pension benefit in accordance with this Act where

             (a)  with respect to pensionable service credited before January 1, 1997 , the employee has completed 5 years of pensionable service; and

             (b)  with respect to pensionable service credited on and after January 1, 1997 , the employee has completed 2 years of pensionable service.

             (6)  [Rep. by 1997 c35 s4]

             (7)  [Rep. by 2009 c25 s1]

             (8)  [Rep. by 2009 c25 s1]

1977 c72 s6; 1979 c48 s1; 1987 c39 s4; 1997 c35 s4; 2005 c51 s4; 2009 c25 s1; 2009 c28 s9

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Deferred pensions

   15.1 (1) If a person entitled to receive a pension benefit under subsection 15(5) ceases to be an employee for any reason other than that set out in paragraph 15(1)(b) before the employee reaches age 55 and has not withdrawn his or her contributions to the fund, the employee may elect to receive a deferred pension.

             (2)  An employee who has elected to receive a deferred pension under subsection (1) shall

             (a)  if the employee has less than 30 years pensionable service, receive a pension upon reaching age 60; or

             (b)  if the employee has 30 years or more pensionable service, receive a pension upon reaching age 55.

             (3)  Subject to the locking-in provisions of the Pension Benefits Act, 1997 , an employee who elects to receive a pension under subsection (1) but is not in receipt of a pension may revoke the election and elect a benefit under paragraph 25(1.1)(b).

             (4)  An employee who elects to receive a pension under subsection (1) and is not in receipt of a pension may revoke the election where the revocation is for the purpose of transferring pensionable service to a pension plan included in the Schedule to the Portability of Pensions Act or another pension plan under a reciprocal agreement under section 34.

1997 c35 s5

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Advanced retirement

   15.2 (1) An employee who has reached the age of 50 and has completed not less than 30 years of pensionable service may elect to retire before the employee reaches the age of 55.

             (2)  An employee who has elected to retire under subsection (1) shall receive an immediate pension to be reduced by.5% for each month from the beginning of the employee's pension to the first day of the month following the employee reaching age 55.

1997 c35 s5

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To whom pension payable

      16. The board shall award a pension to an employee who is entitled to a pension benefit under section 15 and has retired under that section.

1997 c35 s6

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Rep. by 2009 c28 s10

      17. [Rep. by 2009 c28 s10]

2009 c28 s10

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Amount of pension

      18. (1) The annual amount of pension awarded under section 16 shall be equal to:

             (a)  2% of pensionable salary up to the average year's basic exemption for the same 5 years used in determining pensionable salary;

             (b)  1.4% of pensionable salary in excess of the same average year's basic exemption and up to the average year's maximum pensionable earnings for the same 5 years used in determining pensionable salary; and

             (c)  2% of pensionable salary in excess of the same average year's maximum pensionable earnings;

with the total multiplied by

             (d)  the employee's pensionable service.

          (1.1)  In addition to the pension under subsection (1), where an employee retires prior to age 65, a bridge pension shall be payable until the employee turns age 65, and the annual amount of that pension shall be equal to

             (a)  0.6% of pensionable salary in excess of the average year's basic exemption and up to the average year's maximum pensionable earnings for the same 5 years used in determining pensionable salary,

multiplied by

             (b)  the employee's pensionable service.

          (1.2)  The board, with the approval of the minister, may issue a directive to exempt a person or class of persons from the application of subsections (1) and (1.1).

             (2)  A pension awarded under this Act, whether on retirement, termination of employment or termination of the plan, shall not exceed the maximum allowable benefit payable as determined under the Income Tax Act (Canada).

             (3)  Subsection (2) shall not apply to an annual pension of $300 or less for each year of pensionable service before January 1, 1992 or to the portion of the pension derived from an employee's voluntary contributions on account of current service.

             (4)  [Rep. by 2005 c51 s5]

             (5)  In calculating the amount of a pension under this Act, the Increase of Pensions Acts shall apply to a person who has elected to receive or receives a deferred pension.

1977 c72 s7; 1982 c58 s1; 1987 c39 s5; 1997 c35 s7; 2005 c51 s5; 2009 c28 s11

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Rejoining pension plan

   18.1 (1) An employee who has not reached normal retirement age and who is not in receipt of a pension under this Act and who has completed 35 years of pensionable service may elect to rejoin the pension plan.

             (2)  This section is considered to have come into force on January 1, 1997 .

1997 c35 s8

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Offer of re-employment

   18.2 (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)  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 in accordance with 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 first retirement and the pension shall be calculated in accordance with section 18 as if the award of the former pension had not occurred.

2009 c28 s12

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Pensionable service

      19. (1) Unless this Act otherwise provides, the only periods of service which shall be taken into account in determining whether an employee has qualified for the award of a pension and the amount of that pension are

             (a)  the period served as an employee under this Act;

          (a.1)  in the case of an employee referred to in paragraph 3(1)(b), a period of eligible pensionable service credited under the pension plan of the City of St. John’s provided that funds sufficient to pay the actuarial cost of service with the City of St. John’s, as determined by the actuary appointed by the board, are transferred directly to the fund or, if funds are not sufficient to pay the actuarial cost of that eligible pensionable service, the period of eligible service that is the product of the total eligible service with the City of St. John’s times the ratio that the funds transferred have to the actuarial cost of the eligible pensionable service;

          (a.2)  where an employee is not in full-time employment, the proportionate period of pensionable service served determined with reference to the ratio that the employee’s part-time employment bears to full-time employment as directed by the board;

             (b)    (i)  2/3 of the period served in employment at the Memorial University College before 1945,

                     (ii)  the remaining 1/3 of that period of service where the employee pays to the fund contributions in accordance with this Act in respect of that 1/3,

                    (iii)  the period served in employment at the Memorial University College from 1945 to 1949, both inclusive, where the employee pays to the fund contributions in accordance with this Act in respect of that period;

             (c)  in respect of service before 1992, the period, not exceeding 2 years, during which an employee is on leave of absence and

                      (i)  during the period the employee continues to contribute to the fund based on the salary the employee would have received if he or she had rendered services during the period of leave,

                     (ii)  the employee elects within the lesser of 90 days after returning from that authorized leave and the date of termination from the employer to purchase the period of leave, and contributes to the fund an amount to be prescribed based on the salary the employee would have received if he or she had rendered services during the period of leave, or

                    (iii)  the employee elects after expiration of the period referred to in subparagraph (ii) and pays contributions to be calculated in accordance with the terms and conditions that may be prescribed;

          (c.1)  the period during which an employee is on an authorized unpaid leave of absence or reduced pay, subject to section 19.1;

             (d)  the period during which an employee continues his or her contributions to the fund and is totally disabled and is participating in the long term disability plan of the university or a similar plan substituted for it;

             (e)  subject to the regulations referred to in section 8, the period served as a teacher in the province or as an established civil servant as defined by the Public Employees Act or as an employee as defined by the Public Service Pensions Act where,

                      (i)  the period would have counted for pension under The Education Act, 1927, or a scheme which replaces the pension scheme provided by that Act, or under the Public Employees Act or the Public Service Pensions Act,

                     (ii)  the employee forfeits all claim to and has received no payment of pension in respect of that period, or if, having received payment of that pension, he or she has refunded the payment,

                    (iii)  in cases where contributions towards pensions were payable during the period, the contributions have been paid by the employee and have not been refunded to him or her or if refunded have again been paid by the employee with interest at the rate that at the time the refund applied in the case of withdrawal of contributions;

              (f)  subject to the limits on prescribed compensation set out in the regulations made under the Income Tax Act (Canada), the period of service by an employee in the naval, military, or air forces of the Crown, active and ancillary from enlistment to honourable discharge if the employee, immediately before joining the forces, was an employee of the board, or was serving in employment at the Memorial University College, or was employed as a teacher in the province or as an established civil servant as defined by the Public Employees Act or as an employee as defined by the Public Service Pensions Act, and if he or she resumed that employment within 3 months after his or her discharge from the forces or within a further 9 months if within that 9 months the person was prevented from assuming his or her duties as an employee because of illness, injury or other cause attributable to his or her war service.

             (2)  A person who was previously employed

             (a)  as a teacher in the province;

             (b)  as a civil servant as defined by the Public Employees Act;

             (c)  with a board, agency, commission or corporation created 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 that body, agency, commission or corporation;

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

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

              (f)  with a private home for special care as defined in subparagraph 2(c)(i) of thePrivate Homes for Special Care Allowances Act;

             (g)  with 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;

             (h)  with the Association of Registered Nurses of Newfoundland ;

              (i)  with the Public Service Credit Union Limited; and

              (j)  with the Federation of School Board Associations of Newfoundland and Labrador ,

and received upon leaving, a refund of contributions from the respective pension plan may elect to buy pensionable service.

             (3)  The cost of buying pensionable service is based on the formula approved by the board in a policy directive under section 29.1.

             (4)  [Rep. by 2009 c28 s13]

RSN1970 c232 s18; 1971 No8 s3; 1971 No14 s2; 1973 No101 s5; 1977 c72 s8; 1982 c58 s2; 1987 c39 s6; 1992 c48 s28; 1997 c13 s43; 1997 c35 s9; 2005 c51 s6; 2009 c28 s13

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Periods of unpaid leave or reduced pay

   19.1 (1) In this section

             (a)  "actual salary" means the remuneration actually received by the employee during a period of reduced pay;

             (b)  "nominal salary" means the salary of the employee in effect before a period of reduced pay or leave of absence without pay and any subsequent annual increments accorded by the regular salary program of the university or an employer referred to in paragraphs 3(1)( b), (c) and (c.1); and

             (c)  "period of reduced pay" means a period after 1991

                      (i)  in each year of which the employee renders services to the board or an employer referred to in paragraphs 3(1)(b), (c) and (c.1), and

                     (ii)  in each year of which the actual salary received by the employee is less than the nominal salary as a consequence of the employee and the board or an employer referred to in paragraphs 3(1)(b), (c) and (c.1) having entered into a reduced pay arrangement.

             (2)  An employee who is on an authorized unpaid leave of absence may have that period credited as pensionable service, where

             (a)  during the period the employee continues to contribute to the fund based on the employee's nominal salary;

             (b)  the employee elects within the lesser of 90 days after returning from that authorized leave and the date of termination from the employer to purchase the period of leave, and contributes to the fund an amount to be prescribed based on the employee's nominal salary; or

             (c)  the employee elects after expiration of the period referred to in paragraph (b) and contributes to the fund an amount to be prescribed based on the employee's salary at the date of election to purchase.

             (3)  An employee who has completed at least 36 months employment and has entered into a reduced pay arrangement, as approved by the board or, subject to the board's approval, by an employer referred to in paragraphs 3(1)(b), (c), or (c.1) shall, where the reduced pay arrangement so provides, have that period of reduced pay credited as pensionable service, subject to the limits set out in subsection (4) and provided that

             (a)  pensionable service under this section shall be credited in full for the duration of the period of reduced pay;

             (b)  contributions made to the fund by the employee and the board or an employer referred to in paragraphs 3(1)(b), (c) or (c.1) shall be based on the employee's nominal salary; and

             (c)  the employee's nominal salary shall be used in the determination of pensionable salary.

             (4)  Notwithstanding subsection (2), the 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 the regulations made under the Income Tax Act (Canada).

2009 c28 s14

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War service

      20. (1) In this section,

             (a)  "employee" means a person, including a person retired on pension, to whom this Act applies; and

             (b)  "war service" means the total period of service of an employee during World War I, World War II and the Korean War in the Naval, Military or Air Forces of the Crown, the Crown in right of Canada or the Crown in right of the province and includes service in the Merchant Marine, the Auxiliary Forces, the Overseas Forestry Unit and the Rescue Tugs.

             (2)  An employee who had war service and who retired on pension before April 1, 1975 ,

             (a)  if still living, shall have his or her pension recalculated to include his or her war service; or

             (b)  if deceased, his or her survivor's pension benefits shall be recalculated to include the war service of the deceased employee in the proportion that the relevant provisions of this Act prescribe.

             (3)  War service which may not be counted as pensionable service under paragraph 19(1)(f) shall be counted as pensionable service of an employee provided the employee has performed not less than 5 years of pensionable service with the Memorial University of Newfoundland before the addition of war service.

             (4)  An increase of pension or survivor benefits resulting from a recalculation under subsection (2) is payable with effect from April 1, 1975 .

             (5)  War service shall be credited for pensionable purposes at the rate of 2% for each year of war service.

             (6)  War service shall not be counted for pensionable purposes

             (a)  where the counting of that service would result in a refund of contributions made in respect of pensionable service earned by an employee before April 1, 1975; or

             (b)  where the employee was receiving or entitled to receive under his or her pension plan a maximum pension on March 31, 1975 .

             (7)  An employee who had war service before April 1, 1975 , shall be credited with all or a portion of his or her war service, but the amount of war service so counted shall not yield more than the maximum pension under the pension plan of the employee.

             (8)  War service shall not be counted for pensionable purposes unless the period of war service is confirmed by the Department of Veterans Affairs (Canada ) and is substantiated to the satisfaction of the board.

1975 No58 s2; 1997 c35 s10

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Rep. by 1997 c35 s11

      21. [Rep. by 1997 c35 s11]

1997 c35 s11

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Rep. by 2009 c28 s15

      22. [Rep. by 2009 c28 s15]

2009 c28 s15

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Survivor's allowance

      23. (1) Where an employee

             (a)  dies while in receipt of a pension;

             (b)  is entitled to a pension on retirement under section 15, and dies after retirement but before receiving a pension; or

             (c)  is entitled to a pension on retirement under section 15, and dies before retirement,

the board shall award to the surviving principal beneficiary an allowance equal to 60% of the pension being paid to the employee or to which the employee is entitled at the date of death, without actuarial reduction, and on the death of the surviving principal beneficiary an allowance which the surviving principal beneficiary was receiving at the date of death, if the employee or surviving principal beneficiary leaves a child or children under age 18, shall be paid by the board to the guardian of the child or children to be expended at the direction of the board for the support, maintenance and education of each child until the child reaches age 18, and where there are 2 or more children each child shall share equally in the benefits to be derived from the allowance.

             (2)  Where an employee referred to in paragraph (1)(a) dies leaving no surviving principal beneficiary, the survivor's allowance that would have been paid had there been a surviving principal beneficiary shall be paid by the board to the guardian of the employee's surviving children to be expended at the direction of the board for the support, maintenance and education of each child until the child reaches age 18, and where there are 2 or more children, each child shall share equally in the benefits to be derived from the allowance.

             (3)  Notwithstanding subsections (1) and (2), the age limit of 18 set out in those subsections is increased to 24 while the child is in full-time attendance at a school or post-secondary institution, or is infirm.

             (4)  With respect to service after 1996, where the commuted value of the survivor's allowance payable under paragraphs (1)(b) and (c) is less than the commuted value of the employee's deferred pension benefit, the survivor's allowance shall be increased so as to have a commuted value equal to the commuted value of the employee's deferred pension benefit.

             (5)  The surviving principal beneficiary may elect to receive the commuted value of the survivor's allowance payable under paragraphs (1)(b) and (c) as a lump sum cash refund or a transfer to a registered retirement savings arrangement in which the surviving principal beneficiary participates provided that the surviving principal beneficiary meets the terms and conditions required by the registered retirement savings arrangement.

             (6)  Where an employee referred to in subsection (1) has not reached the age of 65 years at the date of his or her death, the survivor's allowance shall include 60% of the bridge pension that the employee was receiving or was entitled to receive under subsection 18(1.1) and that amount shall be payable up to and including the month in which the deceased employee would have turned 65.

2009 c28 s16

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Allowance to survivors of deferred pensioners

      24. The board shall pay an allowance in accordance with section 23 to the surviving principal beneficiary or child of a deferred pensioner who dies before receiving the deferred pension.

2001 c22 s13

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Indexing

   24.1 (1) On the first day of the month following the month in which this section comes into force, and on each anniversary of that day, 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;

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 the previous calendar year,

but the amount of an 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).

2004 c20 s3

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Refund

      25. (1) Where an employee ceases to be an employee before becoming entitled to a pension under this Act, the board shall refund to the employee, within 12 months of the person ceasing to be an employee or, upon ceasing to be an employee, at the person's own request, the amount of the employee's contributions to the fund together with interest at the prescribed rate.

          (1.1)  Where an employee ceases to be an employee after becoming entitled to a pension under this Act, the employee shall elect

             (a)  a deferred pension; or

             (b)  subject to the locking-in provisions of the Pension Benefits Act, 1997 ,

                      (i)  a return of the employee's contributions made to the fund before January 1, 1997, together with interest at the prescribed rate, and transfer of the commuted value of the pension benefit accrued after December 31, 1996 in accordance with subsection (1.2), or

                     (ii)  a transfer of the commuted value of the employee's deferred pension benefit in accordance with subsection (1.2).

          (1.2)  A transfer under paragraph 25(1.1)(b) shall be to a pension vehicle or other retirement arrangement that may be prescribed, provided that the employee meets the terms and conditions required under these arrangements.

             (2)  The refund of contributions and payment of interest under subsection (1) are instead of all pension rights under this Act.

             (3)  A person who has ceased to be an employee and who has received a refund under subsection (1) may, if the person is re-employed by the board or an employer referred to in paragraphs 3(1)(b) and (c), be credited with the prior pensionable service that the employee may elect to purchase by paying an amount to be calculated in accordance with the terms and conditions that may be prescribed.

             (4)  For the purpose of this section, "prior pensionable service" means all pensionable service under the pension plan.

RSN1970 c232 s23; 1977 c72 s11; 1979 c48 Sch; 1997 c35 s13; 2005 c51 s7

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Residual amounts

   25.1 Where, upon the death of an employee in receipt of a pension, an allowance is paid to an eligible dependent and that dependent dies or ceases to be entitled to the allowance, any amount by which the contribution made by the deceased employee, plus interest at the prescribed rate, credited to the date of retirement, exceeds the aggregate of all amounts paid on behalf of the deceased employee under this Act shall be paid to the deceased employee's estate.

1997 c35 s14

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Repayment of contributions to survivor

      26. Where an employee dies before becoming entitled to a pension under this Act, the board shall pay to a surviving principal beneficiary the amount the employee has contributed to the fund, together with interest at the prescribed rate.

2009 c28 s17

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Repayment of contributions of deceased employees

      27. (1) Where an employee dies before becoming entitled to a pension under this Act and leaves no principal beneficiary, the board shall pay to the employee's executor or administrator the amount the employee has contributed to the fund together with interest at the prescribed rate.

             (2)  When an employee or deferred pensioner dies and leaves no principal beneficiary, the board shall pay to the employee's or deferred pensioner's executor or administrator the following benefit:

             (a)  where the employee was in receipt of a pension, an amount equal to the amount the employee has contributed to the fund, with interest at the prescribed rate, credited to the date of retirement, less the total of pension payments received by the employee; or

             (b)  where the employee or deferred pensioner was entitled to a pension on retirement under this Act and dies before receiving a pension, the following amounts:

                      (i)  in respect of pensionable service before January 1, 1997 , the employee's contributions together with interest at the prescribed rate, and

                     (ii)  in respect of pensionable service on and after January 1, 1997 , the commuted value of the pension.

2009 c28 s18

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Saving

      28. Nothing in this Act shall prejudice the right of the board to make a special contract of employment with an employee which contains a provision that this Act shall not apply to him or her.

RSN1970 c232 s26

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Rep. by 2009 c28 s19

      29. [Rep. by 2009 c28 s19]

2009 c28 s19

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Policy directive

   29.1 (1) Subject to the approval of the minister, the board may prescribe policy directives to give effect to this Act including directives prescribing rates of interest and terms and conditions under which an employee or a person about to become an employee may purchase service which shall be counted as pensionable service.

             (2)  Subject to the approval of the minister, the board may prescribe by policy directive that

             (a)  employees appointed by the board who are employed full-time or part-time for a fixed term of employment on a salary paid wholly and directly by the board; and

             (b)  employees of an employer referred to in paragraphs 3(1)(b), (c) and (c.1) who are employed full-time or part-time for a fixed term of employment,

be included in the pension plan.

             (3)  A directive prescribed under subsection (2) may establish the terms and conditions upon which prior service with the board or an employer referred to in paragraph 3(1)(b), (c) or (c.1) may be counted as pensionable service under this Act and may provide for matters relating to the prior service.

2005 c51 s8; 2009 c28 s20

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Rep. by 2009 c28 s21

   29.2 [Rep. by 2009 c28 s21]

2009 c28 s21

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Rep. by 1996 cR-10.1 s47

      30. [Rep. by 1996 cR-10.1 s47]

1996 cR-10.1 s47

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Rep. by 1996 cR-10.1 s47

      31. [Rep. by 1996 cR-10.1 s47]

1996 cR-10.1 s47

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Rep. by 1996 cR-10.1 s47

      32. [Rep. by 1996 cR-10.1 s47]

1996 cR-10.1 s47

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Pensionable employment

      33. Subject to the Canada Pension Plan, employment as an employee is pensionable employment for the purposes of the Canada Pension Plan.

RSN1970 c232 s32

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Reciprocal agreements

      34. (1) The board may, with the approval of the minister, enter into a reciprocal agreement with

             (a)  the province;

             (b)  the Government of Canada ;

             (c)  the government of another province of Canada ;

             (d)  an agency of the province, the Government of Canada or the government of another province of Canada ;

              (f)  a company, corporation, institution or a legal entity authorized to carry on business in Canada ; and

             (g)  another person approved by the board

to give effect to the purposes set out in subsection (2) and to provide that payments be made into and out of the fund under that agreement.

             (2)  Where an employee who was formerly employed by a government, agency, institution or other person with whom there is a reciprocal agreement under subsection (1), and that government, agency, institution or other person has a pension plan in which the employee was formerly a member, that employee may be credited with pensionable service under this Act that is the whole or part of his or her years of pensionable service credited to him or her under his or her former plan in accordance with that reciprocal agreement.

2005 c51 s10

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Transfer where no agreement

   34.1 (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)  which is the subject of a reciprocal agreement under section 34,

may, upon becoming an employee, elect to have that pensionable service transferred directly from the exporting pension plan and credited as pensionable service under this Act.

             (2)  Subsection (1) shall apply only where the employee has terminated his or her membership in the exporting pension plan and has not received a termination benefit from the exporting pension plan.

             (3)  A period of pensionable service may be transferred under subsection (1) provided that it is not already counted as pensionable service under this Act.

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

             (5)  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 actuary appointed by the board.

             (6)  Upon an election under subsection (1), the exporting pension plan shall transfer to the fund 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 employee is entitled.

             (7)  Where the lump-sum amount transferred under subsection (6) 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 which can be financed by the lump-sum amount.

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

             (9)  For the purpose of this section, "actuarial cost" means the cost of 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 c51 s10

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Agreement with president

      35. (1) The board may enter into an agreement with the president of the university at the date of his or her appointment as president or after that date but with effect from that date providing for

             (a)  the awarding of a pension which for the purposes of this section includes an annuity, allowance, or gratuity, to the president or to his or her surviving principal beneficiary and children, on his or her retirement or on his or her illness or death before or after retirement, and the conditions under which he or she will be entitled to retire;

             (b)  the terms and conditions upon which a pension may be awarded, including whether it will be awarded on a contributory or non-contributory basis, and the amount of the contribution, to be paid by the person to whom the pension applies; and

             (c)  other matters touching the awarding and payment of a pension.

             (2)  An agreement referred to in subsection (1) may include by reference a provision of this Act as a provision to which the agreement is subject.

             (3)  A pension awarded under an agreement referred to in subsection (1)

             (a)  which includes the provisions of the Act referred to in subsection (2) which relate to the payment of contributions shall be paid out of the fund; and

             (b)  which does not include the provisions of the Act referred to in paragraph (a) shall be paid out of the current income of the university.

1975 No18 s2; 2001 c22 s17; 2009 c28 s22