64

 


Third Session, 45th General Assembly

55 Elizabeth II, 2006

BILL 64

AN ACT TO AMEND THE PUBLIC SERVICE PENSIONS ACT, 1991 AND THE TEACHERS' PENSIONS ACT

Received and Read the First Time...................................................................................................

Second Reading.................................................................................................................................

Committee............................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE LOYOLA SULLIVAN

Minister of Finance and President of Treasury Board

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTE

This Bill would amend the Public Service Pensions Act, 1991 and the Teachers' Pensions Act to provide for the establishment of a Public Service Supplementary Plan Account and a Teachers' Supplementary Plan Account in the Consolidated Revenue Fund.  The Bill would provide that, in each case, employee and employer pension plan contributions in excess of those permitted to be contributed to a registered pension plan under the Income Tax Act (Canada) would be deposited into the particular supplementary account on an annual basis.  The Bill would further amend each Act to provide that pension benefits would be paid as follows:  pension benefits to the deductible limit permitted under the Income Tax Act (Canada) would be paid from the pension fund; benefits in excess of the deductible limit would be paid from the particular supplementary account.

A BILL

AN ACT TO AMEND THE PUBLIC SERVICE PENSIONS ACT, 1991 AND THE TEACHERS' PENSIONS ACT

Analysis


              PUBLIC SERVICE PENSIONS ACT, 1991

        1.   S.2 Amdt.
Definitions

        2.   S.4 Amdt.
Pension plan

        3.   S.5 Amdt.
Employee contributions

        4.   S.6 Amdt.
Deductions paid to fund

        5.   S.18 Amdt.
Calculation of pension

        6.   S.18.1 Rep.
Exempted pensionable service

        7.   S.26 R&S
Pension payments

        8.   S.26.1 Added
Subsections apply notwithstanding

              TEACHERS' PENSIONS ACT

        9.   S.2 Amdt.
Interpretation

      10.   S.5 Amdt.
Pension plan

      11.   S.6 Amdt.
Contributions by teachers

      12.   S.8 Amdt.
Government contributions

      13.   S.22 Amdt.
Calculation of pension

      14.   S.30 R&S
Pension payments

      15.   S.30.1 Added
Subsections apply notwithstanding


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

PUBLIC SERVICE PENSIONS ACT, 1991

SNL1991 c12
as amended

        1. Section 2 of the Public Service Pensions Act, 1991 is amended by adding immediately after paragraph (r) the following:

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

 

        2. Section 4 of the Act is amended by renumbering it as subsection 4(1) and by adding immediately after that subsection the following:

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

 

        3. Section 5 of the Act is amended by adding immediately after subsection (4) the following:

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

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

 

        4. (1) Subsection 6(1) of the Act is repealed.

             (2)  Paragraph 6(2)(a) of the Act is amended by striking out the comma immediately following the word "minister" and the words "less benefits payable under subsection 26(3)".

             (3)  Section 6 of the Act is amended by adding immediately after subsection (4) the following:

          (4.1)  Where the amount of government contributions under subsection (2) or employer contributions under subsection (3) exceeds the amount of the annual deductible contributions to a registered plan permitted under the Income Tax Act (Canada), the amount of the excess, as determined at the end of the calendar year in which the contributions are made, shall be paid from the pension fund to the supplementary account no later than the last day of February in the immediately following calendar year.

 

        5. Subsection 18(2) of the Act is repealed.

 

        6. Section 18.1 of the Act is repealed.

 

        7. Section 26 of the Act is repealed and the following substituted:

Pension payments

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

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

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

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

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

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

 

        8. The Act is amended by adding immediately after section 26 the following:

Subsections apply notwithstanding

   26.1 Subsections 5(6), 6(4.1) and 26(1) and (2) apply notwithstanding another provision of this Act or another Act.

TEACHERS' PENSIONS ACT

SNL1991 c17
as amended

        9. Subsection 2(1) of the Teachers' Pensions Act is amended by adding immediately after paragraph (m) the following:

         (m.1)  "supplementary account" means the Teachers' Supplementary Plan Account established under subsection 5(2);

 

      10. Section 5 of the Act is amended by renumbering it as subsection 5(1) and by adding immediately after that subsection the following:

             (2)  The Teachers' Supplementary Plan Account is established in the Consolidated Revenue Fund.

 

      11. Subsection 6(3) of the Act is repealed and the following substituted:

             (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.

 

      12. (1) Subsection 8(1) of the Act is amended by striking out the words and comma "Subject to the requirements of the Income Tax Act (Canada), the" and substituting the word "The".

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

          (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.

 

      13. Subsection 22(5) of the Act is repealed.

 

      14. Section 30 of the Act repealed and the following substituted:

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 (Canada) shall be paid from the supplementary account.

             (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.

 

      15. The Act is amended by adding immediately after section 30 the following:

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.