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Statutes of Newfoundland and Labrador 2018


CHAPTER T-4.01

AN ACT RESPECTING A PENSION PLAN FOR TEACHERS

(December 5, 2018)

Analysis


        1.   Short title

        2.   Definitions

        3.   Participation in pension plan

        4.   Pension plan

        5.   Fund continued

        6.   Deductions paid to fund

        7.   Government payments

        8.   Supplementary account and supplementary pension benefits

        9.   Transfer of commuted value

      10.   Attachment

      11.   Error or misrepresentation

      12.   Rectification

      13.   Marriage breakdown

      14.   Appeal

      15.   Corporation continued

      16.   Application of Acts to corporation

      17.   Objects of corporation

      18.   Board

      19.   Corporation and board bound

      20.   Funded status of plan

      21.   No liability

      22.   Indemnification

      23.   Binding effect

      24.   Conflict

      25.   Pension Benefits Act, 1997

      26.   Pension plan protected

      27.   RSNL1990 cF-8 Amdt.

      28.   SNL1996 cP-4.01 Amdt.

      29.   RSNL1990 cP-6 Amdt.

      30.   RSNL1990 cP-17
Amdt.

      31.   RSNL1990 cT-2
Amdt.                    

      32.   SNL1991 c17 Rep.

      33.   Commencement


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, 2018.

2018 cT-4.01 s1

Definitions

        2. In this Act

             (a)  "board" means the board of directors of the corporation;

             (b)  "commuted value" means, unless the context indicates otherwise, the present value of a pension benefit calculated in accordance with the pension plan;

             (c)  "corporation" means the Teachers' Pension Plan Corporation continued under section 15;

             (d)  "deferred life annuity" means a sum of money payable yearly or at another regular interval that

                      (i)  commences no earlier than the date the person would have been eligible to retire under the pension plan, and

                     (ii)  continues for the life of the person;

             (e)  "deferred pension" means a pension benefit the payment of which is deferred until the person entitled to the pension benefit is eligible to retire under the pension plan;

             (f)  "deferred pensioner" means a person who has elected or is considered to have elected to receive a deferred pension;

             (g)  "employer" means

                      (i)  the government,

                     (ii)  the Newfoundland and Labrador Teachers' Association,

                    (iii)  the Churchill Falls (Labrador) Corporation Limited, and

                    (iv)  any other entity admitted to the pension plan by the corporation in accordance with the joint sponsorship agreement;

             (h)  "former Act" means the Teachers' Pensions Act;

              (i)  "fund" means the Teachers' Pension Plan Fund continued under section 5;

              (j)  "funding policy" means the funding policy attached as Appendix A to the joint sponsorship agreement;

             (k)  "government" means the government of the province;

              (l)  "joint sponsorship agreement" means the agreement relating to the joint sponsorship of the pension plan between government on the one part and the Newfoundland and Labrador Teachers' Association on the other part, dated March 15, 2016 as amended from time to time and includes the appendices to the agreement;

           (m)  "life income fund" and "locked-in retirement income fund" means a registered retirement income fund

                      (i)  established in accordance with the Income Tax Act (Canada),

                     (ii)  included in the list established and maintained under section 18 of the Pension Benefits Act Regulations, and  

                    (iii)  under which payments commence no earlier than the date the person would have been eligible to retire under the pension plan;

             (n)  "locked-in retirement account" means a registered retirement savings plan

                      (i)  established in accordance with the Income Tax Act (Canada),

                     (ii)  included in the list established and maintained under section 18 of the Pension Benefits Act Regulations, and

                    (iii)  that requires the monies in the registered retirement savings plan to be transferred to a life income fund, locked-in retirement income fund or a deferred life annuity before payments may commence;

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

             (p)  "pension benefit" means an amount under the pension plan to which a teacher or other person is, or may, become entitled;

             (q)  "pension plan" means, unless the context indicates otherwise, the Teachers' Pension Plan referred to in section 4;

              (r)  "pensioner" means a person in receipt of a pension benefit;

             (s)  "registered" means registered under the Income Tax Act (Canada);

              (t)  "sponsor body" means the body appointed in accordance with the joint sponsorship agreement;

             (u)  "supplementary account" means the Teachers' Supplementary Account continued under section 8;

             (v)  "supplementary pension benefit" means the supplementary pension benefit referred to in subsection 8(3);

            (w)  "teacher" includes the following persons appointed or employed by an employer:

                      (i)  a person who holds a valid and subsisting certificate, grade or licence not lower than the emergency supply licence issued under the Teacher Training Act and who is, subject to the Schools Act, 1997, appointed or employed by an employer to give instruction or to administer or supervise instructional services in a college or a school,

                     (ii)  a director, an associate director or an assistant director, as defined in the Schools Act, 1997 except the assistant director of finance and administration appointed under section 79 of the Schools Act, 1997,

                    (iii)  an administrative officer of the Newfoundland and Labrador Teachers Association by virtue of the Teachers' Association Act, and who was before his or her appointment

                            (A)  a teacher to whom this Act or the former Act applied, or

                            (B)  a public servant to whom the Public Service Pensions Act, 1991 applied,

                    (iv)  a full time salaried president of the Newfoundland and Labrador Teachers’ Association or the Canadian Teachers’ Federation and who was before his or her appointment

                            (A)  a teacher to whom this Act or the former Act applied, or

                            (B)  a public servant to whom the Public Service Pensions Act, 1991 applied, or

                     (v)  a person who is considered a teacher under the pension plan; and            

             (x)  "year's maximum pensionable earnings" has the same meaning as in the Canada Pension Plan Act (Canada).

2018 cT-4.01 s2

Participation in pension plan

        3. (1) A teacher shall contribute to and participate in the pension plan.

             (2)  In addition to the contributions under subsection (1), a teacher whose pensionable earnings in a calendar year exceed the pensionable earnings that would require contributions up to the limit approved under the Income Tax Act (Canada) shall make contributions, at the contribution rate set out in the pension plan, in respect of the excess pensionable earnings.

             (3)  The contributions required under subsections (1) and (2) shall be deducted from the teacher's salary.

2018 cT-4.01 s3

Pension plan

        4. (1) The pension plan provided for, by and under the former Act is continued in accordance with this Act and the documentation prepared and maintained in accordance with the joint sponsorship agreement prescribing the terms applicable to the pension plan. 

             (2)  The supplementary pension benefit is not included in the pension plan.

2018 cT-4.01 s4

Fund continued

        5. (1) The Teachers' Pension Plan Fund established under the former Act is continued.

             (2)  The fund shall be held in trust by the corporation.

             (3)  There shall be deposited into the fund

             (a)  contributions made by teachers and employers under this Act;

             (b)  the income of the fund; and

             (c)  any other income arising from the operation of the pension plan.

             (4)  Where an employer does not make a contribution or deposit to the fund in the manner required by this Act, a penalty may be assessed and levied upon the amount of that contribution or deposit in a manner directed by the corporation.

             (5)  There shall be paid out of the fund

             (a)  pension benefits, refunds and payments under the pension plan;

             (b)  the operating costs of the fund; and

             (c)  other expenditures arising from the operation of the pension plan.

             (6)  The assets of the fund may be pooled with the assets of other pension plans, including government pension plans, for investment purposes as directed by the corporation.

2018 cT-4.01 s5

Deductions paid to fund

        6. (1) An employer shall pay into the fund all contributions required under the pension plan and the joint sponsorship agreement.

             (2)  In addition to the contributions under subsection (1), where a teacher's pensionable earnings in a calendar year exceeds the pensionable earnings that would require contributions up to the limit approved under the Income Tax Act (Canada), the employer shall pay into the fund contributions in respect of the teacher's excess pensionable earnings at the contribution rate set out in the pension plan.

             (3)  The government shall pay the contributions referred to in subsections (1) and (2) out of the Consolidated Revenue Fund.

2018 cT-4.01 s6

Government payments

        7. (1) The promissory note delivered by the government to the corporation under the former Act continues to be fully enforceable.

             (2)  The promissory note shall amortize $1,862,000,000, valued at September 1, 2015, over 30 years in equal annual payments of $135,272,273 beginning on August 31, 2016.

             (3)  Payments made under subsection (2) shall be made regardless of the funded status of the pension plan in the future.

             (4)  The present value of the residual payments described in subsection (2), discounted at 6%, shall be considered to be an asset of the pension plan.

             (5)  The asset referred to in subsection (4) is a non-investment asset which is non-marketable and non-transferrable except as otherwise provided in this Act and which shall be used solely for the purpose of determining the funded ratio of the pension plan.

2018 cT-4.01 s7

Supplementary account and supplementary pension benefits

        8. (1) The Teachers’ Supplementary Account established in the Consolidated Revenue Fund under the former Act is continued.

             (2)  The minister shall be responsible for the supplementary account and supplementary pension benefits.

             (3)  Where the calculation of a teacher's pension benefit without application of the limits under the Income Tax Act (Canada) results in an amount greater than the amount of the teacher's actual pension benefit, the teacher shall be entitled to a supplementary pension benefit equal to the difference between the 2 amounts and on the same terms and conditions applicable to the pension benefit.

             (4)  Notwithstanding subsection (3), a teacher employed by an entity referred to in subparagraph 2(g)(iv) shall not be entitled to a supplementary pension benefit without the approval of the minister.

             (5)  Where a person is eligible to transfer his or her commuted value under the pension plan, the person is eligible to receive payment of the commuted value of his or her supplementary pension benefit.

             (6)  A supplementary pension benefit shall be paid from the supplementary account.                

             (7)  The contributions made under subsections 3(2) and 6(2) shall be paid by the corporation to the supplementary account no later than the last day of February of the subsequent year.

             (8)  Where there is insufficient money in the supplementary account to pay supplementary pension benefits, money shall be paid from the Consolidated Revenue Fund to the supplementary account to make the payments.

2018 cT-4.01 s8

Transfer of commuted value

        9. (1) Where a person is eligible to transfer his or her commuted value under the pension plan and elects to transfer his or her commuted value, the commuted value shall be transferred to

             (a)  a registered pension plan provided the administrator of the pension plan agrees to accept the transfer;

             (b)  a life income fund, locked-in retirement income fund or locked-in retirement account; or

             (c)  a deferred life annuity purchased from an insurance company licensed to transact business in Canada.

             (2)  Subsection (1) does not apply where

             (a)  the person's annual pension benefit payable is less than 4% of the year's maximum pensionable earnings for the calendar year in which employment is terminated;

             (b)  the commuted value of a person's pension benefit is less than 10% of the year's maximum pensionable earnings for the calendar year in which employment is terminated; or

             (c)  the person provides documentation from a medical practitioner satisfactory to the corporation that he or she has a mental or physical disability that is likely to shorten considerably his or her life expectancy.

             (3)  For the purpose of a transfer under subsection (1), a contract to establish a life income fund, locked-in retirement income fund, locked-in retirement account or a deferred life annuity shall be in the form of a certified specimen contract filed under section 18 of the Pension Benefits Act Regulations.

             (4)  Where a person transfers or is paid his or her commuted value under this section, the corporation and the pension plan shall be fully discharged of all obligations to the teacher or deferred pensioner in respect of the period of pensionable service related to the transfer.

2018 cT-4.01 s9

Attachment

      10. Monies payable or awarded under the pension plan shall not be assigned, charged, attached, anticipated or given as security and is exempt from execution, seizure or attachment and a transaction purporting to assign, charge, attach, anticipate or give that pension benefit as security is void, except where

             (a)  this section is overridden by another Act; or

             (b)  the transaction is a division of a pension benefit or supplementary pension benefit in accordance with section 13.

2018 cT-4.01 s10

Error or misrepresentation

      11. The corporation may adjust or cancel a pension benefit which has been paid or awarded as a result of error or misrepresentation and where an overpayment of a pension benefit has been made the corporation may recover the overpayment.

2018 cT-4.01 s11

Rectification

      12. Where a pension benefit has been underpaid or unreasonable delays in payments have occurred, the corporation may make payments in rectification together with interest that may be determined by the corporation.

2018 cT-4.01 s12

Marriage breakdown

      13. (1) Where

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

             (b)  a teacher, deferred pensioner or pensioner has entered into a separation agreement within the meaning of the Family Law Act to divide matrimonial property,

a pension benefit or supplementary pension benefit shall be divided in accordance with the court order or separation agreement and the pension plan.

             (2)  Where the corporation applies to the court for direction under the marriage breakdown provisions of the pension plan, the court may make or vary an order for the division of matrimonial property as it considers appropriate in the circumstances and any order made against the corporation shall be paid from the fund.

2018 cT-4.01 s13

Appeal

      14. (1) A person may, in accordance with the pension plan, appeal a decision of the corporation in a matter related to, connected with or arising out of his or her entitlement to, or payment of, a pension benefit or other money under this Act.

             (2)  A person may apply for judicial review of a decision under subsection (1) within 60 days after receipt of the decision by filing an application with the Supreme Court.

2018 cT-4.01 s14

Corporation continued

      15. (1) The Teachers' Pension Plan Corporation established under the former Act is continued as a corporation without share capital.

             (2)  The head office of the corporation shall be at St. John's.

             (3)  The corporation is not an agent of the Crown.

             (4)  The provisions of this section and sections 16 to section 21 constitute the articles of the corporation.

             (5)  A director or a person employed by the corporation does not become an officer or employee of the Crown by reason of that office or employment only.

2018 cT-4.01 s15

Application of Acts to corporation

      16. (1) The Corporations Act , except section 27, paragraphs 31(a), (d) and (e), sections 32, 167, 172, 190, 191, 198, 199, 200, 201, 204, 277, 278, 378, and subsection 422(1), does not apply to the corporation.

             (2)  The Lieutenant-Governor in Council, on the recommendation of the sponsor body, may make regulations directing that additional provisions of the Corporations Act apply to the corporation, provided that those regulations do not conflict with this Act.

             (3)  Where there is a conflict between a provision referred to in subsection (1) and this Act, this Act prevails.

2018 cT-4.01 s16

Objects of corporation

      17. The objects of the corporation are

             (a)  to act as trustee of the fund;

             (b)  to act as administrator of the pension plan; and

             (c)  to exercise those other powers and perform those other duties as may be conferred upon the corporation under the joint sponsorship agreement.

2018 cT-4.01 s17

Board

      18. (1) The number of persons on the board shall be determined in accordance with the joint sponsorship agreement.

             (2)  A director of the corporation, in exercising his or her powers and discharging his or her duties, shall

             (a)  act honestly and in good faith with a view to the best interests of the pension plan and for the benefit of all teachers, pensioners and deferred pensioners; and

             (b)  exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

             (3)  The board, by resolution, may make, amend or repeal by-laws that regulate the business or affairs of the corporation.

             (4)  By-laws made by the board shall not conflict with the joint sponsorship agreement.

2018 cT-4.01 s18

Corporation and board bound

      19. The corporation and the board are bound by and shall act in accordance with the joint sponsorship agreement as provided for in that agreement.

2018 cT-4.01 s19

Funded status of plan

      20. Actuarial surpluses and deficits relating to the pension plan shall be shared in accordance with the funding policy.

2018 cT-4.01 s20

No liability

      21. The corporation is not liable for loss or damage suffered by another person because of anything done or omitted to be done under or in the exercise or supposed exercise of the powers conferred by this Act, where those powers have been exercised in accordance with subsection 18(2).

2018 cT-4.01 s21

Indemnification

      22. A director or officer or a former director or officer who acted in good faith in the execution of his or her duties and powers and his or her heirs, executors, administrators and other legal representatives shall be indemnified by the fund for all legal expenses and all other charges and expenses actually and reasonably incurred by that director, officer, former director or former officer, including an amount paid to settle an action or to satisfy a judgment in a civil, criminal or administrative action or proceeding to which the person is made a party because of being or having been a director or officer.

2018 cT-4.01 s22

Binding effect

      23. (1) The sponsor body's decisions, rules, policies and procedures made or established in accordance with the joint sponsorship agreement, the pension plan or the fund shall be binding on the corporation, employers, teachers, pensioners and deferred pensioners and their respective beneficiaries, dependents, estates, heirs, executors, administrators, successors and  assigns.

             (2)  The corporation's decisions, rules, policies and procedures shall be binding on the sponsor body, employers, teachers, pensioners and deferred pensioners and their respective beneficiaries, dependents, estates, heirs, executors, administrators, successors and assigns.

2018 cT-4.01 s23

Conflict

      24. Where this Act conflicts with another Act of the province, this Act shall prevail.

2018 cT-4.01 s24

Pension Benefits Act, 1997

      25. The Pension Benefits Act, 1997 does not apply to this Act or the pension plan.

2018 cT-4.01 s25

Pension plan protected

      26. This Act shall apply to all pension benefits and supplementary pension benefits accrued under the former Act.

2018 cT-4.01 s26

RSNL1990 cF-8 Amdt.

      27. Subparagraph 2(1)(k.1)(ii) of the Financial Administration Act is repealed and the following substituted:

             (ii)  the Teachers' Pension Plan Corporation continued under the Teachers' Pensions Act, 2018, and

2018 cT-4.01 s27

SNL1996 cP-4.01 Amdt.

      28. (1) Section 2 of the Pension Benefits Act, 1997 is amended by adding immediately after paragraph (ee) the following:

        (ee.1)  "Public Service Pension Plan" has the same meaning as the term "pension plan" in the Public Service Pensions Act, 1991;

             (2)  Section 2 of the Act is amended by deleting the word "and" at the end of paragraph (ii) and adding immediately after that paragraph the following:

          (ii.1)  "Teachers' Pension Plan" has the same meaning as the term "pension plan" in the Teachers' Pensions Act, 2018; and

             (3)  Section 25 of the Act is amended by adding immediately after subsection (5) the following:

         (5.1)  Where a member of a pension plan requests to transfer the commuted value of his or her pension benefit to the Public Service Pension Plan or the Teachers' Pension Plan, the administrator of the plan shall provide a written statement as required by the superintendent.

             (4)  Paragraph 40(1)(a) of the Act is amended by adding immediately after subparagraph (i) the following:

                   (i.1)  transfer the commuted value of the member's pension benefit to the Public Service Pension Plan or the Teachers' Pension Plan, if the Public Service Pension Plan or the Teachers' Pension Plan permits and the administrator of the Public Service Pension Plan or the Teachers' Pension Plan agrees to accept the payment,

             (5)  Paragraph 40(2)(a) of the Act is amended by adding immediately after subparagraph (i) the following:

                   (i.1)  transfer the commuted value of the member's pension benefit to the Public Service Pension Plan or the Teachers' Pension Plan, if the Public Service Pension Plan or the Teachers' Pension Plan permits and the administrator of the Public Service Pension Plan or the Teachers' Pension Plan agrees to accept the payment,

2018 cT-4.2 s28

RSNL1990 cP-6 Amdt.

      29. Subsection 9(3) of the Pensions Funding Act is repealed and the following substituted:

             (3)  Subsection (1) does not apply to the plan continued under the Teachers' Pensions Act, 2018.

2018 cT-4.01 s29

RSNL1990 cP-17
Amdt.

      30. The Schedule to the Portability of Pensions Act is amended by deleting the reference "The Teachers' Pensions Act".

2018 cT-4.01 s30

RSNL1990 cT-2
Amdt.

      31. Section 8 of the Teachers' Association Act is repealed and the following substituted:

Administrative officers

        8. A person who is an administrative officer of the association and who was before his or her appointment to the post a teacher to whom

             (a)  the Teachers' Pensions Act, 2018 applied; or

             (b)  the definition of "teacher" in the Schools Act, 1997 applies

shall during his or her term of office as an administrative officer be considered to be a teacher for all of the purposes of the Teachers' Pensions Act, 2018.

2018 cT-4.01 s31

SNL1991 c17 Rep.

      32. The Teachers’ Pensions Act is repealed.

2018 cT-4.01 s32

Commencement

      33. (1) This Act, or a section, subsection or paragraph of it, except subsections 28(1), (2), (4) and (5), comes into force on a day or days to be proclaimed by the Lieutenant-Governor in Council.

             (2)  Subsections 28(1), (2), (4) and (5) are considered to have come into force on December 16, 2014.

2018 cT-4.01 s33