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SNL2019 CHAPTER P-44.01 PUBLIC SERVICE PENSIONS ACT, 2019 Amended: CHAPTER P-44.01 AN ACT RESPECTING A PENSION PLAN FOR EMPLOYEES OF THE GOVERNMENT OF THE PROVINCE AND OTHERS (Assented to April 2, 2019)
Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This Act may be cited as the Public Service Pensions Act, 2019 . 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) "contractual employee" means a person employed on a full-time basis with the government or an employer included in the pension plan whose terms and conditions of employment are specifically stated in a written contract; (d) "corporation" means the Public Service Pension Plan Corporation continued under section 16; (e) "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; (f) "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; (g) "deferred pensioner" means a person who has elected or is considered to have elected to receive a deferred pension; (h) "employed on a full-time basis" means employed for the number of hours required for full-time employment as determined by the employer; (i) "employee" means a person who is employed on a full-time basis (i) by the government of the province and paid a salary out of public funds voted by the Legislature, (ii) who is included in the pension plan by the corporation in accordance with the joint sponsorship agreement, (iii) who is included in the pension plan under an Act of the province, or (iv) who is included in the pension plan as of January 1, 2015, but does not include (v) a contractual employee unless the contractual employee's contract states that he or she is a member of the pension plan, (vi) a temporary employee, or (vii) a person specifically excluded from participation in the pension plan by the corporation; (j) "employer" means an employer of an employee included in the pension plan ; (k) "former Act" means the Public Service Pensions Act, 1991 ; (l) "fund" means the Public Service Pension Plan Fund continued under section 5; (m) "funding policy" means the funding policy attached as Appendix A to the joint sponsorship agreement; (n) "government" means the government of the province;
(o)
"joint sponsorship agreement" means the agreement relating to the joint sponsorship of the pension plan between government, on the one part, and the Association of Allied Health Professionals, the Canadian Union of Public Employees, the International Brotherhood of Electrical Workers, the Newfoundland and Labrador Association of Public and Private Employees and the Registered Nurses' Union of Newfoundland and Labrador, on the other part, dated December 10, 2014 as amended from time to time and includes the appendices to the agreement; (p) "life income fund" and "locked-in retirement income fund" means a registered retirement income fund
(i)
established in accordance with the Income Tax Act
(
(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; (q) "locked-in retirement account" means a registered retirement savings plan
(i)
established in accordance with the Income Tax Act
( (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; (r) "minister" means the minister appointed under the Executive Council Act to administer this Act; (s) "pension benefit" means an amount under the pension plan to which an employee or other person is, or may, become entitled; (t) "pension plan" means, unless the context indicates otherwise, the Public Service Pension Plan continued under section 4 of this Act; (u) "pensioner" means a person in receipt of a pension benefit;
(v)
"registered" means registered under the Income Tax Act
( (w) "sponsor body" means the body appointed in accordance with section 4 of the joint sponsorship agreement; (x) "supplementary account" means the Public Service Supplementary Plan Account continued under section 8;
(y)
"supplementary pension benefit" means the supplementary pension benefit referred to in subsection 8(3);
(z) "temporary employee" means a person employed on a full-time basis by an employer for a period not exceeding 3 months; and
(aa)
"year's maximum pensionable earnings" has the same meaning as in the Canada Pension Plan Act
( Participation in pension plan 3. (1) An employee shall contribute to and participate in the pension plan.
(2)
In addition to the contributions under subsection (1), an employee 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
( (3) The contributions required under subsections (1) and (2) shall be deducted from the employee's salary. Pension plan 4. (1) The Public Service 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. Fund continued 5. (1) The Public Service 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 employees and employers under the pension plan; (b) the income of the fund; (c) payments made in accordance with section 7; and (d) 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 other government pension plans, for investment purposes as directed by the corporation. 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 an employee'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 employee'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. Government payments 7. (1) The promissory note delivered to the corporation under the former Act continues to be fully enforceable. (2) The promissory note shall amortize $2,685,000,000 over 30 years payable in quarterly instalments of $47,000,000 beginning on March 31, 2015. (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 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. Supplementary account 8. (1) The Public Service Pension Plan 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 the supplementary pension benefits. (3) Where the calculation of an employee's pension benefit without application of the limits under the Income Tax Act (Canada) results in an amount greater than the amount of the employee's actual pension benefit, the employee 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), an employee referred to in subparagraph 2(i)(ii) 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 calendar 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. 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 (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 . Discharge of obligations 10. Where a person (a) transfers or is paid his or her commuted value under section 9; (b) receives a refund of all of his or her contributions to the fund; or (c) receives a payout of his or her entitlement under the pension plan, the corporation and the pension plan shall be fully discharged of all obligations to the person in respect of the period of pensionable service related to the transfer, refund or payout. Attachment 11. Monies payable or awarded under the pension plan shall not be assigned, charged, attached, anticipated or given as security and are 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 14. Error or misrepresentation 12. 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. Rectification 13. 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. Marriage breakdown 14. (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) an employee, 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. Appeal 15. (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. Corporation continued 16. (1) The Public Service 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 (3) The corporation is not an agent of the Crown. (4) The provisions of this section and sections 17 to 22 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. (6) The name of the corporation may be changed at any time by a resolution of the board made by the affirmative vote of all the directors and notice of the change of name shall be published in the Gazette and is considered to have effect on the thirtieth day following the date of publication.
(7)
A change in the name of the corporation
shall not affect any rights or obligations of the corporation or render defective any legal proceedings instituted by or against the corporation and any legal proceedings that may have been continued or commenced against the corporation under its former name may be continued or commenced against the
corporation under its new name. Application of acts to corporation 17. (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. Objects of corporation 18. The objects of the corporation are (a) to act as trustee of the fund; (b) to act as administrator of the pension plan; (c) to exercise those other powers and perform those other duties as may be expressly conferred upon the corporation under the joint sponsorship agreement; (d) to provide pension administration and pension investment services for any other pension plan that retains the services of the corporation and is approved by the board; and (e) to carry out other activities or duties as may be authorized by the board. Board 19. (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 employees, 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. Corporation and board bound 20. The corporation and the board are bound by and shall act in accordance with the joint sponsorship agreement as provided for in that agreement. Funded status of plan 21. Actuarial surpluses and deficits relating to the pension plan shall be shared in accordance with the funding policy. No liability 22. The corporation or a person authorized to act under the joint sponsorship agreement 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 19(2). Indemnification 23. 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 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. Binding effect 24. (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, employees, 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 made or established in accordance with the joint sponsorship agreement, the pension plan or the fund shall be binding on the sponsor body, employers, employees, pensioners and deferred pensioners and their respective beneficiaries, dependents, estates, heirs, executors, administrators, successors and assigns.
(3)
Notwithstanding subsection (1) or (2), nothing referred to in those subsections binds or in any way affects a Provincial Court judges
(2)
Any pension benefit related to a Pension plan protected 26. This Act shall apply to all pension benefits and supplementary pension benefits accrued under the former Act. Conflict 27. Where this Act conflicts with another Act of the province, this Act shall prevail. Regulations 28. The Lieutenant-Governor in Council, on the recommendation of the sponsor body, may make regulations in accordance with subsection 17(2). Pension Benefits Act, 1997 29. The Pension Benefits Act, 1997 does not apply to this Act or the pension plan. SNL2015 cA-1.2 Amdt. 30. Subsections 90(3) and (4) of the Access to Information and Protection of Privacy Act, 2015 are amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL1991 c22 Amdt. 31. (1) Subsections 8(3) and (4) of the Auditor General Act are amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". (2) Subsection 25(1) of the Act is repealed and the following substituted: Pension plan 25. (1) All persons employed in the office are employees for the purposes of the Public Service Pensions Act, 2019 and are entitled to all the benefits under the public service pension plan. (3) Subsection 25(2) of the Act is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL2001 cC-12.01 Amdt. 32. Subsections 9(3) and (4) of the Child and Youth Advocate Act are amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL2001 cC-14.1 Amdt. 33. Subsections 8(3) and (4) of the Citizens' Representative Act are amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL1996 cC-22.1 Amdt. 34. Section 26 of the College Act, 1996 is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL1992 cE-3.1 Amdt. 35. (1) Subsections 6(3) and (4) of the Elections Act, 1991 are amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". (2) Subsections 7(3) of the Act is amended by deleting the reference "Public Services Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". RSNL1990 cF-8 Amdt. 36. (1) Subparagraph 2(1)(k.1)(i) of the Financial Administration Act is repealed and the following substituted: (i) the Public Service Pension Plan Corporation continued under the Public Service Pensions Act, 2019 ,
(2)
Subsection 20(6) of the Act is amended by deleting the reference "Public Service Pensions Act
" and substituting the reference "Public Service Pensions Act, 2019
". (3) Subsection 32(2) of the Act is amended by deleting the reference "Public Service Pensions Act " and substituting the reference "Public Service Pensions Act, 2019 ". RSNL1990 cG-6 Amdt. 37. (1) Subparagraph 2(f)(iii) of the Government Money Purchase Pension Plan Act is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". (2) Paragraph 9(c) of Article I of Schedule A of the Act is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". RSNL1990 cH-10 Amdt. 38. Subsections 34(13) and (14) of the House of Assembly Act are amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL2007 cH-17 Amdt. 39. Paragraph 16(1)(d) of the Hydro Corporation Act, 2007 is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". RSNL1990 cL-19 Amdt. 40. Subsection 5(8) of the Liquor Corporation Act is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". RSNL1990 cM-8 Amdt. 41. Paragraphs 19(1)(e) and (f) of the Memorial University Pensions Act are amended by deleting the reference "Public Service Pensions Act " and substituting the reference "Public Service Pensions Act, 2019 ". SNL2014 cO-9 Amdt. 42. Subsection 2(2) of the Other Post-Employment Benefits Eligibility Modification Act is repealed and the following substituted: (2) This Act shall be read as one with the Public Service Pensions Act, 2019 and the pension plan, and words defined in that Act and the pension plan have the same meaning in this Act. RSNL1990 cP-6 Amdt. 43. Subsection 9(2) of the Pensions Funding Act is repealed and the following substituted:
(2)
Subsection (1) does not apply to the plan continued under the Public Service Pensions Act, 2019. RSNL1990 cP-17 Amdt.
44.
The Schedule to the Portability of Pensions Act
is amended by deleting the reference "The Public Service Pensions Act, 1991
". SNL1991 c15 Amdt. 45. (1) Subsections 5.2(6) and (9) of the Provincial Court Act, 1991 are amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". (2) Subsection 12(2) of the Act is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL2004 cP-29.1 Amdt. 46. Subsection 4(1) of the Provincial Court Judges' Pension Plan Act is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". RSNL1990 cP-43 Amdt. 47. Section 8 of the Public Service Commission Act is repealed and the following substituted: Pension and leave rights 8. A (a) commissioner; and (b) clerk, officer or employee with the commission who would, if employed by a department of the government of the province, be an employee for the purposes of the Public Service Pensions Act , 2019 is considered to be an employee for the purposes of the Public Service Pensions Act, 2019
,
including the purposes of the retirement age and the advanced or deferred pension privileges of an employee, and shall be subject to the same provisions respecting leave as a full-time employee of a department of the government of the province, however, the Lieutenant-Governor in Council may extend the service of a commissioner beyond normal retirement age and that extension shall be treated as re-employment after retirement age for the purposes of the public service pension plan. SNL2009 cP-46.1 Amdt. 48. Subsection 3(9) of the Public Trustee Act, 2009 is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". RSNL1990 cP-47 Amdt. 49. (1) Subsection 115(1) of the Public Utilities Act is amended by deleting the reference "Public Service Pensions Act " and substituting the reference "Public Service Pensions Act, 2019 ". (2) Subsection 115(5) of the Act is amended by deleting the reference "Public Services Pensions Act " and substituting the reference "Public Service Pensions Act, 2019 ". SNL2005 cR-15.1 Amdt. 50. Section 17 of the Rooms Act is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL2016 cR-15.2 Amdt. 51. Section 22 of the Rooms Act, 2016 is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". RSNL1990 cS-25 Amdt. 52. Section 13.1 of the Status of Women Advisory Council Act is amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL2018 cT-4.01 Amdt. 53. Clauses 2(w)(iii)(B) and (2)(w)(iv)(B) of the Teachers' Pensions Act, 2018 are amended by deleting the reference "Public Service Pensions Act, 1991 " and substituting the reference "Public Service Pensions Act, 2019 ". SNL1991 c12 Rep.
54.
The Public Service Pensions Act, 1991
is repealed. Commencement 55. This Act, or a section, subsection or paragraph of it, comes into force on a day or days to be proclaimed by the Lieutenant-Governor in Council. (In force on Feb. 14/20) ©Queen's Printer |