Second Session, 45th General Assembly
54 Elizabeth II, 2005
AN ACT TO AMEND THE
Received and Read the First Time...................................................................................................
HONOURABLE JOAN BURKE
Minister of Education
Ordered to be printed by the Honourable House of Assembly
Clause 1 of the Bill would amend section 3 of the Memorial University Pensions Act to bring new categories of employees, including part-time employees, under the Act.
Clause 2 of the Bill would add a new paragraph 5(b.1) to the Act. This would add employees referred to in the amendment at clause 1 to the list of contributors to the Memorial University Pension Fund.
Clause 3 of the Bill would repeal and replace subsections 12(3) and (3.1) of the Act by removing a reference to the "board" in subsection (3) and by adding employees referred to in clause 1 to subsection (3.1) respecting contribution amounts.
Clause 4 of the Bill would repeal and replace paragraph 15(1)(b) of the Act respecting retirement due to disability in order to add a reference to employees referred to in clause 2. This clause would also repeal and replace subsection 15(8) to add to that subsection a reference to employees referred to in clause 2 which allows for an extension of employee periods of service.
Clause 5 of the Bill would repeal
subsection 18(4) of the Act to bring this subsection into agreement with
requirements of the Income Tax Act (
Clause 6 of the Bill would add the proposed paragraph 19(1)(a.1) to the Act to add persons referred to at clause 1 and permit the inclusion of persons employed on a part-time basis to the provision relating to periods of allowable pensionable service.
Clause 7 of the Bill would add persons referred to in clause 1 to subsection 25(3) of the Act respecting the employment of persons who have received a pension refund and returned to employment with the university.
Clause 8 of the Bill would repeal and replace section 29.1 of the Act to more clearly outline the policy directives that may, with the approval of the Minister of Finance, be made by the board of the university to implement the provisions of the Act.
Clause 9 of the Bill would amend subsection 29.2(1) of the Act to remove a reference to "the board" with respect to the implementation of Minister of Finance directives on the integration of the Act with the Canada Pension Plan.
Clause 10 of the Bill would repeal and replace section 34 of the Act respecting reciprocal agreements for pensions with other employers. The language would then mirror that contained in other provincial pension statutes such as the Public Service Pensions Act, 1991. This clause would also add a new section 34.1 respecting the transfer of pensions from plans other than plans of the government of the province. This latter amendment mirrors recent amendments to the Public Service Pensions Act, 1991, Teachers' Pensions Act and the Uniformed Services Pensions Act.
AN ACT TO AMEND THE
Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:
1. Subsection 3(1) of the Memorial University Pensions Act is repealed and the following substituted:
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;
(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) or (c), 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. (1) Section 5 of the Act is amended by adding immediately after paragraph (b) the following:
(b.1) contributions made by an employer referred to in paragraphs 3(1)(b) and (c) of this Act;
(2) Paragraph 5(d) of the Act is amended by adding immediately after the figures "(b)", a comma and the figures "(b.1)".
3. (1) Subsections 12(3) and (3.1) of the Act are repealed and the following substituted:
(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) and (c) 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.
(2) Subsection 12(5) of the Act is repealed.
4. (1) Paragraph 15(1)(b) of the Act is repealed and the following susbstituted:
(b) if he or she is not participating in the long term disability insurance plan of the university or a similar plan substituted for it and is unable to perform his or her duties effectively owing to a physical or mental incapacity medically certified to the satisfaction of the board or an employer referred to in paragraphs 3(1)(b) and (c) and approved by the board as likely to be permanent.
(2) Subsection 15(8) of the Act is repealed and the following substituted:
(8) Notwithstanding subsection (7), the board or an employer referred to in paragraphs 3(1)(b) and (c), with the approval of the board, may extend the period of service of an employee for not more than 3 years beyond normal retirement age and those additional years of service are years of pensionable service.
5. Subsection 18(4) of the Act is repealed.
6. Paragraph 19(1)(a) of the Act is repealed and the following substituted:
(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;
7. Subsection 25(3) of the Act is repealed and the following substituted:
(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.
8. Section 29.1 of the Act is repealed and the following substituted:
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, 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) and (c) 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) or (c) may be counted as pensionable service under this Act and may provide for matters relating to the prior service.
9. Subsection 29.2(1) of the Act is amended by deleting the words "the board may deduct from the employees" and substituting the words "there shall be deducted from the employees".
10. Section 34 of the Act is repealed and the following substituted:
34. (1) The board may, with the approval of the minister, enter into a reciprocal agreement with
(a) the province;
(b) the Government of
(c) the government of another
(d) an agency of the province, the Government of
Canada or the government of another
(f) a company, corporation, institution or a legal
entity authorized to carry on business in
(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.
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.
ŠEarl G. Tucker, Queen's Printer