2009 BILL 53

	53


Second Session, 46th General Assembly 58 Elizabeth II, 2009
BILL 53
AN ACT TO AMEND THE MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT
Received and Read the First Time...................................................................................................
Second Reading.................................................................................................................................
Committee............................................................................................................................................
Third Reading.....................................................................................................................................
Royal Assent......................................................................................................................................
HONOURABLE THOMAS W. MARSHALL, Q.C. Minister of Finance and President of Treasury Board
Ordered to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Members of the House of Assembly Retiring Allowances Act further to recommendations of the Members' Compensation Review Committee.

New eligibility criteria for the MHA pension plan would be introduced for a member who is first elected to the House of Assembly after December 31, 2009. A new member would have to reach 55 years of age before being eligible for an unreduced pension. A new member between the ages of 50 and 54 would be eligible for a pension reduced by 6% for each year that the member is under the age of 55.

Secondly, the rate at which a new member accrues pension would be varied. The new accrual rate would be 3.5% of the member's salary per year, to a maximum of 20 years of service.

A BILL

AN ACT TO AMEND THE MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING
ALLOWANCES ACT

Analysis

1. S.2 Amdt.
Interpretation

2. S.19 Amdt.
Entitlement

3. S.20 Amdt.
Calculation of supplementary allowance

4. Commencement

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

SNL2005 cM-6.1
as amended

1. Paragraph 2(1)(g) of the Members of the House of Assembly Retiring Allowances Act is repealed and the following substituted:

(g) "MHA salary" means

(i) for members elected for the first time before January 1, 2010

(A) the salary authorized by the Legislature to be paid to an MHA up to June 30, 2007,

(B) with respect to time served as a member after June 30, 2007, 81.2% of the salary to be paid to an MHA under subsection 11(1) of the House of Assembly Accountability, Integrity and Administration Act as may be varied by that Act, and

(ii) for members elected for the first time after December 31, 2009

(A) the salary authorized to be paid to an MHA under subsection 11(1) of the House of Assembly Accountability, Integrity and Administration Act as may be varied by that Act, and

(B) an amount that the Minister of Finance may prescribe in a directive under this Act;

2. Section 19 of the Act is amended by adding immediately after subsection (2) the following:

(2.1) Notwithstanding subsections (1) and (2), a vested member elected after December 31, 2009 who is no longer an MHA or a minister may, on application, receive a supplementary allowance if

(a) the member has paid the contributions for service required under this Act; and

(b) the member has reached the age of 55 years.

(2.2) Notwithstanding subsection (2.1), a vested member elected after December 31, 2009 who is no longer an MHA or a minister may, on application, receive a reduced supplementary allowance calculated in accordance with subsection 20(2.2) if

(a) the member has paid the contributions for service required under the Act; and

(b) the member has reached the age of 50 years.

3. Section 20 of the Act is amended by adding immediately after subsection (2) the following:

(2.1) Notwithstanding subsection (2), the annual amount of the supplementary allowance paid to a member who first served as an MHA or minister after December 31, 2009 shall be calculated by adding the following amounts:

(a) for each year of MHA service, 3.5% of his or her base MHA salary;

(b) for each year of minister's service, 3.5% of his or her base minister's salary; and

(2.2) For the purpose of subsection 19(2.2), the retiring allowance awarded under subsection (2.1) shall be reduced by 6% for each year that the member's age is less than the age of 55 years.

Commencement

4. Section 1 of this Act is considered to have come into force on July 1, 2007.