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Fourth
Session, 45th General Assembly 56
Elizabeth II, 2007 |
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AN ACT TO AMEND THE
PENSION BENEFITS ACT, 1997 |
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Received and Read the First Time................................................................................................... |
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Second |
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Committee............................................................................................................................................ |
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Third |
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Royal Assent...................................................................................................................................... |
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HONOURABLE
DIANNE WHALEN Minister
of Government Services |
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Ordered
to be printed by the Honourable House of Assembly |
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EXPLANATORY NOTES This Bill would repeal and replace
section 28 of the Pension Benefits Act,
1997 to permit members who work beyond age 65 to continue membership in a
pension plan and to continue to make contributions and accrue benefits. The proposed new section would also allow pension
plans to provide various options to members working beyond age 65, including
the option to cease contributing to the plan at age 65 and to receive an
increased pension on retirement or to commence receiving a pension at age 65
while continuing to work. |
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A BILL AN ACT TO AMEND THE PENSION Analysis 1.
S.28 R&S 2. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: SNL1996 cP-4.01 as amended 1. Section 28 of the Pension Benefits Act, 1997 is repealed and the following substituted: Retirement date 28. (1) A pension plan shall provide for normal retirement calculated with reference to the age when a member is normally eligible to start receiving a pension in accordance with the plan without reduction or increase and normal retirement age shall be not later than the date the member or former member attains age 65. (2) A pension plan shall provide that a member who continues in employment after reaching normal retirement age and who is not receiving a pension under the plan shall be entitled to continue to participate in the plan on the same basis that applied before the member reached normal retirement age. (3) A pension plan may provide that where a member continues in employment after reaching normal retirement age, one or more of the following options may be available to the member: (a) the member may cease to contribute to the plan
and no additional benefits shall be accrued but on the member's pension
commencing, the pension shall be increased, taking into account the period of
time during which the pension was not paid, to at least the actuarial
equivalent of the pension accrued at normal retirement age; (b) the member may commence receipt of a pension while continuing in employment and no further contributions to the plan are payable and no additional benefits may be accrued; or (c) another arrangement, with the approval of the superintendent. (4) Notwithstanding subsection (2), a member or
former member's pension benefit shall commence before the end of the calendar
year in which the member or former member attains the age at which a pension
benefit is required to begin under the Income
Tax Act ( Commencement 2. This Act shall come into force on ŠEarl G. Tucker, Queen's Printer |