16

 

 

Fourth Session, 45th General Assembly

56 Elizabeth II, 2007

BILL 16

AN ACT TO AMEND THE PUBLIC SERVICE PENSIONS ACT, 1991, THE TEACHERS' PENSIONS ACT AND THE UNIFORMED SERVICES PENSIONS ACT, 1991

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 Public Service Pensions Act, 1991, the Teachers' Pensions Act and the Uniformed Services Pensions Act, 1991 to eliminate references to mandatory retirement and to permit employees under each Act who work beyond normal retirement age to continue to participate in the pension plan until the earlier of the date of termination of employment and the date that payment of a pension benefit is required to begin under the Income Tax Act (Canada).

The Bill would additionally provide that current employees who reached normal retirement age before May 26, 2007 but who have continued in employment would be permitted to receive pensionable credit for service after normal retirement age, subject to the terms and conditions of a ministerial directive.

Finally, the Bill would remove the 37.5 year limitation on pensionable service and the 75% of pensionable earnings limitation contained in the Uniformed Services Pension Act, 1991.

A BILL

AN ACT TO AMEND THE PUBLIC SERVICE PENSIONS ACT, 1991, THE TEACHERS' PENSIONS ACT AND THE UNIFORMED SERVICES PENSIONS ACT, 1991

Analysis


              PUBLIC SERVICE PENSIONS ACT, 1991

        1.   S.8 Amdt.
Purchase of prior service

        2.   S.16 Amdt.
Retirement

        3.   S.18 Amdt.
Calculation of pension

        4.   S.21 Amdt.
Offer of re-employment

        5.   S.22 Rep.
Re-employment after 65 years

              TEACHERS' PENSIONS ACT

        6.   S.10 Amdt.
Purchase of prior teaching service

        7.   S.18 R&S
Retirement

        8.   S.24 Amdt.
Re-employment

        9.   S.25 Rep.
Re-employment after normal retirement age

              UNIFORMED SERVICES PENSIONS ACT, 1991

      10.   S.6 Amdt.
Contributions by employees

      11.   S.10 Amdt.
Purchase of prior service

      12.   S.15 R&S
Retirement

      13.   S.19 Amdt.
Calculation of pension

      14.   S.20 Amdt.
CPP reduction factor

      15.   S.23 Amdt.
Re-employment

      16.   Commencement


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

PUBLIC SERVICE PENSIONS ACT, 1991

SNL1991 c12
as amended

        1. Section 8 of the Public Service Pensions Act, 1991 is amended by adding immediately after subsection (3) the following:

          (3.1)  Where an employee

             (a)  continued in employment after reaching normal retirement age before May 26, 2007;

             (b)  continues to be an employee on and after May 26, 2007; and

             (c)  did not receive a pension upon reaching normal retirement age,

he or she may be credited with the pensionable service in respect of the period of service beyond normal retirement age that he or she may elect to purchase in accordance with prescribed terms and conditions.

 

        2. Subsection 16(1) of the Act is repealed and the following substituted:

Retirement

      16. (1) An employee shall be retired under the pension plan

             (a)  where he or she makes an election under section 19 or terminates employment upon reaching normal retirement age, or, where he or she continues working past normal retirement age, at the earlier of termination of employment or reaching the age at which a pension benefit is required to begin under the Income Tax Act (Canada); or

             (b)  where, after the employee has used up all sick leave entitlement, he or she is unable to perform efficiently the duties of his or her position or the duties of an alternative position owing to incapacity that is medically certified to the satisfaction of the minister as likely to be permanent from a date to be determined by the minister.

 

        3. Subsection 18(5) of the Act is repealed and the following substituted:

             (5)  The reduction under subsection (3) shall occur on the first of the month following the month in which the employee reaches the age of 65 years or, when the employee commences receipt of a pension under the pension plan, whichever is the later.

 

        4. Subsections 21(1) and (2) of the Act are repealed and the following substituted:

Offer of re-employment

      21. (1) A pensioner who has retired under the pension plan upon termination of employment but has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada) may be re-employed in a pensionable position.

             (2)  A pensioner who has retired under the pension plan under paragraph 16(1)(b) but has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada) may, upon proof of good health and with the consent of the minister, be re-employed in a pensionable position.

 

        5. Section 22 of the Act is repealed.

TEACHERS' PENSIONS ACT

SNL1991 c17
as amended

        6. Section 10 of the Teachers' Pensions Act is amended by adding immediately after subsection (2) the following:

             (3)  Where a teacher

             (a)  continued in employment after reaching normal retirement age before May 26, 2007;

             (b)  continues to be employed as a teacher on and after May 26, 2007; and

             (c)  did not receive a pension upon reaching normal retirement age,

he or she may be credited with the pensionable service in respect of the period of service beyond normal retirement age that he or she may elect to purchase in accordance with prescribed terms and conditions.

 

        7. Section 18 of the Act is repealed and the following substituted:

Retirement

      18. A teacher shall be retired under the pension plan

             (a)  when he or she makes an election under section 20 or terminates employment upon reaching normal retirement age; or

             (b)  where he or she continues in employment after reaching normal retirement age, when he or she terminates employment or reaches the age at which a pension benefit is required to begin under the Income Tax Act (Canada), whichever is the earlier.

 

        8. (1) Subsections 24(1) and (2) of the Act are repealed and the following substituted:

Re-employment

      24. (1) A pensioner who has retired under the pension plan upon termination of employment but has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada) may be re-employed in a pensionable position as a teacher.

             (2)  A pensioner who has been retired under the pension plan under subsection 19(1) but has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada) may, upon proof of good health and with the consent of the minister, be re-employed in a pensionable position as a teacher.

             (2)  Subsection 24(4) of the Act is amended by striking out the word "teacher" where it first occurs and substituting the word "pensioner".

 

        9. Section 25 of the Act is repealed.

UNIFORMED SERVICES PENSIONS ACT, 1991

SNL1991 c19
as amended

      10. (1) Subsection 6(6) of the Uniformed Services Pensions Act, 1991 is repealed.

             (2)  Subsection 6(7) of the Act is repealed and the following substituted:

             (7)  Where contributions have been deducted from the salary of an employee in excess of those set out in subsection (2), (3), (4) or (5), those excess contributions shall be returned to the employee together with interest at the prescribed rate.

 

      11. Section 10 of the Act is amended by adding immediately after subsection (2) the following:

             (3)  Where an employee

             (a)  continued in employment after reaching normal retirement age before May 26, 2007;

             (b)  continues to be an employee on and after May 26, 2007; and

             (c)  did not receive a pension upon reaching normal retirement age,

he or she may be credited with the pensionable service in respect of the period of service beyond normal retirement age that he or she may elect to purchase in accordance with prescribed terms and conditions.

 

      12. Section 15 of the Act is repealed and the following substituted:

Retirement

      15. An employee, excluding an RCA employee who is not an RCA commissioned officer, who has accrued at least 5 years of pensionable service shall be retired under the pension plan

             (a)  when he or makes an election under section 17 or terminates employment upon reaching normal retirement age; or

             (b)  where he or she continues in employment after reaching normal retirement age, when he or she terminates employment or reaches the age at which a pension benefit is required to begin under the Income Tax Act (Canada), whichever is the earlier.

 

      13. Subsection 19(2) of the Act is repealed.

 

      14. Subsection 20(4) of the Act is repealed and the following substituted:

             (4)  The reduction under subsection (1) shall occur on the first of the month following the month in which the employee reaches the age of 65 years or commences receipt of a pension, whichever is the later.

 

      15. Subsection 23(1) of the Act is repealed and the following substituted:

Re-employment

      23. (1) A pensioner who has retired under the pension plan upon termination of employment but has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada) may be re-employed in a pensionable position.

          (1.1)  A pensioner who has retired under the pension plan under section 18 but who has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada) may, upon proof of good health and with the consent of the minister, be re-employed in a pensionable position.

Commencement

      16. This Act shall come into force on May 26, 2007.