Second

Session, 46th General Assembly

Elizabeth II, 2009

BILL 56

AN ACT TO AMEND THE

GOVERNMENT MONEY PURCHASE PENSION PLAN 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 Government Money Purchase Pension Plan Act

to ensure consistency with both the Pension

Benefits Act, 1997 and the Income Tax

Act ( Canada ).

The Bill would:

provide that an employer under

the provisions of the Public Service

Pensions Act, 1991 may be an employer for the purpose of this Act;

provide that employees

participating in the plan be permitted to elect to contribute to the plan with

respect to authorized leave without pay, with the employer being required to

set by the minister; and

provide for the establishment of a committee to oversee the administration

of the government money purchase pension plan.

A BILL

AN ACT TO AMEND THE GOVERNMENT MONEY

PURCHASE PENSION PLAN ACT

Analysis

S.2 R&S

Definitions

S.4 R&S

Deduction amounts

S.4.1 Added

Leave without pay

S.5 R& S

Pre retirement benefits

S.7 R&S

Vesting and locking-in

S.8 R&S

Retirement benefits

S.9 Rep .

Dates of pension payable

S.10 Amdt.

Plan is portable

S.11.1 Amdt.

Ministerial directive

S.12.1 Added

Committee

Sch . A R&S

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RSNL1990 cG-6

as amended

Section 2 of the Government Money Purchase Pension Plan Act is

repealed and the following substituted:

Definitions

2. In this Act

(a) " cohabiting

partner"

(

i) in relation to a member who has a spouse,

means a person who is not the spouse of the member who has cohabited

continuously with the member in a conjugal relationship for not less than 3

years, or

(ii) in relation to a

member who does not have a spouse, means a person who has cohabited

continuously with the member in a conjugal relationship for not less than one

year

and is cohabiting or has cohabited with the member in the preceding

year;

(b) " custodian "

means the trustee or insurer that the minister may appoint to administer the

fund;

(c) " earnings "

means the amount of gross normal remuneration received by the employee but

excludes overtime and other remuneration which is not part of the basic remuneration

unless those amounts are specifically included as part of a collective

agreement;

(d) " effective

date" means April 1, 1989 or a later date

designated by the minister in relation to an employer from which the employer

is considered to have joined the plan;

(e) "employee" means an employee of an

employer who is not eligible to participate in another government sponsored pension

plan of that employer, but does not include students or casual relief workers;

(f) " employer "

means the government of the province or

(

i) a crown corporation,

agency or board of the province,

(ii) a non-profit public organization which has

close affiliations with the province whose primary function is to provide

public services which would normally be provided by the province if the

organization were not to exist, or

(iii) an organization that

is a participating employer under the

Public Service Pensions Act, 1991

where the entity referred to in subparagraph (i), (ii) or (iii) has

applied to have the plan extended to its designated employees and that

application has been approved by the minister;

(g) " fund "

means the investment fund referred to in

section 12;

(h) " inactive

member" means a person who has ceased to be an employee but has not

withdrawn his or her contributions from the plan;

(i) " member "

means an employee or an inactive member;

(j) " minister "

means the minister appointed under the Executive

Council Act to administer this Act who shall act as trustee for the plan;

(k) " plan "

means the pension plan for employees as set out in this Act, which shall be

named the "Government Money Purchase Pension Plan";

(l) " principal

beneficiary" means the spouse of a member, or where a member has a

cohabiting partner, the member's cohabiting partner;

(m) "service" means service with an

employer including those periods when the employee is on lay-off or other inactive

status but has a right of recall or call back by agreement with the employer;

and

(n) " spouse "

means a person who

(

i) is married to the member,

(ii) is married to the member

by a marriage that is voidable and has not been voided by a judgment of

nullity, or

(iii) has gone through a

form of marriage with the member, in good faith, that is void and is cohabiting

or has cohabited with the member within the preceding year.

Section 4 of the Act is repealed and the

following substituted:

Deduction amounts

(1) Each employee who participates in the plan shall contribute

to it an amount equal to 5% of the employee's earnings or a greater amount that

may be established by a directive of the minister.

(2) An employer shall contribute to the fund an

amount equal to the contributions of each employee under this Act.

(3) All contributions made under this

section

shall be paid to the custodian before the end of the calendar month immediately

following the month during which the contributions were made.

(4) The government of the province may reduce its

contribution under subsection (2), either for all its employees or for a group

of its employees, by an amount that the Lieutenant-Governor in Council prescribes,

but the amount of the reduction shall not exceed 4.5% of the earnings of the

government's employees to whom the reduction applies.

(5) An employer that is not the government of the

province shall, where directed to do so by order of the Lieutenant-Governor in

Council, reduce its contribution under subsection (2), either for all its

employees or for a group of its employees, by an amount that the Lieutenant-Governor

in Council prescribes, but the amount of the reduction shall not exceed 4.5% of

the earnings of the employees to whom the reduction applies.

3. The Act is amended by adding immediately after

section 4 the following:

Leave without pay

4.1

(1) An employee who is on authorized leave without pay may make

contributions in respect of that period of leave.

(2) Notwithstanding subsection (1), the types of

authorized leave without pay for which contributions may be made and the terms

and conditions for determining the amount of contributions shall be established

by a directive of the minister.

(3) The employer who authorized the period of

leave without pay shall pay an amount equal to the employee's contribution

under subsection (1).

(4) The crediting of periods of leave without

pay shall be subject to the limitations of the Income Tax Act ( Canada ).

Section 5 of the Act is repealed and the

following substituted:

Pre retirement

benefits

(1) An employee who stops being an employee and who has

completed less than 2 years of service or another period

specified for vesting and locking in under the Pension Benefits Act, 1997 may elect to receive a refund of his or her contributions plus the

accumulated earnings on those contributions.

(2) An employee who stops being an employee and

who has completed more than 2 years of service or another period specified for

vesting and locking in under the Pension

Benefits Act, 1997 may elect to transfer the value of the funds that have

accumulated to his or her credit in the fund to a locked in retirement account,

another registered pension plan, or another retirement savings arrangement

approved by the Superintendent of Pensions appointed under the Pensions Benefits Act, 1997 .

(3) Upon the death of a member who has completed

less than 2 years of service or another period specified for vesting and

locking in under the Pension Benefits Act ,

1997 the principal beneficiary or

designated beneficiary shall receive a cash payment of the amount that has

accumulated to the deceased member's credit.

Section 7 of the Act is repealed and the

following substituted:

Vesting and locking-in

7. Where an employee has participated in the plan for 2 years or in

accordance with the vesting and locking-in provisions of the Pension Benefits Act, 1997 , all

contributions made under sections 4 and 4.1, together with the accumulated

earnings on those contributions, shall be permanently vested and locked in

until the employee's retirement, at which time the amount standing to his or

her credit in the fund may be transferred to a retirement arrangement approved

by the Superintendent of Pensions appointed under the Pension Benefits Act,

Section 8 of the Act is repealed and the

following substituted:

Retirement

benefits

(1) Where an employee whose right to a

pension has vested under

section 7 stops being employed and later retires,

(

a) at the end of the month in which he or she reaches the age

of 65 years;

(

b) at

any time during the 10 year period immediately preceding the retirement date

referred to in paragraph (a); or

(

c) at

any time following the retirement date referred to in paragraph (a), but, in

any event no later than the end of the year in which he or she reaches the age

at which a pension is required to commence being paid under the provisions of

the Income Tax Act (Canada),

he or she is entitled to receive an

immediate pension which can be purchased with the amount that has accumulated

to his or her credit in the fund at that time.

(2) An

employee with a principal beneficiary shall receive a pension in the form

specified by

Article VI of

Schedule A with a survivor benefit of at least 60%,

payable upon his or her death to the principal beneficiary during the principal

beneficiary's lifetime.

(3) Where

the employee does not have a principal beneficiary, the employee may designate

another person as a beneficiary.

Section 9 of the Act is repealed.

Section 10 of the Act is amended by deleting

the word "participating".

Section 11.1 of the Act is amended by deleting

the word "and" at the end of paragraph (

c) and by adding immediately

after that paragraph the following:

(c.1) determining the types of authorized leave

without pay for which contributions may be made;

(c.2) determining the amount of contributions

required to be paid where an employee was on authorized leave without pay; and

10. The Act is amended by adding immediately after

section 12 the following:

Committee

12.1 The

Lieutenant-Governor in Council may appoint a committee to assist the minister

in the administration of this Act and may prescribe the duties of the committee

and designate the matters respecting which the committee may make

recommendations to the minister.

Schedule A of the Act is repealed and the

following substituted:

Schedule A

Money Purchase Pension Plan For Part-Time Employees of The Province of Newfoundland

And Labrador And For Certain Employees of Other Employers

ARTICLE I

Definitions

The

following terms wherever used in this instrument shall, for the purposes of it,

unless the context otherwise requires have the meaning set out below:

1. "Administrator" means the person who, on the recommendation

of the Committee, the Minister may from time to time appoint to administer the

Plan.

2. "Cohabiting Partner",

(

a) in relation to a Member who has a Spouse,

means a person who is not the Spouse of the Member who has cohabited continuously

with the Member in a conjugal relationship for not less than 3 years, or

(

b) in relation to a

Member who does not have a Spouse, means a person who has cohabited

continuously with the Member in a conjugal relationship for not less than one

year,

and is cohabiting or has cohabited with the Member within the preceding

year.

3. "Committee" means the Government Money Purchase Pension

Plan (GMPP) Committee appointed by the province.

4. "Custodian" means the Trustee or Insurer that the Minister

may from time to time appoint to administer the Fund.

5. "Designated Beneficiary" means a person so designated by

an Employee in accordance with

Article XI (Designated Beneficiaries).

6. "Earnings" means the amount of gross normal remuneration

received by the Employee but excludes overtime and other remuneration which is

not part of the basic remuneration unless those amounts are specifically included

as part of a collective agreement.

7. "Effective Date" means April 1, 1989 or the date designated by the Minister in relation to a particular

Employer from which the Employer is deemed to have joined the Plan.

8. "Employee" means an Employee of an Employer who is not

eligible to participate in another government sponsored pension plan of that

Employer, but excludes students and casual relief workers.

9. "Employer" means the government of the province or:

(

a) a Crown Corporation,

Agency, or Board of the province;

(

b) a non-profit public organization which has

close affiliations with the province whose primary function is to provide public

services which would normally be provided by the province if the organization

were not to exist; or

(

c) an organization that is

a participating employer under the provisions of the Public Service Pensions Act, 1991 ;

where the entity referred to in paragraph (a), (

b) or (

c) has applied to

have the plan extended to its designated employees and that application has

been approved by the minister.

10 . "Fund" means the investment fund

referred to in

section 12 of the Government

Money Purchase Pension Plan Act.

11. "Inactive Member" means a person who has ceased to be an Employee

but has not withdrawn his or her contributions from the Plan.

12. "Income Tax Act" means the Income Tax Act, R.S.C. 1985, c.1 (5 th Supp), as amended and the regulations under it.

13. "Insurer" means a life insurance company or other entity

authorized to transact annuity business in Canada .

14. "Interest" means the investment income resulting from

investment of the Member's Account as determined in accordance with

Article XIV

(Custodian and Accounts).

15 . "Investment Counsel" means a person

or organization that the Committee may from time to time appoint for purposes

of the Plan whose function is to give advice to the Committee on the investment

of the Fund.

16 . "Member" means an Employee or

Inactive Member.

17. "Member's Account" means the aggregate of contributions

made in accordance with Sections 1, 2, 3 and 5 of

Article III . Such account shall

be adjusted not less frequently than annually to reflect a proportionate share

of all interest and other income credited to the Fund, all administrative

expenses borne by the Fund and all increases and decreases in the value of the

properties comprising the Fund applicable to the types of investments being

utilized for such contributions, as determined by the Administrator. The

accumulated value of each Member Account at any valuation date shall be its

proportionate share of the total market value of the Fund at such valuation

date. Each Member Account's proportionate share of the Fund shall be determined

on the basis of the sum of its accumulated value at the immediately preceding

valuation date and all contributions made to such Member's Account subsequent

to that preceding valuation date.

18. "Minister" means the Minister of Finance for the Province of Newfoundland

and Labrador .

19. "Pension Adjustment" means the aggregate of the Member's

Pension Credits for the calendar year, under the Plan of the Employer in which

the Member participates.

20 . "Pension Benefits Act" means the Pension Benefits Act, 1997 , SNL1996

cP-4.01, as amended and the regulations thereunder .

21 . "Pension Credit" in respect of a

defined contribution provision or plan means the total of all contributions

made under the provision or plan in the year by the Employee and by the Employer.

22 . "Plan" means the pension plan for

Employees as set out in this instrument, which shall be named the "Government

Money Purchase Pension Plan."

23. "Plan Year" means the period from the Effective Date to

the next following December 31 st and from each January 1 st

to the next following December 31 st in each subsequent year.

24 . "Principal Beneficiary" means the

Spouse of a Member, or where the Member has a Cohabiting Partner, the Member's

Cohabiting Partner.

25. "Service" means service with an Employer including those

periods when the Employee is on lay-off or other inactive status but has rights

of recall or call back by agreement with the Employer.

26. "Spouse" means, except for the purposes of

Article XIII, a

person, who

(

a) is married to the

Employee;

(

b) is married to the

Employee by a marriage that is voidable and has not been voided by a judgment

of nullity; or

(

c) has gone through a

form of a marriage with the Employee, in good faith, that is void and is

cohabiting or has cohabited with the Employee within the preceding year.

27. "YMPE" means the year's maximum pensionable

earnings as defined under the Canada Pension Plan.

ARTICLE II

Eligibility and Membership

1. Eligibility and Membership

All

Employees hired after the Effective Date must join the Plan on their date of

employment.

All

Employees hired before the Effective Date may join the Plan from the Effective

Date or at a later date.

The

Employees shall complete those forms that are required by the Administrator.

2. Explanation to Members

The

Administrator shall provide a written description of the Plan to each Employer

for distribution to every person who is eligible to become a Member on or

before the date of eligibility. The description shall explain the terms and

conditions of the Plan and amendments to it as are applicable to the Member,

and shall set out the rights and duties of the Employee with reference to the

benefits available and the contributions payable under the Plan.

The

Administrator shall, at the written request of the Member and at least

annually, provide each Member with a written benefit statement as required by

applicable provincial legislation.

Within

60 days of an amendment to the Plan, the Administrator shall provide a similar

description of the amendment to each Employer for distribution to each Member affected

by the amendment.

Upon

termination of employment, the Employer shall request the Administrator to

provide the Member with a written statement showing the benefits to which he or

she is entitled.

Employers

are to distribute all information concerning the Plan to Members within the

timeframes referenced under the Pension Benefits Act.

ARTICLE III

Contributions

1. Employee Contributions

(

a) Each Employee shall contribute to the Plan

during a period of membership an amount equal to five percent of Earnings or

such greater amount that may be established by a directive of the Minister.

(

b) The contributions shall be deducted from the

Earnings by the Employer.

2. Employer Contributions

The

Employer shall contribute to the Plan on behalf of each Employee an amount

equal to the Employee's contributions or such other amount that may be

established by a directive of the Minister.

3. Contributions for Authorized Leave without Pay

Employee who commences an authorized leave of absence without pay may be

permitted to make contributions in respect of that period of leave under terms

and conditions that may be established by a directive of the Minister. The

Employer shall be required to pay an amount equal to the Employee's

contributions under this Section. All contributions under this

Section are

subject to limitations contained in the Income Tax Act.

4. Payment to the Custodian

The

Employer shall pay to the Custodian all contributions made by or on behalf of

Employees under this Article, within the calendar month following the month

during which the contributions were made.

5. Voluntary Contributions

Subject

to the limitations of

Section 6 of this Article, the Employee may make

additional voluntary contributions to the Plan, which are

not required to be matched by the Employer.

6. Limitations on Contributions

Notwithstanding

Sections 1, 2, 3 and 5 of this Article, contributions made under those Sections

may be returned to the person who made the contribution where the contribution

is returned to avoid the revocation of the registration of the Plan under the Income Tax Act.

avoid the revocation of the registration of the Plan under the Income Tax Act:

(

a) for an Employee and

an Employer, the total amount of the Employee's Pension Credit for the year in

respect of the Employer under the Plan shall not exceed the lesser of

(

i) the money purchase

limit for the year, and

(ii) 18% of the Employee = s remuneration from

the Employer for the year; or

(

b) for an Employee, the total amount of the

Employee = s Pension Credit for the year in respect of an Employer under the

Plan shall not exceed the money purchase limit for the year; and

(

c) no contributions may

be made by an Employee after the end of the calendar year in which the Employee

reaches the age at which a pension benefit is required to begin under the Income

Tax Act .

ARTICLE IV

Retirement Dates and Conditions

1. Normal Retirement

(

a) The normal retirement date of a Member shall

be the first day of the month following attainment of age sixty-five provided

the Member has completed two years of Service.

(

b) The pension payable to a Member on normal

retirement shall be determined in accordance with

Article V (Retirement Benefits).

2. Early Retirement

(

a) A Member may elect to retire at any time in

the ten year period immediately preceding his or her normal retirement date and

receive a pension provided the Member has completed two years of Service.

(

b) The pension payable to a Member on early

retirement shall be determined in accordance with

Article V (Retirement Benefits).

3. Postponed Retirement

(

a) A Member may elect to retire at any time after

his or her normal retirement date but not later than the end of the year in

which the Member reaches the age at which a pension benefit is required to

begin under the Income Tax Act, provided the Member has completed at least two

years of Service.

(

b) The pension payable to a Member on postponed

retirement shall be determined in accordance with

Article V (Retirement Benefits).

ARTICLE V

Retirement Benefits

1. Normal or Postponed Retirement

Member who retires on or after his or her normal retirement date shall be

entitled to receive a pension, which can be purchased with the value of the

Member's Account at the actual retirement date.

2. Early Retirement Pension

Member who retires before the normal retirement date shall be entitled to

receive, from his or her retirement date, an immediate pension, which can be

purchased with the value of the Member's Account at the actual retirement date.

3. Benefit from Member Voluntary Contributions

addition to any other retirement benefits payable under this Article, a Member

is entitled to receive either:

(

a) a refund of the

Member's voluntary contributions made under

Article III , if any, plus

interest; or

(

b) an annuity purchased

from an insurance company licensed to transact business in Canada

with the amount described in (1).

4. Small Benefit Commutation

the annual lifetime pension payable at a Member's normal retirement date is not

more than 4% of the YMPE in the year of the Member's termination of employment,

or the value of the Member's Account is not more than 10% of the YMPE in the

year of the Member's termination of employment, or such other amount as may be

prescribed for this purpose by the Pension Benefits Act, the Member will

receive a lump sum payment equal to the value of the Member's Account in full

satisfaction of his or her entitlement under the Plan.

5. Transfer of Refund to RRSP

Member who is entitled to receive a refund of contributions may elect to have

that refund transferred directly on his or her behalf to a Registered

Retirement Savings Plan.

ARTICLE VI

Normal and Optional Forms

1. Normal Form of Pension

For

a retiring Member with a Principal Beneficiary the normal form of pension is

one which provides a lifetime pension income and further, upon the death of the

retired Member, continues at sixty percent to the Principal Beneficiary, until

the death of the Principal Beneficiary.

2. Optional Forms of Pension

The

retiring Member may elect another form of pension, which is acceptable to the

Administrator and is permissible under the Pension Benefits Act and the Income

Tax Act.

3. Transfer of lump sum to RRSP

the person who is entitled to receive a lump sum payment under any form of

pension payable under the Plan is the Spouse or former spouse of the Member,

the Spouse or former spouse of the Member may elect to have that amount

transferred directly on his or her behalf to a Registered Retirement Savings

Plan.

ARTICLE VII

Termination of Service

1. If an Employee terminates employment prior to the normal retirement

date, the terms of this

Article shall apply.

2. Vesting and Locking-In

(

a) An Employee who terminates employment prior to

January

1, 1997 has a vested entitlement to funds

in the Member's Account provided he or she has completed at least five years of

Service. An Employee who terminates employment after January 1, 1997 and after completion of two years of Service has a vested

entitlement to funds in the Member's Account. A Member has at all times a completely

vested interest in his or her voluntary account. An Employee whose employment

is terminated for any reason whatsoever other than death or retirement, will be

entitled to receive a benefit as described in this Article.

(

b) Locking in refers

to the cash availability of funds in the Member's Account and will be as

follows:

(

a) With respect to contributions made prior to January 1, 1997 , but after January 1985, if the terminated Employee has both

attained age 45 and completed 10 years of continuous Service, no cash option is

available with respect to such contributions.

(

b) With respect to contributions made on or after

January

1, 1997 , if the terminated Employee has

completed at least 2 years of Service no cash option is available with respect

to such contributions.

3. Non Vested Termination

Employee who terminates on or after January 1, 1997

with less than 2 years Service is only entitled to a refund of his or her own

contributions plus interest, which may be transferred directly to a Registered

Retirement Savings Plan.

4. Vested Termination

an Employee terminates employment on or after January 1, 1997 , prior to retirement, the Employee may elect to transfer the funds

accumulated in the Member's Account to a locked in retirement account, another

registered pension plan, a deferred life annuity, a life income fund or other

retirement arrangement approved by the Superintendent of Pensions.

5. Small Benefit Commutation

the annual lifetime pension payable at the Member's normal retirement date is

not more than 4% of the YMPE in the year of the Member's termination of

employment, or the value of the Member's Account is not more than 10% of the

YMPE in the year of the Member's termination of employment, or such other

amount as may be prescribed for this purpose by the Pension Benefits Act, the

Member will receive a lump sum payment equal to the value of the Member's Account

in full satisfaction of his or her entitlement under the Plan.

6. Where a non-vested Employee terminates under

Section 3 of this

Article, the amount of the Employer contribution balance resulting from the

termination shall be deposited to a forfeitures account to be used to reduce

the administrative expenses of the Plan.

ARTICLE VIII

Withdrawal from Plan

1. While an Employee remains in employment with an Employer the

Employee may neither:

(

a) withdraw his or her

contributions from the Plan; nor

(

b) borrow against his or

her contributions.

ARTICLE IX

Pre Retirement Death

1. In the event of the death of a Member, a lump sum amount equal to

the value of the Member's Account on the date of death (the benefit) shall be

paid to the Principal Beneficiary, pursuant to the provisions under the Pension

Benefits Act.

2. In the event there is no Principal Beneficiary, the benefit shall be

paid to the Member's Designated Beneficiary as designated in accordance with

Article XI (Designated Beneficiaries).

3. If there is no Designated Beneficiary or if the person designated by

the Member as his or her Designated Beneficiary is not living at the time of

the Member's death, the benefit shall be paid to the Member's estate.

4. In the event of there being a doubt as to the identity of the Designated

Beneficiary or as to whether the Designated Beneficiary is the person legally

entitled to receive a benefit, payment of the benefit may be withheld for a

reasonable time to permit investigation to be made. In this event, a Designated

Beneficiary or claimant shall on demand be obliged to furnish all information

and to produce proof of identity and of right to the benefits that may be

reasonable in the circumstances.

ARTICLE X

Transfers

1. Reciprocal Transfer Agreements

Reciprocal

transfer agreements may be entered into to provide for transfers between

registered pension plans.

2. Transfer from Employment

(

a) Where a reciprocal transfer agreement exists

between an Employer and a previous employer, the Employer will accept deposits

into the Member's Account by way of transfer from the previous employer's

registered pension plan in accordance with the terms of the reciprocal transfer

agreement.

(

b) An Employee may pay into his or her Member's

Account, as permitted by the Income

Tax Act, an amount received or receivable by him or her as a cash

withdrawal benefit under another employee pension plan registered as such with

the Canada Revenue Agency for purposes of the Income Tax Act .

3. Transfer to Other Employment

Where

there exists a reciprocal transfer agreement between the Employer and the

subsequent employer of the Employee, transfer payments may be made into the

fund of the subsequent employer's pension plan. The amount of such a transfer

shall be determined in accordance with the Reciprocal Transfer Agreement but

the total amount transferred shall be the amount credited to the Member in the

Member's Account as if the Member has vested under

Article VII .

ARTICLE XI

Designated Beneficiaries

1. The Designated Beneficiary shall be the Principal Beneficiary.

2. A Member without a Principal Beneficiary may designate in writing a

person to receive a benefit payable under the Plan in the event of death prior

to retirement.

3. A Member who has made a designation in accordance with

Section 2 of

this

Article may from time to time alter or revoke the designation by filing

with the Administrator the alteration or revocation in writing.

4. Once a Member has a Principal Beneficiary a prior designation made

in accordance with Sections 2 or 3 of this

Article shall be null and void.

ARTICLE XII

Limitation of Assignment

1. No right of a person under the Plan is capable of being assigned,

charged, anticipated, given as security or surrendered, and, for the purposes

of this condition,

(

i) assignment does not

include

(

A) assignment pursuant to a decree, order or

judgment of a competent tribunal or a written agreement in settlement of rights

arising out of a marriage or cohabiting partnership between a Member and the

Member's spouse or Cohabiting Partner or former spouse or Cohabiting Partner,

on or after the breakdown of their marriage or Cohabiting Partner, or

(

B) assignment by the

legal representative of a deceased Member on the distribution of the Member's

estate, and

(ii) surrender does not

include a reduction in benefits to avoid the revocation of the registration of

the Plan under the Income Tax Act.

ARTICLE

XIII

Splitting of Credits on Marriage Breakdown

1. In the event of marriage breakdown, pension benefits will be divided

in accordance with a written separation agreement, or an order under the Family Law Act , RSNL1990 cF-2, as

amended. Such division is subject to

Part VI of the Pension Benefits Act.

2. Pension benefits will be determined as if the Member had terminated

employment on the date of marriage breakdown. Where benefits are to be divided

pursuant to a separation agreement, the settlement to the spouse may not exceed

the limits imposed by the Pension Benefits Act.

3. If the Member's benefits under the Plan are locked-in, locking-in

will also apply to the spouse's settlement. In such event, the spouse may elect

to transfer the benefit to:

(

a) a locked-in retirement

account, which is a Registered Retirement Savings Plan which meets the

conditions of applicable legislation, or

(

b) another registered

pension plan of which the spouse is a member, provided such a plan accepts such

transfers, or

(

c) an insurance company

to purchase a deferred life annuity, meeting the conditions of applicable

legislation, or

(

d) a life income fund in

the spouse's name, or any other arrangement approved by the Superintendent of

Pensions

wherein the benefits so transferred will continue to be administered in

accordance with applicable legislation.

ARTICLE XIV

Custodian and Accounts

1. The accounts shall be established and administered by the Custodian,

in accordance with the terms of an agreement executed between the Minister and

the Custodian and in accordance with the requirements for registered pension

plans as outlined in the Income Tax

Act and other applicable legislation.

2. The Custodian shall maintain and keep record of a separate account

for each Member which will consist of:

(

a) all contributions

made in accordance with the terms of the Plan by Employers and Employees;

(

b) all contributions

credited to each Member on account of transfers pursuant to

Article X

(Transfers);

(

c) all additional

voluntary contributions made by each Member; and

(

d) interest accrued on

(a), (

b) and (c).

3. Death and termination benefits under the Plan shall be provided directly

from the Member's Account.

4. Each Member's Account shall be charged with the fees as outlined in

the policy document of the Administrator as agreed to by the Committee.

5. Each Member's Account shall have a fiscal year ending December 31st.

ARTICLE XV

Administration and Procedures

1. The Committee, on behalf of the Minister, is responsible for all matters

relating to the administration of the Plan. The Committee may make any recommendations

to the minister respecting the administration of the plan that it considers

necessary.

2. The Committee shall keep a permanent record of minutes of its meetings

and of its decisions. The quorum for meetings of the Committee may be fixed by

the Committee. Any writing required to transmit or

record decisions of the Committee shall be sufficiently executed when signed by

the chairperson. In all other matters relating to the conduct of its affairs

the Committee may make its own rules and regulations.

3. Upon the recommendation of the Committee, the Minister may modify,

amend or revise the Plan from time to time to meet the aims and objectives of

the Plan and satisfy the requirements of applicable legislation.

4. The Committee shall from time to time receive reports from the Investment

Counsel and the Custodian. As a result of these reports the Committee may

recommend certain courses of action to the Minister.

5. Payment of a benefit under the Plan shall be made only upon receipt

of written request for it in the manner prescribed by the Administrator and

upon submission of the relevant supporting evidence as the Administrator in his

or her discretion may require.

6. All pension benefits must be provided under an arrangement acceptable

under the Pension Benefits Act and

the Income Tax Act .

7. The Administrator shall make available for inspection by eligible

individuals the documents and information concerning the Plan and the Fund as

prescribed by the Pension Benefits Act.

8. The Committee will advise the Canada Revenue Agency of any changes in

name or address of the appointed Administrator of the Plan within 30 days of

such change.

9. Beginning in 1991, the Employer will report to the Canada Revenue

Agency a Pension Adjustment for each Member. Such Pension Adjustment shall be

reported by the end of February of each calendar year.

10. The Plan includes and shall only include investments that:

(

a) are not prohibited investments under

Section

8514(1) of the regulations to the Income Tax Act; and

(

b) are permitted investments under the Pension

Benefits Act.

11. Borrowing against the Plan is prohibited.

ARTICLE XVI

General

1. No Member, Principal Beneficiary or Designated Beneficiary shall

have any recourse under this Plan against a past, present or future Custodian,

Administrator, Employer or other Employee or person acting on behalf of those

persons or member of the Committee, and all those persons shall be free from

all liability.

2. The Plan shall not:

(

a) give an Employee a

right to be retained in the Service of an Employer;

(

b) prevent an Employer

from discharging an Employee at any time;

(

c) give rise to a claim

by anyone against the Employer for damages for any cause.

3. All contributions to and all benefits made from the Plan shall be payable

in the lawful currency of Canada .

4. In case the age of a Member is found to have been incorrectly

stated, the Administrator is empowered to make or cause to be made those

adjustments respecting the Member, for the purposes of the Plan that the

Administrator shall consider equitable.

ARTICLE XVII

Future of the Plan

1. Continuation of Plan

The Minister intends to maintain

the Plan indefinitely, but reserves the right to amend the Plan or discontinue

the Plan in whole or in part.

2. Amendment to the Plan

No amendment shall operate to

reduce the pension benefits, which have accrued to any Member before the date

of the amendment, based on Earnings up to the date of the amendment.

3. Termination of the Plan

If the Plan is wound up, in part or

in whole, assets of the Plan, other than those in the forfeitures account, will

be distributed among Members of the Plan in a fair and equitable manner, as

determined by the Administrator and as approved by all relevant governmental authorities.

All expenses related to the wind up of the Plan shall be paid from the

forfeitures account with any residual amounts remaining in the account after

wind up returned to the Government of Newfoundland and Labrador .

the Plan is wound up, in whole or in part, Employers shall not make further

contributions to the Fund in respect of the Plan or the portion of the Plan

being wound up, as applicable, except for amounts due, or that have accrued up

to the effective date of the wind-up and have not been paid into the Fund as

required by the Plan and the Pension Benefits Act, plus amounts required to be

contributed pursuant to the requirements of the Pension Benefits Act.

Earl G. Tucker, Queen's Printer