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1997 Legislative Session: 2nd Session, 36th Parliament

THIRD READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

Certified correct as passed Third Reading on the 17th day of July, 1997

Ian D. Izard, Law Clerk

HONOURABLE ANDREW PETTER

MINISTER OF FINANCE AND

CORPORATE RELATIONS AND

MINISTER RESPONSIBLE FOR

INTERGOVERNMENTAL RELATIONS

BILL 18 – 1997

PENSION STATUTES AMENDMENT ACT, 1997

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province

of British Columbia, enacts as follows:

Pension (College) Act

Section 1 (1) of the Pension (College) Act, R.S.B.C. 1996, c. 353, is amended

(

a) by repealing the

definitions of "approved employer" and "reciprocal employer" ,

and

(

b) in paragraph (

a) of the definition of "employer" by striking out "board or commission" and substituting "board, commission or publicly funded educational institution" .

Section 2 is amended

(

a) in subsection (1) (

b) by striking out "board or commission" and substituting "board,

commission or publicly funded educational institution" , and

(

b) by adding the following subsection:

(3) A designation under subsection (1) (

b) in relation to a publicly funded

educational institution may be made retroactive to a date on or after July 14, 1995

and, if made retroactive, is deemed to have come into force on the date specified.

Section 4 (1) (a) (ii) and (2) (a) (ii) is amended by striking out "board or commission" and

substituting "board, commission or publicly funded educational institution" .

Section 7 is amended

(

a) in subsection (1) by striking out "section 24 (2)" and substituting "section 24 (1) (c)" ,

and

(

b) in subsection (6) by striking out ", including service rendered by the employee in the

service of all reciprocal employers" .

Section 13 is repealed.

6 The following

section is added:

Special retirement incentive plan

14.1

(1) The employer may, by resolution, request that the commissioner waive or alter

the percentage reduction provided for in

section 14 (3) (a), (4) or (5) and the

commissioner, after having first consulted with the board and subject to

subsection (2), may make the waiver or alteration.

(2) The commissioner must, on request for a waiver or alteration under subsection

(1), determine all of the following:

(

a) the additional cost to the fund that results from the payment of a pension to

an employee by the application of subsection (1);

(

b) the amount and the time at which additional payments must be made to the

fund by the employer;

(

c) the class of employees to whom subsection (1) applies;

(

d) the period of time during which subsection (1) applies;

(

e) the conditions under which the percentage reduction is waived or altered.

Section 15 is amended by adding the following subsection:

(1.1) The temporary life annuity referred to in subsection (1) (

d) must be adjusted on

an actuarially equivalent basis instead of the lifetime pension otherwise payable.

8 The following

section is added:

Phased retirement plan

22.1

(1) The commissioner may, after having first consulted with the board, establish a

phased retirement plan for employees 55 years of age or older who are eligible to

receive an immediate pension and under which, if an employer and employee

agree that the employee will reduce his or her hours of work, the employee will

specified by the commissioner.

(2) Without limiting subsection (1), the commissioner may specify

(

a) the manner in which the final pension on full retirement must be calculated

to take into account payments from the fund under the phased retirement

plan,

(

b) the conditions under which payments may be made from the fund and the

amount of those payments, and

(

c) the date and frequency of payments.

Section 24 is amended

(

a) by repealing subsection (2),

(

b) in subsection (6) (

a) by striking out "or from a reciprocal employer" , and

(

c) in subsection (8) by striking out "or (2)" .

Section 25 is amended

(

a) in subsection (3) by striking out "section 9 (1) (b), 10 or 13 is limited by

section 11 or

13 (6)," and substituting "section 9 (1) (

b) or 10 is limited by

section 11," , and

(

b) in subsection (4) by striking out "section 11 or 13 (6)," and substituting "section 11," .

Section 26 (1) is amended by striking out "section 9 (1) (b), 10 or 13 is limited by

section

11 or 13 (6)," and substituting "section 9 (1) (

b) or 10 is limited by

section 11," .

Section 30 is amended by striking out ", or from a reciprocal employer," .

Section 53 (

b) is amended by striking out ", or with a reciprocal employer," .

Pension (Municipal) Act

Section 1 (1) of the Pension (Municipal) Act, R.S.B.C. 1996, c. 355, is amended

(

a) by repealing the

definitions of "approved employer" and "reciprocal employer" ,

and

(

b) in the definition of "employer" by striking out "board or commission" and substituting "board, commission or publicly funded educational institution" .

Section 2 is amended

(

a) in subsection (1) by adding the following paragraph:

(a.1) a regional health board and a community health council established under

the Health Authorities Act and a community health services society incorporated under the Society Act, to which this Act is declared to be applicable

by order of the board, on receipt of a resolution passed by an affirmative

vote of not less than 2/3 of all the members of the governing authority of the

regional health board, community health council or community health

services society, but only in respect of those employees

(

i) who were employed by an employer, otherwise designated under this

Act or another public sector pension Act, that amalgamates with a

regional health board, community health council or community

health services society,

(ii) who were employed by an employer, not otherwise designated under

this Act or another public sector pension Act, that amalgamates with

a regional health board, community health council or community

health services society and who are

(

A) employed in a job function that is integrated with the job

function of an employee described in subparagraph (i), or

(

B) brought within the scope of this Act by order of the board on

receipt of a resolution from the governing authority of the

regional health board, community health council or community

health services society, or

(iii) who, despite subsection (3) (b), are new employees in a class of

employees described in subparagraph (

i) or (ii) of this paragraph; ,

(

b) by adding the following subsection:

(1.1) Subsection (1) (a.1) does not apply to employees to whom the Pension (Public

Service) Act applies. ,

(

c) in subsection (2) (

i) by striking out "commission or authority" and substituting

"commission, authority or publicly funded educational institution" , and

(

d) by adding the following subsection:

(2.1) An order under subsection (2) (

i) in relation to a publicly funded educational

institution may be made retroactive to a date on or after July 14, 1995 and, if

made retroactive, is deemed to have come into force on the date specified in the

order.

Section 7 (2) is amended by striking out ", including service rendered by the employee in

the service of all reciprocal employers" .

Section 12 is amended

(

a) in subsection (1) (

b) by striking out "not exceeding 1/2 of the cost" and substituting

"not exceeding the cost" , and

(

b) by repealing subsection (7).

Section 13 is amended

(

a) by repealing subsection (5), and

(

b) in subsection (6) by striking out "or through having service taken into account under

section 12 (7)" .

19 The following

section is added:

Special retirement incentive plan

13.1

(1) The employer may, by resolution, request that the commissioner waive or alter

the combined age plus years of contributory service or the percentage reduction,

or both, provided for in

section 13 (1), (2) (

b) or (3) (

c) or (

d) or

section 17 (10),

and the commissioner, after having first consulted with the board and subject to

subsection (2), may make the waiver or alteration.

(2) The commissioner must, on request for a waiver or alteration under subsection

(1), determine all of the following:

(

a) the additional cost to the fund that results from the payment of a pension to

an employee by the application of subsection (1);

(

b) the amount and the time at which additional payments must be made to the

fund by the employer;

(

c) the class of employees to whom subsection (1) applies;

(

d) the period of time during which subsection (1) applies;

(

e) the conditions under which the combined age plus years of contributory

service or percentage reduction, or both, is waived or altered.

Section 15 is repealed.

Section 17 is amended by adding the following subsection:

(1.1) The temporary life annuity referred to in subsection (1) (

d) must be adjusted on

an actuarially equivalent basis instead of the lifetime pension otherwise payable.

Section 27 is amended

(

a) by repealing subsection (2),

(

b) in subsection (3) by striking out "subsection (1) or (2)," and substituting "subsection

(1)," ,

(

c) in subsection (6) (

a) by striking out "or a pension from a reciprocal employer" , and

(

d) in subsection (8) by striking out "or (2)" .

Section 28 (2) is amended by striking out "or 15" .

Section 29 (2) is repealed.

Section 33 is amended by striking out "or from a reciprocal employer" .

Section 56 (

b) is amended by striking out ", or with a reciprocal employer," .

Pension (Public Service) Act

Section 1 (1) of the Pension (Public Service) Act, R.S.B.C. 1996, c. 356, is amended by

repealing the

definitions of "approved employer" and "reciprocal employer" .

Section 2 is amended

(

a) in subsection (1) by adding the following paragraph:

(

p) a regional health board and a community health council

established under the Health Authorities Act and a community health services

society incorporated under the Society Act , in respect only of

those employees to whom subsection (5) applies. ,

(

b) by adding the following subsection:

(3.1) An employee exempt under subsection (3) may not

(

a) make contributions under this Act if making contributions to some other

pension fund, or

(

b) purchase service under this Act in respect of the period of temporary

absence. , and

(

c) by adding the following subsection:

(5) If an employee to whom this Act applies is transferred to the employment of a

regional health board, community health council or community health services

society, this Act continues to apply to the employee despite the transfer unless the

employee elects to have the Pension (Municipal) Act apply in which case that Act

applies to the employee.

Section 9 (9) is amended by striking out ", including service rendered by the employee in

the service of all reciprocal employers" .

Section 11 is amended by adding the following subsection:

(4.1) An employee referred to in subsection (4) may not

(

a) make contributions to some other pension fund if making contributions

under this Act, or

(

b) purchase service under some other Act in respect of service for which

contributions have been made under this Act.

Section 14 (1) is amended by striking out "sections 34 (3) and 65 (4) to (6)" and substituting "section 65 (4) to (6)" .

32 The following

section is added:

Special retirement incentive plan

15.1

(1) The employer may, by resolution, request that the commissioner waive or alter

the combined age plus years of contributory service or the percentage reduction,

or both, provided for in

section 15 (1), (5), (6), (7) or (8) or

section 19 (2), and

the commissioner, after having first consulted with the board and subject to

subsection (2), may make the waiver or alteration.

(2) The commissioner must, on request for a waiver or alteration under subsection

(1), determine all of the following:

(

a) the additional cost to the fund that results from the payment of a pension to

an employee by the application of subsection (1);

(

b) the amount and the time at which additional payments must be made to the

fund by the employer;

(

c) the class of employees to whom subsection (1) applies;

(

d) the period of time during which subsection (1) applies;

(

e) the conditions under which the combined age plus years of contributory

service or percentage reduction, or both, is waived or altered.

(3) If the employer is a ministry of the government, a waiver or alteration made under

subsection (1) is not valid without the approval of the Treasury Board.

Section 16 is repealed.

Section 18 is amended by adding the following subsection:

(1.1) The temporary life annuity referred to in subsection (1) (

d) must be adjusted on

an actuarially equivalent basis instead of the lifetime pension otherwise payable.

Section 18 (10) is amended by striking out "section 19 (1) or by having service taken into

account under

section 34 (1)," and substituting "section 19 (1)," .

Section 19 (1) (

c) is amended by striking out "in respect of pensionable service on and after

January 1, 1996 if" and substituting "if, effective January 1, 1996," .

Section 19 (2) is repealed and the following is substituted:

(2) A contributor entitled to a deferred pension may apply to receive the pension on

or after reaching an age that is not more than 5 years less than pensionable age,

but the 2% referred to in

section 22 (1) must be reduced by 5% of that amount for

the lesser of

(

a) each year of age the contributor is under pensionable age, and

(

b) each year the sum of the contributor's age plus contributory service is less

than 90 years minus the number of years that the maximum retirement age

for that employee is less than 65,

and the reduction must be prorated for fractions of a year.

(2.1) If an employee retires from service on or after January 1, 1996 and while making

contributions

(

a) has reached an age that is within 15 years of the maximum retirement age,

and

(

b) meets the service requirements specified by the board,

the 5% referred to in subsection (2) must be 3%.

Section 19 (5) and (6) is repealed.

Section 20 is repealed.

Section 21 (7) is amended by striking out "under that section," and substituting "under the

regulations," .

Section 28 is amended

(

a) by repealing subsection (2),

(

b) in subsection (3) by striking out "subsection (1) or (2)," and substituting "subsection

(1)," ,

(

c) in subsection (6) (

a) by striking out "or a pension from a reciprocal employer" , and

(

d) in subsection (8) by striking out "or (2)" .

Section 34 is repealed.

Section 37 (1) (

c) is amended by striking out "sections 34 to 36," and substituting

"section 35 or 36," .

Section 41 (3) is amended by striking out "34 (3) or 65 (4) to (6)" and substituting "section

65 (4) to (6)" .

Section 42 (2) is amended by striking out "34 (3) or 65 (4) to (6)" and substituting "section

65 (4) to (6)" .

Section 46 is amended by striking out ", or from a reciprocal employer," .

Section 66 is amended by striking out ", or with a reciprocal employer," .

Pension (Teachers) Act

Section 1 (1) of the Pension (Teachers) Act, R.S.B.C. 1996, c. 357, is amended by

repealing the

definitions of "approved employer" and "reciprocal employer" .

Section 2 is amended

(

a) in subsection (1) by adding the following paragraph:

(

i) the B.C. Principals' and Vice Principals' Association and the B.C. School Superintendents Association and those employees of them who are employed on a

permanent basis and designated by the respective employer. , and

(

b) by adding the following subsection:

(2.1) An employee exempt under subsection (2) may not

(

a) make contributions under this Act if making contributions to some other

pension fund, or

(

b) purchase service under this Act in respect of the period of temporary

absence.

Section 7 (4) is amended by striking out "service, including service rendered by the

employee in the service of all reciprocal employers." and substituting "service."

Section 9 is amended by adding the following subsection:

(3.1) Recognition of service as pensionable service under subsection (3) is treated as a

leave of absence and is subject to any limitations under the Income Tax Act

(Canada).

52 Sections 12 (2) (

b) and (

c) and (8) and 13 (2) are repealed.

53 The following

section is added:

Special retirement incentive plan

12.1

(1) The employer may, by resolution, request that the commissioner waive or alter

the combined age plus years of contributory service or the percentage reduction,

or both, provided for in

section 12 (1), (2) or (3) or

section 23 (2), and the

commissioner, after having first consulted with the board and subject to

subsection (2), may make the waiver or alteration.

(2) The commissioner must, on request for a waiver or alteration under subsection

(1), determine all of the following:

(

a) the additional cost to the fund that results from the payment of a pension to

an employee by the application of subsection (1);

(

b) the amount and the time at which additional payments must be made to the

fund by the employer;

(

c) the class of employees to whom subsection (1) applies;

(

d) the period of time during which subsection (1) applies;

(

e) the conditions under which the combined age plus years of contributory

service or percentage reduction, or both, is waived or altered.

Section 14 is repealed.

Section 16 is amended

(

a) by adding the following subsection:

(1.1) The temporary life annuity referred to in subsection (1) (

d) must be adjusted on

an actuarially equivalent basis instead of the lifetime pension otherwise payable. ,

and

(

b) in subsection (2) by striking out "under section (1)." and substituting "under subsection (1)."

Section 21 (2) (

b) is amended by striking out "section 23 (3) (b)." and substituting "section

23 (3)."

Section 23 is amended

(

a) by repealing subsection (3) and substituting the following:

subsection (4), a contributor may elect to receive a payment in the amount of the

commuted value of the deferred pension. , and

(

b) in subsection (4) by striking out "or payments" .

Section 25 is amended

(

a) by repealing subsection (2),

(

b) in subsection (6) (

a) by striking out "or a pension from a reciprocal employer" , and

(

c) in subsection (8) by striking out "or (2)" .

Section 26 is amended

(

a) by repealing subsection (3), and

(

b) in subsection (4) by striking out "section 7 (2), 11 or 14 (6)," and substituting "section

7 (2) or 11," .

Section 27 (1) is repealed.

Section 31 is amended by striking out "or from a reciprocal employer" .

Section 54 (

b) is amended by striking out ", or with a reciprocal employer," .

Commencement

(1) Sections 1 (a), 4 (b), 5, 7, 9 to 12, 13, 14 (a), 16 to 18, 20 to 27, 28 (b), 29 to 31,

33 to 35, 38, 39, 41 to 48, 49 (b), 50 to 52, 54, 55 (

a) and 58 to 62 come into force

by regulation of the Lieutenant Governor in Council.

(2) Sections 1 (b), 2, 3, 14 (

b) and 15 (

c) and (

d) are deemed to have come into force

on July 14, 1995 and are retroactive to the extent necessary to give them effect on

and after that date.

(3) Sections 6, 8, 19, 32 and 53 are deemed to have come into force on

October 1, 1996 and are retroactive to the extent necessary to give them effect on

and after that date.

(4) Sections 15 (

a) and (b), 28 (

a) and (c), 36, 37, 56 and 57 are deemed to have come

into force on January 1, 1996 and are retroactive to the extent necessary to give

them effect on and after that date.

Copyright © 1997: Queen's Printer, Victoria, British Columbia, Canada