Third

Session, 45th General Assembly

Elizabeth II, 2006

BILL 64

AN ACT TO AMEND THE

PUBLIC SERVICE PENSIONS ACT, 1991 AND THE TEACHERS' PENSIONS

ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

LOYOLA SULLIVAN

Minister

of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would amend the Public Service Pensions Act, 1991 and

the Teachers' Pensions Act to provide

for the establishment of a Public Service Supplementary Plan Account and a

Teachers' Supplementary Plan Account in the Consolidated Revenue Fund. The Bill would provide that, in each case,

employee and employer pension plan contributions in excess of those permitted

to be contributed to a registered pension plan under the Income Tax Act ( Canada )

would be deposited into the particular supplementary account on an annual

basis. The Bill would further amend each

Act to provide that pension benefits would be paid as follows: pension benefits to the deductible limit

permitted under the Income Tax Act ( Canada )

would be paid from the pension fund; benefits in excess of the deductible limit

would be paid from the particular supplementary account.

A BILL

AN ACT TO AMEND THE PUBLIC SERVICE PENSIONS

ACT, 1991 AND THE TEACHERS' PENSIONS ACT

Analysis

PUBLIC SERVICE PENSIONS ACT, 1991

S.2 Amdt.

Definitions

S.4 Amdt.

Pension plan

S.5 Amdt.

Employee contributions

S.6 Amdt.

Deductions paid to fund

S.18 Amdt.

Calculation of pension

S.18.1 Rep.

Exempted pensionable service

S.26 R&S

Pension payments

S.26.1 Added

Subsections apply notwithstanding

TEACHERS'

PENSIONS ACT

S.2 Amdt.

Interpretation

S.5 Amdt.

Pension plan

S.6 Amdt.

Contributions by teachers

S.8 Amdt.

Government contributions

S.22 Amdt.

Calculation of pension

S.30 R&S

Pension payments

S.30.1 Added

Subsections apply notwithstanding

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

Section 2 of the Public Service Pensions Act, 1991 is amended by adding immediately

after paragraph (

r) the following:

(r.1) "supplementary account" means the

Public Service Supplementary Plan Account established under subsection 4(2);

Section 4 of the Act is amended by renumbering

it as subsection 4(1) and by adding immediately after that subsection the following:

(2) The Public Service Supplementary Plan Account

is established in the Consolidated Revenue Fund.

Section 5 of the Act is amended by adding

immediately after subsection (4) the following:

(5) Contributions to the pension plan deducted

from the salary of an employee under subsection (2) shall be deposited each

month to the credit of the pension fund.

(6) Where the amount of contributions made under subsection

(2) exceeds the amount of the annual deductible contributions to a registered

plan permitted under the Income Tax Act

(Canada), the amount of the excess, as determined at the end of the calendar

year in which the contributions are made, shall be paid from the pension fund

to the supplementary account no later than the last day of February in the immediately

following calendar year.

4. (1) Subsection 6(1) of the Act is repealed.

(2) Paragraph 6(2)(

a) of the Act is amended by

striking out the comma immediately following the word "minister" and

the words "less benefits payable under subsection 26(3)".

(3) Section 6 of the Act is amended by adding

immediately after subsection (4) the following:

(4.1) Where the amount of government contributions

under subsection (2) or employer contributions under subsection (3) exceeds the

amount of the annual deductible contributions to a registered plan permitted

under the Income Tax Act (Canada),

the amount of the excess, as determined at the end of the calendar year in

which the contributions are made, shall be paid from the pension fund to the supplementary

account no later than the last day of February in the immediately following calendar

year.

5. Subsection 18(2) of the Act is repealed.

Section 18.1 of the Act is repealed.

Section 26 of the Act is repealed and the

following substituted:

Pension payments

(1) A

pension payable under this Act shall be paid according to the following:

(

a) a pension calculated under subsection 18(1) relating

to service accrued prior to September 1, 1991 shall be paid

from the pension fund;

(

b) a pension calculated under subsection 18(1),

relating to service accrued on and after September 1, 1991, not exceeding the maximum

annual allowable registered pension permitted under the Income Tax Act (Canada) shall be paid from the pension fund; and

(

c) a portion of a pension calculated under subsection

18(1), relating to service accrued on and after September 1, 1991, that exceeds

the maximum annual allowable registered pension permitted under the Income Tax Act (Canada) shall be paid

from the supplementary account.

(2) Benefits payable under sections 23, 23.1 and

24 and a return of contributions, commuted value or other lump sum payment in respect

of an entitlement under this Act shall be paid from the pension fund and the supplementary

account on the same basis and in the same proportion as a pension payment under

subsection (1).

(3) Where there are insufficient funds in the supplementary

account to meet the obligations referred to in this section, there shall be

paid from Consolidated Revenue Fund to the supplementary account sufficient

money necessary to cover the deficit.

8. The Act is amended by adding immediately after

section 26 the following:

Subsections apply

notwithstanding

26.1 Subsections

5(6), 6(4.1) and 26(1) and (2) apply notwithstanding another provision of this

Act or another Act.

TEACHERS' PENSIONS ACT

SNL1991 c17

as amended

9. Subsection 2(1) of the Teachers' Pensions Act is amended by adding immediately after

paragraph (

m) the following:

(m.1) "supplementary account" means the

Teachers' Supplementary Plan Account established under subsection 5(2);

Section 5 of the Act is amended by renumbering

it as subsection 5(1) and by adding immediately after that

subsection the following:

(2) The Teachers' Supplementary Plan Account is

established in the Consolidated Revenue Fund.

11. Subsection 6(3) of the Act is repealed and the

following substituted:

(3) Where the amount of contributions made under

subsection (2) exceeds the amount of the annual deductible contributions to a

registered plan permitted under the Income

Tax Act (Canada), the amount of the excess, as determined at the end of the

calendar year in which the contributions are made, shall be paid from the

pension fund to the supplementary account no later than the last day of

February in the immediately following calendar year.

12. (1) Subsection 8(1) of the Act is amended by

striking out the words and comma "Subject to the requirements of the Income Tax Act ( Canada ),

the" and substituting the word "The".

(2) Section 8 of the Act is amended by adding

immediately after subsection (1) the following:

(1.1) Where the amount of government contributions under

subsection (1) exceeds the amount of the annual deductible contributions to a

registered plan permitted under the Income

Tax Act (Canada), the amount of the excess, as determined at the end of the

calendar year in which the contributions are made, shall be paid from the pension

fund to the supplementary account no later than the last day of February of the

immediately following calendar year.

13. Subsection 22(5) of the Act is repealed.

Section 30 of the Act repealed and the

following substituted:

Pension payments

(1) A

pension payable under this Act shall be paid according to the following:

(

a) a pension calculated under

section 22, not

exceeding the maximum annual allowable registered pension permitted under the Income Tax Act (Canada), shall be paid from

the pension fund; and

(

b) a portion of the pension calculated under

section 22 that exceeds the maximum annual allowable registered pension

permitted under the Income Tax Act ( Canada )

shall be paid from the supplementary account.

(2) Benefits payable under sections 26, 27, 27.1

and 28 and a return of contributions, commuted value or other lump sum payment

in respect of an entitlement under this Act shall be paid from the pension fund

and the supplementary account on the same basis and in the same proportions as

a pension payment under subsection (1).

(3) Where there are insufficient funds in the

supplementary account to meet the obligations referred to in this section, there

shall be paid from the Consolidated Revenue Fund to the supplementary account

sufficient money necessary to cover the deficit.

15. The Act is amended by adding immediately after

section 30 the following:

Subsections apply

notwithstanding

30.1 Subsections

6(3), 8(1.1) and 30(1) and (2) apply notwithstanding another provision of this

Act or another Act.

Earl G. Tucker, Queen's Printer