Bill 41 (Legislature 17, Session 2)

L17 S2 5175

Alberta — Bills

1973 Bill 41 neer Second Session, 17th Legislature, 21 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 41 The Public Service Pension Amendment Act, 1973 HONOURABLE DR. HOHOL First Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Second Reading . Third Reading. . Printed by QUEEN'S PRINTER for the Province of Alberta, EDMONTON

Bill 41 BILL 41 1973 THE PUBUC SERVICE PEN!HONAMEND'MENT ACT, 1973 (Assented to , 1973) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1. The Public Service Pension Act is hereby amended.

Section 2 is amended (

a) as to clause (b) (

i) by adding the word "and" at the end of sub clause (i), (ii) by striking out subclause (ii), (iii) by striking out, the figure. "55" and by sub stituting the figure "60", (

b) by striking out clause (

d) and by subst.ituting the following clause: (d) "salary" means the gross rate of an employee's ordinary salary or wages and includes cost of living bonuses and remuneration appr'Oved by the Board, but does not include moneys paid in lieu of holidays or moneys paid for other types of bonuses, or for travelling expenses, subsistence allowances, overtime pay 'Or hono rariums; (

c) as to clause (e) (

i) by striking out subclause (

i) and by substitut ing the following: (

i) service in the Canadian or allied forces, or in a merchant navy serving the Cana dian or allied cause, during World War II 'Or the Korean War, (ii) by striking out the word "and" at the end of subclause (ii) , by adding the word ", and" at the end of subclause (iii) and by adding the following subclause after subclause (iii): (iv) service as a member of the Parliament of Canada; (

d) by adding the following clause after clause (e): (f) "married woman" means a woman who is legally married and lis not legally separated.

Expianal0iY Notes 1. This Bill will amend

chapter 299 of the Revised Statutes of Alberta 1'970.

Section 2, clauses (b), (

d) and (

e) presently read: (b) "employee" means (

i) any person employed on a full time continuous' basis for a minimum average of 30 hours per week throughout each year by the Government or the Legislative Assembly, (it) any married women emp.Loyed on a full time continuous basis for a minimum average of 30 hours per week throughout each year by the Go'Vernment or the Legisla;tive Assembly who has applied within the period des.ignated by the Board to be in cluded in the operation lof this Act, and (iai) any person ,empIoyed each yea,r by the Government on a seasonal basis and included in the operation of this Act by order of the Board, who was less than 55 years of age at the commencement of his service; (d) "salary" means the gross rate of an employee's ordinary salary or wages including cost-of-living bonus, but does not include moneys paid in lieu of holidays, or for travelling expenses, sub sistence allowances, honorariums, fees', sales of transcripts, over time pay, or any other moneys paid in a;ddition to his ordinary salary or wage,s; (e) "service" means any period or periods during which a person is or has been empl'oyed prior to the age of 65 years' by the Govern ment or the Legislative Assembly or any body which is a party to a reciprocal agreement pursuant to

section 35 or by any public body approved by the Board and includ·es any period of (

i) service in the BrUish or Allied Armed Forces during World War II or the Ko'rean War, (ii) authorized leave ,of absence with or without pay subject to the conditions prescribed by the Board, and (iii) service as a member of the Legislative Assembly or Ex ecutive Council.

Section 3 is struck out and the following

section is substituted: 3. ( 1 ) This Act shall be administered by a board to be knQwn as the Public Service PensiQn Board which shall cQnsist 'Of (

a) the chief executive 'Officer 'Of the Public Service Pension AdministratiQn, who shall be chairman, and (

b) nQt less than fQur 'Other members to he appointed by the Lieutenant GQvernQr in Council, (i) 'One 'Of whom shall be nominated by The Civil Service Association of Alberta, and (ii) one of whom shall be designated as vice chairman of the Board.

(2) The vice-chairman shall act as chairman when the 'Office of chairman is vacant or where the chairman is absent or unable to act.

Section 4 is struck out and the following

section is substituted: 4.

(1) There shall be a division of the Public Service of the Province called the Public Service Pension Administra tion.

(2) In accordance with The Public Service Act there may be employed such persons as are required for the pur poses of carrying out the business and affairs of the Public Service Pension Administration.

Section 5 is amended (

a) as to subsection (2), clause. (

a) by striking out the figure "55" and by substituting the figure "60", (

b) as to subsection (2) by striking out the word "or" at the end of clause (

c) and by striking out clause (d).

Section 7 is amended (

a) as to subsection (2) by adding after the word "em ployee's" the words "'Or former employee's", (

b) as to subsection (2), clause (

b) by striking out the word "employee" and by substituting the wotrds "former employee" , (

c) as to subsection (2) by striking out the word "or" at the end of clause (

c) and by striking out clause (d). 2

a. Board is restructured.

Section 3 presently reads: 3. This Act shall be administered by a hoard of not more. than fiv.e persons who shall be appointed by the Lieutenant Governor In CounCIl and be known as the Public Service Pension Board, and one of whom shall be nominated by The Civil Service Association of Alberta. 4. Consequential rto 3. Seetion 4 presently reads: 4. In aCClordance with The Public Service Act there may be appointed a chief executive officer of the Board and such clerks or other assist ants necessary for the administration of this Act. s. Consequential to amendment 2(b').

Section 5(2) presently reads:

(2) No contributions may be made under subsection (1) (

a) by an empIoyee who has attained the age ,of 55 years prior to the commencement of his service, or (

b) after the employee has attained the age of 65 years, O'r (

c) after the employee has made contributions for a total period of 35 years, O'r (

d) by a married woman unles's she a.pplies to dO' so within the period designated by the Board. G.

Section 7 (2) presently reads:

(2) The interest shall continue to' be credited to' an employee's account until the end of the calendar month immediately preceding (

a) the date when payment is made in full to the employee pursuant to

section 25, or (

b) the date the emp.}oyee bec·omes entitled to deferred pension pay ments pursuant to

section 26, or (0) the date of death of an employee whose beneficiary is' entitled to' benefits pursuant to sectiO'n 28, or (

d) the date of termination lof employment O'f an employee entitled to benefits pursuant to'

section 47. 2

Section 10 is struck out and the following

section is substituted: 10. An employee who has atta1ined the age of 55 years may retire at any time pri'Or to attaining the age of 65 years if at that time the sum of his attained age and pen sionable service, calculated in each case toO the nearest com plete month, equals not less than 85 years.

Section 11 is amended (

a) as to subsecUon (1) by striking out the figure "10" and by substitut?:ng the word '''five'', (

b) by adding the following subsection after subse,c tion (2):

(3) FoOr the purpos'es 'Of sections 17, 18 and 26, normal retirement age means the minimum age the employee would have had to attain under sec tjon 10 to have been eligible for an unreduced pen sion, with such age expressed in years and months and then rounded to the nearest complete year.

Section 14 is amended (

a) as to subsection (1) (

i) in clauses (

d) and (

e) by striking out the words "British 'Or AUied Armed Forces" and by substituting the words "Canadian or allied forces, or in a merchant navy serving the Cana dian or allied cause,", (ii) in clause8 (

j) and (

k) by striking out the word "employee" and by substituting the word "per son", (iii) by striking out the word "and" at the end of clause (

j) and by adding the word ", and" at the end of clause (k), (iv) by adding the following clause after clause (k): (1) any period of service as a member of the Parliament of Canada, if the person pays into the General Revenue Fund at the rate and 'On the terms that the B'Oard directs, contrIbutions 'On the rate of remuneration paid toO him by the Government of Canada during that service, together with interest at the rate pres'Cribed by the Board that would have accumulated thereon, had an account been maintained in respect of him, to the date 'Of completion 'Of payment in full. (

b) as to subsection (6), clause (

b) by striking out the word "employee" and by substituting the word "person" , 3

1. Retirement age.

Section 10 presently reads: 10.

(1) An employee whose pensionable s~rvice is not less than 25 yearS may retire at any time after he has attamed the age of 60 years.

(2) An employee whose pensionable service is not less than 35 years may retire at any time ,after he has attained the age of 55 years. 8. Reduces ves,ting period.

Section 11 (1) presently reads: 11.

(1) The Board may authorize the retirement of an employee whose pensionable ,service has not been less than 10 years, and (

a) whO' has attained the age of 55 years, or (

b) who f~om mental or physical disability or other cause has become incapable of effectively performing his regular duties. 9. Recognttion of fact that many Canadians served in Merchant Navy and in the Canadian rather than British Armed Forces. Includes members of Parliament. Provides for those married women who have not been participants.

Section }4(1) (

d) and (

e) and (7) presently read: 14.

(1) For the purposes of this Act, pensionable service shall be deemed to include (

d) in the case of a person at the time of his enlistment (

i) who was in the employ of the Government, or (ii) who was in the empl'o,yment of the Legislative Assembly, or (iii) who was in the employment of a public body with whom there is a reciprocal agreement and regardles's of his status under the provisi,ons of The Al berta Civil Servants War Service Act, any period of absence on account of service in the British or Allied Forces during World War II or the Korean War, which shall be deemed to be pension able service if he pays into the General Revenue Fund an amount equal to that which has been contributed under The Alberta Civil Servants War Service Act by the Government in respect of him during such period of absence, or would have so contributed had he been entitled to the benefits provided by that Act, but if he does not pay such amount, then one-half of that period of absence prior DO the first day of April, 1947, shall be deemed to be pens'ionable service, (

e) in the case of a person who' at the time of his enlistment was not empl0,yed by the Government, the Legislative Assembly or a party to a reciprocal agreement pursuant to

section 35, any pe,riod of service in the British or Allied Forces dUring vVorld War II or the Korean War, (!) if the date he was employed by the Government. the Legis lative Assembly or a party to a reciprocal ~greement pur suant to sectiton 35 was within six months of the date of his discharge from military service, except in a case where cir cumstances in the opinion of the Board warrant an extension of the period O'f time referred ,to, and (ii) if he pays into the General Revenue Fund, in such manner and on such terms as the Board may direct, a sum equal to 10 per ce,nt of the amount 'of his annual salary when such employment commenced f,ollowin.g dis?har&"e., calculat~d as if he had received the salary durmg hIS mIlItary serVIce, to gether with interest thereon from the date of his enlistment to the date that payment of the amount is completed,

(7) Notwithstanding subsection (1) and subject to the approval of ,the Board, any period of service that is recognized for per:sion purpo~es under any other pension plan may be deemed to be p~nslOnable servIce upon such terms and conditions as the Board may dIrect. 3

(

c) by striking out subsection (7) and by substituting the following subsecUon:

(7) N'Otwithstanding subsecti'On (1), any peri'Od 'Of s'ervice that is rec'Ognized f'Or pensi'On purp'Oses under any 'Other pensi'On plan may n'Ot be c'Ounted as pensi'Onable service unless the B'Oard 'Otherwise 'Orders and then 'Only UP'On such terms and c'Ondi ti'Ons as the B'Oard may direct. (

d) by adding the following subsect.ion after subsectio'n (7):

(8) N'Otwithstanding subsecti'On (1), dn the case 'Of a married w'Oman empl'Oyee, any G'Overnment 'Or Legislative Assembly service pri'Or to April 1, 1973 shall be deemed t'O be pensi'Onable service if pay ment is made int'O the General R'evenue Fund, at the rate and 'On the terms that the Board directs, 'Of o'Ontributi'Ons 'On the salary paiid t'O her by the G'Overnment during that service, t'Ogether with interest that W'Ould have accumulated there'On, had an a0C'OUnt been maintained in respect 'Of her, t'O the date 'Of completion 'Of payment in full.

Section 15 is amended by striking out the words "if he pays" and by substituting the words "if payment is made".

Section 16 is amended by striking out the words "10 years" a.nd by substituting the words "five years".

Section 17 is amended (

a) by striking out subsection (1) and by substituting the follOWing subsection: 17.

(1) Where retirement is authorized under secti'On 11, suhs'ecti'On (1), clause (b), on acc'Ount 'Of an illness or disabiility that does not wholly disable the empl'Oyee fr'Omentering any gainful empl'Oy ment, the B'Oard may grant such empl'Oyee a pen sion, which shall be the actuarial equivalent at his age of retirement 'Of the normal pensi'On that W'Ould have been payable to him had he then attained n'Ormal retirement age pursuant to s'ection 11, sub section (3), as determined by the a;ctuarial tables approved by the Board for that purp'Ose. (

b) as to subsection (3) by striking out the words "the age 'Of 65 years" and by substituting the words "n'Ormal retirement age pursuant t'O secti'On 11, sub secti'On (3)". 4

10. Secrt:ion 15 presently reads: 15. Where an emp~o,yee has resigned or has been dismissed at any time during his service and has thereafJter been re-employed by the Government or the Legislative Assembly, his' service prior to his resigna tion or dismissal shall be deemed to' be pensionable service if he pays into the General Revenue Fund in such manner and on such terms as the Board may direct any sum paid to the emplQyee under The Super annuation Act or this Act at the time of his resignatilOn O'r dismissal together with interest thereon from the date a refund of contributions was made to the date of completion of such payment in full. II.

Section :16 presently reads: 16. Subject ,to the pl'ovisiens IOf sectiens 17 and 18, any employee whO' retires pursuant to s·ecUon 9, 10 or 11 and whose pensionable service has not been less than 10 years is entitled upon his retirement to' re ceive from the General Revenue Fund in mQnthly payments' a normal pension as specified in sectien 20 or, at his IOptiO'n, an alternative pen ston of ene of the types specified in

section 21. 12. Changes actuarial reduction for early retirement.

Section 17 (1) and (3) presently read: 17.

(1) Where an emplQyee whose pensionable service h3!s not been les's than 10 years is retired from the servlce on account of an inness or disability that ruo'es not wholly dLsable the emplo'yee from entering any gai,nful employment, the Board may grant such employee a pension, which shall be the actuarial equivalent at his age Qf retirement of the normal pension that would have been payable to' him were his age then 65, as determined by the actuarial tables which may be appreved by the Beard for this purpose.

(3) Where a persen has' been granted a tetal disability pensioOn in an amQunt determined under

section 20 Qr at his eption an alternative pension of ene ef the types specified in secUen 21, the Bo.ard may from time to time require the person to submit medical evidence IQof his con tinuing tetal disability, and if at any time prior to his attaining the age of 65 years the Board finds that he is no. longer wholly incapable o.f gainful employment, his pensien may be actuarially reduced as pro vided by subsection (1). 4

Section 18, subsection (1), clause (

b) is amended by striking out the words "were his age Ithen 65" and by sub stituting the. words "had he then attained normal retire ment age pursuant to

section 11, subsection (3),".

Section 19 is struck out.

Section 21 is amended by strriking out the words "sec tions 16 and 18" and by substituting the words "this Act".

Section 25 is amended by renumbering the se.ction as subsection (1) and by adding the foillowing subsection after the renumbered subsection (1):

(2) Where a marri'ed woman, employed by a body de scribed in

section 36 or 37, has accumulated a period of not more than five years of pensionable service and resigns or is dismissed and elects to receive a return of her contribu Hons, the employer contributions paid by the employer dur ing that period shall then be refunded to the respective employer upon written applicati'On and submission of any pertinent facts that the Board may require.

Section 26 is ame.nded (

a) as tol subsection (1), clause (

b) by striking out the figure "10" and by substituting the word "five", (

b) as to subsection (2), clause (

a) by striking out the ward "or" and by substituting the words "but that amount shall not exceed an amount that is equal to the aceumulated contributions that were made at the rate set pursuant to sections 5 and 40 and interest, or", (

c) by striking out subsection (6) and by substituting the following subsections:

(6) Notwithstanding subsections (2) and (4), wher'e a former employee has attained the age of 55 years he may be paid a deferred pension com mencing at any time prior to the age of 65 years if at that tim'e the sum of his attained age and pensionable serv,ice, calculated in each case to the nearest complete month, equals not less than 85 years.

(6.1) Where a form'er employee has attained the age 'Of 55 years and is not entitled to a normal pen sion because of his age and pensionable service, he may be granted a deferred pension which shall be the aetuarial equivalent, at his age on the effec tive date he aprpllied to receive such pensi'On, 'Of the normal pension that would have 'Otherwise been 5

13. Changes actuarial reduction for early retirement.

Section 18(1) (

b) presently reads: 18.

(1) Where a retirement is authorized under secti,on 11. subsection (1). clause (a). the Board may determine on its juc;lgment of ~e merits of the case whether in the circumstances the penSIOn to be paId to the employee is to be (

b) in an amount that is the actuarial equivalent at the employee's age of retirement of the normal pens.ion that would have been payable to. the employee were his age then 65 as determined by actuarial tables, which may be approved by the Board for the purpose. 14. Actuarial reduction for early retiremenJt is now covered by other sections.

Section 1:9 presently reads: 19. Notwithstanding sections 17 and 18, where a person is retired from the s'ervice before he attains (

a) the age of 60 y.ears and his pensionable service is not less than 25 years, the actuarial equivalent of the n.ormal pension shall be computed at the person's age of retirement orf the pension that would have been payable to him were his age then 60, or (

b) the age of 55 years and his pensi.onable service is not less than 35 years, the actuarial equivalent of the normal p,es.ion shall be computed at the person's age of retirement of the pension that would have been payable to him were his age then 55, as determined by the actuarial tables appl"lO'Ve,d by the Board for that purpose.

Section 21 presently reads in part: 21. The alternative pensions referred to in sections' 16 and 18 shall be of an actuarial value equivalent in each case to that .of the normal pen sion provided for by secti.on 20, and the alte,rnative pensions shall be of the following types: 16. Refund of employer contributions involving married women employees.

Section 2'5 presently reads: 25.

When an employee, be1lore he be,comes entitled to receive a pen sion under this Ac,t. resigns or is dismissed, and if he elects to receive a return of his contributions, the amount standing to his credit in the reoords Df the BDard, including the accrued interest credited on his cDntributions under this Act and s,tatutory deductions under The Super annuaUo,n A,ct, shall be paid to him, except in the case of an employee whO' at the time of his resignati<Dn or dismissal has, made contributions pursuant to this Act with respect to a period of service of less than one yeax, in which cas'e he shall receive no interest. 17.

Reduces ves,ting period, provides for ea'rlier retirement, chang.es actuarial reduction and limits "like amount" rto normal contributions.

Section 26 (1) (ib) and (2;) (

a) and (

b) presently read: 26.

(1) ThIs

section applies to any person who resigns ,or is discharged from the service of the GDvernment, the Legislative Assembly or a unive~sity under The UniversHies Act, or from the service oJ any of the employers referred to in

section 37 and who (

b) had been a contributor for a period of not less than 10 years, but who was nDt elig',ible upon the termination of his services to receive a pensiDn pursuant to' this Act.

(2) Where an employee is' dis'charged because of the abolition of the position he was employed in, he is entitled to receive at his option (

a) the amount standing to his credit in the records of the Board as provided by

section 25, together wHh a like amount from the General Revenue Fund, or (

b) a deferred pe,nsion, as provided in this section, at the age (l,f 65 years' but may be granted a pension at any time after he attains the age of 60 years. 5

payable had he then attained normal retirement age pursuant to

section 11, subsection (3), as deter mined by actuarial tables approved by the Board for that purpose.

Section 28 is amended (

a) by striking out subsection (3) and by substituting the following:

(3) Where the beneficiary of a deceased em ployee, or a deceased former employee who had elected to receive a deferred !pension, is (

a) the surviving spouse of that employee or rormeremployee, or (

b) a dependent child under the age of 18 years, the beneficiary is also entitled to reC'eive a further sum equal to the amount standing to the credit of the account of the deceased, but that sum shall not exceed an amount that ,is equal ,to the accumulated contributions that were made at the rates set pur suant to sections 5 and 40 and interest. (

b) as to subsection (4) (

i) by striking out the figure "10" and by sub stituting the word "five", (ii) by striking out the words "widow or her de pendent widower" and by substituting the word ",spouse", (iii) in clause (

a) by striking out the word "wife" and by substituUng the word "spouse", (

c) by adding the following subsection after subsection (4) :

(5) Where a surviving spouse elects to be paid a pension pursuant to subsection (4) and the deceased employee had accumulated other service that could be recognized as pensionable service under this Act if contributions had been paid, the surviving spouse may be permitted to make the payment of con tributions in respect to that service in order that an increased pension may be granted.

Section 36 is amended by adding the following sub

section after subsection (6):

(7) Where a marr,ied woman who had been ,employed by a University is, subsequent to her resignation or dismissal, re-employed by a University or employed by the Govern ment or the Legislative Assembly, or any body described in

section 37, and pays back the contributions and interest received at the time of her resignation or dismissal pur suant to

section 25, ,the University shall make payments into the General Revenue Fund in an amount and upon such terms and conditions as the Lieutenant Governor in Council may prescribe. 6

Section 28, subsections (3) and (4) presently read:

(3) Where the beneficiary of a deceased employee or a deceased former employee who had elected to' receive a deferred pension is (

a) his widow, or (

b) his' or her dependent child under the age O'f 21 years, or (

c) her dependent widO'wer, the beneficiary is also entitled to receive a further sum equal to' the amount standing to the credit of the account of the deceased.

(4) Where the pensionable service of an employe·e or a f,ormer em ployee 'who had elected to receive a deferred pension, at the date of his death has not been less' than 10 years, and where the beneficiary is his widow or her dependent widower, the beneficiary may elect to be paid in lieu of the payments under subsection (3) (

a) a pension of the same amount as would have been payable if the emp.loyee immediately before his death had retired under the provisions .of

section 11, subsection (1), clause (

b) and had been entitled to exercise and had exercised the option given under

section 21 of receiving a pension during the joint lives of himself and his wife and during the life IOf the survivor, or (

b) a pension payable for life or for a term of years' certain, which ever is the longer, that is an actuarial value equivalent to that of the pension provided for under clause (a). 19. Return of employer refund of contribution in the event of a return Ito employment. 6

Part 2 is struck out. 21. The Public Service Management Pension Act is amended as to

section 3, subsection (1), clause (

a) by strik ing out the words "Public Service Pen:sdon Board" and by substituting the worrds "PubUc Service Pension Admin istration". 22. This Act comes into force on the day upon which it is assented to and upon so coming into force (

a) the provisions of this Act, except

section 2, clause ( c), subclause ( ii) and se.ctio~ 9, clause (a), sub clause (iv) shall be deemed to have been in force at all times on and after April 1, 1973, and (

b) section 2, clause (c), subclause (ii) and

section 9, clause (a), subclause. (iv) shall be deemed to hOJVe been in force at all times on and after July 1, 1971. 7

Part 2, emHled "Short Term Retirement Benefits", is now covered by other provisions in the Act. 21. Consequential.

Section 3(1) (

a) presently reads: 3.

(1) This Act shall be administered by a board -called The Public Service Management Pension Board and consisting of (

a) the chief executive officer of the Public Service Pension Board who shall be chairman of the Board under this Act, and ' 7 Title: 1973 (17th, 2nd) Bill 41, The Public Service Pension Amendment Act, 1973

Document details

Collection	Alberta — Bills
Citation	L17 S2 5175
Type	bill
Volume / chapter	L17 S2 5175
Language	en
Format	json
Source	PROVINCIAL
Identifier	196605baa88e1575e3d1353f87e929d871b4c2a5

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