First

Session, 47th General Assembly

Elizabeth II, 2012

BILL 52

AN ACT TO AMEND THE

TEACHERS

PENSIONS 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 Teachers Pensions Act to provide for

consistency with certain provisions of the Pension

Benefits Act , 1997 and the Income Tax Act ( Canada ).

The Bill would also enact a number of

housekeeping changes to the Act including repealing lapsed provisions of the

Act.

The Bill would amend the Act to

allow a terminating teacher who

is eligible for a deferred pension to elect to receive the commuted value of

the pension as determined at the date of election;

allow a terminating vested

teacher who has reached 55 years of age to elect to take an actuarially reduced

pension; and

provide that effective

September 1, 1998, the survivor benefit payable to the surviving principal

beneficiary of a deceased teacher will be based on the lifetime pension plus

the bridge benefit until such time as the deceased teacher would have reached

age 65.

A BILL

AN ACT TO AMEND THE TEACHERS'

PENSIONS ACT

Analysis

1. S.2

Amdt.

Interpretation

2. S.6

Amdt.

Contributions by teachers

S.8 Amdt.

Government contributions

S.8.1 Rep.

Government payments

S.9 Amdt.

Repayment of contributions

S.9.1 Amdt.

Election upon termination

S.10 R&S

Purchase of prior teaching service

S.11 Amdt.

Purchase of prior substitute teaching service

S.12 R&S

Purchase of service with related plans

12.1 Amdt.

Strike and lockout

S.13 Amdt.

Purchase of leave without pay

S.16.1 Amdt.

Transfer

S.20 Amdt.

Early retirement

S.22 Amdt.

Calculation of pension

S.26 R&S

Survivor benefits

S.27 Amdt.

Designated beneficiary

S.27.1 Amdt.

Death of employee

S.28.1 Rep.

Transitional

S.31 R&S

Pension shall not be assigned or attached

S.32 Rep.

Attachment

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL1991 c17

as amended

1. Subsection 2(1) of the Teachers Pensions Act is amended by

deleting the word "and" at the end of paragraph (q.1), by deleting

the period at the end of paragraph (

r) and substituting a semi-colon and the

word "and" and by adding immediately after that paragraph the following:

(s) "YMPE" means the year's maximum

pensionable earnings as defined under the Canada Pension Plan.

2. Subsection 6(4) of the Act is amended by deleting

the words "together with interest at the prescribed rate".

3. (1) Subsection 8(2) of the Act is amended

by deleting the words "with interest at the prescribed rate".

(2) Subsections 8(3) and (3.1) of the Act are repealed.

(3) Subsection 8(4) of the Act is amended by deleting

the words "is reduced under this Act" and substituting the words

"was reduced under this Act between the period of April 1, 1993 and March

31, 1996".

Section 8.1 of the Act is repealed.

5. Subsections 9(3), (4) and (5) of the Act are

repealed.

(1) Subsection 9.1(1) of the Act is

repealed and the following substituted:

Election upon

termination

9.1

(1) A

terminating teacher with at least 5 years of pensionable service who is

ineligible for an immediate, unreduced pension, may elect, within 180 days

after termination,

(

a) a transfer of the commuted value of the

pension entitlement of the teacher, in accordance with paragraph 40(1)(

a) of

the Pension Benefits Act, 1997;

(

b) a deferred pension in accordance with

section

21; or

(

c) a return of the contributions made by the

teacher, with interest at a rate prescribed, for periods of pensionable service

credited

(

i) before January 1, 1987, and

(ii) before January 1, 1997, where the teacher had

less than 10 years of pensionable service and is less than 45 years of age,

and a transfer of the commuted value of the

teacher's pension entitlement based on the remaining periods of pensionable

service under paragraph (a).

(2) Subsection 9.1(3) of the Act is repealed and

the following substituted:

(3) A teacher who elects or is considered to have

elected to receive a deferred pension may revoke that election and elect a

transfer under paragraph (1)(a), calculated at the date of the election.

(3) Subsection 9.1(9) of the Act is repealed.

Section 10 of the Act is repealed and the

following substituted:

Purchase of prior

teaching service

(1) Where

a former teacher ceased to be employed and received a termination benefit and later

becomes a teacher, that teacher may be credited with the prior pensionable

service that he or she may elect to purchase in accordance with the terms and

conditions that may be prescribed.

(2) Where a teacher to whom subsection (1) applies

transferred his or her termination benefit to a registered retirement savings

plan, a deferred profit sharing plan or a registered pension plan, payment by

that teacher for the purchase of prior pensionable service shall include a

transfer of the funds remaining in the registered retirement savings plan, the

deferred profit sharing plan or the registered pension plan from the amount

originally transferred.

(3) Where a former teacher who ceased to be

employed and has not received a termination benefit later becomes a teacher,

that teacher shall be credited with all pensionable service that accrued

immediately before the teacher's termination.

(4) Where a teacher

(

a) continued in employment after reaching normal

retirement age before May 26, 2007;

(

b) continues to be employed as a teacher on and

after May 26, 2007; and

(

c) did not receive a pension upon reaching normal

retirement age,

he or she may be credited with the pensionable

service in respect of the period of service beyond normal retirement age that

he or she may elect to purchase in accordance with prescribed terms and

conditions.

(5) For the purpose of subsection (1), periods of

pensionable service may be credited where that service qualifies as a period of

eligible service under the Income Tax Act

( Canada ).

Section 11 of the Act is amended by adding

immediately after subsection (3) the following:

(4) For the purpose of this section, periods of

pensionable service may be credited where that service qualifies as a period of

eligible service under the Income Tax Act

( Canada ).

Section 12 of the Act is repealed and the

following substituted:

Purchase of

service with related plans

(1) Where

a teacher was formerly covered under a pension plan established or continued under

(

a) The Public

Service (Pensions) Act ;

(

b) The Civil

Service Act ;

(

c) The Members

of the House of Assembly (Retiring Allowances) Act ;

(

d) The Memorial University (Pensions) Act ;

(

e) The Uniformed

Services Pensions Act ; or

(

f) an Act replaced by

an Act referred to in

paragraphs (

a) to (

e) and has received a termination benefit

under that pension plan, the teacher shall be credited with the pensionable

service recognized by those pension plans that he or she may elect to purchase

upon paying contributions that may be prescribed.

(2) Where a teacher was covered under a pension

plan listed in subsection (1) and

(

a) the contributions were payable and not paid in

respect of service under that plan; or

(

b) the teacher was employed on a full-time basis

but was not eligible for membership in the pension plan or was precluded from

membership due to administrative error,

the teacher may, upon paying contributions

that may be prescribed, be credited with the pensionable service recognized by

that pension plan that he or she may elect to purchase.

(3) Where a teacher who was employed on a full

time basis

(

a) is an employee of an employer to which the Public Service Pensions Act, 1991 applies;

and

(

b) the service was performed before that Act was

made applicable to the employer,

the teacher may, upon paying contributions

that may be prescribed, be credited with the pensionable service recognized by

that pension plan that he or she may elect to purchase provided that the

teacher was not covered by a pension plan of the employer during that period.

(4) For the purpose of this section, periods of

pensionable service may be credited where that service qualifies as a period of

eligible service under the Income Tax Act

( Canada ).

10. Subsection 12.1(2) of the Act is repealed.

11. (1) Subsection 13(4) of the Act is amended

by deleting the reference "subsections

(2), (6) and (7)" and substituting the reference "subsection

(2)".

(2) Section 13 of the Act is amended by repealing

subsections (6) and (7).

(3) Section 13 of the Act is amended by adding

immediately after subsection (8) the following:

(9) Pensionable service credited under this

section shall be limited to a cumulative maximum of 5 years in respect of periods

of unpaid leave of absence or periods of reduced pay plus an additional 3 years

in respect of periods of parenting and shall be subject to the limits on prescribed

compensation set out in the regulations under the Income Tax Act (Canada).

12. Subsection 16.1(2) of the Act is repealed and

the following substituted:

(2) Subsection (1) applies where the teacher

(

a) has terminated his or her membership in the

exporting pension plan;

(

b) has not received a termination benefit from

the exporting pension plan; and

(

c) is entitled to transfer his or her full

entitlement from the exporting pension plan.

Section 20 of the Act is amended by adding

immediately after subsection (1) the following:

(1.1) A teacher who has reached early retirement age

and has been credited with not less than 5 years of pensionable service may

elect to retire and receive an actuarially reduced pension.

(1.2) For the purpose of subsection (1.1), an

actuarially reduced pension refers to a pension that has been reduced by an

amount determined by the actuary that reflects the fact that the pension is

being paid from a date that is earlier than the date the teacher, based on his

or her service, would be eligible for an unreduced pension.

(1) Section 22 of the Act is amended by deleting

the words "year's maximum pensionable earnings" wherever they occur

and substituting "YMPE".

(2) Subsection 22(6.2) of the Act is repealed.

Section 26 of the Act is repealed and the

following substituted:

Survivor benefits

(1) A

surviving principal beneficiary of

(

a) a pensioner;

(

b) a deferred pensioner; or

(

c) a teacher with at least 5 years pensionable

service

is entitled upon the death of the

pensioner, deferred pensioner or teacher to a survivor benefit equal to 60% of

the pension entitlement of the pensioner, deferred pensioner or teacher.

(2) Where the pension entitlement of the

pensioner, deferred pensioner or teacher on his or her death includes the

bridge benefit determined under subsection 22(1.1), the bridge benefit shall

continue until the last day of the month in which the deceased pensioner, deferred

pensioner or teacher would have reached the age of 65 years and the survivor

benefit shall be adjusted accordingly.

(3) The survivor benefit shall be paid to the

surviving principal beneficiary for life and shall commence on the first day of

the month following the month in which the pensioner or teacher dies.

(4) Where a surviving principal beneficiary dies

while in receipt of a survivor benefit, the survivor benefit shall be paid to

or for the benefit of any surviving children of the teacher, pensioner or

deferred pensioner, while they are under the age of 18 years, or under the age

of 24 years while they are in full-time attendance at a recognized school or

post-secondary institution.

(5) Where a pensioner referred to in subsection

(1) dies leaving no surviving principal beneficiary, the survivor benefit shall

be paid to or for the benefit of his or her surviving children, while they are

under the age of 18 years, or under the age of 24 years while they are in

full-time attendance at a recognized school or post-secondary institution.

(6) Subsection (2) is considered to have come into

force on September 1, 1998.

16. Subsection 27(5) of the Act is repealed and

the following substituted:

(5) For the purpose of this section, a dependant

of a teacher, pensioner or deferred pensioner at the time of the death of the

teacher, pensioner or deferred pensioner means a parent, grandparent, brother,

sister, child or grandchild of the teacher, pensioner or deferred pensioner

who, at that time, is, by reason of mental or physical infirmity, dependent on

the teacher, pensioner or deferred pensioner for support.

17. Subsection 27.1(2) of the Act is amended by

deleting the phrase "and subsections 9(3), (4) and (5) apply to the

transfer".

Section 28.1 of the Act is repealed.

Section 31 of the Act is repealed and the

following substituted:

Pension shall not

be assigned or attached

31. A

pension awarded under this Act shall not be assigned, charged, attached,

anticipated or given as security and is exempt from execution, seizure or

attachment, and a transaction purporting to assign, charge, attach, anticipate

or give as security such money is void, except in accordance with the Pension Benefits Act, 1997 .

Section 32 of the Act is repealed.

Queen's

Printer