First Session, 46th

General Assembly

57 Elizabeth II,

BILL 20

AN ACT TO AMEND THE MEMBERS OF THE

HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT, THE PROVINCIAL COURT JUDGES'

PENSION PLAN ACT, THE PUBLIC SERVICE PENSIONS ACT, 1991, THE TEACHERS'

PENSIONS ACT AND THE UNIFORMED SERVICES PENSIONS ACT, 1991

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 Members of the House of Assembly Retiring

Allowances Act, the Provincial Court

Judges' Pension Plan Act, the Public

Service Pensions Act, 1991 , the Teachers'

Pensions Act and the Uniformed

Services Pensions Act, 1991.

In this Bill, the Acts referenced above

would be amended to provide that where a plan member dies before receiving a

pension and without a principal beneficiary, the commuted value of the plan member's

entitlement would be paid to the estate.

The Bill also provides for

transitional arrangements to deal with current circumstances where a plan

member dies before receiving a pension and without a principal beneficiary

after the effective date and a survivor benefit is being paid to eligible

children. These transitional provisions have not been included for the Members of the House of Assembly Retiring

Allowances Act or the Provincial

Court Judges' Pension Plan Act as there are no eligible children in receipt

of any benefits under those plans.

The final clause of the Bill is a

commencement clause. It would make the amendments contained in the Bill

retroactive to the particular dates the pensions Acts were amended to permit

the taking of commuted value on termination or death.

A BILL

AN ACT TO AMEND THE MEMBERS OF THE HOUSE OF

ASSEMBLY RETIRING ALLOWANCES ACT, THE PROVINCIAL COURT JUDGES' PENSION PLAN

ACT, THE PUBLIC SERVICE PENSIONS ACT, 1991, THE TEACHERS' PENSIONS ACT AND THE UNIFORMED

SERVICES PENSIONS ACT, 1991

Analysis

MEMBERS

OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT

S.12 Amdt.

Pre-retirement death

S.13 Amdt.

Registered survivor benefit

S.21 Amdt.

Pre-retirement death

S.22 Amdt.

Supplementary survivor benefit

PROVINCIAL

COURT JUDGES' PENSION PLAN ACT

S.12 Amdt.

Pre-retirement death

S.13 Amdt.

Registered survivor benefit

S.22 Amdt.

Pre-retirement death

S.23 Amdt.

Supplementary survivor benefit

PUBLIC

SERVICE PENSIONS ACT, 1991

S.23 Amdt.

Survivor benefit

S.23.1 Amdt.

Death of employee

S.23.2 Added

Transitional

TEACHERS'

PENSIONS ACT

S.26 Amdt.

Survivor benefits

S.27.1 Amdt.

Death of employee

S.28.1 Added

Transitional

UNIFORMED

SERVICES PENSIONS ACT, 1991

S.24 Amdt.

Survivor benefit

S.24.1 Amdt.

Death of employee

Ss.24.2 Added

Transitional

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING

ALLOWANCES ACT

SNL2005 cM-6.1

as amended

1. (1) Subsection 12(1) of the Members of the House of Assembly Retiring

Allowances Act is amended by adding immediately before the word

"member" the word "vested".

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

the following substituted:

(2) If a vested member dies before receiving a

registered allowance and there is no principal beneficiary entitled to a

survivor benefit under

section 13, the commuted value of the entitlement of the

member under this Part, calculated as of his or her date of death, shall be

paid to the estate of the member.

2. Subsections 13(4) and (5) of the Act are

repealed and the following substituted:

(4) Where a pensioner or vested member referred to

in subsection (1) dies leaving a surviving principal beneficiary who dies after

that pensioner or vested member, 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 25 years while they are in full-time attendance at a

recognized school or post-secondary institution.

(5) Where for any reason a survivor benefit ceases

to be payable, the amount by which the member's contributions, together with

interest to the date the benefit commenced at a rate prescribed by the Minister

of Finance, exceeds all benefits received from the registered plan shall be

paid to the person whose benefit ceased or to that person's estate.

3. (1) Subsection 21(1) of the Act is amended

by adding immediately before the word "member" the word

"vested".

(2) Subsection 21(2) of the Act is repealed and

the following substituted:

(2) If a vested member dies before receiving a

supplementary allowance and there is no principal beneficiary entitled to a

survivor benefit payable under

section 22, the commuted value of the entitlement

of the member, calculated as of his or her date of death, shall be paid to the

estate of the member.

4. Subsection 22(5) of the Act is repealed and the

following substituted:

(5) Where a pensioner or vested member referred to

in subsection (1) dies leaving a surviving principal beneficiary who dies after

that pensioner or vested member, 1/3 of the survivor benefit shall be paid to

or for the benefit of each of his or her surviving children or, where the total

amount payable under this

section would exceed the maximum benefit payable

under this Act, the survivor benefit shall be divided equally among all of the

eligible children.

PROVINCIAL COURT JUDGES' PENSION PLAN ACT

SNL2004 cP-29.1 as

amended

5. (1) Subsection 12(1) of the Provincial Court Judges' Pension Plan Act

is amended by adding immediately before the word "judge" the word

"vested".

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

the following substituted:

(2) If a vested judge dies before receiving a

registered allowance and there is no principal beneficiary entitled to a

survivor benefit under

section 13, the commuted value of the entitlement of the

judge under this Part, calculated as of the date of death, shall be paid to the

estate of the judge.

6. Subsections 13(3) and (4) of the Act are

repealed and the following substituted:

(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 vested judge dies.

(4) Where a pensioner or vested judge referred to

in subsection (1) dies leaving a surviving principal beneficiary who dies after

that pensioner or vested judge, 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 25 years while they are in full-time attendance at a

recognized school or post-secondary institution.

7. (1) Subsection 22(1) of the Act is amended

by adding immediately before the word "judge" the word

"vested".

(2) Subsection 22(2) of the Act is repealed and

the following substituted:

(2) If a vested judge dies before receiving a

supplementary allowance and there is no principal beneficiary entitled to a

survivor benefit under

section 23, the commuted value of the entitlement of the

judge, calculated as of the date of death, shall be paid to the estate of the

judge.

8. Subsection 23(4) of the Act is repealed and the

following substituted:

(4) Where a pensioner or vested judge referred to

in subsection (1) dies leaving a surviving principal beneficiary who dies after

that pensioner or vested judge, 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 25 years while they are in full-time attendance at a

recognized school or post-secondary institution.

PUBLIC SERVICE PENSIONS ACT, 1991

SNL1991 c12

as amended

9. Subsection 23(5) of the Public Service Pensions Act, 1991 is repealed and the following

substituted:

(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.

(1) Subsection 23.1(1) of the Act is

amended by adding immediately after the word "service" the phrase

"or a deferred pensioner".

(2) Subsection 23.1(2) of the Act is repealed and

the following substituted:

(2) Where an employee with at least 5 years of

pensionable service or a deferred pensioner dies before receiving a pension and

there is no principal beneficiary entitled to a survivor benefit under

section 23,

the commuted value of the pension entitlement of the employee or a deferred

pensioner, calculated as of the date of death, shall be transferred to the

employee's or deferred pensioner's estate and subsections 7(2), (3) and

(4) apply to the transfer.

11. The Act is amended by adding immediately after

section 23.1 the following:

Transitional

23.2

(1) A

child who is receiving a survivor benefit when this

section comes into force who

is a child of a deceased employee or deferred pensioner who died without a

principal beneficiary after December 13, 1999 is entitled to

(

a) continue to receive the survivor benefit while

he or she is under the age of 18 years, or under the age of 24 years while in

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

(

b) be paid the commuted value of his or her

entitlement determined at the date of the death of the deceased employee or

deferred pensioner, less any payments already received by the child at the date

of election.

(2) Where the total survivor benefit paid under

subsection (1) is less than the deceased employee's or deferred pensioner's

commuted value at the date of death, the difference in the commuted value and

the total survivor benefit paid shall be paid to the estate of the deceased

employee or deferred pensioner.

(3) Notwithstanding the entitlements referred to in

subsection (1), where a deceased employee or deferred pensioner had more than

one child, the children shall elect jointly and there shall be only one

election for the payment of the entitlements.

(4) Unless an election is made under subsection

(1), a survivor benefit shall be continued as if continuation under paragraph

(1)(

a) had been elected.

TEACHERS' PENSIONS ACT

SNL1991 c17

as amended

12. Subsections 26(2) and (3) of the Teachers' Pensions Act are repealed and

the following substituted:

(2) 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 employee, 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.

(3) 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.

Subsection 27.1(2) of the Act is

repealed and the following substituted:

(2) Where a teacher with at least 5 years of

pensionable service or a deferred pensioner dies before receiving a pension and

there is no principal beneficiary entitled to a survivor benefit under

section

26, the commuted value of the pension entitlement of the teacher or the deferred

pensioner, calculated as of the date of death, shall be transferred to the

teacher's or deferred pensioner's estate and subsections 9(3), (4) and (5) apply

to the transfer.

14. The Act is amended by adding immediately after

section 28 the following:

Transitional

28.1

(1) A

child who is receiving a survivor benefit when this

section comes into force who

is a child of a deceased teacher or deferred pensioner who died without a

principal beneficiary after December 12, 2005 is entitled to

(

a) continue to receive the survivor benefit while

he or she is under the age of 18 years, or under the age of 24 years while in

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

(

b) be paid the commuted value of his or her

entitlement determined at the date of the death of the deceased teacher or deferred

pensioner, less any payments already received by the child at the date of election.

(2) Where the total survivor benefit paid under

subsection (1) is less than the deceased teacher's or deferred pensioner's

commuted value at the date of death, the difference in the commuted value and

the total survivor benefit paid shall be paid to the estate of the deceased

teacher or deferred pensioner.

(3) Notwithstanding the entitlements referred to in

subsection (1), where the deceased teacher or deferred pensioner had more than

one child, the children shall elect jointly and there shall be only one

election for payment of the entitlement.

(4) Unless an election is made under subsection

(1), a survivor benefit shall be continued as if continuation under paragraph

(1)(

a) had been elected.

UNIFORMED SERVICES PENSIONS ACT, 1991

SNL1991 c19

as amended

15. Subsection 24(5) of the Uniformed Services Pensions Act, 1991 is amended by deleting the

comma immediately after the word "pensioner" the first time it occurs

and by deleting the phrase "deferred pensioner or employee".

(1) Subsection 24.1(1) of the Act is

amended by adding immediately after the word "employee" the phrase

"with at least 5 years of pensionable service".

(2) Subsection 24.1(2) of the Act is repealed and

the following substituted:

(2) Where an employee with at least 5 years of

pensionable service or a deferred pensioner dies before receiving a pension and

there is no principal beneficiary entitled to a survivor benefit under

section 24,

the commuted value of the employee's pension, calculated as of the date of

death, shall be paid to the estate of the employee and subsections 9(2),

(3) and (4) apply to the transfer.

17. The Act is amended by adding immediately after

section 24.1 the following:

Transitional

24.2

(1) A

child who is receiving a survivor benefit when this

section comes into force who

is a child of a deceased employee or deferred pensioner who died without a

principal beneficiary after December 12, 2001 is entitled to

(

a) continue to receive the survivor benefit while

he or she is under the age of 18 years, or under the age of 24 years while in

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

(

b) be paid the commuted value of his or her

entitlement determined at the date of the death of the deceased employee or deferred

pensioner, less any payments already received by the child at the date of election.

(2) Where the total survivor benefit paid under

subsection (1) is less than the deceased employee's or deferred pensioner's

commuted value at the date of death, the difference in the commuted value and

the total survivor benefit paid shall be paid to the estate of the deceased

employee or deferred pensioner.

(3) Notwithstanding the entitlements referred to in

subsection (1), where a deceased employee or deferred pensioner had more than

one child, the children shall elect jointly and there shall be only one

election for the payment of the entitlement.

(4) Unless an election is made under subsection

(1), a survivor benefit shall be continued as if continuation under paragraph

(1)(

a) had been elected.

Commencement

(1) Sections 1 to 4 shall be considered to

have come into force on December 16, 2005 .

(2) Sections 5 to 8 shall be considered to have

come into force on April 1, 2004 .

(3) Sections 9 to 11 shall be considered to have

come into force on December 14, 1999 .

(4) Sections 12 to 14 shall be considered to have

come into force on December 13, 2005 .

(5) Sections 15 to 17 shall be considered to have

come into force on December 13, 2001 .

Earl G. Tucker, Queen's Printer