British Columbia Bill 89 (Government) — 36th Parliament, 3rd Session — Previous Version 1

36-3 Gov Bill 89-1

British Columbia — Bills

British Columbia Bill 89 (Government) — 36th Parliament, 3rd Session — Previous Version 1

36-3 Gov Bill 89-1

British Columbia — Bills

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Victoria, British Columbia, Canada

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1998/99 Legislative Session: 3rd Session, 36th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE JOY K. MacPHAIL

MINISTER OF FINANCE AND CORPORATE RELATIONS

BILL 89 – 1999

PENSION STATUTES AMENDMENT ACT, 1999

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

Province of British Columbia, enacts as follows:

Hydro and Power Authority Act

1 The Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is amended by adding

the following section:

Joint management agreement

37.1

(1) In this section:

"agreement" means the joint management agreement

referred to in subsection (2);

"pension fund" means the British Columbia Hydro

and Power Authority Pension Fund established under the pension plan;

"pension plan" means the British Columbia Hydro

and Power Authority Pension Plan established under B.C. Reg. 109/99.

(2) Despite

section 36 (2), the authority may enter into a joint

management agreement with the trade unions that represent its employees for the joint

trusteeship of all or part of the pension plan and pension fund, or for any other matter

relating to the pension plan or pension fund on which agreement is reached.

(3) The authority and the trade unions must establish appropriate

mechanisms whereby the views and interests of the authority's non-unionized employees and

retirees are fairly represented in the negotiation of the agreement.

(4) The agreement must not require any change to the pension plan

or pension fund that would render the pension plan ineligible for registration under the Pension

Benefits Standards Act or the Income Tax Act (Canada).

(5) When the agreement is entered into, the authority must adopt

those plan rules and other instruments that are necessary to amend and continue the

pension plan and pension fund in accordance with the agreement and, thereafter, the

pension plan and pension fund

(

a) must be administered as provided by the agreement,

(

b) may be amended as provided by the agreement, and

(

c) are not subject to sections 36 and 37 of this Act.

(6) Despite subsection (2), the non-unionized employees and the

retirees of the authority not represented by the trade unions may benefit from and be made

subject to the agreement, and the authority and the trade union representatives have the

power to enter into the agreement on behalf of those persons and, if entered into, the

agreement is binding on those persons.

Insurance Corporation Act

2 The Insurance Corporation Act, R.S.B.C. 1996, c. 228, is amended by adding the

following section:

Joint management agreement

4.1

(1) In this section:

"agreement" means the joint management agreement

referred to in subsection (2);

"pension fund" means the trust fund established

under the pension plan;

"pension plan" means the Retirement Plan for

Employees of the Insurance Corporation of British Columbia.

(2) Despite

section 4 (7), the corporation may enter into a joint

management agreement with the trade unions that represent its employees for the joint

trusteeship of all or part of the pension plan and pension fund, or for any other matter

relating to the pension plan or pension fund on which agreement is reached.

(3) The corporation and the trade unions must establish

appropriate mechanisms whereby the views and interests of the corporation's non-unionized

employees and retirees are fairly represented in the negotiation of the agreement.

(4) The agreement must not require any change to the pension plan

or pension fund that would render the pension plan ineligible for registration under the Pension

Benefits Standards Act or the Income Tax Act (Canada).

(5) When the agreement is entered into, the corporation must adopt

those plan rules and other instruments that are necessary to amend and continue the

pension plan and pension fund in accordance with the agreement and, thereafter, the

pension plan and pension fund

(

a) must be administered as provided by the agreement,

(

b) may be amended as provided by the agreement, and

(

c) are not subject to

section 4 of this Act.

(6) Despite subsection (2), the non-unionized employees and the

retirees of the corporation not represented by the trade unions may benefit from and be

made subject to the agreement, and the corporation and the trade union representatives

have the power to enter into the agreement on behalf of those persons and, if entered

into, the agreement is binding on those persons.

Pension (College) Act

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

(

a) by adding the following definition:

"dependant" means a dependant as defined in

section 118 (6) of the Income Tax Act (Canada); , and

(

b) by adding the following definition:

"totally and permanently disabled" means, in

relation to a person, to be suffering from a mental or physical condition that

(

a) prevents the person from engaging in any employment for which

the person is reasonably suited by virtue of the person's education, training or

experience, and

(

b) can reasonably be expected to last for the remainder of the

person's lifetime; .

Section 3 (7) (

f) is amended by striking out "section 20 (3) or

(5)" and substituting "section 20 (2) (

b) or (4) (b)" .

Section 4 is repealed and the following substituted:

Employees required to contribute to fund

(1) An employee hired before September 1, 1999 who

(

a) is an employee of

(

i) a college designated under the College and Institute

Act , or

(ii) a person, board, commission or publicly funded educational

institution designated as an employer under

section 2 (1) (b), and

(

b) is

(

i) a member of the senior administrative staff and is employed on

a full time basis,

(ii) a member of the senior administrative staff and

(

A) is employed on a part time basis,

(

B) has completed 2 years of continuous employment with earnings

in each year of not less than 35% of the year's maximum pensionable earnings, and

(

C) elects coverage under this Act, or

(iii) a person providing educational services to students,

including an employee who is a librarian, and elects coverage under this Act

must be a contributor to the fund.

(2) An employee hired on or after September 1, 1999 who

(

a) is an employee of

(

i) a college designated under the College and Institute

Act , or

(ii) a person, board, commission or publicly funded educational

institution designated as an employer under

section 2 (1) (b),

(

b) is employed on a full time basis, and

(

c) is a member of the senior administrative staff or is a person

providing educational services to students, including an employee who is a librarian,

must be a contributor to the fund.

(3) An employee hired on or after September 1, 1999 who

(

a) is an employee of

(

i) a college designated under the College and Institute

Act , or

(ii) a person, board, commission or publicly funded educational

institution designated as an employer under

section 2 (1) (b),

(

b) is employed on a part time or casual basis or as a full time

term employee,

(

c) earns, in any calendar year, a salary that in the aggregate

exceeds 50% of the year's maximum pensionable earnings, and

(

d) is a member of the senior administrative staff or is a person

providing educational services to students, including an employee who is a librarian,

must be a contributor to the fund.

(4) An employee hired on or after September 1, 1999 who

(

a) is an employee of

(

i) a college designated under the College and Institute

Act , or

(ii) a person, board, commission or publicly funded educational

institution designated as an employer under

section 2 (1) (b),

(

b) is a member of the senior administrative staff or is a person

providing educational services to students, including an employee who is a librarian,

(

c) is not eligible under subsection (2), and

(

d) before being required to contribute to the fund under

subsection (3) elects coverage under this Act

must be a contributor to the fund.

(5) An employee referred to in subsection (4) who does not elect

coverage under this Act must sign a waiver form to that effect and the employer must

retain a copy of the waiver form.

(6) The waiver form referred to in subsection (5) is effective

until

(a) subsection (2) or (3) applies to the employee, or

(

b) the employee elects coverage under subsection (4).

(7) After this Act begins to apply to an employee, the Act is

deemed to continue to apply to that employee until termination of membership.

Section 5 is amended

(

a) in paragraph (

a) by striking out "5.3%" and

substituting "4.8%" ,

(

b) in paragraph (

b) by striking out "6.8%" and

substituting "6.3%" , and

(

c) in paragraph (

c) by striking out "0.5%" and

substituting "1%" .

Section 7 (1) is amended

(

a) in paragraph (

a) by striking out "5%," and

substituting "4.5%," ,

(

b) in paragraph (

b) by striking out "6.5%," and

substituting "6%," , and

(

c) in paragraph (

c) by striking out "0.5%," and

substituting "1%," .

Section 12 (1) is amended

(

a) in paragraph (

a) by striking out "section 14 (2)" and

substituting "section 14 (2) or (2.1)" ,

(

b) in paragraph (

b) by striking out "section 14 (3)" and

substituting "section 14 (3) or (3.1)" , and

(

c) in paragraph (

c) by striking out "section 14 (4)" and

substituting "section 14 (4) or (4.1)" .

Section 14 is amended

(

a) in subsection (2) by adding ", whose service terminates or is

terminated before January 1, 1999," after "to which a

contributor" ,

(

b) by adding the following subsection:

(2.1) The amount of a monthly pension to which a contributor,

whose service terminates or is terminated on or after January 1, 1999, is entitled,

calculated on the basis of the single life guaranteed plan having a term of 10 years, as

permitted under

section 15 (1) (b), is the sum of

(a) 2% of the contributor's highest average salary multiplied by

the number of years of pensionable service not exceeding 35 years, reduced at the age of

65 years or at the date of death or disability, whichever is earlier, by an amount that is

equal to the sum of

(i) 0.65% of the lesser of

(

A) the contributor's highest average salary, and

(B) 1/12 the year's maximum pensionable earnings for the calendar

year immediately before the calendar year in which the pension is received by the

contributor,

multiplied by the number of years of pensionable service after January 1, 1966, not

exceeding 35 years, and

(ii) any supplementary allowance provided with respect to an

amount in subparagraph (i), and

(

b) an amount obtained by converting to a monthly allowance, in

accordance with the prescribed tables, any accumulated contributions made by a contributor

to the retirement annuity account, with interest credited on that amount. ,

(

c) by adding the following subsection:

(3.1) Despite subsection (3), if, on or after January 1, 1999, a

contributor's service terminates or is terminated and the contributor

retires, or a contributor is eligible and elects under

section 12 (1) (

b) to have his or

her pension commence before reaching the age of 60 years, the amount of the pension on the

single life guaranteed plan having a term of 10 years, as permitted under

section 15 (1)

(b), is one of the following:

(

a) a pension calculated under subsection (2.1), but the 2%

referred to in subsection (2.1) (

a) must be reduced by a percentage equal to 5% for each

year of age by which the contributor is less than 60 years of age, and the amount must be

prorated for fractions of a year;

(

b) if an allowance is payable due to the contributor's total and

permanent disability under the age of 60 years or on the death of a contributor, the

pension that the contributor would have been entitled to receive if, with the same

service, the contributor had reached the age of 65 years. ,

(

d) by adding the following subsection:

(4.1) Despite subsection (4), if, on or after January 1, 1999, a

contributor's service terminates or is terminated and the contributor

retires, or a contributor is eligible and elects under

section 12 (1) (

c) to have his or

her pension commence before reaching the age of 65 years, the amount of the pension on the

single life guaranteed plan having a term of 10 years, as permitted under

section 15 (1)

(b), must be calculated under subsection (2.1), but the 2% referred to in subsection (2.1)

(

a) must be reduced by 5% of that amount for each year of age by which the contributor is

less than 65 years of age, and the amount must be prorated for fractions of a year.

, and

(

e) in subsection (5) by striking out "subsection (3) (

a) or

(4)" and substituting "subsection (3) (a), (3.1) (a), (4) or

(4.1)" .

Section 14.1 (1) is amended by striking out "section 14 (3) (a),

(4) or (5)" and substituting "section 14 (3) (a), (3.1) (a), (4),

(4.1) or (5)" .

Section 15 (1) is amended

(

a) by striking out "section 12 (1) (a) (i), (ii) and (iii) and

(b)" and substituting "section 12 (1) (a) (

i) to (iv) and

(b)" ,

(

b) by repealing paragraph (

c) and substituting the following:

(

c) joint life and last survivor, payable

(

i) during the joint life of the contributor and

(

A) the spouse or a dependant nominated by the contributor before

the granting of the pension, or

(

B) a former spouse who, as a result of a written agreement or

court order, has such an entitlement, and

(ii) during the life of the survivor; , and

(

c) by repealing paragraph (d) (ii).

Section 17 (3) (

b) is amended by striking out "section 14 (2)

(b)." and substituting "section 14 (2) (

b) or (2.1) (b)."

Section 19 is amended

(

a) by repealing subsection (2), and

(

b) in subsection (3) (

c) by striking out "from performing his or

her duties" .

Section 20 is amended by repealing subsections (1) to (4) and substituting the

following:

(1) If, on or after the date this subsection comes into force, a

contributor who has less than 2 years of contributory service dies in service without

becoming entitled to a pension under

section 12, a benefit equal to the deceased

contributor's contributions together with accumulated interest is payable to

(

a) the contributor's spouse if there is a spouse and a valid

spousal waiver has not been filed with the commission,

(

b) the person nominated by the contributor as beneficiary if

there is no spouse or a valid spousal waiver has been filed with the commission, or

(

c) the personal representative of the estate of the contributor

if there is no spouse or a valid spousal waiver has been filed with the commission and

there is no valid nomination of a beneficiary.

(2) If, on or after the date this subsection comes into force, a

contributor who has 2 or more years of contributory service dies in service without

becoming entitled to a pension under

section 12, a benefit equal to the greater of

(

a) the deceased contributor's contributions together with

accumulated interest, and

(

b) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death,

is payable to

(

c) the contributor's spouse if there is a spouse and a valid

spousal waiver has not been filed with the commission,

(

d) the person nominated by the contributor as beneficiary if

there is no spouse or a valid spousal waiver has been filed with the commission, or

(

e) the personal representative of the estate of the contributor

if there is no spouse or a valid spousal waiver has been filed with the commission and

there is no valid nomination of a beneficiary.

(3) If, on or after the date this subsection comes into force, a

contributor who dies in service was entitled at his or her date of death to a pension

under

section 12, and there is a surviving spouse and a valid spousal waiver has not been

filed with the commission, a pension calculated as though the deceased contributor had

retired at the date of death and had chosen the joint life and last survivor plan under

section 15 (1) (

c) is payable to the spouse of the deceased contributor.

(4) If, on or after the date this subsection comes into force, a

contributor who dies in service was entitled at his or her date of death to a pension

under

section 12, and there is no surviving spouse or a valid spousal waiver has been

filed with the commission, a benefit equal to the greater of

(

a) the deceased contributor's contributions together with

accumulated interest, and

(

b) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death,

is payable to

(

c) the person nominated by the contributor as beneficiary, or

(

d) the personal representative of the contributor's estate if

there is no valid designation of a beneficiary.

Pension (Municipal) Act

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

adding the following definition:

"dependant" means a dependant as defined in

section 118 (6) of the Income Tax Act (Canada); .

Section 2 is amended

(

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

(

u) an employer who submits a resolution passed by an affirmative

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

declared to be an employer by the board. , and

(

b) in subsection (3) (

b) by adding ", associated professional or

certified professional" after "except a teacher" .

Section 4 (7) (

f) is amended by striking out "22 (1) or

(3)," and substituting "22 (2) (b), (4) (

a) or (5) (b)," .

Section 13 (4) is amended by striking out ", but the amount of

pension must be calculated under

section 16 rather than under

section 21 (2)" .

Section 17 is amended

(

a) in subsection (1) by repealing paragraph (

c) and substituting the following:

(

c) joint life and last survivor, payable

(

i) during the joint life of the contributor and

(

A) the spouse or a dependant nominated by the contributor before

the granting of the pension, or

(

B) a former spouse who, as a result of a written agreement or

court order, has such an entitlement, and

(ii) during the life of the survivor; ,

(

b) in subsection (1) by repealing paragraph (d) (ii),

(

c) by adding the following subsection:

(10.1) If an employee retires from service on or after the date

this subsection comes into force, 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 (10) is deemed to be 3%. ,

and

(

d) in subsection (14) by striking out "section 16." and

substituting "section 22."

Section 20 is amended

(

a) in subsection (2) by striking out "section 22 (1) or (3)."

and substituting "section 22 (3) and (4) (b)." , and

(

b) in subsection (3) by striking out "section 22 (1) or (3),"

and substituting "section 22 (3) and (4) (b)," .

Section 22 is amended by repealing subsections (1) to (5.1) and

substituting the following:

(1) If, on or after the date this subsection comes into force, a

contributor who has less than 2 years of contributory service dies in service without

becoming entitled to a pension under

section 13, a benefit equal to the deceased

contributor's contributions together with accumulated interest is payable to

(

a) the contributor's spouse if there is a spouse and a valid

spousal waiver has not been filed with the commission,

(

b) the person nominated by the contributor as beneficiary if

there is no spouse or a valid spousal waiver has been filed with the commission, or

(

c) the personal representative of the estate of the contributor

if there is no spouse or a valid spousal waiver has been filed with the commission and

there is no valid nomination of a beneficiary.

(2) If, on or after the date this subsection comes into force, a

contributor who has 2 or more years of contributory service dies in service without

becoming entitled to a pension under

section 13, and there is no surviving spouse or a

valid spousal waiver has been filed with the commission, a benefit equal to the greater of

(

a) the deceased contributor's contributions together with

accumulated interest, and

(

b) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death,

is payable to

(

c) the person nominated by the contributor as beneficiary, or

(

d) the personal representative of the contributor's estate if

there is no valid nomination of a beneficiary.

(3) If, on or after the date this subsection comes into force, a

contributor dies in service and there is a surviving spouse and a valid spousal waiver has

not been filed with the commission, a pension is payable to the spouse of the deceased

contributor if the contributor was entitled to a pension under

section 13, and the pension

must be calculated as if the deceased contributor had retired at the date of death and had

chosen the joint life and last survivor plan under

section 17 (1) (c).

(4) If, on or after the date this subsection comes into force, a

contributor dies in service and had 2 or more years of contributory service but was not

entitled to a pension under

section 13, and there is a surviving spouse and a valid

spousal waiver has not been filed with the commission, the surviving spouse may elect to

receive

(

a) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death, or

(

b) a pension, payable immediately, calculated on the basis of a

prescribed table, which is actuarially equivalent to the amount calculated under paragraph

(a), and payable as if the contributor had chosen the joint life and last survivor plan

under

section 17 (1) (c).

(5) If, on or after the date this subsection comes into force, a

contributor who dies in service was entitled at his or her date of death to a pension

under

section 13, and there is no surviving spouse or a valid spousal waiver has been

filed with the commission, a benefit equal to the greater of

(

a) the deceased contributor's contributions together with

accumulated interest, and

(

b) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death,

is payable to

(

c) the person nominated by the contributor as beneficiary, or

(

d) the personal representative of the contributor's estate if

there is no valid designation of a beneficiary.

Pension (Public Service) Act

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

amended

(

a) by adding the following definition:

"dependant" means a dependant as defined in

section 118 (6) of the Income Tax Act (Canada); , and

(

b) by adding the following definition:

"totally and permanently disabled" means, in

relation to a person, to be suffering from a mental or physical disability that

(

a) prevents the person from engaging in any employment for which

the person is reasonably suited by virtue of the person's education, training or

experience, and

(

b) can reasonably be expected to last for the remainder of the

person's lifetime; .

Section 2 is amended by adding the following subsection:

(6) The Lieutenant Governor in Council may, by regulation,

designate an employer for the purposes of this Act and, when designated, this Act applies

to that employer.

Section 6 (3) is repealed.

Section 15 is amended

(

a) in subsection (1) (

b) by striking out "January 1, 1996,"

and substituting "April 1, 2000," ,

(

b) in subsection (1) (b) (

i) by striking out "not less than 90

years minus the number of years that the maximum retirement age for that employee is less

than age 65," and substituting "not less than 85 years," ,

(

c) in subsection (1) (b) (iii) by striking out "to be totally and

permanently unable, due to mental or physical disability, to fill or occupy any position

the duties of which, in the opinion of the employer, may reasonably be expected to be

carried out." and substituting "to be totally and permanently

disabled." ,

(

d) by repealing subsection (2) and substituting the following:

(2) If a pension is granted under subsection (1) (b) (iii) because

a contributor is totally and permanently disabled, an increased annual pension may be paid

to the contributor in accordance with

section 8503 (3) (

d) of the Income Tax Regulations

under the Income Tax Act (Canada). ,

(

e) in subsection (7) (

a) by striking out "January 1, 1996,"

and substituting "April 1, 2000," , and

(

f) in subsection (7) (

e) by striking out "less than 90 years minus

the number of years that the maximum retirement age for that employee is less than age

65," and substituting "less than 85 years," .

Section 18 (1) is amended

(

a) by repealing paragraph (

c) and substituting the following:

(

c) joint life and last survivor, payable

(

i) during the joint life of the contributor and

(

A) the spouse or a dependant nominated by the contributor before

the granting of the pension, or

(

B) a former spouse who, as a result of a written agreement or

court order, has such an entitlement, and

(ii) during the life of the survivor; , and

(

b) by repealing paragraph (d) (ii).

Section 19 (2) (

b) is repealed and the following substituted:

(

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

service is less than 85 years, .

Section 25 is amended

(

a) in subsection (2) by striking out "section 26 (1) (

a) or

(2)." and substituting "section 26 (2.1)." , and

(

b) in subsection (3) by striking out "section 26 (1) (

a) or

(2)," and substituting "section 26 (2.1)," .

Section 26 (1) to (3) is repealed and the following substituted:

(1) If, on or after the date this subsection comes into force, a

contributor who has less than 2 years of contributory service dies in service without

becoming entitled to a pension under

section 15, a benefit equal to the deceased

contributor's contributions together with accumulated interest is payable to

(

a) the contributor's spouse if there is a spouse and a valid

spousal waiver has not been filed with the commission,

(

b) the person nominated by the contributor as beneficiary if

there is no spouse or a valid spousal waiver has been filed with the commission, or

(

c) the personal representative of the estate of the contributor

if there is no spouse or a valid spousal waiver has been filed with the commission and

there is no valid nomination of a beneficiary.

(2) If, on or after the date this subsection comes into force, a

contributor who has 2 or more years of contributory service dies in service without

becoming entitled to a pension under

section 15, a benefit equal to the greater of

(

a) the deceased contributor's contributions together with

accumulated interest, and

(

b) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death,

is payable to

(

c) the contributor's spouse if there is a spouse and a valid

spousal waiver has not been filed with the commission,

(

d) the person nominated by the contributor as beneficiary if

there is no spouse or a valid spousal waiver has been filed with the commission, or

(

e) the personal representative of the estate of the contributor

if there is no spouse or a valid spousal waiver has been filed with the commission and

there is no valid nomination of a beneficiary.

(2.1) If, on or after the date this subsection comes into force, a

contributor who dies in service was entitled at his or her date of death to a pension

under

section 15, and there is a surviving spouse and a valid spousal waiver has not been

filed with the commission, a pension calculated as though the deceased contributor had

retired at the date of death and had chosen the joint life and last survivor plan under

section 18 (1) (

c) is payable to the spouse of the deceased contributor.

(3) If, on or after the date this subsection comes into force, a

contributor who dies in service was entitled at his or her date of death to a pension

under

section 15, and there is no surviving spouse or a valid spousal waiver has been

filed with the commission, a benefit equal to the greater of

(

a) the deceased contributor's contributions together with

accumulated interest, and

(

b) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death,

is payable to

(

c) the person nominated by the contributor as beneficiary, or

(

d) the personal representative of the contributor's estate if

there is no valid designation of a beneficiary.

Section 29 (1) is repealed.

Section 65 (2) (

n) is amended by striking out "section 6

(c) (iii)" and substituting "section 6 (1) (c) (iii)" .

Section 1 of the Supplement to the Pension (Public Service) Act is repealed.

Pension (Teachers) Act

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

(

a) by adding the following definition:

"associated professional" or "certified

professional" means a person who is an active member of the British Columbia

Teachers' Federation and employed by a board of school trustees to provide professional

support to the educational program provided by the board; ,

(

b) by adding the following definition:

"dependant" means a dependant as defined in

section 118 (6) of the Income Tax Act (Canada); , and

(

c) by adding the following definition:

"totally and permanently disabled" means, in

relation to a person, to be suffering from a mental or physical condition that

(

a) prevents the person from engaging in any employment for which

the person is reasonably suited by virtue of the person's education, training or

experience, and

(

b) can reasonably be expected to last for the remainder of the

person's lifetime; .

Section 2 (1) (

b) is amended by adding ", associated professional

and certified professional" after "a teacher" .

Section 16 (1) is amended

(

a) by repealing paragraph (

c) and substituting the following:

(

c) joint life and last survivor, payable

(

i) during the joint life of the contributor and

(

A) the spouse or a dependant nominated by the contributor before

the granting of the pension, or

(

B) a former spouse who, as a result of a written agreement or

court order, has such an entitlement, and

(ii) during the life of the survivor; , and

(

b) by repealing paragraph (d) (ii).

Section 20 is amended

(

a) in subsection (3) by striking out "permanently and totally

disabled from performing his or her duties, within the meaning of this Act" and

substituting "totally and permanently disabled" ,

(

b) in subsection (3) (

c) by striking out "from performing his or

her duties" , and

(

c) in subsection (5) by striking out "from performing his or her

duties" .

Section 21 is amended

(

a) by repealing subsections (1) to (3) and substituting the following:

(1) If, on or after the date this subsection comes into force, a

contributor who has less than 2 years of contributory service dies in service without

becoming entitled to a pension under

section 12, a benefit equal to the deceased

contributor's contributions together with accumulated interest is payable to

(

a) the contributor's spouse if there is a spouse and a valid

spousal waiver has not been filed with the commission,

(

b) the person nominated by the contributor as beneficiary if

there is no spouse or a valid spousal waiver has been filed with the commission, or

(

c) the personal representative of the estate of the contributor

if there is no spouse or a valid spousal waiver has been filed with the commission and

there is no valid nomination of a beneficiary.

(2) If, on or after the date this subsection comes into force, a

contributor who has 2 or more years of contributory service dies in service without

becoming entitled to a pension under

section 12, a benefit equal to the greater of

(

a) the deceased contributor's contributions together with

accumulated interest, and

(

b) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death,

is payable to

(

c) the contributor's spouse if there is a spouse and a valid

spousal waiver has not been filed with the commission,

(

d) the person nominated by the contributor as beneficiary if

there is no spouse or a valid spousal waiver has been filed with the commission, or

(

e) the personal representative of the estate of the contributor

if there is no spouse or a valid spousal waiver has been filed with the commission and

there is no valid nomination of a beneficiary.

(2.1) If, on or after the date this subsection comes into force, a

contributor who dies in service was entitled at his or her date of death to a pension

under

section 12, and there is a surviving spouse and a valid spousal waiver has not been

filed with the commission, a pension calculated as though the deceased contributor had

retired at the date of death and had chosen the joint life and last survivor plan under

section 16 (1) (

c) is payable to the spouse of the deceased contributor.

(3) If, on or after the date this subsection comes into force, a

contributor who dies in service was entitled at his or her date of death to a pension

under

section 12, and there is no surviving spouse or a valid spousal waiver has been

filed with the commission, a benefit equal to the greater of

(

a) the deceased contributor's contributions together with

accumulated interest, and

(

b) the commuted value of the pension to which the contributor

would have been entitled in respect of the contributor's pensionable service had the

contributor terminated membership immediately before death,

is payable to

(

c) the person nominated by the contributor as beneficiary, or

(

d) the personal representative of the contributor's estate if

there is no valid designation of a beneficiary. , and

(

b) by repealing subsection (5).

Commencement

(1) Sections 8 to 10, 12, 16 (b), 33 (

a) and 34 are

deemed to have come into force on January 1, 1999 and are retroactive to the extent

necessary to give them effect on and after that date.

(2) Sections 5 to 7 come into force on September 1, 1999.

(3) Sections 25 (a), (b), (

e) and (

f) and 27 come into force on

April 1, 2000.

(4) Sections 4, 14, 17, 18, 19 (d), 20, 21, 22 (b), 25 (

c) and

(d), 28 to 30 and 37 come into force by regulation of the Lieutenant Governor in Council.

Explanatory Notes

Hydro and Power Authority Act

SECTION 1: [Hydro and Power Authority Act, enacts

section 37.1] allows

the British Columbia Hydro and Power Authority to enter into an agreement with its trade

unions for the joint management of its pension plan and pension fund.

Insurance Corporation Act

SECTION 2: [Insurance Corporation Act, enacts

section 4.1] allows the

Insurance Corporation of British Columbia to enter into an agreement with its trade unions

for the joint management of its pension plan and pension fund.

Pension (College) Act

SECTION 3: [Pension (College) Act, amends

section 1 (1)] adds new

definitions.

SECTION 4: [Pension (College) Act, amends

section 3 (7) (f)] is

consequential to the amendment made by

section 14 of this Bill.

SECTION 5: [Pension (College) Act, re-enacts

section 4] preserves the

rules for enrollment in the College Pension Plan for employees hired before September 1,

1999, and makes enrollment in the plan mandatory for employees hired on or after September

1, 1999 on attaining full time or income threshold status or when electing coverage.

SECTION 6: [Pension (College) Act, amends

section 5] adjusts employer

contribution rates to the fund to prepare the plan for changes agreed to respecting joint

trusteeship.

SECTION 7: [Pension (College) Act, amends

section 7 (1)] adjusts employee

contribution rates to the fund to prepare the plan for changes agreed to respecting joint

trusteeship.

SECTION 8: [Pension (College) Act, amends

section 12 (1)] is

consequential to amendments made by

section 9 of this Bill.

SECTION 9: [Pension (College) Act, amends

section 14]

(

a) makes the provision for calculating pensions applicable to

periods before January 1, 1999;

(

b) changes, on and after January 1, 1999, the standard form of

pension from a single life no guarantee plan to a single life 10 year guarantee plan, and

changes the pension benefit formula;

(

c) changes, on and after January 1, 1999, the standard form of

pension from a single life no guarantee plan to a single life 10 year guarantee plan;

(

d) changes, on and after January 1, 1999, the standard form of

pension from a single life no guarantee plan to a single life 10 year guarantee plan;

(

e) is consequential to amendments made by paragraphs (

c) and (

d) of this section.

SECTION 10: [Pension (College) Act, amends

section 14.1 (1)] is

consequential to amendments made by

section 9 of this Bill.

SECTION 11: [Pension (College) Act, amends

section 15 (1)]

(

a) is consequential to amendments made by

section 13 of this

Bill;

(

b) restricts the joint life and survivor option to the spouse or

a dependant, or to a former spouse with written agreement or court order;

(

c) is consequential to Income Tax Act (Canada)

requirements.

SECTION 12: [Pension (College) Act, amends

section 17 (3) (b)] is

consequential to amendments made by

section 9 of this Bill.

SECTION 13: [Pension (College) Act, amends

section 19]

(

a) is consequential to Income Tax Act (Canada)

requirements respecting the disability pension benefit;

(

b) is consequential to the definition of "totally and

permanently disabled" as enacted by

section 3 (

b) of this Bill .

SECTION 14: [Pension (College) Act, repeals and replaces

section 20 (1) to (4)] changes

the pre-retirement death benefits by standardizing the benefit payable in the event of the

member's death regardless of the member's marital status.

Pension (Municipal) Act

SECTION 15: [Pension (Municipal) Act, amends

section 1 (1)] adds a new

definition.

SECTION 16: [Pension (Municipal) Act, amends

section 2]

(

a) allows a new group of employers to come within the scope of

the Municipal Pension Plan; namely private for-profit health sector employers funded by

the government;

(

b) is consequential to the amendment made by

section 34 of this

Bill, which makes the Pension (Teachers) Act apply to associated professionals and

certified professionals.

SECTION 17: [Pension (Municipal) Act, amends

section 4 (7) (f)] is

consequential to the amendment made by

section 21 of this Bill.

SECTION 18: [Pension (Municipal) Act, amends

section 13 (4)] is

consequential to the amendment made by

section 21 of this Bill.

SECTION 19: [Pension (Municipal) Act, amends

section 17]

(

a) restricts the joint life and survivor option to the spouse or

a dependant, or to a former spouse with a written agreement or court order;

(

b) is consequential to Income Tax Act (Canada)

requirements;

(

c) changes the reduction formula for some employees entitled to a

deferred pension;

(

d) is consequential to the amendment made by

section 21 of this

Bill.

SECTION 20: [Pension (Municipal) Act, amends

section 20] is consequential

to the amendment made by

section 21 of this Bill.

SECTION 21: [Pension (Municipal) Act, amends

section 22] changes the

pre-retirement death benefits by standardizing the benefit payable in the event of the

member's death.

Pension (Public Service) Act

SECTION 22: [Pension (Public Service) Act, amends

section 1 (1)] adds new

definitions.

SECTION 23: [Pension (Public Service) Act, adds

section 2 (6)] relocates

and clarifies the operation of a provision currently in

section 6 of the

Pension (Public Service) Act .

SECTION 24: [Pension (Public Service) Act, repeals

section 6 (3)] is

consequential to the amendment made by

section 23 of this Bill.

SECTION 25: [Pension (Public Service) Act, amends

section 15]

(

a) and (

b) changes age and service rules for an unreduced pension

effective April 1, 2000;

(

c) is consequential to the definition of "totally and

permanently disabled" as enacted by

section 22 (

b) of this Bill;

(

d) provides for increased pension on total and permanent

disability in accordance with Income Tax Act (Canada) rules;

(

e) and (

f) changes age and service rules for an unreduced pension

effective April 1, 2000.

SECTION 26: [Pension (Public Service) Act, amends

section 18 (1)]

(

a) restricts the joint life and survivor option to the spouse or

a dependant, or to a former spouse with written agreement or court order;

(

b) is consequential to Income Tax Act (Canada)

requirements.

SECTION 27: [Pension (Public Service) Act, repeals and replaces

section 19 (2)

(b)] makes the rule of 85 applicable to a deferred pension.

SECTION 28: [Pension (Public Service) Act, amends

section 25] is

consequential to the amendment made by

section 29 of this Bill.

SECTION 29: [Pension (Public Service) Act, repeals and replaces

section 26 (1) to

(3)] changes the survivor pension benefit under the plan by standardizing the

benefit payable in the event of the member's death regardless of the member's marital

status.

SECTION 30: [Pension (Public Service) Act, repeals

section 29 (1)] is

consequential to the amendments made by

section 29 of this Bill.

SECTION 31: [Pension (Public Service) Act, amends

section 65 (2) (n)] is

housekeeping.

SECTION 32: [Supplement to the Pension (Public Service) Act, repeals

section 1] is

consequential to the British Columbia Lottery Corporation establishing its own pension

plan.

Pension (Teachers) Act

SECTION 33: [Pension (Teachers) Act, amends

section 1 (1)] adds new

definitions.

SECTION 34: [Pension (Teachers) Act, amends

section 2 (1) (b)] makes the Pension

(Teachers) Act apply to associated professionals and certified professionals.

SECTION 35: [Pension (Teachers) Act, amends

section 16 (1)]

(

a) restricts the joint life and last survivor option to the

spouse or a dependant, or to a former spouse with a written agreement or court order;

(

b) is consequential to Income Tax Act (Canada)

requirements.

SECTION 36: [Pension (Teachers) Act, amends

section 20] is consequential

to the definition of "totally and permanently disabled" as enacted by

section 33

(

c) of this Bill.

SECTION 37: [Pension (Teachers) Act, amends

section 21]

(

a) eliminates the current marital status bias in the

pre-retirement death benefit;

(

b) is consequential to the amendment made by paragraph (

a) of

this section.

Copyright © 1999: Queen's Printer, Victoria, British Columbia, Canada

Document details

CollectionBritish Columbia — Bills
Citation36-3 Gov Bill 89-1
Typebill
Volume / chapterbillsprevious 36th3rd gov89 1
Languageen
Formatxml
SourcePROVINCIAL
Identifier485b503f5386f4172689f31baf79c0e0565d685f

Source file is stored in the law ingest library (xml).