Fourth

Session, 45th General Assembly

Elizabeth II, 2007

BILL 16

AN ACT TO AMEND 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 Public Service Pensions Act, 1991 , the Teachers' Pensions Act and the Uniformed Services Pensions Act, 1991 to

eliminate references to mandatory retirement and to permit employees under each

Act who work beyond normal retirement age to continue to participate in the pension

plan until the earlier of the date of termination of employment and the date

that payment of a pension benefit is required to begin under the Income Tax Act ( Canada ).

The Bill would additionally provide

that current employees who reached normal retirement age before May 26, 2007 but who have continued in employment would be permitted to receive

pensionable credit for service after normal retirement age, subject to the

Finally, the Bill would remove the 37.5

year limitation on pensionable service and the 75% of pensionable earnings

limitation contained in the Uniformed

Services Pension Act, 1991 .

A BILL

AN ACT TO AMEND THE PUBLIC SERVICE PENSIONS

ACT, 1991, THE TEACHERS' PENSIONS ACT AND THE UNIFORMED SERVICES PENSIONS ACT, 1991

Analysis

PUBLIC

SERVICE PENSIONS ACT, 1991

S.8 Amdt.

Purchase of prior service

S.16 Amdt.

Retirement

S.18 Amdt.

Calculation of pension

S.21 Amdt.

Offer of re-employment

S.22 Rep.

Re-employment after 65 years

TEACHERS'

PENSIONS ACT

S.10 Amdt.

Purchase of prior teaching service

S.18 R&S

Retirement

S.24 Amdt.

Re-employment

S.25 Rep.

Re-employment after normal retirement age

UNIFORMED

SERVICES PENSIONS ACT, 1991

S.6 Amdt.

Contributions by employees

S.10 Amdt.

Purchase of prior service

S.15 R&S

Retirement

S.19 Amdt.

Calculation of pension

S.20 Amdt.

CPP reduction factor

S.23 Amdt.

Re-employment

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

PUBLIC SERVICE PENSIONS ACT, 1991

SNL1991 c12

as amended

Section 8 of the Public Service Pensions Act, 1991 is amended by adding immediately

after subsection (3) the following:

(3.1) Where an employee

(

a) continued in employment after reaching normal

retirement age before May 26, 2007 ;

(

b) continues to be an employee 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

2. Subsection 16(1) of the Act is repealed and the

following substituted:

Retirement

(1) An

employee shall be retired under the pension plan

(

a) where he or she makes an election under

section 19 or terminates employment upon reaching normal retirement age, or,

where he or she continues working past normal retirement age, at the earlier of

termination of employment or reaching the age at which a pension benefit is

required to begin under the Income Tax

Act (Canada); or

(

b) where, after the employee has used up all sick

leave entitlement, he or she is unable to perform efficiently the duties of his

or her position or the duties of an alternative position owing to incapacity

that is medically certified to the satisfaction of the minister as likely to be

permanent from a date to be determined by the minister.

3. Subsection 18(5) of the Act is repealed and the

following substituted:

(5) The reduction under subsection (3) shall occur

on the first of the month following the month in which the employee reaches the

age of 65 years or, when the employee commences receipt of a pension under the

pension plan, whichever is the later.

4. Subsections 21(1) and (2) of the Act are

repealed and the following substituted:

Offer of

re-employment

(1) A

pensioner who has retired under the pension plan upon termination of employment

but has not reached the age at which a pension benefit is required to begin

under the Income Tax Act (Canada) may

be re-employed in a pensionable position.

(2) A pensioner who has retired under the pension

plan under paragraph 16(1)(

b) but has not reached the age at which a pension

benefit is required to begin under the Income

Tax Act ( Canada ) may, upon proof of good health and with the consent of the minister,

be re-employed in a pensionable position.

Section 22 of the Act is repealed.

TEACHERS' PENSIONS ACT

SNL1991 c17

as amended

Section 10 of the Teachers' Pensions Act is amended by adding immediately after

subsection (2) the following:

(3) 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

Section 18 of the Act is repealed and the

following substituted:

Retirement

18. A

teacher shall be retired under the pension plan

(

a) when he or she makes an election under

section

20 or terminates employment upon reaching normal retirement age; or

(

b) where he or she continues in employment after

reaching normal retirement age, when he or she terminates employment or reaches

the age at which a pension benefit is required to begin under the Income Tax Act ( Canada ),

whichever is the earlier.

8. (1) Subsections 24(1) and (2) of the Act are repealed and the following substituted:

Re-employment

(1) A

pensioner who has retired under the pension plan upon termination of employment

but has not reached the age at which a pension benefit is required to begin under

the Income Tax Act (Canada) may be

re-employed in a pensionable position as a teacher.

(2) A pensioner who has been retired under the

pension plan under subsection 19(1) but has not reached the age at which a

pension benefit is required to begin under the Income Tax Act ( Canada )

may, upon proof of good health and with the consent of the minister, be

re-employed in a pensionable position as a teacher.

(2) Subsection 24(4) of the Act is amended by

striking out the word "teacher" where it first occurs and

substituting the word "pensioner".

Section 25 of the Act is repealed.

UNIFORMED SERVICES PENSIONS ACT, 1991

SNL1991 c19

as amended

10. (1) Subsection 6(6) of the Uniformed Services Pensions Act, 1991 is repealed.

(2) Subsection 6(7) of the Act is repealed and the

following substituted:

(7) Where contributions have been deducted from

the salary of an employee in excess of those set out in subsection (2), (3), ( 4) or (5), those excess contributions shall be returned to

the employee together with interest at the prescribed rate.

Section 10 of the Act is amended by adding

immediately after subsection (2) the following:

(3) Where an employee

(

a) continued in employment after reaching normal

retirement age before May 26, 2007 ;

(

b) continues to be an employee 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

Section 15 of the Act is repealed and the

following substituted:

Retirement

15. An

employee, excluding an RCA employee who is not an RCA commissioned officer, who

has accrued at least 5 years of pensionable service shall be retired under the

pension plan

(

a) when he or makes an election under

section 17

or terminates employment upon reaching normal retirement age; or

(

b) where he or she continues in employment after

reaching normal retirement age, when he or she terminates employment or reaches

the age at which a pension benefit is required to begin under the Income Tax Act ( Canada ),

whichever is the earlier.

13. Subsection 19(2) of the Act is repealed.

14. Subsection 20(4) of the Act is repealed and the

following substituted:

(4) The reduction under subsection (1) shall occur

on the first of the month following the month in which the employee reaches the

age of 65 years or commences receipt of a pension, whichever is the later.

15. Subsection 23(1) of the Act is repealed and the

following substituted:

Re-employment

(1) A

pensioner who has retired under the pension plan upon termination of employment

but has not reached the age at which a pension benefit is required to begin

under the Income Tax Act (Canada) may

be re-employed in a pensionable position.

(1.1) A pensioner who has retired under the pension

plan under

section 18 but who has not reached the age at which a pension

benefit is required to begin under the Income

Tax Act (Canada) may, upon proof of good health and with the consent of the

minister, be re-employed in a pensionable position.

Commencement

16. This Act shall come into force on May 26, 2007 .

Earl G. Tucker, Queen's Printer