No. 118 of 1962 4th Session, 14th Legislature, Alberta 10 Elizabeth II BILL 118 A Bill to amend The Public Service Pension Act HON. MR. HOOKE PrInted by L. S. WALL, Printer to the Queen's Most Excellent Kajelty, Edmonton, Alberta, 1962

Explanatory Note

Section 5, clause (

a) presently reads: "5. Subject to the other provisions of this Act, every empioyee shall make contributions at the rate of five per cent of his salary to the Generrul Revenue Fund to be accounted for as part of the General Revenue Fund, but in no case shall such contributions be made (

a) if, in the case of a person who becomes an employee after the first day of April, 1947, he has attained the age of fifty-one years prior to the commencement of his servIce,".

Section 9, subsection (2) presently reads: "

(2) Wl1en there are special reasons therefor, the Lieutenant Gov­ ernor in Council may upon the recommendation of the Board arrange for the . continuation of. the service of any employee after he has attained the age of sixty-five years, in which case the employee's retirement shall be effective, for the purposes of

section 16, upon the date of the actual termination of his service.".

Section 11, subsection (1) presently reads: "11.

(1) The Lieutenant Governor in Council may, upon the recom­ mendation of the Board, authorize t'he retirement of (

a) any employee who has attained the age of fifty-five years, or (

b) any employee at any age whose service has been not less than ten years and who from mental or physical disa:bility or other cause has become incapable of effectively performing his regular duties.".

Section 12 presently reads: "12. Subject to the approval of t~e Board, a person receiving a pension under this Act may without forfeiture of pension payments be re-employed for periods not exceeding a total of four months in any twelve-month period.".

BILL No. 118 1962 of

An Act to amend The Public Service Pension Act (Assented to , 1962) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. The Public SeTvice Pension Act, being

chapter 264 of the Revised Statutes, is herehy 8mended.

Section 5 is amended by striking out all the words preceding clause (

a) and clause (

a) and b,y substituting the following: ' 5. Subject to the other provisions of this Act, every employee shall make conteibutions at the rate of five per cent of his salary or of sixteen thousand dollars, which­ ever is the lesser, to the General Revenue Fund to be accounted for as part of the General Revenue Fund, but in no case shall such contributions be made (

a) if, in the case of a person who becomes an employee after the fiest da~y of April, 1947. he has attained the age of fifty years prior to the commencement of his emplo~Yn1ent. with the Government or the Legislative Assembly,

Section 9 is amended b~Y striking out sub~ection (2) and by substituting the following:

(2) Where the service of an emplo~ree continues after he has attained the age of sixty-five ~Ye(l rs. for the purposes of

section 16 the emplo~-ee's retirement ~hall be effective upon the da.te of the actual termination of his service.

Section 11, subsection (1), clause (

b) is ~mended by adding immediatel~y preceding the word "servIce" thf' word "pensionable".

Section 12 is struck out and the following

section i~ substituted: 12. A person receiving a pension under this Act may, without forfeiture of pension payment~. be re-emplo Y'ed h .. · the Government or the Legislative Assemhly for ,.-uch period or periods as may be prescribNl h~' the Lieuh'nant Governor in Council.

Section 14, subsection (1), clause (

e) presently reads: "14. (l,) For the purposes of this Act, pensionable service shal,l be deemed to include (

e) in the case of a person (

i) who entered the employ of the Government or the Legislative Assembly after the thirty-first day of March, 1947, but who, after having been employed for one year, was not then eligible to become a contributor under this Act, and (ii) who has since become a contributor under this Act, the period or periods of his empIoyment prior to the date when he became a contributor, except the first year of his employment, if he pays into the Generllil Revenue Fund in such manner and on such terms as the Board may direct an amount equal to the contributions he would have mad·e had he then been a contributor, together with the interest that would have accumulated thereon during such period or periods.".

Section 15 is revised to remove the requirement that the Board give its approval in each individual case before an employee may refund contributions.

Section 15a, subsection (1) presently reads: "15a.

(1) Notwithstanding any provision of this Act an employee who has been an employee for a total period of not less than nine years and who is making contributions pursuant to

section 5 may pay to the Provincial Treasurer in a single sum (

a) an amount equivalent to that which would have been deducted from his salary had such deductions been made under this Act or The Superannuation Act during his first year of employment, and (

b) such interest thereon as the Board by regulation may prescribe.".

Section 19, subsection (1) presently reads: "19.

(1) The normal p'ension payable to an employee upon his retire­ ment shall be an annual amount equal to two per cent of the average annual salary paid to him during the last five years of his pensionable service, multiplied by the total number of years of his pensionable service, computed to the nearest complete month thereof, or by thirty­ five, whichever number is the Iless.".

Section 14, subsection (1) is amended (

a) by adding the following new clause after clause (d) : (dl) in the case of a person who was not in the employ of the Government or the Legislative Ass.embly at ~he. time of his enlistment, any perIOd of serVIce In the British or Allied Forces during World War II (

i) if the date of the commencement of his employment by the Government or the Legislative Assembly was within three months of the date of his discharge from mili tary service, and (ii) if he pays into the General Revenue Fund in such manner and on such terms as th~ Board may direct, an amount equal to ten per cent of the annual salary paid to him by the Government at the commencement of his employment multiplied by the number of years of his military service, computed to the nearest complete month thereof, together with interest on such amount from the date of his enlistment to the date of completion of such payment in full, and (

b) as to clause (e), subclause (

i) by striking out the words and figures "who entered the employ of the Government or the Legislative Assembly after the thirty-first day of March, ] 947, but".

Section 15 is struck out and the following

section is substituted: 1'5. Where an employee has resigned or has been dis­ missed at any time during his service and has thereafter been re-employed by the Government or the Legislative Assembly, his service prior to his resignation 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 nwy direct any sum paid to the employee under The Superannuation Act or this Act at the time of his resignation or dismissal together with interest thereon from the date of his re-employment to the date of com­ pletion of such payment in full.

Section 15u, subsection (1) is amended lJy striking out the words "an employee who has been an employee for a total period of not less than nine" and lJy substituting the words "a person who has been employed by the Govern­ ment or the LegislatiYe ~-\s:-iembly for a total period of not less than ten".

Section 19 is amended by striking out subsection (1) and by substituting the following:

Section 21 presently reads: "21. The secretary of the Board, not less than ninety days before an employee attains the age of sixty-five years, shaH notify him in writing as to the normal and alternative pensions from which the employee may make a selection, and if the employee does not select an alternative pension prior to his attaining the age of sixty-five years, he shall upon retirement receive a norma;l pension under the provisions of

section 19.". II.

Section 23a is revised to permit any employee who resigns or is discharged to elect a deferred pension.

Section 23a presently reads: "23a.

(1) Notwithstanding any other provision of this Act, where an employee is discharge·d from the service of the Government, the Legis­ lative Assembly or the University of Alberta, or from the service of any of the employers referred to in

section 34, because of the abolition of the position he was employed in, if he was at the time of his dis­ cnarge a contributor for a total period of not less than ten years and if he is not eligible upon his discharge to receive a pension pursuant to this Act, the employee so discharged is entitled to receive at his option (

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

section 23, together with a like amount from the General Revenue Fund, or (

b) a deferred pension, as provided in this section, when he attains the age of sixty years.

(2) When such a discharged employee elects to receive a deferred pension under the provisions of subsection (1), the same shaH at his option be (

a) a normaJl pension in an amount equal to two per cent of the average annual saJ.ary paid to him during the last five years of his employment prior to his disc:b.arge, multiplied by the total number of years of his contributory service, computed to the nearest complete month thereof, or by thirty-five, whichever number is the less, or (

b) an alternative pension of any of the types specified in

section 20 that is of an actuarial value equivalent to that of the normal pension that he may elect to receive.

(3) A discharged employee who has elected to r,eceive a deferred pension under the provisions of subsection (1) may at any time there­ after, at his written request, receive in lieu thereof the payment speci­ fied in clause (

a) of subsection (1), in which case his election to receive a deferred pension thereupon becomes null and void.

(4) If a discharged employee is re-employed by any of the employers referred to in subsection (1) and again becomes eligible to make con­ tributions under this Act, (

a) he shall repay to the Provincial Treasurer upon such terms as the Board may prescribe the total amount of any payment made to him under clause (

a) of subs1ection (1), and upon such repay­ ment being made in full, his employment prior to his discharge sha;ll be deemed to be part of his service within the meaning of this Act, or (

b) any election made by him to receive a deferred pension becomes null and void, and :b.is employment prior to his discharge shall be deemed to be part of his service within the meaning of this Act.".

3 19.

(1) The normal pension payable to an employee upon his retirement shall be annual amount equal to two per cent of whichever is the lesser of (

a) his average annual salary for the five consecutive years of his pensionable service during which his salary was the highest, or (

b) sixteen thousand dollars, multiplied by the total number of years of his pensionable service computed to the nearest complete month thereof or by thirty-five, whichever number is the less. '

Section 21 is amended by striking out the words and figures "he shall upon retirement receive a normal pension under the provisions of

section 19" and by substituting the words and figures "the Board may, in its discretion, select for him a normal pension or one of the alternative pensions referred to in

section 20".

Section 23a is struck out and the following

section is substituted: 23a.

(1) This

section applies to any person who resigns or is discharged from the service of the Government, the Legislative Assembly or the University of Alberta, or from the service of any of the employers referred to in

section 34 and who (

a) was at the time of the termination of his service a contributor pursuant to this Act, and (

b) had been a contributor for a period of not less than ten yeal'S, but who was not eligible upon the termination of his services to receive a pension pursuant to this Act.

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

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

section 23, together with a like amount from the General Revenue Fund, or (

b) a deferred pension, as provided in this section, when he attains the age of sixty years.

(3) Where an employee is otherwise discharged or re­ signs, he is entitled to receive at his option (

a) at the time of his discharge the amount standing to his credit in the records of the Board as pro­ vided by

section 23. or (

b) a deferred pension, as provided in thi~ section, when he attains the age of sixty years.

(4) Where a former employee elects to receh"e a de­ ferred pension under this section, the same shall at his option be

Section 25, subsections (3) and (4) presently read: "

(3) Where a deceased employee's beneficiary is his widow or his dependent child or children under the age of eighteen years, the bene­ ficiary is also entitled to receive a further sum equal to the amount standing to the credit of the employee's account.

(4) Where the service of an employee at the date of his death has not been less than ten years, or in the case of a member of the Executive Council, not l,ess than five years, and where his beneficiary is his widow, his widow may with the approval of the Board be paid, in lieu of the payments under subsection (3), a pension of the same amount as would have been payable if the employee immediately before his death had retired under the provisions of clause (

b) of subsection (1) of

section 11 and had been entitled to ex,ercise and had exercised the option given under

section 20 of receiving a pension during the joint lives of himself and his wife and during the li:tle of the survivor.".

4 (

a) a normal pension as determined under

section 19, or (b) !in alte.rnative pension of any of the types specified In

sectIon 20.

(5) A former employee who has elected to receive a de­ ferred pension under this

section may at any time there­ after, at his written request, receive in lieu thereof the payment specified in clause (

a) of subsection (2) or clause (

a) of subsection (3), as the case may be, in which case his election to receive a deferred pension thereupon be­ comes null and void.

(6) If a former employee is re-employed by any of the employers referred to in subsection (1) and again becomes eligible to make contributions under this Act, (

a) he may pay to the Provincial Treasurer upon such terms as the Board may prescribe (

i) the total amount of any payment made to him under clause (

a) of subsection (2) or under

section 23, and (ii) interest on such amount from the date of his re-employment to the date of completion of such payment in full, and upon such payment being made in full his employment prior to the termination of his service shall be deemed to be part of his pensionable service, or (

b) any election made by him to receive a deferred pension becomes null and void, and his employment prior to the termination of his service shall be deenled to be part of his pensionable serYice.

Section 25 is amended (

a) as to subsection (3) by striking out the word "eighteen" and by substituting the words "twenty­ one", (

b) by striking out subsection (4) and by substituting the following:

(4) Where the pensionable service of an em­ ployee at the date of his death has not been le5~ than ten years, or in the case of a member of the Executive Council not less than five years, and where his beneficiary is his widow, his widow may elect to be paid in lieu of the p~l:vments under subsection (3) (

a) a normal pension pursuant to

section 19, or (

b) a pension of the same amount as would have been paya.ble if the emplo~'ee immediatel~' be­ fore his death had retired under the proYisions of clause (

b) of subsection (1) of srction 11 and had been entitled to exercise and had exercised the option given under

section :20 of receiving a pension during the joint lives of himself and his wife and during the life of the survivor.

=~13.

Section 28 presently reads: "28. The interest that by this Act any employee has in the General Revenue Fund or the interest of an employee in any pension or other benefit granted under this Act (

a) is not subject to garnishee proceedings or attachment or seizure, or any legal process, except in respect of a charge of failure to account for public moneys, and (

b) is unassignable.". 14. The scope of

section 3-2 relating to reciprocal agreements is widened.

Section 32, subsection (1) presently reads: "32.

(1) The Board may enter into reciprocal agreements with any body or corporation (

a) that has been established by or is operating on behalf of the Government, and (

b) tbe employees of which are subject to a retirement pension plan or superannuation plan involving employee contributions, for the purpose of transferring any benefits that a person, who is being transfered from or to the employment of the Goverment or the Legis­ lative Assembly to or from the employment of the body or corporation, is entitled to, or to which a teacher, who is being transferred from or to the employment of the Government or the Legislative Ass,embly to or from the employment of an employer witll.in the meaning of The Teachers' RetiI'ement Fund Act, is entitled.". 15. Commencement of Act.

Section 28 is amended by renumbering the

section as subsection (1) and by adding the following after the renumbered subsection (1):

(2) Nothing in subsection (1) shall be construed so as to prevent an employee (

a) from authorizing the deduction from his pension payments of premiums for hospitalization or medi­ cal insurance, or (

b) from authorizing the payment of any moneys payable to him under this Act on his resignation or discharge directly over to another retirement pension plan in which the employee becomes en­ titled to participate after his resignation or dis­ charge.

Section 32 is amended by striking out subsection (1) and by SUbstituting the following: 32.

(1) The Board may enter into reciprocal agree­ ments with any government or public body or local author­ ity as defined in The Local Authorities Pension Act, whose employees are subject to a retirement pension plan or superannuation plan involving employee contributions, for the purpose of transferring any benefits (

a) to which a person who transfers from or to the employment of the Government or Legislative As­ sembly to or from the employment of such govern­ ment or public body or local authority, is entitled, or (

b) to which a teacher who transfers from or to the employment of the Government or the Legislative Assembly to or from the employment of an employer within the meaning of The Teachers' Retirement Fund Act, is entitled, and, subject to the approval of the Lieutenant Governor in Council, such an agreement may be made retroactive in effect. 15. This Act comes into force on the first day of April, 1962.

No. 118 FOURTH SESSION FOURTEEN'TH LEGISLATURE 10 ELIZABETH II 1962 BILL

An Act to amend The Public Service Pension Act Received and read the First time Second time Third time HON. MR. HOOKE Title: 1962 (14th, 4th) Bill 118,

An Act to amend The Public Service Pension Act