Bill 45 — Third Session, 20Th Legislature, 34 Elizabeth Ii the Legislative Assembly of Alberta Bill 45 Local Authorities Pension Plan Act the Provincial Treasurer (Legislature 20, Session 3)

L20 S3 3383

Alberta — Bills

1985 BILL 45 Third Session, 20th Legislature, 34 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 45 LOCAL AUTHORITIES PENSION PLAN ACT THE PROVINCIAL TREASURER First Reading ....^....w^^:...^,., • -^..^ Second Reading « Committee ofthe Whole ~ Third Reading Royal Assent ,

Bill 45 BILL 45 1985 LOCAL AUTHORITIES PENSION PLAN ACT (Assented to . 1985)

Interpretation The Plan TABLE OF CONTENTS Local Authorities Pension Plan PART1 ADMINISTRATION Division 1 The Minister Administration of the Plan ^ Report to the Legislative Assembly ^ Division 2 The Local Authorities Pension Plan Board Establishment, composition, term of office, etc. ^ Chairman and vice-chairman ° Support services ' Objects of the Board ° Advisory functions of the Board ^ ^ Board's power to extend time limits, etc. 10

PART 2 PARTICIPATION The participants |^ Normal pensionable age ^^

PART 3 CONTRIBUTIONS Disposition of contributions ^^ Participant current service contributions |^ Employer contributions ' ^

PART 4 PENSIONABLE SERVICE Computation of pensionable service ^" PARTS BENEFITS

Definitions ^' 1

Division 1 Retirement Benefits Pension on retirement at normal pensionable age 18 Alternative forms of pension 19 Co-ordination of certain pensions with CEP and O.A.S. 20 Pension on early retirement 2I Pension on late retirement 22 Disability pensions 23 Postponement of pension 24 Spousal protection 25 Failure to select pension 26 Pension adjustments 27 Division 2 Death Benefits Benefit on death before commencement of pension 28 Additional payments for spouse or dependent minor 29 Division 3 Benefits on Termination Termination after 5 years' pensionable service 30 Termination before 5 years' pensionable service 31 Division 4 Miscellaneous Transfer of pensions under reciprocal agreements 32 Beneficiaries 33 Matrimonial property orders 34

PART 6 APPEALS Appeal to the Board 35 Appeal to the Court of Queen's Bench 36

PART 7 MISCELLANEOUS Advance against pension 37 Actuarial tables 38 Participation statement 39 Exercise of benefit choice 40 Payment of benefits 41 Liability of benefits to legal process 42 Prohibition against assignment 43 Overpayments and deficiencies 44 Return of money 45 Retentions for default 46 Rights and obligations under former Act 47 Lieutenant Govemor in Council regulations 48 Ministerial regulations 49 Application of regulations 50 PARTS CONSEQUENTIAL, TRANSITIONAL, REPEAL AND COMMENCEMENT Consequential 51 Transitional 52 Temporary provisions 53 Repeal 54 Coming into force 55

HER MAJESTY, by and with the advice and consent ofthe Legislative Assembly of Alberta, enacts as follows:

Interpretation 1(1) In thiS Act, (a) "benefit" means a retirement benefit, death benefit or benefit on termination under

Part 5; (b) "Board" means the Local Authorities Pension Plan Board established by

section 5; (c) "contributions" means contributions under the Plan, and in cludes contributions under the former Act that are of a nature corresponding to those in question; (d) "current service contributions" means a participant's contri butions under

section 14(1), and includes contributions under

section 14(5); (e) "employee" means (

i) a person employed on a full-time continuous basis by a local authority or a prescribed public board, commission or other public body established by or under

an Act of the Legislature in an occupational group that, on application by that body to the Minister, is approved in relation to that body by the Minister in writing, (ii) any other person who is employed by a body referred to in subclause (

i) under a contract of service in an occupational group that, on application by that body to the Minister, is approved in relation to that body by the Minister in writing and satisfies the criteria prescribed for the purposes of this subclause, or (iii) any other person prescribed to be an employee of a body referred to in subclause (i), and, where so prescribed, includes a member of a corporation that is a body referred to in subclause (i), but does not include (iv) a person to whom the Public Service Management Pen sion Plan Act, the Special Forces Pension Plan Act or the Teachers' Retirement Fund Act applies, or (

v) any other prescribed person; (f) "employer" means a local authority or any other person who employs a participant or otherwise occupies an employer or for mer employer relationship in relation to a participant and, in relation to a person who is a participant by virtue of his being a member of a corporation, includes that corporation; (g) "former Act" means the Local Authorities Pension Act; (h) "local authority" means (

i) the council of a city, town, village, county or municipal district in Alberta or the board of administrators of a new town.

(ii) the board of trustees of a school division or school dis trict in Alberta, (iii) the board of a hospital that is an approved hospital under the Hospitals Act, (iv) a Mental Health Hospital Board established under the Mental Health Act, (

v) a regional planning commission established under the Planning Act, (vi) a regional services commission established under the Re gional Municipal Services Act, (vii) the Alberta Association of Municipal Districts and Counties, (viii) the Alberta Urban Municipalities Association, (ix) the Alberta School Trustees' Association, and (

x) the Alberta Hospital Association; (i) "Minister" means the member of the Executive Council charged by the Lieutenant Govemor in Council with the admin istration of this Act; (j) "normal pensionable age" means the age specified in

section 12; (k) "participant" means a person who is a participant ofthe Plan by virtue of

section 11; (1) "pension" means a pension under the Plan; (m) "pensionable service" means service in respect of which con tributions have been made under

section 14 or 16; (n) "Plan" means the pension plan continued by

section 2 as the Local Authorities Pension Plan; (o) "prescribed" means prescribed or otherwise provided for by regulations made by the Lieutenant Govemor in CouncU or, where so specified, by the Minister; (p) "prior service" means any service other than that for which current service contributions are made; (q) "reciprocal agreement" means a reciprocal or any other agreement entered into under

section 32(2), and includes an order under

section 32(3); (r) "salary" means (

i) an employee's gross basic pay for the performance of the regular duties of his employment, excluding, except as pre scribed by the Minister, any expense allowance, overtime payment, special remuneration or other similar compensa tion, or (ii) in the case of an employee falling within a prescribed class of employees, the pay or deemed pay prescribed in re spect of that class as salary;

(s) "service" means a period before a person's normal pension able age during which a person is or was employed by an em ployer, a party to a reciprocal agreement or a public body ap proved by the Minister, and includes (

i) a period of service in the Canadian or allied forces, or in a merchant navy serving the Canadian or allied cause, during World War II or the Korean Conflict, (ii) a period of service as a member ofthe Legislative Assem bly, the Executive Council or the Parliament of Canada, and (iii) any other period prescribed as service; (t) "spouse" means (

i) a person who, at the relevant time, was married to a par ticipant or former participant, and (

A) was not judicially or otherwise separated from him, or (

B) if so separated, was wholly or substantially dependent on him, (ii) if there is no person to whom subclause (

i) applies, a person of the opposite sex who (

A) lived with the participant or former participant (

I) for the 5-year period immediately preceding the relevant time, or (II) for the 2-year period immediately preceding the relevant time if there is a child bom to that person and the participant or former participant, and (

B) was, during that period, held out by the participant or former participant in the community in which they lived as his consort, or (iii) if there is no person to whom subclause (

i) or (ii) applies, a person who was married to but separated from the partici pant or former participant and not dependent on him at the relevant time.

(2) The Lieutenant Govemor in Council may, for the purposes of this Act, by regulation define any expression used in this Act but not defined, and the expression has the meaning so defined. Local Authorities Pension Plan The Plan 2 Thc pcnsion plan provided for by and under the former Act is continued, subject to this Act and the regulations, as the Local Au thorities Pension Plan.

Administration ofthe Plan Report to the Legislative Assembly PART1 ADMINISTRATION Division 1 The IVIinister 3 The Minister shall administer the Plan. 4(1) The Minister shall prepare and lay before the Legislative As sembly a report on the operation of the Plan with respect to each fiscal year.

(2) The report must include a statement of the most recent estimate by the Minister of the actuarial liabilities of the Plan.

(3) The Minister shall conduct an estimate ofthe actuarial liabilities of the Plan at least once every 5 years. Establishment, composition, term of office. Chairman and vice-chairman Support services Objects of the Board Division 2 The Local Authorities Pension Plan Board 5(1) There is hereby established a board known as the Local Au thorities Pension Plan Board.

(2) The Board shall consist of not fewer than 5 persons appointed members of the Board by the Lieutenant Govemor in Council.

(3) The Lieutenant Govemor in Council shall appoint 1 ofthe mem bers of the Board from among participants and another from among persons nominated by the employers.

(4) A member ofthe Board holds office for the term fixed in relation to him by the Lieutenant Govemor in Council.

(5) The Minister may prescribe the remuneration and expenses to be paid to members of the Board.

(6) The Board may make mles respecting the calling of and the con duct of business at its meetings. 6(1) The Lieutenant Govemor in CouncU shall designate one ofthe members of the Board to be the chairman and another member to be the vice-chairman of the Board.

(2) The vice-chairman shall act as chairman when the office of chair man is vacant or when the chairman is absent or unable to act. 7 The Minister shall provide such supplies, services and accom modation as he considers necessary to enable the Board to fulfil its objects. 8 The objects of the Board are (

a) to conduct the hearing of appeals under

Part 6; (

b) to provide advice to the Minister under

section 9; (

c) where appropriate, to extend time limits and treat benefit choices as revoked under

section 10;

Advisory functions of the Board Board's power to extend time limits, etc. (

d) to exercise and perform any other powers and duties assigned to it by this Act and the regulations; (

e) to perform any other duties relating to the Plan that are as signed to it by the Minister. 9 The Board may advise the Minister respecting any matters relat ing to the Plan, including (

a) the adequacy of contributions to meet benefits, (

b) adjustments to pensions under

section 27, (

c) rates of interest for the purposes of the Plan, (

d) benefits, (

e) reciprocal agreements, (

f) recognition of prior service, (

g) eligibility and participation in the Plan, and (

h) the actuarial tables prescribed or to be prescribed by the Min ister. 10(1) Where (

a) a person fails to meet a time limit under the Plan, (

b) the failure will or could result in a person's obtaining different benefits than those he would have obtained had the time limit been met, and (

c) the Board is satisfied that the failure results from circum stances that import no material fault on the part of that person, the Board may, on application to it, extend the time limit.

(2) Where (

a) the circumstances set out in subsection (l)(a), (

b) and (

c) apply, (

b) the benefit has been received or has commenced to be paid, and (

c) the Board is satisfied that a choice, including a deemed choice, that would otherwise be irrevocable under

section 40(2) could materially prejudice the best interests of the recipient or his de pendants, the Board may, on application to it, treat that choice as revoked, extend the time limit for making the choice and order any conse quential adjustments in the benefits.

(3) Where (

a) a benefit choice has been made, and (

b) the Board is satisfied that (

i) the choice communicated to the Minister was not that which the person making the choice actually intended, and

(ii) the application mentioned in this

section does not result from a change in a person's circumstances affecting the choice, the Board may, on application made to it within 3 months from the date when the benefit was received or commenced to be paid, treat the choice as revoked and substitute for it the choice which, in the Board's opinion, the person originally intended to make and order any consequential adjustments in the benefits.

PART 2 PARTICIPATION The participants 11(1) Subjcct to any prescribed modifications and conditions, the following are the persons who are to participate in the Plan: (

a) employees of a local authority who, in relation to that local authority, are in an occupational group referred to in

section l(l)(e)(

i) or (ii); (

b) employees who immediately before the commencement of this

section were participating in the pension plan under the for mer Act; (

c) employees of a prescribed public board, commission or other public body established by or under

an Act of the Legislature who, in relation to that body, are in an occupational group re ferred to in

section l(l)(e)(

i) or (ii); (

d) academic staff members, within the meaning of the Colleges Act, of a college established under that Act and any other em ployees designated by the board of govemors of such a college; (

e) members of any other class of employees prescribed to be participants. (2) Subsection (1) does not apply to an employee (

a) who has attained normal pensionable age, (

b) who, (

i) by reason of age, cannot accrue 5 years' pensionable ser vice, or (ii) by reason of age, could accme 5 years' pensionable ser vice only if he had prior service recognized and does not undertake, within such period after commencing his current service as is prescribed by the Minister, to have that prior service recognized, (

c) who, immediately before the commencement of this section, was not included in the operation of the former Act by virtue of

section 24 ofthe regulations under that Act (Alta. Reg. 561/62), unless she applies to the Minister to be a participant in the Plan, (

d) who is in receipt of a pension in respect of his own pension able service, (

e) being an academic staff member of a college, who notifies the college board that he wishes to continue his participation in an- 8

Normal pensionable age Other pension plan approved by the Minister responsible for the Colleges Act, (

f) who does not satisfy conditions prescribed as being necessary for participation, or (

g) who falls within any class of employees prescribed as being (

i) excepted, or (ii) withdrawn from the Plan.

(3) Where a class of employees is prescribed as being withdrawn from participation in the Plan, the Lieutenant Govemor in Council may attach terms and conditions applicable to that particular with drawal.

(4) The Regulations Act does not apply to an order under subsection (3). 12 The normal pensionable age, for the purpose ofthe Plan, is 65 years of age.

PART 3 CONTRIBUTIONS Disposition of 13 All Contributions shall be made and remitted to the Provincial contributions jrcasurcr for disposition under the Pension Fund Act. Participant 14(1) Subjcct to this scction, a participant shall, at the intervals pre- coImibut'io''nr scribed by the Minister, make contributions at the rate of 6.25% of his salary.

(2) The Lieutenant Govemor in Council may by regulation alter the rate of current service contributions in respect of periods of pension able service during which participants fall under the Canada Pension Plan (Canada).

(3) Current service contributions are not to be made after a partici pant has accumulated 35 years of pensionable service.

(4) An employer or any other person who pays a participant's salary is liable for the remittance of the current service contributions, for which purpose he may withhold those contributions from the salary payments.

(5) An employer shall, on behalf of a participant, make contributions for the purposes of subsection (1) in such circumstances as are pre scribed. Employer contributions 15(1) Except as prescribed, as long as and at the same time as current service contributions are being made, the participant's employer shall make contributions at a rate equal to 1% ofthe participant's salary more than the rate applicable to the participant.

(2) An employer shall make such contributions in respect of prior service as are prescribed.

PART 4 PENSIONABLE SERVICE Computation of 16(1) Subjcct to this scction, in computing the length of pensionable f "VIM"^'''^ service that a person accumulated, the following periods of service, not exceeding 35 years in aggregate, are the periods to be taken into account: (

a) service after March 31, 1962 with an employer in respect of which current service contributions have been made; (

b) Vi of any service before April 1, 1962 completed with an employer in an occupational group which, in the opinion of the Minister, had the service been completed after that date, would have qualified the person as a participant under

section 11; (

c) where the contributions required by subsection (2) have been made and the terms and conditions prescribed in relation to the service in question have been satisfied, (

i) prior service with an employer, (ii) service that is recognized as pensionable service and is transferred into the Plan under a reciprocal agreement, (iii) service that would be pensionable service but for subsec tion (4), (iv) service that a deceased referred to in

section 29(2) could, when alive, have had taken into account as pensionable ser vice on payment of the required contributions, and (

v) any other service.

(2) Contributions for service described in subsection (l)(

c) shall be made in the amount and on the terms and conditions prescribed in relation to the service in question.

(3) Except as prescribed, service that is recognized as pensionable under any other pension plan under which a person is or will be entitled to receive or is receiving pension benefits may not be taken into account as pensionable service.

(4) Service in respect of which contributions made have been re lumed shall not be taken into account.

(5) For the purposes of subsection (1), the regulations may treat only part of the service referred to in that subsection as counting towards a person's pensionable service. PARTS BENEFITS

Definitions 17 In this Part, (a) "actuarially equivalent" means equivalent in accordance with the appropriate actuarial tables prescribed by the Minister; (b) "employee contributions" means (

i) current service contributions, (ii) any contributions for prior service made by a participant. 10

Pension on retirement at normal pensionable age (iii) any part of a sum transferred into the Plan under a re ciprocal agreement that is recognized by the Minister as em ployee contributions, and (iv) any contributions made under

section 16(2) for service described in

section 16(l)(c)(iii) that are recognized by the Minister as employee contributions; (c) "matrimonial property order" means a matrimonial property order within the meaning of the Matrimonial Property Act, or a similar order enforceable in Alberta of a court outside Allierta, that affects the payment or distribution of a person's benefits; (d) "normal pension" means a pension in the amount receivable under

section 18(2) and in the form specified in

section 18(4). Division 1 Retirement Benefits 18(1) In this section, "pensionable salary" means a person's average annual salary in the 5 consecutive years of (

a) his pensionable service, and (

b) any further service that would be pensionable service but only for its exceeding the 35-year aggregate limit referred to in

section 16(1), over which his average salary was the highest.

(2) Subject to subsection (3), a participant who (

a) ceases to be an employee at normal pensionable age, and (

b) has accumulated at least 5 years' pensionable service, becomes entitled to receive a pension in an annual amount equal to 2% of his pensionable salary multiplied by the number of years of his pensionable service.

(3) The Lieutenant Govemor in Council may by regulation alter the amount of the pension receivable under subsection (2) in respect of periods of pensionable service during which participants fall under the Canada Pension Plan (Canada).

(4) A pension under subsection (2) is payable for the life ofthe pen sioner or the term of 5 years, whichever is the longer. Alternative forms 19(1) A pcrson is entitled, as an altemative to taking a pension in o pension ^y^^ ^^^^ Specified in

section 18(4), to select a form of pension from one of the following: (

a) a single life pension, payable only for the tife ofthe pensioner; (

b) a guaranteed term pension, payable for the term selected by him of 10, 15 or 20 years or the life ofthe pensioner, whichever is the longer; 11

Co-ordination of certain pensions with C.P.R and O.A.S. Pension on early retirement (

c) a joint life pension, payable during the joint lives ofthe pen sioner and a nominee designated by him and which, after the death of either, continues to be payable (

i) in the same amount as the amount payable before the death, (ii) in the amount of % of it, or (iii) in the amount of V2 of it, to the survivor for his life.

(2) As a further altemative, the Minister may, on the application of the person entitled, allow that person to select a pension in a form not described in subsection (1) but that the Minister considers is best suited to the person's circumstances.

(3) Where an altemative form of pension is selected under subsec tion (1) or (2), the pension shall be in an amount that is actuarially equivalent to the pension to which it is an altemative.

(4) The term under a guaranteed term pension under the Plan may not end later than the day before the pensioner's 86th birthday. 20 Notwithstanding anything in the Plan, in the case of pensions commencing before the age of 65 years, the Minister may prescribe bases for co-ordinating pensions with the estimated Canada Pension Plan retirement pension and Old Age Security benefit on an actuarial equivalency basis. 21(1) A participant (

a) who ceases to be an employee on attaining or having attained the age of 55 years but not normal pensionable age, and (

b) whose combined age and pensionable service amount to not less than 85 years, becomes entitled to receive a normal pension or a benefit referred to in

section 30(b).

(2) A participant (

a) who ceases to be an employee on attaining or having attained the age of 55 years but not normal pensionable age, (

b) who has accumulated at least 5 years' pensionable service, and (

c) to whom subsection (1) does not apply, becomes entided to receive a benefit described in subsection (3).

(3) The benefits referred to in subsection (2) are (

a) one referred to in

section 30(

a) or (b), (

b) a pension in the form of a normal pension and in an amount that is actuarially equivalent to the normal pension that would be payable to him if his age were the lower of normal pensionable age and 85 years less his pensionable service, or (

c) where the prescribed circumstances apply, a normal pension. 12

Pension on late retirement Disability |)cnsions Postponcmcnl of pension 22 A former participant who (

a) ceases to be an employee after continuing to be an employee beyond his normal pensionable age, and (

b) has accumulated at least 5 years' pensionable service becomes entitled to receive a pension in the form of a normal pen sion and in an amount that is actuarially equivalent to the normal pension that would have been payable to him at normal pensionable age. 23(1) Subject to subsection (3), a person who (

a) has accumulated at least 5 years' pensionable service, (

b) satisfies the Minister as to his total mental or physical inca pacity for gainful employment, and (

c) either (

i) ceases to be an employee and a participant as a result of that incapacity, or (ii) had elected to receive a deferred pension under

section 30(c), and has not yet received any pension payments, becomes and, subject to regulations under

section 48(1 )(1), is entitled to receive a normal pension.

(2) Subject to subsection (3), a person who (

a) has accumulated at least 5 years' pensionable service, (

b) satisfies the Minister that he (

i) has become incapable of effectively performing his regular duties as a result of his mental or physical incapacity, and (ii) is not wholly incapacitated from entering into gainful em ployment, and (

c) either (

i) ceases to be an employee and a participant as a result of that incapacity, or (ii) had elected to receive a deferred pension under

section 30(

c) and has not yet received any pension payments, becomes and, subject to regulations under

section 48(1 )(1), is entitled to receive a pension in the form of a normal pension and in an amount that is actuarially equivalent to the normal pension that would be payable to him if his age were the lower of normal pen sionable age and 85 years less his pensionable service.

(3) A person is not entitled to receive any pension if he is receiving benefits under a disability plan that satisfies the criteria prescribed for disability plans and is filed with the Minister. 24(1) A person who is to receive a pension under

section 18, 21, 22 or 30(

c) may postpone commencement of his pension to any date up to his attaining the age of 70 years. 13

Spousal protection Failure to select pension Pension adjustments

(2) When a pension that was postponed becomes payable, it shall be in the form of a normal pension and in an amount that is actuarially equivalent to the normal pension or the pension in the form of a normal pension that would have been payable had the postponement not been made. 25(1) In this section, (a) "pensioner" includes a prospective pensioner; (b) "spouse" means the person, if any, who is or was the spouse of a pensioner at the time (

i) when he makes his choice as to the form of pension pur suant to a request by the Minister under

section 26, or (ii) if he does not make that choice, when he is deemed under that

section to have chosen the pension mentioned in that section.

(2) Notwithstanding anything in this Act except subsection (3), a person who is to receive a pension and who has a spouse shall be deemed for the purposes of the Plan to have chosen a joint life pension referred to in

section 19(l)(c)(ii) with the spouse as the des ignated nominee. (3) Subsection (2) does not apply where (

a) there is filed with the Minister, before the pension com mences to be paid, (

i) a statutory declaration in the form prescribed by the Min ister by the spouse that (

A) contains a statement indicating that the spouse is aware of his rights under this

section and waiving those rights, and (

B) is signed by the spouse in the presence of the person before whom the declaration is administered and outside the immediate presence of the pensioner, or (ii) a matrimonial property order, or (

b) the pensioner has chosen a joint life pension referred to in

section 19(l)(c)(

i) or (ii) with the spouse as the designated nomi nee. 26 Where a person who is entitled to a choice of pensions is re quested in writing by the Minister to make the choice and he fails to do so within 3 months after the request is sent, he shall be deemed for the purposes of the Plan to have chosen a guaranteed term pen sion referred to in

section 19(l)(

b) on a 10-year basis. 27(1) Notwithstanding anything in this Act, the Lieutenant Gover nor in Council may by regulation, for the purpose of maintaining approximate parity with the cost of living, make adjustments in the amounts payable as pensions.

(2) No adjustment under subsection (1) may reduce a person's pen sion to an amount below that to which the Plan, apart from that subsection, entitles him. 14

Additional payments for spouse or dependent minor Division 2 Death Benefits Benefit on 28 Whcrc a person, other than a pensioner, who has employee con- commSeemeni tributions in the Plan that have not been retumed to him dies, an of pension amount equal to the unretumed employee contributions, with inter est, shall be (

a) paid to his surviving spouse, or (

b) if he has no spouse surviving him, paid to the person entitled to receive any benefit on his death. 29(1) Where (

a) the person entitled to payment under

section 28 is (

i) the surviving spouse of the deceased, or (ii) a dependent minor child of his, and (

b) the deceased had accumulated at least 5 years' pensionable service or died while he was an employee, the spouse or the dependent minor child is also entitled to receive a further amount equal to the current service contributions and any other prescribed employee contributions not previously returned to the deceased, with interest.

(2) Where the deceased had accumulated at least 5 years' pensiona ble service and had a surviving spouse entitled to payment under

section 28, his spouse may elect to be paid, instead of the payments under subsection (1) and

section 28, (

a) the pension that would have been payable if the deceased, immediately before his death, had ceased to be an employee and a participant under the circumstances referred to in

section 23(1) and had been entitled to exercise and had exercised the option described in

section 19(l)(c)(

i) with his spouse as the designated nominee, or (

b) subject to

section 19(4), a pension, payable for the term se lected by the spouse of 5, 10, 15 or 20 years or the life ofthe spouse, whichever is the longer, that is actuarially equivalent to the pension provided for under clause (a). Termination after 5 years' pensionable service Division 3 Benefits on Termination 30 Where a participant who has accumulated at least 5 years' pen sionable service ceases to be an employee before he becomes entitied to receive a pension, he may choose (

a) to receive an amount equal to the employee contributions not previously retumed to him, with interest, (

b) to have the amount specified in clause (a), together with any other money that is transferable under a reciprocal agreement, transferred to a pension plan that is accepted for registration 15

Termination before 5 years' pensionable service under the Income Tax Act (Canada) and operated by the other party to the agreement, or (

c) to receive, when or after he attains the age of 55 years, a pension in the form of a normal pension and in an amount that is actuarially equivalent to the normal pension that would be payable to him if his age were the lower of normal pensionable age and 85 years less his pensionable service. 31 Where a participant who has accumulated less than 5 years' pen sionable service ceases to be an employee, he may elect to receive the benefit specified in

section 30(

a) or (b). Transfer of pensions under reciprocal agreements Beneficiaries Division 4 Miscellaneous 32(1) The Lieutenant Govemor in Council may prescribe conditions goveming the provisions to be included in or excluded from recip rocal agreements or particular reciprocal agreements entered into or made after the commencement ofthis section, and the Minister shall ensure that those reciprocal agreements comply with those condi tions.

(2) The Minister may enter into a reciprocal or any other agreement with any govemment, local authority or other public body, or any private body that has assumed any of the functions of an employer or any of whose functions an employer has assumed, any of whose workers is subject to a pension plan, for the purposes of enabling the transfer of pension entitlements between the Plan and any such plan.

(3) Where the Govemment is responsible for the other pension plan, the Minister may make an order dealing with any subject-matter that could be dealt with under an agreement with another party under subsection (2).

(4) The Regulations Act does not apply to an order under subsection (3).

(5) An agreement entered into under subsection (2) is not invalid by reason only of its failing to comply with the conditions prescribed under subsection (1). 33(1) Any person on whose death a benefit is payable is a participant for the purposes of

section 47 of the Trustee Act.

(2) Where a person designates a person to receive a benefit payable on his death, whether beneficially or in a representative capacity, or revokes a designation so made, the designation or revocation may be filed with the Minister.

(3) Where a person designates his estate as being entitled to receive a benefit payable on his death, or makes a designation using words indicative of his estate or of the representative capacity of his per sonal representative, he shall be deemed to have designated the per sonal representative of his estate in his representative capacity 16

Matrimonial property orders

(4) Where (

a) at the date of the death of a person on whose death a benefit is payable, there is no valid designation by him filed with the Minister, or (

b) after his death, but before any payment is made under sub section (5), there is filed with the Minister a valid revocation by him of a designation filed with the Minister and no valid designation is filed with the Minister before any such payment is made, the person entided to receive any benefit payable on his death is the deceased's spouse, if he is survived by a spouse, or the personal representative of the deceased's estate, if there is no surviving spouse.

(5) When a benefit is paid to a surviving spouse or the personal representative of an estate by virtue of the operation of subsection (4), the payment is validly made as against the Govemment notwith standing that a designation is filed under the Plan after the payment is made, and the person who would have been entitled under the designation has no right to any benefit as a result of the designation.

(6) Where a benefit is paid by virtue of the operation of subsection (4), the Board may not exercise its powers under

section 10 in rela tion to a designation that was not filed before the payment.

(7) A benefit paid on the death of any person otherwise than to the personal representative of a deceased's estate is not part ofthe estate of the deceased and is not subject to the claims of his creditors.

(8) The right of any person under

section 47 of the Trustee Act or this

section to a benefit is subject to any rights given by Division 1 or 2 to any other person. 34 Subject to

section 42, the right of any person to receive a benefit is subject to the rights of a spouse or former spouse of his arising under a matrimonial property order. Appeal to the Board

PART 6 APPEALS 35(1) A party aggrieved by a decision of the Minister under or in relation to Parts 2 to 5 or the prescribed provisions ofthe regulations, other than a decision under

section 32 or one that could be the subject-matter of an application under

section 10, may appeal against that decision to the Board.

(2) A party wishing to appeal to the Board under this

section must serve the chairman of the Board with a notice of appeal in the form prescribed by the Minister within 30 days of being notified in writing of the decision appealed against or within such longer period as the Board may, on application, allow.

(3) The notice of appeal must specify the decision appealed against and the grounds of appeal.

(4) The Board may identify persons who may be interested in the appeal and may give directions as to the persons to be served with the notice of appeal, whether or not they are parties. 17

Appeal to the Court of Queen's Bench

(5) For the purposes of conducting an appeal under this section, the Board (

a) has all ofthe duties, powers, privileges and immunities given to a commissioner appointed under the Public Inquiries Act by sections 3, 4, 7 and 9 of that Act, and (

b) shall be deemed to be a person authorized for the purposes of

section 1(

a) oi XhQ Administrative Procedures Act.

(6) The Board may confirm, vacate or vary the decision appealed against.

(7) The Board shall serve the appellant and persons who received a notice of appeal with a copy of its decision, including the reasons for the decision. 36(1) A party aggrieved by a decision ofthe Board under

section 35 may, within 30 days of the date of service of the Board's decision on him or such longer period as the Court may allow, appeal to the Court of Queen's Bench on a question of law or jurisdiction.

(2) The procedure in an appeal to the Court of Queen's Bench shall be the same as that provided in the Alberta Rules of Court for ap plications by originating notice.

(3) The Court of Queen's Bench, on hearing the appeal, may con firm, vacate or vary the decision of the Board or make any order it considers just.

PART 7 MISCELLANEOUS 37(1) Where there is a delay in processing a pension beyond 30 days from the effective date of the commencement of the pension, the Provincial Treasurer may advance money to the pensioner against the pension.

(2) An advance under subsection (1) does not constitute the com mencement of pension payments for the purposes of this Act. Actuarial tables 38 The actuarial tables to be used for the purposes of the Plan or for particular provisions ofthe Plan are those prescribed by the Min ister. Advance against pension Participation statement Exercise of benefit choice 39 The Minister shall, once in each year, provide each participant with a statement containing the information prescribed by the Min ister about the participant's participation in the Plan. 40(1) A person wishing to exercise a choice in relation to a benefit must do so by giving written notice to the Minister indicating the choice.

(2) Subject to

section 10(2) and (3), a choice made, including a choice deemed to be made, in relation to a benefit is irrevocable when, and is not irrevocable until, the benefit is received or commences to be paid. 18

Payment of benefits Liability of benefits to legal process Prohibition against assignment Overpayments and deficiencies Return of money Retentions for default Rights and obligations under former Act Lieutenant Govemor In Council regulations 41 The payment of all benefits is guaranteed by the Govemment. 42 A person's interest in a benefit is not subject to garnishee pro ceedings, attachment, seizure or any legal process, except pursuant to

section 46 or in respect of a failure to account for public money within the meaning of the Financial Administration Act. 43 A person may not assign his interest in a benefit. 44 Any overpayment of benefit paid or underpayment of contribu tion payable is recoverable by the Provincial Treasurer, with interest, as a debt due to the Government. 45 If the Minister finds that a person paid a contribution that was not, or was in excess of what was, payable, the Minister shall repay the contribution or the excess, with interest. 46(1) The Provincial Treasurer may withhold from any benefit pay able a sum sufficient to meet any amount by which the person en titled to the benefit is indebted under the Plan to the Govemment or an employer.

(2) The Provincial Treasurer may withhold from any grant payable to an employer under any other Act or any regulation a sum sufficient to meet any amount by which the employer is in default or which he is liable to remit to the Provincial Treasurer under this Act, together with any interest or penalty due on it.

(3) The Provincial Treasurer shall apply any money withheld under this

section in satisfaction of the debt or liability to the Govemment or, as the case may be, pay it to the employer for application in satisfaction of the debt or liability to the employer. 47(1) No person is entitled to any benefit or other right provided for by or under the former Act except in so far as the benefit or right is provided for by or under this Act. (2) Subsection (1) does not affect the amount of any benefit payment of which commenced before the commencement of this section.

(3) A person who was in receipt of a pension immediately before the commencement of this Act continues, subject to this Act and the regulations, to be entitled to receive that pension. 48(1) The Lieutenant Govemor in Council may make regulations (

a) withdrawing an occupational group of employees from par ticipation in the Plan following an application by their employer for withdrawal, and attaching general terms and conditions to a withdrawal; (

b) enabling an employer to require that an employee complete or have completed a period of service with an employer or a party to a reciprocal agreement before he becomes a participant; (

c) respecting the manner in which benefits are payable, includ ing the commutation of pensions; (

d) respecting the allowing of interest, except for overdue benefit payments; 19

(

e) respecting the charging of interest, except for overdue contri butions; (

f) respecting rates of interest; (

g) entitling an employee who has attained normal pensionable age and is stdl an employee of an employer on the date when the employees of that employer are brought under the Plan, or was retired without pension during the 12-month period preceding that date, to a pension in respect of his service prior to his at taining normal pensionable age on payment of contributions in respect of that prior service; (

h) modifying the participation in the Plan of any class of person whose circumstances or aspects of whose circumstances do not appropriately lend that class to full participation in the Plan, or modifying the Plan or any part of the Plan as it applies to them; (

i) respecting the suspension of pensions of pensioners who be come engaged to work for an employer or a former or successor employer again and the treatment of those persons for the pur poses ofthe Plan, including the tinkage ofthe separate periods of pensionable service and the repayment of amounts received as pension, with interest; (

j) respecting the suspension of pensions where relevant evidence required by or under regulations under

section 49(

i) or (

j) is not submitted; (

k) respecting disability plans and their filing with the Minister; (1) respecting the upgrading of partial disability pensions where the disability increases and the reduction or elimination of total or partial disability pensions where the disability decreases or terminates; (

m) prescribing the death benefit payable where a person who is entitled to a pension, or who would be so entitled but for its postponement, dies before making a choice as to the form of pension to be taken; (

n) prescribing any matter or thing that by this Act may or is to be prescribed by the Lieutenant Govemor in Council.

(2) Where the Lieutenant Govemor in Council makes regulations under subsection (l)(h), the participation of a class of persons re ferred to in that clause shall be made as comparable to full partici pation in the Plan as, in his opinion, is possible having regard to the circumstances of that class. Ministerial 49 The Minister may make regulations (

a) specifying tiines by and the manner in which contributions must be remitted; (

b) respecting the division of year's maximum pensionable earn ings over portions of a year for the purpose of determining cur rent service contributions; (

c) respecting the charging of interest or a penalty when contri butions are overdue; 20

(

d) respecting the allowing of interest when benefit payments are overdue; (

e) requiring employers periodically to (

i) report to the Minister on any matters relevant to their or their employees' participation in the Plan, and (ii) submit to the Minister an independent auditor's report stating that the employers have complied with their obliga tions under the Plan during the relevant period; (

f) respecting the calculation of benefits; (

g) respecting the times that constitute the effective dates for the commencement of pensions; (

h) respecting the times when guaranteed terms of years are to be treated as commencing or continuing; (

i) respecting the submission of evidence of age, marital status, the existence or identity of a spouse, mental or physical incapac ity for gainful employment, the fact of a person's being alive or any other fact relevant to determining eligibility for a benefit or the continuation of a pension or any other matter for which evi dence is required; (

j) respecting the type of evidence required for the purposes of clause (i); (

k) prescribing any matter or thing that by this Act may or is to be prescribed by the Minister. Application of 50(1) Rcgulatious uudcr this Act may be made to apply generally or regulations ^-^j^ rcspcct to particular components of the Plan.

(2) An order or regulation under or by reference to

section l(l)(

e) or (r)(i), 11, 27(1), 32(1) or 48(1 )(

a) is, if so provided in the order or regulation, effective from a date prior to that on which it would otherwise have been effective.

PART 8 CONSEQUENTIAL, TRANSITIONAL, REPEAL AND COMMENCEMENT Consequential 51

(1) The Collcgcs Act is amended (

a) by repealing

section 22; (

b) in

section 23 by striking out "Pension Act" and substituting "Pension Plan Act".

(2) Part 3 ofthe

Schedule to the Legislative Assembly Act is amended by striking out "Local Authorities Pension Board" and substituting "Local Authorities Pension Plan Board".

(3) Section 5(l)(

a) of the Pension Fund Act is amended by adding "Plan"after "Pension".

(4) Section 32(2) ofthe Public Service Management Pension Plan Act is amended by adding "Plan" after "Local Authorities Pension". 21

(5) The Public Service Pension Plan Act is amended (

a) in

section 32(2) by adding "Plan" after "Local Authorities Pension"; (

b) by repealing

section 51(6). (6)

Section 24(8) ofthe Teachers' Retirement Fund Act is amended by striking out "sections 22 and" and substituting "section". Transitional 52(1) The Local Authorities Pension Board shall transfer to the Min ister all the documents that were in its possession under the former Act, and documents filed with that Board shall be deemed for the purposes ofthis Act to have been filed with the Minister

(2) An order, regulation or resolution made by the Local Authorities Pension Board under the former Act shall, to the extent that it can be made applicable to and is consistent with this Act, be deemed to be a regulation under this Act until it is replaced by an equivalent regula tion under this Act.

(3) Notwithstanding

section 32 or anything to the contrary in this Act, subsisting reciprocal agreements entered into under the former Act are valid according to their terms untd rescinded in so far as they are not varied by a reciprocal agreement under that section. Temporary 5Z(1) Notwithstanding scctlon 14(1), the percentage of salary specified provisions ^^ ^^^ rate for current service contributions shall be (a) 5.25% in the calendar year 1985, (b) 5.50% in the calendar year 1986, (c) 5.75% in the calendar year 1987, and (d) 6.00% in the calendar year 1988.

(2) Contributions subject to the reductions under this

section are nevertheless current service contributions. Repeal 54 The Local Authorities Pension Act is repealed on Proclamation. Coming 55 Thls Act comcs into force on Proclamation. into force 22 Title: 1985 (20th, 3rd) Bill 45, Local Authorities Pension Plan Act

Document details

Collection	Alberta — Bills
Citation	L20 S3 3383
Type	bill
Volume / chapter	L20 S3 3383
Language	en
Format	json
Source	PROVINCIAL
Identifier	735ef7991c3989e5ed5825106b24d9964295ff17

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