Management Employees Pension Plan (Alta. Reg. 367/1993)

Alta. Reg. 367/1993

Alberta — Regulations

© Published by Alberta King’s Printer Alberta King’s Printer Suite 700, Park Plaza 10611 - 98 Avenue Edmonton, AB T5K 2P7 Phone: 780-427-4952 E-mail: kings-printer@gov.ab.ca Shop on-line at kings-printer.alberta.ca Province of Alberta Office Consolidation Alberta Regulation 367/1993 With amendments up to and including Alberta Regulation 10/2023 Current as of April 1, 2023 PUBLIC SECTOR PENSION PLANS ACT MANAGEMENT EMPLOYEES PENSION PLAN

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Note All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law.

(Consolidated up to 10/2023) ALBERTA REGULATION 367/93 Public Sector Pension Plans Act MANAGEMENT EMPLOYEES PENSION PLAN Table of Contents Application and

Interpretation 1 Application 2

Interpretation generally 3

Interpretation - employee 5

Interpretation - disability plan

Part 1 Administration 6 Fiscal year of Plan 7 Administration of the Plan 8 Report to Board 9 Forms

Part 2 Participation 1 0 The participants 1 1 Exceptions to participation

Part 3 Funding 1 2 Disposition of contributions 1 3 Participant ’s current service contributions 1 4 Participant ’s contributions respecting leave periods 1 5 Employer contributions for current service 1 6 Additional contributions 16.1 2007 lump sum paymen t towards employers’ share of unfunded liability 1 7 Interest on unpaid or un remitted contributions 1 8 Prior service contributions - evidence requirement 1 9 Transfer to combined pensionable service plan

AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 2

Part 4 Pensionable Service 2 0 Computation of pensionable service 2 1 Limit on pensionable and combined pensionable service 2 2 Requirement to apply and make payments in time 2 3 Method of making lump sum and instalment contributions - general provisions 2 4 Payment of balanc e on termination 2 5 Effect of leave without salary on instalment payments 2 6 Prior service liability - continuation of arrangements under former Act 26.1 Cessation of prior service arrangement payments 2 7 Partial credit of partially paid service 2 8 Interest on unpaid or unremitt ed prior service contributions

Part 5 Benefits 2 9

Interpretation and app lication of Subdivisions A 3 0

Interpretation and app lication of Subdivisions B 3 2 Limitation of benefits where ob tainable under Subdivisions A and B 3 3 Locking in - general provisions 33.1 Non-vested partial conversions and withdrawals 3 4 Imposition of locking in on other plans and vehicles 34.1 Commuted value and empl oyee contribution excess 34.3 Reduction based on unlocking fo r shortened life expectancy Division 1 Retirement Benefits Subdivision A For Service Before 1992 3 5 Limitation of benef its to meet tax rules 3 6 Normal pension based on age or service 3 7 Pension partner protection 3 8 Alternative forms of pension 4 0 Attainment of latest pension commencement date 4 1 Disability pensions 4 2 Disability pension adjustments 4 3 Postponement of pension 4 4 Failure to select pension 4 5 Death after entitlemen t to

section 36 pension

AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 3 Subdivision B For Service After 1991 4 6 Tax rule limitations on benefits 4 7 Normal pension based on age or age and service 4 8 Pension partner protection 4 9 Alternative forms of pension 5 0 Pension on early retirement 5 1 Attainment of latest pension commencement date 5 2 Disability pensions 5 3 Disability pension adjustments 5 4 Postponement of pension 5 5 Failure to select pension 5 6 Death after entitlemen t to

section 47 pension 56.1 Death after entitlemen t to

section 50 pension Division 2 Death Benefits 5 7 Application and

interpretation of Division 57.1 Waiver of pre-pension commencement death benefits 5 8 Return of prior, etc. service contributions Subdivision A For Service Before 1992 5 9 Benefit on death before commenc ement of pension - pension partner’s entitlements 6 0 Idem - where no pension partner , but eligible dependent minor children 6 1 Idem - where no pension partner or eligible dependent minor children Subdivision B For Service After 1991 6 3

Interpretation for Subdivision 6 4 Benefit on death before commenc ement of pension - pension partner’s entitlements 6 5 Idem - where no pension partner Division 3 Benefits on Termination Before Pension Eligibility 6 6 Application of Division 6 7 Return of prior service contributions 6 8 Locking in under reciproca l agreements and portability arrangements

AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 4 Subdivision A For Service Before 1992 6 9 Termination after 5 years ’ combined pensionable service 7 0 Termination before 5 years ’ combined pensionable service 7 1 Excess not transferred under s pecial portability arrangement Subdivision B For Service After 1991 7 2 Termination after 5 years ’ combined pensionable service 7 3 Termination before 5 years ’ combined pensionable service 7 4 Excess not transferred under s pecial portability arrangement Division 4 Cost-of-Living Increases Subdivision A For Service Before 1992 7 5 Cost-of-living increases 7 6 Increase by Minister of normal COLA Subdivision B For Service After 1991 7 7 Cost-of-living increases 7 8 Increase by Minister of normal COLA Division 5 Miscellaneous Subdivision A For Service Before 1992 7 9 Interest allowance 8 0 Co-ordination of certain pen sions with C.P.P. and O.A.S. 8 1 Pension commencement 8 2 Commencement of guaranteed term of years 8 3 Requirement of evidence 8 5 Prohibition against certain rec iprocal transfers of service 85.1 Special portability arrangements 8 6 Beneficiaries 8 7 Method of payment of pensions 8 8 Idem - conversion following death 8 9 Prohibition of pension suspension 90.1 Exemption for certain provincial supernumerary judges 90.2 Provincial judges and app lications judges - benefits 9 1 Continuation of existing p ensions and pension rights

Section 1 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 5 Subdivision B For Service After 1991 9 2 Interest allowance 9 3 Co-ordination of certain pen sions with C.P.P. and O.A.S. 9 4 Pension commencement 9 5 Commencement of guaranteed term of years 9 6 Requirement of evidence 9 8 Prohibition against certain rec iprocal transfers of service 98.1 Special portability arrangements 9 9 Beneficiaries 100 Method of payment of pensions 101 Idem - conversion following death 102 Prohibition of pension suspension 104 Continuation of existing p ensions and pension rights

Part 6 Miscellaneous 105 Interest chargeable 106 Advance against pension 107 Actuarial formulas 108 Exercise of benefit choice 109 Prohibition agains t assignment, etc. 110 Overpayments and deficiencies 111 Return of money 112 Retentions for debt 112.05 Requirements to file waivers and revocations

Part 7 Transitional and Commencement Provisions 116 Savings - suspensions of pension 119 Saving of reciprocal agr eements for notice purposes Schedules Application and

Interpretation Application 1 This Regulation constitutes the major part of the plan rules for the Management Employees Pension Plan (in these plan rules referred to as “the Plan”).

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 6

Interpretation generally 2(1) In these plan rules, (a) “Act” means sections 1 to 9.2 of and

Schedule 5 to the Public Sector Pension Plans Act; (b) “Act Schedule” means the Sc hedule 5 referred to in clause (a); (c) “actuarial equivalent” mean s the equivalent in actuarial present value, as calculated by the Plan’s actuary and approved in writing by the Minister; (d) “actuarial reserve” means the actuarial present value of benefits payable in the future in respect of a period of service already performed, including the portion of those benefits relating to expected future salary and cost-of-living increases, as determined by the Plan’s actuary and approved by the Minister; (e) “actuarial valuation report ” means a report prepared under

section 5(1) of the Act Schedule; (f) “actuary” means a Fellow of the Canadian Institute of Actuaries; (g) “additional contributions” means additional contributions under

section 9 of the Act Schedule; (h) “benefit” means a retirement benefit, a death benefit or a benefit on termination before pension eligibility, under

Part 5; (h.1) “combined pensi onable service” means (

i) pensionable service, and (ii) pensionable service (if any) under and within the meaning assigned to that phrase in the related plan (and whether or not continuously performed) provided that (

A) the person immediately became (

I) a participant of this Plan after ceasing to be a participant (within that meaning) of the related plan, or (II) a participant (with in that meaning) of the related plan after ceasing to be a participant of this Plan,

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 7 (

B) the person was employed by the same employer immediately before and immediately after that event, and (

C) the event described in paragraph (

A) occurred after January 1, 1994, regardless of when that service was accumulated; (h.2) “combined pensionable serv ice in the related plan” means combined pensionable service described in clause (h.1)(ii); (

i) repealed AR 221/2007 s32; (j) “commuted valu e” means the actuarial present value of accrued benefits, determined (

i) using the actuarial assumptions used in the current actuarial valuation report to determine the going concern liabilities value of the Plan or any simplified actuarial assumptions that reasonably reflect the actuarial assumptions used in the current actuarial valuation report to determine the going concern liabilities value of the Plan, and (ii) on the basis of actuarial assumptions and methods that are appropriate and in accordance with accepted actuarial practice; (k) “continuous basis” means, in relation to employment, a basis where no date or event, other than by reference to the attainment of the mandatory retirement age, if any, fixed with reference to the employment, has been established for the termination of the employment; (l) “contributions” means contributions, including additional contributions, under the Plan, and includes any payment referred to in

section 20(1)(d), before its repeal, or

section 20(1.1)(

d) or (

e) and contributions under the former Act that are of a nature corresponding to those in question; (m) “current service contribu tions” means a participant’s contributions under

section 13 or 14 or both, and includes current service contributions under and within the meaning of the former Act; (n) “dependent minor child” m eans, in relation to a deceased, a minor child who

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 8 (

i) was wholly or substantially supported financially by that other person immediately before that person’s death, and (ii) was not then married; (o) “disability plan” means a long term disability income continuance plan or program that satisfies the criteria specified in

section 5 and that is filed with the Minister, or compensation for temporary total disability or temporary partial disability referred to in

section 56(8) of the Workers’ Compensation Act; (p) “employee” means (

i) a person who is employed by an employer on a full- time continuous basis and to whom either of the following applies: (

A) if the employer is the Government, the person holds a position that (

I) is classified or designated by the Government as a management position, or (II) meets all of the criteria set out in subsection (1.1); (

B) if the employer is other than the Government, the person holds a position that is designated by an order of the Minister, including an order under the former Act, as a management position, (ii) a person referred to in subclause (i)(

A) or (

B) but who is employed by an employer under a contract of service if that contract provides for (

A) the person’s employment on a full-time but not a continuous basis, or (

B) the person’s employment other than on a full-time basis where the regularly scheduled hours of work are not fewer than 14 hours per week or 728 hours per year and the employment is on a continuous basis, and the employer, pursuant to the employer’s established policy for pension coverage of persons or classes of persons employed by the employer, applies

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 9 to the Minister for the person’s participation in the Plan, (iv) any person specified in

section 3(1), (2) or (5) to be an employee of an employer, or (

v) a person to whom

section 3(7) applies, and includes a member of a c orporation specified in

Part 3 of

Schedule 2 so long as that corporation is an employer, but does not include (vi) a person to whom (

A) the Universities Academic Pension Plan applies, or (

B) t h e Teachers’ Pension Plans Act or the Provincial Judges and Applications Judges Registered and Unregistered Pension Plans Regulation (AR 196/2001) applies, o r (vii) a member of the Legislative Assembly of Alberta; (q) “employer” means the Government or any person who employs a participant or otherwise occupies an employer or former employer relationship in relation to a person who is or was a participant and, in relation to a person who is a participant by virtue of being a member of a corporation, includes that corporation; (q.1) “family property order” means a family property order within the meaning of the Family Property Act, or a similar order enforceable in Alberta of a court outside Alberta, that (

i) is made in respect of a participant or former participant and the participant’s or former participant’s pension partner, and (ii) affects the payment or distribution of a benefit; (r) “financing rate” means, in relation to interest, the rate specified in

section 105(3); (s) “fiscal year” means the fi scal year of the Plan provided for in

section 6; (t) “former Act” means the Public Service Management Pension Plan Act and includes the Public Service

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 10 Management Pension Act or the corresponding provisions of it, and the regulations under the Act in question; (u) “full-time basis” means, in relation to an employment, a basis where the regularly scheduled hours of work in the employment are not fewer than 30 hours per week; (u.1) “Government” means the Crown in right of the Province of Alberta in its capacity as an employer; (u.3) “latest pension commencement date” means, in relation to a participant or former participant whose pension has not yet commenced, the last moment as of which that person is or was allowed to commence to receive the pension under the tax rules; (v) “leave with partial salary ” means a period of service (

i) during which a particip ant is, with the authority of the participant’s employer, on leave from all or a portion of the regular duties of the participant’s employment and is receiving remuneration that is less than regular salary from the participant’s employer, including leave with partial pay under the former Act, and (ii) that, if after 1991, is or was an eligible period of temporary absence or an eligible period of reduced pay under and within the meaning of the tax rules, but does not include a period during which the participant is in receipt of benefits under a disability plan; (w) “leave without salary” m eans a period of service during which a participant is, with the authority of the participant’s employer, on leave from the regular duties of the participant’s employment and is receiving no remuneration from the participant’s employer and includes leave without pay under the former Act, but does not include a period during which the participant is in receipt of benefits under a disability plan; (x) “locked-in retirement account” means a registered retirement savings plan that meets the conditions referred to in

section 1(1)(ff) of the Employment Pension Plans Act (SA 2012 cE-8.1); (

y) repealed AR 160/2019 s2; (z) “new reciprocal agreement” means a reciprocal agreement in respect of which all the conditions specified in the

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 11 repealed sections 84(2) and 97(2) had been fully met at the time in question; (aa) “old reciprocal agreement” means a reciprocal agreement that was not a new reciprocal agreement; (bb) “participant” mean s a person who is a participant of the Plan by virtue of

Part 2; (cc) “pension” means a pension under the Plan, but does not include a series of payments payable under

section 33(2.2)(b); (dd) “pension commencement” m eans the time established by

section 81 or 94 that constitutes the effective date for the commencement of the relevant pension; (dd.1) “pension partner” means (

i) a person who, at the relevant time, was married to a participant or former participant and had not been living separate and apart from him or her for 3 or more consecutive years, or (ii) if there is no person to whom subclause (

i) applies, a person who, as at and up to the relevant time, had lived with the participant or former participant in a conjugal relationship (

A) for a continuous period of at least 3 years, or (

B) of some permanence, if there is a child of the relationship by birth or adoption; (iii) repealed AR 196/2006 s10; (ee) “pensionable salary” means the salary of a participant that is compensation within the meaning of the tax rules, subject however to such limitation as is necessary to ensure that the benefit accrual for the calendar year, being the amount of benefit accrued in respect of that year’s pensionable service, as computed under the tax rules, does not exceed the defined benefit limit fixed by the tax rules for that year; (ff) “pensionable service” mean s, subject to clause (h.1) and to

section 20, service in respect of which contributions have been made under

section 13, 14, 20 or 26 or

section 14 or 16 of the former Act; (gg) “prior service” means any service other than

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 12 (

i) that for which current service contributions are or were made, or (ii) combined pensionable service in the related plan, and includes service that w as prior service under the former Act; (hh) “reciprocal agreement” m eans a reciprocal or any other agreement entered into before the commencement of the Public Sector Pension Plans (Legislative Provisions and Plans Portability Arrangements, 2007) Amendment Regulation under the repealed

section 84 or 97, and includes an order under the repealed

section 10(1) of the Regulations or an equivalent agreement or order under the former Act; (hh.1) “reference rat e” means the last weekly Wednesday rate of each month published by the Bank of Canada in CANSIM Series V80691336, which sets out the 5-year personal fixed term chartered bank deposit rates; (ii) “registered” means regist ered or accepted for registration under the Income Tax Act (Canada); (jj) “Regulations” mean s the portion of the Public Sector Pension Plans (Legislative Provisions) Regulation preceding the Schedules and

Schedule 5 to that Regulation; (kk) “related plan” means the Public Service Pension Plan; (ll) “salary”, subject to sections 29 and 30, means (

i) subject to subclause (ii), (

A) an employee’s gross basic pay (

B) repealed AR 144/2005 s2, (

C) repealed AR 69/2002 s2, that is related to the perfor mance of the regular duties of the employment, or (ii) in the case of an emplo yee who is receiving benefits under a disability plan or on leave without or with partial salary, the salary the employee was earning immediately before the employee commenced to receive those benefits or went on that leave, adjusted in accordance with any subsequent general adjustments in respect of the period in question that

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 13 are applicable to the class of employees that the employee was then in, but does not include any expense allowance, overtime payment, special remuneration or other similar compensation, except that it includes acting pay (that is, extra pay for the performance on a temporary basis of duties at a higher level than the duties referred to in subclause (i)) which the employer treats as salary under the employer’s established salary policy for pension purposes; (mm) “salary period” means th e length of time, related to a recurring salary payment cycle, for which an employee normally receives a payment of salary; (nn) “service” means (

i) any period that may be re cognized as eligible service under the tax rules, excluding any such period performed outside Canada that is not a period of employment with an employer, (ii) any other period before July 1, 2002 that was or is maintained as pensionable service as the result of

section 20(1.1)(

b) or (c), and (iv) combined pensionable se rvice in the related plan; (nn.1) “special portability arrangement” means an agreement under

section 85.1(1) or 98.1(1), or both; (oo) repealed AR 100/2002 s17; (pp) “tax rule excess” means any amount of money that, when a transfer is to be made from the Plan to a registered retirement savings plan, exceeds that amount that will, in the Minister’s opinion, be certain not to attract an income tax penalty under the tax rules in respect of the transfer; (qq) “tax rules” means those provisions of the Income Tax Act (Canada) or of the regulations under it, or of both, that apply to pension plans registered or to be registered under that Act and includes any approval, certification or other permission or any direction or order from the federal Minister of National Revenue the absence of which or failure to comply with which may make the Plan’s registration liable to revocation under that Act;

Section 2 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 14 (rr) “termination”, used in relation to a person, means that person’s ceasing to be an employee, under any circumstances other than death; (ss) “transfer” or “transferred” , where used with reference to the transfer of money from the Plan, means transfer or transferred (as the case may be) to another registered pension plan, to a registered retirement savings plan, to a locked-in retirement account or to any other registered vehicle that is designed to assist with retirement savings, to the extent, in the case of a transfer to a registered retirement savings plan, that the amount transferred does not constitute a tax rule excess and with any tax rule excess being paid to the person entitled; (ss.2) “vested” means, in relation to a participant, having (

i) accumulated at least 5 y ears’ combined pensionable service, or (ii) attained the age of 65 years; (tt) “year’s maximum pensi onable earnings” means the Year’s Maximum Pensionable Earnings within the meaning of the Canada Pension Plan (Canada).

(1.1) For the purposes of subsection (1)(p)(i)(A)(II), the following criteria must be met: (

a) the position is not cla ssified or designated as a management position; (

b) the position is not included in a bargaining unit or any other unit for the purposes of collective bargaining; (

c) pursuant to the Government’s established policy for pension coverage of persons or classes of persons employed by the Government, the classification or designation of the position entitles the holder of the position to participate in the Plan.

(1.2) For the purposes of subsection (1)(dd.1)(i), persons are living separate and apart (

a) if they are living apart and either of them has the intent ion to live separate and apart from the other, or (

b) if, before the relevant time, (

i) they had been living separate and apart for any period, and

Section 3 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 15 (ii) that period was interrupt ed or terminated by reason only that either of them became incapable of continuing to live separate and apart or of forming or having the intention to continue to live separate and apart of that person’s own volition, and the separation would probably have continued if that person had not become so incapable.

(2) References in these plan rules to a

section “of the Act”, where there is no reference to the Act Schedule, are references to a

section of the Public Sector Pension Plans Act preceding

Schedule 1 to that Act. AR 367/93 s2;184/96;151/98;7/2002;69/2002;100/2002; 301/2003;108/2004;144/2005;196/2006;34/2007;129/2007; 221/2007;105/2008;20/2009;154/2014;144/2018;7/2019; 160/2019;54/2020;136/2022

Interpretation - employee 3(1) For the purposes of the Plan, an employee who commences to receive benefits under a disability plan remains, while receiving those benefits, an employee of the employer who was employing him or her immediately before that time.

(2) For the purposes of the Plan, an employee who goes on leave without or with partial salary remains, while on that leave, an employee of the employer who authorized that leave.

(5) A person who has pensionable service that becomes combined pensionable service in the related plan on joining the related plan nevertheless remains an employee for the purposes of this Plan as well as being an employee for the purposes of the related plan as long as the person remains an employee within the meaning of the related plan.

(6) Before an employer makes an application under

section 2(1)(p)(ii), the employer shall formulate in writing a policy for determining, subject to that provision, the basis on which persons are eligible to become employees by virtue of that provision, and shall, on being requested to do so by the Minister, furnish the Minister forthwith with a copy of that policy.

Section 5 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 16

(7) A person who falls within

section 10(1)(k), (m), (

n) or (o).

(8) For the purposes of

section 2(1.1)(c), the Government shall formulate in writing a policy for determining, subject to that provision, the basis on which persons are eligible to become employees by virtue of that provision, and shall, on being requested to do so by the Minister, furnish the Minister forthwith with a copy of that policy. AR 367/93 s3;105/2008;140/2010;150/2011;7/2019; 54/2020 4 Repealed AR 69/2002 s3.

Interpretation - disability plan 5 The criteria for disability plans referred to in

section 2(1)(

o) are as follows: (

a) all participants employed by an employer in a group specified by the Minister in relation to the employer, except for those ineligible for coverage by reason of not meeting the medical requirements, must be covered by the disability plan; (

b) a participant must not be required to apply for a pension as long as the participant qualifies for benefits under the disability plan. AR 367/1993 s5;7/2019

Part 1 Administration Fiscal year of Plan 6 The fiscal year of the Plan is the calendar year. Administration of the Plan 7(1) The Minister is the administrator of the Plan.

(2) Notwithstanding anything in the Plan except subsection (3), the Minister shall administer the Plan in accordance with the tax rules.

(3) If in any respect the Plan does not comply with the applicable tax rules, the Minister may administer the Plan as if it were amended so to comply.

(4) In administering the Plan, the Minister shall take into consideration applicable general policy guidelines set for the purposes of

section 3(2)(

c) of the Act Schedule.

Section 8 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 17 Report to Board 8 The Minister shall provide to the Board, at the request of the Board and at least semi-annually, written reports on the administration of the Plan and on the investment of the plan fund’s assets. Forms 9 The forms provided for by these plan rules are those set out in

Schedule 1.

Part 2 Participation The participants 10(1) Subject to

section 11, the following are the persons who are to participate in the Plan: (

a) employees holding positions in the public service of Alberta; (

b) employees of a corporation listed in

Part 1 of

Schedule 2; (

c) employees of (

i) any Provincial corporation or Provincial committee, as defined in the Financial Administration Act, or (ii) another public body that is listed in

Part 2 of

Schedule 2; (c.2) employees who are employed by Edmonton School District No. 7 (known as “Edmonton Public Schools”) and who were participants at the end of 1999 by virtue of

section 117.2(5) (repealed); (c.3) employees who are employed by Pembina Hills Regional Division No. 7 and who were participants at the end of 1999 by virtue of

section 117.3(5) (repealed); (c.4) employees who are employed by Lakeland College and who were participants of the Plan at the end of 1999 by virtue of

section 117.5(5) (repealed); (c.5) employees who are employed by the Provincial Mental Health Advisory Board (now known as the Alberta Mental Health Board) and who were participants of the Plan at the end of 1999 by virtue of

section 117.6(5) (repealed);

Section 10 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 18 (

d) employees holding positions in the Legislative Assembly Office who are not excluded from participation by the terms and conditions of their employment; (

f) employees in recei pt of benefits under a disability plan; (

g) employees on leave with out or with partial salary; (

h) employees who immediately before January 1, 1994 were participating in the Plan under the former Act; (

k) subject to subsections (3) and (4), persons who (

i) were participants emp loyed by the Government immediately before July 1, 2008, became employed by the Alberta Investment Management Corporation (in this

section referred to as “AIMCo”) immediately thereafter and did not complete and return to the Minister the notice forms referred to in subsection (5) opting out of continued participation in the Plan before the expiry of 90 days after those forms were sent by the Minister, or (ii) fell within

section 10(1)(k)(i) (repealed) of the Public Service Pension Plan (AR 368/93), remained employed by AIMCo and subsequently, without any break in between, obtained different employment positions with AIMCo which, on the assumptions that they had remained employed by the Government and that AIMCo’s constituent statute had not been enacted, would have caused them to be participants of this Plan rather than of the Public Service Pension Plan, so long as they remain continuously employed by AIMCo; (

m) persons who were participants employed by an employer, and, if applicable, in a situation, referred to in

section 19.12(3)(a), (b), (c), (

d) or (e) (repealed) of the Regulations at that employer’s time of transfer within the meaning of

section 19.1 (repealed) of the Regulations and immediately became employed by the new employer to whom they became employed, so long as they remain continuously employed by that new employer; (

n) persons who were participants employed by an employer that is also an employer under the Public Service Pension Plan at that employer’s time of transfer within the meaning of

section 19.2(c) (repealed) of the Regulations and immediately became employed by the new employer

Section 10 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 19 under the Local Authorities Pension Plan so long as they remain continuously employed by that new employer. (

o) subject to subsection (6), a person (

i) who, at any time from September 1, 2019 to January 1, 2023, both dates inclusive, is or was (

A) a participant in the Plan under clause (a), and (

B) appointed or employed by the Government in accordance with, pursuant to or subject to the Public Service Act, (ii) to whom either of the following applies at any time, whether one or more times, from September 1, 2019 to January 1, 2023, both dates inclusive: (

A) the Government gives the person written notice that, effective as of the date in the notice, the person’s position is reclassified and becomes a position to which the Public Service Pension Plan applies but for this clause; (

B) on the initiative of the Government, except if resulting from a disciplinary action or the Government’s common law duty to accommodate, Government gives the person written notice that, effective as of the date in the notice, the person is appointed to another position in the Government to which the Public Service Pension Plan applies but for this clause, provided that the position is one to which the Public Service Act applies, and (iii) who, in each instance wh en subclause (ii)(

A) or (

B) applies, is continuously employed by the Government during the period from the date notice is given until the effective date of reclassification or appointment, both dates inclusive. (3) Subsection (1)(

k) applies in such a manner as to enable persons, so long as they remain continuously employed by AIMCo without a break, to move between this Plan and the Public Service Pension Plan as participants of the respective Plans indefinitely, the Plan of which they are participants at any given time being determined based on the assumptions referred to in subsection (1)(k)(ii).

Section 11 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 20

(4) Individuals who return to the Minister the completed notice forms under and within the 90-day period referred to in subsection (1)(k)(

i) are deemed for all purposes of the Plan to have done so on June 30, 2008 and those who do not return them within that period are deemed to have returned them, opting to remain participants, on that same date.

(5) The Minister shall, forthwith after the commencement of this subsection, ensure that there is or has previously been sent to each person who potentially falls within subsection (1)(k)(

i) a written notice form that, along with other relevant items, gives the person the option to remain a participant under that provision or to opt out of continued participation in the Plan.

(6) A person who falls within subsection (1)(

o) continues as a participant of the Plan only for so long as the person remains continuously employed in the position that the person was in immediately after the effective date of the person’s last reclassification or appointment in relation to which either subsection (1)(o)(ii)(

A) or (

B) applies. AR 367/93 s10;259/99;221/2007;105/2008;140/2010;150/2011;7/2019; 54/2020;276/2020 Exceptions to participation 11

Section 10 does not apply to an employee (

a) after the employee reaches his or her latest pension commencement date, (

b) who reached that date before July 1, 2002, (

c) repealed AR 301/2003 s57, (

d) who is in receipt of a pensi on in respect of his or her own pensionable service, (d.1) who has ever been in recei pt of any pension in respect of his or her own pensionable service under this Plan, the Public Service Pension Plan or the Public Service Management (Closed Membership) Pension Plan after December 31, 2000, or (

e) who remains an employee by virtue of

section 3(5). AR 367/93 s11;326/2000;69/2002;288/2003;301/2003; 150/2011;7/2019

Section 12 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 21

Part 3 Funding Disposition of contributions 12 All contributions, with interest, if any, shall be made and remitted to the Minister for deposit under

section 8(1) of the Act Schedule. AR 367/93 s12;269/2002;68/2008;31/2012;7/2019 Participant’s current service contributions 13(1) Subject to this

section and

section 14(1), a participant shall, at intervals coinciding with the salary periods fixed by his or her employer with respect to the participant, make contributions for current service for which the participant is receiving remuneration at the rate of 12.00% of his or her pensionable salary.

(2) An employer who is paying a participant’s remuneration is liable for the remittance of the current service contributions under subsection (1), for which purpose the employer may, if applicable, withhold those contributions from the remuneration payments.

(3) Current service contributions are not to be made (

a) after the length of a partic ipant’s combined pensionable service reaches 35 years, or (

b) at all, if before becoming a participant of this Plan, the person accumulated service that constitutes at least 35 years’ combined pensionable service under these plan rules.

(4) Subject to subsection (5), the Government shall pay the contributions required by subsection (1) on behalf of a participant who is in receipt of benefits under its disability plan.

(5) A participant who is in receipt of benefits under the Government’s disability plan and who is also earning a salary under a rehabilitation employment program shall make contributions in respect of that salary. AR 367/93 s13;196/2000;76/2003;46/2005;202/2010;199/2013; 7/2019;10/2023 Participant’s contributions respecting leave periods 14(1) A participant who is performing service in the form of qualifying leave without salary may have that service taken into account as pensionable service and, if the participant wishes to do so, may make contributions pursuant to

section 13(1) with respect to that leave.

Section 14 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 22

(2) Subject to this section, a person who (

a) was performing service in the form of qualifying leave without salary, (

b) wishes to have any period of that qualifying leave taken into account as pensionable service on the basis set out in this section, and (

c) did not make contributions under

section 13(1) in respect of that period, must make contributions in respect of that period in accordance with this

section at the rate specified in

section 13(1), with interest at the relevant rate.

(3) If the required payment exceeds $500, the person may choose to make the payment by instalments pursuant to sections 23 to 25 with interest at the financing rate, as if it were prior service contributions, if the person provides the Minister with a completed election to do so in the form required by the Minister before May 1 of the year following the year in which the qualifying leave period terminated.

(4) If the person does not choose to make the required payment in accordance with subsection (3) or if the required payment does not exceed $500, the person must make the whole of the required payment, including interest, before the date referred to in subsection (3).

(5) If the person does not return to the employment at the end of the qualifying leave period or returns to the employment but terminates it before the date referred to in subsection (3), the person must apply to the Minister to have the qualifying leave period taken into account as pensionable service within 30 days of termination or before the date referred to in subsection (3), whichever is earlier, and must pay the whole of the required payment, with interest, within 90 days of being requested by the Minister to make payment.

(6) Where an employer notifies the Minister that the terms and conditions of a qualifying leave without salary have not been met, the participant’s contributions shall be returned, with interest at the rate allowed under

section 79 or 92 or that person shall not be allowed to make the contributions, as the case may be, in respect of the qualifying leave.

(7) Section 27 applies for the purposes of subsections (3), (4) and (5).

Section 15 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 23

(8) In this section, “qualifying leave without salary” or “qualifying leave” means any period of leave without salary to the extent that the aggregate of (

a) all the periods of leave without salary, both before and after the beginning of January 1, 1992, and all unsalaried portions of periods of leave with partial salary occurring after 1991, (excluding any period referred to in clause (b)) does not exceed 5 years, and (

b) all the periods of parenting of an individual, as that te rm is used in the tax rules, occurring after June 30, 2002 does not exceed 3 years. AR 367/93 s14;69/2002;34/2007;7/2019 Employer contributions for current service 15(1) Subject to subsections (2) and (3), whenever current service contributions are made, the participant’s employer is liable to make contributions for the current service at the rate of 12.00% of the participant’s pensionable salary.

(2) The aggregate of the periods of leave without salary in respect of which an employer is liable to make contributions is limited to one year less any periods for which any other employers have been so liable.

(3) The contributions required by subsection (1) are to be paid by the participant, rather than the employer, where the service in question is leave without salary beyond the limitation period referred to in subsection (2).

(4) Where contributions are returned under

section 14(6), the Minister shall also return the corresponding contributions under this section, with interest at the rate allowed under

section 79 or 92 to the person who paid them. AR 367/93 s15;196/2000;76/2003;46/2005;202/2010;199/2013; 192/2016;139/2019;10/2023 Additional contributions 16(1) Subject to the Act and subsection (2), sections 13, 14 and 15, as they apply with respect to contributions for current pensionable service, apply with respect to additional contributions under

section 9 of the Act Schedule.

(2) Additional contributions are payable (

a) by a participant at the rate of 0% of his or her pensionab le salary, and

Section 16.1 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 24 (

b) by an employer at the rat e of 0% of the participant’s pensionable salary. AR 367/93 s16;196/2000;7/2019 2007 lump sum payment towards employers’ share of unfunded liability 16.1(1) In this section, (a) “lump sum payment” means the lump sum payment, if any, made out of money voted by the Legislature for the purpose by the Crown into the plan fund before April 1, 2007 towards the Plan’s unfunded liability; (b) “unfunded liability” means the Plan’s unfunded liability as disclosed in the actuarial valuation report as at December 31, 2004.

(2) The lump sum payment is to be treated as a pre-payment of the employers’ contributions to be applied against the employers’ share only of the unfunded liability.

(3) With respect to the application only of the lump sum payment, the employers’ share of the unfunded liability is to be calculated on the basis of the employer versus participant contribution rates ratio as set out in sections 15(1) and 13(1) respectively, being 18.0 (employers) to 10.5 (participants). AR 65/2007 s2 Interest on unpaid or unremitted contributions 17(1) Where contributions under

section 13, 14, 15 or 16 to be remitted by an employer are not received by the Minister on or before the end of a period of 15 days following (

a) the end of the salary perio d for which they are payable, or (

b) in the case of contributions that are not regularly payabl e, the last date on which they are payable, the Minister may charge the employer interest on those overdue contributions.

(2) Interest charged under subsection (1) is payable at a rate per year equal to the prime interest rate, according to the Canadian Imperial Bank of Commerce, on the first banking day of each quarter, plus 2%.

(3) Where contributions that were liable to be remitted by an employer under

section 13 but were not withheld by the employer are more than $500 in arrears, the Minister may enter into an

Section 18 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 25 arrangement with a participant, former participant or the employer pursuant to sections 23 to 25, with interest at the financing rate, as if the contributions were prior service contributions payable by a participant, for payment of the amount owing. AR 367/93 s17;269/2002;68/2008;31/2012;7/2019 Prior service contributions - evidence requirement 18 Before any contributions with respect to prior service may be made, there must be provided to the Minister, so far as applicable, the documents required by

section 83(1) or 96 or both. Transfer to combined pensionable service plan 19 Where the circumstances prescribed with reference to this

section apply, the Minister shall, if the Board so approves, transfer the amount so prescribed to the related plan representing the cost to the related plan of applying the combined pensionable service provisions of the plan rules of the 2 plans.

Part 4 Pensionable Service Computation of pensionable service 20(1.1) Subject to this

section and

section 21(2), in computing the length of pensionable service that a person accumulated, the following periods of service are the periods to be taken into account: (

a) service after June 30, 2002 with an employer in respect of which current service contributions have been made; (

b) periods before July 1, 2002 which, as at the end of June 30, 2002, had been acquired as pensionable service; (

c) other periods before July 1, 2002 in respect of which arrangements for payment had been made before that date under the applicable provisions referred to in sections 22 to 25 or arrangements referred to in

section 26 had been made to acquire those periods as pensionable service, and provided that those arrangements and the rules of the Plan applicable to them continue after that date to be adhered to without interruption; (

d) any other service in resp ect of which arrangements for payment have been made after June 30, 2002 on an actuarial reserve basis and the applicable terms and conditions set out in sections 22 to 25 have been satisfied;

Section 21 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 26 (

e) a period that is to be taken into account as pensionable service under this Plan under (

i) a portability arrangement established under

section 16.15 of the Regulations, or (ii) a special portability arrangement.

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

(4) Service with respect to which the contributions made have been returned or paid to a person or contributions or pension entitlements have been transferred out of the Plan on a person’s behalf may not be taken into account as pensionable service.

(5) Service that falls within

section 85 or 98 of the related plan may not be transferred into the Plan under a reciprocal agreement as pensionable service.

(6) A person may not be credited with more than one year’s pensionable service in respect of service performed in a calendar year, regardless of the nature and extent of the service so performed.

(7) Contributions referred to in subsection (1.1)(

d) are subject to any limitations imposed under the applicable circumstances by the tax rules.

(8) Where service is performed on less than a full-time basis, the length of the service performed is to be prorated in determining the length of the pensionable service accumulated. AR 367/93 s20;7/2002;69/2002;221/2007 Limit on pensionable and combined pensionable service 21(1) The aggregate of the periods that are to be taken into account in determining the length of the combined pensionable service that a person has accumulated is not to exceed 35 years.

(2) The aggregate of the periods that are to be taken into account in determining the length of the pensionable service that a person has accumulated is not to exceed 35 years less any combined pensionable service in the related plan that has been accumulated. Requirement to apply and make payments in time 22(1) Service described in

section 20(1.1)(

d) may not be taken into account as pensionable service unless the person entitled to

Section 23 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 27 have it taken into account applied to the Minister in the form approved by the Minister, while a participant, as to the amount of contributions required and has complied with

section 23 and, where applicable, sections 24 and 25.

(2) After receiving an application as to the amount of contributions required, the Minister shall send the applicant a notice advising of the required amount. AR 367/93 s22;69/2002 Method of making lump sum and instalment contributions - general provisions 23(1) Contributions for service described in

section 20(1.1)(

d) are to be made by lump sum payment, by instalments withheld from remuneration or by annual instalments, but they may be made only by lump sum payment if the required payment is $500 or less.

(2) In the case of a lump sum payment, the required amount must be paid in full within 90 days of the date of the notice advising the person of the required amount.

(3) In the case of payment by instalments withheld from remuneration, the participant must authorize the withholding and the first payment must be withheld from the participant’s remuneration and remitted to the Minister within 90 days of the date of the notice advising of the required amount, and the required amount must be paid in full by regular instalments withheld from remuneration in an amount that is not less than $50 per month and is in any case at least sufficient to ensure full payment, with interest at the financing rate, (

a) by his or her latest pension commencement date, (

b) by the date when the aggregate of the number of years of (

i) his or her combined p ensionable service already accumulated, (ii) all service being acquired by the participant, and (iii) the pensionable servi ce that will accumulate on a current basis while the instalments are being made, assuming no change in employment, will equal 35 years, or (

c) in 10 years, whichever comes first.

Section 24 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 28

(4) In the case of payment by annual instalments, the required amount must be paid in full by annual payments each in an amount that is at least equal to 12 times the minimum monthly payment specified in subsection (3), with the first instalment being remitted to the Minister within 90 days of the date of the notice advising the person of the required amount and the subsequent annual instalments being payable on or before the anniversary of the due date of the first instalment.

(5) Notwithstanding a person’s having entered into arrangements to effect payment under subsection (3) or (4), the person may thereafter change the basis of instalment payments to that provided for in subsection (4) or (3) respectively.

(6) Notwithstanding a person’s having entered into arrangements to effect payment under subsection (3), (4) or (5), the person may at any time prepay the balance of the required amount or any portion of that balance, without penalty. AR 367/93 s23;69/2002;269/2002;221/2007;68/2008;31/2012;7/2019 Payment of balance on termination 24(1) Notwithstanding

section 23, where a person terminates leaving contributions covered by

section 20(1.1)(

c) or (

d) that are not fully paid, the person must pay the full balance of the required amount within 90 days after termination if the person wishes the remaining service to be taken into account as pensionable service.

(2) A person who is liable to make payments under

section 23 and who becomes a participant of the related plan nevertheless continues to be liable and entitled to continue to make payments under sections 23 to 25 as if still a participant of this Plan. AR 367/93 s24;69/2002;7/2019 Effect of leave without salary on instalment payments 25(1) Notwithstanding

section 23, a participant who goes on leave without salary and has previously undertaken payments under

section 23(3), (4) or (5) may (

a) continue to make those payments, or (

b) without affecting the par ticipant’s liability to make the payments within the time limit that would have applied had the participant not gone on that leave, cease to make those payments during the leave period.

(2) Where the participant has ceased to make payments under subsection (1)(b), the participant shall recommence making them within 90 days after the end of the leave period and make such

Section 26 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 29 further payments as the Minister considers necessary to ensure that the time limit referred to in that clause is met.

AR 367/93 s25;7/2019 Prior service liability - continuation of arrangements under former Act 26(1) Notwithstanding anything in the Plan, a person who immediately before January 1, 1994 was participating in the Plan under the former Act and had previously made arrangements for payment with respect to prior service under and within the meaning of the former Act is to continue to make payments under those arrangements under the same terms and conditions, including the rate of interest, until payment is made in full, and the employer is liable to continue to make those contributions, if any, with interest at the rate formerly payable, in respect of that service, that the employer would have been liable to make had the former Act been still in force. (2) and

(3) Repealed AR 69/2002 s10.

(4) A person who is liable to make payments under

section 26 and who becomes a participant of the related plan nevertheless continues to be liable and entitled to continue to make payments under

section 26 as if still a participant of this Plan. AR 367/93 s26;69/2002;221/2007 Cessation of prior service arrangement payments 26.1 If a person to whom

section 20(1.1)(

c) applies ceases to make the required payments under the arrangements referred to in that clause,

section 27 applies and, on the crediting of service under that section, the person is thereafter entitled to purchase the remainder of the service not credited only pursuant to sections 20(1.1)(

d) and 22 to 25. AR 69/2002 s11 Partial credit of partially paid service 27 Notwithstanding

section 22(1), where a person complied with the applicable provisions of sections 20(2), 23, 24 and 25 or

section 26 except that the person did not pay the whole of the required amount, the Minister may take the service for which the person has paid into account as pensionable service. AR 367/93 s27;69/2002;7/2019 Interest on unpaid or unremitted prior service contributions 28 Where contributions under or referred to in

section 20(1.1)(

c) or (

d) or 26 to be remitted by an employer are not received by the Minister on or before the end of a period of 15 days following

Section 29 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 30 (

a) in the case of a lump sum payment, the last date on which it is payable, (

b) in the case of instalments withheld from remuneration, the end of the salary period for which they are payable, or (

c) in the case of annual instalments, the applicable date referred to in

section 23(4), the Minister may charge the employer interest on those overdue contributions at the rate referred to in

section 17(2). AR 367/93 s28;69/2002;269/2002;68/2008;31/2012;7/2019

Part 5 Benefits

Interpretation and application of Subdivisions A 29(1) This

section applies with respect to the

interpretation and application of Subdivision A of any Division of this Part and, in any such Subdivision, (a) “employee contributions” m eans the following, so far as they relate to service that occurred before 1992 and have not previously been returned, namely (

i) current service contributions, (ii) contributions described in

section 15(3), (iii) contributions for prior service made by a participant, (iv) any part of a sum paid into the Plan under an old or a new reciprocal agreement or a special portability arrangement that was or is recognized by the Minister as employee contributions, and (

v) any part of a sum paid into the Plan from another pension plan under a portability arrangement established under

section 16.15 of the Regulations that is recognized by the Minister as employee contributions, whether those contributions were made before or after January 1, 1992, and includes interest on those amounts; (b) “highest average salary” means, subject to this section, the average (

i) of a person’s annual salari es in the 5 or, if less than 5, the total number of consecutive years (whether

Section 29 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 31 before or after or partly before and partly after the beginning of 1992) of the following service over which the average of the person’s salaries was the highest, namely (

A) the person’s pensionable service for which current service contributions were paid, (A.1) the person’s combin ed pensionable service in the related plan for which current service contributions within the meaning of the related plan were paid, (

B) any further service th at would be pensionable service referred to in paragraph (

A) or combined pensionable service referred to in paragraph (A.1), as the case may be, but only for its exceeding the applicable limit established by

section 21, and (

C) any service transferred into the Plan under a reciprocal agreement or a special portability arrangement and performed with a party to a reciprocal agreement or a special portability arrangement, as the case may be, o r (ii) if the person has not acc umulated 5 such consecutive years, then, in respect of other service not taken into account for the purposes of subclause (i), of the highest of the remuneration on which the contributions paid to establish that other service as pensionable service were based under

section 16(1)(

b) of the former Act or

section 26 or of the remuneration implicit in the salary basis used in determining the actuarial reserve value, excluding salary growth assumptions, paid to establish the service as pensionable service under the relevant portions of

section 20(1)(d) (before its repeal) and

section 20(1.1)(

d) of these plan rules; (c) “normal pension” means a pension in the amount receivable under

section 36(1) and in the form specified in

section 36(2)(

a) or (b), depending on which of those clauses applies to the person; (d) “years of pensionable se rvice” means the number of complete years and any fraction of a remaining year of pensionable service.

Section 30 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 32

(2) Except where specifically stated, Subdivision A of any Division of this Part applies only with respect to service that occurred before 1992, but this subsection does not apply to the extent that a reference is made to combined pensionable service.

(3) For the purpose of determining the consecutive years referred to in subsection (1)(b), breaks in service shall be disregarded.

(4) For the purposes of subsection (1)(b)(i), the salary with respect to service that has been transferred into the Plan under (

a) an old reciprocal agreemen t is the remuneration reported as the person’s remuneration by the other party to the agreement, or (

b) a new reciprocal agreemen t or a special portability arrangement is the remuneration on which contributions paid to establish that service as pensionable service were based.

(5) In determining the annual salary for the purposes of the calculation under subsection (1)(

b) of a person who has accumulated prorated pensionable service under

section 20(8), the person’s actual annual salary is to be annualized in accordance with the following formula: actual annual salary earned X 1 decimalized proportion of pensionable service accumulated to full length of service performed

(6) Where any combined pensionable service in the related plan or any service that would be such but only for its exceeding the applicable limit established by

section 21 is to be taken into account for the purposes of subsection (1)(b), “salary” is to be taken for that purpose as referring to any salary (within the meaning of the related plan) earned while that service was being performed. AR 367/93 s29;69/2002;129/2004;221/2007;7/2019

Interpretation and application of Subdivisions B 30(1) This

section applies with respect to the

interpretation and application of Subdivision B of any Division of this Part and, in any such Subdivision, (0b) repealed AR 54/2020 s5; (a) “employee contribution excess” means an amount equal to the excess, if any, of the employee contributions, other

Section 30 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 33 than additional contributions, over the commuted value as at the date provided for in this Plan; (a.1) “employee contributions” means additional contributions paid by a participant and, so far as they relate to service that occurs after 1991 and have not previously been returned, any contributions referred to in

section 29(1)(a)(

i) to (iv), and includes interest on those amounts; (b) “highest average salary” ha s the meaning assigned to it by

section 29(1)(b); (c) “normal pension” means a pension in the amount receivable under

section 47(1) and in the form specified in

section 47(2)(

a) or (b), depending on which of those clauses apply to the person; (d) “years of pensionable serv ice” has the meaning assigned to it by

section 29(1)(d).

(2) Except where specifically stated, Subdivision B of any Division of this Part applies only with respect to service occurring after 1991, but this subsection does not apply to the extent that a reference is made to combined pensionable service.

(3) For the purpose of determining the consecutive years for the purposes of subsection (1)(b), breaks in service shall be disregarded.

(4) For the purposes of subsection (1)(b), as it incorporates

section 29(1)(b)(i),

section 29(4) applies.

(5) In determining the annual salary for the purposes of subsection (1)(b),

section 29(5) applies.

(6) Section 29(6) applies.

(7) In determining salaries or the average of a person’s annual salaries for the purposes of subsection (1)(b), (

a) the salary in respect of an y year after 1991 is to be taken to be pensionable salary for the year in question, and (

b) a salary in resp ect of any year before 1992 that exceeds the amount that would have been required to produce the defined benefit limit fixed by the tax rules for 1992 is deemed to be equal to that amount. AR 367/93 s30;151/98;7/2019;54/2020

Section 32 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 34 Limitation of benefits where obtainable under Subdivisions A and B 32(1) Notwithstanding anything in this Part, so far as applicable, (

a) where more than one type of benefit is obtainable under Subdivision A or B of any Division of this Part and benefits corresponding to those Subdivision A or B benefits are also obtainable under Subdivision B or A thereof, as the case may be, the person entitled is permitted to take only the one type of benefit under the 2 Subdivisions, (

b) if benefits under the 2 Subdivisions would otherwise be obtainable at or from different times, the person may only take the benefits at or commencing from one single time under the 2 Subdivisions, and (

c) where different forms of pension may be selected, only one form of pension may be selected under the 2 Subdivisions.

(2) The taking of a pension in the form of a normal pension under Subdivisions A and B of any Division of this

Part is not to be considered as constituting different forms of pension for the purposes of subsection (1). Locking in - general provisions 33(1) Where money held in the Plan is locked in, the money is to be held in the Plan until (

a) it is paid out in the form of a pension, (

b) it is transferred from the Plan to a locked-in retirement account pursuant to a provision of this Part allowing a transfer, or (

c) it is transferre d from the Plan under a special portability arrangement pursuant to a provision of this Part allowing such a transfer.

(2) Notwithstanding anything in this Part, money that would otherwise be locked in or required to be transferred to a locked-in retirement account is not locked in (

a) to the extent that it cons ists of a tax rule excess, (a.1) where a participant or for mer participant entitled to it has been declared by the Canada Revenue Agency under the tax rules to be a non-resident for income tax purposes or, on the death of a participant or former participant entitled

Section 33 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 35 to it, the benefit would, but for this clause, have to be paid on a locked-in basis to a pension partner who has been so declared a non-resident, (a.2) where a vested participan t or a vested former participant has an illness or disability that is certified by that individual’s physician to be terminal or to be likely to shorten that individual’s life considerably, or (

b) if the lump sum amount is less than 4% of the year’s maximum pensionable earnings for the year in which termination or death, as the case may be, occurred and the benefit is not a pension. (2.1) Subsection (2)(a.1) applies with respect to a participant or former participant who has a pension partner at the date of the declaration of non-residency only if that pension partner has executed a waiver in the form and manner and in accordance with the conditions set out in Form 3 of

Schedule 1. (2.2) Subsection (2)(a.2) applies, and applies only, (

a) if the participan t or former participant has applied in writing to the Minister to unlock money under that clause, and (

b) to the extent that that individual, after being requested by the Minister to do so, submits to the Minister an election, in the form required by the Minister, to convert to a series of payments for a fixed term or to withdraw as a lump sum all or a portion of the individual’s pension entitlement.

(2.3) The maximum amount that is convertible or withdrawable under subsection (2.2)(

b) is the commuted value of the total pension entitlement, determined as at the date on which the application referred to in subsection (2.2)(

a) is received by the Minister and without taking into consideration the individual’s shortened life expectancy. (2.4) Subsection (2)(a.2) applies with respect to a participant or former participant who has a pension partner at the time the application referred to in subsection (2.2)(

a) is received by the Minister only if that pension partner has executed a waiver in the form and manner and in accordance with the conditions set out in Form 3.1 of

Schedule 1.

(2.5) Where the individual who has submitted an election under subsection (2.2)(

b) dies before the unlocked amount has been paid or paid in full, the lump sum amount or the series of payments remaining to be made are to be paid to the deceased’s estate.

Section 33.1 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 36

(2.6) In this section, “physician” means a person who, at the time the application referred to in subsection (2.2)(

a) is received by the Minister, (

a) was a regulated member of the College of Physicians and Surgeons of Alberta and held a practice permit issued under the Health Professions Act and was not under suspension, or (

b) was a physician regulated, registered or certified in that capacity in another jurisdiction in Canada and not under suspension.

(2.7) If, with respect to pensionable service before 1992 if applicable, the individual is or, but only for the individual’s not having terminated, would be entitled to a benefit only under

section 69, the benefit that is convertible or withdrawable under subsection (2)(a.2) with respect to that pensionable service is the employee contributions.

(5) Where a former participant is entitled to a benefit under

section 66 and

section 69(

a) or (

b) or 72(

a) or (

b) or both and does not forthwith apply for that benefit transfer or for a deferred pension, that person may make one or more requests to the Minister for the calculation of the amount which could be transferred under that legislation for the purposes of ascertaining whether the unlocking potential provided for in subsection (2)(

b) is realized and, if it is, that amount is to be calculated for the purposes of applying that unlocking as at the time when the last such request was made prior to the application for the benefit payment. AR 367/93 s33;221/2007;20/2009;144/2018 Non-vested partial conversions and withdrawals 33.1 Where the circumstances set out in

section 33(2)(a.2) apply except that the participant or former participant is not vested, all or a portion of the employee contributions may be converted or withdrawn on the basis and terms described in

section 33 (excluding

section 33(2.3)). AR 144/2018 s10 Imposition of locking in on other plans and vehicles 34(1) Notwithstanding anything in this Part, where money that is locked in is to be transferred to a locked-in retirement account, it may be transferred only if the financial institution or entity to which it is transferred receives it on a locked-in basis and the acceptance of the money, and any subsequent transfer of it, will be the subject of a contract within the meaning of, and that is subject to,

Part 9 of the Employment Pension Plans Regulation.

Section 34.1 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 37

(2) When a transfer of locked-in money has been made in compliance with this

section or

section 33(1)(c), all the liabilities of the Minister and of the Plan with respect to the money become extinguished.

(3) To avoid doubt, where money has been transferred from this Plan to a locked-in retirement account, the Employment Pension Plans Act (SA 2012 cE-8.1) and the regulations under it (and particularly their spousal protection provisions) rather than these plan rules apply. AR 367/93 s34;326/2000;154/2014 Commuted value and employee contribution excess 34.1(1) This

section applies where a provision of the Plan necessitates determination of the commuted value of a person’s benefits or of an employee contribution excess.

(2) Commuted value and employee contribution excess are to be determined as of the date of pension commencement, termination before eligibility for a pension or death before pension commencement, as the case may be, except as provided for in subsection (3) or (4) or in

section 33(5), 85.1(3)(a)(ii) or 98.1(2)(a).

(3) Where there is a delay of more than one year between the date as of which the commuted value or the employee contribution excess was determined and the date of the transfer of the commuted value or the transfer or payment of that excess, the Minister shall recompute the commuted value or excess as if never originally done and as of the date when the transfer or payment, as the case may be, is made, except where the commuted value or employee contribution excess has to be computed for the purpose of a transfer under a special portability arrangement or a portability arrangement established under

section 16.15 of the Regulations.

(4) Where a participant terminates and opts to receive a pension under

section 69(

d) or 72(d)(i), or both, and an employee contribution excess is payable or transferable, that excess is to be determined as at pension commencement.

(5) Where commuted value is transferable, interest is to be added, at the rate that was assumed in determining that commuted value, for the period of one year or less between the date of the determination of the commuted value and the date when the commuted value is transferred.

(6) Where an employee contribution excess is payable or transferable, interest is to be added for the period of one year or less between the date of the determination of that excess and the date when that excess is paid or transferred.

Section 34.3 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 38

(7) In this section, “employee contribution excess” has the meaning assigned to it in

section 30(1)(a). AR 151/98 s4;296/2002;221/2007;20/2009;54/2020 Reduction based on unlocking for shortened life expectancy 34.3 Any pension entitlement that is to be determined in accordance with Division 1, 2 or 3 following a conversion or withdrawal described in

section 33(2.2)(

b) is to be calculated initially as though the conversion or withdrawal had never occurred and is then to be reduced by a value that is actuarially equivalent to the amount so converted or withdrawn. AR 144/2018 s11 Division 1 Retirement Benefits Subdivision A For Service Before 1992 Limitation of benefits to meet tax rules 35 Benefits that relate to service that is pensionable under

section 20(1.1) are limited to what is allowed by the tax rules. AR 367/93 s35;69/2002 Normal pension based on age or service 36(1) A person who terminates, is vested and has attained the age of 55 years is entitled to receive a pension in the annual amount that is equal to 2% of the person’s highest average salary multiplied by the number of years of the person’s pensionable service or, if the person has not yet attained the age of 65 years, the benefit referred to in

section 69(c).

(2) A pension under subsection (1) is payable (

a) if the pensioner did not have a pension partner at pension commencement or if the pensioner did but a valid statutory declaration under

section 37(3) was filed in respect of his or her pension, for the life of the pensioner, or (

b) if the pensioner did have a pension partner at pension commencement and such a declaration was not filed in respect of his or her pension, in the form of a single life pension, payable only for the life of the pensioner with the provision that, if the pensioner dies survived by that person, the pension is payable to that person for life in an amount equal to 3/4 of the pension that would have been

Section 37 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 39 payable to the pensioner had the pensioner continued to live.

(5) Repealed AR 129/2004 s3. AR 367/93 s36;7/2002;301/2003;129/2004;7/2019 Pension partner protection 37(1) Notwithstanding anything in the Plan except subsections (2) and (3) and

section 34(3), a pensioner who has a pension partner at pension commencement is deemed for the purposes of the Plan to choose a pension in the form specified in

section 36(2)(b).

(2) The pensioner may select the form of joint life pension under

section 38(1)(

d) or (f), with the pension partner at pension commencement as the designated nominee, rather than that referred to in subsection (1). (3) Subsections (1) and (2) do not apply where there was filed with the Minister (

a) a valid statutory declara tion by the person who was the pension partner at pension commencement in the form set out in, and signed in accordance with the requirements of, Form 1 of

Schedule 1, or (

b) repealed AR 20/2009 s34, (

c) a family pr operty order.

(4) Notwithstanding subsection (3), a declaration under that subsection is not valid if it is made more than 90 days before pension commencement.

(5) A pension payable under subsection (2) is in an amount that is the actuarial equivalent of the pension payable in the form specified in

section 36(2)(b).

(6) Repealed AR 20/2009 s34. AR 367/93 s37;7/2002;296/2002;129/2004;34/2007;20/2009; 160/2019 Alternative forms of pension 38(1) A person who is entitled to receive a pension in the form specified in

section 36(2)(

a) is entitled, as an alternative, to select a form of pension from one of the following: (

a) a guaranteed term pension, payable for (

i) whichever term, being 5, 1 0 or 15 years, is selected by the pensioner, or

Section 38 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 40 (ii) the pensioner’s life, whichever is the longer; (

c) repealed AR 296/2002 s4; (

d) a joint life pension, payab le during the joint lives of the pensioner and a nominee designated by the pensioner and which, after the death of either, continues to be payable in the same amount as was payable before the death, to the survivor for life and that is payable, in the event that the survivor dies within 10 years of pension commencement, for the remainder of the guaranteed term of 10 years from pension commencement; (

e) a joint life pension, payab le during the joint lives of the pensioner and a nominee designated by the pensioner and which, after the death of either, continues to be payable in the amount of 2/3 of the amount payable before the death, to the survivor for life but that is payable, in the event that either or both die within 10 years of pension commencement, for the remainder of the guaranteed term of 10 years from pension commencement in the amount that was payable immediately before the first death; (

f) a single life pension, pay able only for the life of the pensioner with the provision that, if the pensioner dies survived by a nominee designated by the pensioner, the pension is payable to that nominee for life in an amount equal to 3/4 of the pension that would have been payable to the pensioner had the pensioner continued to live, but that is payable, in the event that the pensioner dies within 10 years of pension commencement, for the remainder of the guaranteed term of 10 years from pension commencement in the amount that was payable to the pensioner immediately before the death of the pensioner.

(2) Where an alternative form of pension is selected under subsection (1), the pension is in an amount that is the actuarial equivalent of the pension payable in the form specified in

section 36(2)(a).

(3) The nominee referred to in subsection (1)(d), (

e) or (

f) must be eligible for post-retirement survivor benefits under and within the meaning of the tax rules. AR 367/93 s38;69/2002;296/2002;129/2004;7/2019

Section 40 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 41 Attainment of latest pension commencement date 40 A person who ceases to be a participant or a participant of the related plan by reason only of reaching his or her latest pension commencement date is to receive a normal pension. AR 367/93 s40;69/2002;301/2003;7/2019 Disability pensions 41(1) Subject to subsection (3), a person who, before attaining the age of 55 years, (

a) is vested, (

b) satisfies the Minister that the person has become totally disabled, and (

c) either terminates and ceases to be a participant as a result of that disability or had previously terminated and had elected to receive a deferred pension under

section 69(d), becomes and, subject to

section 42, is entitled to receive a normal pension.

(2) Subject to subsection (3), a person who, before attaining the age of 55 years, (

a) is vested, (

b) satisfies the Minister that the person (

i) has become incapable of effectively performing the regular duties of his or her work as a result of his or her mental or physical impairment, and (ii) is not totally disabled, a n d (

c) either terminates and ceases to be a participant as a result of that impairment or had previously terminated and had elected to receive a deferred pension under

section 69(d), becomes and, subject to

section 42, is entitled to receive a pension in the form and in the amount of a normal pension, reduced, however, in amount by 3/12 of 1% for each complete month (with a proration for the additional portion, if any, of a month) by which pension commencement falls short of his or her 55th birthday.

(3) A person who (

a) is receiving benefits u nder a disability plan, or

Section 42 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 42 (

b) becomes a participant afte r June 30, 2007 and, at the time of becoming a participant, has no combined pensionable service arising from service within the meaning of the Plan or the related plan performed before July 1, 2007 is not entitled to receive any pension under this section.

(3.1) For the purposes of calculating the amount of combined pensionable service that the person has under subsection (3)(b), the service referred to is not to be taken into account unless it was acquired as pensionable service under and within the meaning of the Plan or the related plan before July 1, 2007 or arrangements referred to in

section 20(1.1)(

c) or (

d) were made before July 1, 2007 to acquire it as such pensionable service.

(4) In this

section and in

section 42, “totally disabled” means suffering from a physical or mental impairment that can reasonably be expected to last for the remainder of the person’s lifetime and that prevents the person from engaging in any gainful occupation. AR 367/93 s41;301/2003;34/2007;7/2019 Disability pension adjustments 42(1) Where a person who has not yet attained the age of 55 years is in receipt of a pension under

section 41(1) and (

a) does not submit the eviden ce required under

section 83 of the continuing total disability, or (

b) the Minister finds that the person is no longer totally disabled, the Minister may have the person’s pension reduced to the amount provided for by

section 41(2).

(2) Where a person who has not yet attained the age of 55 years is in receipt of a pension under

section 41(2) and satisfies the Minister that the person is totally disabled, the Minister may upgrade the person’s pension to a pension under

section 41(1) with effect from the date of the person’s application for the upgrading.

(3) Where a person who has not yet attained the age of 55 years is in receipt of a pension under

section 41(2) and the Minister is no longer satisfied that the person is eligible for the pension, the Minister may eliminate payment of the pension. AR 367/1993 s42;7/2019

Section 43 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 43 Postponement of pension 43(1) A person who is entitled to receive a pension under

section 36 or 69(

d) may postpone commencement of the pension to any date up to the person’s latest pension commencement date.

(2) Whether or not the person has taken any active steps to effectuate a postponement, the pension becomes postponed when, and only when, it transpires that pension commencement has not occurred at the date when, given the circumstances described in the relevant enactment referred to in subsection (1), it would have occurred.

(3) Subject to subsection (3.1), when a pension that was postponed becomes payable, it is to be in the form of a normal pension and in the amount that is the actuarial equivalent of the normal pension that the person would have been entitled to receive had the postponement not been made.

(3.1) A person who makes the election under

section 54(3.1) is entitled to receive, instead of the amount specified in subsection (3), (

a) a pension in the form and in the amount of a normal pension based, however, only on pensionable service up to the effective date of the postponement, and (

b) a lump sum payment equal to the total pension payments that would have been made during the period of the postponement had the pension not been postponed. AR 367/93 s43;69/2002;7/2019 Failure to select pension 44 A person who is requested in writing by the Minister to make a choice of pensions and who fails to do so within 90 days after the request is sent is deemed for the purposes of the Plan to have chosen a pension in the form of a normal pension. Death after entitlement to

section 36 pension 45 Where the deceased had terminated, had become entitled to a pension under

section 36 or had become so entitled but only for postponing it, and died without having made a valid choice as to the form of pension to be taken, the deceased is deemed for the purposes of the Plan to have chosen, (

a) if there is a surviving pension partner and no valid statutory declaration under

section 37(3) had been filed in respect of the deceased’s pension, a pension in the form specified in

section 36(2)(b), or

Section 46 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 44 (

b) if there is no surviving pension partner or if there is bu t a valid statutory declaration under

section 37(3) had been filed in respect of the deceased’s pension, a guaranteed term pension referred to in

section 38(1)(

a) on a 10-year basis. AR 367/93 s45;7/2002;129/2004;7/2019 Subdivision B For Service After 1991 Tax rule limitations on benefits 46 Notwithstanding anything in the Plan but without affecting any particular provision of the Plan further limiting benefits, benefits are limited to what is allowed by the tax rules. Normal pension based on age or age and service 47(1) A person who (

a) terminates, (

b) is vested, and (

c) either (

i) has attained the age of 55 years with the sum of the person’s age and combined pensionable service amounting to not less than 80 years, or (ii) has attained the age of 60 years, is entitled to receive a pension in the annual amount that is equal to 2% of the person’s highest average salary multiplied by the number of years of the person’s pensionable service.

(2) A pension under subsection (1) is payable (

a) if the pensioner did not have a pension partner at pension commencement or if the pensioner did but a valid statutory declaration under

section 48(3) was filed in respect of his or her pension, for the life of the pensioner or the term of 10 years, whichever is the longer, or (

b) if the pensioner did have a pension partner at pension commencement and such a declaration was not filed in respect of his or her pension, in the form of a single life pension, payable only for the life of the pensioner with the provision that, if the pensioner dies survived by that person, the pension is payable to that person for life in an amount equal to 2/3 of the pension that would have been

Section 48 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 45 payable to the pensioner had the pensioner continued to live.

(6) The person entitled is also entitled to receive the employee contribution excess. AR 367/93 s47;7/2002;301/2003;7/2019 Pension partner protection 48(1) Notwithstanding anything in the Plan except subsections (2) and (3) and

section 34(3), a pensioner who has a pension partner at pension commencement is deemed for the purposes of the Plan to choose a pension in the form specified in

section 47(2)(b). (2)

Section 37(2) applies, with the reference in it to

section 38(1)(

d) or (

f) being taken as a reference to

section 49 as it incorporates

section 38(1)(

d) or (f). (3)

Section 37(3) applies.

(4) Section 37(4) applies.

(5) A pension payable under subsection (2) is in an amount that is the actuarial equivalent of the pension payable in the form specified in

section 47(2)(b). (6)

Section 37(6) applies. AR 367/93 s48;7/2002;296/2002;129/2004 Alternative forms of pension 49(1) A person who is entitled to receive a pension in the form specified in

section 47(2)(

a) is entitled, as an alternative, to select any other form of pension from any of those provided for in

section 38(1), (treating the reference in

section 38(1)(

f) to “3/4” as a reference to “2/3”).

(2) Where an alternative form of pension is selected under subsection (1), the pension is in an amount that is the actuarial equivalent of the pension payable in the form specified in

section 47(2)(a). AR 367/93 s49;129/2004;221/2004 Pension on early retirement 50(1) A person who terminates, has attained the age of 55 years without meeting the requirements of

section 47(1)(

c) and has accumulated at least 5 years’ combined pensionable service, is entitled

Section 51 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 46 (

a) to receive a pension in the form and in the amount of a normal pension, reduced, however, in amount by 3/12 of 1% for each complete month (with a proration for the additional portion, if any, of a month) by which pension commencement falls short of the date when the person’s future age and the person’s accumulated combined pensionable service to pension commencement, or the person’s future age, would entitle the person, if instead he or she terminated at that future date, to a pension under

section 47, or (

b) to the benefit referred to in

section 72(c).

(2) In addition, the person is entitled to the employee contribution excess. AR 367/93 s50;7/2019 Attainment of latest pension commencement date 51(1)

Section 40 applies.

(2) In addition, the person is entitled to the employee contribution excess. Disability pensions 52(1)

Section 41(1) applies, with references in it to sections 69(

d) and 42 being taken as references to sections 72(

d) and 53 respectively.

(2) Subject to subsection (3), a person referred to in

section 41(2) (treating the reference in it to

section 69(

d) as a reference to

section 72(d)) becomes and, subject to

section 53, is entitled to receive a pension in the form and in the amount of a normal pension, reduced, however, in amount by 3/12 of 1% for each complete month (with a proration for the additional portion, if any, of a month) by which pension commencement falls short of the date when the person’s future age and the person’s accumulated combined pensionable service to pension commencement, or the person’s future age, would entitle the person, if instead he or she terminated at that future date, to a pension under

section 47. (3)

Section 41(3) applies.

(4) Section 41(4) applies, with the reference in it to

section 42 being taken as a reference to

section 53.

(5) In addition, the person is entitled to the employee contribution excess. AR 367/93 s52;7/2019

Section 53 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 47 Disability pension adjustments 53(1) Where a person who is not yet entitled to a pension under

section 47 is in receipt of a pension under

section 52(1) and (

a) does not submit the eviden ce required under

section 96 of the continuing total disability, or (

b) the Minister finds that the person is no longer totally disabled, the Minister may have the person’s pension reduced to the amount provided for by

section 52(2).

(2) Where a person who is not yet entitled to a pension under

section 47 is in receipt of a pension under

section 52(2) and satisfies the Minister that the person is totally disabled, the Minister may upgrade the person’s pension to a pension under

section 52(1) with effect from the date of the person’s application for the upgrading.

(3) Where a person who has not yet attained the age of 55 years is in receipt of a pension under

section 52(2) and the Minister is no longer satisfied that the person is eligible for the pension, the Minister may eliminate payment of the pension. AR 367/93 s53;7/2019 Postponement of pension 54(1) A person who is entitled to receive a pension under

section 47 or a normal pension under

section 72(

d) may postpone commencement of the pension to any date up to the person’s latest pension commencement date.

(2) Section 43(2) applies.

(3) When a pension that was postponed becomes payable and the person entitled has not made an election under subsection (3.1), it is to be in the form of a normal pension and (

a) if pension commencement is on or before the date when the person attains the age of 65 years, in the amount specified in

section 47(1), or (

b) if pension commencement is after that date, in the amount that is the actuarial equivalent of the normal pension that the person would have been entitled to receive had pension commencement occurred on the later of (

i) the date when the person attained the age of 65 years, and

Section 55 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 48 (ii) the day after the person terminated.

(3.1) A person to whom subsection (3) will (but for the making of an election under this subsection) apply may, at any time before pension commencement, make an election in the written form required by the Minister, that subsection (3) is not to apply to him or her, in which case the person is to receive (

a) a pension in the form and in the amount of a normal pension based, however, only on pensionable service up to the effective date of the postponement, and (

b) a lump sum payment equal to the total pension payments that would have been made during the period of the postponement had the pension not been postponed.

(4) Where a pension is postponed, any employee contribution excess is payable at pension commencement. AR 367/93 s54;69/2002;7/2019 Failure to select pension 55

Section 44 applies. Death after entitlement to

section 47 pension 56

Section 45 applies, with references in it to sections 36, 37(3) and 38(1)(

a) being respectively taken as references to

section 47 and to sections 48 and 49(1), as they incorporate sections 37(3) and 38(1)(a). Death after entitlement to

section 50 pension 56.1 Where a person dies after pension commencement has occurred in relation to a pension under

section 50 but before the person has made a valid choice as to the form of pension to be taken, the deceased is deemed for the purposes of the Plan to have chosen (

a) if there is a surviving pension partner and no valid statutory declaration under

section 48(3) had been filed in respect of the person’s pension, a pension in the form specified in

section 47(2)(b), or (

b) if there is no surviving pension partner or if there is bu t a valid statutory declaration under

section 48(3) had been filed in respect of the person’s pension, a guaranteed term pension referred to in

section 47(2)(a). AR 367/93 s56.1;7/2002;7/2019

Section 57 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 49 Division 2 Death Benefits Application and

interpretation of Division 57(1) Subject to

section 57.1, this Division applies with respect to a person, other than a pensioner (in this Division referred to as “the deceased”), who dies with employee contributions referred to in

section 29(1) or 30(1) in the Plan.

(2) In this Division, (a) “surviving pension partner” means the person (if any) who was the pension partner of the deceased immediately before the death occurred, and who survived the deceased; (b) “waived the benefit” means, in relation to a pension partner, validly executed a form waiving the benefits pursuant to

section 57.1, and “waiver” means such a valid form. AR 367/93 s57;7/2002;20/2009 Waiver of pre-pension commencement death benefits 57.1 A pension partner who is potentially entitled to receive a benefit under this Division may, at any time before the deceased’s death, waive entitlement to the benefit in the form and manner and in accordance with the conditions set out in Form 4 of

Schedule 1, in which case that pension partner is not entitled to receive the benefit, and if the deceased designated that pension partner as the designated beneficiary, then that waiver also applies with respect to the benefit that the pension partner would otherwise have received as the designated beneficiary. AR 20/2009 s36 Return of prior, etc. service contributions 58(1) Except where a pension is to be paid under this Division, the amount of any employee contributions referred to in

section 29(1) or 30(1) paid to establish any prior service on an actuarial reserve basis covered by

section 20(1.1)(b), (

c) or (

d) and any leave without pay or salary in respect of which the participant paid employer contributions pursuant to

section 15(3) or pursuant to the former Act in respect of service in 1992 or 1993 shall be (

a) paid to, or transferred to a registered retirement savings plan belonging to, the surviving pension partner, if there is one and if that surviving pension partner has not waived the benefit, or

Section 59 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 50 (

b) paid to the person entitled to receive any benefit on the death, if there is no surviving pension partner or if that surviving pension partner did waive the benefit.

(2) Subdivisions A and B apply to a person only after any applicable payment or transfer required by subsection (1) has been made and after

section 20(4) has been applied. AR 367/93 s58;7/2002;69/2002;20/2009 Subdivision A For Service Before 1992 Benefit on death before commencement of pension - pension partner’s entitlements 59 Where there is a surviving pension partner who has not waived the benefit, that pension partner may choose, (

a) if the deceased was vested, (

i) the pension that would have been payable if the deceased, immediately before dying, had terminated under the circumstances referred to in

section 41(1) (disregarding age however) and had exercised the joint life option specified in

section 38(1)(d), with that surviving pension partner as the designated nominee or, if that pension partner so selects as an alternative, a guaranteed term pension, payable for (

A) whichever term, being 5, 10 or 15 years, is selected by that pension partner, or (

B) the life of that pension partner, whichever is the longer, in an amount that is the actuarial equivalent of that deemed joint life pension, (ii) to have transferred from the Plan an amount equal to the employee contributions and a further amount equal to (

A) current service contributions, (

B) contributions paid by the deceased in respect of the first year of leave without salary, to the extent that they are not included under paragraph (A), (

C) either the part of a sum transferred into the Plan under a reciprocal agreement that is recognized by the Minister as employee contributions or the

Section 60 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 51 total sum transferred into the Plan under the reciprocal agreement less the amount that is recognized by the Minister as employee contributions, whichever is less, and (

D) contributions made for service described in

section 20(1)(d)(iii), to the extent that the original contributions that were returned were contributions described in paragraph (A), (

B) or (C), that were not previously returned to the deceased, with interest, or (iii) to receive the amounts specified in subclause (ii), (

b) if the deceased died while a n employee not being vested, the benefit specified in clause (a)(ii) or (iii), or (

c) if neither clause (

a) nor clause (

b) applies, (

i) to receive an amount equal to the employee contributions, or (ii) to have that amount transferred from the Plan. AR 367/93 s59;7/2002;296/2002;301/2003;129/2004;20/2009 Idem - where no pension partner, but eligible dependent minor children 60 Where there is no surviving pension partner or the surviving pension partner has waived the benefit and the persons entitled to receive any benefit on the death are dependent minor children, the legal guardian of those children is entitled, on behalf and for the benefit of all those children, in equal shares, if more than one, to receive (

a) if the deceased was vested or died while an employee but not vested, the benefit specified in

section 59(a)(iii), or (

b) if clause (

a) does not appl y, to receive an amount equal to the employee contributions. AR 367/93 s60;7/2002;301/2003;20/2009 Idem - where no pension partner or eligible dependent minor children 61 Where there is no surviving pension partner or the surviving pension partner has waived the benefit and no dependent minor child entitled to a benefit under

section 60, the person entitled to

Section 63 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 52 receive any benefit on the death is entitled to receive an amount equal to the employee contributions. AR 367/93 s61;7/2002;20/2009 Subdivision B For Service After 1991

Interpretation for Subdivision 63 In this Subdivision, the deceased’s accrued benefits that are to be taken into account in determining commuted value are to be taken to be what the deceased’s accrued benefits would have been under Subdivision B of Division 3 had the deceased terminated rather than dying. AR 367/93 s63;7/2019 Benefit on death before commencement of pension - pension partner’s entitlements 64 Where there is a surviving pension partner who has not waived the benefit, that pension partner may choose, (

a) if the deceased was vested, (

i) both (

A) the pension that would have been payable if the deceased, immediately before dying, had terminated under the circumstances referred to in

section 52(1), as it incorporates

section 41(1) (disregarding age however) and had exercised the joint life option under

section 49(1), specified in

section 38(1)(d), with that surviving pension partner as the designated nominee or, if that pension partner so selects as an alternative, a guaranteed term pension, payable for (

I) whichever term, being 5, 10 or 15 years, is selected by that pension partner, or (II) the life of that pension partner, whichever is the longer, in an amount that is the actuarial equivalent of that deemed joint life pension, and (

B) to receive the employee contribution excess, o r (ii) to have an amount equal to the commuted value transferred from the Plan to a locked-in retirement account and either to receive the employee

Section 65 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 53 contribution excess or to have it transferred from the Plan, o r (

b) if the deceased was not vested, (

i) to receive an amount equal to the employee contributions, or (ii) to have that amount transferred from the Plan. AR 367/93 s64;7/2002;296/2002;301/2003;129/2004;20/2009 Idem - where no pension partner 65(1) Where there is no surviving pension partner or the surviving pension partner has waived the benefit and the deceased was vested, the person entitled to receive any benefit on the death is entitled to receive an amount equal to the aggregate of the commuted value and the employee contribution excess.

(2) Where there is no surviving pension partner or the surviving pension partner has waived the benefit and the deceased was not vested, the person entitled to receive any benefit on the death is entitled to receive an amount equal to the employee contributions. AR 367/93 s65;7/2002;301/2003;20/2009 Division 3 Benefits on Termination Before Pension Eligibility Application of Division 66 This Division applies with respect to a person who terminates with pensionable service before being entitled to apply for and receive a pension.

Return of prior service contributions 67(1) Except where a deferred pension is to be paid under this Division, the amount of any employee contributions referred to in

section 29(1) or 30(1) paid to establish any prior service on an actuarial reserve basis covered by

section 20(1.1)(b), (

c) or (

d) and any leave without pay or salary in respect of which the participant paid employer contributions pursuant to

section 15(3) or pursuant to the former Act in respect of service in 1992 or 1993 shall be paid to, or transferred to a registered retirement savings plan belonging to, the former participant or transferred from the Plan to a registered pension plan operated by another party to a special portability arrangement.

Section 68 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 54

(2) Subdivisions A and B apply to a person only after any applicable payment or transfer required by subsection (1) has been made and after

section 20(4) has been applied. AR 367/93 s67;69/2002;221/2007 Locking in under reciprocal agreements and portability arrangements 68 Nothwithstanding anything in this Division, where any amount that would otherwise be payable to a person or transferable on a non-locked-in basis under this Division represents money that has been received on a locked-in basis under a reciprocal agreement, a special portability arrangement or a portability arrangement established under

section 16.15 of the Regulations, that money must nevertheless be transferred from the Plan on a locked-in basis. AR 367/93 s68;221/2007 Subdivision A For Service Before 1992 Termination after 5 years’ combined pensionable service 69 A person who is vested may choose (

a) to receive an amount equal t o the employee contributions, (

b) to have the amount specified in clause (

a) transferred fro m the Plan, (

c) subject to sections 71 and 85, to have the person’s pensio n entitlements transferred from the Plan to a registered pension plan operated by the other party to a special portability arrangement in the amount required by that other party, not exceeding, however, the amount which, taken together with the amount to be transferred under

section 72(c) (excluding any employee contribution excess) is specified in

section 85.1(3)(a), or (

d) to receive, when the person attains the age of 55 years, a normal pension. AR 367/93 s69;301/2003;221/2007;7/2019 Termination before 5 years’ combined pensionable service 70 A person who is not vested may choose the benefit specified in

section 69(a), (

b) or (c). AR 367/93 s70;301/2003

Section 71 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 55 Excess not transferred under special portability arrangement 71 Where a sum of money is transferred from the Plan under a special portability arrangement that is less than the amount of the benefit transferable under a special portability arrangement under

section 85.1(3)(a)(ii), the excess is to be (

a) transferred from the Plan on a locked-in basis, to the extent that it is locked in, and (

b) paid to the person, to the extent that it is not. AR 367/93 s71;221/2007 Subdivision B For Service After 1991 Termination after 5 years’ combined pensionable service 72 A person who is vested may choose (

a) to have an amount equal to the commuted value transferred from the Plan to a locked-in retirement account and to receive the employee contribution excess, (

b) to have an amount equal to the commuted value transferred from the Plan to a locked-in retirement account and to have the employee contribution excess transferred from the Plan, (

c) subject to sections 74 and 98, to have the person’s pensio n entitlements transferred on a locked-in basis from the Plan to a registered pension plan operated by the other party to a special portability arrangement in the amount required by that other party, not exceeding, however, the amount which, taken together with the amount to be transferred under

section 69(c), is specified in

section 98.1(2)(a), or (

d) to receive (

i) a pension in the form of a normal pension and in the amount that is equal to a pension under

section 47 or 50, as the case may be, having reached the date when the person would have been entitled to receive a pension under that

section had the person continued to be an employee until that time, but taking into account only combined pensionable service and pensionable service, respectively, accumulated at the actual date of termination, and actual highest average salary, and (ii) the employee contribution excess. AR 367/93 s72;151/98;301/2003;221/2007;7/2019

Section 73 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 56 Termination before 5 years’ combined pensionable service 73 A person who is not vested may choose (

a) to receive an amount equal t o the employee contributions, (

b) to have the amount specified in clause (

a) transferred fro m the Plan, or (

c) subject to sections 74 and 98, to have the person’s pensio n entitlements transferred from the Plan to a registered pension plan operated by the other party to a special portability arrangement in the amount required by that other party, not exceeding, however, the amount which, taken together with the amount to be transferred under

section 70 (as it relates to

section 69(c)), is specified in

section 98.1(2)(a). AR 367/93 s73;301/2003;221/2007;7/2019 Excess not transferred under special portability arrangement 74

Section 71 applies with the reference in it to

section 85.1(3)(a)(ii) being taken as a reference to

section 98.1(2)(a)(ii). AR 367/93 s74;221/2007 Division 4 Cost-of-Living Increases Subdivision A For Service Before 1992 Cost-of-living increases 75(1) Notwithstanding anything else in the Plan, if the cost of living has increased in the 12-month period ending on October 31 in the calendar year previous to the current calendar year, all amounts payable as pensions in the current calendar year shall be increased by a cost-of-living increase calculated in accordance with subsections (3) to (6) or by the higher rate, if any, that the Minister establishes under

section 76.

(2) The increases shall also be applied to the periods (

a) of postponement under

section 43, and (

b) between termination and the commencement of deferred pensions under

section 69(d).

(3) The amount of a cost-of-living increase under this

section shall be determined using a pension index, calculated in accordance with subsection (4).

Section 76 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 57

(4) The pension index for each calendar year shall be calculated as (

a) the quotient obtained by dividing the sum of the consumer price indices for Alberta, as published by Statistics Canada, for each month in the 12-month period ending on October 31 in the previous year by the sum of the corresponding indices for the 12-month period immediately preceding that period, adjusted to 3 digits after the decimal point, or (

b) one, if the quotient so obtained is less than 1.

(5) Subject to subsection (6), the basic monthly amount of a pension, excluding any additional payment under

section 80, in one calendar year shall be increased, if applicable, annually with effect from January 1 of the following calendar year so that the amount payable, to the nearest cent, for a month in that following year is an amount equal to the product obtained by multiplying (

a) the basic amount that would have been payable for that month if no increase had been made under this section, b y (b) 1 + .6X, where X is equal to the pension index (calculated in accordance with subsection (4)) minus 1.

(6) Where a pension has commenced in the calendar year immediately preceding the effective date of a cost-of-living increase, the amount of the increase shall be multiplied by the fraction obtained by dividing the number of complete months in that year during which the pension was paid by 12.

(7) The amount of any increase under this

section must not exceed the maximum amount set for cost-of-living increases by the tax rules. AR 367/93 s75;69/2002 Increase by Minister of normal COLA 76(1) The Minister may establish a higher rate of increase for the purposes of

section 75(1) and (2), but only if the Plan meets the minimum funding and solvency requirements set by

section 48(2) and (3), and the regulations made with reference to

section 48(2), of the Employment Pension Plans Act (RSA 2000 cE-8), as that legislation was in force immediately before the commencement of

section 160(3) of the Employment Pension Plans Act (SA 2012 cE-8.1).

Section 77 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 58

(2) Section 75(6) and (7) apply with respect to increases under subsection (1). AR 367/93 s76;69/2002;34/2007;154/2014 Subdivision B For Service After 1991 Cost-of-living increases 77

Section 75 applies, with references in it to sections 76, 43, 69(

d) and 80 being taken as references to sections 78, 54, 72(

d) and 93 respectively. Increase by Minister of normal COLA 78(1) The Minister may establish a higher rate of increase for the purposes of

section 77, as it incorporates

section 75(1) and (2), but only if (

a) the Plan meets the minimum funding and solvency requirements set by

section 48(2) and (3), and the regulations made with reference to

section 48(2), of the Employment Pension Plans Act (RSA 2000 cE-8), as that legislation was in force immediately before the commencement of

section 160(3) of the Employment Pension Plans Act (SA 2012 cE-8.1), and (

b) the higher rate complies with the tax rules.

(2) Section 76(2) applies, with the reference in it to

section 75(6) and (7) being taken as a reference to

section 77, as it incorporates those subsections. AR 367/93 s78;69/2002;34/2007;154/2014 Division 5 Miscellaneous Subdivision A For Service Before 1992 Interest allowance 79(1) Except where otherwise specifically provided, where the Plan provides for the allowing of interest, interest shall be (

a) allowed at the rate of 4% per annum compounded semi-annually up to January 1, 1994, and (

b) thereafter allowed at t he rate, compounded annually, calculated in the manner and applied at the times, provided in subsections (2) to (5).

Section 80 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 59

(2) Subject to this section, the rate of interest to be allowed for the purposes of subsection (1)(

b) is the rate that is calculated on and as of the first day of the fiscal year on the basis of the average of the reference rates over the most recent 12-month period for which the rates are available and, where that rate results in a fraction of 1% that is expressed otherwise than as a multiple of a full 1/10 of 1%, rounded downwards to the next full 1/10 of 1%.

(3) Interest shall be applied on the first day of each fiscal year with respect to all contributions, with interest accumulated up to the end of the fiscal year immediately preceding the most recently completed fiscal year.

(4) Interest shall be applied on the first day of each fiscal year to contributions made during the most recently completed fiscal year at 1/2 of the applicable rate provided by subsection (2).

(5) Where a person becomes entitled to have a benefit, other than a pension, paid to the person or transferred, interest shall be applied to the date of payment, (

a) at the rate calculated by dividing 365 into the product of the number of days in the uncompleted fiscal year with respect to which interest is to be paid and the applicable rate provided for by subsection (2) at the end of the immediately preceding fiscal year, and (

b) to contributions made during the more recent uncompleted fiscal year, at 1/2 of the rate applied under clause (a). AR 367/93 s79;296/2002;34/2007;221/2007;7/2019; 54/2020 Co-ordination of certain pensions with C.P.P. and O.A.S. 80(1) Where a person is to receive a pension commencing on or after January 1, 2004 under

section 36, 41(2) or 69(

d) before attaining the age of 65 years, the person may choose to increase the pension by an amount equal to the actuarial equivalent of such amount as that person decides, which amount so decided is in this

section referred to, as applicable, as the “decided amount” and is to be an amount not exceeding but decided by reference to the maximum Canada Pension Plan retirement pension or the Old Age Security benefit or both until the person reaches the age of 65 years or dies before reaching that age.

(2) Where a person is to receive a pension commencing on or after January 1, 2004 under

section 41(1) or 59(a)(

i) before attaining the age of 65 years, the person may choose to increase the pension by an amount equal to the actuarial equivalent of such amount as that person decides, which amount so decided is in this

section referred to, as applicable, as the “decided amount” and is to be an amount

Section 80 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 60 not exceeding but decided by reference to the maximum Old Age Security benefit until the person reaches the age of 65 years or dies before reaching that age.

(2.1) Where a person who has chosen to increase a pension under subsection (1) or (2) attains the age of 65 years, the increased pension, including the added amount, shall be reduced at that time by the actuarial equivalent of the decided amount and, for (but only for) the remainder of that person’s lifetime, the pension shall be further reduced from that time by the difference between the decided amount and the actuarial equivalent of the decided amount.

(2.2) Where a person who has chosen to increase a pension under subsection (1) or (2) dies before attaining the age of 65 years, the increased pension, including the added amount, shall be reduced at that time by the actuarial equivalent of the decided amount without the further reduction referred to in subsection (2.1).

(7) Where a basic pension is upgraded under

section 42(2) and the person entitled to the pension had chosen to increase it by the amount of the actuarial equivalent of the decided amount of Canada Pension Plan retirement pension or the Old Age Security benefit or both, payment of the actuarial equivalent or recovery of the previously decided amount of Canada Pension Plan retirement pension or the Old Age Security benefit or both shall occur as if the basic pension had not been so upgraded.

(8) In this section, “basic pension” means a pension in the amount computed before any adjustment is made for (

a) co-ordination under this section, or (

b) any cost-of-living increase under Division 4 or under the former Act, other than, in the case of a deferred pension under

section 69(

d) of these plan rules or under

section 30(1)(

c) of the former Act, any increase for a period prior to its pension commencement.

(9) Notwithstanding anything in this section, a person is not entitled to make a choice under this

section if the monthly pension payments payable to that person under both Subdivisions A and B of a Division of this Part, after the reduction by the decided amount of Canada Pension Plan retirement pension or the Old Age Security benefit or both, as the case may be, has commenced, will be less than 1/12 of 4% of the year’s maximum pensionable earnings for the calendar year in which the termination or death occurred.

(10) The conditions set out in subsections (1) or (2) and (3) or (6), as they existed prior to their repeal by

Part 4 of the Public Sector Pension Plans (Miscellaneous 2004) Amendment Regulation, continue to apply with respect to a choice or selection made

Section 81 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 61 thereunder in respect of a pension commencing in or before 2003, but if a choice under subsection (1) or (2) relates to a pension commencing on or after January 1, 2004, the choice is deemed to have been made under subsection (1) as it exists on January 1, 2004. AR 367/93 s80;296/2002;301/2003;7/2019 Pension commencement 81(1) Where a person becomes entitled to receive a pension under

section 36 and does not postpone commencement of that pension, the effective date of the commencement of the pension is the day after termination.

(2) Where a person becomes entitled to receive a pension under

section 41, the effective date of the commencement of the pension is the latest of (

a) the date indicated in the application for the pension, (

b) the day of receipt of the application by the Minister, and (

c) the day after termination.

(3) Where a person becomes entitled to receive a pension under

section 69(

d) and does not postpone commencement of that pension, the effective date of the commencement of the pension is the latest of (

a) the date indicated in the application for the pension, (

b) the day of receipt of the application by the Minister, and (

c) the day the person atta ins the age of 55 years.

(4) Where a person postpones commencement of a pension, the effective date of the commencement of the pension is the later of (

a) the date indicated in the ap plication for the pension, and (

b) the day of receipt of the application by the Minister.

(5) Notwithstanding subsections (2) and (3), the Minister may treat the effective date of the commencement of a pension under either of those subsections as being a date that is not more than 6 months prior to the date that would otherwise be the effective date under that subsection and that is not prior to the day after termination.

(6) The effective date of the commencement of a pension under

section 59(a)(

i) is the day of the deceased’s death. AR 367/93 s81;296/2002

Section 82 AR 367/93 MANAGEMENT EMPLOYEES PENSION PLAN 62 Commencement of guaranteed term of years 82 The guaranteed term of a guaranteed term pension is to be taken as commencing on pension commencement. Requirement of evidence 83(1) Before any benefit is paid or transferred, there must be provided to the Minister (

a) where it is necessary to de termine in relation to a person the age, pension partner, single or dependent minor child status, legal change of name, fact of death or facts relative to previous employment, documents evidencing the facts, and (

b) where a person applies for a pension under

section 41, (

i) a medical statement from a physician outlining the findings of a medical examination and assessing the degree of the person’s disability or mental or physical impairment, and (ii) any other documents evidencing that incapacity that the Minister specifies.

(2) Without limiting the application of subsection (4), for the purposes of determining whether a person who has been granted a pension under

section 41 is to continue to receive the same amount of pension or not, the Minister may require that person (

a) to undergo the special medical examinations, (

b) to supply the reports, and (

c) to supply the statements of the person’s occupation and earnings for any period, that the Minister specifies.

(3) An employer shall submit to the Minister the evidence required by the Minister in respect of a participant who applies for a pension under

section 41.

(4) For the purposes of determining whether a person who has been granted a pension is or is not entitled t

Document details

Collection	Alberta — Regulations
Citation	Alta. Reg. 367/1993
Type	regulation
Volume / chapter	1993 367
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	8125fb73502d29d1add2e19faa8a135456f520f5

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