First

Session, 47th General Assembly

Elizabeth II, 2012

BILL 44

AN ACT TO REVISE AND

AMEND THE LAW RESPECTING PENSIONS FOR THE MEMBERS OF THE ROYAL NEWFOUNDLAND CONSTABULARY, CORRECTIONAL OFFICERS AND

CERTAIN FIREFIGHTERS OF THE ST. JOHN 'S

REGIONAL FIRE DEPARTMENT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

THOMAS W. MARSHALL, Q.C.

Minister of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would repeal and replace

the Uniformed Services Pensions Act, 1991

to modernize and clarify the law

respecting the Uniformed Services Pension Plan.

The Bill would

provide for consistency with

certain provisions of the Pensions

Benefits Act, 1997 and the Income Tax

Act ( Canada );

allow a terminating employee

who is eligible for a deferred pension to elect to receive the commuted value

of the pension as determined at the date of election;

establish time limits with respect

to the purchasing of periods of leave without pay at favourable rates;

allow a terminating vested

employee who has reached 55 years of age to elect to take an actuarially

reduced pension; and

allow the pensions for

survivors of certain plan members to be increased to 60% of the deceased

member's pension, retroactive to the date of death.

A BILL

AN ACT TO REVISE AND AMEND THE LAW

RESPECTING PENSIONS FOR THE MEMBERS OF THE ROYAL NEWFOUNDLAND

CONSTABULARY, CORRECTIONAL OFFICERS AND CERTAIN FIREFIGHTERS OF THE ST. JOHN 'S REGIONAL FIRE

DEPARTMENT

Analysis

Short title

Definitions

Application

Pension plan

Where pension prohibited

Contributions by employees

Employers' contributions

Payments

Repayment of contributions

Election upon termination with 5 years

service

Purchase of prior service

Purchase by designated employees

Purchase of service with related plans

Leave of absence without pay

Purchase of service

Transfer from the Government Money

Purchase Pension Plan

Transfer

Right to pension

Retirement

Early retirement

Medical retirement

Calculation of pension

CPP reduction factor

Employee under former Act

Deferred pension

Re-employment

Survivor benefit

Death of employee

Estate provision

Pension shall not be assigned or

attached

Error or misrepresentation

Rectification

Committee

Marriage breakdown

Appeal

Procedure

Conflict of Acts

Existing plan protected

Income Tax Act ( Canada )

Ministerial directive

Consequential Amdt.

SNL1991 c19 Rep.

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Uniformed

Services Pensions Act, 2012 .

Definitions

2. In

this Act

(a) "Canada Pension Plan" means the Canada Pension Plan,

chapter C-8 of the

Revised Statutes of Canada, 1985;

(b) "child" means a natural child, a

stepchild or an adopted child;

(c) "cohabiting partner",

(

i) in relation to an employee, pensioner or

deferred pensioner who has a spouse, means a person who is not the spouse who

has cohabited continuously with the employee, pensioner or deferred pensioner

in a conjugal relationship for not less than 3 years,

(ii) in relation to an employee, pensioner or

deferred pensioner who does not have a spouse, means a person who has cohabited

continuously with the employee, pensioner or deferred pensioner, in a conjugal

relationship for not less than one year,

and is cohabiting or has cohabited with the

employee, pensioner or deferred pensioner within the preceding year;

(d) "commuted value" means commuted

value as defined in the Pension Benefits

Act, 1997 ;

(e) "employee" means

(

i) every member of the Royal Newfoundland Constabulary

as defined in the Royal Newfoundland Constabulary Act, 1992, and

(ii) the superintendent, every assistant

superintendent and every commissioned and correctional officer of the

penitentiary,

employed by the government of the province

on a full-time basis, but does not include a casual, part-time or contractual

person whose terms of employment specifically exclude him or her from

participation in the pension plan, or other persons or groups of persons

excluded by a directive of the minister, and includes

(iii) every member of the St. John's Regional Fire Department as

defined in the City of St. John's Act who,

on December 31, 1991

was a member of the pension plan;

(f) "former Act" means the Uniformed Services Pensions Act, 1991 ;

(g) "minister" means the minister

appointed under the Executive Council Act

to administer this Act;

(h) "month" means a calendar month and

includes a portion of a calendar month;

(i) "normal retirement age" means the

end of the month in which an employee reaches the age of 60 years;

(j) "penitentiary" means the

penitentiary as defined in the Prisons

Act;

(k) "pension" means an annual pension

payable to a former employee in accordance with this Act;

(l) "pension fund" means the Province of Newfoundland and Labrador Pooled Pension

Fund established under the Pensions

Funding Act;

(m) "pension plan" means the Uniformed

Services Pension Plan referred to in this Act;

(n) "pensionable salary" means the

average of the best 3 years salary before retirement;

(o) "pensionable service" means service

credited while in receipt of full salary and calculated in years and months

which may be taken into account under the pension plan for the purpose of

determining whether an employee has qualified for the award of a pension and

the amount of the pension;

(p) "pensioner" means a person in

receipt of a pension or survivor benefit under this Act;

(q) "prescribed" means, except where the

context otherwise requires, prescribed by a directive of the minister;

(r) "principal beneficiary" means the

spouse of an employee, pensioner or deferred pensioner, or where the employee,

pensioner or deferred pensioner has a cohabiting partner, his or her cohabiting

partner;

(s) "salary" means the normal

remuneration paid at an annual, monthly, biweekly, weekly or hourly rate for

the normal working period of the employee, or other remuneration that may be

prescribed, but does not include payments made on a fee basis;

(t) "spouse" means a person who

(

i) is married to the employee, pensioner or

deferred pensioner,

(ii) is married to the employee, pensioner or

deferred pensioner by a marriage that is voidable and has not been voided by a

judgment of nullity, or

(iii) has gone through a form of a marriage with the

employee, pensioner or deferred pensioner, in good faith, that is void and is

cohabiting or has cohabited with the employee, pensioner or deferred pensioner

within the preceding year;

(u) "supplementary account" means the

Uniformed Services Supplementary Plan Account established under subsection

4(2);

(v) "survivor benefit" means a benefit

payable to the principal beneficiary or child of the employee, pensioner or

deferred pensioner;

(w) "terminating employee" means an

employee who terminates his or her employment or whose employment is terminated

for reasons other than disability and who is not entitled to immediately

receive a pension under

section 19;

(x) "year" means 12 months; and

(y) "YMPE" means the year's maximum

pensionable earnings as defined under the Canada Pension Plan.

Application

(1) This

Act applies to all employees.

(2) A person shall not be eligible to make

contributions to or participate in the pension plan if he or she

(

a) is in receipt of a pension under this Act or a

pension under the former Act or pension provisions under predecessor legislation;

(

b) is employed on a temporary basis for a period

of less than 3 months; and

(

c) is employed as a contractual officer whose

terms of employment specify that this Act does not apply.

(3) An employee under this Act is not an employee

for the purpose of pension provisions in another statute.

Pension plan

(1) The

Uniformed Services Pension Plan continued under the former Act is continued,

subject to this Act, as the pension plan.

(2) The Uniformed Services Supplementary Plan

Account is established in the Consolidated Revenue Fund.

Where pension

prohibited

5. An

employee shall not receive a pension under the pension plan until the employee

has been credited with not less than 5 years of pensionable service.

Contributions by

employees

(1) All

employees shall make the contributions to the pension plan as set out in this

section or under the other provisions of this Act.

(2) There shall be deducted from the salary of

every employee

(a) 9.95% of the portion of the employees salary

that is the employees basic exemption under the Canada Pension Plan;

(b) 8.15% of the portion of the employees salary

that is in excess of the basic exemption referred to in paragraph (

a) up to and

including the YMPE;

(c) 9.95% of the portion of the employees salary

that is in excess of the YMPE; and

(

d) a greater or lesser amount as prescribed.

(3) Where contributions have been deducted from

the salary of an employee in excess of those set out in subsection (2), those

excess contributions shall be returned to the employee.

(4) All deductions made under subsection (2) shall

be deposited each month to the pension fund.

(5) Where the amount of contributions made under

subsection (2) exceeds the amount of the annual deductible contributions to a

registered plan permitted under the Income

Tax Act (Canada), the amount of the excess, as determined at the end of the

calendar year in which the contributions are made, shall be paid from the

pension fund to the supplementary account no later than the last day of

February in the immediately following calendar year.

Employers' contributions

(1) The

government shall pay out of the Consolidated Revenue Fund and pay into the

pension fund

(

a) with respect to employees referred to in

subparagraphs 2(e)(

i) and (ii), an amount equal to the employee contributions

made under subsection 6(2);

(

b) with respect to employees referred to in

subparagraph 2(e)(iii), an amount which, when added to the contributions paid

by the City of St Johns, equals the employee contributions made under

subsection 6(2); and

(

c) a greater or lesser amount that may be

prescribed.

(2) The City of St. Johns shall pay into the pension fund,

with respect to employees referred to in subparagraph 2(e)(iii), an amount

equal to the employee contributions made under subsection 6(2), to a maximum of

8% of the employee's salary.

(3) Where the contribution of the government of

the province was reduced under this Act, between the period April 1, 1993 and

March 31, 1996, an employee or a former employee may elect to contribute an

amount, in addition to the amount which he or she is or was required to

contribute under

section 6, to be calculated in accordance with the terms and

conditions which the Lieutenant-Governor in Council may prescribe by

regulation, which would place the employee or former employee in the position

he or she would have been in respecting an award of pension if the government of

the province had not reduced its contribution.

(4) Where the amount of government contributions

under subsection (1) or employer contributions under subsection (2) exceeds the

amount of the annual deductible contributions to a registered plan permitted

under the Income Tax Act (Canada),

the amount of the excess, as determined at the end of the calendar year in

which the contributions are made, shall be paid from the pension fund to the

supplementary account no later than the last day of February in the immediately

following calendar year.

Payments

(1) A pension and other related money payments under the pension plan shall be

paid according to the following:

(

a) a pension calculated under subsection 22(1)

relating to service accrued before February 1, 1991 shall be paid from the

pension fund;

(

b) a pension calculated under subsection 22(1)

relating to service accrued after January 31, 1991, not exceeding the maximum

annual allowable registered pension permitted under the Income Tax Act (Canada) shall be paid from the pension fund; and

(

c) a portion of a pension calculated under

subsection 22(1) relating to service accrued on and after February 1, 1991 that

exceeds the maximum annual allowable registered pension permitted under the Income Tax Act ( Canada ) shall be paid from the

supplementary account.

(2) Benefits payable under sections 27, 28 and 29

and a return of contributions, commuted value or other lump sum payment in respect

of an entitlement under this Act shall be paid from the pension fund and the

supplementary account on the same basis and in the same proportion as a pension

payment under subsection (1).

(3) A

pension shall be paid as the minister directs, in equal and periodic payments,

and shall cease at the end of the month in which the death of the pensioner

occurs.

(4) A survivor benefit shall be paid as the minister directs, in equal and periodic

payments, and shall cease at the end of the month in which the death of the

survivor occurs or the entitlement of the children ends.

Repayment of contributions

(1) A

terminating employee with less than 5 years of pensionable service may elect to

receive a refund of contributions made by that employee, with interest at a prescribed

rate.

(2) Where an employee with less than 5 years of

pensionable service dies, the contributions made by that employee, with

interest at a prescribed rate, shall be paid to the employee's estate.

Election upon

termination with 5 years service

(1) A

terminating employee with at least 5 years of pensionable service who is

ineligible for an immediate, unreduced pension, may elect, within 180 days

after termination,

(

a) a transfer of the commuted value of the

pension entitlement of the employee, in accordance with paragraph 40(1)(

a) of

the Pension Benefits Act, 1997 ;

(

b) a deferred pension in accordance with

section

25; or

(

c) a return of the contributions made by that

employee, with interest at a prescribed rate, for periods of pensionable service

credited

(

i) before January 1, 1987, and

(ii) before January 1, 1997 where the employee has

less than 10 years of pensionable service and is less than 45 years of age,

and a transfer of the commuted value of the

terminating employee's pension entitlement based on the remaining periods of

pensionable service, under paragraph (a).

(2) In default of an election under subsection (1),

the employee is considered to have elected to receive a deferred pension.

(3) An employee who elects or is considered to

have elected to receive a deferred pension may revoke that election and elect a

transfer under paragraph (1)(a), calculated at the date of election.

(4) A transfer under paragraph (1)(

a) which is not

to another pension plan or deferred life annuity shall, regardless of when the

pensionable service was credited, be to a retirement arrangement approved for

this purpose by the Superintendent of Pensions.

(5) The transfer under paragraph (1)(

a) shall not

be less than the contributions made by the employee, with interest at a prescribed

rate.

(6) Where the transfer under paragraph (1)(

a) would be greater than the maximum amount permitted under the Income Tax Act ( Canada ), the excess shall be paid

to the employee.

(7) Where the annual pension payable is less than

4% of the YMPE for the calendar year in which the employment is terminated, the

employee or former employee is entitled to receive a lump sum payment instead

of the deferred pension under

section 25.

(8) Where the commuted value of a deferred pension

benefit is less than 10% of the YMPE for the calendar year in which employment

was terminated, the employee or former employee is entitled to receive a lump

sum payment instead of the deferred pension under

section 25.

Purchase of prior

service

(1) Where

a person who was covered under a pension plan established under this Act, or a

predecessor of this Act, ceased to be employed and received a termination

benefit and later becomes an employee, that person may be credited with the

prior pensionable service that he or she may elect to purchase in accordance

(2) Where an employee to whom subsection (1) applies

transferred his or her termination benefit to a registered retirement savings

plan, a deferred profit sharing plan or a registered pension plan, payment by

that employee for the purchase of prior pensionable service shall include a

transfer of the funds remaining in the registered retirement savings plan, the

deferred profit sharing plan or the registered pension plan from the amount

originally transferred.

(3) Where a person, who was covered under a

pension plan established under this Act, or a predecessor of this Act, ceased

to be employed and has not received a termination benefit later becomes an employee,

that person shall be credited with all pensionable service that accrued

immediately before the employees termination.

(4) Where an employee

(

a) continued in employment after reaching normal

retirement age before May 26, 2007;

(

b) continues to be an employee on and after May

26, 2007; and

(

c) did not receive a pension upon reaching normal

retirement age,

he or she may be credited with the

pensionable service in respect of the period of service beyond normal

retirement age that he or she may elect to purchase in accordance with prescribed

(5) For the purpose of subsections (1) and

(4), periods of pensionable service may be credited where that service

qualifies as a period of eligible service under the Income Tax Act ( Canada ).

Purchase by designated

employees

(1) Where

an employee was formerly employed by a company owned by the government of the

province, the employee may elect to purchase as pensionable service the period

of full time service worked with that company while that company was owned by

government, provided that service qualifies as eligible service under the Income Tax Act ( Canada ).

(2) Purchase of pensionable service under

subsection (1) shall be at full actuarial cost determined at the date of

purchase.

(3) For the purpose of subsection (1) included

companies and periods of service eligible to be purchased shall be prescribed.

Purchase of

service with related plans

(1) Where

an employee was formerly covered under a pension plan established or continued under

(

a) the Teachers'

Pensions Act;

(

b) the Members

of the House of Assembly Retiring Allowances Act;

(

c) the Memorial University Pensions Act;

(

d) the

Public Service Pensions Act, 1991; or

(

e) an Act replaced by

an Act referred to in

paragraphs (

a) to (

d) and received a termination benefit under

that pension plan, the employee shall be credited with the pensionable service

recognized by those pension plans that he or she may elect to purchase upon

paying contributions that may be prescribed.

(2) For the purpose of subsection (1), periods of

pensionable service may be credited where that service qualifies as a period of

eligible service under the Income Tax Act

( Canada ).

Leave of absence

without pay

(1) An

employee who is on authorized leave of absence without pay may have that period

credited as pensionable service upon payment of the contributions required

under

section 6.

(2) The employer who granted the leave of absence shall

pay the matching contribution.

(3) The contributions made under subsection (1) and

(2) and the calculation of a pension under

section 22 shall be based on the

salary that the employee was earning immediately before the commencement of his

or her authorized leave of absence without pay provided that the employee

elects to purchase the relative period of leave within the 90 days after

returning from that authorized leave or before the date of termination from the

employer, whichever is earlier.

(4) Should the employee terminate from his or her

employer before the expiration of the 90 days and fail to elect to purchase

that leave without pay and later become an employee, the person may elect to

purchase the leave without pay within the 90 day period as though the person

continued to be employed with the previous employer.

(5) Notwithstanding subsection (2), authorized

leave of absence without pay may be purchased after the expiration of the 90

days at a cost that may be prescribed and no matching contributions are

required by the government of the province or an employer.

(6) Upon the commencement of this Act, employees

with a period of leave of absence without pay who did not purchase that service

before the commencement of this Act shall have 120 days from the commencement

of this

section to purchase those periods as pensionable service in accordance

with subsections (1) and (3).

(7) The contributions referred to in subsection

(6) shall be matched by the current employer.

(8) Pensionable service credited under this

section shall be limited to a cumulative maximum of 5 years in respect of

periods of unpaid leave of absence or periods of reduced pay plus an additional

3 years in respect of periods of parenting and shall be subject to the limits

on prescribed compensation set out in the regulations under the Income Tax Act (Canada).

Purchase of

service

(1) All

sums payable under sections 11, 12, 13 and 14 together with the prescribed

interest may be paid by equal instalments over the shorter of

(

a) the period of pensionable service being

purchased; or

(

b) the period from the date of election to a date

immediately preceding the date on which the employee retires.

(2) Service shall not be credited as pensionable

service under sections 13 and 14 where the person is receiving a pension in

relation to that service.

Transfer from the

Government Money Purchase Pension Plan

16. The

minister shall accept the transfer of funds from the Government Money Purchase

Pension Plan created by the Government

Money Purchase Pension Plan Act and establish the amount of related

prescribed.

Transfer

(1) A

person who, before becoming an employee, made contributions to a pension plan

that is registered as a pension plan under the Income Tax Act (Canada), other than a pension plan to which the Portability of Pensions Act applies,

may, upon becoming an employee, elect to have that pensionable service

transferred directly from the exporting pension plan to the pension plan in

accordance with this section.

(2) Subsection (1) applies where the employee

(

a) has terminated his or her membership in

the exporting pension plan;

(

b) has not received a termination benefit from

the exporting pension plan; and

(

c) is entitled to transfer his or her full

entitlement from the exporting plan.

(3) An election made under subsection (1) is

irrevocable.

(4) The pensionable service to be credited under

the pension plan shall be determined with reference to the actuarial cost of

the pensionable service at the date of the election under subsection (1) as calculated

by the pension plans actuary.

(5) Upon an election under subsection (1), the

exporting pension plan shall transfer to the pension plan a lump-sum amount

that is the lesser of

(

a) the actuarial cost of the pensionable service

at the date of election; and

(

b) the value of the termination benefit to which

the person is entitled.

(6) Where the lump-sum amount transferred under

subsection (5) is insufficient to finance the actuarial cost of the full period

of pensionable service that has been transferred under subsection (1), the employee

may elect

(

a) to pay the amount required to make up the

deficiency; or

(

b) to be credited with the proportionate period

of pensionable service that can be financed by the lump-sum amount.

(7) The amount of a deficiency shall be paid in

the prescribed manner.

(8) For the purpose of this

section

"actuarial cost" means the cost of the service to be credited as

determined at the date of the election and calculated with reference to the

assumptions from the most recent actuarial valuation for funding purposes.

Right to pension

18. An

employee shall, subject to this Act, receive a pension as a matter of right.

Retirement

(1) An

employee who has accrued at least 5 years of pensionable service shall be

retired under the pension plan

(

a) when he or she makes an election under

subsection (2) or terminates employment upon reaching normal retirement age; or

(

b) where he or she continues in employment after

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

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

(2) An employee who has been credited with at

least 25 years of pensionable service may elect to retire and shall be awarded

a pension calculated and paid in accordance with this Act.

Early retirement

(1) An

employee who has reached at least

55 years of age and has been credited with not less than 5 years of pensionable

service may elect to retire and receive an actuarially reduced pension.

(2) For

the purpose of this section, an actuarially reduced pension refers to a pension

that has been reduced by an amount determined by the actuary that reflects the

fact that the pension is being paid from a date that is earlier than the date the

employee, based on his or her service, would be eligible for an unreduced

pension.

Medical

retirement

(1) An

employee who has been credited with at least 5 years of pensionable service,

has used up all sick leave entitlement and is unable to perform efficiently the

duties of his or her position or those duties of an alternative position owing

to an incapacity which is medically certified to the satisfaction of the

minister as likely to be permanent, shall be awarded a pension from a date to

be determined by the minister.

(2) Notwithstanding subsection (1), where, during

the period an employee is on sick leave,

(

a) the employee's employment is terminated by

reason of redundancy;

(

b) the employee has not used up all his or her

sick leave benefits; and

(

c) the employee meets the requirements of this

section,

the employee shall be retired under the

pension plan from the date the employee's employment is terminated.

(3) Notwithstanding subsection (1), the minister

reserves the right to require an employee to participate in a rehabilitation

program which has been recommended by medical advisors, or to take other action

which is reasonable in the circumstances, to rehabilitate the employee to the

extent possible so as to enable the employee to reasonably perform the duties

of his or her position or alternative position.

(4) Where an employee elects not to participate or

through his or her own negligence does not respond properly to an approved rehabilitation

program, or knowingly performs

an act which aggravates the medical condition to

cause permanent disability, or refuses an offer of an alternative position,

that employee shall be ineligible for a pension under this section.

(5) Where an employee who retired under subsection

(1) becomes fit for work and receives an offer of re-employment to his or her

former position or an alternative position within 12 months of his or her

retirement and refuses the offer without reasonable cause, the pension paid to

that employee may be cancelled by the minister.

(6) For the purpose of this section, an

alternative position includes a position for which, in the opinion of the

minister, the employee is reasonably suited by virtue of his or her training,

experience and education and which has been offered in writing to the employee.

Calculation of

pension

(1) A

pension awarded to an employee is the product of 2% of the pensionable salary

of the employee multiplied by the number of years or fraction of years credited

as pensionable service before retirement.

(2) Notwithstanding the calculation of a pension

under this section, the pension payable from the pension fund shall not exceed

the maximum allowable for registered pension plans under the Income Tax Act ( Canada ).

(3) Where the pension calculated under subsection

(1) exceeds the maximum under the Income

Tax Act ( Canada ),

the excess shall be paid from the supplementary account.

(4) Notwithstanding subsection (1), where the

contribution to the pension plan of the government of the province is reduced

under this Act and an employee or a former employee affected by the reduction

does not make a compensating contribution under this Act, the formula set out

in subsection (1) respecting the calculation of an award of pension shall be

adjusted to reduce the employee's or former employee's award of pension

proportionately.

CPP reduction

factor

(1) A

pension awarded under

section 22 shall be reduced by 6/10 of 1% of the

employee's pensionable salary multiplied by the number of years or fractions of

years of pensionable service credited after March 31, 1967, not exceeding 35

years.

(2) For the purpose of subsection (1), an

employee's pensionable salary may not exceed the average of the employee's YMPE

under the Canada Pension Plan in the year the employee has retired and in the 2

years immediately before the employee's year of retirement.

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

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

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

Employee under

former Act

24. An

employee who on the commencement of this Act was an employee under the former

Act shall be credited under this Act with all pensionable service accrued under

the former Act.

Deferred pension

(1) An

employee who has been credited with at least 5 years of pensionable service who

terminates his or her employment may elect to

(

a) defer payment of a pension until the employee

reaches normal retirement age; or

(

b) where he or she qualifies, receive an

actuarially reduced pension in accordance with

section 20.

(2) Where an employee elects to receive a pension

under paragraph (1)(a), and subsequently becomes an employee, the employee is

considered to have revoked his or her election.

(3) Where an employee makes an election under paragraph

(1)(

a) and there is an increase in the rate of pension, that increase shall

apply to the employee's pension, as if the employee was a pensioner on the first

day of the month immediately following the date of termination of employment.

(4) This

section applies to persons entitled to a

deferred pension payable under the former Act.

(5) A former employee with at least 5 years

pensionable service whose employment terminated before this Act comes into

force and who did not receive a termination benefit may, before becoming eligible

to receive an unreduced pension under this Act, make the same election as a

terminating employee under

section 10.

Re-employment

(1) A

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

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

under the Income Tax Act (Canada) may

be re-employed in a pensionable position.

(2) A pensioner who has retired under the pension

plan under

section 21 but who has not reached the age at which a pension

benefit is required to begin under the Income

Tax Act ( Canada )

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

re-employed in a pensionable position.

(3) Where a pensioner accepts an offer of

re-employment under this section, his or her pension shall be cancelled, and

subject to the making of contributions as required under this Act, the period

of subsequent employment shall, in calculating a pension under subsequent

retirement, be added to the years of pensionable service accumulated before his

or her first retirement and the pension shall be calculated in accordance with

section 22 as if the award of the former pension had not occurred.

(4) For the purpose of re-employment under this

section, a pension does not include a survivor benefit.

Survivor benefit

(1) A

surviving principal beneficiary of

(

a) a pensioner;

(

b) a deferred pensioner; or

(

c) an employee with at least 5 years of

pensionable service,

is entitled on the death of the pensioner,

deferred pensioner or employee to a survivor benefit equal to 60% of the

pension entitlement of the pensioner, deferred pensioner or employee.

(2) Where the pension entitlement of the

pensioner, employee or deferred pensioner on his or her death has not been

reduced under subsection 23, the reduction shall be applied to the pension

entitlement on the first day of the month following the month in which he or

she would have reached 65 years and the survivor benefit shall be adjusted accordingly.

(3) The survivor benefit shall be paid to the

surviving principal beneficiary for life and shall commence on the first day of

the month following the month in which the pensioner, employee or deferred pensioner

dies.

(4) Where the surviving principal beneficiary dies

while in receipt of a survivor benefit, the survivor benefit shall be paid to

or for the benefit of the surviving children of the pensioner, deferred pensioner

or employee while they are under the age of 18 years, or under the age of 24

years while they are in full-time attendance at a recognized school or

post-secondary institution.

(5) Where a pensioner referred to in subsection

(1) dies leaving no surviving principal beneficiary, the survivor benefit shall

be paid to or for the benefit of his or her surviving children while they are

under the age of 18 years, or under the age of 24 years while they are in

full-time attendance at a recognized school or post-secondary institution.

(6) Where a survivor benefit became payable after

January 1, 1997, the survivor benefit shall be equal to 60% of the pension

entitlement of the pensioner, deferred pensioner or employee.

(7) Subsection (6) is considered to have come into

force on January 1, 1997.

Death of employee

(1) Where

an employee with at least 5 years of pensionable service or deferred pensioner

dies before receiving a pension and a survivor benefit is payable under

section

27, the surviving principal beneficiary may elect

(

a) to receive the survivor benefit; or

(

b) to receive in a lump sum

(

i) the commuted value of the survivor benefit, or

(ii) the commuted value of the employees pension,

whichever is greater.

(2) Where an employee with at least 5 years of

pensionable service or a deferred pensioner dies before receiving a pension and

there is no principal beneficiary entitled to a survivor benefit under

section

27, the commuted value of the employee's pension, calculated as of the date of

death, shall be paid to the estate of the employee.

Estate provision

29. Where

the total pension or survivor benefit paid under this Act at the date of the

pensioner's death or the last survivor benefit has been paid and the amount

paid does not exceed the deceased

employee's contributions together with the prescribed interest calculated to

the date of retirement, the difference in the amount of contributions together

with interest and the total pension or survivor benefits shall be paid to

the person whose benefit ceased or to that person's estate.

Pension shall not

be assigned or attached

30. A

pension payable under the plan shall not be assigned, charged, attached,

anticipated or given as security and is exempt from execution, seizure or

attachment, and a transaction purporting to assign, charge, attach, anticipate

or give as security such money is void, except in accordance with the Pension Benefits Act, 1997.

Error or misrepresentation

31. The

minister may adjust or cancel a pension which has been awarded or paid as a

result of error or misrepresentation and where an overpayment of pension has

been made the minister may reduce, suspend, or withdraw future payments of the

pension until the amount has been recovered.

Rectification

32. Where

a pension has been underpaid or unusual delays in payment have occurred, the

minister may make payments in rectification

together with the prescribed interest.

Committee

33. The

Lieutenant-Governor in Council may appoint a committee to assist the minister

in the administration of this Act and may prescribe the duties of the committee

and designate the matters on which the committee shall make recommendations to

the minister.

Marriage breakdown

(1) Where

(

a) a court has made an order for the division of

matrimonial property under the Family Law

Act or a similar order has been made by a court outside the province; or

(

b) an employee has entered into a separation

agreement within the meaning of the Family

Law Act to divide matrimonial property,

a right under this Act shall be divided in

accordance with the court order or separation agreement and

Part VI of the Pension Benefits Act, 1997 applies with

the necessary changes.

(2) Calculations under this Act respecting maximum

contributions and years of service shall be done as if there had been no

division under this section.

Appeal

(1) An

employee or other person who is aggrieved by a decision of the minister or of

the Lieutenant-Governor in Council in a matter related to, connected with or

arising out of his or her entitlement to or the award to the employee of a

pension or other money under this Act may appeal from the decision to a judge

of the Trial Division.

(2) Where an employee or other person proposes to

appeal under subsection (1), the employee shall within 60 days after receiving

the decision of the minister or of the Lieutenant-Governor in Council, serve on

the minister a written notice of his or her intention to appeal to the judge of

the Trial Division.

(3) The notice of appeal served under subsection

(2) shall be signed by the employee or other person or by his or her solicitor

or agent and in the notice, the grounds of the appeal shall be set out, and the

employee or other person shall file a copy of the notice in the Registry of the

Supreme Court.

Procedure

(1) The

employee or other person shall, within 14 days after service of the notice of

appeal under subsection 35(2), apply to the judge for the appointment of a day

for the hearing of the appeal, and shall, not less than 14 days before the

hearing, serve upon the minister a written notice of the day appointed for the

hearing.

(2) The judge shall hear the appeal and the

evidence adduced before him or her by the employee or other person and by the

minister in a

summary manner and shall decide the matter of the appeal.

(3) The minister shall cause to be produced before

the judge on the hearing of the appeal all papers and documents in the

minister's possession affecting the matter of the appeal.

(4) The costs of the appeal are in the discretion

of the judge who may make an order respecting them in favour of or against the

minister and may fix the amount of the costs.

(5) An appeal may be taken from an order or

decision of the judge to the Court of Appeal upon a point of law raised on

the hearing of the appeal, and the rules governing appeals to that Court from

an order or decision of a judge of the Trial Division apply to appeals under

this subsection.

Conflict of Acts

(1) Where

this Act conflicts with the Royal

Newfoundland Constabulary Act , 1992, sections

340.1 to 340.24 of the City of St. John's

Act , or the Prisons Act or regulations made under those Acts, this Act shall

prevail.

(2) Notwithstanding subsection (1), where this Act

conflicts with the Pensions Benefits Act,

1997 that Act shall prevail and the Lieutenant-Governor in Council may make

regulations to further comply with that Act.

Existing plan protected

38. All

benefits acquired under the former Act before the commencement of this Act are

protected under this Act.

Income Tax Act ( Canada )

39. For

the purpose of the Income Tax Act ( Canada )

(

a) the pension adjustment factor as defined under

the Income Tax Act ( Canada ) shall not exceed 18% of

pensionable salary for all years of service after December 31, 1990 ;

(

b) all employee and employer contributions shall

be made with reference to actuarial reports; and

(

c) the minister is the administrator of the

pension plan.

Ministerial

directive

40. The

minister may issue directives for the purpose of this Act.

Consequential

Amdt.

(1) Paragraph 3(

a) of the Pensions Funding Act is repealed and

the following substituted:

(

a) the Uniformed

Services Pensions Act, 2012 and the Royal Newfoundland Constabulary Act, 1992;

(2) Where in

an Act or regulation there is a

reference to The Uniformed Services

Pensions Act or the Uniformed

Services Pensions Act, 1991 or a part or

section of those Acts, the

reference shall be considered to be a reference to the equivalent Part or

section contained in the Uniformed

Services Pensions Act, 2012.

SNL1991 c19 Rep.

42. The Uniformed

Services Pensions Act, 1991 is repealed.

Queen's Printer