Second

Session, 45th General Assembly

Elizabeth II, 2005

BILL 24

AN ACT TO REVISE THE LAW ABOUT

PENSIONS FOR MEMBERS OF THE HOUSE OF ASSEMBLY

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

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

Committee .................................................................................... Amendment

November 24, 2005

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

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

HONOURABLE

LOYOLA SULLIVAN

Minister

of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

The purpose of this Bill is set out

in the

Long Title.

A BILL

AN ACT TO REVISE THE LAW RESPECTING

PENSIONS FOR MEMBERS OF THE HOUSE OF ASSEMBLY

Analysis

Short title

PART

INTERPRETATION

Interpretation

Calculation

PART

APPLICATION

Application

Election

Re-election

Contributions

Return of contributions

PART

III

REGISTERED PLAN

Income Tax Act ( Canada )

Entitlement

Calculation of registered allowance

Pre-retirement death

Registered survivor benefit

Disability

Termination

Deferred registered allowance

PART

SUPPLEMENTARY PLAN

Supplementary plan account

Registered plan reduction

Entitlement

Calculation of supplementary allowance

pre-retirement

death

Supplementary survivor benefit

Disability

Termination

Deferred supplementary allowance

PART

GENERAL

Assignment of allowance

Designated beneficiary

Payment to children

Marriage breakdown

Purchase of service

Purchase of prior service

Reciprocal transfers

Payment of contributions

Directive of minister

Existing plan protected

Consequential amendments

Retirement

RSNL1990 cM-6 Rep.

Commencement

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 Members of the

House of Assembly Retiring Allowances Act .

PART I

INTERPRETATION

Interpretation

(1) In this Act

(a) "average YMPE" means the average of

the member's maximum pensionable earnings as defined

under the Canada Pension Plan

(Canada) for the calendar year in which the member retires and the two calendar

years immediately preceding that year;

(b) "base MHA salary" means the average

of the member's annual MHA salary in the 3 calendar years of MHA service in

which his or her salary was highest, in respect of which contributions have

been made under this Act;

(c) "base ministers' salary" means the

average of the member's annual ministers' salary in the 3 calendar years of

ministers' service in which his or her salary was highest, in respect of which

contributions have been made under this Act;

(d) " commuted

value" means commuted value as defined in the Pension Benefits Act, 1997 ;

(e) " member "

means a person who has contributions in the Plans;

(f) "MHA" means a person who is a member

of the House of Assembly;

(g) "MHA salary" means the salary

authorized by the Legislature to be paid to an MHA and an amount that the

Minister of Finance may prescribe in a directive under this Act;

(h) "MHA service" means a period of

service accrued as an MHA;

( i ) " minister " means a member of the executive council and

for the purposes of this Act includes

(

i) the

Speaker of the House of Assembly, and

(ii) the Leader of the

Opposition in the House of Assembly;

(j) " ministers '

salary" means the salary authorized by the Legislature to be paid to a

minister;

(k) " ministers '

service" means a period of service accrued as a minister;

(k.1) "month" means a calendar month and for

the purpose of the application of this Act to a member elected for the first

time after the 45th General Assembly includes a portion of a month;

(l) " other

service" means a period of service credited to a member under sections 30,

31 and 32;

(m) " partner "

(

i) in relation to a

member who has a spouse, means a person who is not the spouse of the member who

has cohabited continuously with the member in a conjugal relationship for not

less than 3 years, and

(ii) in relation to a

member who does not have a spouse, means a person who has cohabited

continuously with the member in a conjugal relationship for not less than one

year,

and is cohabiting or has cohabited with the member within the preceding

year;

(n) " pensionable

service" means any period of service credited to a member that may be used

in calculating an allowance under this Act, and includes service credited under

sections 30, 31 and 32;

(o) " pensioner "

means a member who is retired and receiving an allowance under this Act;

(p) "Plans" means the Registered Plan

and the Supplementary Plan established in Parts III and IV;

(q) " principal

beneficiary" means the spouse of a member, or where the member has a

partner, the member's partner;

(r) " registered

allowance" means an allowance paid under

Part III;

(s) " spouse "

means a person who

(

i) is

married to the member,

(ii) is married to the

member by a marriage that is voidable and has not

been voided by a judgment of nullity, or

(iii) has gone through a

form of marriage with the member, in good faith, that is void and is cohabiting

or has cohabited with the member within the preceding year;

(t) " supplementary

allowance" means an allowance paid under

Part IV;

(u) " vested

member" means a member

(

i) who

has served as a member of the House of Assembly for at least 2 general

assemblies, and

(ii) has served as a

member of the House of Assembly for not less than 5 years; and

(v) " year "

means a calendar year but, for the purpose of the application of this Act to a

member elected for the first time after the 45th General Assembly,

"year" means a period of 12 consecutive months.

(2) For the purposes of this Act

(

a) a dissolution of the

House of Assembly does not, by itself, terminate a person's status as an MHA;

and

(

b) a person who immediately before the

dissolution of the House of Assembly was an MHA, shall, if he or she is not

elected as an MHA at the general election following the dissolution, no longer

be an MHA effective on the day of that general election.

(3) For the purpose of the application of this Act

to a member elected for the first time after the 45th General Assembly,

paragraphs (1)(a), (

b) and (

c) shall be read as if the words "calendar

year" and "calendar years" were "year" and

"years" respectively.

Calculation

(1) In a calculation of years of service

involving a fraction of a year, except under

section 7, the fraction, if equal

to or greater than 183 days, shall be counted as a full year and if fewer than

183 days shall not be counted.

(2) Notwithstanding paragraphs 2(1 )(

b) and (c), where a member has fewer than 3 calendar years

of MHA service or ministers' service, the base MHA salary or base ministers'

salary shall be the average of the annual rates of MHA salary or ministers'

salary pro-rated in the manner prescribed by the Minister of Finance in a

directive.

(3) Subsection (1) does not apply to a member

elected for the first time after the 45th General Assembly and in the

application of subsection (2) to such a member the words "calendar

years" shall be read as "years".

PART II

APPLICATION

Application

4. This

Act applies to every MHA and minister.

Election

(1) Before

receiving his or her first payment of MHA salary or ministers' salary, an MHA

or minister may elect not to participate in the Plans during his or her first general

assembly if he or she establishes to the satisfaction of the Minister of

Finance that he or she is contributing and will continue to contribute to

another registered pension plan or registered retirement savings plan.

(2) Where an MHA or minister elects under

subsection (1) not to participate in the Plans, the Minister of Finance shall

deduct from that person's MHA salary and ministers' salary and make those contributions, that are required by the person's registered

pension plan or registered retirement savings plan, to the maximum allowed

under the Income Tax Act ( Canada ).

(3) An MHA and a minister shall participate in the

Plans in his or her second and subsequent general assemblies.

Re-election

(1) An

MHA or a minister may not revoke an election under subsection 5(1) during his

or her first general assembly, but may during a second or subsequent general

assembly as an MHA or minister elect to participate in the Plans in respect of

his or her first general assembly.

(2) An MHA or a minister who makes an election

under subsection (1) shall

(

a) repay contributions

made under subsection 5(2) by the Minister of Finance; and

(

b) pay the difference

between the amount in paragraph (

a) and the contributions that would have been

required under this Act had the MHA or minister participated.

Contributions

(1) An

MHA and a minister who elects to participate in the Plans shall contribute to

the fund established under the Pensions

Funding Act at a rate of 9% of his or her MHA salary and ministers' salary.

(2) Contributions that exceed the maximum allowed

under the Income Tax Act ( Canada )

shall be paid to the Supplementary Plan Account referred to in

Part IV.

(3) A member who first served as an MHA or

minister before or during the 43rd General Assembly shall not make

contributions

(

a) in respect of his or

her MHA salary, after 17 years of MHA service; and

(

b) in respect of his or

her ministers' salary, after 17 years of ministers' service.

(4) A member who first served as an MHA or

minister after the 43rd General Assembly shall not make contributions

(

a) in respect of his or

her MHA salary, after 20 years of MHA service; and

(

b) in respect of his or

her ministers' salary, after 20 years of ministers' service.

(5) The government of the province shall pay out

of the Consolidated Revenue Fund and pay into the fund established under the Pensions Funding Act amounts set by the

Minister of Finance in a directive that, in addition to members' contributions

under subsection (1), are

(

a) based on the recommendations

of the Plans' actuary, required to meet the cost of benefits accruing under

Part III; and

(

b) permitted under the Income Tax Act ( Canada ).

Return of contributions

8. A

member who is no longer an MHA or a minister and has been elected to only one

general assembly or has served as an MHA or minister for a period of fewer than

5 years, may elect to receive a refund of his or her contributions together

with interest calculated in accordance with the rates prescribed under the Pension Benefits Act, 1997 .

PART III

REGISTERED PLAN

Income Tax Act ( Canada )

(1) This Part shall be administered in accordance with the Income Tax Act (Canada), and the Income Tax Act (Canada) shall take precedence over this

Part in the

event of a conflict.

(2) Contributions under this Part shall not exceed

the amount of the annual deductible contributions to a registered plan

permitted under the Income Tax Act ( Canada ).

(3) Contributions and other payments under this

Part shall be deposited in the fund established under the Pensions Funding Act and all allowances and other monies payable

under this Part shall be paid out of that fund.

Entitlement

(1) A vested member who is no longer an MHA or a minister may, on application,

receive a registered allowance if the member

(

a) has paid the

contributions for service required under this Act; and

(

b) has

(

i) at

least 30 years of pensionable service, or

(ii) reached 60 years of

age.

(2) A registered allowance shall be paid

periodically in equal amounts and shall stop at the end of the month in which

the death of the member occurs.

(3) A member's entitlement to receive a registered

allowance shall be suspended while he or she is an MHA or minister.

Calculation of

registered allowance

(1) The annual amount of the registered allowance paid to a

member shall be calculated by adding the following amounts:

(

a) for each year of MHA

service, 2% of his or her base MHA salary;

(

b) for each year of

ministers' service, 2% of his or her base ministers' salary; and

(

c) for each year of

other service, 2% of the sum of his or her base MHA salary and his or her base

ministers' salary.

(1.1) Notwithstanding paragraph (1)(c), for the

purpose of calculating the amount of the registered allowance paid to a member

elected for the first time after the 45th General Assembly, his or her base minister's

salary shall not be included.

(2) Notwithstanding subsection (1), for the years

between January

1, 1998 and December 31, 2004 , the annual amount of the registered allowance payable to a member

shall be calculated under subsection (1) and reduced by the result of the

following calculation:

the member's average YMPE

.006

the

member's months

of MHA service

(3) A reduction under subsection (2) shall occur

on the first day of the month in which the member reaches the age of 65 years.

(4) A registered allowance shall not exceed the

maximum allowable benefit as determined under the Income Tax Act ( Canada ).

Pre-retirement

death

(1) If a member dies before receiving a registered

allowance, and a survivor benefit is payable under

section 13, 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 member's entitlement under this Part,

whichever is greater.

(2) If a member dies before receiving a registered

allowance and there is no survivor benefit payable under

section 13, the

commuted value of the entitlement of the member under this Part, calculated as

of his or her date of death, shall be paid to the estate of the member.

Registered

survivor benefit

(1) A

principal beneficiary of

(

a) a pensioner; or

(

b) a vested member who

has paid the contributions for service required under this Act,

is entitled on the death of the pensioner or member to a survivor

benefit equal to 60% of the pensioner's or member's entitlement.

(2) A member's entitlement is the registered

allowance he or she would have received had he or she been 65 years of age on

the date of his or her death.

(3) A 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 or member dies.

(4) Where a pensioner or vested member 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 25 years while

they are in full-time attendance at a recognized school or post-secondary

institution.

(5) Where for any reason a survivor benefit ceases

to be payable and no one remains to whom a benefit is payable, the amount by

which the member's contributions, together with interest to the date the

benefit commenced at a rate prescribed by the Minister of Finance, exceed all

benefits received from the registered plan, shall be paid to the person whose

benefit ceased or to that person's estate.

Disability

14. Where

a member becomes totally and permanently disabled within the meaning of the Income Tax Act (Canada) while serving as

an MHA or minister, the member shall be retired and there shall be paid to the

member the registered allowance he or she would have been eligible to receive

at 65 years of age.

Termination

(1) A vested member who is no longer an MHA or a minister and who

(

a) has paid the

contributions for service required under this Act; and

(

b) is ineligible to

immediately receive a registered allowance,

may elect within 180 days after termination

(

c) a transfer of the

commuted value of the entitlement of the member under this Part, in accordance

with paragraph 40(1)(

a) of the Pension

Benefits Act, 1997 ; or

(

d) a deferred registered

allowance.

(2) In default of an election under subsection

(1) the member is considered to have elected to receive a deferred registered

allowance.

(3) A transfer under paragraph (1)(

c) that 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

appointed under the Pension Benefits Act,

1997 .

(4) A transfer under paragraph (1 )(

c) shall not be less than the contributions made by that

member with interest at the rate prescribed under the Pension Benefits Act, 1997 .

(5) Where a transfer under paragraph (1 )(

c) would be greater than the maximum amount permitted

under the Income Tax Act ( Canada ),

the excess shall be paid to the member.

(6) Where the annual registered allowance payable

to a member is less than 4% of the YMPE for the calendar year in which a member

stopped being an MHA or minister, the member is entitled to receive a lump sum

payment instead of the deferred registered allowance under

section 16.

(7) Where the commuted value of a deferred

registered allowance is less than 10% of the YMPE for the calendar year in

which a member stopped being an MHA or a minister, the member is entitled to

receive a lump sum payment instead of the deferred registered allowance under

section 16.

Deferred

registered allowance

(1) A

member who is no longer an MHA or a minister and elects or is considered to

have elected under

section 15 to receive a deferred registered allowance may,

on becoming eligible to receive a registered allowance under

section 10, apply

to receive an allowance calculated in accordance with

section 11.

(2) Where there is an increase in the amount of a

registered allowance, that increase shall apply to the deferred registered

allowance of a person as if he or she was a pensioner on the 1st of the month

following termination.

PART IV

SUPPLEMENTARY PLAN

Supplementary

plan account

17. The

Members' Supplementary Plan Account is established in the Consolidated Revenue

Fund.

Registered plan

reduction

(1) A

member's supplementary allowance shall be reduced by the amount of the member's

registered allowance paid under

Part III.

(2) A disability allowance paid under this Part

shall be reduced by the amount of any disability allowance paid under

Part III.

(3) A survivor benefit paid under this Part shall

be reduced by the amount of any survivor benefit paid under

Part III.

(4) Any benefit paid to a designated beneficiary

under this Part shall be reduced by any benefit paid to that beneficiary under

Part III.

(5) Any return of contributions, commuted value or

other lump sum payment in respect of an entitlement under this Part shall be reduced

by the amount of a similar payment made under

Part III.

(6) The total benefits and allowances paid

annually under this Act in respect of a member, calculated before a reduction

under subsection 20(4), shall not exceed 75% of the sum of the member's base

MHA salary and base ministers' salary.

Entitlement

(1) A vested member who is no longer an MHA or a minister may, on application,

receive a supplementary allowance if

(

a) the member has paid

the contributions for service required under this Act; and

(

b) the member's

(

i) years of MHA

service added to his or her age in years equals or exceeds 60, or

(ii) years of MHA service

added to his or her age in years equals 55 where the member has served as

Premier.

(1.1) Notwithstanding subsection (1), a vested

member elected for the first time after the 45th General Assembly who is no

longer an MHA or a minister may, on application, receive a supplementary allowance

(

a) the member has paid

the contributions for service required under this Act; and

(

b) the member's

(

i) MHA service added

to his or her age equals or exceeds 60, or

(ii) MHA service added to his or her age equals 55

where the member has served as Premier.

(2) A supplementary allowance shall be paid

periodically in equal amounts and shall stop at the end of the month in which

the death of the member occurs.

(3) A person's entitlement to receive a

supplementary allowance shall be suspended while the person is an MHA or

minister.

Calculation of

supplementary allowance

(1) The annual amount of the supplementary allowance paid to a

member who first served as an MHA or minister before or during the 43rd General

Assembly shall be calculated by adding the following amounts:

(

a) for each of the first

10 years of MHA service, 5% of his or her base MHA salary;

(

b) for each of the next

5 years of MHA service, 4% of his or her base MHA salary;

(

c) for each of the next

2 years of MHA service, 2.5% of his or her base MHA salary;

(

d) for each of the

first 10 years of ministers' service, 5% of his or her base ministers' salary;

(

e) for each of the next

5 years of ministers' service, 4% of his or her base ministers' salary;

(

f) for each of the next

2 years of ministers' service, 2.5% of his or her base ministers' salary; and

(

g) for each year of

other service, 2% of the sum of his or her base MHA salary and base ministers'

salary.

(2) The annual amount of the supplementary

allowance paid to a member who first served as an MHA or minister after the

43rd General Assembly shall be calculated by adding the following amounts:

(

a) for each of the first

10 years of MHA service, 5% of his or her base MHA salary;

(

b) for each of the next

10 years of MHA service, 2.5% of his or her base MHA salary;

(

c) for each of the first

10 years of ministers' service, 5% of his or her base ministers' salary;

(

d) for each of the next

10 years of ministers' service, 2.5% of his or her base ministers' salary; and

(

e) for each year of

other service, 2% of the sum of his or her base MHA salary and base ministers'

salary.

(2.1) Notwithstanding paragraph (2)(e), for the

purpose of calculating the amount of the supplementary allowance paid to a member

elected for the first time after the 45th General Assembly, his or her base minister's

salary shall not be included.

(3) For the purposes of this

section a member's

years of service as a Member of Parliament or a minister in the House of

Commons credited under

section 32 shall be considered to be years of MHA service.

(4) The annual amount shall be reduced by the

result of the following calculation:

the member's average YMPE

.006

the

member's months of MHA service and other

service after March 31, 1967

(5) Notwithstanding subsection (4), the reduction

under that subsection shall not apply to MHA service for the years between January 1, 1998 and December 31, 2004 .

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

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

age of 65 years.

pre-retirement death

(1) If a member dies before receiving a supplementary allowance

and a survivor benefit is payable under

section 22, a 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 member's entitlement,

whichever is greater.

(2) If a member dies before receiving a

supplementary allowance and there is no survivor benefit payable under

section

22, the commuted value of the entitlement of the member, calculated as of his

or her date of death, shall be paid to the estate of the member.

Supplementary

survivor benefit

(1) A

principal beneficiary of

(

a) a pensioner; or

(

b) a vested member who

has paid the contributions for service required under this Act,

is entitled on the death of the pensioner or member to a survivor

benefit equal to the greater of

(c) 60% of the pensioner's or member's

entitlement; or

(d) 25% of the sum of the member's annual MHA

salary and ministers' salary in the 12 months preceding the date of death.

(2) Where the pensioner or member referred to in

subsection (1) is also survived by one or more children, each child is entitled

to a benefit equal to 1/6 of the survivor benefit calculated under subsection

(1), or, where the total amount payable under this

section would exceed the

maximum payable under this Act, the amount by which the maximum exceeds the

principal beneficiary's benefit shall be divided equally among all the eligible

children.

(3) A member's entitlement is the supplementary

allowance he or she would have received had he or she been eligible to receive

an allowance under

section 19 at the date of his or her death, with no reduction

under subsection 20(4) until the first of the month following the month in

which the member would have reached the age of 65 years.

(4) A 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 or member dies.

(5) Where a pensioner or member referred to in

subsection (1) dies leaving no surviving principal beneficiary, 1/3 of the

survivor benefit shall be paid to or for the benefit of each of his or her

surviving children, or where the total amount payable under this

section would

exceed the maximum benefit payable under this Act, the survivor benefit shall

be divided equally among all of the eligible children.

(6) An allowance paid to a child under this

section shall be paid to or for the benefit of that child while he or she is

under the age of 18 years, or under 25 years while he

or she is in full-time attendance at a recognized school or post-secondary

institution.

(7) Where for any reason a survivor benefit ceases

to be payable and no one remains to whom a benefit is payable, the amount by

which the member's contributions, together with interest at a rate prescribed

by the Minister of Finance, exceed all benefits derived from those contributions

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

Disability

(1) Where

a member who is an MHA or a minister is unable to perform his or her duties

because of a physical or mental incapacity that is medically certified by 2

medical doctors, employed or retained by the Department of Health &

Community Services, as likely to be permanent, the member shall be retired and

there shall be paid to the member an allowance in an amount equal to the

greater of

(

a) the supplementary

allowance calculated in accordance with sections 19 and 20; and

(b) 40% of the sum of his or her annual MHA salary

and ministers' salary in the calendar year preceding the date set in subsection

(2).

(2) An allowance payable under subsection

(1) becomes payable on a date set by the Minister of Finance.

Termination

(1) A vested member who is no longer an MHA or a minister and who

(

a) has paid the

contributions for service required under this Act; and

(

b) is ineligible to

immediately receive a supplementary allowance,

may elect within 180 days after termination

(

c) to receive in a lump

sum the commuted value of the member's entitlement under this Part, or

(

d) a deferred

supplementary allowance.

(2) In default of an election under subsection

(1) the member is considered to have elected to receive a deferred supplementary

allowance.

Deferred supplementary

allowance

(1) A

member who is no longer an MHA or a minister and elects or is considered to

have elected under

section 24 to receive a deferred supplementary allowance

may, on becoming eligible to receive a supplementary allowance under

section

19, apply for and receive an allowance calculated in accordance with

section

(2) Where there is an increase in the amount of a

supplementary allowance, that increase shall apply to the deferred

supplementary allowance as if the recipient was a pensioner on the 1st of the

month following termination.

PART V

GENERAL

Assignment of

allowance

26. An

allowance paid under this Act shall not be assigned, anticipated, surrendered,

charged or given as security except in accordance with the Pension Benefits Act, 1997 .

Designated beneficiary

(1) A

member who does not have a principal beneficiary or a child who would be

entitled to a survivor benefit under

section 13 or 22 may designate a

beneficiary of his or her survivor benefit.

(2) A designation under subsection (1) shall be

made, in writing, to the Minister of Finance, signed by the member and

witnessed.

(3) The beneficiary designated under subsection

(1) shall be a child who does not qualify under

section 13 or 22, a parent,

grandparent, brother, sister or grandchild of the member who is at the time of

the death primarily dependent on the member for financial support.

(4) The survivor benefit under sections 13 and 22

shall be paid to the beneficiary while he or she is

(

a) under 18 years of

age;

(

b) under 25 years of

age, if the beneficiary is in full-time attendance at a recognized school or

post-secondary institution; or

(

c) financially dependent

by reason of mental or physical incapacity.

(5) If a member marries or has a child subsequent

to making a designation, the designation is void.

(6) A designation may be revoked by a member and a

new designation made in accordance with this section.

Payment to children

(1) An

allowance or benefit payable under this Act, to a person under the age of 18

years or to a person who is financially dependent due to mental or physical

incapacity, shall be paid to the guardian of the property of that person.

(2) Notwithstanding sections 13 and 22, where a

person who is entitled to a benefit under one of those sections was primarily

financially dependent on the member by reason of mental or physical incapacity,

the benefit shall continue to be paid until that person is capable of providing

for his or her own financial support.

(3) For the purposes of this

section and

section

27, the Minister of Finance shall make the determination as to the financial

dependence of a person due to that person's physical or mental incapacity.

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) a member 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.

Purchase of

service

(1) Where a

member was formerly covered under a pension plan established under

(

a) the Memorial University Pensions Act ;

(

b) the Public Service Pensions Act, 1991 ;

(

c) the Teachers' Pensions Act ;

(

d) the Uniformed Services Pensions Act, 1991 ;

(

e) an Act replaced by an

Act referred to in paragraphs (

a) to (d),

and has no remaining entitlement to

benefits under that pension plan, the member may, upon his or her election and

on payment of an amount that may be prescribed by the Minister of Finance by

directive, be credited with pensionable service for

all or a portion of the period of service formerly covered by that pension

plan.

(2) Where a member was a member of a plan listed

in subsection (1) and contributions were payable under that plan but were not

paid due to administrative error, the member, upon payment of contributions

that the Minister of Finance may prescribe by directive, may be credited with pensionable service under this Act for all or a portion of

the period of service that is pensionable service

under that plan.

(3) Service purchased under subsection (2) may

also include a period under a plan listed in subsection (1) that was not a

period of membership provided that the period was a waiting period for membership

in that plan.

(4) Notwithstanding subsections (1), (2) and (3),

under this

section periods of pensionable service may

be credited only if that service qualifies as a period of pensionable

service under the Income Tax Act ( Canada ).

Purchase of prior

service

(1) Where

a former member received a payment or transfer on termination and later becomes

a member, that member may be credited with the prior pensionable

service that he or she may elect to purchase in accordance with the terms and

conditions that may be prescribed by the Minister of Finance by directive.

(2) Where a former member who ceased to be a

member and had not received a payment or transfer on termination and later becomes

a member, that member shall be credited with all pensionable

service that accrued immediately before the member's termination.

(3) Notwithstanding subsection (1), a member may

only be credited under that subsection with service purchased with money

transferred from a registered retirement savings plan, deferred profit sharing

plan or a registered pension plan.

Reciprocal

transfers

(1) The

Minister of Finance may, with the approval of the Lieutenant-Governor in

Council, enter into a reciprocal agreement with a government or other entity to

permit pensionable service in other pension plans to

be credited under this Act, where the government or other entity agrees to

credit pensionable service under this Act in the

pension plan maintained by that government or entity.

(2) A member, who was employed with a government

or entity that has entered into a reciprocal agreement under subsection (1),

may be credited with pensionable service under this

Act in respect of the whole or part of his or her pensionable

service credited to him or her under the pension plan maintained by that

government or entity.

Payment of contributions

33. All

contributions that are required to be paid under sections 30 and 31 may be paid

in equal instalments over the shorter of

(

a) the period of pensionable service being purchased; or

(

b) the period from

the date the member elects to purchase service to a date immediately preceding

the date on which the member retires,

together with the interest prescribed by the Minister of Finance by directive.

Directive of minister

34. The

Minister of Finance may issue directives to give effect to the purpose of this

Act.

Existing plan protected

35. All

benefits acquired under the Members of

the House of Assembly Pensions Act before the commencement of this Act are

protected under this Act.

Consequential

amendments

(1) The House of Assembly Act is amended by adding the following

immediately after

section 54:

Retirement

54.1 When

a member is retired under

section 14 or 23 of the Members of the House of Assembly Retiring Allowances Act , his or

her seat in the House of Assembly becomes vacant on the date that the allowance

under one of the sections becomes payable.

(2) Paragraph 3(

c) of the Pensions Funding Act is repealed and the following substituted:

(

c) the Members of the House of Assembly Retiring

Allowances Act and

an Act or Acts replaced by that Act; and

RSNL1990 cM-6 Rep.

37. The Members

of the House of Assembly Pensions Act is repealed.

Commencement

38. Sections 9, 10 and 11 shall be considered to

have come into force on January 1, 1992 .

Earl G. Tucker, Queen's Printer