Fourth

Session, 45th General Assembly

Elizabeth II, 2007

BILL 15

AN ACT TO AMEND THE

PENSION BENEFITS ACT, 1997

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

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

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

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

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

HONOURABLE

DIANNE WHALEN

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would repeal and replace

section 28 of the Pension Benefits Act,

1997 to permit members who work beyond age 65 to continue membership in a

pension plan and to continue to make contributions and accrue benefits. The proposed new

section would also allow pension

plans to provide various options to members working beyond age 65, including

the option to cease contributing to the plan at age 65 and to receive an

increased pension on retirement or to commence receiving a pension at age 65

while continuing to work.

A BILL

AN ACT TO AMEND THE PENSION

BENEFITS ACT, 1997

Analysis

S.28 R&S

Retirement date

2. Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL1996 cP-4.01

as amended

Section 28 of the Pension Benefits Act, 1997 is repealed and the following

substituted:

Retirement date

(1) A

pension plan shall provide for normal retirement calculated with reference to

the age when a member is normally eligible to start receiving a pension in

accordance with the plan without reduction or increase and normal retirement

age shall be not later than the date the member or former member attains age

(2) A pension plan shall provide that a member who

continues in employment after reaching normal retirement age and who is not

receiving a pension under the plan shall be entitled to continue to participate

in the plan on the same basis that applied before the member reached normal

retirement age.

(3) A pension plan may provide that where a member

continues in employment after reaching normal retirement age, one or more of

the following options may be available to the member:

(

a) the member may cease to contribute to the plan

and no additional benefits shall be accrued but on the member's pension

commencing, the pension shall be increased, taking into account the period of

time during which the pension was not paid, to at least the actuarial

equivalent of the pension accrued at normal retirement age;

(

b) the member may commence receipt of a pension

while continuing in employment and no further contributions to the plan are

payable and no additional benefits may be accrued; or

(

c) another arrangement, with the approval of the

superintendent.

(4) Notwithstanding subsection (2), a member or

former member's pension benefit shall commence before the end of the calendar

year in which the member or former member attains the age at which a pension

benefit is required to begin under the Income

Tax Act ( Canada ).

Commencement

2. This Act shall come into force on May 26, 2007 .

Earl G. Tucker, Queen's Printer