Second

Session, 46th General Assembly

Elizabeth II, 2009

BILL 53

AN ACT TO AMEND THE

MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT

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 amend the Members of the House of Assembly Retiring

Allowances Act further to recommendations of the Members' Compensation

Review Committee.

New eligibility criteria for the MHA

pension plan would be introduced for a member who is first elected to the House

of Assembly after December 31, 2009 . A new member would have to reach 55 years of

age before being eligible for an unreduced pension. A new member between the ages of 50 and 54

would be eligible for a pension reduced by 6% for each year that the member is

under the age of 55.

Secondly, the rate at which a new

member accrues pension would be varied.

The new accrual rate would be 3.5% of the member's salary per year, to a

maximum of 20 years of service.

A BILL

AN ACT TO AMEND THE MEMBERS OF THE HOUSE OF

ASSEMBLY RETIRING

ALLOWANCES ACT

Analysis

S.2 Amdt.

Interpretation

S.19 Amdt.

Entitlement

S.20 Amdt.

Calculation of supplementary allowance

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2005 cM-6.1

as amended

1. Paragraph 2(1 )(

g) of

the Members of the House of Assembly

Retiring Allowances Act is repealed and the following substituted:

(g) "MHA salary" means

(

i) for members elected for

the first time before January 1, 2010

(

A) the salary authorized

by the Legislature to be paid to an MHA up to June 30, 2007 ,

(

B) with respect to time served as a member after

June 30, 2007, 81.2% of the salary to be paid to an MHA under subsection 11(1)

of the House of Assembly Accountability,

Integrity and Administration Act as may be varied by that Act, and

(

C) an amount that the

Minister of Finance may prescribe in a directive under this Act, and

(ii) for members elected

for the first time after December 31, 2009

(

A) the salary authorized

to be paid to an MHA under subsection 11(1) of the House of Assembly Accountability, Integrity and Administration Act

as may be varied by that Act, and

(

B) an amount that the

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

Section 19 of the Act is amended by adding

immediately after subsection (2) the following:

(2.1) Notwithstanding subsections (1) and (2), a

vested member elected after December 31, 2009 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 has

reached the age of 55 years.

(2.2) Notwithstanding subsection (2.1), a vested

member elected after December 31, 2009 who is no

longer an MHA or a minister may, on application, receive a reduced

supplementary allowance calculated in accordance with subsection 20(2.2) if

(

a) the member has paid

the contributions for service required under the Act; and

(

b) the member has

reached the age of 50 years.

Section 20 of the Act is amended by adding

immediately after subsection (2) the following:

(2.1) Notwithstanding subsection (2), the annual

amount of the supplementary allowance paid to a member who first served as an

MHA or minister after December 31, 2009 shall be calculated by adding the following

amounts:

(

a) for each year of MHA

service, 3.5% of his or her base MHA salary;

(

b) for each year of

minister's service, 3.5% of his or her base minister's salary; and

(

c) for each year of

other service, 2% of his or her base MHA salary.

(2.2) For the purpose of subsection 19(2.2), the

retiring allowance awarded under subsection (2.1) shall be reduced by 6% for

each year that the member's age is less than the age of 55 years.

Commencement

Section 1 of this Act is considered to have come

into force on July

1, 2007 .

Earl G. Tucker, Queen's Printer