Bill 32 (Legislature 24, Session 1)

L24 S1 1071

Alberta — Bills

1997 BILL 32 First Session, 24th Legislature, 46 Elizabeth II THE LEGISLA TIVE A SSEMBLY OF A LBERTA BILL 32 PUBLIC SECTOR PENSION PLANS AMENDMENT ACT, 1997 THE PROVINCIA L TREA SURER First Reading Second Reading Committee of the Whole Third Reading Royal A ssent

Bill 32 BILL 32 1997 PUBLIC SECTOR PENSION PLANS AMENDMENT ACT, 1997 (Assented to , 1997) HER MA JESTY, by and with the advice and consent of the Legislative A ssembly of A lberta, enacts as follows: Amends SA 1993 cP-30.7 1 The P ublic S ector P ension P lans A ct is am ended by this Act. 2 The following is added after

section 7: Validation of plan rule changes and transactions 7.1(1)

Section 3 of each of A lberta Regulations numbered A R 182/96, A R 183/96 and A R 184/96 is validated notwithstanding that, by virtue of

section 4 of the Regulation in question, that

section 3 purported to come into force before the Regulation was filed under the Regulations Act.

(2) A lberta Regulation numbered A R 109/97 is validated notwithstanding that it purported to come into force before it was filed under the Regulations Act.

(3) The transfers of surplus assets from the Special Forces Pension Plan’s plan fund to its indexing fund that occurred on July 1, 1995, July 26, 1995 and A ugust 9, 1995, on that Plan’s Board’s authorization, in an aggregate amount of $13 902 939.41 and $23 201.80 of interest, are hereby validated, notwithstanding the lack of authorization by any regulation under

section 4(1)(

k) of

Schedule 4 to conduct the transactions at the time they were done. 3 The following is added after

section 9.1: 1

Explanatory Notes 1 A mends

chapter P-30.7 of the Statutes of A lberta, 1993. 2 Validation of certain regulations and transactions. 3 Collection and provision of information. 1 Explanatory Notes

Collection and disclosure of information 9.2(1) In this section, (a) “employment” includes former employment; (b) “employment information” means, with respect to a particular Plan, personal information within the meaning of the Freedom of Information and Protection of Privacy Act that (

i) relates to pensions and other benefits and to participants’ and former participants’ employment, and (ii) has a reasonable and direct connection to the administration of pensions and other benefits but, as regards the collection by or the disclosure to an employer of any such information, is restricted to information about participants and former participants who are or were employed by that particular employer and related benefits; (c) “prescribed” means provided for by regulations made under subsection (7).

(2) The Minister is authorized to collect employment information from, and to disclose it to, (

a) the specific participant or former participant to whom the information relates, (

b) employers, (

c) the relevant Board, and (

d) any other prescribed body or person.

(3) The relevant Board is authorized to collect employment information from, and to disclose it to, (

a) the specific participant or former participant to whom the information relates, (

b) employers, (

c) the Minister, and (

d) any other prescribed body or person. (4 ) Employers are authorized to collect employment information from, and to disclose it to, 2

2 Explanatory Notes

(

a) the specific participant or former participant to whom the information relates, (

b) the Minister, (

c) the relevant Board, and (

d) any other prescribed body or person.

(5) Where this

section gives authority to a body or person to collect employment information from, or to disclose employment information to, a prescribed body or person, that prescribed body or person is authorized to disclose that employment information to, or to collect that employment information from, that first-mentioned body. (6 ) Information may be collected under this

section from a body or person other than the participant or former participant to whom it relates in any manner that is agreed on between the bodies or persons collecting and providing the information.

(7) The Lieutenant Governor in Council may make regulations determining the bodies or persons for the purposes of subsections (2)(d), (3)(

d) and (4)(d). 4 Each of Schedules 1 to 5 is am ended by adding the following after

section 4 (6 ): (6 .1) To the extent, if any, that is prescribed, a provision of the plan rules may be made to apply with effect from a date that is prior to that on which they are filed under the Regulations Act. 5(1)

Schedule 1 is am ended by this section.

(2) Section 14 is am ended by adding the following after subsection (5):

(5.1) A ny liability under an indemnity given under subsection (5) by the other pension fund’s legal owners is only required to be met from that pension fund itself.

(3) The following is added after

section 14 : Withdrawal of specified employers 14 .1(1) Notwithstanding anything in

section 14 to the contrary, the Lieutenant Governor in Council may make regulations, which need not comply with

section 14, providing in effect for the withdrawal of employers referred 3

4 A bility of plan rules to apply prior to filing date. 5 A mendments to Local A uthorities Pension Plan provisions respecting withdrawals of employers from, and termination of, the Plan. 3 Explanatory Notes

to in subsection (2) from the Plan to another registered pension plan to which the Employment Pension Plans Act or, if applicable, the Pension Benefits Standards Act, 1985 (Canada) applies.

(2) A n employer referred to in subsection (1) is one that the Minister, after consulting with the Board, determines will become ineligible to continue to participate in the Plan as an employer.

(3) The regulations made under subsection (1) must provide for (

a) the employers’ withdrawal from participation in, and their ceasing to be employers for the purposes of, the Plan, (

b) the transfer to the other plan of a portion of the Plan’s liabilities and assets, and (

c) the basis for the withdrawal, the method by which it is to be made and the terms and conditions for it. (4 )

Section 14(5) to (8) apply with respect to the withdrawal.

(5) Notwithstanding subsection (4), the regulations may provide that a corporation or other business entity that is related to an employer referred to in subsection (2) and that is approved for the purposes of this subsection by the Minister may give the indemnity referred to in

section 14(5), instead of that employer. (4 )

Section 15 is am ended by adding the following after subsection (6 ): (6 .1) A ny liability under an indemnity given under subsection (6) by the other pension fund’s legal owners is only required to be met from that pension fund itself. 6

(1) Schedule 4 is am ended by this section.

(2) Section 3(2) is am ended by striking out “and” at the end of clause (d), by adding “, and” at the end of clause (

f) and by adding the following after clause (f): (

g) to recommend transfers from the indexing fund to the plan fund under

section 6.2. 4

6 A mendments to the Special Forces Pension Plan provisions respecting post-1991 COLA benefits and repealing

section 9(11)(

b) of

Schedule 4.

Schedule 4 presently reads in part: 3(2) The objects of the Board are (

a) to make plan provisions by regulation (

i) to ensure that current service under the Plan is funded in accordance with sections 5(2) and 4(3), and 4 Explanatory Notes

(3) Section 4 (1)(

j) is am ended by striking out “and funded from post-1991 COLA contributions”. (4 )

Section 4 (10) is repealed and the following is substituted:

(10) Notwithstanding anything in subsections (1)(

j) and (9), any particular post-1991 COLA benefit increase may be made only if (

a) the indexing fund, before the transfer under

section 6.2, contains assets at least equal in value to the amount certified by the Plan’s actuary to be the actuarial present value of the particular increase over the expected remaining lifetimes of all persons who stand to benefit by the increase, (

b) the increase is to be paid from the plan fund, (

c) the Plan meets the funding and solvency requirements, and (

d) the increase complies with the tax rules and this Schedule.

(5) Section 6 .1(2) is am ended (

a) by striking out “pay” and substituting “enable payment”; (

b) by adding “of’ after “Plan”. (6 ) The following is added after

section 6 .1: 6 .2 If the Board has set the amount of a particular increase pursuant to

section 4(9) and the conditions set out in

section 4(10) have been met for that increase, the Provincial Treasurer shall, on the recommendation of the Board, transfer from the indexing fund to the plan fund the certified amount referred to in

section 4(10)(a).

(7) Section 7 is am ended (

a) in subsection (1) (

i) in clause (

a) by striking out “other than” and substituting “including, subject to clause (b),”; (ii) in clause (

b) by striking out “providing post-1991 COLA benefits” and substituting “enabling the 5

(ii) setting post-1991 COLA contributions and benefits, (

b) to make any appropriate recommendations for the amending or repealing and replacing of plan rules under

section 4(2), (

c) to set general policy guidelines on (

i) the investment and management of (

A) the plan fund’s assets in accordance with

section 6(3), and (

B) the indexing fund’s assets in accordance with

section 6.1(3), and the regulations, and (ii) the administration of the Plan that it considers should be followed, (

d) to review administrative decisions pursuant to any delegations under

section 10, and (

f) to authorize the transfer of any surpluses referred to in

section 4(1)(k). 4(1) The Lieutenant Governor in Council shall by regulation establish those plan provisions that are to be included in the Plan from the time of its continuation by this

Schedule and that are not fully provided for in this Schedule, including plan provisions respecting (

j) increases in pensions of persons who have paid post-1991 COLA contributions, based on pensionable service occurring after 1991, to mitigate the effects of the increased cost of living and funded from post-1991 COLA contributions, except for setting the actual amounts of those increases, and 4(10) Notwithstanding anything in subsections (1)(

j) and (9), post-1991 COLA benefit increases may be made only if the indexing fund contains assets at least equal to the actuarial present value of all pension increases over the expected remaining lifetimes of all those persons who stand to benefit by the increases. 6.1(2) The purposes of the indexing fund are to receive post-1991 COLA contributions, and surpluses referred to in

section 4(1)(k), to accumulate income deriving from those contributions and surpluses and to pay to those entitled under the Plan post-1991 COLA benefits. 7(1) The Provincial Treasurer shall hold all the assets of (

a) the plan fund in trust for the sole purposes of providing benefits (other than post-1991 COLA benefits) pursuant to the Plan and meeting plan costs, subject, however, to 5 Explanatory Notes

payment from the plan fund of post-1991 COLA benefits following transfers under

section 6.2”; (

b) in subsection (2) by striking out “(other than post-1991 COLA benefits)”; (

c) in subsection (2.1) by adding subject to transfers made under

section 6.2” after “benefits”.

(8) Section 8 is am ended by repealing subsection (3) and substituting the following:

(3) The Provincial Treasurer shall pay all benefits and the plan costs from the plan fund.

(9) Section 9(11) is am ended by striking out “, and” at the end of clause (

a) and by repealing clause (b). 7

Section 6 is deem ed to have com e into force on Septem ber 1, 1996 . 6

any right to transfer surpluses pursuant to plan provisions referred to in

section 4( 1 )(k), and (

b) the indexing fund in trust for the sole purposes of providing post-1991 COLA benefits.

(2) Subject to plan provisions referred to in

section 4(1 )( k), the assets of the plan fund belong beneficially to the persons entitled to benefits (other than post-1991 COLA benefits) under the Plan.

(2.1) The assets of the indexing fund belong beneficially to the persons entitled to post-1991 COLA benefits. 8( 3) The Provincial Treasurer shall pay (

a) from the plan fund the benefits under the Plan, except the post-1991 COLA benefits, and the plan costs, and (

b) from the indexing fund the post-1991 COLA benefits in accordance with regulations under

section 4. 9( 11) Subject to this section, the payment of all benefits under the Plan (

a) arising from pensionable service and benefits referred to in subsection ( 1 ), and (

b) arising from pensionable service between January 1, 1992 and December 31, 1993, but excluding post-1991 COLA benefits, is guaranteed by the Crown. 7 Coming into force. 6 Explanatory Notes Title: 1997 (24th, 1st) Bill 32, Public Sector Pension Plans Amendment Act, 1997

Document details

Collection	Alberta — Bills
Citation	L24 S1 1071
Type	bill
Volume / chapter	L24 S1 1071
Language	en
Format	json
Source	PROVINCIAL
Identifier	c90834a50e2296f2f20e254b65d249f815a1c556

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