Second

Session, 48th General Assembly

Elizabeth II, 2017

BILL 21

ACT TO AMEND THE MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT AND

THE PORTABILITY OF PENSIONS ACT

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

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

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

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

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

HONOURABLE

TOM OSBORNE

Minister

of Finance

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 and the Portability of

Pensions Act .

The Members of the House of Assembly Retiring Allowances Act would be

amended to clarify existing provisions of the Act that relate to entitlement

and calculation of registered and supplementary allowances to be consistent

with the terms of the pension plan. The Act would also be amended to provide

that a member of the House of Assembly who is elected for the first time to the

House of Assembly on or after November 30, 2015

must reach the age of 60 years

before he or she is eligible for a pension;

is not eligible for a reduced

pension;

accrues a pension at an accrual

rate of 2.5% of the MHAs or ministers salary per year; and

is not permitted to be credited

with pensionable service under the Members of the House of Assembly pension plan

for service accrued under another public sector pension plan or a pension plan of

another government or entity.

The Portability of Pensions Act would be amended to exclude a member of

the House of Assembly or a minister elected for the first time on or after

November 30, 2015 from the application of the Act.

A BILL

AN ACT TO AMEND THE MEMBERS OF THE HOUSE OF

ASSEMBLY RETIRING ALLOWANCES ACT AND THE PORTABILITY OF PENSIONS ACT

Analysis

MEMBERS

OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT

S.11 R&S

Calculation of registered allowance

S.19 Amdt.

Entitlement

3. S.20 Amdt.

Calculation of supplementary allowance

S.30 Amdt.

Purchase of service

S.32 Amdt.

Reciprocal transfers

PORTABILITY

OF PENSIONS ACT

S.2.1 Added

Application

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING

ALLOWANCES ACT

SNL2005 cM-6.1

as amended

Section 11 of the Members of the House of Assembly Retiring Allowances Act is

repealed and the following substituted:

Calculation of

registered allowance

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

first time before or during the 43rd General Assembly shall be calculated by

adding the following amounts:

(

a) for each year of MHA service for a maximum

period of 17 years, 2% of his or her base MHA salary;

(

b) for each year of ministers service for a

maximum period of 17 years, 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.

(2) The annual amount of the registered allowance

paid to a member elected for the first time after the 43rd General Assembly and

before November 30, 2015 shall be calculated by adding the following amounts:

(

a) for each year of MHA service for a maximum

period of 20 years, 2% of his or her base MHA salary;

(

b) for each year of ministers service for a

maximum period of 20 years, 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.

(3) The annual amount of the registered allowance

paid to a member elected for the first time on or after November 30, 2015 shall

be calculated by adding the following amounts:

(

a) for each year of MHA service for a maximum

period of 20 years, 2% of his or her base MHA salary;

(

b) for each year of ministers service for a maximum

period of 20 years, 2% of his or her base ministers salary; and

(

c) for each year of service purchased by a member

under

section 31, 2% of his or her base MHA salary.

(4) Notwithstanding paragraph (2)(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 ministers

salary shall not be included.

(5) Notwithstanding subsections (1) and (2), 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) or (2), as applicable, and reduced by the result of the

following calculation:

the member's average

YMPE .006

the member's months

of MHA service

(6) A

reduction under subsection (5) shall occur on the first day of the month in

which the member reaches the age of 65 years.

(7) A registered allowance shall not exceed the

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

2. (1) Subsections 19(2.1) and (2.2) of the Act are repealed and the following substituted:

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

vested member elected for the first time after December 31, 2009 and before November

30, 2015 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 for the first time after December 31, 2009 and before November

30, 2015 who is no longer an MHA or a minister may, on application, receive a

reduced supplementary allowance calculated in accordance with subsection 20(2.3)

(

a) the member has paid the contributions for

service required under this Act; and

(

b) the member has reached the age of 50 years.

(2) Section 19 of the Act is amended by adding

immediately after subsection (2.2) the following:

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

vested member elected for the first time on or after November 30, 2015 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 has reached the age of 60 years.

3. (1) Subsections 20(2.1) and (2.2) of the Act are

repealed and the following substituted:

(2.1) Notwithstanding subsection (2), the annual

amount of the supplementary allowance paid to a member elected for the first

time after December 31, 2009 and before November 30, 2015 shall be calculated

by adding the following amounts:

(

a) for each year of MHA service for a maximum

period of 20 years, 3.5% of his or her base MHA salary;

(

b) for each year of ministers service for a

maximum period of 20 years, 3.5% of his or her base ministers salary; and

(

c) for each year of other service, 2% of his or

her base MHA salary.

(2.2) Notwithstanding subsection (2), the annual

amount of the supplementary allowance paid to a member elected for the first

time on or after November 30, 2015 shall be calculated by adding the following

amounts:

(

a) for each year of MHA service for a maximum

period of 20 years, 2.5% of his or her base MHA salary;

(

b) for each year of ministers service for a

maximum period of 20 years, 2.5% of his or her base ministers salary; and

(

c) for each year of service purchased by a member

under

section 31, 2% of his or her base MHA salary.

(2) Section 20 of the Act is amended by adding

immediately after subsection (2.2) the following:

(2.3) 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 members age is less than the age of 55 years.

4. Subsection 30(1) of the Act is repealed and the

following substituted:

Purchase of

service

(1) Where

a member who was elected before November 30, 2015 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 ; or

(

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.

Section 32 of the Act is amended by adding

immediately after subsection (2) the following:

(3) This

section does not apply in respect of a

member who was elected for the first time on or after November 30, 2015.

PORTABILITY OF PENSIONS ACT

RSNL1990 cP-17

as amended

6. The Portability

of Pensions Act is amended by adding immediately after

section 2 the

following:

Application

2.1

(1) This

Act does not apply to an MHA or a minister who was elected for the first time on

or after November 30, 2015.

(2) In this section, "MHA" and

"minister" have the meaning assigned to them in the Members of the House of Assembly Retiring Allowances

Act .

Commencement

7. This Act is considered to have come into force

on November 30, 2015.

Queen's Printer