Bill 94 (Legislature 11, Session 4)

L11 S4 7005

Alberta — Bills

Bill No. 94 of 1951. A BILL TO ESTABLISH A RETIREMENT ANNUITY PLAN FOR RESIDENTS OF ALBERTA. NOTE. This Bill enacts a new Act to. be known as "The Annuities Act". The Provindal Treasurer is required to. establish and administer an annuity fund. Any person who resides in the Province may purchase a. retirement annuity by depositing in the fund an initial amount of not less than ten do.llars. Additional deposits of any amount may be made at any time until the date Df the purchaser's retirement.

The maxi mum annuity that may he purchased is the actuarial equiva lent of a single life annuity of fifteen hundred dollars per year commencing at the age of sixty years. CompDund interest is payable on amounts on deposit in the fund at the rate IQf three and one-half per cent per annum. Interest is credited quarterly from the date o.f de posit to. the date of retirement. If the earnings of the fund are insufficient to. pay this rate of interest the Provincial Treasurer pays in whatever may be required from the General Revenue Fund.

If at any time the Act is amended by reducing the rate of interest the reduction does not apply to purchasers' an nuity accounts opened prior to the date of the reduction. These accounts continue to be credited with interest at the rate in effect when the initilal deposit was made opening the account. The reduced interest is paid in respect of accounts opened after the reduction comes into force. A purchaser, at his option, may fix his date of retirement at lany date after he has attained the age of sixty years.

He may select a single life annuity, a joint life annuity or a guaranteed term annuity for any term of not less than five years. The Provincial Treasurer then pays· from the pur chaser's annuity account the retirement annuity selected by the purchaser. Annuities are pay,able annually, semi annually, quarterly or monthly. However, no amount pay able on account of any annuity can be less than ten dollars.

If the purchaser is unable to sele'ct an annuity which pro vides for payments of at least ten dollars, the Provincial Treasurer may pay the sum in the purchaser's account in a lump sum or in such instalments as the Provincial Treasurer may determine.

ii At the date of any purchaser's retirement the amount in his annuity account is transferred to an account in the fund known as the annuity reserve account out of which annuities are paid. This account is -alsQ credited with inter est at the rate of three and .one-half per cent per annum. If the earnings of the fund are insufficient to pay this rate of interest, the Provincial Treasurer pays in whatever may be required from the General Revenue Fund.

In the event 'Of the death of the purchaser befQre attain ing the date of his retirement, the total amount of all his deposits are payable to his estate, together with simple interest at the rate of three per cent per annum. At any time after five years from the making of a deposit the purchaser may withdraw all or part of that deposit. In the 0ase of withdrawals of amounts exceeding a thousand dollars, the Provincial Treasurer may require up to sixty days' notice. The interest on the m'Oney withdrawn is forfeited by the purchaser.

The amount forfeited is credited to the revenue derived from the investments of the fund in that year and for the purpose of calculating this interest the moneys deposited last that have been in the fund for five years are deemed to be withdrawn first. The fund and the payment of all annuities, interest and other moneys from the fund are guaranteed by the Province. The Provincial Treasurer is required to invest the moneys in the fund in the debentures, b.onds or other securities of cities, towns, villages, counties and municipal districts within the Province that are approved by him.

Where no investments of this nature are available, the Provincial Treasurer may temporarily invest the surplus moneys in provincial 'or domini.on bonds. H'Owever, a,s approved securi ties of municipalities within the Province become available for investment, the Provincial Treasur,er is required to dis pose of the provincial and dominion bonds unless they have to be sold ata loss and to purchase the municipal securities. The rate of interest payable by municipalities will be fixed by the Lieutenant Governor in Council.

The Lieutenant Governor in Council ils authorized to make regulations toO facilitate the administration of the Act and to enaJb1e the carrying out of its provisions acc'Ording to their true intent. The tables f.or determining the value of annuities will be 'adopted from time to time by regulation. Each purchaser is entitled to his, annuity on a table not less favourable to him than the 'One in force at the date of his initial dep.osit. Annuities are not assignable Dr transferable and no trusts respecting annuity accounts will be recognized.

A purchaser's annuity account cannot be garnisheed, seized or levied upon. HQwev,er, if a court is satisfied that a purchaser has made a deposit with intent to delay, hinder or defraud his creditors, the Provincial Treasurer may pay

iii the sum so deposited to the creditors or their representa tives. Any sum so paid is deemed to be a withdrawal by the purchaser so interest is forfeited on the deposit and the annuity is reduced p~oportionately. However, a creditor cannot bring an action in respect 'Of a deposit more than two years from the time at which the deposit complained of was made. This Bill comes into force on the 1st day of July, 1951. KENNETH A. McKENZIE, Legislative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

BILL No. 94 of 1951.

An Act to Establish a Retirement Annuity Plan" for Residents of Alberta. (Assented to , 1951.) HIS MAJESTY, by and with the, advice and consent of the Legislative Assembly of the Province of Alberta, enacts as foHows:

Short Title. 1. This Act may be cited as "The Retirement Annuities

Short title Act".

Interpretation. 2. In this Act, unless the context 'Otherwise requires,- I!lterpre.ta- ( ) "'t t" h tlOn a annUl y reserve accoun means t e account in "annuity the fund provided for under

section 14 out 'Of which reserve t" annuities are payable; accoun ( b) "fund" means the annuity fund established under "fund" this Act and includes each purchaser's annuity account and the annuity reserve account; (c) "purchaser" means a person who has one or more "purchaser" deposits to his credit in an annuity account in the fund. Annuity Fund. 3. The Provincial Treasurer shaH establish and administer Annuity the annuity fund. fund 4. Any Canadian citizen who has resided in the Province ~~r~~rs f'Or not less than three years may purchase a retirement ~~~~h:S~o annuity by dep'Ositing in the fund an initial amount of n'Ot ~~n:uity and InItial lesls than ten doHars. deposit 5.

(1) A purchaser may make additional deposits of any Depo~its in amount in his annuity account in the fund, subject to sub- ~~~~~ section (3).

(2) The additi'Onal deposits may be made at any time between the date of the purchaser's initial deposit and the date of his retirement.

(3) The maximum annuity that may be purchased is an annuity that is the actuarial equivalent of a single life an nuity of fifteen hundred dollars per year commencing at the age of sixty years.

Interest Calculation (:f interest on retire ment 2 Interest on Purchaser's Annuity Account. 6. The Provincial Treasurer shall credit each purchaser's annuity acoount in the fund with interest at the rate of three and one-half per cent per annum on the last day of each quarter, computed on the total amount of deposits and interest standing to the credit of the purchaser in his annuity ac>count on the last day of the preceding quarter. 7.

The Provincial Treasurer shall pay interest at three and one-half per cent per annum on the purchaser's annuity account for any portion of a quarter elapsing between the date of the immediately preceding computation of interest and the date of the purchaser's retirement. p~ocedure 8.

In any fiscal year when the revenue derived from the ~s~~f~'~~e~~ue investment of the fund is insufficient to pay interest at the ~~t~~~st rate required by sections 6 and 7, on or before the thirty- I . first day of March in that year, the Provincial Treasurer shall deposit in the fund such amount from the General Revenue Fund as may be ,required in order to credit the purchasers' annuity accounts with interest at the s:aid rate. Reduction in interest rate Date of retirement Notice of selection of annuity 9. If at any time this Aet is amended by reducing the rate of interest,- (

a) the reduction shall not apply to the annuity account .of any purchaser who made his initial deposit prior to the date of the reduction, which annuity account shall continue to be credited with interest at a rate not less than that in effect when the initial deposit was made; and (

b) the reduced interest shall be paid .only in respect of annuity accounts where the initial deposit is made after the reduction in interest comes into force. Retire·ment Annuity. 10. A purchaser, at his option, may fix any date after he has attained the age of sixty years as the date of his retire ment by giving to the Provincial Treasurer,- (

a) thirty days' notice in writing; and ( b) . proof of his age. 11.

(1) At the date of his retirement the purchaser may select,- (

a) a single life annuity; or (

b) a joint life annuity; or (

c) a guaranteed term annuity for any term of not less than five years; by giving a notice of his selection to the Provincial Treas urer in writing.

(2) The notice to the Provincial Treasurer shall indicate whether the purchaser wishes the annuity to be paid an nually, semi-annually, quarterly or monthly.

3 12.

(1) All annuities shall be based on tables in use for ~asic .tables the time being that are approved by the Lieutenant Governor a~nuities in C'0uncil under

section 22.

(2) If at any time the Lieutenant Governor in Council ad'0pts a table that is less favourable to any purchaser than the table in effect when that purchaser made his initial deposit in his annuity account,- (

a) the table so. adopted shall not apply to that pur 'chaser who. shall be entitled to an annuity on a table nbt less favourable to. him than the table in effect when his initial deposit was made; (

b) the table S'O adopted shall apply '0nly in respect of a purchaser who makes his initial' dep'0sit after the adopti'0n of that table. '13.

(1) The Provincial Treasurer shall pay from the Parment of fund the retirement annuity selected by the purchaser. ~~t~~~~ent

(2) Notwithstanding subsection (1), no amount payable by the Provincial Treasurer 'On account of any annuity under isection 11 shall be less than ten d'0llars.

(3) If the purchaser is unable to select any annuity under

section 11 which provides for payments of at least ten dollars, the Provincial Treasurer may pay the sum in the purchaser's annuity account in a lump sum or in such instalments :as the Provincial Tre'asurer may determine. 14. At the date o.f any purchaser's retirement the amount Annuity in his annuity account shall be t;ransferred to an account in ~~~~Z:;t the fund to be known as the annuity reserve account. 15.

The Provincial Treasurer shall credit the annuity Annuity reserve account with interest at the rate 'Of three and 'One- ~~~~Z:;t half per cent per annum 'On the last day of each quarter interes.t computed on the total amount in the annuity reserve account on the last day of the preceding quarter. 16. In any fiscal year when the revenue derived from the Procedure . t t f th f d·· ff·· t t . te t t th when revenue InVeS men '0 e un IS lnsu IClen 0 pay In res a e insufficient rate required by

section 15, o.n 'OV before the thirty-first day to pay an- . h P . . T h II d nUlty reserve of March In that year, t e ro.VlnClal reasurer s a e- account posit in the fund such amount from the General Revenue interest Fund as may be required in order to credit the annuity reserve account with interest at the said rate. Death Before Retirement. 17.

(1) If a purchaser dies prior to. attaining the date of p~y~ent to his retirement, the Provincial Treasurer shall pay to the es a e purchaser's estate,- (

a) the to.tal 'amount of all deposits made by the pur chaser in his annuity account; and

Withdrawal of deposits Interest on withdrawals Fund and payments guaranteed Investment of annuity fund moneys 4 (

b) simple interest at the rate of three per cent per annum payable from the last day of ea,ch quarter in respect 'Of all deposits made in that quarter to the date on which payment is made to the purchaser's estate.

(2) The difference between the interest credited to the purchaser's annuity account and simple interest at three per cent per annum shall be transferred by the Provincial Treasurer from the purchaser's annuity account and credit ed to the revenue derived from the investments of the fund in that year. Withdrawals. 18.

(1) At ,any time after five years fr'Dm the making of a dep'Dsit in his annuity account the purchaser may with- draw all or part of the amount of that deposit. .

(2) No money shall be withdrawn that has not been in the purchaser's annuity account for at least five years.

(3) In the case 'Of a withdrawal of any amount exceeding one thousand dollars, the Provincial Treasurer, in his dis cretion, may require such number of days' notice of the withdrawal as he deems advisable not exceeding a maximum of sixty days' notice. 19.

(1) The interest on the money withdrawn shall be forfeited by the purchaser and the Provincial Treasurer shall transfer the same from the purchaser's annuity ac count and credit it to the revenue derived from the invest ments of the fund in that year.

(2) For the purpose only of calculating the interest on money withdrawn, the moneys deposited last which have been in the purchaser's annuity account for at least five years shall be deemed to be withdrawn first. General Provisions. 20. The fund and the payment of all annuities, interest and other m'Dneys from the fund are guaranteed by the P~ovince. 21.

(1) The Provincial Treasurer shall invest the moneys in the fund in the debentures, bonds or other securities of any city, town, village, county or municipal district in the Province which are appr'Dved by him.

(2) Where no app~oved debentures, bonds or other securi ties referred to in subsection (1) are available for invest ment, the Provincial Treasurer may temporarily invest the surplus moneys in the fund in bonds or debentures of any province or bonds of the Dominion of Canada.

(3) As approved municipal investments authorized under subsection (1) become available, the Provincial Treasurer

5 shall sell investments made under subsection (2) to the extent necess·ary to purehase the available municipal de bentures, bonds 'Or 'Other securities.

(4) Notwithstanding subsection (3) the Pr'Ovincial Treasurer shall not be required to sell investments made under subsecti'On (2) at a l'Oss in order to purchase invest ments authorized under suhsecti'On (1) if in his discretion he deems it inadvisable t'O do SQ.

(5) The in~e~est p;ayable by any city, town, village, ~nterest on county or munIcIpal dIstrict on debenturels bonds 'Or other mves~ments securities purchased by the fund shall be' at such rate as may be fixed by the Lieutenant Governor in C'Ouncil. 22. The Lieutenant Govern'Or in Council may make such Regulations regulatiQns as may be deemed. necessary 'Or expedient,- (

a) adopting tables for determining the value 'Of an- nuities; (

b) prescribing the m'Odes 'Of proving the age and identity and the existence or death of persons; (

c) prescribing the m'Odes 'Of dealing with applicati'Ons f'Or unclaimed annuities; . (

d) prescribing forms to be used in connection with the administration 'Of this Act; (

e) to facilitate the administration 'Of this Act and to enable the carrying out 'Of its pr'Ovisi'Ons acc'Ording to their true intent. 23.

(1) No property, right, title, benefit 'Or interest in a Annuity not purchaser's annuity .accQunt, or in his annuity, shall be transferable transferable either at law 'Or in equity.

(2) The Pr'Ovincial Treasurer shall not rec'Ognize 'Or be affected by notice of any trust relating t'O any purchaser's annuity acc'Ount 'Or affecting moneys paid or payable in respect 'Of an annuity. 24.

(1) A purchaser's annuity account and the m'Oneys Annyity not paid or payable in respect IQf an annuity shaH n'Ot be ~~~~~~~~~ garnisheed, seized nor levied upon by or under the process seizure o~ 'Of any court. levy

(2) Notwithstanding subsection (1), if a purchaser makes Rig~t of a dep'Osit with intent t'O delay, hinder or defraud credit'Ors, creditors the creditors, upon establishing such intent bef'Ore a court 'Of competent jurisdicti'On, shall be entitled to receive, and the Pr'Ovincial Treasurer is authorized to pay to them, 'Or to any persons auth'Orized by tha C'Ourt to receive it on their behalf, any sum sO' dep'Osited by the purchaser.

(3) Any sum S'O paid shall be deemed to be a withdrawal by the purchaser.

(4) If an :annuity is then payable, the present value of the annuity shallibe reduced by the am'Ount the Pr'Ovincial T'reasurer pays to the creditors and the annuity payable to the purchaser shall be reduced pr'OP'Ortionately.

Coming into force 6

(5) The creditors shall not bring any action in respect of the deposit after the lapse of two years from the time at which the deposit complained of was made. 25. This Act shall come into force on the first day of July, 1951.

No. 94 FOURTH SESSION ELEVENTH LEGISLATURE 15 GEORGE VI 1951 BILL

An Act to Establish a Retirement Annuity Plan for Residents of Alberta. Recei ved and read the First time ........ . Second time ..... Third time HON. MR. MANNING. Title: 1951 (11th, 4th) Bill 94,

An Act to Establish a Retirement Annuity Plan for Residents of Alberta

Document details

Collection	Alberta — Bills
Citation	L11 S4 7005
Type	bill
Volume / chapter	L11 S4 7005
Language	en
Format	json
Source	PROVINCIAL
Identifier	e4ba34bb2aa1426e92601697b584a1fe3107d7d9

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