BILL 64
An Act Respecting the Members’ Pension Act and the Members Superannuation Act
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
Members’ Pension Act
1(1) Section 13 of the Members’ Pension Act, chapter M-7.1 of the Acts of New Brunswick, 1993, is amended
(a)  in subsection (1) in the portion preceding paragraph (a) by striking out “subsections (2), (3) and (4)” and substituting “subsections (1.1), (1.2), (1.3), (2) and (4)”;
(b)  by adding after subsection (1) the following:
13(1.1) Where a person described in subsection (1) dies within one year after the date of his or her marriage, no surviving spouse’s pension is payable to his or her surviving spouse unless the Minister considers it would be just and reasonable in the circumstances for the surviving spouse to be paid a surviving spouse’s pension.
13(1.2) Subsection (1.1) applies whether the marriage occurs before, on or after the commencement of this subsection.
13(1.3) For the purposes of subsection (1.1), the surviving spouse must show the Minister that the marriage was entered into in good faith.
(c)  by repealing subsection (3).
1(2) The Act is amended by adding after section 14.1 the following:
Annual adjustment of deferred pension
14.2(1) The following definitions apply in this section.
“Consumer Price Index” means Consumer Price Index as defined in subsection 14.1(1). (indice des prix à la consommation)
“pension index” means pension index as defined in subsection 14.1(1). (indice de pension)
14.2(2) Where, on or after January 1, 2007, the payment of an annual pension is deferred under subsection 10(1), the amount of the pension shall be adjusted in accordance with subsection (4) until the time of payment of the pension.
14.2(3) Where, on or after January 1, 2007, the payment of a minister’s pension is deferred under subsection 11(2), the amount of the pension shall be adjusted in accordance with subsection (4) until the time of payment of the pension.
14.2(4) The amount of a pension referred to in subsection (2) or (3) shall be adjusted as of the first day of each year, beginning on January 1, 2007, by multiplying the amount of the pension that would have been payable for that year if no adjustment had been made under this subsection with respect to that following year, by the ratio that the pension index for that year bears to the pension index for the preceding year or 1.06, whichever is the lesser.
14.2(5) Notwithstanding subsection (4), the first adjustment under subsection (4) shall be the amount determined by multiplying the increase, if any, that would otherwise be payable under subsection (4) by a fraction the denominator of which is 12 and the numerator of which is equal to the number of months following the month in which the person ceased to be a member or minister, as the case may be, in the year preceding the year in which the first adjustment is made.
14.2(6) Notwithstanding subsection (4), any increase in the amount of pension payable under this Act by virtue of any adjustment made under subsection (4) relating to any period before January 1, 2007, shall be implemented
(a)  so as to be effective January 1, 2007, and
(b)  without any retroactive payment being made in respect of any period before January 1, 2007.
1(3) Subsection 20.1(8) of the Act is amended by striking out “Subject to subsection (9), a” and substituting “A”.
1(4) The Act is amended by adding after section 29.01 the following:
Annual adjustment of deferred supplementary allowance
29.02 Section 14.2 applies with the necessary modifications to a supplementary allowance referred to in section 21 or 23.
Members Superannuation Act
2(1) The Members Superannuation Act, chapter M-8 of the Revised Statutes, 1973, is amended by adding before section 3 the following:
PART 1
BENEFITS
2(2) The Act is amended by adding after section 22 the following:
PART 2
ALLOWANCE FOR SURVIVING SPOUSES
Allowance payable to a surviving spouse
23(1) Subject to subsections (2) to (7), upon the death of a person who was receiving an annual pension prior to the date of his or her marriage to his or her surviving spouse, that surviving spouse is entitled to receive immediately an allowance equal to one-half the amount calculated under sections 11 and 12.
23(2) A surviving spouse who is entitled to a surviving spouse’s pension is not entitled to an allowance under this Part.
23(3) Where a person described in subsection (1) dies within one year after the date of his or her marriage, no allowance is payable to his or her surviving spouse unless the Minister considers it would be just and reasonable in the circumstances for the surviving spouse to be paid an allowance.
23(4) Subsection (3) applies whether the marriage occurs before, on or after the commencement of this subsection.
23(5) For the purposes of subsection (3), the surviving spouse must show the Minister that the marriage was entered into in good faith.
23(6) A children’s pension is not payable at the same time as an allowance is being paid to a surviving spouse.
23(7) A children’s pension is payable upon the death of a surviving spouse who was receiving an allowance under this Part.
Allowance payable out of the Consolidated Fund
24 An allowance payable under this Part shall be paid out of the Consolidated Fund.
Annual adjustment of allowance
25 Section 10.5 applies with the necessary modifications to an allowance under this Part, except that the reference to “December 31, 1996” in subsection 10.5(1) shall be read as a reference to “December 31, 2006” and the references to “January 1, 2001” in subsections 10.5(1) and (3) shall be read as references to “January 1, 2008”.
Division of allowance on marriage breakdown
26 Section 20.01 and any regulation made under section 20.02 apply with the necessary modifications to an allowance under this Part.
Payment of allowance
27 Except as otherwise provided in this Part, an allowance payable under this Part shall be paid at the same time, in the same manner and under the same terms and conditions as a surviving spouse’s pension is or would be payable under Part 1, and the provisions of Part 1 apply, with the necessary modifications, in relation to the payment of an allowance payable under this Part.
COMMENCEMENT
3 Subsections 1(2) and (4) of this Act shall be deemed to have come into force on January 1, 2007.
EXPLANATORY NOTES
Section 1
1)  
(a)  Consequential amendment.
(b)  New provisions.
(c)  The existing provision is as follows:
13(3) A surviving spouse is not entitled to receive a surviving spouse’s pension if the spouse was receiving an annual pension before the date of their marriage unless the spouse again became a member after that date.
2)  New provisions.
3)  The existing provision is as follows:
20.1(8) Subject to subsection (9), a division of benefits under this section is limited by any restrictions under this Act in relation to the payment of money out of the Members’ Pension Account.
4)  New provision.
Section 2
1)  The Members Superannuation Act is divided into Parts.
2)  New provisions.
Section 3
Commencement provision.