BILL 18
An Act to Amend the
Pension Benefits Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 The
Pension Benefits Act, chapter P-5.1 of the Acts of New Brunswick,
1987, is amended by adding before the heading “REGULATIONS”
preceding section 100 the following:
PENSIONERS OF ST. ANNE-NACKAWIC
PULP COMPANY LTD.
Transfer of commuted value
of a pension
99.1(1) This section applies to the following pension plans:
(a) Pension Plan for Non-Union Salaried
Employees of St. Anne-Nackawic Pulp Company Ltd., the registration
of which under the Act was acknowledged on August 7, 1997, as amended;
(b) Pension Plan for Hourly Paid and
Clerical Union Employees of St. Anne-Nackawic Pulp Company Ltd., as
registered with the Superintendent on January 13, 1994, as amended.
99.1(2) On the wind-up of the pension plans mentioned in subsection (1)
a person who is receiving a pension under one of the plans is entitled
to require the administrator to transfer the commuted value of the
pension in accordance with the regulations
(a) to another pension plan with the
consent of the administrator of that plan, or
(b) to a prescribed retirement savings
arrangement.
99.1(3) The administrator shall not make a transfer under paragraph (2)(a)
to a pension plan that is not registered in the Province unless
(a) the pension plan is registered for
persons employed in a designated jurisdiction, and
(b) the member is employed in that jurisdiction
by an employer who is making contributions on behalf of the member
to the pension fund that is to receive the amount to be transferred.
99.1(4) The administrator shall not make a transfer under paragraph (2)(b)
unless the retirement savings arrangement meets the prescribed requirements.
99.1(5) A person who desires to exercise any rights under subsection
(2) shall deliver a direction in the prescribed form to the administrator
within ninety days after receipt of notice of the rights.
99.1(6) The administrator shall, subject to the requirements of this
Act and the regulations, comply with the direction within thirty days
after its receipt.
99.1(7) Money transferred from a pension fund to a retirement savings
arrangement purchased pursuant to a right exercised under subsection
(2) shall be administered in accordance with this Act and the regulations,
and sections 41, 42 and 56 apply to the amount transferred.
99.1(8) Subsection (7) applies to the initial transfer or purchase and
to any subsequent transfer or purchase.
99.1(9) Where an administrator has complied with a request in accordance
with this section, the administrator and the pension fund are not
liable for providing the pension.
Limitation on transfer of
money from a pension fund
99.2(1) The administrator of a pension plan shall not transfer money
out of the pension fund pursuant to section 99.1without the consent of the Superintendent if the transfer
is not within the prescribed limitations in relation to transfers
of money from pension funds.
99.2(2) On request for consent under subsection (1), the Superintendent
may consent to the transfer on such terms and conditions as the Superintendent
considers appropriate in the circumstances.
Liability in relation to
improper transfer of money from a pension fund
99.3 Where money has been paid or transferred from a pension fund contrary
to this Act or the regulations or contrary to a term or condition
imposed by the Superintendent under section 99.2, the Superintendent may order the transferee to return
the money to the pension fund and the transferor and transferee are
jointly liable to the pension fund for the amount of money so transferred
plus interest.
Exemption from execution,
seizure or attachment
99.4(1) Except as otherwise provided by this Act, a transaction that
purports to assign, charge, anticipate or give as security any interest
in or under a retirement savings arrangement referred to in section 99.1 or any money payable under such an
arrangement is void.
99.4(2) Except as otherwise provided by this Act, money paid out of a
pension fund to another pension plan or to a retirement savings arrangement
under section 99.1 is exempt from
execution, seizure or attachment or other process of law.
99.4(3) Except as otherwise provided in this Act, any interest in or
under a retirement savings arrangement referred to in section 99.1 and any money payable under any such
retirement savings arrangement are exempt from execution, seizure
or attachment or other process of law.
99.4(4) Money payable under a retirement savings arrangement referred
to in section 99.1 is subject to
execution, seizure or attachment or other process of law in satisfaction
of an order for support or maintenance enforceable in the Province,
whether made before or after the commencement of this section, but,
other than in the case of a refund of contributions with interest,
to a maximum of fifty per cent of the payment unless otherwise ordered
by a court of competent jurisdiction.
99.4(5) Except as otherwise provided by this Act, a transaction that
purports to commute or surrender a retirement savings arrangement
referred to in section 99.1 is void.
2 Subsection
100(1) of the Act is amended
(a) by adding
after paragraph (j.1) the following:
(j.2) respecting retirement savings arrangements
prescribed for the purposes of paragraph 99.1(2)(b);
(b) by adding
after paragraph (t.1) the following:
(t.2) respecting records that shall be
kept by a financial institution acting as a trustee for a retirement
savings arrangement prescribed for the purposes of paragraph 99.1(2)(b) and the period of time for
which such records shall be retained by the financial institution;
(c) by
adding after paragraph (x) the following:
(x.1) exempting, for the application of
section 99.1, subject to any terms or conditions specified, any category
of persons from the application of subsection 56(1) of the Act.
3 Section
100.1 of the Act is amended
(a) in subsection
(2) by striking out “June 30, 2006” and substituting “June 30, 2008”;
(b) in subsection
(3) by striking out “June 30, 2006” and substituting “June 30, 2008”.
4 This
Act comes into force on a day to be fixed by proclamation.