BILL 46
An Act to Amend the
Public Service Superannuation Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Subsection
1(1) of the Public Service Superannuation Act, chapter P-26 of the
Revised Statutes, 1973, is amended
(a) by repealing
the definition “disabled” and substituting the following:
“disabled” means, in
relation to a contributor, suffering from a physical or mental impairment
that prevents the contributor from engaging in any employment for
which the contributor is reasonably suited by virtue of the contributor’s
education, training or experience and that can reasonably be expected
to last for the remainder of the contributor’s lifetime; (invalide)
(b) by repealing
the definition “salary” and substituting the following:
“salary” means the compensation
received by a person for the performance of the regular duties of
a position or office and, where applicable, includes prescribed amounts
under the definition “compensation” in subsection 147.1(1)
of the Income Tax Act (Canada)
that are related to disability and eligible periods of reduced pay
and temporary absences and, subject to the regulations, where a person
receives only a portion of his or her salary for a period, he or she
is deemed, for the purpose of calculating his or her pension contributions,
to have received the full salary for that period; (traitement)
2 Section
3.2 of the Act is amended by striking out “annual maximum deductible
contributions” and substituting “annual maximum permissible contributions”.
3 Subparagraph
4(1)(b)(ii) of the Act is amended
(a) by repealing
clause (A.1);
(b) by repealing
clause (A.3) and substituting the following:
(A.3) with respect to service performed
and credited after 1991, any period of such service during which the
contributor was employed in full time employment with the Government
of Canada, including any Crown corporation or agency of that Government,
or with the Government of a Province or Territory of Canada, during
which he or she was a person required to contribute under the Public Service Superannuation Act (Canada) or under any similar legislation of the Province or Territory
of Canada specified by regulation, as the case may be, and in respect
of which the contributor has received a return of contributions, if
the period of such service is in accordance with subparagraph 8503(3)(a)(v)
of the Income Tax Regulations under the Income Tax Act (Canada), and if he or she elects to pay in respect of that period
of service an amount equal to twice the amount he or she would have
been required to pay had he or she been a contributor during that
period but based on the salary authorized to be paid to him or her
at the date of election and the contribution rates applicable at that
date,
(c) by adding
after clause (A.7) the following:
(A.8) with respect to service performed
before 1992 and credited after 1991, any period of such service in
respect of which the contributor has received, from the same employer
as his or her current employer or a predecessor employer of his or
her current employer, any amount by way of a return of contributions
and interest upon cessation of employment, if he or she elects to
pay in respect of that period of service an amount equal to the amount
he or she would have been required to pay had he or she been a contributor
during that period, but based on the salary authorized to be paid
to him or her at the date of election and the contribution rates applicable
at that date,
(d) by repealing
clause (B) and substituting the following:
(B) with respect to service performed
and credited after 1991, any period of such service in respect of
which the contributor has received any amount by way of a return of
contributions and interest under this Act, the Superannuation Act,
the Teacher’s Act or the Teachers’
Pension Act, if the period of such service is in accordance
with subparagraph 8503(3)(a)(i) or (v) of the Income Tax Regulations under the Income Tax Act (Canada), and if
he or she elects to pay in respect of that period of service an amount
equal to the amount he or she would have been required to pay had
he or she been a contributor during that period, but based on the
salary authorized to be paid to him or her at the date of election
and the contribution rates applicable at that date,
(e) by repealing
clause (C.1) and substituting the following:
(C.1) with respect to service performed
and credited after 1991, any period of such service during which the
contributor served as a member of the Legislative Assembly, but in
respect of which he or she is not entitled to a pension under the Members Superannuation Act or the Members’ Pension Act, if the
period of service is in accordance with subparagraph 8503(3)(a)(v)
of the Income Tax Regulations under the Income Tax Act (Canada), and if he or she elects to pay in respect of that period
of service an amount equal to the amount he or she would have been
required to pay had he or she been a contributor during that period,
but based on the salary authorized to be paid to him or her at the
date of election and the contribution rates applicable at that date,
4 Section
7 of the Act is amended by adding after subsection (3) the following:
7(3.01) Notwithstanding subsection (3),
the total amount of any pension calculated under subsection (3) shall
not exceed the amount permitted under paragraph 8503(2)(b) of the Income Tax Regulations under the Income Tax Act (Canada).
5 Section
7.1 of the Act is repealed.
6 Subsection
10(2.1) of the Act is amended by striking out “clause 4(1)(b)(ii)(A),
(B) or (C.1)” and substituting “clause 4(1)(b)(ii)(A) or (A.8)”.
7 Section
10.4 of the Act is amended
(a) by renumbering
the section as subsection 10.4(1);
(b) by adding
after subsection (1) the following:
10.4(2) An annual allowance under paragraph (1)(b) is subject to paragraph
8503(3)(c) of the Income Tax Regulations under the Income Tax Act (Canada).
8 Section 10.5 of the Act is amended
(a) by renumbering
the section as subsection 10.5(1);
(b) by adding
after subsection (1) the following:
10.5(2) An annual allowance under paragraph (1)(b) is subject to paragraph
8503(3)(c) of the Income Tax Regulations under the Income Tax Act (Canada).
9 Section 10.9 of the Act is amended by striking
out “the age of seventy-one” and substituting “the age prescribed in clause
8502(e)(i)(A) of the Income Tax Regulations under the Income Tax Act (Canada)”.
10 Section 11 of the Act is amended by adding
after subsection (9) the following:
11(10) Notwithstanding subsections (1) to (4), the total of a surviving
spouse’s pension and any additional allowance under subsections
(1) to (4) shall not exceed the amounts permitted under paragraphs
8503(2)(d) and (e) of the Income
Tax Regulations under the Income Tax Act (Canada).
11 Section
12 of the Act is repealed and the following is substituted:
Children’s
pension
12(1) Where a contributor who had to the
contributor’s credit 5 or more years pensionable service dies
without leaving a surviving spouse or where a surviving spouse’s
pension ceases under subsection 11(5), a children’s pension equal to the surviving spouse’s
pension that was being paid or could have been paid under section 11 is to be paid in equal shares to the
children of the contributor who, at the time of the contributor’s
death, are both dependent on the contributor for support and
(a) under 19 years of age and will not
attain the age of 19 years in the calendar year that includes that
time,
(b) under 25 years of age and will not
attain the age of 25 years in the calendar year that includes that
time and who are in full-time attendance at an educational institution,
or
(c) dependent on the contributor by
reason of mental or physical infirmity.
12(2) Where a children’s pension is payable under this section,
it is to be paid to the person having custody and control of the child
and where there is no such person, it is to be paid to the child or
to such other person as the Minister directs.
12(3) A children’s pension ceases to be payable
(a) in the case of a child described
in paragraph (1)(a), on December 31 of the calendar year in which
the child attains the age of 18 years,
(b) in the case of a child described
in paragraph (1)(b), when the child attains the age of 25 years or
ceases to be in full-time attendance at an educational institution,
whichever occurs earlier, or
(c) in the case of a child described
in paragraph (1)(c), if the child ceases to be infirm.
12(4) Notwithstanding subsections (1) to (3), the total of a children’s
pension under this section shall not exceed the amounts permitted
under paragraphs 8503(2)(d) and (e) of the Income Tax Regulations under the Income Tax Act (Canada).
12 Section
13 of the Act is repealed and the following is substituted:
Pension for dependant
of contributor
13(1) Where a contributor who had to the contributor’s credit
5 or more years pensionable service dies without leaving a surviving
spouse or children or where a surviving spouse’s pension or
a children’s pension is no longer payable under this Act, the
Lieutenant-Governor in Council may grant to a person, who, being a
member of the contributor’s family and a “dependant”
of the contributor as defined in subsection 8500(1) of the Income Tax Regulations under the Income Tax Act (Canada), was at
the time of the death of the contributor wholly or partly dependent
upon the contributor’s earnings, a pension in an amount not
exceeding the amount of the surviving spouse’s pension that
was being paid or could have been paid under section 11.
13(2) A pension referred to in subsection (1) shall end no later than
at the end of the person’s “eligible survivor benefit
period” as defined in subsection 8500(1) of the Income Tax Regulations under the Income Tax Act (Canada).
13 Section
19 of the Act is repealed and the following is substituted:
Protection of
interests and rights
19(1) Subject to subsection (2), the interest or right of any person
in the Superannuation Account and his or her entitlement to any benefit
under this Act are not subject to garnishment, attachment, seizure
or any legal process except in respect of a failure by that person
to account for public money.
19(2) A benefit paid out of the Superannuation Account, other than
a benefit referred to in section 20, is subject to garnishment, attachment, seizure or any legal process
in satisfaction of an order for support or maintenance made in favour
of a spouse or child and enforceable in the Province, whether the
order is made before, on or after the commencement of this subsection,
to a maximum of 50% of the benefit.
19(3) If a benefit has been divided between a contributor and his or
her spouse under section 19.1, then
subsection (2) does not apply to any order for support or maintenance
made in favour of that spouse.
19(4) Subsection (3) applies whether the benefit is divided before,
on or after the commencement of subsection (3) and whether the order
is made before, on or after the commencement of subsection (3).
19(5) The interest or right of any person in the Superannuation Account
and his or her entitlement to any benefit under this Act are not capable
of being assigned, charged, anticipated, given as security or surrendered.
19(6) For the purposes of subsection (5),
(a) assignment does not include
(i) assignment pursuant to a decree,
order or judgment made by a competent tribunal on or after January
1, 1997, in relation to the division on marriage breakdown of a benefit
that a contributor or former contributor is or may be entitled to
under this Act,
(ii) assignment pursuant to a written
agreement, entered into on or after January 1, 1997, in settlement
of rights arising as a consequence of the breakdown of a marriage
between a contributor and the contributor’s spouse or former
spouse, or
(iii) assignment by the legal representative
of a deceased contributor on the distribution of the contributor’s
estate, and
(b) surrender does not include a reduction
in benefits to avoid the revocation of the registration of the pension
plan provided for in this Act.
14 Subsection
21(5) of the Act is amended by adding “and if that amount is transferred
from a registered pension plan, deferred profit sharing plan or registered
retirement savings plan of that person” after “the date of the payment by
the Minister”.
COMMENCEMENT
15(1) Paragraph 3(a) of this Act shall be deemed
to have come into force on January 1, 1996.
15(2) Paragraphs 3(b), (c), (d) and (e) and section
6 of this Act come into force on a day or days to be fixed by proclamation.
15(3) Section 9 of this Act shall be deemed to
have come into force on January 1, 1997.
EXPLANATORY NOTES
Section 1
(a) The existing definition
is as follows:
“disabled” means incapable
of pursuing regularly any substantially gainful employment; (invalide)
(b) The existing definition
is as follows:
“salary” means the compensation
received by a person for the performance of the regular duties of
a position or office during any period of service, and, subject to
the regulations, where a person receives only a portion of his salary
for a period, he is deemed, for the purpose of calculating his pension
contributions, to have received the full salary for that period; (traitement)
Section 2
The existing provision is as follows:
3.2 Notwithstanding subsection 3(1) and sections 3.01 and 3.1, a contributor
shall not in any year contribute to the Superannuation Account an
amount in excess of the amount of the annual maximum deductible contributions
to a registered pension plan as that amount is established under the Income Tax Act (Canada) and the
regulations under that Act.
Section 3
(a) The existing provision is
as follows:
(A.1) any period of continuous full
time service during which the contributor was, immediately before
becoming employed in full time employment in the Public Service, an
employee of a municipality within the meaning of section 26, who became
employed in the Public Service immediately after ceasing to be employed
by the municipality because the contributor’s function, which
was the responsibility of the municipality, became the responsibility
of the Province, and in respect of which the contributor has no pensionable
service to the contributor’s credit under this Act, if the contributor
elects, before January 1, 1996, to pay in respect of that period of
service an amount equal to the amount the contributor would have been
required to contribute had the contributor been a contributor during
that period but based on the salary authorized to be paid to the contributor
at the date of election and the applicable contribution rates at that
date,
(b) The existing provision is
as follows:
(A.3) any period of service with the
Government of Canada, including any Crown corporation or agency of
that Government, or with the Government of a Province or Territory
of Canada, during which the contributor was a person required to contribute
under the Public Service Superannuation
Act (Canada) or under any similar legislation of the Province
or Territory of Canada specified by regulation, as the case may be,
and in respect of which the contributor received a return of contributions,
if the contributor elects to pay in respect of that period of service
an amount equal to twice the amount the contributor would have been
required to pay had the contributor been a contributor during that
period but based on the salary authorized to be paid to the contributor
at the date of election and the contribution rates applicable at that
date,
(c) New provision.
(d) The existing provision is
as follows:
(B) any period of service in respect
of which he has received any amount by way of a return of contributions
or interest under this Act, the Superannuation Act, the Teachers’
Act or the Teachers’ Pension
Act if he elects to pay in respect of that period of service
an amount equal to the amount he would have been required to contribute
had he been a contributor during that period but based on the salary
authorized to be paid to him at the date of election and the contribution
rates applicable at that date,
(e) The existing provision is
as follows:
(C.1) any period of service during
which he served as a Member of the Legislative Assembly, but in respect
of which he is not entitled to a pension under the Members Superannuation Act, if he
elects to pay in respect of that period of service an amount equal
to the amount he would have been required to contribute had he been
a contributor during that period but based on the salary authorized
to be paid to him at the date of election and the contribution rates
applicable at that date,
Section 4
New provision.
Section 5
The existing provision is as follows:
7.1(1) Where a contributor is in receipt of an immediate pension or
an annual allowance, the minimum amount payable, including any adjustments
under section 8, shall not be less than three thousand dollars annually,
if the total period of pensionable service is thirty-five or more
years, and if the total period of pensionable service is less than
thirty-five years, the minimum amount payable, including any adjustments
under section 8, expressed in annual terms, shall be calculated by
multiplying three thousand dollars by the ratio that the period of
pensionable service bears to thirty-five.
7.1(2) Where a person is entitled to or is receiving a surviving spouse’s
pension, children’s pension or a pension under section 13, the
amount of such pension shall be calculated in accordance with the
immediate pension or annual allowance referred to in section 11, 12
or 13, as the case may be, or in accordance with the immediate pension
or annual allowance calculated under subsection (1), whichever is
the greater.
Section 6
Consequential amendment. The existing provision
is as follows:
10(2.1) For the purposes of subsection (2), a contributor who has purchased
service under clause 4(1)(b)(ii)(A), (B) or (C.1) which occurred immediately
prior to September 1, 1966 shall be deemed to be a person who immediately
prior to September 1, 1966 was a contributor under the Superannuation
Act.
Section 7
(a) Consequential amendment.
(b) New provision.
Section 8
(a) Consequential amendment.
(b) New provision.
Section 9
The existing provision is as follows:
10.9 Notwithstanding any other provision of this Act, a contributor shall
not continue to contribute to the Superannuation Account or accumulate
pensionable service after the last day of the year in which the contributor
reaches the age of seventy-one, and any benefit to which the contributor
is entitled under this Act shall commence to be paid no later than
that day.
Section 10
New provision.
Section 11
The existing provision is as follows:
12(1) Where a contributor who had to his credit five or more years
pensionable service dies without leaving a surviving spouse or where
a surviving spouse’s pension ceases pursuant to subsection 11(5),
a children’s pension equal to the surviving spouse’s pension
that was being paid or could have been paid pursuant to section 11
is to be paid in equal shares to the children of the contributor who
are under eighteen years of age.
12(2) Notwithstanding subsection (1), the Lieutenant-Governor in Council
may grant a children’s pension to or on behalf of a child eighteen
or more years of age who is disabled.
12(3) Where a children’s pension is payable under this section,
it is to be paid to the person having custody and control of the child
and where there is no such person, it is to be paid to the child himself
or to such other person as the Minister directs.
Section 12
The existing provision is as follows:
13 Where a contributor who had to his credit five or more years pensionable
service dies without leaving a surviving spouse or children or where
a surviving spouse’s or children’s pension is no longer
payable under this Act, the Lieutenant-Governor in Council may grant
to a person, who, being a member of the contributor’s family,
was at the time of the death of the contributor wholly or partly dependent
upon his earnings, a pension in an amount not exceeding the amount
of the surviving spouse’s pension that was being paid or could
have been paid pursuant to section 11.
Section 13
The existing provision is as follows:
19 The interest of any person in the Superannuation Account and his
entitlement to any benefit under this Act is not subject to garnishment,
attachment, seizure or any legal process, except in respect of a charge
of failure to account for public money, and any such interest or benefit
is not assignable.
Section 14
The existing provision is as follows:
21(5) Any person mentioned in subsection (1) who subsequently is re-employed
in the public service may elect, in accordance with this Act, to count
the period of pensionable service in respect of which payment was
made pursuant to subsection (1), if he pays to the Minister, within
a period prescribed by the Minister, an amount equal to the payment
made pursuant to that subsection together with interest from the date
of the payment by the Minister.
Section 15
Commencement provisions.