BILL 80
Nursing Homes Pension
Plans Act
Her Majesty, by and with the advice
and consent of the Legislative Assembly of New Brunswick, enacts as
follows:
Definitions
1 The following definitions apply in this Act.
“board” means a board of trustees,
a pension board or such other board however called that is responsible
for the administration of a nursing home pension plan. (conseil)
“Chairperson ” means the Chairperson
appointed under subsection 4(1). (président)
“nursing home pension plan”
means a pension plan referred to in section 2. (régime de pension du personnel d’un
foyer de soins)
“Superintendent” means the
Superintendent of Pensions appointed under section 91 of the Pension Benefits Act. (surintendant)
Application
2 This Act applies to the following pension plans:
(a) Pension Plan for General and Service Employees of New
Brunswick Nursing Homes, established effective April 1, 1982, and
registered with the Superintendent as NB.0447938, as amended;
(b) Pension Plan for Nursing and Paramedical Employees
of New Brunswick Nursing Homes, established effective April 1, 1982,
and registered with the Superintendent as NB.0447946, as amended;
(c) Pension Plan for Management Employees of New
Brunswick Nursing Homes, established effective April 1, 1982, and
registered with the Superintendent as NB.0447953, as amended.
Conflict
3 Notwithstanding section 5 or subsection 6(1) of the Pension Benefits Act or any other
provision of that Act or any regulations made under that Act, or any
other Act of the Legislative Assembly or any regulation made under
those Acts, or any deed of settlement, agreement, contract, trust
agreement, pension plan or other instrument, where any provision of
this Act or any regulation made under this Act is inconsistent with
any provision of the Pension Benefits
Act or any regulations made under that Act, or with any provision
of any other Act or regulation made under that Act, or is inconsistent
with any deed of settlement, agreement, contract, trust agreement,
pension plan or other instrument, the provisions in this Act and the
regulations made under this Act prevail to the extent of the inconsistency.
Chairperson of a board
4(1) The Minister of Finance shall appoint a person to be a member
of each board, and any person so appointed shall be the Chairperson
of the board and shall be non-voting, except as provided under section 11.
4(2) The Chairperson shall preside at the meetings of the board and
may call meetings of the board if, in his or her opinion, a meeting
of the board is desirable.
4(3) Any person who is the chairperson or a co-chairperson of a board
immediately before the commencement of this section is removed from
the office of chairperson or co-chairperson, but is not, by virtue
of this section, removed as a member of the board.
4(4) Except as provided in subsection (2), a person who was the chairperson
or co-chairperson of a board immediately before the commencement of
this section may
(a) continue to discharge the duties and responsibilities
for which he or she was otherwise responsible immediately before the
commencement of this section, and
(b) carry out the duties referred to in subsection (2) in
the absence of the Chairperson.
Other members of a board
5(1) The person or persons who appoint members to a board shall ensure
that one-half of the members of the board are representatives of members
of the nursing home pension plan and one-half of the members are representatives
of the employer or employers.
5(2) For the purposes of determining whether a board meets the requirements
of subsection (1) or the eligibility requirements of paragraph 9(1)(e) of the Pension Benefits Act, if applicable,
the Chairperson appointed under subsection 4(1) shall not be counted as a member of the board.
Objects of board
6 The objects of a board are as follows:
(a) to assist the nursing home pension plan of which it
is the administrator in meeting its obligations to contributors and
beneficiaries;
(b) to manage the pension fund in the best interests of
the contributors and beneficiaries; and
(c) to invest the assets of the pension fund with a view
to achieving a maximum rate of return, without undue risk of loss,
having regard to the factors that may affect the funding of the plan
and the ability of the plan to meets its financial obligations on
any given business day.
Powers of board
7(1) Subject to this Act and the regulations, a board has the rights,
powers and privileges of a natural person with respect to its objects.
7(2) A board shall not, directly or indirectly, carry on any business
or activity or exercise any power that is inconsistent with the board’s
objects and shall not, directly or indirectly, exercise any of its
powers contrary to this Act.
Specific duties
8(1) Subject to this Act and the regulations, the members of a board
shall manage or supervise the business and affairs of the board.
8(2) Without limiting the generality of subsection (1), a board shall
(a) unless otherwise established by the regulations,
establish written investment policies, standards and procedures,
(b) establish procedures for the identification
of potential conflicts of interest and procedures to resolve those
conflicts,
(c) establish a code of conduct for officers and employees
of the board, and
(d) designate a committee of the board to monitor application
of the conflict of interest procedures and the code of conduct.
8(3) Subject to the regulations, the investment policies, standards
and procedures established by a board shall be those to which a person
of ordinary prudence would adhere when dealing with the property of
others.
Training of board members
9 Every person who is a member of a board shall undertake such training
and attend educational courses as may be prescribed by the regulations.
Dispute resolution
10(1) Where with respect to any resolution or motion before a board
there is a deadlock, the deadlock shall be resolved in accordance
with the dispute resolution process prescribed by the regulations.
10(2) For the purposes of this section, a deadlock shall be deemed
to exist where a vote on a motion or resolution made at a meeting
of the board is neither adopted nor rejected or where a motion or
resolution is unable to be made at a meeting due to a lack of a quorum
at 2 consecutively called meetings.
10(3) This section does not apply with respect to any motion or resolution
that, in the opinion of the Chairperson, relates to or may be inconsistent
with the funding policy referred to in section 11.
Funding policy
11(1) A board, a member of the board, an employer and a member of a
nursing home pension plan shall comply with the funding policy for
a nursing home pension plan as provided for under this section and
as prescribed by the regulations.
11(2) The Chairperson has a vote with respect to any motion or resolution
that, in the opinion of the Chairperson, relates to or may be inconsistent
with the funding policy.
11(3) No person shall make amendments to a nursing home pension plan
that would be inconsistent with the funding policy for that pension
plan.
11(4) The Superintendent shall not accept
for registration an amendment to a nursing home pension plan that,
in the opinion of the Superintendent, is not in compliance with the
funding policy for that pension plan.
11(5) The funding policy includes, but is not restricted to, the following
requirements:
(a) improvements to benefits under a nursing home pension
plan may be made only in the event the value of the assets of the
plan are valued at greater than 120% of the value of the liabilities
of the plan, on a going concern basis;
(b) no more than 33% of the surplus referred to in paragraph
(a) may be used to improve
benefits and no improvements to benefits may be made for service rendered
and credited after the valuation date used in the most recently received
actuarial valuation report made in respect of the nursing home pension
plan;
(c) if the value of the assets of a nursing home pension
plan are equal to or greater than 95% but less than 120% of the value
of the liabilities of the plan, on a going concern basis, the normal
contributions of the employers and employees to the pension plan shall
continue;
(d) if the value of the assets of the nursing home pension
plan referred to in paragraph 2(a) is less than 95% of the value
of the liabilities of the plan, on a going concern basis, the employees
and the employers shall increase their contributions to the plan in
accordance with the funding policy until the value of the assets of
the plan, on a going concern basis, reaches 100%.
Review of funding policy
12(1) The Minister of Finance shall ensure that a review is commenced
within 4 years after the commencement of this Act for the purpose
of examining and reporting on the effectiveness of the funding policy
referred to in section 11.
12(2) The Minister of Finance shall ensure that a review under subsection (1)
is concluded no later than 6 months after it commences.
12(3) The Minister of Finance shall lay the report prepared as a result
of the review before the Legislative Assembly within 30 days after
receiving the report or, if the Legislative Assembly is not sitting,
when it next sits.
Solvency deficiency payments orders nullified
13 The following orders of the Superintendent are declared to be null
and void and of no force and effect with respect to any special payments
ordered to be made in respect of any solvency deficiency referred
to in the orders:
(a) the order dated March 8, 2006, to the Contributing Member
Homes, as defined in the Pension Plan for General and Service Employees
of New Brunswick Nursing Homes, to pay all special payments due in
respect of any solvency deficiency identified in the “Actuarial Valuation as at June 30, 2003
for the Pension Plan for General and Service Employees of New Brunswick
Nursing Homes” (the Valuation Report);
(b) the order dated March 8, 2006, to the Contributing Member
Homes, as defined in the Pension Plan for Nursing and Paramedical
Employees of New Brunswick Nursing Homes, to pay all special payments
due in respect of any solvency deficiency identified in the “Actuarial Valuation as at December 31,
2003 for the Pension Plan for Nursing and Paramedical Employees of
New Brunswick Nursing Homes” (the Valuation Report);
(c) the order dated July 12, 2006, to the Contributing
Member Homes, as defined in the Pension Plan for Management Employees
of New Brunswick Nursing Homes, to pay all special payments due in
respect of any solvency deficiency identified in the “Actuarial Valuation as at December 31,
2004 for the Pension Plan for Management Employees of New Brunswick
Nursing Homes” (the Valuation Report).
Decision of Labour and Employment Board
nullified
14 The decision of the Labour and Employment Board dated April 30, 2007,
as it applies to the orders of the Superintendent with respect to
solvency deficiency payments referred to in section 13 is declared to be null and void and
of no force and effect.
Solvency deficiency payment orders prohibited
15 The Superintendent shall not make any order for special payments
in respect of a solvency deficiency identified in an actuarial valuation
report for a nursing home pension plan.
Actuarial valuations
16(1) A board shall ensure that an actuarial valuation is conducted
annually of the nursing home pension plan for which it is the administrator.
16(2) Each actuarial valuation report shall continue to identify any
solvency deficiencies in a nursing home pension plan.
16(3) The board shall file each actuarial valuation report without
delay with the Superintendent.
16(4) Where an actuarial valuation report indicates that there is a
funding surplus or deficiency referred to in subsection 11(5), and where, in the Chairperson’s
opinion, the board has not acted within a reasonable time so as to
comply with the funding policy referred to in section 11 or has not taken appropriate action
to comply with the funding policy, the Chairperson shall so advise
the Superintendent.
Application of Pension Benefits Act
17(1) Except as otherwise provided in this Act or in the regulations,
the provisions of the Pension Benefits
Act and the regulations under that Act apply to nursing home
pension plans.
17(2) Any reference in the following provisions in the Pension Benefits Act to “this
Act”, “this Act and the regulations”, “the
regulations” or words of like import shall be deemed to also
include a reference to this Act or to the regulations under this Act,
as the case may be:
(a) 13(1)(c), (d) and (e);
(b) 14(1) and 14(2)(b);
(c) 20;
(d) 49(3) and (6);
(e) 53 and 58;
(f) 61(1)(e);
(g) 72(2) and (6), 73(1), 74(3)(b) and 79;
(h) 81, 82(1), 83(1), 84(1) and 86;
(i) 91(3);
(j) any other provision prescribed by the regulations.
Offences
18(1) A person who violates or fails to comply with subsection 5(1), 11(1) or (3) or 16(1) or (3) commits
an offence punishable under Part II of the Provincial Offences Procedure Act as a category E offence.
18(2) A person who violates or fails to comply with a provision of
the regulations, other than a provision made in respect of a funding
policy referred to in subsection 11(1), commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category B offence.
18(3) Where an offence under this Act or the regulations continues
for more than one day
(a) the minimum fine that may be imposed is the minimum
fine set by the Provincial Offences
Procedure Act multiplied by the number of days during which
the offence continues, and
(b) the maximum fine that may be imposed is the maximum
fine set by the Provincial Offences
Procedure Act multiplied by the number of days during which
the offence continues.
Regulations
19 The Lieutenant-Governor in Council may make regulations
(a) prescribing additional duties of a board;
(b) establishing investment policies, standards and procedures
for a nursing home pension plan;
(c) respecting the training and educational courses that
a member of a board is to undertake;
(d) prescribing a dispute resolution process for the purposes
of section 10;
(e) prescribing a funding policy for a nursing home pension
plan including, without limiting the generality of the foregoing,
cost-sharing arrangements between employers and employees, contributions
from employers or employees and the timing, manner and amount of contributions,
special payments that may be required to be made to a pension fund,
by whom the special payments are to be made and the timing, manner
and amount of the payments, and the management and use of any surplus
in a nursing home pension fund;
(f) prescribing provisions of the Pension Benefits Act for the purposes
of paragraph 17(2)(j);
(g) modifying, adapting or excluding from application any
provision of the Pension Benefits
Act or the regulations under that Act as it relates or applies
to a nursing home pension plan;
(h) defining any term that is used but not otherwise defined
in this Act;
(i) respecting any matter or thing the Lieutenant-Governor
in Council considers necessary or advisable to carry out effectively
the intent and purposes of this Act.
Commencement
20 This Act or any provision of it comes into
force on a day or days to be fixed by proclamation.