BILL 20

An Act to Amend the Workers’ Compensation Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 38.22 of the Workers’ Compensation Act, chapter W-13 of the Revised Statues, 1973, is amended

(a)  by repealing subsection (1) and substituting the following:

38.22(1) When compensation is paid to a worker under section 38.11 for a period exceeding twenty-four consecutive months, the Commission shall set aside an amount, commencing in the twenty-fifth month, to be used with the interest that accrues on that amount to provide a pension for the worker at age sixty-five or to be disbursed in accordance with subsection (13).

(b)  by adding after subsection (1) the following:

38.22(1.1) The amount under subsection (1) shall be calculated by multiplying the percentage prescribed below times the amount of compensation paid beginning from the twenty-fifth consecutive month to the worker’s sixty-fifth birthday or until the worker dies, whichever occurs first:

(a)  5% for the period between January 1, 1998, to December 31, 2008; and

(b)  10% from January 1, 2009, onwards.

38.22(1.2) Notwithstanding subsection (1.1), if a worker reaches the age of sixty-five on or after January 1, 2009, or if the worker dies on or after January 1, 2009, but before reaching the age of sixty-five, the Commission shall set aside for the worker’s account in the Pension Fund such amount of money as though it had been paid into the account at the rate of 10% plus interest accrued at the rate prescribed in subsection (9), and such sum shall be used to provide a pension to the worker at age sixty-five or to be disbursed in accordance with subsection (13).

(c)  by repealing subsection (2) and substituting the following:

38.22(2) Subject to subsections (4), (5), (6) and (7), when compensation is paid to a worker under section 38.2 for a period exceeding twenty-four consecutive months, the Commission shall set aside an amount, commencing in the twenty-fifth month, to be used with the interest that accrues on that amount to provide a pension for the worker at age sixty-five or to be disbursed in accordance with subsection (13).

(d)  by adding after subsection (2) the following:

38.22(2.1) The amount under subsection (2) shall be calculated by multiplying the percentage prescribed below times the amount of compensation paid beginning from the twenty-fifth consecutive month to the worker’s sixty-fifth birthday or until the worker dies, whichever occurs first:

(a)  5% for the period between January 1, 1993, to December 31, 2008; and

(b)  10% from January 1, 2009, onwards.

38.22(2.2) Notwithstanding subsection (2.1), if a worker reaches the age of sixty-five on or after January 1, 2009, or if the worker dies on or after January 1, 2009, but before reaching the age of sixty-five, the Commission shall set aside for the worker’s account in the Pension Fund such amount of money as though it had been paid into the account at the rate of 10%, plus interest accrued at the rate prescribed in subsection (9), and such sum shall be used to provide a pension to the worker at age sixty-five or to be disbursed in accordance with subsection (13).

2 This Act comes into force on January 1, 2009.