BILL 48
An Act Respecting Members’
Pensions
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
Members’ Pension
Act
1 Section
5 of the Members’ Pension Act, chapter M-7.1 of the Acts of
New Brunswick, 1993, is amended
(a) by repealing paragraph (1)(b)
and substituting the following:
(b) 9% of the member’s indemnity, and
if the member is a minister, 9% of the minister’s salary.
(b) by adding after subsection (1)
the following:
5(1.1)
Subject to subsection (3), a member shall continue to contribute to
the Members’ Pension Account in accordance with subsection (1)
even if the member has reached the total of the amount of the annual
pension and the amount of the supplementary allowance or the reduced
supplementary allowance established under section 10.1.
5(1.2)
Subject to subsection (3), a minister shall continue to contribute
to the Members’ Pension Account in accordance with subsection
(1) even if the minister has reached the total of the amount of the
minister’s pension and the amount of the supplementary allowance
or the reduced supplementary allowance established under section 11.1.
(c) by repealing subsection (3) and
substituting the following:
5(3)
Despite subsection (1), a member shall not continue to contribute
to the Members’ Pension Account or acquire pensionable service
after the last day of the year in which the member attains the age
prescribed in subparagraph 8502(e)(i) of the Income Tax Regulations under the Income Tax Act (Canada), and any
benefit to which the member is entitled under this Part shall commence
to be paid not later than that date.
2 Section
10 of the Act is amended
(a) by repealing subsection (3) and
substituting the following:
10(3)
Despite subsection (1), a member who has to his or her credit eight
or more sessions of pensionable service and who ceased to be a member
before April 1, 2008, is entitled, before attaining sixty years of
age, to an annual pension in the amount determined under subsection
(4), if he or she elects to receive an annual pension in that amount.
(b) by adding after subsection (3)
the following:
10(3.1)
Despite subsection (1), a member who has to his or her credit eight
or more sessions of pensionable service and who ceases to be a member
on or after April 1, 2008, is entitled, on or after attaining fifty-five
years of age and before attaining sixty years of age, to an annual
pension in the amount determined under subsection (4), if he or she
elects to receive an annual pension in that amount.
(c) in subsection (4) by striking
out “subsection (3)” and substituting “subsection
(3) or (3.1)”;
(d) in subsection (5) in the portion
preceding paragraph (a) by striking out “subsection (3)”
and substituting “subsection (3) or (3.1)”;
(e) in subsection (6) by striking
out “subsection (3)” wherever it appears and substituting “subsection
(3) or (3.1)”.
3 The
Act is amended by adding after section 10 the following:
Maximum annual pension and
supplementary allowance
10.1 Despite
anything else in this Part or in Part III, the amount of the annual
pension to which a person who ceases to be a member on or after April
1, 2008, is entitled under section 10,
when combined with the amount of the supplementary allowance or the
reduced supplementary allowance to which the person is entitled shall
not exceed 75% of the average indemnity received by the person as
a member during or in respect of the three successive sessions during
or for which his or her indemnity was the highest.
4 Subsection
11(4) of the Act is repealed and the following is substituted:
11(4)
Despite subsection (2), a person who elects, in accordance with subsection 10(3) or (3.1), to receive an annual pension
under subsection 10(3) or (3.1)
and who has to his or her credit at least six months of pensionable
service as a minister shall be deemed to have elected to receive,
in addition to the annual pension, a minister’s pension in the
amount determined under subsection (5).
5 The
Act is amended by adding after section 11 the following:
Maximum minister’s
pension and supplementary allowance
11.1(1)
In this section, “average salary” means average salary
as defined in subsection 11(1). (traitement
moyen)
11.1(2)
Despite anything else in this Part or in Part III, the amount of
the minister’s pension to which a person who ceases to be a
member on or after April 1, 2008, is entitled under section 11, when combined with the amount of the
supplementary allowance or the reduced supplementary allowance to
which the person is entitled shall not exceed 75% of the average salary
received by the person as a minister.
6 Section
14.1 of the Act is amended by adding after subsection (1) the following:
14.1(1.1)
This section applies to a pension paid in respect of a person who
ceased to be a member before April 1, 2008.
7 The
Act is amended by adding after section 14.1 the following:
Annual adjustment of pension
- person who ceases to be a member on or after April 1, 2008
14.11(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)
14.11(2)
This section applies to a pension paid in respect of a person who
ceases to be a member on or after April 1, 2008.
14.11(3)
If a pension is paid under this Act, the amount of the pension shall
be adjusted as of the first day of each year, beginning on January
1, 2009, 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 1.05, whichever is the lesser.
14.11(4)
Despite subsection (3), the first adjustment under subsection (3)
shall be the amount determined by multiplying the increase, if any,
that would otherwise be payable under subsection (3) 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 in the year preceding the year in which the first adjustment
is made.
8 Section
14.2 of the Act is amended by adding after section (1) the following:
14.2(1.1)
This section applies to a deferred pension in respect of a person
who ceased to be a member before April 1, 2008.
9 The
Act is amended by adding after section 14.2 the following:
Annual adjustment of deferred
pension - person who ceases to be a member on or after April 1, 2008
14.3(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)
14.3(2)
This section applies to a deferred pension in respect of a person
who ceases to be a member on or after April 1, 2008.
14.3(3)
If the payment of an annual pension is deferred under subsection 10(1), the amount of the pension shall
be adjusted in accordance with subsection (5) until the time of payment
of the pension.
14.3(4)
If 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 (5) until the time of payment
of the pension.
14.3(5)
The amount of a pension referred to in subsection (3) or (4) shall
be adjusted as of the first day of each year, beginning on January
1, 2009, 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 years or 1.05, whichever is the lesser.
14.3(6)
Despite subsection (5), the first adjustment under subsection (5)
shall be the amount determined by multiplying the increase, if any,
that would otherwise be payable under subsection (5) 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.
10 Section
21 of the Act is repealed and the following is substituted:
21 A
member who has to his or her credit eight or more sessions of pensionable
service and who ceased to be a member before April 1, 2008, is entitled,
on or after attaining fifty-five years of age, to a supplementary
allowance in an amount equal to 125% of the annual pension calculated
in accordance with subsection 10(2).
11 The
Act is amended by adding after section 21 the following:
Supplementary allowance
payable at age sixty
21.1 A
member who has to his or her credit eight or more sessions of pensionable
service and who ceases to be a member on or after April 1, 2008, is
entitled, on or after attaining sixty years of age, to a supplementary
allowance in an amount equal to 50% of the annual pension calculated
in accordance with subsection 10(2).
Minimum amount of pension
and supplementary allowance
21.2(1)
The amount of the annual pension to which a person who ceases to be
a member on or after April 1, 2008, is entitled under section 10, when combined with the amount of the
supplementary allowance to which the person is entitled under section 21.1 or subsection 22(1.1)
or the amount of the reduced supplementary allowance to which the
person is entitled under subsection 22(1.2),
shall not be less than the amount of the annual pension to which the
person would have been entitled under section 10 when
combined with the amount of the supplementary allowance to which the
person would have been entitled under section 21 or
the amount of the reduced supplementary allowance to which the person
would have been entitled under subsection 22(1),
if the person had ceased to be a member before April 1, 2008, having
the same period of pensionable service to his or her credit.
21.2(2)
If there is a shortfall between the minimum amount of annual pension
and supplementary allowance or reduced supplementary allowance in
subsection (1) and the total amount of annual pension and supplementary
allowance or reduced supplementary allowance to which a person is
entitled, the shortfall shall be payable out of the Consolidated Fund.
12 Section
22 of the Act is amended
(a) by repealing subsection (1) and
substituting the following:
22(1)
Despite section 21, a member who
has to his or her credit eight or more sessions of pensionable service
and who ceased to be a member before April 1, 2008, may elect, before
attaining fifty-five years of age, to receive a reduced supplementary
allowance calculated in accordance with section 21, reduced by 5/12 of 1% for each month by which the
commencement date of the reduced supplementary allowance precedes
his or her fifty-fifth birthday.
(b) by adding after subsection (1)
the following:
22(1.1)
Despite section 21.1, a member who
has to his or her credit eight or more sessions of pensionable service
and who ceases to be a member between April 1, 2008, and October 12,
2010, both dates inclusive, may elect, on or after attaining fifty-five
years of age and before attaining sixty years of age, to receive a
supplementary allowance calculated using the following formula:
X + (Y × Z)
where
X = the supplementary allowance calculated
in accordance with section 21.1;
Y = 2% of the average indemnity
received by the person as a member during or in respect of the three
successive sessions during or for which his or her indemnity was the
highest, multiplied by the number of sessions of pensionable service
to his or her credit; and
Z = 5/36 of 1% for each month by which the
commencement date of the supplementary allowance precedes his or her
sixtieth birthday.
22(1.2)
Despite section 21.1, a member who
has to his or her credit eight or more sessions of pensionable service
and who ceases to be a member on or after October 13, 2010, may elect,
on or after attaining fifty-five years of age, to receive a reduced
supplementary allowance calculated in accordance with section 21.1, reduced by 5/12 of
1% for each month by which the commencement date of the reduced supplementary
allowance precedes his or her sixtieth birthday.
(c) in subsection (2) by striking
out the portion preceding paragraph (a) and substituting the following:
22(2)
An election made under subsection (1), (1.1) or (1.2)
(d) by adding after subsection (3)
the following:
22(4)
A supplementary allowance under subsection (1.1) or a reduced supplementary
allowance under subsection (1.2) is payable in lieu of a supplementary
allowance under section 21.1 and
a person who elects to receive a supplementary allowance under subsection
(1.1) or a reduced supplementary allowance under subsection (1.2)
is not entitled to a supplementary allowance under section 21.1 on attaining sixty years of age or
at any later time.
13 The
Act is amended by adding after section 23 the following:
Supplementary allowance
payable at age sixty
23.1 A
person referred to in section 21.1 who
has to his or her credit at least six months of pensionable service
as a minister is entitled, on or after attaining sixty years of age,
in addition to the supplementary allowance to which he or she is entitled
under section 21.1, to a supplementary
allowance in an amount equal to 50% of the minister’s pension
calculated in accordance with subsection 11(3).
14 Section
24 of the Act is repealed and the following is substituted:
24(1)
Despite section 23, a person referred
to in subsection 22(1) who elects
to receive a reduced supplementary allowance under subsection 22(1) and who has to his or her credit
at least six months of pensionable service as a minister shall be
deemed to have elected to receive, in addition to the reduced supplementary
allowance to which he or she is entitled under subsection 22(1), a reduced supplementary allowance
in an amount calculated in accordance with section 23, reduced by 5/12 of 1% for each month by which the
commencement date of the reduced supplementary allowance precedes
that person’s fifty-fifth birthday.
24(2)
Despite section 23, a person referred
to in subsection 22(1.1) who elects
to receive a supplementary allowance under subsection 22(1.1) and who has to his or her credit
at least six months of pensionable service as a minister shall be
deemed to have elected to receive, in addition to the supplementary
allowance to which he or she is entitled under subsection 22(1.1), a reduced supplementary allowance
in an amount calculated in accordance with section 23, reduced by 5/12 of 1% for each month by which the
commencement date of the reduced supplementary allowance precedes
that person’s fifty-fifth birthday.
24(3)
A reduced supplementary allowance under subsection (1) or (2) is payable
in lieu of a supplementary allowance under section 23 and a person who is deemed to have
elected to receive a reduced supplementary allowance under subsection
(1) or (2) is not entitled to a supplementary allowance under section 23 on attaining fifty-five years of age
or at any later time.
15 The
Act is amended by adding after section 24 the following:
Reduced supplementary allowance
payable before age sixty
24.1(1)
Despite section 23.1, a person referred
to in subsection 22(1.2) who elects
to receive a reduced supplementary allowance under subsection 22(1.2)
and who has to his or her credit at least six months of pensionable
service as a minister shall be deemed to have elected to receive,
in addition to the reduced supplementary allowance to which he or
she is entitled under subsection 22(1.2)
a reduced supplementary allowance in an amount calculated in accordance
with section 23.1, reduced by 5/12 of
1% for each month by which the commencement date of the reduced supplementary
allowance precedes that person’s sixtieth birthday.
24.1(2)
A reduced supplementary allowance under subsection (1) is payable
in lieu of a supplementary allowance under section 23.1 and a person who is deemed to have
elected to receive a reduced supplementary allowance under subsection
(1) is not entitled to a supplementary allowance under section 23.1 on attaining sixty years of age or
at any later time.
16 Section
25 of the Act is amended
(a) in subsection (1) by striking
out “was a member” and substituting “ceased
to be a member before April 1, 2008,”;
(b) by adding after subsection (1)
the following:
25(1.1)
If the surviving spouse or surviving common-law partner of a person
who ceases to be a member on or after April 1, 2008, is entitled to
receive a surviving spouse’s pension or surviving common-law
partner’s pension, as the case may be, under subsection 13(1) in respect of the person’s
annual pension, the surviving spouse or surviving common-law partner
is entitled to a supplementary allowance in an amount equal to 50%
of the portion of the surviving spouse’s pension or surviving
common-law partner’s pension attributable to the annual pension
of that person calculated in accordance with subsection 10(2).
17 Section
29.01 of the Act is repealed and the following is substituted:
29.01 Section 14.1 applies with the necessary modifications
to supplementary allowances and reduced supplementary allowances under
this Part paid in respect of persons who ceased to be members before
April 1, 2008.
18 The
Act is amended by adding after 29.01 the following:
Annual adjustment of supplementary
allowances and reduced supplementary allowances on or after April
1, 2008
29.011 Section 14.11 applies
with the necessary modifications to supplementary allowances and reduced
supplementary allowances under this Part paid in respect of persons
who cease to be members on or after April 1, 2008.
19 The
Act is amended by adding after section 29.02 the following:
Annual adjustment of deferred
supplementary allowance on or after April 1, 2008
29.03 Section 14.3 applies with the necessary modifications
to a supplementary allowance referred to in section 21.1 or 23.1.
Persons who again become
members on or after April 1, 2008
29.04 If
a person ceased to be a member before April 1, 2008, and again becomes
a member on or after that date, sections 14.11, 14.3, 21.1,
subsection 22(1.2), section 23.1 and subsection 24.1(1) apply with the necessary modifications
to the person’s pensionable service in respect of any period
before April 1, 2008.
No repayment of excess benefits
paid
29.05 If, between April 1, 2008, and July 31,
2011, both dates inclusive, a person receives payment of a benefit,
a supplementary allowance or a reduced supplementary allowance in
an amount in excess of the amount to which the person is entitled,
the person is not required to repay the excess amount.
Members Superannuation
Act
20 The
Members Superannuation Act, chapter M-8 of the Revised Statutes, 1973,
is amended by adding after section 22 the following:
PART 1.1
BENEFITS ON OR AFTER APRIL 1, 2008
Right of member to annual
pension
22.1(1) Despite the definition of “annual
pension” in subsection 1(1), a person who ceases to be a member
on or after April 1, 2008, and who has to his or her credit at least
ten sessions of pensionable service is entitled to an annual pension
calculated in accordance with subsection (2).
22.1(2)
The annual pension referred to subsection (1) is equal to 3% of the
average indemnity received by a member during or in respect of the
period of three successive sessions during which his or her indemnity
was highest, multiplied by the number of sessions of pensionable service
to his or her credit, but, the pension shall not exceed the indemnity
in effect at the time he or she ceases to be a member.
Adjustment of pension
22.2(1)
Despite section 10.5, if a pension is paid under this Act in respect
of a person who ceases to be a member on or after April 1, 2008, the
amount of that pension shall be adjusted as of the first day of each
year, beginning on January 1, 2009, 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 1.05, whichever is the lesser.
22.2(2)
Despite subsection (1), the first adjustment under subsection (1)
shall be the amount determined by multiplying the increase, if any,
that would otherwise be payable under subsection (1) 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 cessation
of employment or death took place in the year preceding the year in
which the first adjustment is made.
22.2(3)
In this section “pension index” has the same meaning as
it has in section 8 of the Public
Service Superannuation Act.
Minimum pension
22.3(1)
Despite section 22.1, the amount
of annual pension to which a person who ceases to be a member on or
after April 1, 2008, is entitled shall not be less than the amount
of annual pension to which he or she would have been entitled if he
or she had ceased to be a member before April 1, 2008, having the
same period of pensionable service to his or her credit.
22.3(2)
If there is a shortfall between the minimum amount of annual pension
in subsection (1) and the annual pension to which a person is entitled,
the shortfall shall be payable out of the Consolidated Fund.
No repayment of excess benefits
paid
22.4 If, between April 1, 2008, and July 31,
2011, both dates inclusive, a person receives a benefit payment in
excess of the benefit to which the person is entitled, the person
is not required to repay the excess amount.
Application of Parts 1,
2 and 3
22.5 Subject to sections 22.1 to 22.4, the provisions of Parts 1, 2 and
3 apply with the necessary modifications to a benefit paid in respect
of a person who ceases to be a member on or after April 1, 2008.
21 Subsection
23(1) of the Act is amended by striking out “sections 11 and
12” and substituting “section 11 or 22.1,
as the case may be, and section 12”.
22 The
Act is amended by adding after section 25 the following:
Annual adjustment of allowance
on or after April 1, 2008
25.1 Section 22.2 applies with the necessary modifications
to an allowance under this Part.
23 Subsection
28(1) of the Act is amended by striking out “sections 11 and
12” and substituting “section
11 or 22.1, as the case may be, and section 12”.
24 The
Act is amended by adding after section 29 the following:
Annual adjustment of allowance
on or after April 1, 2008
29.1 Section 22.2 applies with the necessary modifications
to an allowance under this Part.
Transitional provisions
25 Any person who, between April 1, 2008,
and October 12, 2010, both dates inclusive, elected to receive an
annual pension under subsection 10(3) of the Members’ Pension
Act shall be deemed to have elected to receive
(a) the annual pension under subsection 10(3.1)
of that Act as enacted by paragraph 2(b) of this amending Act; and
(b) the supplementary allowance under subsection
22(1.1) of that Act as enacted by paragraph 12(b) of this amending
Act.
26 No action or other proceeding lies or shall
be instituted against the Crown in right of the Province or any minister
as a result of the enactment of this Act.
Commencement
27(1) Paragraphs 1(a)
and (b) of this Act come into force on August 1, 2011.
27(2) Paragraph 1(c)
of this Act shall be deemed to have come into force on January 1,
2007.
27(3) The following
provisions shall be deemed to have come into force on April 1, 2008:
(a) sections 2 to
18 and 21 to 25 of this Act;
(b) sections 29.03
and 29.04 of the Members’ Pension Act as enacted by section
19 of this Act;
(c) sections 22.1
to 22.3 and section 22.5 of the Members Superannuation Act as enacted
by section 20 of this Act.