BILL 51

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( 1) Subsection 1(1) of the Members’ Pension Act, chapter M-7.1 of the Acts of New Brunswick, 1993, is amended by adding the following definition in alphabetical order:

“public service shared risk plan” means the pension plan converted to a shared risk plan in accordance with An Act Respecting Public Service Pensions; (régime à risques partagés dans les services publics)

1( 2) Section 2 of the Act is amended

(a)  in subsection (1) in the portion preceding paragraph (a) by striking out “This” and substituting “Subject to subsection (3), this”;

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

2( 3) This Act does not apply

(a)  to members who first become members on or after July 1, 2014;

(b)  subject to subsection (4), to former members who ceased to be members before July 1, 2014, and who again become members on or after July 1, 2014;

(c)  to the spouses, common-law partners and children of members referred to in paragraph (a); and

(d)  subject to subsection (4), to the spouses, common-law partners and children of former members referred to in paragraph (b).

2( 4) This Act applies to former members and their spouses, common-law partners and children with respect to pensionable service earned by the former member before July 1, 2014.

1( 3) The Act is amended by adding after section 2 the following:

Integration with public service shared risk plan

2.01( 1) Service earned by a member after September 22, 2014, shall not be credited to the member for the purpose of calculating pensionable service to determine the following amounts:

(a)  the amount of an annual pension that the member is entitled to under this Act; and

(b)  the amount of a supplementary allowance, other than a supplementary allowance payable under section 23.1, that the member is entitled to under this Act.

2.01( 2) Service earned by a minister on or after the first appointment of members of the Executive Council after September 22, 2014, shall not be credited to the minister for the purpose of calculating pensionable service to determine the following amounts:

(a)  the amount of a minister’s pension that the minister is entitled to under this Act; and

(b)  the amount of a supplementary allowance that the minister is entitled to under section 23.1.

2.01( 3) Despite subsection (1), service earned by a member after September 22, 2014, shall be included for the purpose of determining if a member has to his or her credit eight or more sessions of pensionable service and is entitled to receive an annual pension or a supplementary allowance under this Act.

2.01( 4) For the purposes of subsection (3), for each year of pensionable service that a member earns under the public service shared risk plan, the member is deemed to have earned one session of pensionable service.

1( 4) The Act is amended by adding after section 29.1 the following:

PART III.1

BENEFITS AND ALLOWANCES ON OR AFTER SEPTEMBER 23, 2014

Modification of vested or accrued benefits and allowances

29.11( 1) Despite any other provision of this Act and subject to subsection (3), on and after July 1, 2014, all benefits, including annual adjustments made to those benefits in accordance with sections 14.1 to 14.3, that were earned, accrued or vested before September 23, 2014, may be revoked, suspended, increased or reduced by Board of Management.

29.11( 2) Despite any other provision of this Act and subject to subsection (3), on and after July 1, 2014, all supplementary allowances payable under Part III that were earned, accrued or vested before September 23, 2014, may be revoked, suspended, increased or reduced by Board of Management.

29.11( 3) Despite any other provision of this Act, on and after July 1, 2014, all minister’s pensions and all supplementary allowances payable under sections 23 and 23.1 that were earned, accrued or vested before the first appointment of members of Executive Council after September 22, 2014, may be revoked, suspended, increased or reduced by Board of Management.

29.11( 4) A supplementary allowance referred to in subsection (2) or (3) includes the following:

(a)  an annual adjustment provided for in sections 29.01 to 29.03 and made in accordance with sections 14.1 to 14.3;

(b)  a reduced supplementary allowance under Part III; and

(c)  a shortfall payable in accordance with subsection 21.2(2).

29.11( 5) Board of Management may only exercise its authority under subsection (1), (2) or (3) in a manner and by an amount that is consistent with the manner in which and the amount by which the administrator of the public service shared risk plan revokes, suspends, increases or reduces base benefits or ancillary benefits under that plan.

Immunity

29.12( 1) The Crown in right of the Province, a minister of the Crown, a person designated to act on behalf of a minister, the Financial and Consumer Services Commission, the Superintendent of Pensions or an administrator or any of their officers, directors, employees or members is not liable under this Act, the regulations, the Pension Benefits Act or the regulations under that Act if the minister, person designated to act on behalf of a minister, Financial and Consumer Services Commission, Superintendent of Pensions or administrator or any of their officers, directors, employees or members exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on a report of a person whose profession lends credibility to a statement made by that person.

29.12( 2) Despite any other provision of this Act, the regulations under this Act, section 12 of the Pension Benefits Act and any contract or trust, including a document that creates or supports a pension plan or pension fund, no cause of action, claim or demand arises and no action for damages or other proceeding shall be instituted against the Crown in right of the Province, a minister of the Crown, a person designated to act on behalf of a minister, the Financial and Consumer Services Commission, the Superintendent of Pensions, an administrator, a trustee, a board of trustees, an employer, a trade union that represents its members, an employee organization that is the bargaining agent of its members or any other person, board or committee with the right to amend a pension plan or any of their officers, directors, employees, members, agents or advisers in relation to any of the following:

(a)  the enactment of, or the exercise of authority under, subsection 2.01(1) or (2) or section 29.11;

(b)  a breach of any legal duty or obligation arising out of the enactment of, or the exercise of authority under, subsection 2.01(1) or (2) or section 29.11; or

(c)  a breach of any contract or trust, including a document that creates or supports a pension plan or pension fund, arising out of the enactment of, or the exercise of authority under, this Act.

Members Superannuation Act

2 The Members Superannuation Act, chapter M-8 of the Revised Statutes, 1973, is amended by adding after section 34 the following:

PART 4

BENEFITS AND ALLOWANCES ON OR AFTER JULY 1, 2014

Modification of vested or accrued benefits

35( 1) Despite any other provision of this Act, on and after July 1, 2014, all benefits, including adjustments made to those benefits in accordance with sections 10.1 to 10.5 and 22.2 and shortfalls payable under subsection 22.3(2), that were earned, accrued or vested before July 1, 2014, may be revoked, suspended, increased or reduced by Board of Management.

35( 2) Despite any other provision of this Act, on and after July 1, 2014, all allowances payable under Parts 2 and 3, including adjustments to those allowances provided for in sections 25, 25.1, 29 and 29.1 and made in accordance with sections 10.1 to 10.5 and 22.2, that were earned, accrued or vested before July 1, 2014, may be revoked, suspended, increased or reduced by Board of Management.

35( 3) Board of Management may only exercise its authority under subsection (1) or (2) in a manner and by an amount that is consistent with the manner in which and the amount by which the administrator of the pension plan converted to a shared risk plan in accordance with An Act Respecting Public Service Pensions revokes, suspends, increases or reduces base benefits or ancillary benefits under that plan.

Immunity

36( 1) The Crown in right of the Province, a minister of the Crown, a person designated to act on behalf of a minister, the Financial and Consumer Services Commission, the Superintendent of Pensions or an administrator or any of their officers, directors, employees or members is not liable under this Act, the regulations, the Pension Benefits Act or the regulations under that Act if the minister, person designated to act on behalf of a minister, Financial and Consumer Services Commission, Superintendent of Pensions or administrator or any of their officers, directors, employees or members exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on a report of a person whose profession lends credibility to a statement made by that person.

36( 2) Despite any other provision of this Act, the regulations under this Act, section 12 of the Pension Benefits Act and any contract or trust, including a document that creates or supports a pension plan or pension fund, no cause of action, claim or demand arises and no action for damages or other proceeding shall be instituted against the Crown in right of the Province, a minister of the Crown, a person designated to act on behalf of a minister, the Financial and Consumer Services Commission, the Superintendent of Pensions, an administrator, a trustee, a board of trustees, an employer, a trade union that represents its members, an employee organization that is the bargaining agent of its members or any other person, board or committee with the right to amend a pension plan or any of their officers, directors, employees, members, agents or advisers in relation to any of the following:

(a)  the enactment of, or the exercise of authority under, section 35;

(b)  a breach of any legal duty or obligation arising out of the enactment of, or the exercise of authority under, section 35; or

(c)  a breach of any contract or trust, including a document that creates or supports a pension plan or pension fund, arising out of the enactment of, or the exercise of authority under, this Act.

Transitional provision

3 Despite the Pension Benefits Act and any contract or trust, including a document that creates or supports a pension plan or pension fund, on and after September 23, 2014, the pension plan converted to a shared risk plan in accordance with An Act Respecting Public Service Pensions applies to all members of the Legislative Assembly.

Commencement

4 This Act comes into force on July 1, 2014.