BILL 43

An Act to Amend the Pension Plan for Employees of the City of Moncton Act

WHEREAS the City of Moncton Employees’ Pension Board prays that it be enacted as hereinafter set forth;

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

1                 Section 4 of the Pension Plan for Employees of the City of Moncton Act, chapter 51 of the Acts of New Brunswick, 1998, is amended by repealing the definition “final average earnings” and substituting the following:

“final average earnings” means

(a)          for a member who terminated continuous service before January 1, 2001, the annual average of the member’s remuneration during the five years of continuous service in which the highest average is attained,

(b)          for a member who terminated continuous service on or after January 1, 2001, but before January 1, 2015, the annual average of the member’s remuneration during the three years of continuous service in which the highest average is attained,

(c)          subject to paragraph (d), for a member who terminated continuous service on or after January 1, 2015, the annual average of the member’s remuneration during the five years of continuous service in which the highest average is attained, and

(d)          for a member whose highest annual average remuneration for three years of continuous service prior to January 1, 2015, is higher than the amount calculated pursuant to paragraph (c), the annual average of the member’s remuneration during the three years of continuous service prior to January 1, 2015, in which the highest average is attained,

but if a member has not completed the necessary years of continuous service, as applicable, the final average earnings shall be based on the average of the member’s remuneration during the years of continuous service;

2 The Act is amended by repealing section 20 and substituting the following:

20               A member who retires early pursuant to section 16 may elect to receive either:

(a)          a pension, commencing on his early retirement date, or any other date thereafter but prior to his normal retirement date. The member’s annual pension shall be equal to:

(i)      2% times the years of pensionable service times the member’s final average earnings,

reduced by:

(ii)    3.5% for each year by which the pension commencement date precedes the member’s age 60 provided that the member has attained age 48 before January 1, 2015, or

(iii)   3.5% for each year by which the pension commencement date precedes the member’s age 65 provided that the member has not attained age 48 before January 1, 2015,

provided that the member’s pension is at least the actuarial equivalent of the deferred pension under paragraph 20(b); or

(b)          a deferred pension, commencing on his normal retirement date, calculated according to the formula in sub-paragraph 20(a)(i) based on his pensionable service to his early retirement date.

3 The Act is amended by repealing section 21 and substituting the following:

21               A member who retires early pursuant to section 16 and who has attained either:

(a)          age 60, provided the member has attained age 48 before January 1, 2015;

(b)          age 55 and the sum of the member’s age and pensionable service total at least 85 for a member whose early retirement date is before January 1, 2001;

(c)          age 50, provided the member has attained age 48 before January 1, 2015, and the sum of the member’s age and pensionable service total at least 80 for a member whose early retirement date is on or after January 1, 2001; or

(d)          age 55, provided the member has not attained age 48 before January 1, 2015, and the sum of the member’s age and pensionable service total at least 85 for a member whose early retirement date is on or after January 1, 2015,

is eligible to receive the pension, commencing on the member’s early retirement date, calculated according to the formula in section 19 based on the member’s pensionable service to his early retirement date.

4                 The Act is amended by repealing subsection 57(1) and substituting the following:

57(1)          The Board shall appoint for a two-year term and provide for the remuneration of a secretary-treasurer, who may serve multiple two-year terms at the discretion of the Board.

5 The Act is amended by repealing subsection 75(3).

6 This Act shall be deemed to have come into force on January 1, 2015.