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

Legislature :
55
Session :
1
Bill No. :
49
Member :
Mr. Betts
First Reading :
2004-5-4
Second Reading :
2004-5-25
Committee of the Whole :
Amended :
Third Reading :
2004-5-25
Royal Assent :
2004-5-28
Download PDF :
Bill 49

Text of Bill :
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                           The Pension Plan for Employees of the City of Moncton Act, chapter 51 of the Acts of New Brunswick, 1998, is amended by repealing section 9 and substituting the following:



9(1)                   The City shall pay each year to the Board for the trust fund the following:



(a)               $25,000; and



(b)               6.65% of the earnings of each member, provided that the amount contributed in accordance with this paragraph shall not exceed for any one member an amount equal to 6.65% of the greater of $2,000 and the defined benefit limit for the Plan year, as defined in the Income Tax Act, divided by 2.0%.



9(2)                   The contributions made by the City to the trust fund, in accordance with subsection 9(1), in any Plan year shall not exceed the maximum amount that is permitted under the Income Tax Act for that Plan year.



9(3)                   Notwithstanding subsection 9(1), contributions made by the City in excess of the limit found in subsection 9(1) for the period since January 1, 1992, including credited interest shall be subtracted from the amount payable by the City under paragraph 9(1)(a) for the Plan year 2003.



2                           Section 10 of the Act is amended by adding after subsection (2), the following:



10(3)               Notwithstanding subsection 10(1), but subject to the limits on maximum member contributions under the Income Tax Act in each Plan year, effective January 1, 1992, the maximum a member may contribute in any Plan year shall be equal to 7.25% of the greater of $2,000 and the defined benefit limit for the Plan year, as defined in the Income Tax Act, divided by 2.0%.



10(4)               Any member contributions made in excess of the limit prescribed in subsection 10(3) for the period since January 1, 1992, are not required member contributions, shall not be locked-in and shall be refunded to the member, with credited interest, as permitted under the Income Tax Regulation 8502(d)(iv) and (v) and the Pension Benefits Act, subsection 56(2).



3                           The heading "Pre-1992 Service Maximum Pension" preceding paragraph 25(a) is repealed.



4                           The heading "Pre-1992 Service Maximum Value" preceding paragraph 25(b) is repealed.



5                           The heading "Post-1991 service Maximum Pension" preceding paragraph 25(c) is repealed.



6                           The Act is amended by repealing section 25 and substituting the following:



25(1)               Notwithstanding any other provision of this Plan to the contrary, the annual lifetime pension payable to a member under this Plan, including a pension payable to a member's spouse or former spouse pursuant to section 74, determined at the time of pension commencement, shall not exceed the years of the member's pensionable service multiplied by the lesser of



(a)               the defined benefit limit, as defined in the Income Tax Act, for the year of pension commencement; or



(b)               2% of the member's highest average indexed compensation, as defined in the Income Tax Act, in any three non-overlapping periods of 12 consecutive months;



or such greater amount as may be permitted under the Income Tax Act.



25(2)               The annual lifetime pension payable will be reduced, if the pension commencement date precedes the earlier of the day on which



(a)               the member will attain age 60,



(b)               the member's age plus continuous service would have equalled 80,



(c)                the member would have completed 30 years of continuous service, or



(d)               the member becomes totally and permanently disabled,



by 1/4 of 1% for each month by which the pension commencement date precedes that day.



25(3)               For purposes of this section, continuous service shall exclude any periods that do not qualify as early retirement eligibility service, as defined in the Income Tax Act.



25(4)               The annual lifetime pension payable in each calendar year subsequent to the year of pension commencement shall not exceed the amount determined in accordance with subsections 25(1) and 25(2) multiplied by the ratio of A to B (where such adjustment results in an increased pension) where:



(a)               A is the average Consumer Price Index, as published by Statistics Canada, for a calendar year not earlier than the calendar year in which the annual lifetime pension commences to be paid and not later than the particular year; and



(b)               B is the average Consumer Price Index, as published by Statistics Canada, for the calendar year in which the annual lifetime pension commences to be paid.



25(5)               Subsections 25(1) and 25(2) shall not apply to additional benefits payable as a result of any actuarial equivalent increase due to deferral of pension commencement after age 65 nor shall it apply to that portion, if any, of the pension derived from a member's excess contributions.



7                           The Act is amended by repealing section 78 and substituting the following:



78                        Payment of benefits shall not be made until the person entitled to payment of the benefit delivers to the Board



(a)               satisfactory proof of age of the person and other persons who may become entitled to payment of the pension and such other information as may be required to calculate and pay the benefit, and



(b)               if the benefit is payable to a member or spouse, a signed declaration of marital status.



8                           This Act will have effect on and after December 31, 1991.




 

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