BILL 16

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:

PART I

INTRODUCTION

1The Pension Plan for Employees of the City of Moncton (the ``Plan'') was established by the New Brunswick Government effective August 1, 1965.

2The Plan is amended and restated to incorporate:

(a)amendments to date; and

(b)changes required under the Pension Benefits Act, S.N.B. 1987, c.P-5.1 effective December 31, 1991.

3Unless stated otherwise, the terms of the Plan as restated shall apply to members who retire, terminate employment, or die on and after December 31, 1991 and the benefits of members who retired, terminated employment, died, or were transferred to another category of employment not covered by the Plan prior to this date shall be determined by the terms of the Plan in effect at the time of that event.

PART II

DEFINITIONS

4In this Act

``actuarial equivalent'' means a pension of an equivalent value determined using actuarial tables and such other methods and assumptions as may be adopted by the Board on the recommendation of the actuary for the purposes of the Plan, subject to any requirements of the Pension Benefits Act;

``actuary'' means a person or firm retained by the Board who is, or one of whose employees is, a Fellow of the Canadian Institute of Actuaries;

``administrator'' means the Board as described in sections 51 and 52;

``Association'' means the Civic Employees' Pension Plan Association;

``beneficiary'' means a beneficiary designated by a member in accordance with Part XI;

``Board'' means the City of Moncton Employees' Pension Board;

``City'' means the City of Moncton;

``City Council'' means the City Council of the City of Moncton;

``commuted value'' means, in relation to benefits that a person has a present or future entitlement to receive, a lump sum amount which is the actuarial present value of those benefits computed using rates of interest, the actuarial tables and other assumptions as may be adopted by the Board on the recommendation of the actuary, subject to the requirements of the Pension Benefits Act and the Income Tax Act;

``continuous service'' means an employee's uninterrupted period of employment since his last date of hire by the City, including any period of lay off, any period of temporary suspension of employment, and any period of absence due to injury in respect of which the member is entitled to Workers' Compensation benefits that is included in ``pensionable service'' under section 4;

``credited interest'' means from December 31, 1991:

(a) interest on member required contributions compounded annually and calculated:

(i)at the end of each Plan year, on the balance of contributions at the beginning of the Plan year, at a rate equal to the average of the yields of five-year personal fixed term chartered bank deposits (CANSIM Series B14045) for that Plan year, plus

(ii)at the end of each Plan year, on the balance of contributions made during the Plan year, a pro rata portion of the rate calculated in accordance with paragraph (i) above, plus

(iii)at the end of the month in which the member separates from continuous service, on the balance of contributions at the beginning of the Plan year, and the balance of contributions made during the Plan year, the appropriate pro rata portion of the rate equal to the average of the yields of five-year personal fixed term chartered bank deposits (CANSIM Series B14045) for the preceding calendar year for the portion of the Plan year before the member separates from continuous service;

(b)interest on lump sum payments out of the trust fund compounded annually and calculated from the date at which determination is required to the end of the month prior to the month of payment at a rate which is reasonably attributable to the operation of the trust fund;

``Custodial Agreement'' means any current or future agreement between the administrator and the custodian, as executed for the purposes of the Plan and as amended from time to time;

``custodian'' means any insurance company or trust company licensed to carry on business in Canada as may be appointed by the administrator from time to time;

``earnings'' means the regular and normal remuneration excluding taxable benefits, or any bonus, allowance, or payment for overtime or other such extra allowance, received by a member from the City during the Plan year, plus, with respect to periods of pensionable service during which a member does not actually receive remuneration from the company, an amount deemed to be received based on the rate of remuneration the member was receiving immediately preceding that period. However, deemed earnings shall not exceed the amount of compensation that is prescribed for this purpose by the Income Tax Act;

``effective date'' means August 1, 1965;

``employee'' means any person who is employed by the City on a permanent basis. A person employed by the City on a temporary basis will not be eligible to participate in the Plan;

``final average earnings'' means the annual average of a member's remuneration during the five years of continuous service in which the highest average is attained. If a member has not completed five years of continuous service, his final average earnings shall be based on the average of his remuneration during the years of his continuous service;

``Income Tax Act'' means the Income Tax Act, Statutes of Canada and the regulations thereunder, and where applicable includes the provisions of Information Circular 72-13R8 issued by the Department of National Revenue, as amended or replaced from time to time;

``member'' means an employee or a former employee who has become a member of the Plan pursuant to Part III and who continues to be entitled to benefits under the Plan. Member excludes a person by whom or in respect of whom benefits have been transferred under section 36;

``normal retirement date'' means the normal retirement date of a member as described in section 15;

``Pension Benefits Act'' means the Pension Benefits Act, S.N.B. 1987, c.P-5.1, Statutes of New Brunswick and the Regulations thereunder, as amended or replaced from time to time;

``pensionable service'' means the period of time during which an employee made contributions required in section 10;

For a member who is employed on a less than full-time basis, pensionable service will be determined for each plan year by multiplying the months of continuous service during which the member was a member of the Plan (rounded up to the next 1/12th) by the ratio of the member's actual equivalent days worked during the plan year to the days regularly scheduled to be worked by full-time employees;

Each period of pensionable service granted in respect of periods of unpaid leave of absence, layoff, or temporary suspensions of employment before January 1, 1991, shall be limited to a maximum full-time equivalent of two years;

The aggregate of pensionable service granted in respect of periods of unpaid leave of absence, layoff, or temporary suspensions of employment after December 31, 1990, shall be limited to a maximum full-time equivalent of 5 years, plus an additional 3 years credited in respect of absences that occur with the twelve month period which commences at the time of the birth or adoption of a child of the member;

``Plan'' means the Pension Plan for Employees of the City of Moncton, last amended and restated effective December 31, 1991 and as subsequently amended from time to time;

``Plan year'' means the calendar year;

``spouse'' means either of a man and a woman who

(a)are married to each other;

(b)are married to each other by a marriage that is voidable and has not been voided by a declaration of nullity;

(c)have gone through a form of marriage with each other in good faith that is void and have cohabited within the preceding year; or

(d)not being married to each other, have cohabited

(i)continuously for a period of not less than three years in a conjugal relationship in which one person had been substantially dependent upon the other for support, or

(ii)in a relationship of some permanence where there is a child born of whom they are the natural parents,

and have cohabited within the preceding year;

Notwithstanding the above definition, for all applications of the Income Tax Act, the definition therein shall apply;

``total and permanent disability'' means a physical or mental impairment which prevents a member from engaging in any employment for which he is reasonably suited by virtue of his education, training, or experience and that can reasonably be expected to continue for the remainder of the member's lifetime and which is certified, in writing, by a medical doctor licensed in Canada or where the member resides;

``total disability'' means a disability throughout which the member is physically or mentally impaired so that he is prevented from performing the duties of employment in which he was engaged prior to the impairment and which is certified, in writing, by a medical doctor licensed in Canada or where the member resides;

``trust fund'' means the assets held in trust under the terms of the Plan and trust agreement relating to the Plan, and into which all contributions made by members and by the employer are paid and from which all benefits of the Plan are paid;

``YMPE'' means, in respect of any Plan year, the year's maximum pensionable earnings as defined under the Canada Pension Plan.

PART III

ELIGIBILITY FOR MEMBERSHIP

Permanent Full-Time Employees

5Each full-time employee shall become a member on the first day of permanent employment with the City.

Permanent Part-Time Employees

6An employee who is employed on a less than full-time basis is eligible to become a member on the first day of the month coincident with or next following the completion of 24 months of continuous service, provided he has earned, from employment with the City, at least 35% of the YMPE in each of the two immediately preceding consecutive calendar years.

Termination of Participation not Permitted

7A member's participation in the Plan shall not be terminated while he remains an employee. In addition, a member shall not cease to be a member merely because he earns less than 35% of the YMPE in a calendar year.

RE-EMPLOYMENT

Non-Pensioners

8(1)If a former employee, other than a person described in subsection 8(2), is subsequently rehired by the City, the employee shall be treated as a new employee for purposes of eligibility for membership and benefits under the Plan, except with respect to any vested benefits which he may have to his credit in the Plan for his previous service. Any benefit earned after the date of rehire shall be calculated based on continuous and pensionable service after that date.

Pensioners

8(2)If a former employee who has commenced to receive a pension from the Plan is re-employed by the City, he shall:

(a)continue to receive his pension; and

(b)not accrue further benefits during the period of re-employment.

PART IV

CONTRIBUTIONS

City Contributions

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

(a)$25,000;

(b)6.65% of the earnings of each member.

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

Required Member Contributions

10(1)Subject to section 37, each member who is an employee shall contribute, by regular payroll deduction, until his retirement or prior termination of employment, 7.25% of his earnings provided that a member's contributions for any Plan year, under this section 10, shall not exceed the maximum amount permitted under the Income Tax Act for that Plan year.

10(2)No member contributions shall be made pursuant to subsection 10(1) on and after January 1, 1988 if a member has more than 35 years of pensionable service.

Increase in Contributions

11(1)If, on the advice of the actuary, the contributions described in paragraph 9(1)(a) and subsection 10(1) are not sufficient to provide the minimum funding, as required by the Pension Benefits Act, of the benefits accruing in the Plan year and any unfunded actuarial liability or solvency deficiency that may exist, then the City's and the members' required contributions shall be increased in equal amounts (as expressed as a percentage of member earnings) so that the contributions are sufficient to provide the minimum funding required.

11(2)Notwithstanding subsection 11(1), members' required contributions shall not be increased unless the Board gives to the Association written notice of such increase at least 90 days prior to the scheduled increase (for the purposes of this subsection 11(2), the ``notice period''). During the notice period:

(a)the City shall make the contributions sufficient to cover its own increase in the member contributions; and

(b)the required member contributions shall not be changed.

11(3)At the end of the notice period, and notwithstanding section 12, the required member contributions and City contributions shall be adjusted such that the total of the increase in required member contributions and the total of the increase in City contributions during the three year period commencing at the beginning of the notice period are equal.

Benefit Improvements and Decrease in Contributions

12(1)If,

(a)on the advice of the Actuary, and taking into account any funding excess that may exist, the contributions described in paragraph 9(1)(a) and subsection 10(1) are more than sufficient to fund the benefits accruing in the Plan year and provide at least the minimum funding, as required by the Pension Benefits Act, of any unfunded actuarial liability or solvency deficiency that may exist, or

(b)the contributions described in paragraph 9(1)(a) and subsection 10(1) would not be eligible contributions under the Income Tax Act

then the Board may make improvements to the benefits provided to members, in a manner permitted by the Pension Benefits Act and within any limits prescribed by the Income Tax Act.

12(2)If, after benefits have been improved to the limits prescribed by the Income Tax Act, the condition outlined in paragraph 12(1)(b) continues to exist, the required member contributions under section subsection 10(1) may be reduced, but not by more than an amount that will cause the condition in paragraph 12(1)(b) to no longer exist.

12(3)If, after benefits have been improved, and members required contributions have been reduced to zero, the condition in paragraph 12(1)(b) continues to exist, then the City contributions under section 9 may be reduced, but not by more than an amount that will cause the condition in paragraph 12(1)(b) to no longer exist.

Return of Contributions

13On and after January 1, 1992, an amount contributed by a member under section 10, or the City under section 9, may be refunded at any time to the member or City as applicable where such action is required to avoid the revocation of registration of the Plan under the Income Tax Act, subject to the approval of the Superintendent of Pensions of New Brunswick.

Remittance of Contributions

14The City shall remit to the Board, for deposit to the trust fund, all City contributions within 30 days, and all sums received by the City from a member or deducted from a member's pay within 15 days, following the month for which such contributions are payable or in which such sums are received or deducted.

PART V

RETIREMENT DATES

Normal Retirement Date

15For purposes of the Plan, normal retirement date means the date on which the member attains age 65.

Early Retirement Date

16If the continuous service of a member who has completed five years of continuous service and attained age 55, or who has completed ten years of continuous service and is between age 50 and 55, terminates before his normal retirement date,

(a)the member shall be considered to have retired early for the purposes of the Plan on his early retirement date which is the day on which the member's continuous service terminates; and

(b)the member shall be entitled to receive an early retirement pension.

Postponed Retirement Date

17If, pursuant to provincial law and the City's policy concerning retirement, a member has remained in employment after his normal retirement date, the member may retire on any day after his normal retirement date but shall in any event be deemed to retire for the purposes of the Plan not later than:

(a)prior to January 1, 1992, the last day of the month before the member attains age 71;

(b)after 1991 and prior to 1997, the end of the calendar year in which the member attains age 71; and

(c)after 1996, the end of the calendar year in which the member attains 69 years of age, or such other time as is acceptable under the Income Tax Act.

Disability Retirement Date

18If a member with ten years of continuous service leaves employment with the City before his normal retirement date as a result of his total and permanent disability,

(a)the member shall be considered to have retired early for the purposes of the Plan on his disability retirement date which is the date on which the member's continuous service terminates, which shall not be later than the last day of pensionable service granted under section 4; and

(b)the member shall be entitled to receive a disability pension.

PART VI

RETIREMENT BENEFITS

Normal Retirement Pension

19A member who retires on his normal retirement date shall be entitled to an annual pension, commencing on his normal retirement date, in an amount equal to 2% times the number of years of pensionable service, multiplied by the member's final average earnings.

Early Retirement Pension

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

(a)a pension, commencing on his early retirement date. The member's pension shall be

(i)the pension calculated according to the formula:

A.2% times the years of pensionable service on or after December 31, 1991 times the member's final average earnings, plus

B.if the member has at least ten years of continuous service, 2% times the years of pensionable service prior to December 31, 1991 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

(iii)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 paragraph 20(a)(i) based on his pensionable service to his early retirement date.

Special Early Retirement Pension

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

(a)age 60; or

(b)age 55 and the sum of the member's age and pensionable service total at least 85,

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.

Postponed Retirement Pension

22A member who remains in the employ of the City beyond his normal retirement date shall continue to accrue benefits during his continued employment and will receive a pension commencing on his postponed retirement date calculated according to the formula in section 19 based on pensionable service up to his postponed retirement date.

Disability Pension

23A member who retires early pursuant to section 18 shall receive a pension, commencing on his disability retirement date. The member's pension shall be the pension calculated according to the formula in section 19 based on pensionable service to his disability retirement date. This disability pension shall be payable in the form of pension described under sections 29 or 30, as applicable.

Minimum Benefit with respect to Required Contributions

24(1)Contributions made before December 31, 1991: Upon retirement of a member, the commuted value of the member's pension for pensionable service prior to December 31, 1991 under this Part VI shall be at least equal to the member's required contributions made to the Plan prior to December 31, 1991 plus credited interest, in accordance with the Pension Benefits Act.

24(2)Contributions made on and after December 31, 1991: if, upon retirement under this Part VI the member's required contributions made on and after December 31, 1991, plus credited interest to the date of the determination, exceed 50% of the commuted value of the portion of a member's pension comprised of paragraphs (a) and (b) as follows:

(a)the pension accrued or granted to him under Part VI for pensionable service on and after December 31, 1991, together with

(b)other benefits accrued or granted to him on and after December 31, 1991,

the member will be entitled to a refund of the excess.

Maximum Pension

25Notwithstanding any other provision of this Plan to the contrary:

Pre-1992 Service Maximum Pension

(a)The annual lifetime pension payable to a member under this Plan in respect of pensionable service prior to January 1, 1992, including a pension payable under any other registered pension plan sponsored by the City and any pension payable to a member's spouse or former spouse pursuant to section 74, at retirement, disability, termination of employment, or termination of the Plan, shall not exceed the member's years of pensionable service prior to January 1, 1992 to a maximum of 35 years multiplied by the lesser of:

(i)$1,715; and

(ii)2% of the average of the member's best three consecutive years' earnings from the City,

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

This paragraph 25(a) shall not apply to annual pension benefits of $300 or less per year of pensionable service nor shall it apply to that portion, if any, of the pension derived from a member's excess contributions.

Pre-1992 Service Maximum Value

(b)The value of an annual pension benefit provided upon early retirement under this Plan in respect of pensionable service prior to January 1, 1992 shall not exceed the value of the maximum pension as set out in paragraph 25(a) payable at the earliest of age 60, normal retirement date, or the age at date of disability, in the form of a single life annuity guaranteed for 10 years.

Post-1991 service Maximum Pension

(c)The annual lifetime pension payable to a member under this Plan in respect of pensionable service after December 31, 1991, 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 on and after January 1, 1992 multiplied by the lesser of:

(i)$1,722.22; and

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

or such greater benefit as may be permitted under the Income Tax Act,

reduced, if the pension commencement date precedes the earlier of the day on which:

(iii)the member will attain age 60;

(iv)the member's age plus continuous service would have equalled 80;

(v)the member would have completed 30 years of continuous service; and

(vi)the member becomes totally and permanently disabled,

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

(d)Paragraph (c) 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.

Pension Adjustment

26In no event shall the benefit accrued in a Plan year, under section 19, result in a pension adjustment (as defined under the Income Tax Act) or any other limits being exceeded, as required by the Income Tax Act.

Reduction of Benefits

27The Plan may, at any time, be amended by the Board to reduce the benefits provided under this Part VI where such action is required to avoid the revocation of registration of the Plan under the Income Tax Act.

PART VII

FORM OF PENSION BENEFITS

Pension Calculation According to Normal Form

28The amount of pension provided under sections 19, 20, 21, 22 or 23 is calculated according to the normal form of pension and is payable in that normal form of pension unless the member elects an optional form of pension.

Normal Form of Pension Benefit for a Member Without a Spouse

29The normal form of pension for a member who does not have a spouse on the date on which pension payments commence is an annuity payable in semi-monthly instalments for the life of the member and in any event for a period of not less than 60 months. If the member dies before receiving 120 semi-monthly payments, the member's beneficiary is entitled to receive the value of the remaining balance of the 120 semi-monthly payments.

Normal Form of Pension Benefit for a Member With a Spouse

30The normal form of pension for a member who has a spouse on the date on which pension payments commence is a joint and survivor annuity which is payable in semi-monthly instalments for the life of the member and payable after the member's death to said spouse for the spouse's life in semi-monthly instalments equal to 60% of the amount of each semi-monthly instalment paid during the life of the member. If the member and the spouse both die before 120 semi-monthly payments are made, the member's beneficiary shall receive 60% of the amount of the member's semi-monthly instalment until 120 semi-monthly payments have been made in total.

Election of Optional Form

31A member who does not have a spouse, or a member who has a spouse and who

(a)delivers to the Board, within the twelve month period immediately preceding the commencement of the member's pension, a written waiver of the normal form of pension described in section 30 in accordance with the Pension Benefits Act, and

(b)such waiver is not revoked by the member or the member's spouse prior to the commencement of the pension

may elect to receive a pension in an alternate form to the normal form of pension as described in sections 29 or 30.

Optional Form of Pension Benefit

32The optional form of pension benefit elected by the member shall be at least equal to the actuarial equivalent of the normal form of pension payable according to section 29 and shall comply with the Income Tax Act.

PART VIII

TERMINATION BENEFITS

Termination Benefits for Pensionable Service on and after December 31, 1991

33(1)A member who terminates continuous service, for any reason other than death, disability as described in Part IX, or retirement as described in Part V, before completing five years of continuous service shall receive a lump sum refund of the member's required contributions made to the Plan on and after December 31, 1991, plus credited interest.

33(2)A member who terminates continuous service, for any reason other than death, disability as described in Part IX, or retirement as described in Part V, after completing five years of continuous service is not permitted to receive the lump sum refund of the member's required contributions made under the Plan on and after December 31, 1991 described in subsection 33(1). In lieu thereof, the member is entitled to receive a deferred pension, commencing at the member's normal retirement date, in the amount accrued or granted to him under section 19 for pensionable service on and after December 31, 1991 or otherwise accrued or granted to him on and after December 31, 1991.

33(3)If the member's required contributions made on or after December 31, 1991 plus credited interest to the date of termination of continuous service exceeds 50% of the commuted value of the deferred pension described in subsection 33(2), the member will be entitled to a refund of the excess.

Termination Benefit for Pensionable Service Before December 31, 1991

34A member who terminates continuous service, for any reason other than death, disability as described in Part IX, or retirement as described in Part V, is entitled to receive a refund of his required contributions made to the Plan before December 31, 1991, plus credited interest.

Early Commencement of Deferred Pension

35(1)A member who terminates employment with the City on or after December 31, 1991 before attaining age 55 and who is entitled to receive a deferred pension under Part VIII may elect to commence receiving this pension on the first day of any month on or following the attainment of age 55 and prior to his normal retirement date. The amount of this pension shall be the actuarial equivalent of the deferred pension otherwise commencing on his normal retirement date.

35(2)Notwithstanding 35(1), in no event shall the amount of such pension be greater than the limits imposed by the Income Tax Act.

Transfer of Value of Deferred Pension

36(1)Subject to subsections 36(2) and 36(3), a member who terminates continuous service, for any reason other than death, disability, or retirement, on and after December 31, 1991 and before attaining age 55 may elect to have the commuted value of the deferred pension to which the member is entitled under Part VIII, with credited interest:

(a)transferred to another pension plan, provided that the administrator of the pension plan agrees to accept the transfer;

(b)transferred to a locked-in retirement account or life income fund as prescribed in the Pension Benefits Act; or

(c)applied to purchase a deferred life annuity from an insurance company licensed to transact business in Canada provided payment of the annuity will not commence before the earliest date on which the member was entitled to retire under the Plan.

Upon such a transfer or purchase, the member will cease to be a member and will have no further entitlement under the Plan.

36(2)The Board shall not permit a transfer or purchase under subsection 36(1) unless the Board is satisfied that:

(a)the transfer or purchase is in accordance with the Pension Benefits Act; and

(b)any restrictions in the Pension Benefits Act with regard to the solvency of the Plan have been met.

36(3)Amounts transferred in accordance with subsection 36(1) on and after January 1, 1989 shall not exceed the maximum amount prescribed under the Income Tax Act, and the excess of the commuted value, plus credited interest, if any, over the amount transferred shall, at the discretion of the Board, be paid to the member or remain to the member's credit in the Plan as permitted under the Income Tax Act and the Pension Benefits Act.

36(4)A member who is entitled to a refund of contributions under Part XIII may elect to transfer the refunded amount to a registered retirement savings plan.

PART IX

DISABILITY ACCRUAL

Member Required Contributions During Disability

37A member is exempted from the requirement to make contributions to the Plan during a period of total disability and while in receipt of benefits from the long-term disability insurance plan sponsored by the City.

Continuous Service and Pensionable Service During Disability Period

38Each year, or part thereof, during the period of total disability, while in receipt of benefits from the long-term disability insurance plan sponsored by the City and while not in receipt of disability pension under section 23, counts as a year, or part thereof, of continuous service and pensionable service for the member and the benefit is determined based on the provisions of the Plan, as modified by section 39, that are in effect at the date specified in either section 40 or 41.

Remuneration During Disability Period

39For the purpose of disability accrual as described in section 38, the member's remuneration during the period of disability are deemed to be equal to the rate of remuneration received by the member immediately before the commencement of his disability.

Disability Ending Before Normal Retirement

40(1)If the member, for any reason, ceases to receive benefits from the long-term disability insurance plan sponsored by the City before the member's normal retirement date and the member returns to active employment with the City within 30 days of the date that the member ceased to receive benefits from the long term disability insurance plan, the member's pension is calculated based on the provisions of the Plan in effect as at the date of his subsequent termination, death, or retirement.

40(2)If the member, for any reason, ceases to receive benefits from the long-term disability insurance plan sponsored by the City before the member's normal retirement date and the member does not return to active employment with the City within 30 days of the date that the member ceased to receive benefits from the long term disability insurance plan, the member will be deemed to have terminated his employment for purposes of the Plan as of the date that he ceases to receive benefits from the long-term disability insurance plan and the member's pension is calculated based on the provisions of the Plan in effect as at the date of his deemed termination.

Disability Continuing Until Normal Retirement

41A member whose period of total disability continues and who continues to receive benefits from the long term disability insurance plan sponsored by the City until the member's normal retirement date is deemed to retire on the member's normal retirement date and the member's pension is calculated based on the provisions of the Plan in effect as at the date of his deemed retirement.

PART X

DEATH BENEFITS

Death Benefit While in Service but Before Entitlement for Immediate Pension

42If a member dies while in service but before the member is entitled to an immediate pension as described in Part V, the member's spouse, or if no spouse, the member's beneficiary shall receive:

(a)Death benefit for pensionable service before December 31, 1991:

A refund of the member's contributions made to the Plan before December 31, 1991 plus credited interest; and

(b)Death benefit for pensionable service on and after December 31, 1991:

(i)For a member who has not completed five years of continuous service, a refund of the member's contributions made to the Plan on or after December 31, 1991 plus credited interest; or

(ii)For a member who has completed five years of continuous service, the greater of:

A.a refund of the member's contributions made to the Plan on or after December 31, 1991 plus credited interest; or

B.60% of the commuted value of the member's pension accrued and granted on and after December 31, 1991.

Death Benefit After Entitlement for Immediate Pension

43The death benefit for a member who dies while in service and after entitlement for immediate pension as described in Part V is:

(a)For a member who does not have a spouse on the member's date of death, the greater of:

(i)a refund of the member's contributions made to the Plan before December 31, 1991 plus credited interest, plus 60% of the commuted value of the member's pension accrued and granted on and after December 31, 1991; or

(ii)60% of the commuted value of the pension the member would have been entitled to if the member had retired immediately prior to dying.

(b)For a member who has a spouse on the member's date of death, a spousal pension equal to 60% of the pension the member would have been entitled to if the member had retired immediately prior to dying. This spousal pension shall be paid for the lifetime of the spouse in the form described in section 29.

Optional Form on Death

44The spousal pension may not be paid under the optional form in section 31.

Refund of Excess Contributions

45In addition to any other death benefit payable under Part X for a member who dies while in service, the member's spouse, or if no spouse, the member's beneficiary, is entitled to receive a refund of any excess contributions made under the Plan determined under subsection 24(2) or 33(3) as if the member had retired or terminated employment, as the case may be.

Death of a Former Member Entitled to a Deferred Pension

46If a member who has terminated employment and is entitled to a deferred pension dies, the member's spouse, or if no spouse, the member's beneficiary shall receive the commuted value of the member's deferred pension.

Death Benefit After Commencement of Pension

47Any death benefit payable upon the death of a member who has commenced to receive his pension is determined in accordance with the form of the pension being paid to the member pursuant to Part VII.

PART XI

DESIGNATION OF BENEFICIARY

Designation of Beneficiary

48A member may designate, by written notice delivered to the Board, a beneficiary to receive any benefits payable on the death of the member. A member may revoke or amend such designation in the same manner at any time, subject to any applicable laws governing the designation of beneficiaries.

No Beneficiary

49If a member fails to validly designate a beneficiary, or if the beneficiary predeceases the member, any benefits payable to the member's beneficiary shall be paid in a lump sum to the estate of the member.

Death of Beneficiary

50If a beneficiary, as a result of a member's death, is entitled to payments under the Plan and if the beneficiary dies before receiving any or all of the payments due to him, the commuted value of the remainder of the payments will be paid in a lump sum to the estate of the beneficiary.

PART XII

ADMINISTRATION

Responsibility for Administration

51The administrator of the Plan shall be the Board which shall be responsible for all matters relating to the administration of the Plan and may delegate such matters as it deems appropriate to be performed by one or more agents. The Board shall decide conclusively all matters relating to the operation, interpretation, and application of the Plan.

Rules for Administration

52The Board may enact rules and regulations relating to the administration of the Plan to carry out the terms thereof and may amend such rules and regulations from time to time. Such rules and regulations shall not conflict with any provision of this Plan.

Members of the Board

53(1)The mayor of the City of Moncton shall be a member and chairman of the Board.

53(2)The City Council shall appoint two councillors of the City of Moncton to serve on the Board for a term of two years each and they shall be eligible for appointment of one or more further terms of two years.

53(3)The Association shall appoint two of its members who are permanent employees to serve on the Board for a term of two years each, and they shall be eligible for appointment for one or more further terms of two years and notice of such appointments shall be certified to the chairman of the Board by the secretary of the Association.

53(4)The City of Moncton Retired Pensioners Association shall appoint a representative to serve on the Board for a term of two years and the representative shall be eligible for appointment for one or more further terms of two years.

53(5)Each Board member described in this section 53 shall be entitled to vote at meetings of the Board.

New Board Members

54(1)A vacancy shall occur in the membership of the Board when a member of the Board dies or ceases to be either mayor, a councillor, or a permanent employee of the City or whenever the Board declares a vacancy to exist by reason of a member being absent from three consecutive meetings of the Board.

54(2)When a vacancy occurs in the membership of the Board, there shall be appointed by the Association, the City of Moncton Retired Pensioners Association, or the City Council, as the case may be, from among their respective memberships, a successor to fill such vacancy for the unexpired term of this predecessor.

Quorum

55Four members of the Board shall constitute a quorum.

Vice-Chairman of Board

56The Board may by majority vote elect one of its members to be vice-chairman thereof.

Secretary-Treasurer of Board

57(1)A permanent employee of the City shall be appointed by the Board to act as secretary-treasurer of the Board and shall be given such remuneration as agreed on between the employee and the Board. The term of appointment of the employee as secretary-treasurer shall be for a period of two years or until his or her successor is appointed by the Board.

57(2)The secretary-treasurer shall be bonded in such amount as may be fixed by the Board, the premiums for such bond shall be paid from the fund, and the bond shall be held by the mayor of the City.

57(3)The secretary-treasurer shall keep a record of all meetings of the Board and shall prepare statements relative to the fund and keep a record of all employees contributing to the fund, setting opposite each name the amount of assessed and deducted from the salary of each employee.

57(4)The secretary-treasurer shall furnish the auditors with all records of the Board as soon as possible after the first day of each year, and perform such other duties as the Board may direct.

57(5)The secretary-treasurer shall receive all monies so assessed and deducted from each employee's salary or payable to the fund from the City, and shall deposit same in accordance with the Funding Agreement.

Payments from Trust Fund

58All withdrawals made on the fund shall be by cheque or other document, signed by the chairman of the Board and countersigned by the secretary-treasurer of the Board.

Records and Accounts

59All records and accounts of the Board shall be audited annually by an auditor appointed by the Board and copies of the statements and reports of such auditor showing the condition of the trust fund shall be delivered to the City Council and the Association.

Plan Summary

60The Board shall provide each employee with a written explanation of the terms and conditions of the Plan and amendments thereto applicable to him, together with an explanation of the rights and duties of the employee with reference to the benefits available to him under the terms of the Plan.

Notice of Amendment

61The Board shall provide a notice and written explanation of an amendment to the Plan to each member, or any other person entitled to payment from the trust fund, who is affected by the amendment, within the applicable time period prescribed under the Pension Benefits Act.

Annual Statement

62The Board shall provide annually to each active member a written statement containing the information prescribed under the Pension Benefits Act in respect of the member's benefits under the Plan.

Statement on Termination of Employment or Membership

63When a member of the Plan terminates employment or otherwise ceases to be a member, the Board shall give to the member, or to any other person who becomes entitled to a benefit under the Plan, a written statement setting out the information prescribed under the Pension Benefits Act in respect of the benefits of the member or other person.

Inspection of Documents

64The Board shall make available for inspection by eligible individuals the documents and information concerning the Plan and the trust fund as prescribed under the Pension Benefits Act.

PART XIII

TRUST FUND

Trust Fund Administration

65The trust fund shall be administered by the custodian in accordance with the Custodial Agreement.

Expenses

66All reasonable fees and expenses related to the administration of the trust fund and the Plan may be paid from the trust fund, including actuarial, auditing and legal fees, and other expenses which the Board deems necessary for the proper administration of the Plan.

Investments

67The Board shall direct the investment of the trust fund in accordance with the provisions of the Pension Benefits Act.

Semi-Monthly Pension Payments

68Pensions payable under the Plan shall be paid on a semi-monthly basis.

PART XIV

FUTURE OF THE PLAN

Continuation of the Plan

69The Board intends to maintain the Plan indefinitely, but reserves the right to amend the Plan. The Board reserves the right to discontinue the Plan upon unanimous agreement by all Board members.

Amendment to the Plan

70(1)No amendment shall operate to reduce the pension benefits which have accrued to any member before the date of such amendment, based on remuneration up to the date of the amendment.

70(2)Where an amendment results in a certifiable past service pension adjustment (as defined under the Income Tax Act) in respect of a member, the amendment shall not apply to such member prior to certification of the past service pension adjustment in accordance with the Income Tax Act.

Termination of the Plan

71(1)If the Plan is wound up, in whole or in part, the assets of the trust fund shall first be allocated for provision of benefits in accordance with the terms of the Plan, the Pension Benefits Act, the Income Tax Act, and any other applicable legislation.

71(2)If the Plan is wound up, in whole or in part, the City shall not make further contributions to the trust fund in respect of the Plan or the portion of the Plan being wound up, as applicable except for amounts due, or that have accrued up to the effective date of the wind-up and have not been paid into the trust fund as required by the Plan and the Pension Benefits Act.

71(3)If the Plan is wound up, in whole or in part, and the assets in the trust fund are not sufficient to pay all the benefits under the Plan or the portion of the Plan being wound up, as applicable, the benefits payable shall be reduced in the manner prescribed by the Pension Benefits Act.

Wind-Up Surplus

72If, after provision for benefits payable to or in respect of members on the wind-up, in whole or in part, of the Plan, assets remain in the trust fund or the part of the trust fund affected by a partial wind-up, such assets shall be used first to make improvements to the benefits provided to members, in a manner determined by the Board and permitted by the Pension Benefits Act, and up to the maximum prescribed by the Income Tax Act. Any remaining assets shall be shared among the members, in lump sum cash amounts, in a manner determined by the Board and permitted by the Pension Benefits Act, and subject to the requirements of the Income Tax Act.

Part XV

GENERAL PROVISIONS

Non-Alienation

73Except as specified in section 74, money payable under the Plan is subject to the following restrictions:

(a)Any transaction that purports to assign, charge, anticipate, surrender, or give as security any right of a person under the Plan or money payable under the Plan shall not be enforceable against the Plan; and

(b)Money payable under the Plan is exempt from execution, seizure, or attachment.

Alienation of Benefits on Marriage Breakdown

74(1)Payments under the Plan are subject to execution, seizure, or attachment in satisfaction of an order for support or maintenance enforceable in New Brunswick or another relevant jurisdiction, in accordance with the Pension Benefits Act.

74(2)Upon the breakdown of the spousal relationship, a member may assign all or a portion of his benefits and rights under the Plan to his spouse or former spouse, within the limits imposed by the Pension Benefits Act.

Non-Commutation of Pensions

75A pension or deferred pension payable under this Plan shall not be capable of being commuted, except as permitted in accordance with the Pension Benefits Act in the event that the life expectancy of the member is likely to be considerably shortened by reason of his mental or physical disability.

No Right to Employment

76The Plan shall not be construed to create or enlarge any right of any person to remain in the employment of the City, nor shall it interfere in any manner with the right of the City to discharge any person.

No Right to City Contributions

77Contributions made by the City shall not constitute an enlargement of the amount of any benefit defined in the Plan and shall not at any time create for any person other than the City any right, title, or interest in the assets of the City or the trust fund, except as specifically provided in the Pension Benefits Act.

Information to be Provided Before Trust Fund Pays Benefits

78Payment 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,

provided that after late delivery of the required documents and information, payment shall be made retroactively to the date of entitlement.

City Records

79Wherever the records of the City are used for the purposes of the Plan, such records shall be conclusive of the facts with which they are concerned, unless and until they are proven to be in error.

Severability

80If any provision of the Plan is held to be invalid or unenforceable by a court of competent jurisdiction, its invalidity or unenforceability shall not affect any other provision of the Plan and the Plan shall be construed and enforced as if such provision had not been included therein.

Captions and Headings

81The captions, headings, and table of contents of this Plan are included for convenience of reference only and shall not be used in interpreting the provisions of this Plan.

Construction

82(1)The Plan is intended to constitute an employee's pension plan qualified for registration under the Pension Benefits Act and the Income Tax Act.

82(2)Any provision of the Custodial Agreement that is inconsistent with the terms of the Plan shall, to the extent of the inconsistency, be of no force or effect.

82(3)The Plan shall be governed and construed in accordance with the laws of the Province of New Brunswick.

Currency

83All benefits payable under the Plan shall be paid in the lawful currency of Canada.

PART XVI

BENEFIT INCREASES

Pension Increases for Retired members

84(1)The City may, prior to January 1, 1992, increase pensions that are in the course of payment to retired members. The aggregate percentage increase for a member shall not exceed the aggregate percentage increase in the Consumer Price Index from the member's retirement date, and no part of the increase shall be payable to a member before the later of:

(a)the date the member attains age 60; and

(b)the date the member retires.

84(2)The City may, after December 31, 1991, increase pensions that are in the course of payment to retired members. The aggregate percentage increase for a member shall not exceed the percentage increase in the Consumer Price Index from the member's retirement date.

85The City of Moncton Pension Act, 1990, chapter 69 of the Acts of New Brunswick, 1990, and all headings pertaining thereto, are repealed.


Last Modified: 11:28am , December 10, 1997