BILL 13 - An Act to Amend the Membersí Pension Act

BILL 13

An Act to Amend the Membersí Pension Act

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

1 Subsection 1(1) of the Membersí Pension Act, chapter M-7.1 of the Acts of New Brunswick, 1993, is amended by repealing the definition "pensionable service" and substituting the following:

"pensionable service" means any period of service to the credit of a member or minister under this Act that may be used in calculating a benefit if the member or minister has received remuneration for such period in accordance with subparagraph 8503(3)(a)(i) of the Income Tax Regulations under the Income Tax Act (Canada), and, where applicable, includes any period of service to the credit of the member or minister under the Members Superannuation Act that may be used in calculating a benefit if the member or minister has received remuneration for such period in accordance with subparagraph 8503(3)(a)(i) of the Income Tax Regulations under the Income Tax Act (Canada);

2 Section 5 of the Act is amended

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

5(2.1) For the purposes of subsection (2), the period of time for which the portion of the indemnity was paid must be a qualifying period in accordance with paragraph 8507(3)(a) of the Income Tax Regulations under the Income Tax Act (Canada).

(b) in subsection (3) by striking out "seventy-one" and substituting "sixty-nine".

3 Section 6 of the Act is amended

(a) by repealing subsection (3) and substituting the following:

6(3) A member who has ceased to be a member, has received a return of contributions under the Members Superannuation Act and again becomes a member may elect, within one year after again becoming a member, to reinstate the pensionable service in respect of which the member received the return of contributions, if the member agrees to pay an amount equal to that return of contributions together with interest from the time of payment of the return of contributions until the time of the election.

(b) by adding after subsection (3) the following:

6(4) When a member who has ceased to be a member and is entitled to an annual pension under the Members Superannuation Act again becomes a member, the memberís entitlement to the annual pension under the Members Superannuation Act shall cease and the pensionable service in respect of which the annual pension was authorized shall be added to the memberís pensionable service as a member under this Act.

4 Section 7 of the Act is amended

(a) in subsection (1)

(i) in the portion preceding paragraph (a) by striking out "6(1)" and substituting "6(1) or (3)";

(ii) in paragraph (b) by striking out "6(1)" and substituting "6(1) or (3)";

(b) in subsection (2) in the portion preceding paragraph (a) by striking out "6(1)" and substituting "6(1) or (3)".

5 Section 8 of the Act is amended

(a) by adding after subsection (1) the following:

8(1.1) An amount referred to in subsection (1) shall not exceed eligible contributions as provided for in subsection 147.2(2) of the Income Tax Act (Canada).

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

8(3) If at any time the Membersí Pension Account is insufficient to make all payments required to be made under this Act, the Minister shall, at the request of the Board of Management, pay out of the Consolidated Fund into the Membersí Pension Account an amount sufficient to enable such payments to be made.

6 Subsection 9(3) of the Act is repealed.

7 Section 14 of the Act is amended

(a) by repealing subsection (1) and substituting the following:

14(1) Subject to subsections (2) and (3), where a person described in subsection 13(1) does not leave a surviving spouse or where a surviving spouseís pension ceases to be payable, a childrenís pension equal to the surviving spouseís pension that was being paid or could have been paid under section 13 is to be paid in equal shares to the children of the contributor who, at the time of the death of the contributor, are dependent on the contributor for support and who are

(a) under nineteen years of age and will not attain the age of nineteen in the calendar year that includes that time, or

(b) under twenty-five years of age and will not attain the age of twenty-five in the calendar year that includes that time and who are in full-time attendance at an educational institution.

(b) by repealing subsection (2) and substituting the following:

14(2) For the purposes of subsection (1), a child who has attained nineteen years of age and who at the time of death of the contributor is dependent on the contributor for support and is dependent on the contributor by reason of mental or physical infirmity, shall be deemed to be a child not having attained nineteen years of age.

(c) by adding after subsection (3) the following:

14(4) A childrenís pension ceases to be payable

(a) in the case of a child described in paragraph (1)(a), when the child reaches the age of nineteen years,

(b) in the case of a child described in paragraph (1)(b), when the child reaches the age of twenty-five years or ceases to be in full-time attendance at an educational institution, whichever occurs earlier, or

(c) in the case of a child described in subsection (2), if the child ceases to have a mental or physical infirmity.

8 Subsection 20(2) of the Act is repealed.

9 Subsection 20.1(9) of the Act is repealed.

10 Subsection 22(1) of the French version of the Act is amended by striking out "cinq-douzième" and substituting "cinq douzièmes".

11 Subsection 24(1) of the French version of the Act is amended by striking out "cinq-douzième" and substituting "cinq douzièmes".

12(1) Subject to subsection (2), this Act shall be deemed to have come into force on December 10, 1993.

12(2) Paragraph 2(b) and section 9 of this Act shall be deemed to have come into force on January 1, 1997.

EXPLANATORY NOTES

Section 1

The existing definition is as follows:

"pensionable service" means any period of service to the credit of a member or minister under this Act that may be used in calculating a benefit and, where applicable, includes any period of service to the credit of the member or minister under the Members Superannuation Act;

Section 2

(a) The period of time for which a portion of an indemnity is paid must be a qualifying period in accordance with paragraph 8507(3)(a) of the Income Tax Regulations under the Income Tax Act (Canada).

(b) The existing provision is as follows:

5(3) Notwithstanding subsection (1), a member shall not continue to contribute to the Membersí Pension Account or acquire pensionable service after the last day of the year in which the member attains seventy-one years of age, and any benefit to which the member is entitled under this Part shall commence to be paid not later than that date.

Section 3

(a) The existing provision is as follows:

6(3) Subsections (1) and 2) apply, with the necessary modifications, to a member who ceased to be a member and who, before again becoming a member, was subject to the Members Superannuation Act.

(b) Where a member of the Legislative Assembly who has ceased to be a member and is entitled to an annual pension under the Members Superannuation Act again becomes a member, the memberís entitlement to that annual pension ceases and the pensionable service in respect of which the annual pension was authorized is added to the memberís pensionable service as a member under the Membersí Pension Act.

Section 4

(a)(i) and (ii) These amendments are consequential on the amendment made in paragraph 3(a) of this amending Act. The existing provision is as follows:

7(1) An election under subsection 6(1)

(a) shall be made in writing and signed by the member,

(b) shall be forwarded to the Minister within the time specified in subsection 6(1), and

(c) is irrevocable.

(b) This amendment is consequential on the amendment made in paragraph 3(a) of this amending Act. The existing provision is as follows:

7(2) An amount required to be paid under subsection 6(1) shall be paid by the member into the Membersí Pension Account

(a) in a lump sum at the time of making the election, or

(b) in instalments together with interest, over a period determined by the Minister, which period shall not exceed the period of pensionable service in respect of which the election is made.

Section 5

(a) An amount referred to in subsection 8(1) of the Membersí Pension Act must not exceed eligible contributions as provided for in subsection 147.2(2) of the Income Tax Act (Canada).

(b) A provision is added with respect to funding liabilities.

Section 6

The existing provision is as follows:

9(3) Where a minister ceases to be a minister but remains a member, the minister may apply in writing to the Minister for a return of the memberís contributions as a minister, together with interest, and shall, after receiving the contributions, together with interest, irrevocably forfeit the right to a ministerís pension in respect of that pensionable service.

Section 7

(a) The existing provision is as follows:

14(1) Subject to subsections (2) and (3), where a person described in subsection 13(1) does not leave a surviving spouse or where a surviving spouseís pension ceases to be payable, a childrenís pension equal to the surviving spouseís pension is payable immediately in equal shares to those children who have not attained eighteen years of age.

(b) The existing provision is as follows:

14(2) For the purpose of subsection (1), a child who has attained eighteen years or age and who is incapable of pursuing regularly any substantially gainful employment shall be deemed to be a child not having attained eighteen years of age.

(c) The new provision sets out the circumstances when a childrenís pension ceases to be payable.

Section 8

The existing provision is as follows:

20(2) Notwithstanding subsection (1), where any person is indebted to the Province in a specific sum of money, the Comptroller may retain by way of deduction or setoff the amount of any such indebtedness out of any benefit payable to the person under this Part.

Section 9

The existing provision is as follows:

20.1(9) Where an amount of a benefit of a member or minister, or of a former member or former minister, is retained by way of deduction or setoff under subsection 20(2), the portion of the benefit to which the spouse of that member or minister, or of that former member or former minister, is entitled under this section, shall not be reduced by such amount.

Section 10

A spelling error is corrected in the French version.

Section 11

A spelling error is corrected in the French version.

Section 12

Commencement provision.