BILL 14 - An Act to Amend the Teachers’ Pension Act

BILL 14

An Act to Amend the Teachers’ 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 Teachers’ Pension Act, chapter T-1 of the Revised Statutes, 1973, is amended in the definition "teacher"

(a) by adding after subparagraph (a)(iv.1) the following:

(iv.2) as executive secretary of l’Association des conseillers scolaires francophones du Nouveau-Brunswick,

(b) by repealing paragraph (a.1) and substituting the following:

(a.1) is a person who was a contributor under this Act immediately before becoming a deputy head as defined under the Public Service Superannuation Act as long as that person retains the position of deputy head and is rendering service for and receiving remuneration from a participating employer in accordance with subparagraph 8503(3)(a)(i) of the Income Tax Regulations under the Income Tax Act (Canada);

2 Subsection 4(1) of the Act is amended

(a) in subparagraph (a)(iv) by striking out the portion preceding clause (A) and substituting the following:

(iv) any period of active military service

(b) in subparagraph (b)(ii)

(i) by repealing clause (A) and substituting the following:

(A) with respect to service performed before 1992 and credited after 1991, any period of such service in respect of which he or she has received, from the same employer as his or her current employer or a predecessor employer of his or her current employer, any amount by way of a return of contributions or interest upon cessation of employment, if he or she elects to pay in respect of that period of service an amount equal to the amount he or she would have been required to pay had he or she been a contributor during that period, but based on the salary authorized to be paid to him or her at the date of election and the contribution rates applicable at that date,

(ii) by adding after clause (A) the following:

(A.1) with respect to service performed and credited after 1991, any period of such service in respect of which he or she has received any amount by way of a return of contributions or interest under this Act, the Teacher’s Act, the Superannuation Act or the Public Service Superannuation Act, if the period of such service is in accordance with subparagraph 8503(3)(a)(i) or (v) of the Income Tax Regulations under the Income Tax Act (Canada), and if he or she elects to pay in respect of that period of service an amount equal to the amount he or she would have been required to pay had he or she been a contributor during that period, but based on the salary authorized to be paid to him or her at the date of election and the contribution rates applicable at that date,

(iii) by repealing clause (B) and substituting the following:

(B) any period of service,

(I) performed before 1992 and credited after 1991, during which he or she was employed in full time employment as a teacher in a public school in any other province or territory of Canada or in Canadian Government Schools in Canada for children of military personnel or Indians, if he or she elects to pay in respect of that period of service an amount equal to twice the amount he or she would have been required to pay had he or she been a contributor during that period, but based on the salary authorized to be paid to him or her at the date of election and the contribution rates applicable at that date, and if the period of service is recognized under a reciprocal agreement or portability arrangement between the two employers that is in force on the date of the election, and

(II) performed and credited after 1991, during which he or she was employed in full time employment as a teacher in a public school in any other province or territory of Canada or in Canadian Government Schools in Canada for children of military personnel or Indians, if the period of service is in accordance with subparagraph 8503(3)(a)(v) of the Income Tax Regulations under the Income Tax Act (Canada), and if he or she elects to pay in respect of that period of service an amount equal to twice the amount he or she would have been required to pay had he or she been a contributor during that period, but based on the salary authorized to be paid to him or her at the date of election and the contribution rates applicable at that date,

(iv) by adding after clause (B) the following:

(B.01) any period of service performed and credited after 1991 on a current service basis, to a maximum of three years, during which he or she was employed in full time employment as a teacher in any other country that is or was, at the time the service occurred, a member of the British Commonwealth of Nations or in Canadian Government Schools outside Canada for children of military personnel, or teaching in a foreign country under the Department of External Affairs or the Canadian International Development Agency, if the period of service is in accordance with subparagraph 8503(3)(a)(vii) of the Income Tax Regulations under the Income Tax Act (Canada), and if he or she elects to pay in respect of that period of service an amount equal to twice the amount he or she would have been required to pay had he or she been a contributor during that period, but based on the salary authorized to be paid to him or her at the date of election and the contribution rates applicable at that date,

(v) by repealing clause (E.1) and substituting the following:

(E.1) any period of service

(I) performed before 1992 and credited after 1991, during which he or she served as a member of the Legislative Assembly, but in respect of which he or she is not entitled to a pension under the Members Superannuation Act, if he or she elects to pay in respect of that period of service an amount equal to the amount he or she would have been required to pay had he or she been a contributor during that period, but based on the salary authorized to be paid to him or her at the date of election and the contribution rates applicable at that date, and if the period of service is recognized under a reciprocal agreement or portability arrangement between the two pension plans that is in force on the date of the election, and

(II) performed and credited after 1991, during which he or she served as a member of the Legislative Assembly, but in respect of which he or she is not entitled to a pension under the Members Superannuation Act or the MembersPension Act, if the period of service is in accordance with subparagraph 8503(3)(a)(v) of the Income Tax Regulations under the Income Tax Act (Canada), and if he or she elects to pay in respect of that period of service an amount equal to the amount he or she would have been required to pay had he or she been a contributor during that period, but based on the salary authorized to be paid to him or her at the date of election and the contribution rates applicable at that date,

(vi) by repealing clause (E.2) and substituting the following:

(E.2) any period of leave without pay,

(I) with respect to any period of leave before 1992 for which service is credited after 1991, in the case of a teacher who was granted maternity leave of at least two consecutive weeks within one complete pay period, to a maximum of one year in respect of any one pregnancy, if that teacher resumes employment as a teacher and elects to pay in respect of that period an amount equal to the amount she would have been required to pay had she been a contributor during that period, but based on the salary authorized to be paid to her at the date of election and the contribution rates applicable at that date, and

(II) with respect to any period of leave after 1991 for which service is credited after 1991, in the case of a teacher who was granted maternity leave of at least two consecutive weeks within one complete pay period, to a maximum of one year in respect of any one pregnancy, if that period is in accordance with section 8507 of the Income Tax Regulations under the Income Tax Act (Canada), and if that teacher resumes employment as a teacher and elects to pay in respect of that period an amount equal to the amount she would have been required to pay had she been a contributor during that period but based on the salary authorized to be paid to her at the date of election and the contribution rates applicable at that date,

3 Section 5 of the Act is repealed and the following is substituted:

5(1) Notwithstanding anything in this Act but subject to section 4.1, a deputy head, as defined in the Public Service Superannuation Act, who is a contributor under this Act is entitled to count, as pensionable service, elective service comprising any period of service for which the deputy head elects in accordance with subsection (2) to take leave without pay.

5(2) A person who

(a) has attained the age of fifty years,

(b) has served as a deputy head for not less than one year, and

(c) has to his or her credit a prior period of pensionable service of at least twenty years,

may elect to take leave without pay for such period as is required to accumulate twenty-five years of pensionable service, and if he or she so elects shall contribute for that period the amount that he or she would have been required to contribute if he or she were receiving the salary he or she was receiving at the date of the election, at the contribution rate in effect at that time.

5(3) Notwithstanding anything in this Act but subject to section 4.1, a person who has served as a deputy head for not less than one year may retire with an immediate pension if he or she has attained the age of fifty-five years or more and has to his or her credit a period of pensionable service of at least twenty-five years.

4 Subsection 7(1) of the Act is amended by striking out "clause 4(1)(b)(ii)(B)" and substituting "clause 4(1)(b)(ii)(B) or (B.01)".

5 Subsection 8(1) of the French version of the Act is amended by striking out "tout arrérage de pension au moment du décès doit être versé" and substituting "tous arrérages de pension au moment du décès doivent être versés".

6 Section 9 of the Act is amended

(a) in paragraph (2)b) of the French version

(i) in subparagraph (i) by striking out "dizièmes" and substituting "dixièmes";

(ii) in subparagraph (ii) by striking out "l’exédent" and substituting "l’excédent";

(b) in subsection (3.1) by striking out "the regulations under the Income Tax Act (Canada)" and substituting "the Income Tax Regulations under the Income Tax Act (Canada)".

7 Subsection 10(1) of the French version of the Act is amended in paragraph b) of the definition «indice de pension» by striking out "précédante" and substituting "précédente".

8 Section 12 of the Act is amended

(a) in subsection (2.1) by striking out "(D), (E) or (E.1)" and substituting "(D) or (E) or subclause 4(1)(b)(ii)(E.1)(I)";

(b) in subsection (8) by striking out "seventy-one" and substituting "sixty-nine".

9 Section 13 of the Act is amended

(a) in paragraph (1)(c) by striking out "disability pension" and substituting "immediate pension";

(b) in subsection (2) by striking out "one-half the contributor’s disability pension or immediate pension, that disability pension or immediate pension" and substituting "one-half the contributor’s immediate pension, that immediate pension";

(c) by adding after subsection (8) the following:

13(9) Notwithstanding subsections (1) to (4), the total of a surviving spouse’s pension and any additional allowance under subsections (1) to (4) shall not exceed the amounts permitted under paragraphs 8503(2)(d) and (e) of the Income Tax Regulations under the Income Tax Act (Canada).

10 Section 14 of the Act is amended by adding after subsection (4) the following:

14(5) Notwithstanding any other provision in this section, the total of a children’s pension under this section shall not exceed the amounts permitted under paragraphs 8503(2)(d) and (e) of the Income Tax Regulations under the Income Tax Act (Canada).

11 Section 15 of the Act is amended by adding ", and the pension shall end no later than the end of the eligible survivor benefit period as defined in subsection 8500(1) of the Income Tax Regulations under the Income Tax Act (Canada)" after "section 13".

12 Subsection 17(2) of the Act is repealed and the following is substituted:

17(2) Where the contributor accepts an offer of employment pursuant to subsection (1), his or her entitlement to a disability pension shall be suspended, effective the date he or she is appointed, for the duration of such re-employment and the period of re-employment is to be additional pensionable service for the purposes of this Act.

13 Subsection 18(3) of the Act is amended by striking out "the regulations under the Income Tax Act (Canada)" and substituting "the Income Tax Regulations under the Income Tax Act (Canada)".

14 Subsection 19(5) of the Act is repealed and the following is substituted:

19(5) Any contributor mentioned in subsection (1) who subsequently is re-employed as a teacher in the Province may elect, in accordance with this Act, to count the period of pensionable service in respect of which payment was made under subsection (1) and to have transferred from the pension plan of the Université de Moncton to the Teachers’ Pension Fund in accordance with the reciprocal agreement between the two employers, an amount equal to the payment made under subsection (1), together with interest from the date of the payment by the Minister, and the Minister may receive and pay into the Teachers’ Pension Fund such amount.

15 Section 22.1 of the Act is amended

(a) by adding after subsection (6) the following:

22.1(6.01) Notwithstanding subsection (6), where the pensionable service in respect of which a payment or payments are to be made under subsection (6) is performed and credited after 1991, no payment or payments shall be made under subsection (6) unless the pensionable service is in accordance with subparagraph 8503(3)(a)(v) of the Income Tax Regulations under the Income Tax Act (Canada).

(b) by repealing subsection (6.1);

(c) by adding after subsection (8) the following:

22.1(9) Notwithstanding subsection (8), where the pensionable service in respect of which a payment or payments are to be made under subsection (8) is performed and credited after 1991, no payment or payments shall be made under subsection (8) unless the pensionable service is in accordance with subparagraph 8503(3)(a)(v) of the Income Tax Regulations under the Income Tax Act (Canada).

16 Section 26 of the Act is amended

(a) by repealing subsection (3);

(b) in subsection (7) of the French version by striking out "ces paiments" and substituting "ces paiements".

17(1) Subject to subsections (2) and (3), this Act or any provision of it comes into force on a day or days to be fixed by proclamation.

17(2) Paragraph 1(a) of this Act shall be deemed to have come into force on July 16, 1980.

17(3) Paragraph 8(b) of this Act shall be deemed to have come into force on January 1, 1997.

EXPLANATORY NOTES

Section 1

(a) The definition "teacher" is expanded to include a person holding a teacher’s licence who is employed in full time employment as executive secretary of l’Association des conseillers scolaires francophones du Nouveau-Brunswick.

 

(b) The existing provision is as follows:

"teacher" means a person holding a teacher’s licence who …

(a.1) is a person who was a contributor under this Act immediately prior to becoming a deputy head as defined under the Public Service Superannuation Act as long as that person retains the position of deputy head;

Section 2

(a) The existing provision is as follows:

4(1) Subject to this Act, the following service may be counted by a contributor as pensionable service, namely,

(a) non-elective service, comprising …

(iv) any period of service

(b) Provisions in subparagraph 4(1)(b)(ii) of the Teachers’ Pension Act are amended in respect of pensionable service performed before 1992 and credited after 1991, and pensionable service performed and credited after 1991.

Section 3

The existing provision is as follows:

5 Notwithstanding anything in this Act, a deputy head, as defined in the Public Service Superannuation Act who is a contributor under this Act is entitled under this Act to the benefits and privileges of a deputy head under the Public Service Superannuation Act.

Section 4

The amendment is consequential on the amendments made in subparagraph 2(b)(iv) of this amending Act. A reference change is made.

Section 5

The existing provision is as follows:

8(1) Lorsqu’une pension devient payable en application de la présente loi, elle doit être payée par mensualités égales à terme échu et continuer, sous réserve des dispositions particulières de la présente loi, durant la vie du bénéficiaire et ce, jusqu’à la fin du mois de son décès, et tout arrérage de pension au moment du décès doit être versé au conjoint survivant qui a droit à la pension de conjoint survivant en vertu de l’article 13 ou, s’il n’y a pas de conjoint survivant ou s’il est impossible de le trouver, aux enfants, par parts égales, ou, s’il n’y a pas d’enfants ou s’il est impossible de les trouver, à la succession du bénéficiaire.

Section 6

(a) Spelling corrections are made to the French version.

 

(b) A reference to federal regulations is clarified.

Section 7

A spelling correction is made to the French version.

Section 8

(a) The existing provision is as follows:

12(2.1) For the purposes of subsection (2), a contributor who has purchased service under clause 4(1)(b)(ii)(A), (C), (C.1), (D), (E) or (E.1) which occurred immediately prior to September 1, 1966 shall be deemed to be a person who immediately prior to September 1, 1966 was a contributor under the Teachers’ Act.

(b) The existing provision is as follows:

12(8) Notwithstanding any other provision of this Act, a contributor shall not continue to contribute to the Teachers’ Pension Fund or accumulate pensionable service after the last day of the year in which the contributor reaches the age of seventy-one, and any benefit to which the contributor is entitled under this Act shall commence to be paid no later than that day.

Section 9

(a) The existing provision is as follows:

13(1) Subject to this section, upon the death of a contributor who had to his credit five or more years pensionable service, his surviving spouse is entitled to a surviving spouse’s pension equal to, ….

(c) where the contributor was employed as a teacher at the time of his death, one half the disability pension that would have been payable had the contributor become disabled at the time of his death; or

(b) The existing provision is as follows:

13(2) Where reference is made in subsection (1) to the surviving spouse’s pension being one-half the contributor’s disability pension or immediate pension, that disability pension or immediate pension is to be calculated in accordance with subsection 9(2) if the surviving spouse is eligible as a surviving spouse for a pension under the Canada Pension Plan, or in accordance with subsection 9(3) if he is not eligible as a surviving spouse for a pension under the Canada Pension Plan.

(c) The new subsection 13(9) provides that the total of a surviving spouse’s pension and any additional allowance under section 13 of the Teachers’ Pension Act cannot exceed the amounts permitted under paragraphs 8503(2)(d) and (e) of the Income Tax Act Regulations under the Income Tax Act (Canada).

 

Section 10

The new subsection 14(5) provides that the total of a children’s pension under section 14 of the Teachers’ Pension Act cannot exceed the amounts permitted under paragraphs 8503(2)(d) and (e) of the Income Tax Regulations under the Income Tax Act (Canada).

Section 11

The existing provision is as follows:

15 Where a contributor who had to his credit five or more years pensionable service dies without leaving a surviving spouse or children or where a surviving spouse’s or children’s pension is no longer payable under this Act, the Lieutenant-Governor in Council may grant to a person, who, being a member of the contributor’s family, was at the time of the death of the contributor wholly or partly dependent upon his earnings, a pension in an amount not exceeding the amount of the surviving spouse’s pension that was being paid or could have been paid pursuant to section 13.

Section 12

The existing provision is as follows:

17(2) Where the contributor accepts an offer of employment pursuant to subsection (1) his entitlement to a disability pension shall be suspended effective the date he is appointed, for the duration of such re-employment and if he is eligible, or would be eligible but for the provisions of subsection 3(2), to become a contributor under this Act or the Public Service Superannuation Act, the period of re-employment is to be additional pensionable service for the purposes of this Act.

Section 13

A reference to Federal regulations is clarified.

Section 14

The existing provision is as follows:

19(5) Any contributor mentioned in subsection (1) who subsequently is re-employed as a teacher in the Province may elect, in accordance with this Act, to count the period of pensionable service in respect of which payment was made pursuant to subsection (1), if he pays to the Minister, within a period prescribed by the Minister, an amount equal to the payment made pursuant to that subsection, together with interest from the date of the payment by the Minister.

Section 15

(a) A provision is added in respect of pensionable service performed and credited after 1991.

(b) The existing provision is as follows:

22.1(6.1) Notwithstanding any other provision of this Act, a person referred to in subsection (6) who has received an amount by way of a return of contributions or interest under this Act or the Teachers’ Act may, in respect of that period for which he has received that return of contributions or interest and for the purpose of any superannuation or pension fund or plan established for the benefit of employees of that approved employer, elect to pay into the Teachers’ Pension Fund an amount equal to the amount required by the approved employer in respect of that period in accordance with the reciprocal agreement and the Minister shall pay or arrange to be paid from the Teachers’ Pension Fund to the approved employer that amount and no other amount in respect of that period on behalf of that person.

(c) A provision is added in respect of pensionable service performed and credited after 1991.

Section 16

(a) The existing provision is as follows:

26(3) All pension payments and refunds shall be paid out of the Consolidated Fund until such time as the assets of the Teachers’ Pension Fund equal those of the pension trust fund established under the Public Service Superannuation Act.

 

(b) A spelling correction is made in the French version.

Section 17

Commencement provision.