BILL 34

An Act Respecting Pensions

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

Members' Pension Act

1(1) Subsection 1(1) of the English version of the Members' Pension Act, chapter M-7.1 of the Acts of New Brunswick, 1993, is amended in the definition "annual pension" by striking out "mean" and substituting "means".

1(2) Section 6 of the French version of the Act is amended

(a) in subsection (1) by striking out "a reçu un remboursement de cotisations et redevient député" and substituting "qui a reçu un remboursement de cotisations et qui redevient député";

(b) in subsection (3) by striking out "a reçu un remboursement de cotisations en vertu de la Loi sur la pension de retraite des députés et redevient député" and substituting "qui a reçu un remboursement de cotisations en vertu de la Loi sur la pension de retraite des députés et qui redevient député".

1(3) The Act is amended by adding after section 14 the following:

14.1(1) In this section

"Consumer Price Index" means the Consumer Price Index for Canada published under the authority of the Statistics Act (Canada);

"pension index" means for each year, the average of the Consumer Price Index for the twelve month period ending June 30 in the year preceding that year unless the average is less than 1.01 times the pension index for the preceding year, in which case the pension index for the year is the pension index for the preceding year.

14.1(2) Where a pension is paid under this Act to a person who first received the pension after March 31, 1997, the amount of that pension shall be adjusted as of the first day of each year, beginning on January 1, 2001, by multiplying the amount of the pension that would have been payable for that year if no adjustment had been made under this subsection with respect to that following year, by the ratio that the pension index for that year bears to the pension index for the preceding year or 1.06, whichever is the lesser.

14.1(3) Notwithstanding subsection (2), the first adjustment under subsection (2) shall be the amount determined by multiplying the increase, if any, that would otherwise be payable under subsection (2) by a fraction the denominator of which is 12 and the numerator of which is equal to the number of months following the month in which cessation of employment or death took place in the year preceding the year in which the first adjustment is made.

14.1(4) Notwithstanding subsection (2), any increase in the amount of pension payable under this Act by virtue of any adjustment made under subsection (2) relating to any period before January 1, 2001, shall be implemented

(a) so as to be effective January 1, 2001, and

(b) without any retroactive payment being made in respect of any period before January 1, 2001.

1(4) Subsection 18(2) of the Act is amended

(a) in paragraph (e) by striking out "or" at the end of the paragraph;

(b) in paragraph (f) by striking out the period at the end of the paragraph and substituting a comma;

(c) by adding after paragraph (f) the following:

(g) the Lieutenant-Governor of New Brunswick if appointed as Lieutenant-Governor on or after the commencement of this paragraph, or

(h) the Governor General of Canada if appointed as Governor General on or after the commencement of this paragraph.

1(5) The Act is amended by adding after section 29 the following:

29.01 Section 14.1 applies with the necessary modifications to supplementary allowances and reduced supplementary allowances under this Part.

Members Superannuation Act

2(1) The Members Superannuation Act, chapter M-8 of the Revised Statutes, 1973, is amended by adding after section 10.4 the following:

10.5(1) Where a pension is paid under this Act to a person who first received the pension after December 31, 1996, the amount of that pension shall be adjusted as of the first day of each year, beginning on January 1, 2001, by multiplying the amount of the pension that would have been payable for that year if no adjustment had been made under this subsection with respect to that following year, by the ratio that the pension index for that year bears to the pension index for the preceding year or 1.06, whichever is the lesser.

10.5(2) Notwithstanding subsection (1), the first adjustment under subsection (1) shall be the amount determined by multiplying the increase, if any, that would otherwise be payable under subsection (1) by a fraction the denominator of which is 12 and the numerator of which is equal to the number of months following the month in which cessation of employment or death took place in the year preceding the year in which the first adjustment is made.

10.5(3) Notwithstanding subsection (1), any increase in the amount of pension payable under this Act by virtue of any adjustment made under subsection (1) relating to any period before January 1, 2001, shall be implemented

(a) so as to be effective January 1, 2001, and

(b) without any retroactive payment being made in respect of any period before January 1, 2001.

10.5(4) In this section, "pension index" has the same meaning as it has in section 8 of the Public Service Superannuation Act.

2(2) Subsection 13(2) of the French version of the Act is amended by striking out "en cas de de décès" and substituting "en cas de décès".

2(3) Subsection 18(2) of the Act is amended

(a) in paragraph (e) by striking out "or" at the end of the paragraph;

(b) in paragraph (f) by striking out the period at the end of the paragraph and substituting a comma;

(c) by adding after paragraph (f) the following:

(g) the Lieutenant-Governor of New Brunswick if appointed as Lieutenant-Governor on or after the commencement of this paragraph, or

(h) the Governor General of Canada if appointed as Governor General on or after the commencement of this paragraph.

Commencement

3 Subsections 1(3) and (5) and 2(1) of this Act shall be deemed to have come into force on January 1, 2001.