1993 Legislative Session: 2nd Session, 35th Parliament
FIRST READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
HONOURABLE LOIS BOONE
MINISTER OF GOVERNMENT SERVICES
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 The amendments to the Pension (College) Act, R.S.B.C. 1979, c. 316, made by B.C. Reg. 489/92, the Pension (College) Benefits Standards Regulation, are repealed and, subject to this Act, the Pension (College) Act is deemed to read as it did on December 31, 1992.
2 Section 1 (1) of the Pension (College) Act, R.S.B.C. 1979, c. 316, is amended
(a) in the definition of "the actuary" by striking out "the actuary" and substituting "actuary",
(b) in the definition of "approved group disability salary continuance plan" by striking out "Provincial Secretary" and substituting "minister",
(c) in the definition of "basic lifetime portion" by adding "as it read on December 31, 1992" after "contributions made by the employee under section 6 (2)",
(d) by repealing the definition of "common law spouse" and substituting the following:
"common law spouse" means a person with whom a contributor has cohabited for a continuous period of not less than
(a) 2 years, or
(b) one year, where there is a child resulting from the union, and with whom the contributor is cohabiting at the date of his or her death or the date at which he or she applies for a superannuation allowance or supplemental benefits allowance, or both, whichever first occurs; ,
(e) in the definition of "contributor" by adding "or a supplemental benefits allowance, or both," after "superannuation allowance",
(f) in the definition of "superannuation allowance" by striking out "under this Act;" and substituting "under Part 2;", and
(g) by adding the following definitions:
"approved employer" means
(a) an employer to whom the Pension (Municipal) Act applies,
(b) an employer to whom the Pension (Public Service) Act applies,
(c) an employer to whom the Pension (Teachers) Act applies,
(d) an employer to whom the Public Service Superannuation Act (Canada) applies,
(e) the University of British Columbia,
(f) the University of Victoria,
(g) Simon Fraser University, or
(h) an employer who has been declared to be an approved employer by order of the minister;
"benefit" means an allowance or any other entitlement payable under this Act, and includes a return of contributions and any payment in a series of payments;
"commuted value" means, in relation to a benefit that a person has a present or future entitlement to receive under this Act, the actuarial present value of the benefit determined on the basis of actuarial assumptions and methods specified by the commissioner;
"contributory service" means the period of time for which an employee makes or is deemed to make contributions and is entitled to accumulate credit towards a superannuation allowance;
"defined benefit limit" has the same meaning as in section 8500 (1) of the Income Tax Regulations under the Income Tax Act (Canada);
"pensionable age" means 60 years of age;
"reciprocal employer" means
(a) an employer to whom the Pension (Municipal) Act applies,
(b) an employer to whom the Pension (Public Service) Act applies,
(c) an employer to whom the Pension (Teachers) Act applies,
(d) the Workers' Compensation Board, or
(e) an employer who has been declared to be a reciprocal employer by order of the Lieutenant Governor in Council;
"RRSP" means a retirement savings plan that is within the meaning of the Income Tax Act (Canada) and that is registered under that Act;
"supplemental benefits allowance" means the total monthly annuity or allowance payable under Part 3;
"termination of membership" means,
(a) in the case of an employee who is covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor's behalf and the cessation of seniority rights under the collective agreement,
(b) in the case of an employee who is not covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor's behalf, or
(c) in the case of a contributor who is entitled to a disability benefit and whose contributions to the fund have been discontinued therefor, the cessation of entitlement to disability benefits;
"years of continuous employment" means years of employment for a continuous period of time with an employer including any breaks in employment of up to 26 weeks, but does not include any period in respect of which the member has received a benefit unless that benefit has been reinstated under section 7 or 19.1.
3 The following heading is added after section 1:
4 Section 1.1 (1.1) and (3) is amended by adding "or a supplemental benefits allowance" after "superannuation allowance".
5 Section 3 is amended by repealing subsections (5) to (8) and substituting the following:
(5) The fund shall be divided into the following 4 accounts:
(a) the basic account;
(b) the inflation adjustment account;
(c) the supplemental benefits account;
(d) the retirement annuity account.
(6) The basic account shall consist of all the assets of the fund other than assets in the inflation adjustment account, the supplemental benefits account and the retirement annuity account.
(7) The inflation adjustment account shall consist of
(a) the employer's matching contributions made under section 5.1 (a), the employer's contributions made under section 5.1 (b) (iii), (c) (iii) and (d) (iii) and the employee's contributions made under section 6 (1) (c),
(b) net interest earned on the inflation adjustment account, and
(c) income that is
(i) earned on other fund assets held in the basic account in respect of pensions being paid, and
(ii) in excess of the interest anticipated in the most recent actuarial valuation under section 23, as determined by the commissioner, less
(d) amounts transferred to the basic account under section 6.3,
(e) amounts refunded to an employee under this Act in respect of contributions made under section 6 (1) (c) or otherwise transferred out of the fund in accordance with this Act, in respect of employer contributions made under section 5.1 or employee contributions made under section 6 (1) (c),
(f) amounts, as determined by the commissioner, in respect of a commuted value payment made to an employee or otherwise transferred out of the fund in accordance with section 17 (2) or (4) or 18 (1) or (2), and
(g) amounts contributed to the supplemental benefits account under subsection (8) (d) of this section.
(8) The supplemental benefits account shall consist of
(a) contributions to the fund provided for in Part 3,
(b) net interest earned on the supplemental benefits account,
(c) amounts from contributions under section 5.1 (b) (i) and (ii), (c) (i) and (ii) and (d) (i) and (ii), as determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of benefits provided for in sections 19.3 and 19.7,
(d) amounts from contributions under section 5.1 (b) (iii), (c) (iii) and (d) (iii), as determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of providing inflation protection under section 19.4,
(e) funds received from Revenue Canada pursuant to the administration of this account, and
(f) other amounts as may be prescribed by the Lieutenant Governor in Council.
(9) The retirement annuity account shall consist of
(a) voluntary contributions made under section 6 (2) as it read on December 31, 1992, and
(b) interest earned on those voluntary contributions.
(10) An individual record shall be maintained for each employee in which contributions to the fund shall be recorded.
(11) The commissioner may return to a plan member or employer, or to the supplemental benefits account, any contributions that are inadvertently made to the basic account which are in excess of the maximum contributions set out in the Income Tax Act (Canada).
6 Sections 4 and 4.1 are repealed.
7 Section 5 (7) is repealed and the following is substituted:
(7) When this Act commences to apply to an employee, it is deemed to continue to apply to that employee until termination of membership.
8 The following section is added:
5.1 Each time an instalment of an employee's salary is paid, the employer shall pay to the commissioner on the last day of each month the following amounts:
(a) during the period on and before June 30, 1993, an amount equal to the aggregate of the deductions made from the salary of each employee under section 6 (1);
(b) during the period July 1, 1993 to June 30, 1994, an amount equal to the sum of
(i) 5.1% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 6.6% of the employee's cumulative salary payable that exceeds the year's maximum pensionable earnings, and
(iii) 0.5% of the employee's entire salary;
(c) during the period July 1, 1994, to June 30, 1995, an amount equal to the sum of
(i) 5.2% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 6.7% of the employee's cumulative salary payable that exceeds the year's maximum pensionable earnings, and
(iii) 0.5% of the employee's entire salary;
(d) during the period on and after July 1, 1995, an amount equal to the sum of
(i) 5.3% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 6.8% of the employee's cumulative salary payable that exceeds the year's maximum pensionable earnings, and
(iii) 0.5% of the employee's entire salary.
9 The following heading is added after section 5.1:
10 Section 6 is amended
(a) in subsection (1) by adding ", except where the employee elects under section 19.1 (1) (b) not to contribute," after "each employee to whom this Act applies",
(b) by adding the following subsections:
(1.1) Contributions made under subsection (1) shall not exceed the maximums as set out in section 8503 (4) of the Income Tax Regulations under the Income Tax Act (Canada).
(1.2) Contributions made under subsection (1) in respect of a calendar year shall not be paid before January 1 of that year. ,
(c) by repealing subsection (2),
(d) in subsection (4) by striking out "under section 8." and substituting "under section 5.1.",
(e) by adding the following subsection:
(4.1) For the purpose of subsections (3) and (4), an employee shall not be permitted to make contributions in respect of absences after 1991 which exceed
(a) 3 years in respect of maternity or parental leave of absence, each of which is not to exceed one year from the birth or adoption date of the child, and
(b) 5 years in respect of any other allowable leaves of absence. , and
(f) by repealing subsections (6), (7) and (7.1) and substituting the following:
(6) Subject to subsection (6.1), a contributor who continues in employment after reaching the age of 65 years shall continue to be a contributor on the same basis as before the contributor reached the age of 65 years, but in no case shall the contributor's retirement and the commencement of the contributor's superannuation allowance be delayed beyond the end of the calendar year in which the contributor reaches the age of 71 years.
(6.1) A contributor who reached the age of 65 years before January 1, 1993 may, at the option of the contributor, elect to have the provisions of subsection (6) and sections 12 (2) and 14 (4) as they read on December 31, 1992, continue to apply.
(7) No further deductions shall be made from an employee's salary under subsection (1) when the employee has accrued 35 years of pensionable service, including service rendered by the employee in the service of all reciprocal employers.
(7.2) An employee whose contributions cease in accordance with subsection (7) shall be deemed to be a contributor making contributions for all other purposes of this Act.
11 Section 6.1 is amended
(a) in subsection (1) by striking out "under section 8, together with compound interest at the rate of 6% per year payable annually." and substituting "under section 5.1, together with interest at the rate calculated in section 18 (6).",
(b) in subsection (2) by striking out "together with compound interest at the rate of 6% per year payable annually." and substituting "together with interest at the rate calculated in section 18 (6).", and
(c) in subsection (6) by striking out "under section 8." and substituting "under section 5.1."
12 The following sections are added:
6.2 (1) Subject to this section, a person in receipt of a superannuation allowance granted under this Act
(a) prior to January 1, 1974, is entitled to a supplementary allowance to be determined by multiplying the amount of the basic lifetime portion of the superannuation allowance by the percentage shown in the following table:
| Table | |
|
Year in Which |
Amount of Supplementary Allowance |
|
At or before December 31, 1972 |
12 |
|
January 1, 1973 to December 31, 1973 |
4 , |
(b) prior to July 1, 1974, is entitled to a supplementary allowance to be determined by multiplying the amount of the basic lifetime portion of the superannuation allowance by the ratio that the increase in the consumer price index for the month of December, 1974 over the consumer price index for the month of December, 1973 bears to the latter index, and
(c) on or after July 1, 1974 and prior to January 1, 1975, is entitled to a supplementary allowance to be determined by multiplying the amount of the basic lifetime portion of the superannuation allowance by the ratio that the increase in the consumer price index for the month of December, 1974 over the consumer price index for the month of June, 1974 bears to the latter index.
(2) Superannuation allowances,
(a) after being adjusted in accordance with subsection (1), or
(b) granted to a person during an adjustment quarter commencing on or after January 1, 1975, shall be adjusted commencing on the first day of each payment quarter on or after July 1, 1975 by the amount of the basic lifetime portion of the superannuation allowance that would have been paid to that person for the month in the 3 month period immediately prior to that payment quarter calculated in the ratio that the adjustment index for the adjustment quarter bears to the adjustment index for the immediately preceding adjustment quarter, but no adjustment shall be made under this subsection in respect of any payment quarter commencing after January 1, 1981.
(3) The supplementary allowance otherwise payable under this section is deferred in respect of an employee who, after reaching an age that is not more than 10 years under the maximum retirement age, elected under section 12 (1) (b) to receive a reduced superannuation allowance calculated under section 14, until the first day of the payment quarter next following the month the employee reaches an age that is 5 years less than the employee's maximum retirement age.
(4) Payment of the supplementary allowance calculated under subsection (1) (a) shall commence on July 1, 1974 and shall cease on the date that payment of the superannuation allowance or supplemental benefits allowance, or both, ceases.
(5) Payment of the supplementary allowance calculated under subsection (1) (b) and (c) shall commence on April 1, 1975 and shall cease on the date that payment of the superannuation allowance ceases.
(6) Notwithstanding subsection (1), the amount of a superannuation allowance that may be paid to a pensioner for any month in a payment quarter shall not be less than the amount of the superannuation allowance that was or may be paid to a pensioner for any month in the 3 month period immediately before that payment quarter as a result of the application of this section.
(7) If, in relation to any payment quarter, the adjustment index for the adjustment quarter is lower than the adjustment index for the previous adjustment quarter,
(a) no adjustment of superannuation allowance shall be made under subsection (1) in respect of that payment quarter, and
(b) no adjustment of superannuation allowance shall be made under subsection (1) in respect of any subsequent payment quarter until the adjustment index for that subsequent payment quarter is higher than the previous adjustment quarter in which the adjustment index had attained the highest point.
(8) For the purpose of this section, "adjustment quarter" in relation to a payment quarter means,
(a) if the payment quarter commences on January 1 in a year, the period of 3 months commencing on July 1 immediately prior to that January 1,
(b) if the payment quarter commences on April 1 in a year, the period of 3 months commencing on October 1 immediately prior to that April 1,
(c) if the payment quarter commences on July 1 in a year, the period of 3 months commencing on January 1 immediately prior to that July 1, or
(d) if the payment quarter commences on October 1 in a year, the period of 3 months commencing on April 1 immediately prior to that October 1;
"basic lifetime portion of the superannuation allowance" means,
(a) if the retired employee is living, the superannuation allowance payable monthly during the lifetime of the employee, or
(b) if the retired employee is not living, the superannuation allowance payable monthly during the lifetime of the person nominated by the employee prior to the granting of the allowance, and includes the superannuation allowance, if any, granted to the nominee under a plan described in section 15 (1) (b);
"adjustment index" with respect to any adjustment quarter means the average for that adjustment quarter of the consumer price index for each month in that adjustment quarter;
"payment quarter" means a period of 3 months commencing on the first day of January, April, July or October in any year.
(9) The Lieutenant Governor in Council may, by regulation, prescribe the manner in which the average of the adjustment index for any period of months shall be determined and the manner in which the average that is determined to be a fraction of a whole number shall be expressed.
6.3 (1) The commissioner shall use money in the inflation adjustment account established under section 3 to provide supplementary allowances to persons who receive a superannuation allowance granted under this Act.
(2) Beginning on January 1, 1982 and on January 1 of each subsequent year, the commissioner shall grant supplementary allowances in accordance with this section to persons who receive under this Act a superannuation allowance that includes a basic lifetime portion but, if on the day a supplementary allowance is granted, the superannuation allowance has been paid for a period of less than 12 months, the supplementary allowance shall be reduced to the amount obtained by multiplying it by 1/12 for each complete month that the superannuation allowance has been paid.
(3) The amount of a supplementary allowance granted on any January 1 shall not exceed the amount obtained by multiplying
(a) the percentage increase in the consumer price index over the 12 months ending on the immediately preceding September 30 by
(b) the basic lifetime portion of the superannuation allowance on that January 1.
(4) The supplementary allowances shall, subject to subsection (3),
(a) be, in total, an amount that has a capitalized value equal to the amount in the inflation adjustment account on the preceding September 30, and
(b) be calculated so as to provide a uniform percentage increase in the basic lifetime portion of the superannuation allowances eligible for adjustment.
(5) The total capitalized value of all supplementary allowances granted on any January 1 under this section shall not exceed the amount that the commissioner determines is in the inflation adjustment account on the preceding September 30.
(6) The capitalized value of the aggregate of the supplementary allowances granted annually under this section shall be transferred from the inflation adjustment account to the basic account established under section 3.
(7) In respect of an employee who after reaching age 55 elects under section 12 (1) (b) to receive a reduced superannuation allowance calculated under section 14, the supplementary allowance otherwise payable under this section is deferred until the month following the month the employee attains age 60, and the capitalized value of the total amount of supplementary allowance that may become payable under this subsection in respect of that employee shall be transferred from the inflation adjustment account to the basic account at that time.
(8) The supplementary allowances granted under this section shall be in addition to the supplementary allowances under section 6.2.
(9) A supplementary allowance ends when the part of the superannuation allowance on which it is based ends.
13 Section 7 is amended
(a) by repealing subsection (1) and substituting the following:
(1) Subject to subsection (2), if, in respect of a person,
(a) contributions to the fund are discontinued for any period,
(b) no refund of contributions made under section 18 or 18.1 was received, and
(c) the person again becomes a contributor, that person may be permitted to count previous service as pensionable service. , and
(b) by repealing subsection (3).
14 Sections 8 to 10 are repealed.
15 Section 11 (1) (b) is amended by striking out "Provincial Secretary;" and substituting "minister;".
16 The following section is added:
11.2 (1) For the purpose of sections 11 (1) (b) and 11.1, service before January 1, 1990 will only be recognized if the pension benefit for the year does not exceed 2/3 of the defined benefit limit for the year in which the benefits commence to be paid.
(2) Subsection (1) does not apply for a particular calendar year if
(a) a period in the particular year was pensionable service under a pension plan before June 8, 1990,
(b) the contributor was entitled, on June 7, 1990, pursuant to an arrangement in writing, to be provided with lifetime retirement benefits in respect of a period in the particular year, whether or not the entitlement was conditional on contributions being made, and
(c) at the beginning of the year, a period in the preceding year was pensionable service of the contributor and the contributor was disabled or on leave of absence.
(3) For service after December 31, 1989, only service for which Revenue Canada certification of past service pension adjustment has been received will be eligible for reinstatement under sections 7 and 11.1.
17 Section 12 is amended
(a) by repealing subsection (1) and substituting the following:
(1) Subject to section 18, a contributor who, on or after January 1, 1993, retires, resigns or is dismissed from service is, on application, entitled to
(a) a superannuation allowance calculated under section 14 (1) if the contributor has
(i) attained the age of 55 years and has completed not less than 35 years of pensionable service,
(ii) attained the age of 65 years,
(iii) attained pensionable age and has completed at least 5 years of continuous employment or 5 years of contributory service, or
(iv) completed 5 years of continuous employment or 5 years of contributory service and, before attaining pensionable age, is totally and permanently disabled within the meaning of section 16 and is not in receipt of a monthly income benefit under an approved group disability salary continuance plan,
(b) a superannuation allowance calculated under section 14 (2) if the contributor has attained the age of 55 years and has completed not less than 5 years of continuous employment or not less than 5 years of contributory service, or
(c) a superannuation allowance calculated under section 14 (3) if the contributor has attained pensionable age and has not completed 5 years of continuous employment or has not completed 5 years of contributory service, but if the contributor dies before being granted a superannuation allowance under this subsection, section 17 applies as if the contributor had died in service. , and
(b) by repealing subsections (2), (4), (5) and (6).
18 Section 13 is amended
(a) by repealing subsection (2),
(b) in subsection (3) by striking out "Provincial Secretary," and substituting "minister,",
(c) in subsection (3) (d) by striking out "defined in section 12 (6)",
(d) by repealing subsections (5) and (5.1), and
(e) by adding the following subsection:
(9) For the purpose of this section only, contributions and service that comply with sections 6 (1.1) and (4.1), 11.2 and 14 (8) will be recognized.
19 Section 14 is amended
(a) by repealing subsection (4), and
(b) by adding the following subsection:
(8) Pension benefits payable for service accrued after December 31, 1991 will be limited to the maximum lifetime retirement benefits as set out in section 8504 of the Income Tax Regulations under the Income Tax Act (Canada).
20 Section 15 is amended
(a) in subsection (1) (b) by striking out "a term of years certain," and substituting "a term not exceeding 15 years,",
(b) in subsection (1.1) by adding "by completion of a form specified by the commissioner" after "waives this requirement in writing",
(c) in subsection (2) by adding "or 18.1" after "in accordance with section 18", and
(d) by repealing subsection (5).
21 Section 16 is amended
(a) in subsection (2) (c) by adding "in writing" after "unanimously certify",
(b) by repealing subsection (3) (a) and substituting the following:
(a) if that person does not re-enter service and resume contributions, he shall be entitled to apply, when he qualifies on the basis of age, to commence receiving a superannuation allowance; or, and
(c) by adding the following subsection:
(5) Benefits payable under this section will be limited to the maximums as set out in section 8503 (3) of the Income Tax Regulations under the Income Tax Act (Canada).
22 Section 17 is amended
(a) by repealing subsections (1) to (4) and substituting the following:
(1) The superannuation allowance payable to the spouse of a contributor who dies in service on or after January 1, 1993 without having been granted a superannuation allowance is as follows:
(a) if the contributor had 5 or more years of continuous employment or 5 or more years of contributory service, the superannuation allowance payable shall be the amount calculated under section 14 (2) (b);
(b) if the contributor had less than 5 years of continuous employment or less than 5 years of contributory service and was not less than 60 years old at the time of the contributor's death, the superannuation allowance payable shall be the amount calculated under section 14 (3).
(1.1) A superannuation allowance under subsection (1) may, at the option of the spouse, be granted either as a superannuation allowance on the joint life and last survivor plan under section 15 (1) (c) or as a temporary life annuity under section 15 (1) (d) (ii) in combination with the joint life and last survivor plan under section 15 (1) (c).
(2) In lieu of the allowance provided in subsection (1), the spouse may elect to transfer the whole of the commuted value of the pension on a locked-in basis in accordance with the conditions referred to in section 18 (2) (b).
(3) If a contributor dies in service and there is no surviving spouse, the person nominated by the contributor as beneficiary or, if there is no valid designation of beneficiary the personal representative of the estate in a representative capacity, shall be entitled to a payment equal to the greater of
(a) the deceased contributor's contributions together with accumulated interest, and
(b) the sum of the deceased contributor's contributions, together with accumulated interest, made before January 1, 1993 plus 60% of the commuted value of the superannuation allowance, if any, to which the contributor would have been entitled in respect of service on and after January 1, 1993 had the contributor terminated membership immediately before death.
(4) Notwithstanding any other provision of this section, if a contributor is divorced and remarried and, as a result of a written agreement or a court order made under the Family Relations Act, has nominated a former spouse to receive a lump sum payment on the death of the contributor, that nomination is valid and the benefit specified in subsection (3) shall be paid to that nominated beneficiary as if the contributor had died in service with no surviving spouse. ,
(b) by repealing subsections (4.2) and (7), and
(c) by adding the following subsections:
(9) Notwithstanding any other Part, the remainder of the benefit, whether refund or pension, over the amount of the court order or separation agreement, shall be paid to the current spouse, beneficiary or the estate as it would have been had there been no court order or separation agreement.
(10) Benefits payable under this section will be limited to the maximums as set out in section 8503 (2) of the Income Tax Regulations under the Income Tax Act (Canada).
23 Section 18 is repealed and the following substituted:
18 (1) Subject to the terms and conditions set out in subsection (3), a contributor who, on or after January 1, 1993, resigns, is dismissed or is otherwise retired from service, is entitled on application to receive, in lieu of a superannuation allowance or other benefit that might otherwise have been granted under this Act, a payment in the amount of the commuted value of the contributor's superannuation allowance.
(2) A contributor may elect to receive, in lieu of the commuted value referred to in subsection (1), the following:
(a) if the contributor has less than 5 years of continuous employment or less than 5 years of contributory service at the termination of membership, a payment in the amount of the contributor's contributions, together with accumulated interest under subsection (6);
(b) if the contributor has 5 or more years of continuous employment or 5 or more years of contributory service at the termination of membership, a payment in the amount of the contributor's contributions, if any, made in respect of service before January 1, 1993, together with accumulated interest under subsection (6), plus
(i) a payment in the amount of the commuted value of the contributor's superannuation allowance calculated in respect of service on and after January 1, 1993, or
(ii) an entitlement to a deferred superannuation allowance calculated under section 14 in respect of service on and after January 1, 1993.
(3) A contributor may elect to receive a payment or payments under subsection (1) only if
(a) at the time of termination of membership the contributor's age is more than 5 years under his pensionable age, and
(b) the commissioner is satisfied that the commuted value payment is to be transferred on a locked-in basis to another pension plan, to an RRSP or to an insurance company or other financial institution in accordance with the requirements for funds locked in under the Pension Benefits Standards Act.
(4) Subsections (1) and (2) do not apply to a person receiving a monthly income benefit under an approved group disability salary continuance plan.
(5) The contributions referred to in subsection (2) do not include a contribution deemed to be a contribution under section 5.1.
(6) The accumulated interest referred to in subsection (2) shall be determined in respect of periods before January 1, 1993 on the basis of the rates that were in effect from time to time under this section as it read on December 31, 1992, and for all subsequent periods shall be a rate of interest calculated on the basis of the average yields of 5 year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B 14045.
(7) Interest under subsection (6) shall be computed as if
(a) the contributions made during the fiscal year in which the refund is paid were made in a lump sum on the first day of the month in which payment of the refund is made, and
(b) the contributions made during any other fiscal year were made in a lump sum on August 31, in that other fiscal year.
18.1 (1) A contributor or the surviving spouse of a deceased contributor may receive, in lieu of a superannuation allowance, a payment equal to the commuted value of the allowance if
(a) the monthly pension payment is less than 1/12 of 2% of the year's maximum pensionable earnings in the year of termination of membership, or
(b) the commuted value is not greater than 4% of the year's maximum pensionable earnings in the year of termination of membership.
(2) If a contributor or the surviving spouse of a deceased contributor is entitled to benefits that are locked in under this Act and the commissioner is satisfied that the person entitled to such benefit has a mental or physical disability that is likely to shorten considerably the person's life expectancy, the person may, before payment of the pension commences, elect to convert the pension to a payment or series of payments on a basis acceptable to the commissioner.
24 Section 19.1 is repealed and the following substituted:
19.1 (1) If a former contributor who is in receipt of a superannuation allowance under this Act becomes an employee to whom this Act applies, the employee may elect to do one of the following:
(a) repay to the fund all amounts received by way of superannuation allowance, together with interest calculated at the same rate as provided for in section 18 (6), and be reinstated in the fund and the employee's rights under it reinstated as near as possible to the position held at the time the superannuation allowance was originally granted, in which case the payment of the superannuation allowance shall cease and the employee shall commence making contributions and accruing service in respect of such re-employment;
(b) without repayment of amounts received by way of superannuation allowance or repayment of interest, commence making contributions and accruing service in respect of the re-employment, in which case the payment of the superannuation allowance shall cease;
(c) continue to receive a superannuation allowance, in which case the employee is not eligible to make contributions and accrue service in respect of the re-employment.
(2) If a person who is in receipt of a superannuation allowance from a reciprocal employer becomes an employee to whom this Act applies, the employee is entitled to repay to the reciprocal employer's fund all amounts received by way of superannuation allowance, together with interest calculated at the rate provided for in section 18 (6), and be re-established in that fund in a position as near as possible to the position held in the fund immediately preceding commencement of the superannuation allowance, in which case the payment of the superannuation allowance shall cease and the employee shall commence making contributions and accruing service in respect of the new employment.
(3) If the payment of a superannuation allowance ceases under subsection (1), it shall cease at the end of the month in which contributions commence.
(4) If the payment of a superannuation allowance ceases under subsection (1) (a), the allowance payable to the contributor upon termination of the period of re-employment shall be calculated in accordance with section 14.
(5) If the payment of a superannuation allowance ceases under subsection (1) (b), the allowance payable to the contributor on termination of the period of new employment shall be determined as the sum of the allowance accrued during the period of new employment plus the allowance that has ceased, recalculated in accordance with section 14, but the assumed age of retirement for the purposes of the calculation shall be the contributor's age when the new allowance commences minus a time period equivalent to the time period for which the contributor received the superannuation allowance that ceased.
(6) The provisions of this section apply on or after January 1, 1993 to a former contributor who
(a) was or is in receipt of a superannuation allowance under this Act or from a reciprocal employer, and
(b) is currently an employee to whom this Act applies.
(7) Any funds held in trust under this section as it read on December 31, 1992 shall be dealt with by the commissioner in an equitable manner.
(8) An election made by a contributor under subsection (1) or
(2) is irrevocable.
(9) This section does not apply to a person who is receiving a superannuation allowance as a beneficiary.
25 The following Part is added:
19.2 (1) If an employee contribution required under section 6 (1) is limited by section 6 (1.1), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(2) If an employer contribution required under section 6 (1) is limited by section 6 (1.1), the difference between what would have been contributed and what is actually contributed under Part 2 shall be attributed to a contribution that would have been made under section 6 (1) (b).
(3) If an employee contribution required for a benefit under section 6 (3) or (4) is limited by section 6 (4.1), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(4) If an employee contribution required for a benefit under section 11 (1) (b), 11.1 or 13 is limited by section 11.2 or 13 (9), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(5) If an employer contribution required for a benefit under Part 2 is limited by section 6 (4.1), 11.2 or 13 (9), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this section.
19.3 (1) If a benefit that would be provided under section 6 (3) or (4) is limited by section 6 (4.1), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(2) If a benefit that would be provided under section 7, 11 (1) (b), 11.1 or 13 is limited by section 11.2 or 13 (9), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(3) If a benefit that would be provided under Part 2 is limited by section 14 (8), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(4) If a benefit that would be provided under section 16 is limited by section 16 (5), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(5) If a benefit that would be provided under section 17 is limited by section 17 (10), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
19.4 (1) If a person receives or is entitled to receive a supplementary allowance under section 6.3, the person shall receive or be entitled to receive a similar allowance with respect to the amount of a supplemental benefits allowance payable under section 19.3.
(2) The supplementary allowance provided under this section shall
(a) be the same percentage increase as that provided with respect to a superannuation allowance, and
(b) be provided in the same manner as a supplementary allowance provided with respect to a superannuation allowance.
19.5 (1) The contributions required under section 19.2 shall be made to the supplemental benefits account.
(2) The benefits provided under section 19.3 and the allowance provided under section 19.4 shall be paid from the supplemental benefits account.
(3) Payment of withholding taxes to Revenue Canada shall be paid from the supplemental benefits account.
19.6 If a benefit is payable under this Part, it shall be payable on the same terms and conditions as the original benefit payable under Part 2 unless
(a) the benefit was to be in the form of a commuted value transfer to a locked-in RRSP, in which case the payment of the commuted value amount under this Part will be made directly to the individual,
(b) the person has elected different options for the payment of Part 2 and Part 3 benefits, or
(c) different treatment is required under the Income Tax Act (Canada) or some other authority.
19.7 If a person in receipt of a superannuation allowance who is a subscriber to the Medical Services Plan of British Columbia continued under the Medical and Health Care Services Act elects in writing, filed with the commissioner, to have the monthly premium payable to the licensed carrier for members, the commissioner shall
(a) deduct monthly, from that person's superannuation allowance, 1/2 of the monthly premium payable to the Medical Services Plan of British Columbia, and
(b) deduct, from the employer contributions credited to the basic account on behalf of the contributor, 1/2 of the monthly premium, and pay those amounts to the Medical Services Plan of British Columbia on behalf of that person.
19.8 If a person who is in receipt of a supplemental benefits allowance under this Act or from a reciprocal employer becomes an employee to whom this Act applies, the provisions of section 19.1 respecting a superannuation allowance shall also apply to the supplemental benefits allowance.
26 The following heading is added after section 19.8:
27 The following section is added to Part 4:
Proof of age
19.9 (1) When requested by the commissioner, each contributor shall submit proof of age satisfactory to the commissioner.
(2) The commissioner may defer the granting of an allowance to a contributor or dependant of a contributor until satisfactory proof of age has been submitted.
28 Section 20 is amended by adding "or supplemental benefits allowance, or both," after "superannuation allowance".
29 Section 21 is amended by striking out "Provincial Secretary and Minister of Government Services is charged with the administration of this Act and" and substituting "minister".
30 Section 22 is amended
(a) in subsection (1) (a) by striking out "a superannuation allowance under it;" and substituting "a benefit under it;",
(b) in subsection (1) (b) by striking out "superannuation allowance or refund" and substituting "benefit", and
(c) in subsection (1) by striking out "and" at the end of paragraph (c), by adding "; and" at the end of paragraph (d), and by adding the following paragraph:
(e) determine the allocation of any contribution or benefit between Part 2 and Part 3 as is necessary to comply with the requirements of the Income Tax Act (Canada). , and
(d) in subsection (2) by striking out "superannuation allowance" in both places and substituting "benefit".
31 The following section is added:
23.1 If an actuarial valuation made under section 23 discloses that the revenues and assets of the fund are insufficient to provide the benefits under this Act, the Minister of Finance and Corporate Relations shall pay to the fund out of the consolidated revenue fund an amount specified by the Lieutenant Governor in Council.
32 Section 25 (a) is amended by adding "and supplemental benefits allowances" after "superannuation allowances".
33 Section 27 is amended by adding "and Corporate Relations" wherever it appears after "Minister of Finance".
34 Section 32 (1) is amended
(a) in paragraph (b) by adding "and supplemental benefits allowances" after "superannuation allowances",
(b) in paragraph (d) by adding ", supplemental benefits allowances" after "superannuation allowances",
(c) by repealing paragraph (h) and substituting the following:
(h) prescribing the method in which interest is to be applied; , and
(d) in paragraph (k) by striking out "and the rate at which it is to be paid,".
35 The amendments to the Pension (Municipal) Act, R.S.B.C. 1979, c. 317, made by B.C. Reg. 490/92, the Pension (Municipal) Benefits Standards Regulation, are repealed and, subject to this Act, the Pension (Municipal) Act is deemed to read as it did on December 31, 1992.
36 Section 1 (1) of the Pension (Municipal) Act, R.S.B.C. 1979, c. 317, is amended
(a) in the definition of "approved group disability income benefit plan" by striking out "Provincial Secretary" and substituting "minister",
(b) in the definition of "basic lifetime portion" by adding "as it read on December 31, 1992" after "contributions made by the employee under section 5 (3)",
(c) by repealing the definition of "common law spouse" and substituting the following:
"common law spouse" means a person with whom a contributor has cohabited for a continuous period of not less than
(a) 2 years, or
(b) one year, where there is a child resulting from the union, and with whom the contributor is cohabiting at the date of his or her death or the date at which he or she applies for a superannuation allowance or supplemental benefits allowance, or both, whichever first occurs; ,
(d) in the definition of "employee" by striking out "or" at the end of paragraph (d) and by adding the following paragraphs:
(f) a person who is not within paragraph (a), (c), (d) or (e) and who
(i) has completed 2 years of continuous employment with earnings from an employer of not less than 35% of the year's maximum pensionable earnings in each of 2 consecutive calendar years, and
(ii) elects to have the Act apply; or
(g) an employee designated by an employer, by resolution, to be included under the Act, subject to terms and conditions specified by the employer; ,
(e) in the definition of "employee" in the last line by striking out "Provincial Secretary;" and substituting "minister;",
(f) by repealing the definition of "highest average salary" and substituting the following:
"highest average salary" means the average monthly salary received by a contributor based on the contributor's highest salary during any 60 months of service preceding the date on which a superannuation allowance or supplemental benefits allowance is granted; ,
(g) by repealing the definition of "refund value",
(h) in the definition of "retirement annuity" by adding "as it read on December 31, 1992" after "under section 5 (3)" and by striking out "under section 7 (2), (3) and (4)" and substituting "under section 4.1 (4), (5) and (6)",
(i) in the definition of "superannuation allowance" by striking out "under this Act;" and substituting "under Part 2;", and
(j) by adding the following definitions:
"approved employer" means
(a) an employer to whom the Pension (College) Act applies,
(b) an employer to whom the Pension (Teachers) Act applies,
(c) an employer to whom the Pension (Public Service) Act applies,
(d) an employer to whom the Public Service Superannuation Act (Canada) applies,
(e) an employer to whom the Legislative Assembly Allowances and Pension Act applies,
(f) the Province,
(g) the British Columbia Railway Company,
(h) the British Columbia Hydro and Power Authority,
(i) an employer to whom the Workers' Compensation Board Pension Plan applies, or
(j) an employer who has been declared to be an approved employer by order of the minister;
"benefit" means an allowance or any other entitlement payable under this Act, and includes a return of contributions and any payment in a series of payments;
"commuted value" means, in relation to a benefit that a person has a present or future entitlement to receive under this Act, the actuarial present value of the benefit determined on the basis of actuarial assumptions and methods specified by the commissioner;
"contributor" means an employee in the service of the Crown or other employer to whom this Act applies from whose salary or other money contributions are being made to the fund or whose contributions to the fund have been discontinued during a period the employee is entitled to a monthly benefit under an approved group disability salary continuance plan;
"contributory service" means the period of time for which an employee makes or is deemed to make contributions and is entitled to accumulate credit towards a superannuation allowance;
"defined benefit limit" has the same meaning as in section 8500 (1) of the Income Tax Regulations under the Income Tax Act (Canada);
"pensionable age" means 5 years less than maximum retirement age;
"reciprocal employer" means
(a) an employer to whom the Pension (College) Act applies,
(b) an employer to whom the Pension (Public Service) Act applies,
(c) an employer to whom the Pension (Teachers) Act applies,
(d) the Workers' Compensation Board, or
(e) an employer who has been declared to be a reciprocal employer by order of the Lieutenant Governor in Council;
"RRSP" means a retirement savings plan that is within the meaning of the Income Tax Act (Canada) and that is registered under that Act;
"supplemental benefits allowance" means the total monthly annuity or allowance payable under Part 3;
"termination of membership" means,
(a) in the case of an employee who is covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor's behalf and the cessation of seniority rights under the collective agreement,
(b) in the case of an employee who is not covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor's behalf, or
(c) in the case of a contributor who is entitled to a disability benefit and whose contributions to the fund have been discontinued therefor, the cessation of entitlement to disability benefits;
"years of continuous employment" means years of employment for a continuous period of time with an employer including any breaks in employment of up to 26 weeks, but does not include any period in respect of which the member has received a benefit unless that benefit has been reinstated under section 6 or 18.1.
37 Section 1 (2) is repealed and the following is substituted:
(2) For the purposes of the definition of "employee" in subsection (1), an employee shall be deemed to be a member of the permanent staff of an employer when the employee
(a) completes the employee's probationary period, or
(b) has completed 2 years of continuous employment with earnings of not less than 35% of the year's maximum pensionable earnings in each of 2 consecutive calendar years.
38 The following heading is added before section 1.1:
39 Section 1.1 (1.1) and (3) is amended by adding "or supplemental benefits allowance" after "superannuation allowance".
40 Section 2 is amended
(a) in subsection (1) (t) by striking out "a corporation, association, board, commission or society" and substituting "a corporation, association, board, commission or society, and its employees employed on a permanent basis,",
(b) in subsection (1) by striking out "and" at the end of paragraph (dd) and by adding the following paragraphs:
(ff) the Greater Victoria Labour Relations Association, as employer, and those employees of it employed on a permanent basis and brought within the scope of this Act by resolution of the Greater Victoria Labour Relations Association;
(gg) the Education Relations Information Society, as employer, and those employees of it employed on a permanent basis and brought within the scope of this Act by resolution of the Education Relations Information Society;
(hh) the B.C. Health Services, as employer, and those employees of it employed on a permanent basis and brought within the scope of this Act by resolution of the B.C. Health Services; and
(ii) The B.C. Retired Teachers' Association, as employer, and those employees of it employed on a permanent basis and brought within the scope of this Act by resolution of the B.C. Retired Teachers' Association. ,
(c) in subsection (2) (a) by striking out "and whose age is at least 15 years less than the maximum retirement age specified in subsection (3), or whose eligibility under this Act has been approved by the employer",
(d) in subsection (2) (b) by striking out "or a casual employee" and by striking out "Provincial Secretary;" and substituting "minister;"
(e) by repealing subsection (2) (e),
(f) by repealing subsection (3) (b) and substituting the following:
(b) group 2 if the employee is a police officer or firefighter whose minimum retirement age is 55 years and whose maximum retirement age is 60 years; , and
(g) by repealing subsections (4) and (5) and substituting the following:
(4) Notwithstanding any other provision of this Act, a contributor who continues in employment after reaching maximum retirement age shall continue to be a contributor on the same basis as before reaching maximum retirement age, but in no case shall retirement and the commencement of a superannuation allowance be delayed beyond the end of the calendar year in which the contributor reaches the age of 71 years.
(5) When this Act commences to apply to an employee, it shall be deemed to continue to apply to that employee until termination of membership.
41 Sections 4 (2) (d), 25 (2) and 27 are amended by striking out "Minister of Finance" and substituting "Minister of Finance and Corporate Relations".
42 Section 4 (5) to (9) is repealed and the following is substituted:
(5) The fund shall be divided into the following 4 accounts:
(a) the basic account;
(b) the inflation adjustment account;
(c) the supplemental benefits account;
(d) the retirement annuity account.
(6) The basic account shall consist of all the assets of the fund other than assets in the inflation adjustment account, the supplemental benefits account and the retirement annuity account.
(7) The inflation adjustment account shall consist of
(a) contributions made under sections 4.1 (1) (g) and 5 (1) (c),
(b) net interest earned on the inflation adjustment account,
(c) income that
(i) earned on other fund assets held in the basic account in respect of pensions being paid, and
(ii) in excess of the interest anticipated in the most recent actuarial valuation under section 30, as determined by the commissioner, less
(d) amounts transferred to the basic account under section 16.1,
(e) amounts refunded to an employee under this Act in respect of contributions made under section 5 (1) (c) or otherwise transferred out of the fund in accordance with this Act, in respect of contributions made under section 4.1 (1) (g) or 5 (1) (c),
(f) amounts, as determined by the commissioner, in respect of a commuted value payment made to an employee or otherwise transferred out of the fund in accordance with section 13 (9) or 15 (1) or (2), and
(g) amounts contributed to the supplemental benefits account under subsection (8) (d) of this section.
(8) The supplemental benefits account shall consist of
(a) contributions to the fund provided for in Part 3,
(b) net interest earned on the supplemental benefits account,
(c) amounts from contributions under sections 4.1 (1) (a), (b), (c), (d), (e) or (f), as determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of benefits provided for in Part 3 but excepting inflation protection under section 18.4,
(d) amounts from contributions under section 4.1 (1) (g), as determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of providing inflation protection under section 18.4,
(e) amounts required under section 18.7 for the payment of 1/2 of the monthly premium payable to the Medical Services Plan of British Columbia,
(f) funds received from Revenue Canada pursuant to the administration of this account, and
(g) other amounts as may be prescribed by the Lieutenant Governor in Council.
(9) The retirement annuity account shall consist of
(a) the credit balance in the retirement annuity account on March 31, 1958, under the former Act, after deducting the value of the retirement annuities then being paid,
(b) voluntary contributions made under section 5 (3) as it read on December 31, 1992,
(c) contributions made under section 4.1 (4), (5) and (6), and
(d) net interest earned on the balance in the retirement annuity account.
(10) The retirement annuity account under subsection (9) shall
(a) have individual accounts maintained for each employee showing the amount of credit in the account, and
(b) be debited with the value of the retirement annuity portion of the benefits paid under sections 12, 14 and 15.
(11) An individual record shall be maintained for each employee in which contributions to the fund shall be recorded.
(12) The commissioner may return to a plan member or employer, or to the supplemental benefits account, any contributions that are inadvertently made to the basic account which are in excess of the maximum contributions set out in the Income Tax Act (Canada).
43 The following section is added:
4.1 (1) Each employer to whom this Act applies shall pay to the commissioner on the last day of each month the following amounts:
(a) during the period on and before June 30, 1993, an amount equal to the sum of
(i) 4.5% of the aggregate salaries payable during that month to group 1 employees who have not attained age 50, and 9% of the aggregate salaries payable during that month to group 1 employees who have attained age 50,
(ii) 8.3% of the aggregate salaries payable during that month to group 2 employees who have not attained age 45, and 16.6% of the aggregate salaries payable during that month to group 2 employees who have attained age 45,
(iii) 5.4% of the aggregate salaries payable during that month to group 3 employees who have not attained age 45, and 10.8% of the aggregate salaries payable during that month to group 3 employees who have attained age 45, and
(iv) 4.7% of the aggregate salaries payable during that month to group 4 employees who have not attained age 50, and 9.4% of the aggregate salaries payable during that month to group 4 employees who have attained age 50;
(b) during the period July 1, 1993 to June 30, 1994, an amount equal to the sum of
(i) 4.6% of the aggregate salaries payable during that month to group 1 employees who have not attained age 50, and 9.2% of the aggregate salaries payable during that month to group 1 employees who have attained age 50,
(ii) 8.4% of the aggregate salaries payable during that month to group 2 employees who have not attained age 45, and 16.8% of the aggregate salaries payable during that month to group 2 employees who have attained age 45,
(iii) 5.5% of the aggregate salaries payable during that month to group 3 employees who have not attained age 45, and 11% of the aggregate salaries payable during that month to group 3 employees who have attained age 45, and
(iv) 4.8% of the aggregate salaries payable during that month to group 4 employees who have not attained age 50, and 9.6% of the aggregate salaries payable during that month to group 4 employees who have attained age 50;
(c) during the period July 1, 1994 to June 30, 1995, an amount equal to the sum of
(i) 4.7% of the aggregate salaries payable during that month to group 1 employees who have not attained age 50, and 9.4% of the aggregate salaries payable during that month to group 1 employees who have attained age 50,
(ii) 8.5% of the aggregate salaries payable during that month to group 2 employees who have not attained age 45, and 17% of the aggregate salaries payable during that month to group 2 employees who have attained age 45,
(iii) 5.6% of the aggregate salaries payable during that month to group 3 employees who have not attained age 45, and 11.2% of the aggregate salaries payable during that month to group 3 employees who have attained age 45, and
(iv) 4.9% of the aggregate salaries payable during that month to group 4 employees who have not attained age 50, and 9.8% of the aggregate salaries payable during that month to group 4 employees who have attained age 50;
(d) during the period July 1, 1995 to June 30, 1996, an amount equal to the sum of
(i) 4.8% of the aggregate salaries payable during that month to group 1 employees who have not attained age 50, and 9.6% of the aggregate salaries payable during that month to group 1 employees who have attained age 50,
(ii) 8.5% of the aggregate salaries payable during that month to group 2 employees who have not attained age 45, and 17% of the aggregate salaries payable during that month to group 2 employees who have attained age 45,
(iii) 5.6% of the aggregate salaries payable during that month to group 3 employees who have not attained age 45, and 11.2% of the aggregate salaries payable during that month to group 3 employees who have attained age 45, and
(iv) 5% of the aggregate salaries payable during that month to group 4 employees who have not attained age 50, and 10% of the aggregate salaries payable during that month to group 4 employees who have attained age 50;
(e) during the period July 1, 1996 to June 30, 1997, an amount equal to the sum of
(i) 4.9% of the aggregate salaries payable during that month to group 1 employees who have not attained age 50, and 9.8% of the aggregate salaries payable during that month to group 1 employees who have attained age 50,
(ii) 8.5% of the aggregate salaries payable during that month to group 2 employees who have not attained age 45, and 17% of the aggregate salaries payable during that month to group 2 employees who have attained age 45,
(iii) 5.6% of the aggregate salaries payable during that month to group 3 employees who have not attained age 45, and 11.2% of the aggregate salaries payable during that month to group 3 employees who have attained age 45, and
(iv) 5.2% of the aggregate salaries payable during that month to group 4 employees who have not attained age 50, and 10.4% of the aggregate salaries payable during that month to group 4 employees who have attained age 50;
(f) during the period on and after July 1, 1997, an amount equal to the sum of
(i) 4.9% of the aggregate salaries payable during that month to group 1 employees who have not attained age 50, and 9.8% of the aggregate salaries payable during that month to group 1 employees who have attained age 50,
(ii) 8.5% of the aggregate salaries payable during that month to group 2 employees who have not attained age 45, and 17% of the aggregate salaries payable during that month to group 2 employees who have attained age 45,
(iii) 5.6% of the aggregate salaries payable during that month to group 3 employees who have not attained age 45, and 11.2% of the aggregate salaries payable during that month to group 3 employees who have attained age 45, and
(iv) 5.4% of the aggregate salaries payable during that month to group 4 employees who have not attained age 50, and 10.8% of the aggregate salaries payable during that month to group 4 employees who have attained age 50;
(g) the amount required to be paid under section 5 (1) (c) by its employees to whom this Act applies;
(h) an amount determined by the commissioner to be sufficient to liquidate by March 31, 1984 the obligations of the employer in respect of the service of the employer's employees prior to April 1, 1958 or the date on which this Act first applies to the employer, whichever is the later, and other obligations in respect of amounts paid or payable to former employees under the former Act or the Superannuation Act, R.S.B.C. 1936, c. 273, unless
(i) the employer has paid the employer's obligations in a lump sum or lump sums, or
(ii) the obligations arise under section 2 (1) (i), (j) or (k), in which case the employer shall liquidate the obligations by payment of a lump sum within one month after the employer determines such service to be pensionable service.
(2) The total of the payments required under subsection (1) (a), (b), (c), (d), (e) or (f) shall be reduced by the amount by which 6 1/2% of the aggregate salaries of the employees to whom this Act applies exceeds the deductions made under section 5 (1) (a) and (b).
(3) The commissioner may assign one rate to each employer for all the employer's employees, or for each class of employees designated by that employer and approved by the commissioner, representing the total of the payments required under subsection (1) (a), (b), (c), (d), (e) or (f), less the reduction required under subsection (2), and the employer shall calculate the rate as follows:
(a) for the period commencing on January 1, 1971, to and including June 30, 1971, by multiplying the total salaries on which contributions were paid by the employer during the month of July, 1970, for each group of employees designated under subsection (1) (a), (b), (c), (d), (e) or (f) by the percentage rate specified in the appropriate subsection (1) (a), (b), (c), (d), (e) or (f) respectively, and reducing that sum by the amount specified in subsection (2) and dividing the remainder by the total salaries on which contributions were paid during the month of July, 1970;
(b) for the period commencing on July 1, 1971, to and including June 30, 1972, and for each subsequent 12 month period commencing on July 1, by multiplying the total salaries on which contributions were paid by the employer during the immediately preceding calendar year for each group of employees designated under subsection (1) (a), (b), (c), (d), (e) or (f) on December 31 of the year preceding the commencement of the period, by the percentage rate specified in subsection (1) (a), (b), (c), (d), (e) or (f), and reducing the sum by the amount specified in subsection (2), and dividing the remainder by the total salaries on which contributions were paid during the preceding calendar year;
(c) if this Act is declared to apply to an employer, for the period ending June 30 of the next following calendar year, by multiplying the total salaries paid to those employees to whom the Act then applies at the date the declaration is made, for each group of employees designated under subsection (1) (a), (b), (c), (d), (e) or (f), and reducing the sum by the amount specified in subsection (2), and dividing the remainder by the total salaries being paid to those employees to whom the Act then applies at the date the declaration is made.
(4) Notwithstanding this Act, any employer to whom this Act applies may, if the approval of the minister has been obtained, enter into an agreement with the commissioner whereby the superannuation allowance, supplemental benefits allowance or refund for any employee or group of employees, or former employees, may be increased in such amount and with such modifications as are set out in the agreement.
(5) The agreement referred to in subsection (4) may make increase in superannuation allowances or supplemental benefits allowances, or both, conditional on increased contributions being made by the employees in the manner set out in the agreement.
(6) The contributions required to be paid in accordance with the terms of the agreement shall be paid in addition to any contributions or deductions required to be made under this Act.
(7) There shall be paid from the fund for reimbursing employers who, by agreement under this section, are providing increases in superannuation allowances or supplemental benefits allowances, or both, or supplementary allowances for retired employees and widows of employees or pensioners who were granted allowances on or before March 31, 1957 and who had, at that date, completed at least 10 years of pensionable service, amounts calculated as follows:
(a) 50› per month multiplied by the number of years of pensionable service, not exceeding 25 years in total, for a retired employee;
(b) 35› per month multiplied by the number of years of the spouse's pensionable service, not exceeding 25 years in total, for a widow of an employee or pensioner.
44 The following heading is added before section 5:
45 Section 5 is amended
(a) in subsection (1) by adding ", except where the employee elects under section 18.1 (1) (b) not to contribute," after "each employee to whom this Act applies",
(b) by repealing subsections (1.1) and (1.2) and substituting the following subsections:
(1.1) No further deductions shall be made from an employee's salary under subsection (1) when the employee has accrued 35 years of pensionable service, including service rendered by the employee in the service of all reciprocal employers.
(1.2) An employee whose contributions cease in accordance with subsection (1.1) shall be deemed to be a contributor making contributions for all other purposes of this Act.
(1.3) Contributions made under subsection (1) shall not exceed the maximums as set out in section 8503 (4) of the Income Tax Regulations under the Income Tax Act (Canada).
(1.4) Contributions made under subsection (1) in respect of a calendar year shall not be paid before January 1 of that year. ,
(c) in subsection (2) by striking out "section 7" in both places and substituting "section 4.1",
(d) by adding the following subsection:
(2.1) For the purpose of subsection (2), an employee shall not be permitted to make contributions in respect of absences after 1991 which exceed
(a) 3 years in respect of maternity or parental leave of absence, each of which is not to exceed one year from the birth or adoption date of the child, and
(b) 5 years in respect of any other allowable leaves of absence. ,
(e) by repealing subsection (3),
(f) in subsection (6) by striking out "under section 7, together with compound interest at the rate of 6% per year," and substituting "under section 4.1, together with interest at the rate calculated in section 13 (12),",
(g) in subsection (7) by striking out "together with compound interest at the rate of 6% per year," and substituting "together with interest at the rate calculated in section 13 (12),", and
(h) in subsection (9.1) by striking out "under section 7." and substituting "under section 4.1."
46 Section 5.1 (3) is amended by striking out "a reference to section 7 (1)." and substituting "a reference to section 4.1 (1)."
47 Section 6 is amended
(a) in subsection (1) by striking out "again becomes an employee," and substituting "again becomes a contributor,",
(b) in subsection (3) (b) by striking out "under section 17" and substituting "under section 13",
(c) by repealing subsection (4),
(d) in subsection (5) (d) by striking out "defined in section 10 (5)", and
(e) by adding the following subsection:
(7) If the employee does not comply with subsection (1), the employee shall be considered to be a new employee from the date on which the employee again became a contributor and shall have no rights or obligations with respect to the previous service.
48 Section 7 is repealed.
49 Section 8 (1) is amended by striking out "under section 7" and substituting "under section 4.1".
50 Section 9 is amended
(a) in subsection (1) (c) by striking out "under section 7 (1) (g);" and substituting "under section 4.1 (1) (h);",
(b) by adding the following subsections:
(1.1) For the purpose of this section, service before January 1, 1990 will only be recognized if the pension benefit for the year does not exceed 2/3 of the defined benefit limit for the year in which the benefits commence to be paid.
(1.2) Subsection (1.1) does not apply for a particular calendar year if
(a) a period in the particular year was pensionable service under a pension plan before June 8, 1990,
(b) the contributor was entitled, on June 8, 1990, pursuant to an arrangement in writing, to be provided with lifetime retirement benefits in respect of a period in the particular year, whether or not the entitlement was conditional on contributions being made, and
(c) at the beginning of the year, a period in the preceding year was pensionable service of the contributor and the contributor was disabled or on leave of absence.
(1.3) For service after December 31, 1989, only service for which Revenue Canada certification of past service pension adjustment has been received will be eligible for reinstatement under section 6. ,
(c) in subsection (2) by striking out "under section 7 (1) (g)." and substituting "under section 4.1 (1) (h).", and
(d) in subsection (4) by striking out "mentioned in section 10 (5)".
51 Section 10 is amended
(a) in subsection (1) (a) and (b) by striking out "10 years of pensionable service," and substituting "5 years of continuous employment or 5 years of contributory service,",
(b) by repealing subsections (2) and (3) and substituting the following:
(3) If, on and after January 1, 1993, an employee who is not entitled to a superannuation allowance under subsection (1) or under section 13 (7) or (8) resigns, is dismissed or is otherwise retired from service after having reached the minimum retirement age for the employee's group as specified in section 2 (3) and after completing less than 5 years of continuous employment or less than 5 years of contributory service, the employee is, on application, entitled to receive
(a) a superannuation allowance, calculated under section 12, after reaching the maximum retirement age for the employee's group, or
(b) a superannuation allowance, calculated under section 12, on or after reaching the minimum retirement age for the employee's group but the 2% referred to in section 12 (1) (b) shall be reduced by 5% of that amount for each year of age by which the employee's age is less than the maximum retirement age for the employee's group, and the amount shall be prorated for fractions of a year. ,
(c) in subsection (5) by repealing everything after "has not received a refund under this Act", and
(d) by repealing subsections (9) and (10).
52 Section 11 is amended
(a) by repealing subsection (2),
(b) in subsection (3) (d) by striking out "defined in section 10 (5)",
(c) by repealing subsections (5) and (5.1),
(d) by adding the following subsections:
(9) Locked-in pension credits shall not be transferred on behalf of a contributor to another employer's pension plan unless the contributor and employer make written commitments that the locking-in conditions required by this Act will continue to apply to such credits.
(10) For the purpose of this section, only contributions and service that comply with sections 5 (1.3) and (2.1), 9 (1.1) and 12 (6) will be recognized.
53 Section 12 is amended
(a) in subsection (1) (d) (ii) by striking out "under section 7 (2), (3) and (4)" and substituting "under section 4.1 (4), (5) and (6)", and
(b) by adding the following subsection:
(6) Pension benefits payable for service accrued after December 31, 1991 will be limited to the maximum lifetime retirement benefits as set out in section 8504 of the Income Tax Regulation under the Income Tax Act (Canada).
54 Section 13 is amended
(a) in subsection (1) (b) by striking out "a term of years certain," and substituting "a term not to exceed 15 years,",
(b) in subsection (1.1) by adding "by completion of a form specified by the commissioner" after "waives this requirement in writing", and
(c) by repealing subsection (6) and substituting the following:
(6) If the service of a contributor terminates or is terminated on or after January 1, 1993, the contributor is entitled to leave a contributory account on deposit in the fund to provide a deferred superannuation allowance calculated under section 12
(a) in respect of all pensionable service if the contributor has completed at least 10 years of service at the termination of membership, or
(b) in respect of pensionable service on and after January 1, 1993 if the contributor has completed 5 or more years of continuous employment or 5 or more years of contributory service at the termination of membership.
(7) A contributor who is entitled to a deferred pension may apply to receive the superannuation allowance
(a) on attaining the minimum retirement age for the group specified in section 2 (3), or
(b) on or after attaining an age that is not more than 5 years less than pensionable age, but the 2% referred to in subsection 12 (1) shall be reduced by 5% of that amount for each year of age by which the employee's age is less than pensionable age, and the reduction shall be prorated for fractions of a year.
(8) Subject to the terms and conditions set out in subsection (9), a contributor can elect to receive, in lieu of a deferred superannuation allowance, one of the following:
(a) a payment in the amount of the contributor's contributions, if any, made in respect of service before January 1, 1993, together with accumulated interest under subsection (12), plus a payment in the amount of the commuted value of the contributor's deferred superannuation allowance calculated in respect of service on and after January 1, 1993;
(b) a payment in the amount of the commuted value of the deferred superannuation allowance;
(c) a payment in the amount of the contributor's contributions, if any, made in respect of service before January 1, 1993, together with accumulated interest under subsection (12), and an entitlement to a deferred superannuation allowance calculated under section 12 in respect of service on and after January 1, 1993.
(9) A contributor may elect to receive a payment or payments under subsection (8) (a) or (b) only if
(a) at the time of termination of membership the contributor's age is more than 5 years under minimum retirement age, and
(b) the commissioner is satisfied that the commuted value payment is to be transferred on a locked-in basis to another pension plan, to an RRSP or to an insurance company or other financial institution in accordance with the requirements for funds locked-in under the Pension Benefits Standards Act.
(10) If on termination of membership a contributor is not entitled to a deferred superannuation allowance under subsection (6) in respect of some or all service, the contributor may elect
(a) to leave a contributory account on deposit in the fund, or
(b) to receive a payment in the amount of the contributor's contributions, together with accumulated interest under subsection (12), in respect of the period of service for which the contributor is not entitled to a deferred superannuation allowance.
(11) If a person leaves a contributory account on deposit in the fund under subsection (6) and dies before a superannuation allowance is granted under this Act, benefits shall be determined in accordance with section 12.
(12) The accumulated interest referred to in subsection (8) shall be determined in respect of periods before January 1, 1993 on the basis of rates that were in effect from time to time under section 17 as it read on December 31, 1992, and for all subsequent periods shall be the rate of interest calculated on the basis of the average yields of 5 year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B 14045.
(13) Interest shall be compounded annually to the first day of the month in which payment of the refund is made and shall be computed as if
(a) the contributions made during the fiscal year in which the refund is paid were made in a lump sum on the first day of the month in which payment of the refund is made, and
(b) the contributions made during any other fiscal year were made in a lump sum on December 31 of the calendar year in which the contributions were made.
55 Section 14 is amended
(a) in subsection (1) by striking out "10 years of pensionable service," and substituting "5 years of continuous employment or 5 years of contributory service,",
(b) in subsection (3) by adding "in writing" after "concur in certifying", and
(c) by adding the following subsection:
(7) Benefits payable under this section will be limited to the maximums as set out in section 8503 (3) of the Income Tax Regulations under the Income Tax Act (Canada).
56 Section 15 is amended
(a) by repealing subsections (1) to (3) and substituting the following:
(1) The superannuation allowance payable to the spouse of a contributor who dies in service, on or after January 1, 1993, is as follows:
(a) if the contributor dies before attaining minimum retirement age and after not less than 5 years of continuous employment or not less than 5 years of contributory service, the superannuation allowance payable shall be the amount calculated as if the contributor had been disabled and had retired from service immediately prior to death with an allowance determined in accordance with section 14 (1) and had converted to the joint life and last survivor plan described in section 13 (1) (c);
(b) if the contributor dies after attaining minimum retirement age, the superannuation allowance payable shall be the amount calculated as if the contributor had retired from service immediately prior to death and had converted to the joint life and last survivor plan described in section 13 (1) (c).
(2) In lieu of the allowance provided under subsection (1), the spouse may elect
(a) to convert the plan of allowance to the temporary life annuity under section 13 (1) (d) (ii) in combination with the joint life and last survivor plan under section 13 (1) (c), or
(b) to transfer the whole of the commuted value of the pension on a locked-in basis in accordance with the conditions referred to in section 13 (10) (b). ,
(b) by repealing subsections (5) to (6.1) and substituting the following:
(5) If a contributor dies in service and there is no surviving spouse, the person nominated by the contributor as beneficiary or, if there is no valid designation of beneficiary the personal representative of the estate in a representative capacity, shall be entitled to a payment equal to the greater of
(a) the deceased contributor's contributions together with accumulated interest, and
(b) the sum of the deceased contributor's contributions, together with accrued interest, made before January 1, 1993 plus 60% of the commuted value of the superannuation allowance, if any, to which the contributor would have been entitled in respect of service on and after January 1, 1993 had the contributor terminated membership immediately before death.
(5.1) If the person nominated in writing by the employee is, at the time of the employee's death, a minor, the commissioner shall pay the amount to the Public Trustee in trust for the minor.
(6) Notwithstanding any other provision of this section, if a contributor is divorced and remarried and, as a result of a written agreement or a court order made under the Family Relations Act, has nominated a former spouse to receive a lump sum payment on the death of the contributor, that nomination is valid and the benefit specified in subsection (1) shall be paid to that nominated beneficiary as if the contributor had died in service with no surviving spouse. ,
(c) by repealing subsection (7.1),
(d) by adding the following subsection:
(7.4) Notwithstanding any other provision of this Act, the remainder of the benefit, whether refund or pension, over the amount of the court order or separation agreement, shall be paid to the current spouse, beneficiary or the estate as it would have been had there been no court order or separation agreement. ,
(e) by repealing subsection (8) (a) and substituting the following:
(a) if the widow did not receive a lump sum payment at the time the allowance ceased due to remarriage or, having received a lump sum payment, elects to repay the amount of the lump sum payment without interest to the fund, on application in writing by the widow to the commissioner, the Lieutenant Governor in Council may authorize resumption of payment of the allowance to the widow with effect from the date specified by the Lieutenant Governor in Council, equal in amount to the amount the widow was receiving prior to the cessation of the allowance, together with the supplementary allowance determined under section 4.5 of the Municipal Superannuation (Amendment) Act, 1973, S.B.C. 1973, c.61, or. , and
(f) by adding the following subsection:
(11) Benefits payable under this section will be limited to the maximums as set out in section 8503 (2) of the Income Tax Regulations under the Income Tax Act (Canada).
57 Section 16 (10) is amended in paragraph (c) of the definition of "basic lifetime portion of the superannuation allowance" by striking out "under section 5 (3) or contributions made under section 7 (2), (3) and (4)" and substituting "under section 4.1 (4), (5) and (6)".
58 Section 16.1 (7) (a) is amended by striking out "under section 10 (2)" and substituting "under section 13 (7) or (8)".
59 Section 17 is repealed and the following is substituted:
17 If an employee is retired from service and becomes entitled to a superannuation allowance, the total or any portion of it on credit in the fund resulting from contributions on the employee's behalf under section 5 (3) as it read on December 31, 1992, shall, before the granting of the superannuation allowance, be refunded on demand.
60 Section 18 is amended
(a) by repealing subsection (4), and
(b) by repealing subsection (8) and substituting the following:
(8) A contributor or the surviving spouse of a deceased contributor may receive, in lieu of a superannuation allowance, a payment equal to the commuted value of the allowance if
(a) the monthly pension payment is less than 1/12 of 2% of the year's maximum pensionable earnings in the year of termination of membership, or
(b) the commuted value is not greater than 4% of the year's maximum pensionable earnings in the year of termination of membership.
(9) If a contributor or the surviving spouse of a deceased contributor is entitled to benefits that are locked-in under this Act, and the commissioner is satisfied that the person entitled to such benefit has a mental or physical disability that is likely to shorten considerably the person's life expectancy, the person may, before payment of the pension commences, elect to convert the pension to a payment or series of payments on a basis acceptable to the commissioner.
61 Section 18.1 is repealed and the following substituted:
18.1 (1) If a former contributor who is in receipt of a superannuation allowance under this Act becomes an employee to whom this Act applies, the employee may elect to do one of the following:
(a) repay to the fund all amounts received by way of superannuation allowance, together with interest calculated at the rate provided for in section 13 (12), and be reinstated in the fund and the employee's rights under it reinstated as near as possible to the position held at the time the superannuation allowance was originally granted, in which case the payment of the superannuation allowance shall cease and the employee shall commence making contributions and accruing service in respect of such re-employment;
(b) without repayment of amounts received by way of superannuation allowance or repayment of interest, commence making contributions and accruing service in respect of the re-employment, in which case the payment of the superannuation allowance shall cease;
(c) continue to receive a superannuation allowance, in which case the employee is not eligible to make contributions and accrue service in respect of the re-employment.
(2) If a person who is in receipt of a superannuation allowance from a reciprocal employer becomes an employee to whom this Act applies, the employee is entitled
(a) repay to the reciprocal employer's fund all amounts received by way of superannuation allowance, together with interest calculated at the rate provided for in section 13 (12), and
(b) to be re-established in that fund in a position as near as possible to the position the employee held in the fund immediately preceding commencement of the superannuation allowance, and payment of the superannuation allowance shall cease and the employee shall commence making contributions and accruing service in respect of the new employment.
(3) If the payment of a superannuation allowance ceases under subsection (1) or (2), it shall be deemed to have ceased at the end of the month in which contributions commence.
(4) If the payment of a superannuation allowance ceases under subsection (1) (a), the allowance payable to the contributor on termination of the period of re-employment shall be calculated in accordance with section 12.
(5) If the payment of a superannuation allowance ceases under subsection (1) (b), the allowance payable to the contributor upon termination of the period of new employment shall be determined as the sum of the allowance accrued during the period of new employment plus the allowance that has ceased, recalculated in accordance with section 12, but the assumed age of retirement for the purposes of the calculation shall be the contributor's age when the new allowance commences minus a time period equivalent to the time period for which the contributor received the superannuation allowance that ceased.
(6) The provisions of this section apply on or after January 1, 1993 to a former contributor who
(a) was or is in receipt of a superannuation allowance under this Act or a superannuation allowance from a reciprocal employer, and
(b) is currently an employee to whom this Act applies.
(7) Any funds held in trust under this section as it read on December 31, 1992 shall be dealt with by the commissioner in an equitable manner.
(8) An election made by a contributor under subsection (1) or (2) is irrevocable.
(9) This section does not apply to a person who is receiving a superannuation allowance as a beneficiary.
62 The following Part is added after section 18.1:
18.2 (1) If an employee contribution required under section 5 (1) is limited by section 5 (1.3), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(2) If an employee contribution required under section 5 (1) is limited by section 5 (1.3), the difference between what would have been contributed and what is actually contributed under Part 2 shall be attributed to a contribution that would have been made under section 5 (1) (b).
(3) If an employee contribution required for a benefit under section 5 (2) is limited by section 5 (2.1), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(4) If an employee contribution required for a benefit under section 9 (1) or 11 is limited by section 9 (1.1) or (1.2), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(5) If contributions under section 4.1 (6) cannot be included in Part 2, the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(6) If an employer contribution required for a benefit under Part 2 is limited by section 5 (2.1) or 9 (1.1), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
18.3 (1) If a benefit that would be provided under section 5 (2) is limited by section 5 (2.1), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(2) If a benefit that would be provided under section 9 (1) or 38 (1) (b) is limited by section 9 (1.1) and (1.2), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(3) If a benefit that would be provided under section 11 is limited by section 11 (10), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(4) If a benefit that would be provided under section 14 is limited by section 14 (7), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(5) If a benefit that would be provided under section 15 is limited by section 15 (11), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(6) If a benefit that would be provided under Part 2 is limited by section 12 (6), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
18.4 (1) If a person receives or is entitled to receive a supplementary allowance under section 16.1, the person shall receive or be entitled to receive a similar allowance with respect to the amount of a supplemental benefits allowance payable under section 18.3.
(2) The supplementary allowance provided under this section shall
(a) be the same percentage increase as that provided with respect to a superannuation allowance, and
(b) be provided in the same manner as a supplementary allowance provided with respect to a superannuation allowance.
18.5 (1) The contributions required under section 18.2 shall be made to the supplemental benefits account.
(2) The benefits provided under section 18.3 and the allowance provided under section 18.4 shall be paid from the supplemental benefits account.
(3) Payment of withholding taxes to Revenue Canada shall be paid from the supplemental benefits account.
18.6 If a benefit is payable under section 18.3 or 18.4, it shall be payable on the same terms and conditions as the original benefit payable under Part 2 unless
(a) the benefit was to be in the form of a commuted value transfer to a locked-in RRSP, in which case the payment of the commuted value amount under this Part will be made directly to the individual,
(b) the person has elected different options for the payment of Part 2 and Part 3 benefits, or
(c) different treatment is required under the Income Tax Act (Canada) or some other authority.
18.7 If a person in receipt of a superannuation allowance who is a subscriber to the Medical Services Plan of British Columbia continued under the Medical and Health Care Services Act elects in writing, filed with the commissioner, to have the monthly premium payable to the licensed carrier for members, the commissioner shall
(a) deduct monthly, from that person's superannuation allowance, 1/2 of the monthly premium payable to the Medical Services Plan of British Columbia, and
(b) withdraw, out of the sum paid to the commissioner under section 4.1 (1), the balance of the commissioner's share of the monthly premium, and pay those amounts to the Medical Services Plan of British Columbia on behalf of that person.
18.8 If a person who is in receipt of a supplemental benefits allowance under this Act or from a reciprocal employer becomes an employee to whom this Act applies, the provisions of section 18.1 respecting a superannuation allowance shall also apply to the supplemental benefits allowance.
63 The following heading is added after section 18.8:
64 Section 19 is amended by striking out "Provincial Secretary and Minister of Government Services is charged with the administration of this Act and" and substituting "minister".
65 Section 22 is amended by adding "and supplemental benefits allowances" after "superannuation allowances".
66 Section 23 is amended
(a) in paragraph (a) by striking out "a superannuation allowance under it;" and substituting "a benefit under it;",
(b) in paragraph (b) by striking out "superannuation allowance or refund" and substituting "benefit", and
(c) by striking out "and" at the end of paragraph (c), by adding "and" at the end of paragraph (d), and by adding the following paragraph:
(e) the allocation of any contribution or benefit between Part 2 and Part 3 as is necessary to comply with the requirements of the Income Tax Act (Canada).
67 Section 26 (b) is repealed and the following substituted:
(b) the trustees shall not make any investment except those investments permitted for a pension plan registered in compliance with the Pension Benefits Standards Act.
68 Section 28 is amended
(a) in the first line by adding "or supplemental benefits allowance" after "superannuation allowance", and
(b) in paragraph (b) by adding "or supplemental benefits allowance, or both," after "superannuation allowance".
69 Section 33 is amended by adding "or supplemental benefits allowance, or both," after "superannuation allowance".
70 Section 38 is amended
(a) by renumbering the section as section 38 (1),
(b) by striking out "Provincial Secretary" and substituting "minister",
(c) in paragraph (c) by striking out "he is entitled to a refund calculated under section 17, but payment of the refund" and substituting "payment of a refund or commuted value", and
(d) by adding the following subsection:
(2) For the purposes of subsection (1) (b), section 9 (1.1), (1.2) and (1.3) applies.
71 Section 39 (1) is amended
(a) in paragraph (a) by adding "and supplemental benefits allowances" after "superannuation allowances",
(b) in paragraph (c) by adding ", supplemental benefits allowances" after "superannuation allowances", and
(c) by repealing paragraph (i) and substituting the following:
(i) prescribing the method in which interest is to be applied; .
72 The amendments to the Pension (Public Service) Act, R.S.B.C. 1979, c. 318, made by B.C. Reg. 491/92, the Pension (Public Service) Benefits Standards Regulation, are repealed and, subject to this Act, the Pension (Public Service) Act is deemed to read as it did on December 31, 1992.
73 Section 1 (1) of the Pension (Public Service) Act, R.S.B.C. 1979, c. 318, is amended
(a) in the definition of "approved group disability salary continuance plan" by striking out "Provincial Secretary" and substituting "minister",
(b) in the definition of "basic lifetime portion" by adding "as it read on December 31, 1992" after "contributions made by the employee under section 10",
(c) in the definition of "commissioner" by striking out "section 24;" and substituting "section 4.4;",
(d) by repealing the definition of "common law spouse" and substituting the following:
"common law spouse" means a person with whom a contributor has cohabited for a continuous period of not less than
(a) 2 years, or
(b) one year, where there is a child resulting from the union, and with whom the contributor is cohabiting at the date of his or her death or the date at which he or she applies for a superannuation allowance or supplemental benefits allowance, or both, whichever first occurs; ,
(e) by repealing the definition of "highest average salary" and substituting the following:
"highest average salary" means the average monthly salary received by a contributor based on the contributor's highest salary during any 60 months of service preceding the date on which a superannuation allowance or supplemental benefits allowance is granted; ,
(f) in the definition of "pensionable service" by striking out "under section 34 (3) and (4)" and substituting "under section 61 (4) and (5)",
(g) in the definition of "regular employee" by striking out "continuous" and substituting "a continuous" in both places,
(h) in the definition of "superannuation allowance" by striking out "under this Act;" and substituting "under Part 2;", and
(i) by adding the following definitions:
"approved employer" means
(a) an employer to whom the Pension (College) Act applies,
(b) an employer to whom the Pension (Municipal) Act applies,
(c) an employer to whom the Pension (Teachers) Act applies,
(d) an employer to whom the Public Service Superannuation Act (Canada) applies, or
(e) an employer who has been declared to be an approved employer by order of the minister;
"benefit" means an allowance or any other entitlement payable under this Act, and includes a return of contributions and any payment in a series of payments;
"commuted value" means, in relation to a benefit that a person has a present or future entitlement to receive under this Act, the actuarial present value of the benefit determined on the basis of actuarial assumptions and methods specified by the commissioner;
"contributory service" means the period of time for which an employee makes or is deemed to make contributions and is entitled to accumulate credit towards a superannuation allowance;
"defined benefit limit" has the same meaning as in section 8500 (1) of the Income Tax Regulation under the Income Tax Act (Canada);
"pensionable age" means 5 years less than maximum retirement age;
"reciprocal employer" means
(a) an employer to whom the Pension (College) Act applies,
(b) an employer to whom the Pension (Municipal) Act applies,
(c) an employer to whom the Pension (Teachers) Act applies,
(d) the Workers' Compensation Board, or
(e) an employer who has been declared to be a reciprocal employer by order of the Lieutenant Governor in Council;
"RRSP" means a retirement savings plan that is within the meaning of the Income Tax Act (Canada) and that is registered under that Act;
"supplemental benefits allowance" means the total monthly annuity or allowance payable under Part 3;
"termination of membership" means,
(a) in the case of an employee who is covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor's behalf and the cessation of seniority rights under the collective agreement,
(b) in the case of an employee who is not covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor's behalf, or
(c) in the case of a contributor who is entitled to a disability benefit and whose contributions to the fund have been discontinued therefor, the cessation of entitlement to disability benefits;
"years of continuous employment" means years of employment for a continuous period of time with an employer including any breaks in employment of up to 26 weeks, but does not include any period in respect of which the member has received a benefit unless that benefit has been reinstated under section 13 or 21.1.
74 Section 1 is amended
(a) in subsection (2) by adding "or supplemental benefits allowance, or both" after "superannuation allowance", and
(b) in subsection (4) by adding "or supplemental benefits allowance, or both," after "superannuation allowance".
75 The following heading is added before section 1.1:
76 Section 1.1 (1.1) and (3) is amended by adding "or supplemental benefits allowance" after "superannuation allowance".
77 Section 2 is amended
(a) in subsection (1) (f) by adding "Professional Employees Association, B.C. Ferry and Marine Workers' Union," after "British Columbia Heritage Trust,",
(b) in subsection (1) by repealing paragraph (g) and substituting the following:
(g) every employee of the employers mentioned in paragraph (f) to whom this Act is declared to apply by order of the commissioner; , and
(c) by repealing subsection (3) and substituting the following:
(3) When this Act commences to apply to an employee, it shall be deemed to continue to apply to that employee until termination of membership.
78 Sections 3, 6 (1), (2) and (4), 6.1 (1), 7 (1) and (2), 37, 39 (5), 45 (3) and 46 (1) are amended by striking out "Minister of Finance" wherever it appears and substituting "Minister of Finance and Corporate Relations".
79 The following sections are added:
Constitution of fund
4.1 (1) All contributions in the hands of the Minister of Finance and Corporate Relations under this Act shall be placed in a fund in the Ministry of Finance and Corporate Relations to be known as the Public Service Superannuation Fund.
(2) The Minister of Finance and Corporate Relations has the discretion to invest any money at the credit of the fund, not required for immediate use, in investments permitted for a pension plan registered in compliance with the Pension Benefits Standards Act.
(3) The fund shall be divided into the following 3 accounts:
(a) the basic account;
(b) the inflation adjustment account;
(c) the supplemental benefits account.
(4) The basic account shall consist of all the assets of the fund other than assets in the inflation adjustment account and the supplemental benefits account.
(5) The inflation adjustment account shall consist of
(a) contributions made under sections 4.2 (1) (c) (iii), (d) (iii), (e) (iii), (f) (iii), (g) (iii) or (h) (iii) and 6 (1) (c),
(b) net interest earned on the inflation adjustment account, and
(c) income that is
(i) earned on other fund assets held in the basic account in respect of pensions being paid, and
(ii) in excess of the interest anticipated in the most recent actuarial valuation under section 4.9, as determined by the commissioner, less
(d) amounts transferred to the basic account under section 42.1,
(e) amounts refunded to an employee under this Act in respect of contributions made under section 6 (1) (c) or otherwise transferred out of the fund in accordance with an agreement made under section 59,
(f) amounts, as determined by the commissioner, in respect of a commuted value payment made to an employee or otherwise transferred out of the fund in accordance with section 18 (4.02) or 20 (2)(b) or (3)(b), and
(g) amounts contributed to the supplemental benefits account under subsection (6) (d) of this section.
(6) The supplemental benefits account shall consist of
(a) contributions to the fund provided for in Part 3,
(b) net interest earned on the supplemental benefits account,
(c) amounts from contributions under section 4.2 (1) (c) (i) and (ii), (d) (i) and (ii), (e) (i) and (ii), (f) (i) and (ii), (g) (i) and (ii) or (h) (i) and (ii), as determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of benefits provided for in section 49,
(d) amounts from contributions under section 4.2 (1) (c) (iii), (d) (iii), (e) (iii), (f) (iii), (g) (iii) or (h) (iii), as determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of providing inflation protection under section 50,
(e) funds received from Revenue Canada pursuant to the administration of this account, and
(f) other amounts as may be prescribed by the Lieutenant Governor in Council.
(7) The commissioner may return to a plan member or employer, or to the supplemental benefits account, any contributions that are inadvertently made to the basic account which are in excess of the maximum contributions set out in the Income Tax Act (Canada).
4.2 (1) Each time a deduction is made from the salary of an employee under section 6 or a contribution is made by an employee under section 7,
(a) the employer, if the employee is
(i) an employee of an employer designated in Schedule B, or
(ii) a person to whom this Act is declared to apply after April 1, 1983 by order of the Lieutenant Governor in Council, or
(b) the Minister of Finance and Corporate Relations, in any case other than under paragraph (a), shall contribute to the fund an amount as follows:
(c) during the period on and before June 30, 1993, an amount equal to the sum of
(i) 6.75% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 8.25% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1.25% of the employee's entire salary;
(d) during the period July 1, 1993 to June 30, 1994, an amount equal to the sum of
(i) 6.95% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 8.45% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1.25% of the employee's entire salary;
(e) during the period July 1, 1994 to June 30, 1995, an amount equal to the sum of
(i) 7.15% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 8.65% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1.25% of the employee's entire salary;
(f) during the period July 1, 1995 to June 30, 1996, an amount equal to the sum of
(i) 7.35% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 8.85% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1.25% of the employee's entire salary;
(g) during the period July 1, 1996 to June 30, 1997, an amount equal to the sum of
(i) 7.55% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 9.05% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1.25% of the employee's entire salary;
(h) during the period on and after July 1, 1997, an amount equal to the sum of
(i) 7.75% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 9.25% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1.25% of the employee's entire salary.
(2) If an employee contributes an amount to the fund under section 13 or 61 (4) or (6),
(a) the employer, if the employee is
(i) an employee of an employer designated in Schedule B, or
(ii) a person to whom this Act is declared to apply after April 1, 1983 by order of the Lieutenant Governor in Council, or
(b) the Minister of Finance and Corporate Relations, in any case other than under paragraph (a), shall provide an equal amount as a contribution to the fund.
(3) The Lieutenant Governor in Council may, by regulation, add an employer to Schedule B.
4.3 An account shall be kept of all money received and paid out under this Act and of the assets and liabilities appertaining to the granting of superannuation allowances or supplemental benefits allowances, or both, under those provisions.
4.4 (1) For the administration and carrying out of this Act, there shall be continued in the ministry an officer called the superannuation commissioner.
(2) In addition to the duties of the commissioner under this Act, the commissioner shall perform duties assigned to the commissioner by the minister or by any other Act.
4.5 Subject to this Act and the regulations, the commissioner may determine any of the following:
(a) whether or not a person is within the scope of this Act;
(b) whether or not a person within the scope of this Act is entitled to receive a benefit under this Act;
(c) the amount of any benefit granted under this Act;
(d) the allocation of any contribution or benefit between Part 2 and Part 3 as is necessary to comply with requirements of the Income Tax Act (Canada).
4.6 (1) All salaries and expenses necessarily incurred in the administration of this Act, as determined and certified by the commissioner, shall be paid out of the fund or out of the consolidated revenue fund and, to the extent to which they are paid out of the consolidated revenue fund, shall be reimbursed to the consolidated revenue fund out of the fund.
(2) If an order is made under section 39 (4) of the Financial Administration Act, that order prevails over subsection (1) of this section to the extent that it conflicts with subsection (1).
4.7 (1) If money is required to be provided or paid by the Minister of Finance and Corporate Relations or otherwise on behalf of the Crown as employer under this Act, that money shall be provided or paid by the Minister of Finance and Corporate Relations from money appropriated for that purpose by the Legislative Assembly or, if no appropriation is available for that purpose, from the consolidated revenue fund.
(2) In case a deficiency arises between the money otherwise available under this Act for the payment of a superannuation allowance or supplemental benefits allowance, or both, or part of an allowance granted under or based on this Act, or granted under the corresponding provisions of the former Act in respect of a person to whom Part II of the former Act applied, and the amounts necessary to meet the payment of that allowance or part, as the case may be, the amount of the deficiency shall be paid from the consolidated revenue fund.
4.8 The minister shall, as soon as possible after the close of each fiscal year, lay before the Legislative Assembly annually a return containing a full and clear statement and account of all business done under this Act, and showing the condition of the fund.
4.9 (1) For the purposes of this Act, the commissioner may employ an actuary who must be a Fellow of the Canadian Institute of Actuaries.
(2) The actuary shall make all actuarial reports and computations required by the commissioner and make the valuations of the assets and liabilities under this Act.
(3) The first valuation shall be made as on March 31, 1964 and after that at the expiration of each consecutive period of not more than 5 years.
80 The following heading is added before section 5:
81 Section 6 is amended
(a) in subsection (1) by adding ", except where the employee is not eligible under section 21.1 (1) (c) not to contribute," after "each employee to whom this Act applies",
(b) by adding the following subsections:
(1.1) Contributions made under subsection (1) shall not exceed the maximums as set out in section 8503 (4) of the Income Tax Regulations under the Income Tax Act (Canada).
(1.2) Contributions made under subsection (1) in respect of a calendar year shall not be paid before January 1 of that year. ,
(c) in subsection (2) (c) by striking out "Provincial Secretary" and substituting "minister", and
(d) by repealing subsections (5) and (5.1) and substituting the following:
(5) No further deductions shall be made from an employee's salary under subsection (1) when the employee has accrued 35 years of pensionable service, including service rendered by the employee in the service of all reciprocal employers.
(5.1) An employee whose contributions cease in accordance with subsection (5) shall be deemed to be a contributor making contributions for all other purposes of this Act.
82 Section 6.1 is amended
(a) in subsection (1) by striking out "under section 8, together with compound interest at the rate of 6% per year payable annually." and substituting "under section 4.2, together with interest at the rate calculated in section 12 (4).",
(b) in subsection (2) by striking out "together with compound interest at the rate of 6% per year payable annually." and substituting "together with interest at the rate calculated in section 12 (4).", and
(c) in subsection (6) by striking out "under section 8." and substituting "under section 4.2."
83 Section 7 is amended by
(a) in subsection (2) by striking out "section 8 (1)." and substituting "section 4.2 (2).", and
(b) by adding the following subsection:
(3) For the purpose of subsection (1), an employee shall not be permitted to make contributions in respect of absences after 1991 which exceed
(a) 3 years in respect of maternity or parental leave of absence, each of which is not to exceed one year from the birth or adoption date of the child, and
(b) 5 years in respect of any other allowable leaves of absence.
84 Sections 8 to 12 are repealed and the following is substituted:
12 (1) A separate contributory account shall be kept for each contributor showing the amount in the fund at the credit of the contributor.
(2) Subject to subsection (3), interest shall be credited by the Minister of Finance and Corporate Relations to each account on the last day of March and September in each year, computed on the amount at the credit of the account on the last preceding first day of October and April respectively, at the rate of interest in subsection (4).
(3) If a person becomes entitled to have a benefit paid, interest at the rate of interest in subsection (4) shall be credited to the account from the date of the last semi-annual credit as provided for in subsection (2) to the end of the month preceding the date of payment of the benefit or the first payment of the benefit in a series of payments.
(4) The rate of interest to be credited to each contributory account shall be the rate of interest calculated on the basis of the average yields of 5 year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B 14045.
85 Section 13 is amended
(a) in subsection (2) by adding "and the employee shall have no rights or obligations with respect to the previous service" after "contributor to the fund",
(b) in subsection (3) (b) by striking out "that occurs on or after October 1, 1984." and substituting "between October 1, 1984 and December 31, 1992;",
(c) in subsection (3) by adding the following paragraph:
(c) at the rate provided from time to time under section 12 (4) for an account maintained under sections 4.2, 6 and 7, for any part of the period that occurs on or after January 1, 1993. ,
(d) by repealing subsection (4),
(e) in subsection (5) by striking out "Provincial Secretary," and substituting "minister,", and
(f) by repealing subsection (5) (d) and substituting it with the following:
(d) is in the service of one or more approved employers provided the employee becomes and remains entitled to receive a pension or superannuation allowance as the result of that service; .
86 The following section is added:
13.1 (1) For the purpose of sections 13, 39 (5) and 61 (4), (5) and (6), service before January 1, 1990 will be recognized only if the pension benefit for the year does not exceed 2/3 of the defined benefit limit for the year in which the benefits commence to be paid.
(2) Subsection (1) does not apply for a particular calendar year if
(a) a period in the particular year was pensionable service under a pension plan before June 8, 1990,
(b) the contributor was entitled, on June 7, 1990, pursuant to an arrangement in writing, to be provided with lifetime retirement benefits in respect of a period in the particular year, whether or not the entitlement was conditional on contributions being made, and
(c) at the beginning of the particular year, a period in the preceding year was pensionable service of the contributor and the contributor was disabled or on leave of absence.
(3) For service after December 31, 1989, only service for which Revenue Canada certification of past service pension adjustment has been received will be eligible for reinstatement under section 13.
87 Section 14 is repealed.
88 Section 15 is amended
(a) by repealing subsections (1), (1.1) and (6) and substituting the following:
(1) A contributor is, on application, entitled to
(a) a superannuation allowance calculated under section 17 if, having entered the service of the employer before April 1, 1958 and having reached an age not more than 10 years under the maximum retirement age or having become totally and permanently disabled within the meaning of paragraph (b) (iii), the contributor is voluntarily or compulsorily retired from the service, or
(b) a superannuation allowance calculated under section 19 if the contributor is retired from service on or after January 1, 1993,
(i) having reached an age not more than 10 years under the maximum retirement age and after not less than 35 years of pensionable service,
(ii) having reached pensionable age and after not less than 5 years of continuous employment or not less than 5 years of contributory service, or
(iii) having completed 5 or more years of continuous employment or 5 or more years of contributory service and having been declared in writing by 2 medical practitioners, one of whom shall be appointed by the commissioner, to be totally and permanently unable, due to mental or physical disability, to fill or occupy any position the duties of which, in the opinion of the employer, may reasonably be expected to be carried out.
(1.1) If an allowance is granted under subsection (1) (b) (iii) due to total and permanent disability, the number of years of service used in making the calculation under section 19 shall be increased by the lesser of
(a) the number of years by which the contributor's age, at the date the allowance is granted, is 5 years less than pensionable age, and
(b) the amount required to bring the total number of years up to 25.
(1.2) The superannuation allowance to which a contributor becomes entitled under subsection (1) (b) (iii) shall be granted only on application made by the contributor after retirement and within 2 years after the date of the last contribution made to the fund by the contributor.
(1.3) Benefits payable under this section will be limited to the maximums as set out in section 8503 (3) of the Income Tax Regulations under the Income Tax Act (Canada).
(1.4) A contributor who has less than 5 years of continuous employment or less than 5 years of contributory service and has reached maximum retirement age is entitled to a superannuation allowance calculated under section 19.
(1.5) A contributor who has less than 5 years of continuous employment or less than 5 years of contributory service and has reached pensionable age is entitled to a superannuation allowance under section 19 but the 2% referred to in section 19 (1) shall be reduced by 5% for each year the contributor is under maximum retirement age, and the reduction shall be prorated for fractions of years.
(6) Subject to subsection (6.1), a contributor who continues in employment after reaching maximum retirement age shall continue to be a contributor on the same basis as before reaching maximum retirement age, but in no case shall retirement and the commencement of a superannuation allowance be delayed beyond the end of the calendar year in which the contributor reaches the age of 71 years.
(6.1) A contributor who reached maximum retirement age before January 1, 1993 may elect to have the provisions of subsection (6), as it read on December 31, 1992, continue to apply to the contributor. ,
(b) in subsections (3) and (5) by striking out "section 8" and substituting "section 4.2" in each case, and
(c) in subsection (7) by striking out "for the purpose of section 19 (7)" and substituting "for the purpose of subsection (1.1)".
89 Section 16 is amended
(a) by repealing subsection (2),
(b) in subsection (3) by striking out "Provincial Secretary," and substituting "minister,",
(c) by repealing subsection (3) (d) and substituting the following:
(d) is in the service of one or more approved employers provided the employee becomes or remains entitled to receive a pension or superannuation allowance as a result of that service; ,
(d) in subsection (3) (e) by striking out "in section 34 (3); or" and substituting "in section 61 (4); or",
(e) by repealing subsections (5) and (5.1), and
(f) by adding the following subsection:
(9) For the purpose of this section, only contributions and service that comply with sections 6 (1.1), 7 (3), 13.1 and 19 (9) will be recognized.
90 Section 17 (5) is repealed.
91 Section 18 is amended
(a) in subsection (1) (b) by striking out "a term of years certain," and substituting "a term not to exceed 15 years,",
(b) in subsection (1.1) by adding "by completion of a form specified by the commissioner" after "waives this requirement in writing",
(c) by repealing subsection (4) and substituting the following:
(4) If the service of a contributor terminates or is terminated on or after January 1, 1993, the contributor is entitled to leave a contributory account on deposit in the fund to provide a deferred superannuation allowance calculated under section 19
(a) in respect of all pensionable service if the contributor has completed at least 10 years of service at the termination of membership, or
(b) in respect of pensionable service on and after January 1, 1993 if the contributor has completed 5 or more years of continuous employment or 5 or more years of contributory service at the termination of membership.
(4.01) A contributor who is entitled to a deferred superannuation allowance may apply to receive the superannuation allowance on or after attaining an age that is not more than 5 years less than pensionable age, but the 2% referred to in section 19 (1) shall be reduced by 5% of that amount for each year of age by which the employee's age is less than pensionable age, and the reduction shall be prorated for fractions of a year.
(4.02) Subject to the terms and conditions set out in subsection (4.03), a contributor can elect to receive, in lieu of a deferred superannuation allowance, one of the following:
(a) a payment in the amount of the commuted value of the deferred superannuation allowance;
(b) a payment in the amount of the contributor's contributions, if any, made in respect of service before January 1, 1993, together with accumulated interest under section 12, plus a payment in the amount of the commuted value of the contributor's deferred superannuation allowance calculated in respect of service on and after January 1, 1993;
(c) a payment in the amount of the contributor's contributions, if any, made in respect of service before January 1, 1993, together with accumulated interest under section 12, and an entitlement to a deferred superannuation allowance calculated under section 19 in respect of service on and after January 1, 1993.
(4.03) A contributor may elect to receive a payment or payments under subsection (4.02) only if
(a) at the time of termination of membership the contributor's age is more than 5 years under pensionable age, and
(b) the commissioner is satisfied that the commuted value payment is to be transferred on a locked-in basis to another pension plan, to an RRSP or to an insurance company or other financial institution in accordance with the requirements for funds locked-in under the Pension Benefits Standards Act.
(4.04) A former contributor who has not received a refund under this Act and who enters the service of an approved employer within 3 years of making the last contribution to the fund and remains in service with that employer long enough to qualify for a superannuation allowance or pension under that employer's pension plan may elect to have years of service with approved employers added to service under this Act for the purpose of determining eligibility to receive a deferred superannuation allowance under subsection (4) and the period of time, authorized by the commissioner, during which the contributor
(a) is a student in full time attendance at a university,
(b) is undergoing treatment for a war disability,
(c) is making contributions during absence in accordance with section 7 (1),
(d) is in the service of one or more approved employers provided the contributor becomes or remains entitled to receive a pension or superannuation allowance as a result of that service,
(e) is in the service of Her Majesty's Forces as described in section 61 (4), or
(f) is not in service but is caring for a child of the employee while the child is under 7 years of age, is not included in the calculation of the period of 3 years for the purpose of this subsection.
(4.05) If on termination of membership a contributor is not entitled to a deferred superannuation allowance under subsection (4) in respect of some or all service, the contributor may elect
(a) to leave a contributory account on deposit in the fund, or
(b) to receive a payment in the amount of the contributor's contributions, together with accumulated interest under section 12, in respect of the period of service for which the contributor is not entitled to a deferred superannuation allowance.
(4.06) If a person leaves a contributory account on deposit in the fund under subsection (4) and dies before a superannuation allowance is granted under this Act, benefits shall be determined in accordance with section 20. ,
(d) in subsection (4.1) by striking out "notwithstanding subsection (4) (a)," and substituting "notwithstanding subsection (4.01),",
(e) by repealing subsections (5), (6) and (7), and
(f) in subsection (9) by striking out "under subsection (4) (a)" and substituting "under subsection (4)".
92 Section 18.1 is amended
(a) by repealing subsections (4) and (5) and substituting the following:
(4) Subsections (2) and (3) do not apply to a person who receives an amount under subsection (6). , and
(b) in subsection (7) by adding "as it read on December 31, 1992" after "under section 10".
93 Section 19 is amended
(a) in subsection (1) by striking out "except that authorized by section 17 (5),",
(b) by repealing subsection (4) (b) and substituting the following:
(b) the amount, if any, on credit in the fund as the result of contributions under section 10 as it read on December 31, 1992, and authorized by the contributor to be transferred and added to the amount mentioned in paragraph (a); and ,
(c) in subsection (5) by adding "as it read on December 31, 1992" after "voluntary contributions under this Act",
(d) in subsection (6) by adding "as it read on December 31, 1992" after "under section 10",
(e) by repealing subsection (7), and
(f) by adding the following subsection:
(9) Pension benefits payable for service accrued after December 31, 1991 will be limited to the maximum lifetime retirement benefits as set out in section 8504 of the Income Tax Regulations under the Income Tax Act (Canada).
94 Section 20 is repealed and the following is substituted:
20 (1) The superannuation allowance payable to the spouse of a contributor who dies in service, on or after January 1, 1993, is as follows:
(a) if the contributor dies before attaining pensionable age and after not less than 5 years of continuous employment or not less than 5 years of contributory service, the superannuation allowance payable shall be the amount calculated as if the contributor had retired from service immediately before death with a disability allowance determined in accordance with section 15 (1) (b) (iii) and had converted to the joint life and last survivor plan described in section 18 (1) (c);
(b) if the contributor dies after attaining pensionable age, the superannuation allowance payable shall be the amount calculated as if the contributor had retired from service immediately before death and had converted to the joint life and last survivor plan described in section 18 (1) (c).
(2) In lieu of the allowance provided under subsection (1), the spouse may elect
(a) to convert the plan of allowance to the temporary life annuity under section 18 (1) (d) (ii) in combination with the joint life and last survivor plan under section 18 (1) (c), or
(b) to transfer the whole of the commuted value of the pension on a locked-in basis in accordance with the conditions referred to in section 18 (4.03) (b).
(3) If a contributor dies in service and there is no surviving spouse, the person nominated by the contributor as beneficiary or, if there is no valid designation of beneficiary the personal representative of the estate in a representative capacity, shall be entitled to a payment equal to the greater of
(a) the deceased contributor's contributions together with accumulated interest, and
(b) the sum of the deceased contributor's contributions, together with accumulated interest, made before January 1, 1993 plus 60% of the commuted value of the superannuation allowance, if any, to which the contributor would have been entitled in respect of service on and after January 1, 1993 had the contributor terminated membership immediately before death.
(4) Notwithstanding any other provision of this section, if a contributor is divorced and remarried and, as a result of a written agreement or a court order made under the Family Relations Act, has nominated a former spouse to receive a lump sum payment on the death of the contributor, that nomination is valid and the benefit specified in subsection (1) shall be paid to that nominated beneficiary as if the contributor had died in service with no surviving spouse.
(5) Notwithstanding any other Part, the remainder of the benefit referred to in subsection (4), whether refund or pension, over the amount of the court order or written agreement, shall be paid to the current spouse, beneficiary or the estate as it would have been had there been no court order or written agreement.
(6) If payment of an allowance to a surviving spouse of an employee granted under this Act ceased before November 1, 1973 in accordance with the provisions of this Act due to the remarriage of the surviving spouse, and if the surviving spouse
(a) did not receive a lump sum payment at the time the allowance ceased due to remarriage or, having received a lump sum payment, elects to repay the amount of the lump sum payment without interest to the fund, on application in writing by the surviving spouse to the commissioner, the Lieutenant Governor in Council may authorize resumption of payment of the allowance to the surviving spouse with effect from the date specified by the Lieutenant Governor in Council, equal in amount to the amount the surviving spouse was receiving before the cessation of the allowance, together with the supplementary allowance determined under section 44 of the Civil Service Superannuation (Amendment) Act, 1973, S.B.C. 1973, c. 13, or
(b) received a lump sum payment at the time the allowance ceased due to remarriage and does not elect to repay the lump sum payment under paragraph (a), and if the Lieutenant Governor in Council authorizes resumption of payment of the allowance to the surviving spouse under paragraph (a), the amount of allowance shall be reduced by an amount that is the actuarial equivalent of the lump sum payment received by the surviving spouse.
(7) If a surviving spouse remarried before November 1, 1973 and was receiving a monthly allowance under this Act before October 31, 1973 in an amount less than the monthly amount the surviving spouse had been receiving immediately before remarriage, the amount of the surviving spouse's monthly allowance shall be increased with effect from November 1, 1973 to be equal to the amount the surviving spouse was receiving immediately before remarriage, in addition to the supplementary allowance determined under section 44 of the Civil Service Superannuation (Amendment) Act, 1973, S.B.C. 1973, c.13.
(8) If a surviving spouse remarried on or after November 1, 1973, the amount of monthly allowance shall not be affected by reason of remarriage.
(9) Benefits payable under this section will be limited to the maximums as set out in section 8503 (2) of the Income Tax Regulations under the Income Tax Act (Canada).
95 Section 21 is amended by adding the following subsections:
(6) A contributor or the surviving spouse of a deceased contributor may receive, in lieu of a superannuation allowance, a payment equal to the commuted value of the allowance if
(a) the monthly pension payment is less than 1/12 of 2% of the year's maximum pensionable earnings in the year of termination of membership, or
(b) the commuted value is not greater than 4% of the year's maximum pensionable earnings in the year of termination of membership.
(7) If a contributor or the surviving spouse of a deceased contributor is entitled to benefits that are locked-in under this Act, and the commissioner is satisfied that the person entitled to the benefits has a mental or physical disability that is likely to shorten considerably the person's life expectancy, the person may, before payment of the pension commences, elect to convert the pension to a payment or series of payments on a basis acceptable to the commissioner.
96 Section 21.1 is repealed and the following substituted:
21.1 (1) If a former contributor who is in receipt of a superannuation allowance under this Act becomes an employee to whom this Act applies, the employee may elect to do one of the following:
(a) repay to the fund all amounts received by way of superannuation allowance, together with interest calculated at the rate provided for in section 12 (4), and be reinstated in the fund and the employee's rights under the fund reinstated as near as possible to the position held at the time the superannuation allowance was originally granted, in which case the payment of the superannuation allowance shall cease and the employee shall commence making contributions and accruing service in respect of the re-employment;
(b) without repayment of amounts received by way of superannuation allowance or repayment of interest, commence making contributions and accruing service in respect of the re-employment, in which case the payment of the superannuation allowance shall cease;
(c) continue to receive a superannuation allowance, in which case the employee is not eligible to make contributions and accrue service in respect of the re-employment.
(2) If a person who is in receipt of a superannuation allowance from a reciprocal employer becomes an employee to whom this Act applies, the employee is entitled
(a) to pay to the fund all amounts received by way of superannuation allowance, together with interest calculated at the rate provided for in section 12 (4), and
(b) to be placed in the fund in a position as near as possible to the position the employee held in the reciprocal fund immediately preceding commencement of the superannuation allowance, and payment of the superannuation allowance shall cease and the employee shall commence making contributions and accruing service in respect of the new employment.
(3) If the payment of a superannuation allowance ceases under subsection (1) or (2), it shall be deemed to have ceased at the end of the month in which contributions commence.
(4) If the payment of a superannuation allowance ceases under subsection (1) (a), the allowance payable to the contributor upon termination of the period of re- employment shall be calculated in accordance with section 19.
(5) If the payment of a superannuation allowance ceases under subsection (1) (b), the allowance payable to the contributor on termination of the period of new employment shall be determined as the sum of the allowance accrued during the period of new employment plus the allowance that has ceased, recalculated in accordance with section 19, but the assumed age of retirement for the purposes of the calculation shall be the contributor's age when the new allowance commences minus a time period equivalent to the time period for which the contributor received the superannuation allowance that has ceased.
(6) The provisions of this section apply on or after January 1, 1993 to a former contributor who
(a) was or is in receipt of a superannuation allowance under this Act or a superannuation allowance from a reciprocal employer, and
(b) is currently an employee to whom this Act applies.
(7) Any funds held in trust under this section as it read on December 31, 1992 shall be dealt with by the commissioner in an equitable manner.
(8) An election made by a contributor under subsection (1) or (2) is irrevocable.
(9) This section does not apply to a person who is receiving a superannuation allowance as a beneficiary.
97 Section 22 (1) is repealed and the following is substituted:
(1) If a contributor dies while in the service of the employer before completing 5 years of continuous employment or 5 years of contributory service and a pension is not payable to the deceased contributor's surviving spouse under section 20, the contributions made by the contributor, together with interest calculated at the rate provided for in section 12 (4), shall be paid as follows:
(a) to the surviving spouse;
(b) if there is no surviving spouse, to the person nominated by the contributor as beneficiary;
(c) if there is no valid nomination of beneficiary, to the personal representative of the estate in a representative capacity, and the payment shall be subject to the control of the creditors of the contributor and form part of the estate.
98 Section 23 (1) and (2) is repealed and the following is substituted:
(1) If a contributor has been dismissed or has resigned or is otherwise retired from service without becoming entitled to a superannuation allowance, the contributions made by the contributor, together with interest calculated at the rate provided for in section 12 (4), shall be payable to the contributor or the contributor's personal representatives on demand.
(2) If a contributor is retired from service and becomes entitled to a superannuation allowance, the total or any portion of it on credit in the fund resulting from contributions on the contributor's behalf under section 10 as it read on December 31, 1992, shall, before the granting of the superannuation allowance, be refunded on demand.
99 Section 23.1 (1) is amended by adding "as it read on December 31, 1992" after "under section 10" and by striking out "under section 8" and substituting "under section 4.2".
100 Sections 24 to 35, 38 and 38.1 are repealed.
101 Section 39 is amended
(a) in subsection (1) by striking out "A person who enters" and substituting "Subject to section 13.1, a person who enters" and by striking out "mentioned in section 18 (5)", and
(b) by repealing subsection (3).
102 Sections 39.1 and 39.2 are repealed.
103 Section 40 (2) (b) is amended by striking out "or remarries, whichever first occurs".
104 Section 41 (2) is amended by striking out "or remarries, whichever occurs first".
105 Section 42 is amended
(a) by repealing subsection (3) and substituting the following:
(3) The supplementary allowance otherwise payable under this section in respect of an employee who, after reaching an age that is not more than 5 years less than pensionable age, is entitled under section 18 (4) to receive a reduced superannuation allowance calculated under section 19, is deferred until the first day of the payment quarter next following the month the employee reaches pensionable age. , and
(b) in subsection (9) in the definition of "basic lifetime portion of the superannuation allowance" by striking out "and" at the end of paragraph (b) and by repealing paragraph (c).
106 Section 42.1 is amended
(a) by repealing subsection (1) and substituting the following:
(1) The commissioner shall use the money in the inflation adjustment account established under section 4.1 to provide supplementary allowances to persons receiving superannuation allowances permitted under Part 2, or to persons receiving superannuation allowances under the Legislative Assembly Allowances and Pension Act and payable under Part 2 of this Act. , and
(b) in subsection (6) by striking out "section 11." and substituting "section 4.1."
107 The following heading is added before section 43:
108 Section 47 is repealed.
109 The following sections are added:
48 (1) If an employee contribution required under section 6 (1) is limited by section 6 (1.1), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(2) If an employee contribution required under section 6 (1) is limited by section 6 (1.1), the difference between what would have been contributed and what is actually contributed under Part 2 shall be attributed to a contribution that would have been made under section 6 (1) (b).
(3) If an employee contribution required for a benefit under section 7 (1) is limited by section 7 (3), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(4) If an employee contribution required for a benefit under section 13, 39 (5) or 61 (4), (5) or (6) is limited by section 13.1, the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(5) If an employer contribution required for a benefit under Part 2 is limited by section 6 (1.1), 7 (3) or 13.1, the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
49 (1) If a benefit that would be provided under section 7 (1) is limited by section 7 (3), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(2) If a benefit that would be provided under section 13, 39 (5) or 61 (4), (5) or (6) is limited by section 13.1, the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(3) If a benefit that would be provided under section 15 (1) is limited by section 15 (1.3), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(4) If a benefit that would be provided under section 19 is limited by section 19 (9), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(5) If a benefit that would be provided under section 20 is limited by section 20 (9), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
50 (1) If a person receives or is entitled to receive a supplementary allowance under section 42.1, the person shall receive or be entitled to receive a similar allowance with respect to the amount of a supplemental benefits allowance payable under section 49.
(2) The supplementary allowance provided under this section shall
(a) be the same percentage increase as that provided with respect to a superannuation allowance, and
(b) be provided in the same manner as a supplementary allowance provided with respect to a superannuation allowance.
51 (1) The contributions required under section 48 shall be made to the supplemental benefits account.
(2) The benefits provided under section 49 and the allowance provided under section 50 shall be paid from the supplemental benefits account.
(3) Payment of taxes to Revenue Canada shall be paid from the supplemental benefits account.
52 If a benefit is payable under section 49 or 50, it shall be payable on the same terms and conditions as the original benefit payable under Part 2 unless
(a) the benefit was to be in the form of a commuted value transfer to a locked-in RRSP, in which case the payment of the commuted value amount under this Part will be made directly to the individual,
(b) the person has elected different options for the payment of Part 2 and Part 3 benefits, or
(c) different treatment is required under the Income Tax Act (Canada) or some other authority.
53 If a person who is in receipt of a supplemental benefits allowance under this Act or from a reciprocal employer becomes an employee to whom this Act applies, the provisions of section 21.1 respecting a superannuation allowance shall also apply to the supplemental benefits allowance.
110 The following Part is added:
54 (1) Each employee shall submit proof of age satisfactory to the commissioner when requested to do so by the commissioner, and the commissioner may defer the granting of an allowance to an employee or dependant of an employee until satisfactory proof of age has been submitted.
(2) For the purposes of any provision of this Act in which reference is made to a person reaching a specified age,
(a) the person shall be deemed to have reached the specified age at the beginning of the calendar month following the calendar month in which the person actually reached that age, and
(b) in computing any period of months ending with the time on which the person reached a specified age, the calendar month in which the person actually reached that age shall be included.
55 (1) No superannuation allowance or supplemental benefits allowance shall be granted to a person until the commissioner, after inquiry in the manner prescribed by the regulations, has found that
(a) the person is within the scope of this Act, and
(b) the person is entitled to receive a superannuation allowance or supplemental benefits allowance under this Act.
(2) The commissioner shall prepare and keep on file in the office of the commissioner a record of the grounds on which the commissioner's findings in each case are based, and the record shall be open to inspection by any contributor affected by the findings.
56 Except as otherwise expressly provided, nothing in this Act confers on a person any right
(a) to demand or enforce the repayment of an amount contributed by the person to the fund or contributed on behalf of the person to the fund,
(b) to demand or enforce the payment of any interest on amounts contributed, or
(c) to borrow money from the fund against the equity of a contributor in the fund.
57 Every person receiving a superannuation allowance or supplemental benefits allowance under this Act shall keep the commissioner informed of that person's whereabouts and, at least once in each year, shall report in person or furnish credentials the commissioner requires.
58 Nothing in this Act impairs or affects the right or power of the Crown to remove or dismiss an employee from service.
59 (1) Any agreement entered into under this section may be extended to include any contributor or former contributor under any superannuation or pension plan in force under any other Act of the Province, and the contributor or former contributor shall, for all purposes, be deemed to be, or to have been, an employee of the government of British Columbia.
(2) With the approval of the Lieutenant Governor in Council, the commissioner may enter into an agreement with the British Columbia Railway Company by which this Act applies, with the necessary changes and so far as is applicable, to the British Columbia Railway Company, its members and employees, to the extent and with the modifications as are set out in the agreement.
(3) Without limiting the terms of the agreement, the British Columbia Railway Company pension fund committee may make recommendations to the commissioner to facilitate the implementation of the agreement, and in particular to preserve and give effect to the rights of all persons accrued or accruing under the British Columbia Railway Company pension fund rules and regulations, except as those rights are expressly varied by the agreement, and the recommendations may be made to apply generally or to a particular case.
(4) With the approval of the Lieutenant Governor in Council, an agreement may be entered into by the commissioner by which a superannuation allowance, supplemental benefits allowance or refund, or any of them, may be granted to an employee who, after March 31, 1954 transfers to the service of any other employer and by which the service of an employee who transfers from the service of any other employer to the service of an employer under this Act may receive recognition for such service on commencement of contributions to the fund.
(5) Without limiting the terms of the agreement under subsection (4), the agreement may specify any of the following:
(a) the conditions under which superannuation allowances, supplemental benefits allowances or refunds, or any of them, may be granted and the amount of the benefits;
(b) the date on which payments are to be made;
(c) the rate of interest to be paid;
(d) the amount and recognition of service with other employers;
(e) the amounts, if any, which may be transferred to or from the employers' and employees' accounts in the fund in lieu of provision for deferred pension or superannuation benefits;
(f) conditions to facilitate the transfer of employees from one employer to another without loss of accrued privileges concerning their ultimate superannuation allowance or supplemental benefits allowance, or both;
(g) any other matters necessary to ensure equity between all contributors to whom this Act applies.
(6) Locked-in pension credits shall not be transferred on behalf of a contributor to another employer's pension plan unless the contributor and employer make written commitments that the locking-in conditions required by this Act will continue to apply to those credits.
60 (1) With the approval of the Lieutenant Governor in Council, the commissioner may enter into an agreement with Pacific Coach Lines Ltd. under which
(a) the pension entitlement under the Pacific Coach Lines Ltd. Employees' Retirement Plan of a person who is in receipt of a pension under that plan shall be transferred to the Public Service Superannuation Fund, and
(b) a person who
(i) is or was employed by Pacific Coach Lines Ltd., and
(ii) has a vested pension entitlement under the Pacific Coach Lines Ltd. Employees' Retirement Plan, but is not in receipt of a pension under that plan, may elect, on or before May 15, 1984 or a later date, if any, prescribed by the Lieutenant Governor in Council, that the length of time of the person's contributory membership under that plan be recognized as pensionable service under this Act.
(2) The agreement referred to in subsection (1) shall establish the basis to be used to determine the amount of money which shall be transferred from the Pacific Coach Lines Ltd. Employees' Retirement Plan or otherwise be payable to the Public Service Superannuation Fund in respect of the liability associated with the pension entitlements transferred under the agreement and shall include other provisions that may be required in order to preserve, as far as possible, the pension entitlements transferred under the agreement.
(3) On the transfer into the Public Service Superannuation Fund of the vested pension entitlements of the persons who make the election referred to in subsection (1) (b), each of those persons shall be deemed to be a person who, as at the date of the termination of that person's employment with Pacific Coach Lines Ltd., had completed at least 10 years of pensionable service as an employee under this Act.
(4) Notwithstanding subsection (3), but subject to subsection (5), all pension calculations under this Act in respect of any person's pension entitlements transferred under the agreement referred to in subsection (1) shall be based on the actual length of time of that person's contributory membership under the Pacific Coach Lines Ltd. Employees' Retirement Plan.
(5) A person described in subsection (1) (a) shall, on the transfer of pension entitlements under the agreement referred to in subsection (1), be entitled under this Act to receive
(a) a superannuation allowance equal to the pension the person was receiving under the Pacific Coach Lines Ltd. Employees' Retirement Plan at the time of the transfer of pension entitlements, and
(b) on or after January 1, 1985, the supplementary allowances provided under section 42.1.
61 (1) The Lieutenant Governor in Council may make regulations.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations for the following purposes and respecting the following matters:
(a) prescribing rules governing the classification of employees for the purposes of this Act;
(b) prescribing the method by which interest is to be credited or paid by the Minister of Finance and Corporate Relations under this Act;
(c) prescribing tables for determining the value of superannuation allowances or supplemental benefits allowances, or both;
(d) prescribing the manner of making application for and the granting of superannuation allowances and supplemental benefits allowances;
(e) prescribing forms to be used for the purposes of this Act or the regulations;
(f) prescribing the method of proving any fact necessary to be proved for the purpose of granting or paying superannuation allowances and supplemental benefits allowances, or for any purpose respecting the administration of this Act;
(g) providing for the transfer and administration under this Act of the accounts and money transferred under this Act from the superannuation fund under the former Act to the fund under this Act;
(h) prescribing the manner in which the pension index, the average of the consumer price index, and the adjustment index for any period of months shall be determined and the manner in which any such average that is determined to be a fraction of a whole number shall be expressed;
(i) establishing and appointing the members of a consultative committee composed of representatives of the Crown and of employees;
(j) providing for interest to be paid to a person where the person is entitled to payments under a superannuation plan and, through no fault of the person, receipt by the person of a payment is delayed;
(k) specifying the time within which an employer shall remit contributions to the fund required under this Act and providing for interest to be paid, and the rate at which it is to be paid, by an employer who fails to remit contributions within the time specified by the Lieutenant Governor in Council;
(l) establishing the method of calculating the average monthly salary of a contributor for the purpose of determining the contributor's highest average salary.
(3) The Lieutenant Governor in Council may make regulations the Lieutenant Governor in Council considers necessary or advisable for meeting or removing any difficulty arising out of the concurrent administration of this Act and the former Act, and for preserving and giving effect to the rights of all persons accrued or accruing under the former Act on June 1, 1935 except as those rights are expressly varied by this Act, and the regulations may be made to apply generally or to a particular case.
(4) The minister may, by regulation applicable generally or to specified classes of persons, declare as pensionable service of an employee under this Act all or part of service as a member of Her Majesty's Forces during the Second World War, or as a member of the Canadian Armed Forces as defined in the National Defence Act (Canada), or as a member of a Special Force constituted by the Minister of National Defence of Canada, or in any other force or service the minister designates for the purpose of this Act, but in such cases the employee shall be required to contribute to the fund the additional sums the minister may require.
(5) The Lieutenant Governor in Council may grant recognition as pensionable service under this Act to all or part of the service as an employee for any employer, whether or not the employer is an employer as defined in this Act, but the employee and the employee's most recent employer to whom this Act applies shall contribute to the fund the sums, if any, specified by the Lieutenant Governor in Council.
(6) The minister may, by regulation applicable generally or to specific classes of persons, declare as pensionable service of an employee under this Act all or part of service during which the employee was not eligible to make contributions under this Act, but in such cases the employee shall contribute to the fund additional sums the minister specifies.
111 The amendments to the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, made by B.C. Reg. 492/92, the Pension (Teachers) Benefits Standards Regulation, are repealed and, subject to this Act, the Pension (Teachers) Act is deemed to read as it did on December 31, 1992.
112 Section 1 (1) of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, is amended
(a) in the definition of "approved group disability salary continuance plan" by striking out "Provincial Secretary" and substituting "minister",
(b) in the definition of "basic lifetime portion" by adding "as it read on December 31, 1992" after "contributions made by the employee under section 6 (2)",
(c) by repealing the definition of "common law spouse" and substituting the following:
"common law spouse" means a person with whom a contributor has cohabited for a continuous period of not less than
(a) 2 years, or
(b) one year, where there is a child resulting from the union, and with whom the contributor is cohabiting at the date of his or her death or the date at which he or she applies for a superannuation allowance or supplemental benefits allowance, or both, whichever first occurs; ,
(d) in the definition of "superannuation allowance" by striking out "under this Act;" and substituting "under Part 2;", and
(e) by adding the following definitions:
"approved employer" means
(a) the Public Service Superannuation Act (Canada),
(b) an employer to whom the Pension (Municipal) Act applies,
(c) the Province,
(d) an institution under the College and Institute Act and a college established under the School Act,
(e) the University of British Columbia, the University of Victoria and Simon Fraser University,
(f) Notre Dame University,
(g) Acadia University,
(h) the British Columbia Hydro and Power Authority,
(i) an employer to whom the Teachers' Retirement Fund Act (Alberta) applies,
(j) an employer to whom the Teachers' Pensions Act (Manitoba) applies,
(k) an employer to whom the Teachers' Superannuation Act (Ontario) applies,
(l) an employer to whom the Teachers' Pensions Plan (Quebec) applies,
(m) an employer to whom the Teachers' Superannuation Fund Act (Saskatchewan) applies, or
(n) an employer who has been declared to be an approved employer by order of the minister;
"benefit" means an allowance or any other entitlement payable under this Act, and includes a return of contributions and any payment in a series of payments;
"commuted value" means, in relation to a benefit that a person has a present or future entitlement to receive under this Act, the actuarial present value of the benefit determined on the basis of actuarial assumptions and methods specified by the commissioner;
"contributor" means a person, other than an employer, to whom this Act applies who is required or permitted to contribute to the fund and who makes contributions to the fund and includes a person who has ceased to contribute to the fund so long as that person is eligible for a benefit and so long as such a benefit is being paid;
"contributory service" means the period of time for which an employee makes, or is deemed to make, contributions and is entitled to accumulate credit towards a superannuation allowance, and, in the case of an employee who is paid an annual salary over a 10 month period, the 10 months shall be considered as one year;
"defined benefit limit" has the same meaning as in section 8500 (1) of the Income Tax Regulations under the Income Tax Act (Canada);
"pensionable age" means 60 years of age;
"reciprocal employer" means
(a) an employer to whom the Pension (College) Act applies,
(b) an employer to whom the Pension (Municipal) Act applies,
(c) an employer to whom the Pension (Public Service) Act applies,
(d) the Workers' Compensation Board, or
(e) an employer who has been declared to be a reciprocal employer by order of the Lieutenant Governor in Council;
"RRSP" means a retirement savings plan that is within the meaning of the Income Tax Act (Canada) and that is registered under that Act;
"supplemental benefits allowance" means the total monthly annuity or allowance payable under Part 3;
"termination of membership" means,
(a) in the case of an employee who is covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor's behalf and the cessation of seniority rights under the collective agreement,
(b) in the case of an employee who is not covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor's behalf, or
(c) in the case of a contributor who is entitled to a disability benefit and whose contributions to the fund have been discontinued therefor, the cessation of entitlement to disability benefits;
"years of continuous employment" means years of employment for a continuous period of time with an employer including any breaks in employment of up to 26 weeks, but does not include any period in respect of which the member has received a benefit unless that benefit has been reinstated under section 7 or 18.1.
113 Section 1 (3) is amended by striking out "for the purpose of subsection (2)".
114 The following heading is added after section 1:
115 Section 1.1 is amended
(a) in subsection (1.1) by adding "or supplemental benefits allowance, or both," after "superannuation allowance",
(b) in subsection (3) by adding "or supplemental benefits allowance, or both" after "superannuation allowance".
(c) in subsection (4) by striking out "under section 16 (1)." and substituting "under section 16 (3).", and
(d) in subsection (5) by striking out "under section 16 (1)," and substituting "under section 16 (3),".
116 Section 2 is amended by repealing subsection (3) and substituting the following:
(3) When this Act commences to apply to an employee, it shall be deemed to continue to apply to that employee until termination of membership.
117 The following sections are added:
3.1 (1) A fund known as the Teachers' Pension Fund shall be maintained.
(2) The fund shall consist of all money received by the commissioner under this Act including
(a) the contributions made by and on behalf of employees,
(b) the contributions made by and on behalf of employers, and
(c) interest accruing from the investment of any of the money referred to in this subsection.
(3) The fund shall be divided into the following 4 accounts:
(a) the basic account;
(b) the inflation adjustment account;
(c) the supplemental benefits account;
(d) the retirement annuity account.
(4) The basic account shall consist of all the assets of the fund other than assets in the inflation adjustment account, the supplemental benefits account and the retirement annuity account.
(5) The inflation adjustment account shall consist of
(a) contributions made under sections 3.2 (1) (a) (iii), (b) (iii), (c) (iii) and (d) (iii) and 6 (1) (c),
(b) net interest earned on the inflation adjustment account, and
(c) income that is
(i) earned on other fund assets held in the basic account in respect of pensions being paid, and
(ii) in excess of the interest anticipated in the most recent actuarial valuation under section 30, as determined by the commissioner, less
(d) amounts transferred to the basic account under section 4.1,
(e) amounts refunded to an employee under this Act in respect of contributions made under section 6 (1) (c) or otherwise transferred out of the fund in accordance with this Act, in respect of contributions made under section 3.2 (1) (a) (iii), (b) (iii), (c) (iii) and (d) (iii) and 6 (1) (c),
(f) amounts, as determined by the commissioner, in respect of a commuted value payment made to an employee or otherwise transferred out of the fund in accordance with section 16 (2) (b) or (3) (b) or 17.1 (3), and
(g) amounts transferred to the supplemental benefits account in accordance with subsection (6) (d) of this section.
(6) The supplemental benefits account shall consist of
(a) contributions to the fund provided for in Part 3,
(b) net interest earned on the supplemental benefits account,
(c) amounts from contributions under section 3.2 (1) (a) (ii), (b) (ii), (c) (ii) or (d) (ii), as determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of benefits provided for in Part 3 but excepting inflation protection under section 18.4,
(d) amounts from contributions under section 3.2 (1) (a) (iii), (b) (iii), (c) (iii) or (d) (iii), as determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of providing inflation protection under section 18.4,
(e) funds received from Revenue Canada pursuant to the administration of this account, and
(f) other amounts as may be prescribed by the Lieutenant Governor in Council.
(7) The retirement annuity account shall consist of voluntary contributions made before January 1, 1993 under section 6 (2) as it read on December 31, 1992, contributions made under section 13 (1) (b) (ii) and interest on those contributions.
(8) An individual record shall be maintained for each employee in which contributions to the fund shall be recorded.
(9) All benefits and disbursements payable under this Act shall be paid from the fund and, for this purpose, the fund shall be considered as one and indivisible.
(10) The commissioner shall keep an account of
(a) all contributions and money received and all money paid out under this Act, and
(b) all of the assets and liabilities of the fund.
3.2 (1) Each time an instalment of an employee's salary is paid, the employer shall pay to the commissioner on the last day of each month the following amounts:
(a) during the period on and before June 30, 1993, an amount equal to the sum of
(i) 7.7% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 9.2% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1% of the employee's entire salary;
(b) during the period July 1, 1993 to June 30, 1994, an amount equal to the sum of
(i) 7.8% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 9.3% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1% of the employee's entire salary;
(c) during the period July 1, 1994 to June 30, 1995, an amount equal to the sum of
(i) 7.9% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 9.4% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1% of the employee's entire salary;
(d) during the period on and after July 1, 1995, an amount equal to the sum of
(i) 8% of the employee's cumulative salary that does not exceed the year's maximum pensionable earnings,
(ii) 9.5% of the employee's cumulative salary that exceeds the year's maximum pensionable earnings, and
(iii) 1% of the employee's entire salary.
(2) The Minister of Finance and Corporate Relations shall, on the requisition of the commissioner, pay from the consolidated revenue fund to the fund the sums determined by the commissioner under section 11 (2.3).
118 The following heading is added before section 4:
119 Sections 4.2, 4.3 and 5 are repealed.
120 Section 6 is amended
(a) in subsection (1) by adding ", unless that employee elects under section 18.1 (1) (b) not to contribute," after "to whom this Act applies",
(b) by adding the following subsections:
(1.2) Contributions made under subsection (1) shall not exceed the maximums as set out in section 8503 (4) of the Income Tax Regulations under the Income Tax Act (Canada).
(1.3) Contributions made under subsection (1) in respect of a calendar year shall not be paid before January 1 of that year. ,
(c) by repealing subsections (2) to (3.1) and substituting the following:
(3) No further deductions shall be made from an employee's salary under subsection (1) when the employee has accrued 35 years of pensionable service, including service rendered by the employee in the service of all reciprocal employers.
(3.1) An employee whose contributions cease in accordance with subsection (3) shall be deemed to be a contributor making contributions for all other purposes of this Act. ,
(d) in subsection (5) by striking out "under section 8." and substituting "under section 3.2.",
(e) by adding the following subsections:
(5.1) Notwithstanding subsections (4) and (5), if the employer agrees and the leave of absence is not of long duration, contributions may be administered by ordinary collection means under subsection (1) and section 3.2.
(5.2) For the purpose of subsections (4) and (5), an employee shall not be permitted to make contributions in respect of absences after 1991 which exceed
(a) 3 years in respect of maternity or parental leave of absence, each of which is not to exceed one year from the birth or adoption date of the child, and
(b) 5 years in respect of any other leaves of absence permitted to be recognized. ,
(f) in subsection (6) (b) and (c) by striking out "Provincial Secretary," and substituting "minister,", and
(g) by adding the following subsection:
(8) In no case shall retirement and the commencement of a superannuation allowance be delayed beyond the end of the calendar year in which the contributor reaches the age of 71 years.
121 Section 6.1 is amended
(a) in subsection (1) by striking out "under section 8, together with compound interest at the rate of 6% per year payable annually." and substituting "under section 3.2, together with interest at the rate provided for in section 17.1 (7).",
(b) in subsection (2) by striking out "compound interest at the rate of 6% per year payable annually." and substituting "interest at the rate provided for in section 17.1 (7).", and
(c) in subsection (6) by striking out "under section 8." and substituting "under section 3.2."
122 Section 7 is amended
(a) in subsection (1) by striking out "becomes an employee," and substituting "becomes a contributor,",
(b) by repealing subsection (3) (b) and substituting the following:
(b) at the rate provided under section 17, as it read on December 31, 1992, for contributions made under section 6 (1), for any part of the period that occurs between January 1, 1984 and December 31, 1992 inclusive;
(c) at the rate provided under section 17.1 (7) for contributions made under section 6 (1), for any part of the period that occurs on and after January 1, 1993. ,
(c) by repealing subsection (4),
(d) in subsection (5) by striking out "Provincial Secretary," and substituting "minister,", and
(e) in subsection (5) (d) by striking out "defined in section 11 (4)".
123 Sections 8 and 9 are repealed.
124 The following section is added:
10.2 (1) For the purpose of sections 10 and 10.1, service before January 1, 1990 will only be recognized if the pension benefit for the year does not exceed 2/3 of the defined benefit limit for the year in which the benefits commence to be paid.
(2) Subsection (1) does not apply for a particular calendar year if
(a) a period in the particular year was pensionable service of the member under a registered pension plan at any time before June 8, 1990,
(b) the member was entitled, on June 7, 1990, pursuant to an arrangement in writing, to be provided with lifetime retirement benefits in respect of a period in the particular year, whether or not the entitlement was conditional on contributions being made under the provisions, and
(c) at the beginning of the year, a period in the preceding year was pensionable service of the contributor and the contributor was disabled or on leave of absence.
(3) For service after December 31, 1989, only service for which Revenue Canada certification of past service pension adjustment has been received will be eligible for reinstatement under section 7.
125 Section 11 is amended
(a) in subsection (1) by striking out "Subject to section 17," and substituting "Subject to section 17.1," and by adding ", on or after January 1, 1993," after "an employee who",
(b) in subsection (1) (b) by striking out "10 years of pensionable service;" and substituting "5 years of continuous employment or 5 years of contributory service;",
(c) in subsection (1) (b.1) by striking out "10 years of pensionable service" and substituting "5 years of continuous employment or 5 years of contributory service",
(d) in subsection (1) (c) by striking out "10 years of pensionable service," and substituting "5 years of continuous employment or 5 years of contributory service,",
(e) in subsection (2) by striking out "Where an employee resigns," and substituting "If, on or after January 1, 1993, an employee resigns," and by striking out "subject to subsection (5),",
(f) in subsection (2) (a) by striking out "10 years of pensionable service;" and substituting "5 years of continuous employment or 5 years of contributory service;",
(g) by repealing subsection (2) (e) and substituting the following:
(e) to receive a benefit in accordance with the provisions of section 17.1, ,
(h) in subsection (2) by striking out "has not received a refund" and substituting "has not received a benefit",
(i) in subsection (2.3) by striking out "under section 8 (2)." and substituting "under section 3.2 (2).",
(j) in subsection (3) (d) by striking out "defined in section 11 (4)",
(k) by repealing subsections (4) to (6.1), and
(l) by adding the following subsection:
(11) Locked-in pension credits shall not be transferred on behalf of a contributor to another employer's pension plan unless the contributor and employer make written commitments that the locking-in conditions required by this Act will continue to apply to such credits.
126 Section 12 is amended
(a) by repealing subsection (2),
(b) in subsection (3) by striking out "Provincial Secretary" and substituting "minister",
(c) by repealing subsection (3) (d) and substituting the following:
(d) is a person in the service of one or more approved employers provided the employee becomes or remains entitled to receive a pension or superannuation allowance as a result of that service; ,
(d) by repealing subsection (5), and
(e) by adding the following subsection:
(9) For the purpose of this section, only contributions and service that comply with sections 6 (1.2) and (5.2) and 13 (6) will be recognized.
127 Section 13 is amended by adding the following subsection:
(6) Pension benefits payable for service accrued after December 31, 1991 will be limited to the maximum lifetime retirement benefits as set out in section 8504 of the Income Tax Regulations under the Income Tax Act (Canada).
128 Section 14 is amended
(a) in subsection (1) (b) by striking out "a term of years certain," and substituting "a term not to exceed 15 years,",
(b) in subsection (1.1) by adding "by completion of a form specified by the commissioner" after "waives this requirement in writing", and
(c) by repealing subsections (4) and (5).
129 Section 15 is amended
(a) in subsection (2) (c) by adding "in writing" after "certify",
(b) by repealing subsection (3) (a) and substituting the following:
(a) if that person does not re-enter service and resume contributions, the person shall be entitled to apply and, when qualified on the basis of age, to commence receiving a superannuation allowance, or , and
(c) by adding the following subsection:
(4) Benefits payable under this section will be limited to the maximums as set out in section 8503 (3) of the Income Tax Regulations under the Income Tax Act (Canada).
130 Section 16 is amended
(a) by repealing subsections (1) to (4) and both subsections (5.1) and substituting the following:
(1) The superannuation allowance payable to the spouse of a contributor who dies in service on or after January 1, 1993 is as follows:
(a) if the contributor dies before attaining pensionable age and after not less than 5 years of continuous employment or not less than 5 years of contributory service, the superannuation allowance payable shall be the amount calculated as if the contributor had been disabled and had retired from service immediately prior to death with a disability allowance determined in accordance with section 11 (1) (c) and had converted to the joint life and last survivor plan described in section 14 (1) (c);
(b) if the contributor dies after attaining pensionable age and after not less than 5 years of continuous employment or not less than 5 years of contributory service, the superannuation allowance payable shall be the amount calculated as if the contributor had retired from service immediately prior to death and had converted to the joint life and last survivor plan described in section 14 (1) (c);
(c) if the contributor dies after attaining pensionable age but with less than 5 years of continuous employment or less than 5 years of contributory service, the superannuation allowance payable shall be equal in amount to the superannuation allowance that would have been granted had the contributor retired immediately prior to death with an allowance determined in accordance with section 11 (1) (a) or
(b.1) and had converted to the joint life and last survivor plan under section 14 (1) (c).
(2) In lieu of the allowance provided under subsection (1), the spouse may elect
(a) to convert the plan of allowance to the temporary life annuity under section 14 (1) (d) (ii) in combination with the joint life and last survivor plan under section 14 (1) (c), or
(b) to transfer the whole of the commuted value of the pension on a locked-in basis in accordance with the conditions referred to in section 17.1 (3) (b).
(3) If a contributor dies in service and there is no surviving spouse, the person nominated by the contributor as beneficiary or, if there is no valid designation of beneficiary the personal representative of the estate in a representative capacity, shall be entitled to a payment equal to the greater of
(a) the deceased contributor's contributions together with accumulated interest, and
(b) the sum of the deceased contributor's contributions made before January 1, 1993, together with interest at the rate calculated in section 17.1 (7), plus 60% of the commuted value of the superannuation allowance, if any, to which the contributor would have been entitled in respect of service on and after January 1, 1993 had the contributor terminated membership immediately before death.
(4) If the person nominated by the employee is, at the time of the employee's death, a minor, the commissioner shall pay the amount to the Public Trustee in trust for the minor. ,
(b) by repealing subsection (6.2),
(c) in subsection (6.3) by striking out "For the purposes of subsections (4) and (5), where" and substituting "Where" and by striking out "or in accordance with subsection (5)",
(d) by adding the following subsection:
(6.4) Notwithstanding any other Part, the remainder of any benefit, whether refund or pension, over the amount of the court order or separation agreement, shall be paid to the current spouse, beneficiary or the estate as it would have been had there been no court order or separation agreement. , and
(e) by repealing subsection (7) and substituting the following:
(7) If a surviving spouse remarried on or after November 1, 1973, the amount of the monthly allowance shall not be affected by reason of remarriage.
(8) Benefits payable under this section will be limited to the maximums as set out in section 8503 (2) of the Income Tax Regulations under the Income Tax Act (Canada).
131 Section 17 (1), (2), (3), (5) is (6) are repealed.
132 Section 17.1 is repealed and the following is substituted:
17.1 (1) If the service of a contributor terminates or is terminated on or after January 1, 1993, the contributor is entitled to leave a contributory account on deposit in the fund to provide a deferred superannuation allowance calculated under section 13
(a) in respect of all pensionable service if the contributor has completed at least 10 years of contributory service at the termination of membership, or
(b) in respect of pensionable service on and after January 1, 1993 if the contributor has completed 5 or more years of continuous employment or 5 or more years of contributory service at the termination of membership.
(2) A contributor who is entitled to a deferred superannuation allowance may apply to receive the superannuation allowance on or after attaining an age that is not more than 5 years less than pensionable age, but the 2% referred to in section 13 (1) (a) shall be reduced by 5% of that amount for each year of age by which the employee's age is less than pensionable age, and the reduction shall be prorated for fractions of a year.
(3) Subject to the terms and conditions set out in subsection (4), a contributor can elect to receive, in lieu of a deferred superannuation allowance, one of the following:
(a) a payment in the amount of the commuted value of the deferred superannuation allowance;
(b) a payment in the amount of the contributor's contributions, if any, made in respect of service before January 1, 1993, together with accumulated interest under subsection (7), plus a payment in the amount of the commuted value of the contributor's deferred superannuation allowance calculated in respect of service on and after January 1, 1993;
(c) a payment in the amount of the contributor's contributions, if any, made in respect of service before January 1, 1993, together with accumulated interest under subsection (7), and an entitlement to a deferred superannuation allowance calculated under section 13 in respect of service on and after January 1, 1993.
(4) A contributor may elect to receive a payment or payments under subsection (3) only if
(a) at the time of termination of membership the contributor's age is more than 5 years under pensionable age, and
(b) the commissioner is satisfied that the commuted value payment is to be transferred on a locked-in basis to another pension plan, to an RRSP or to an insurance company or other financial institution in accordance with the requirements for funds locked-in under the Pension Benefits Standards Act.
(5) If on termination of membership a contributor is not entitled to a deferred superannuation allowance under subsection (1) in respect of some or all service, the contributor may elect
(a) to leave a contributory account on deposit in the fund, or
(b) to receive a payment in the amount of the contributor's contributions, together with accumulated interest under subsection (7), in respect of the period of service for which the contributor is not entitled to a deferred superannuation allowance.
(6) If a person leaves a contributory account on deposit in the fund under subsection (1) and dies before a superannuation allowance is granted under this Act, benefits shall be determined in accordance with section 16.
(7) The accumulated interest shall be determined in respect of periods before January 1, 1993 on the basis of the rates that were in effect from time to time under section 17 as it read on December 31, 1992, and for all subsequent periods shall be the rate of interest calculated on the basis of the average yields of 5 year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B 14045.
(8) Interest under subsection (7) shall be computed as if
(a) the contribution made during the fiscal year in which the refund is paid were made in a lump sum on the first day of the month in which payment of the refund is made, and
(b) the contributions made during any other fiscal year were made in a lump sum on December 31 in that other fiscal year.
133 Section 18 is amended
(a) by repealing subsection (4), and
(b) by adding the following subsections:
(10) A contributor or the surviving spouse of a deceased contributor may receive, in lieu of a superannuation allowance, a payment equal to the commuted value of the allowance if
(a) the monthly pension payment is less than 1/12 of 2% of the year's maximum pensionable earnings in the year of termination of membership, or
(b) the commuted value is not greater than 4% of the year's maximum pensionable earnings in the year of termination of membership.
(11) If a contributor or the surviving spouse of a deceased contributor is entitled to benefits that are locked in under this Act, and the commissioner is satisfied that the person entitled to such benefit has a mental or physical disability that is likely to shorten considerably the person's life expectancy, the person may, before payment of the pension commences, elect to convert the pension to a payment or series of payments on a basis acceptable to the commissioner.
134 Section 18.1 is repealed and the following is substituted:
18.1 (1) If a former contributor who is in receipt of a superannuation allowance under this Act becomes an employee to whom this Act applies, the employee may elect to do one of the following:
(a) repay to the fund all amounts received by way of superannuation allowance, together with interest calculated at the same rate as provided in section 17.1 (7), and be reinstated in the fund and the employee's rights under it reinstated as near as possible to the position held at the time the superannuation allowance was originally granted, in which case the payment of the superannuation allowance shall cease and the employee shall commence making contributions and accruing service in respect of such re-employment;
(b) without repayment of amounts received by way of superannuation allowance or repayment of interest, commence making contributions and accruing service in respect of the re-employment, in which case the payment of the superannuation allowance shall cease;
(c) continue to receive a superannuation allowance, in which case the employee is not eligible to make contributions and accrue service in respect of the re-employment.
(2) If a person who is in receipt of a superannuation allowance from a reciprocal employer becomes an employee to whom this Act applies, the employee is entitled to repay to the pension fund of the reciprocal employer all amounts received by way of superannuation allowance, together with interest calculated at the rate provided for in section 17.1 (7), and be re-established in the reciprocal fund in a position as near as possible to the position the employee held in the fund immediately preceding commencement of the superannuation allowance, in which case the payment of the superannuation allowance shall cease and the employee shall commence making contributions and accruing service in respect of the new employment.
(3) If the payment of a superannuation allowance ceases under subsection (1), it shall be deemed to have ceased at the end of the month in which contributions commence.
(4) If the payment of a superannuation allowance ceases under subsection (1) (a), the allowance payable to the contributor upon termination of the period of re-employment shall be calculated in accordance with section 13.
(5) If the payment of a superannuation allowance ceases under subsection (1) (b), the allowance payable to the contributor on termination of the period of new employment shall be determined as the sum of the allowance accrued during the period of new employment plus the allowance that has ceased, recalculated in accordance with section 13, but the assumed age of retirement for the purposes of the calculation shall be the contributor's age when the new allowance commences minus a time period equivalent to the time period for which the contributor received the superannuation allowance that has ceased.
(6) The provisions of this section apply on and after January 1, 1993 to a former contributor who
(a) was or is in receipt of a superannuation allowance under this Act or a superannuation allowance from a reciprocal employer, and
(b) is currently an employee to whom this Act applies.
(7) Any funds held in trust under this section as it read on December 31, 1992 shall be dealt with by the commissioner in an equitable manner.
(8) An election made by a contributor under subsection (1) or (2) is irrevocable.
(9) This section does not apply to a person who is receiving a superannuation allowance as a beneficiary.
135 The following Part is added:
18.2 (1) If an employee contribution required under section 6 (1) is limited by section 6 (1.2), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(2) If an employee contribution required under section 6 (1) is limited by section 6 (1.2), the difference between what would have been contributed and what is actually contributed under Part 2 shall be attributed to a contribution that would have been made under section 6 (1) (b).
(3) If an employee contribution required for a benefit under section 6 (4) or (6) is limited by section 6 (5.2), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(4) If an employee contribution required for a benefit under section 10 or 10.1 is limited by section 10.2, the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(5) If an employee contribution required under section 12 is limited by section 12 (9), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this Part.
(6) If an employer contribution required for a benefit under Part 2 is limited by section 6 (1.2) or (5.2), 10.2 or 12 (9), the difference between what would have been contributed and what is actually contributed under Part 2 shall be contributed under this section.
18.3 (1) If a benefit that would be provided under section 6 (4) or (6) is limited by section 6 (5.2), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(2) If a benefit that would be provided under section 12 is limited by section 12 (9), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(3) If a benefit that would be provided under section 15 is limited by section 15 (4), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(4) If a benefit that would be provided under section 16 is limited by section 16 (8), the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
(5) If a benefit that would be provided under Part 2 is limited by section 10.2, the difference between what would have been provided and what is actually provided under Part 2 shall be provided under this Part.
18.4 (1) If a person receives or is entitled to receive a supplementary allowance under section 4.1, the person shall receive or be entitled to receive a similar allowance with respect to a supplemental benefits allowance.
(2) The supplementary allowance provided under this section shall
(a) be the same percentage increase as that provided with respect to a superannuation allowance, and
(b) be provided in the same manner as a supplementary allowance provided with respect to a superannuation allowance.
18.5 (1) The contributions required under section 18.2 shall be made to the supplemental benefits account.
(2) The benefits provided under sections 18.3 and 18.7 and the allowance provided under section 18.4 shall be paid from the supplemental benefits account.
(3) Payment of withholding taxes to Revenue Canada shall be paid from the supplemental benefits account.
18.6 If a benefit is payable under this Part, it shall be payable on the same terms and conditions as the original benefit payable under Part 2 unless
(a) the benefit was to be in the form of a commuted value transfer to a locked-in RRSP, in which case the payment of the commuted value amount under this Part will be made directly to the individual,
(b) the person has elected different options for the payment of Part 2 and Part 3 benefits, or
(c) different treatment is required under the Income Tax Act (Canada) or some other authority.
18.7 (1) If a person in receipt of a superannuation allowance who is a subscriber to the Medical Services Plan of British Columbia continued under the Medical and Health Care Services Act elects in writing, filed with the commissioner, to have the monthly premium payable to the licensed carrier for teachers, the commissioner shall deduct monthly, from that person's superannuation allowance, 1/2 of the monthly premium payable to the Medical Services Plan of British Columbia.
(2) The Minister of Finance and Corporate Relations shall pay to the commissioner 1/2 of the monthly premium referred to in subsection (1) and the commissioner shall pay that 1/2 to the Medical Services Plan of British Columbia on behalf of the person.
18.8 If a person who is in receipt of a supplemental benefits allowance under this Act or from a reciprocal employer becomes an employee to whom this Act applies, the provisions of section 18.1 respecting a superannuation allowance shall also apply to the supplemental benefits allowance.
136 The following heading is added after section 18.8:
137 The following section is added:
18.9 (1) Each employee shall submit proof of age satisfactory to the commissioner when requested to do so by the commissioner.
(2) The commissioner may defer the granting of an allowance to an employee or dependant of an employee until satisfactory proof of age has been submitted.
138 Section 19 is amended by striking out "Provincial Secretary and Minister of Government Services is charged with the administration of this Act and" and substituting "minister".
139 Section 26 is amended
(a) by adding "and Corporate Relations" after "Minister of Finance" in both places, and
(b) in subsection (2) (a) (i) by striking out "a trust fund under section 36 (2) of the Financial Administration Act," and substituting "a pension plan registered in compliance with the Pension Benefits Standards Act,".
140 Section 36 (3) is amended by striking out "Provincial Secretary" and substituting "minister".
141 Section 39 (1) is amended
(a) by repealing paragraph (h) and substituting the following:
(h) prescribing the method in which interest is applied; ,
(b) in paragraphs (j) and (k) by striking out ", and the rate at which it is to be paid,", and
(c) in paragraph (m) by adding "and" at the end of subparagraph (ii), by striking out ", and" at the end of subparagraph (iii) and substituting "." and by repealing subparagraph (iv).
142 This Act comes into force by regulation of the Lieutenant Governor in Council and, when brought into force, shall be deemed to have come into force on January 1, 1993, and is retroactive to the extent necessary to give it effect on and after that date.
SECTION 1: repeals amendments to the Pension (College) Act made by regulation effective January 1, 1993 under the authority of section 32 (2) of the Pension College Act.
SECTION 2:
(a) and (b) is a housekeeping amendment,
(c) is consequential to the repeal of section 6 (2) of the Pension (College) Act,
(d) changes the period of cohabitation to not less than 2 years and adds a reference to the supplemental pension provisions in the new Part 3,
(e) is consequential to the supplemental pension provisions in the new Part 3,
(f) is consequential to the re-organization of the Pension (College) Act into Parts, and
(g) adds new definitions required for the administration of minimum standards under the Pensions Benefits Standards Act and for the administration of Income Tax Act registered plan provisions.
SECTION 3: is consequential to the re-organization of the Pension (College) Act into Parts.
SECTION 4: is consequential to the supplemental pension provisions in the new Part 3.
SECTION 5: creates a new supplemental benefits account within the fund that is required for the payment of existing non- registerable benefits.
SECTION 6: repeals matters now covered by sections 6.2 and 6.3 of the Pension (College) Act.
SECTION 7: is consequential to Pension Benefits Standards Act requirements which broaden eligibility rules.
SECTION 8: provides for contribution rate increases by the employer to fund the additional benefits resulting from Pension Benefits Standards Act requirements.
SECTION 9: is consequential to the re-organization of the Pension (College) Act into Parts.
SECTION 10:
(a) is consequential to Pension Benefits Standards Act requirements,
(b) caps employee contributions to the registerable portion of the plan at the Income Tax Act (Canada) limits,
(c) removes the section that allowed a plan member to make voluntary contributions to the plan, thereby eliminating voluntary contributions as required under the Income Tax Act (Canada),
(d) makes a cross reference change,
(e) caps employee leave of absence entitlements in the registerable portion of the plan at the Income Tax Act (Canada) limits, and
(f)
SECTION 11:
(a) and (b) is consequential to the establishment of interest rates under section 18 (6) of the Pension (College) Act, and
(c) makes a cross reference change.
SECTION 12: re-establishes repealed sections 4 and 4.1 as sections 6.2 and 6.3 of the Pension (College) Act.
SECTION 13:
(a) is consequential to Pension Benefits Standards Act requirements, and
(b) relocates a matter to section 19.1 of the Pension (College) Act.
SECTION 14: is consequential to the re-organization of the Pension (College) Act into Parts.
SECTION 15: is a housekeeping amendment.
SECTION 16: limits benefits under Part 2 in respect of prior service as required by the Income Tax Act (Canada).
SECTION 17:
(a) establishes a new 5 year eligibility standard as required by the Pension Benefits Standards Act for payment of a pension, and
(b) is consequential to Pension Benefits Standards Act requirements and repeals a definition that has been moved to section 1 of the Pension (College) Act.
SECTION 18:
(a) repeals a definition that has been moved to section 1 of the Pension (College) Act,
(b) is a housekeeping amendment,
(c) removes an unnecessary cross reference,
(d) is consequential to the repeal of 6 (2) of the Pension (College) Act, and
(e) limits benefits payable under this section to registerable maximums under the Income Tax Act (Canada).
SECTION 19:
(a) repeals a subsection that is now located in other Parts, and
(b) limits benefits payable under Part 2 to registerable maximums under the Income Tax Act (Canada).
SECTION 20:
(a) introduces a 15 year limit on the guarantee period as required by the Income Tax Act (Canada),
(b) and (c) is consequential to Pension Benefits Standards Act requirements, and
(d) repeals a matter that is now covered under Part 3 as a non-registerable benefit.
SECTION 21:
(a) is consequential to Income Tax Act (Canada) requirements,
(b) is consequential to Pension Benefits Standards Act requirements, and
(c) limits disability benefits payable under this section to registerable maximums under the Income Tax Act (Canada).
SECTION 22:
(a) establishes new minimum vesting and portability standards as required by the Pension Benefits Standards Act in respect of death before retirement,
(b) is consequential to Pension Benefits Standards Act requirements, and
(c) establishes a maximum benefit limit in Part 2 as required by the Income Tax Act (Canada).
SECTION 23: establishes new minimum vesting and portability standards on termination as required by the Pension Benefits Standards Act and establishes permitted variations in benefit payments as provided for under the Pension Benefits Standards Act.
SECTION 24: establishes pension eligibility as required under the Pension Benefits Standards Act for persons who become re- employed in the public sector.
SECTION 25: adds a new Part 3 and enacts sections 19.2 to 19.8 of the Pension (College) Act:
SECTION 26: is consequential to the partitioning of the Pension (College) Act into Parts.
SECTION 27: relocates an existing provision of the Pension (College) Act under Part 4.
SECTION 28: is consequential to the supplemental pension provisions in Part 3.
SECTION 29: is a housekeeping amendment.
SECTION 30:
(a) and (b) is consequential to Pension Benefits Standards Act requirements,
(c) is consequential to the re-organization of benefits under the Pension (College) Act, and
(d) is consequential to Pension Benefits Standards Act requirements.
SECTION 31: is consequential to the relocation of section 9 of the Pension (College) Act into Part 4.
SECTION 32: is consequential to the re-organization of benefits under the Pension (College) Act.
SECTION 33: is a housekeeping amendment.
SECTION 34:
(a) and (b) adds references to the supplemental benefits allowance where required,
(c) allows the Lieutenant Governor in Council to prescribe the method by which interest is calculated, and
(d) is consequential to the repeal made by paragraph (c).
SECTION 35: repeals amendments to the Pension (Municipal) Act made by regulation effective January 1, 1993 under the authority of section 39 (2) of the Pension (Municipal) Act.
SECTION 36:
(a) is a housekeeping amendment,
(b) is consequential to the repeal of section 5 (3) of the Pension (Municipal) Act,
(c) changes the period of cohabitation to not less than 2 years and adds a reference to the supplemental pension provisions in the new Part 3,
(d) changes the definition to comply with requirements under the Pension Benefits Standards Act, and
(e) is a housekeeping amendment,
(f) and (g) is consequential to Pension Benefits Standards Act requirements,
(h) makes a cross reference change,
(i) is consequential to the re-organization of the Pension (Municipal) Act into Parts, and
(j) adds new definitions required for the administration of minimum standards under the Pensions Benefits Standards Act and for the administration of Income Tax Act registered plan provisions.
SECTION 37: is consequential to Pension Benefits Standards Act requirements.
SECTION 38: is consequential to the re-organization of the Pension (Municipal) Act into Parts.
SECTION 39: is consequential to the supplemental pension provisions in the new Part 3.
SECTION 40:
(a) is consequential to Pension Benefits Standards Act requirements,
(b) adds the Greater Victoria Labour Relations Association, the Education Relations Information Society, the B.C. Health Services and the B.C. Retired Teachers' Association to the pension plan,
(c) is consequential to Pension Benefits Standards Act eligibility criteria,
(d) is a housekeeping amendment,
(e) is consequential to Pension Benefits Standards Act requirements,
(f) is a housekeeping amendment, and
(g) repeals a requirement to retire within 5 years of maximum retirement age.
SECTION 41: is a housekeeping amendment.
SECTION 42: creates a new supplemental benefits account within the fund that is required for the payment of existing non- registrable benefits and provides for the payment of commuted value transfers in compliance with the Pension Benefits Standards Act.
SECTION 43: provides for contribution increases by the employer to fund the additional benefits resulting from Pension Benefits Standards Act requirements.
SECTION 44: is consequential to the re-organization of the Pension (Municipal) Act into Parts.
SECTION 45:
(a) is consequential to Pension Benefits Standards Act requirements,
(b) caps employee contributions at the plan benefit maximum of 35 years in accordance with Pension Benefits Standards Act requirements,
(c) makes a cross reference change,
(d) limits pensionable service recognition for leaves of absence as required under the Income Tax Act (Canada),
(e) eliminates voluntary contributions as required under the Income Tax Act (Canada), and
(f) to (h) makes cross reference changes.
SECTION 46: makes a cross reference change.
SECTION 47:
(a) is a housekeeping amendment,
(b) makes a cross reference change,
(c) repeals a subsection that is relocated to section 18.1 of the Pension (Municipal) Act,
(d) removes an unnecessary cross reference, and (e) adds a clarification.
SECTION 48: repeals a section that is relocated to section 4.1 of the Pension (Municipal) Act.
SECTION 49: makes a cross reference change.
SECTION 50:
(a) makes a cross reference change,
(b) limits benefits under Part 2 in respect of prior service as required by the Income Tax Act (Canada),
(c) makes a cross reference change, and
(d) removes an unnecessary cross reference.
SECTION 51:
(a) establishes a new 5 year vesting standard as required by the Pension Benefits Standards Act,
(b) is consequential to the establishment of the new 5 year vesting standard as required by the Pension Benefits Standards Act,
(c) repeals a definition that has been moved to section 1 of the Pension (Municipal) Act, and
(d) is consequential to Pension Benefits Standards Act requirements.
SECTION 52:
(a) repeals a definition that has been moved to section 1 of the Pension (Municipal) Act,
(b) removes an unnecessary cross reference,
(c) is consequential to the repeal of section 5 (3) of the Pension (Municipal) Act, and
(d) is consequential to Pension Benefits Standards Act requirements and limits the recognition of service under Part 2 to registrable maximums under the Income Tax Act (Canada).
SECTION 53:
(a) makes a cross reference change, and
(b) limits the benefits payable under Part 2 to registrable maximums under the Income Tax Act (Canada).
SECTION 54:
(a) introduces a 15 year limit on the guarantee period as required by the Income Tax Act (Canada),
(b) is consequential to Pension Benefits Standards Act requirements, and
(c) establishes new minimum vesting and portability standards on termination as required by the Pension Benefits Standards Act and establishes interest rates as required by the Pension Benefits Standards Act.
SECTION 55:
(a) is consequential to Pension Benefits Standards Act vesting requirements,
(b) is consequential to Income Tax Act (Canada) requirements, and
(c) limits disability benefits payable to registrable maximums as required by the Income Tax Act (Canada).
SECTION 56:
(a) and (b) is consequential to Pension Benefits Standards Act requirements,
(c) repeals a section that is relocated to another Part of the Pension (Municipal) Act,
(d) provides a clarification,
(e) is consequential to Pension Benefits Standards Act requirements, and
(f) limits death benefits payable to registrable maximums as required by the Income Tax Act (Canada).
SECTION 57: is consequential to the repeal of section 5 (3) of the Pension (Municipal) Act and makes a cross reference change.
SECTION 58: makes a cross reference change.
SECTION 59: eliminates refund rights that would be contrary to the Pension Benefits Standards Act locking-in requirements.
SECTION 60: establishes permitted variations in benefit payments as provided for under the Pension Benefits Standards Act.
SECTION 61: establishes pension eligibility as required under the Pension Benefits Standards Act for persons who become re- employed in the public sector.
SECTION 62: adds a new Part 3 and enacts sections 18.2 to 18.8 of the Pension (Municipal) Act:
SECTION 63: is consequential to re-organization of the Pension (Municipal) Act into Parts.
SECTION 64: is a housekeeping amendment.
SECTION 65: is consequential to the supplemental pension provisions in the new Part 3.
SECTION 66:
(a) and (b) is consequential to Pension Benefits Standards Act requirements, and
(c) is consequential to the re-organization of benefits under the Pension (Municipal) Act.
SECTION 67: limits investment of funds as required by the Pension Benefits Standards Act.
SECTIONS 68 and 69: are consequential to the supplemental pension provisions in the new Part 3.
SECTION 70:
(a) and (b) is a housekeeping amendment,
(c) is consequential to Pension Benefits Standards Act requirements, and
(d) is consequential to Income Tax Act (Canada) requirements.
SECTION 71:
(a) and (b) is consequential to the supplemental pension provisions in the new Part 3, and
(c) allows the Lieutenant Governor in Council to prescribe the method by which interest is calculated.
SECTION 72: repeals amendments to the Pension (Public Service) Act made by regulation effective January 1, 1993 under the authority of section 34 (6) of the Pension (Public Service) Act.
SECTION 73:
(a) is a housekeeping amendment,
(b) is consequential to the repeal of section 10 of the Pension (Public Service) Act,
(c) makes a cross reference change,
(d) changes the period of cohabitation to not less than 2 years and adds a reference to the supplemental pension provisions in the new Part 3,
(e) changes the definition to comply with requirements under the Pension Benefits Standards Act,
(f) makes a cross reference change,
(g) is a housekeeping amendment,
(h) is consequential to the partitioning of the Pension (Public Service) Act into Parts, and
(i) adds new definitions required for the administration of minimum standards under the Pension Benefits Standards Act and for the administration of Income Tax Act registered plan provisions.
SECTION 74:
(a) and (b) is consequential to the supplemental pension provisions in the new Part 3.
SECTION 75: is consequential to the re-organization of the Pension (Public Service) Act into Parts.
SECTION 76: is consequential to the supplemental pension provisions in the new Part 3.
SECTION 77:
(a) adds the Professional Employees Association and B.C. Ferry and Marine Workers' Union as an employer eligible to participate in the pension plan under the Pension (Public Service) Act,
(b) allows the commissioner to declare to whom the Pension (Public Service) Act applies in order to meet Pension Benefits Standards Act eligibility rules, and
(c) is consequential to Pension Benefits Standards Act requirements.
SECTION 78: is a housekeeping amendment.
SECTION 79: relocates and enacts under Part 1 new sections 4.1 to 4.9 of the Pension (Public Service) Act:
SECTION 80: is consequential to the partitioning of the Pension (Public Service) Act into Parts.
SECTION 81:
(a) is consequential to Pension Benefits Standards Act requirements,
(b) caps employee contributions to the registrable portion of the plan at the Income Tax Act (Canada) limits,
(c) is a housekeeping amendment, and
(d) limits employee contributions to the plan maximums in accordance with Pension Benefits Standards Act requirements.
SECTION 82:
(a) and (b) is consequential to the establishment of interest rates under section 12 (4) of the Pension (Public Service) Act, and
(c) makes a cross reference change.
SECTION 83:
(a) makes a cross reference change, and
(b) limits pensionable service recognition for leaves of absence as required under the Income Tax Act.
SECTION 84:
SECTION 85:
(a) clarifies eligibility rules,
(b) and (c) is consequential to the establishment of new interest rates under section 12 of the Pension (Public Service) Act,
(d) repeals a matter now covered by section 21.1 of the Pension (Public Service) Act,
(e) is a housekeeping amendment, and
(f) removes an unnecessary cross reference.
SECTION 86: limits benefits under Part 2 in respect of prior service as required by the Income Tax Act (Canada).
SECTION 87: repeals a section that has been relocated into Part 1 of the Pension (Public Service) Act.
SECTION 88:
(a) establishes a new 5 year vesting standard as required by the Pension Benefits Standards Act and limits benefits payable under Part 2 to registerable maximums under the Income Tax Act (Canada), and
(b) and (c) makes cross reference changes.
SECTION 89:
(a) repeals a definition that has been moved to section 1 of the Pension (Public Service) Act,
(b) is a housekeeping amendment,
(c) removes an unnecessary cross reference,
(d) makes a cross reference change,
(e) is consequential to the repeal of section 10 of the Pension (Public Service) Act, and
(f) limits benefits payable under Part 2 to registerable maximums under the Income Tax Act (Canada).
SECTION 90: is consequential to the repeal of section 10 of the Pension (Public Service) Act.
SECTION 91:
(a) introduces a 15 year limit on the guarantee period as required by the Income Tax Act (Canada),
(b) is consequential to Pension Benefits Standards Act requirements,
(c) establishes new minimum vesting and portability standards on termination as required by the Pension Benefits Standards Act,
(d) makes a cross reference change,
(e) is consequential to Pension Benefits Standards Act requirements, and
(f) makes a cross reference change.
SECTION 92:
(a) is consequential to Pension Benefits Standards Act requirements, and
(b) is consequential to the repeal of section 10 of the Pension (Public Service) Act.
SECTION 93:
(a) removes an unnecessary cross reference,
(b) to (d) is consequential to the repeal of section 10 of the Pension (Public Service) Act,
(e) is consequential to amendments to section 15 of the Pension (Public Service) Act, and
(f) establishes a maximum benefit limit in Part 2 as required by the Income Tax Act (Canada).
SECTION 94: establishes new minimum vesting and portability standards as required by the Pension Benefits Standards Act in respect of death before retirement and establishes a maximum benefit limit in Part 2 as required by the Income Tax Act (Canada).
SECTION 95: establishes permitted variations in benefit payments as provided for under the Pension Benefits Standards Act.
SECTION 96: establishes pension eligibility as required under the Pension Benefits Standards Act for persons who become re- employed in the public sector.
SECTION 97: is consequential to the new vesting standard under the Pension Benefits Standards Act for pre-retirement deaths.
SECTION 98: eliminates refund rights that would be contrary to the Pension Benefits Standards Act locking-in requirements.
SECTION 99: is consequential to the repeal of section 10 of the Pension (Public Service) Act and makes a cross reference change.
SECTION 100: repeals sections 24 to 34, 38 and 38.1 of the Pension (Public Service) Act, which sections are now relocated in other Parts and repeals section 35 which would otherwise be contrary to the anti-attachment provisions of the Pension Benefits Standards Act.
SECTION 101:
(a) makes reference to an Income Tax Act (Canada) limit and removes an unnecessary cross reference, and
(b) removes provisions that are unnecessary and that were never brought into force.
SECTION 102: repeals provisions that are relocated in other Parts of the Pension (Public Service) Act.
SECTIONS 103 and 104: remove an outdated restriction on benefit eligibility as required by the Pension Benefits Standards Act.
SECTION 105:
(a) is consequential to the definition of "pensionable age" in the Pension (Public Service) Act, and
(b) is consequential to the repeal of section 10 of the Pension (Public Service) Act.
SECTION 106:
(a) makes cross reference changes and is consequential to the partition of the Pension (Public Service) Act into Parts, and
(b) makes a cross reference change.
SECTION 107: is consequential to the partition of the Pension (Public Service) Act into Parts.
SECTION 108: repeals a spent provision.
SECTION 109: enacts new sections 48 to 53 of the Pension (Public Service) Act:
SECTION 110:
SECTION 111: repeals amendments to the Pension (Teachers) Act made by regulation effective January 1, 1993 under the authority of section 39 (2) of the Pension (Teachers) Act.
SECTION 112:
(a) is a housekeeping amendment,
(b) is consequential to the repeal of section 6 (2) of the Pension (Teachers) Act,
(c) changes the period of cohabitation to not less than 2 years and adds a reference to the supplemental pension provisions in the new Part 3,
(d) is consequential to the re-organization of the Pension (Teachers) Act into Parts, and
(e) adds new definitions required for the administration of minimum standards under the Pensions Benefits Standards Act and for the administration of Income Tax Act (Canada) registered plan provisions.
SECTION 113: is a housekeeping amendment.
SECTION 114: is consequential to the re-organization of the Pension (Teachers) Act into Parts.
SECTION 115:
(a) and (b) is consequential to the re-organization of benefits as required by the Income Tax Act (Canada), and
(c) and (d) makes cross reference changes.
SECTION 116: is consequential to Pension Benefits Standards Act requirements.
SECTION 117: creates a new supplemental benefits account within the fund that is required for the payment of existing non- registrable benefits and provides for employer contribution rate increases required to fund benefit changes required under the Pension Benefits Standards Act.
SECTION 118: is consequential to the re-organization of the Pension (Teachers) Act into Parts.
SECTION 119: repeals spent sections 4.2 and 4.3 of the Pension (Teachers) Act and repeals section 5 which is relocated to the new section 3.1.
SECTION 120:
(a) is consequential to Pension Benefits Standards Act requirements,
(b) caps employee contributions to the registrable portion of the plan at the Income Tax Act (Canada) limits,
(c) limits employee contributions to the plan benefit maximums (35 years) in accordance with Pension Benefits Standards Act requirements,
(d) makes a cross reference change,
(e) caps leave of absence provisions at the registrable maximums under the Income Tax Act (Canada),
(f) is a housekeeping amendment, and
(g) is consequential to Pension Benefits Standards Act requirements.
SECTION 121:
(a) makes a cross reference change and is consequential to the establishment of interest rates under section 17 of the Pension (Teachers) Act,
(b) is consequential to the establishment of interest rates under section 17 of the Pension (Teachers) Act, and
(c) makes a cross reference change.
SECTION 122:
(a) is a housekeeping amendment,
(b) is consequential to the establishment of interest rates under section 17 of the Pension (Teachers) Act,
(c) repeals a subsection that is relocated in section 18.1 of the Pension (Teachers) Act,
(d) is a housekeeping amendment, and
(e) repeals an unnecessary cross reference.
SECTION 123: repeals sections that are relocated in other Parts of the Pension (Teachers) Act.
SECTION 124: limits benefits under Part 2 in respect of prior service as required by the Income Tax Act (Canada).
SECTION 125:
(a) to (h) establishes the new eligibility rules and 5 year vesting standards as required by the Pension Benefits Standards Act,
(i) makes a cross reference change,
(j) removes an unnecessary cross reference,
(k) is consequential to Pension Benefits Standards Act requirements and the establishment of new interest rates under section 17 of the Pension (Teachers) Act, and
(l) establishes locking-in of pension benefits as required by the Pension Benefits Standards Act.
SECTION 126:
(a) repeals a definition that is relocated to section 1 (1) of the Pension (Teachers) Act,
(b) is a housekeeping amendment,
(c) removes an unnecessary cross reference,
(d) is consequential to the establishment of new interest rates under section 17 of the Pension (Teachers) Act, and
(e) limits benefits under section 12 of the Pension (Teachers) Act in respect of prior service as required by the Income Tax Act (Canada).
SECTION 127: limits benefits payable under Part 2 to those permitted by the Income Tax Act (Canada) for a registered plan.
SECTION 128:
(a) establishes a 15 year limit on the guarantee period as required by the Income Tax Act (Canada),
(b) is consequential to Pension Benefits Standards Act requirements, and
(c) repeals subsections that are relocated in section 18.7 of the Pension (Teachers) Act.
SECTION 129:
(a) is consequential to an Income Tax Act (Canada) requirement,
(b) is consequential to Pension Benefits Standards Act requirements, and
(c) limits disability benefits payable under this section to registrable maximums under the Income Tax Act (Canada).
SECTION 130:
(a) establishes new standards for death benefits as required by the Pension Benefits Standards Act,
(b) is consequential to Pension Benefits Standards Act requirements,
(c) removes unnecessary cross references,
(d) provides a clarification, and
(e) is consequential to Pension Benefits Standards Act requirements and limits death benefits payable to registrable maximums under the Income Tax Act (Canada).
SECTION 131: eliminates refund rights that would be contrary to the Pension Benefits Standards Act locking-in requirements.
SECTION 132: establishes new portability benefits and interest rates as required by the Pension Benefits Standards Act.
SECTION 133:
(a) is consequential to Pension Benefits Standards Act requirements, and
(b) establishes permitted variations in benefit payments as provided for under the Pension Benefits Standards Act.
SECTION 134: establishes pension eligibility as required under the Pension Benefits Standards Act for persons who become re- employed in the public sector.
SECTION 135: adds a new Part 3 and enacts sections 18.2 to 18.8 of the Pension (Teachers) Act:
SECTION 136: is consequential to the partition of the Pension (Teachers) Act into Parts.
SECTION 137: relocates existing provisions of the Pension (Teachers) Act under Part 4.
SECTION 138: is a housekeeping amendment.
SECTION 139:
(a) is a housekeeping amendment, and
(b) provides for investment in compliance with Pension Benefits Standards Act requirements.
SECTION 140: is a housekeeping amendment.
SECTION 141:
(a) allows the Lieutenant Governor in Council to prescribe the method by which interest is calculated, and
(b) and (c) repeals unnecessary references to interest rates.
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