1994 Legislative Session: 3rd Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE ELIZABETH CULL
MINISTER OF FINANCE AND
CORPORATE RELATIONS

BILL 53 -- 1994

PENSION STATUTES AMENDMENT ACT, 1994

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

 
Pension (College) Act

1 Section 1 (1) of the Pension (College) Act, R.S.B.C. 1979, c. 316, is amended

(a) by repealing the definition of "actuary" and substituting the following:

"actuary" means a person who is a Fellow of the Canadian Institute of Actuaries and who is engaged by the board as actuary under section 23; ,

(b) by repealing the definitions of "basic lifetime portion", "common law spouse" and "marriage",

(c) in the definition of "commuted value" by striking out "commissioner;" and substituting "board;",

(d) in the definition of "years of continuous employment" by striking out "section 7 or 19.1." and substituting "section 19.1 or the regulations.", and

(e) by adding the following definitions:

"board" means the College Pension Advisory Board established under this Act;

"spouse" means a spouse as defined in section 1 (1) of the Pension Benefits Standards Act; .

2 Section 1.1 is repealed and the following is substituted:

Notice of written agreement or court order

1.1 (1) If an employee is divorced and there is a written agreement or court order under which the spouse is entitled to or relinquishes entitlement to the benefits under this Act or has that entitlement cancelled, a copy of that written agreement or court order must be deposited with the commissioner before the death of the employee or before the date the employee commences receiving a superannuation allowance or supplemental benefits allowance or both, whichever first occurs.

(2) If the written agreement or court order is not deposited within the time required by subsection (1), the commissioner must not make any adjustment in the payment of an allowance other than an allowance granted under section 17 (1).

(3) If an adjustment is made for an allowance granted under section 17 (1), it applies only to payments made after the written agreement or court order is deposited.

3 Section 3 (7) (a) is amended by adding "less amounts allocated for the payment of premiums for prescribed group benefit entitlements," after "the employer's contributions made under section 5.1 (b) (iii), (c) (iii) and (d) (iii)".

4 The following section is added:

Additional employer contributions

5.2 (1) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 23, discloses that

(a) there has been an increase in the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll, and

(b) the increase has occurred since the immediately preceding actuarial valuation, then additional employer contributions as determined by the actuary as sufficient to

(c) meet the normal costs of the plan,

(d) hold the unfunded actuarial liability constant as a percentage of payroll, and

(e) amortize the identified increase in the unfunded actuarial liability over a period not exceeding 15 years, must be paid to the fund in a manner prescribed by the Lieutenant Governor in Council.

(2) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 23, discloses that

(a) a surplus has been created or an existing surplus has been increased, and

(b) the surplus or the increase has occurred since the immediately preceding actuarial valuation, then employer contributions may be reduced by the amount determined by the actuary as sufficient to amortize the identified surplus or increase over a period of not less than 15 years.

5 Section 6 (3) to (5) is repealed.

6 Section 6.3 is amended

(a) in subsection (2) by striking out "January 1, 1982" and substituting "January 1, 1995" and by striking out "a superannuation allowance that includes a basic lifetime portion" and substituting "a superannuation allowance",

(b) by adding the following subsection:

(2.1) The portion of the superannuation allowance eligible for adjustment is the total amount of the superannuation allowance payable monthly less the sum of

(a) any monthly pension provided as a temporary life annuity under section 15 (1) (d), and

(b) any monthly allowance provided under section 14 (1) (b). ,

(c) by repealing subsection (3) (b) and substituting the following:

(b) the portion of the superannuation allowance eligible for adjustment on that January 1. ,

(d) in subsection (4) (b) by striking out "basic lifetime",

(e) by repealing subsection (7), and

(f) by adding the following subsection:

(10) Any supplementary allowance deferred under subsection (7), as it read on December 31, 1994, must be provided commencing on January 1, 1995 and the capitalized value of the amount of any such supplementary allowance must be transferred from the inflation adjustment account to the basic account as of January 1, 1995.

7 Section 7 is repealed.

8 Section 11 (1) is amended

(a) in paragraph (a) by striking out "section 7 (4)," and substituting "the regulations,", and

(b) in paragraph (b) by striking out "pensionable by the commissioner" and substituting "pensionable by the board".

9 Section 13 is amended

(a) in subsection (1) by adding "who" after "Where an employee", and

(b) in subsection (3) (c) by striking out "section 6 (3);" and substituting "the regulations;".

10 Section 14 is amended

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

(a) 2% of the contributor's highest average salary multiplied by the number of years of pensionable service not exceeding 35 years, reduced at the age of 65 years or at the date of death or disability, whichever is earlier, by an amount that is equal to the sum of

(i) 7/10 of 1% of the lesser of

(A) the contributor's highest average salary, and

(B) 1/12 the year's maximum pensionable earnings for the calendar year immediately preceding the calendar year in which the superannuation allowance is received by the contributor, multiplied by the number of years of pensionable service after January 1, 1966, not exceeding 35 years, and

(ii) any supplementary allowance provided with respect to an amount in paragraph (i); and ,

(b) by adding the following subsection:

(3.1) If an employee retires from service on or after July 1, 1994 and while making contributions

(a) has attained an age of at least 50 years, and

(b) meets the service conditions specified by the board, the 5% referred to in subsection (2) (a) or (3) shall be 3%. ,

(c) by repealing subsection (5.1) and substituting the following:

(5.1) Subject to subsections (5.2) and (5.3), for the purpose of calculating the highest average salary, if an employee for any reason did not work full time during the 60 months immediately preceding the date the employee commenced receiving a superannuation allowance, the commissioner may, using a method of calculation determined by the board, utilize the salary from previous pensionable service, adjusted for inflation by a method determined by the board, to compensate for the period the employee was not working. , and

(d) in subsection (6) by striking out "the Lieutenant Governor in Council" and substituting "the board".

11 Section 15 (1.1) is amended by striking out "is married" and substituting "has a spouse".

12 Section 18.1 (2) is amended by striking out "acceptable to the commissioner." and substituting "acceptable to the board."

13 Section 19.2 is amended

(a) by repealing subsection (3), and

(b) in subsection (5) by striking out "6 (4.1),".

14 Section 19.3 (1) is repealed.

15 Section 19.7 is repealed.

16 The following sections are added:

College Pension Advisory Board

22.1 (1) A board known as the College Pension Advisory Board is established, consisting of 7 members appointed by the Lieutenant Governor in Council as follows:

(a) 3 persons nominated by the government;

(b) 2 persons nominated by the College Institute Educators Association;

(c) one person nominated by the B.C. Government and Service Employees' Union;

(d) the commissioner.

(2) An appointment under subsection (1) (a), (b) or (c) may be made for a period of not more than 3 years, and an appointment under that subsection may be renewed or extended.

(3) The appointments made under subsection (1) (a), (b) and (c) must be made so that no more than 2 appointments will expire in any one calendar year.

(4) The commissioner is the chair of the board.

(5) All expenses necessarily incurred by board members in carrying out their responsibilities may be paid out of the fund.

Powers of the board

22.2 The board may do any of the following:

(a) make recommendations to the minister with respect to this Act and the regulations and, before enactment, review amendments to this Act or the regulations;

(b) make recommendations to Treasury Board with respect to

(i) changes in benefits,

(ii) funding policies for the plan,

(iii) contribution rates,

(iv) modifications to the plan, and

(v) the budget of the commissioner;

(c) make recommendations to the Minister of Finance and Corporate Relations with respect to the investment of the fund;

(d) report to plan members on issues related to the plan;

(e) establish procedures and methods for board operations.

Duties of the board

22.3 Subject to this Act and the regulations, the board must do all of the following:

(a) submit to Treasury Board and to the minister an annual report on the operation of the plan, the fund and the board;

(b) review reports on the investment of the fund;

(c) direct the commissioner on the application of plan rules;

(d) carry out other prescribed duties and responsibilities.

Right to appeal

22.4 (1) A person or organization directly affected by a decision of the commissioner in the application of the plan rules may, by written notice to the board, appeal all or part of the decision in accordance with the practice and procedure specified by the board.

(2) The board must ensure that each appeal is dealt with promptly and efficiently.

(3) For the purposes of this section, the board and each of its members has the powers, protection and privileges of a commissioner under sections 12, 15 and 16 of the Inquiry Act.

17 Section 23 is repealed and the following substituted:

Actuary

23 (1) The board may engage the services of an actuary for the purposes of this Act.

(2) The actuary must

(a) make all actuarial reports and computations required by the board,

(b) make actuarial valuations of assets and liabilities under this Act when requested to do so by the board, and

(c) report to the board the results of each actuarial valuation.

(3) Despite subsection (2) (b), actuarial valuations must be made at least once in each 3 year period.

(4) Any amount paid to the actuary for his or her services is an expense incurred in the administration of this Act.

18 Section 25 is amended by striking out "the actuary" and substituting "the board".

19 Section 27 is amended

(a) in subsection (2.1) (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,", and

(b) by adding the following subsection:

(5) The accounts and records required by subsection (4) are reviewable at any time by the board.

20 Section 28 is amended by striking out "of the commissioner and of the trustees" and substituting "of the commissioner, the board and the trustees".

21 Section 32 (1) is amended by striking out "and" at the end of paragraph (k) and by adding the following paragraphs:

(m) prescribing group benefit entitlements which may be provided for pensioners, including extended health plans and dental plans;

(n) prescribing terms and conditions under which the group benefit entitlements referred to in paragraph (m) may be provided and funded from employer contributions under section 5.1 (c) (iii) and (d) (iii);

(o) prescribing the terms and conditions under which coverage under the Medical Services Plan of British Columbia may be funded from employer contributions under section 5.1 (c) and (d); and

(p) prescribing duties and responsibilities of the College Pension Advisory Board.

22 The following section is added:

Service recognition

33 The Lieutenant Governor in Council may prescribe the terms and conditions, including the costs to be paid, under which

(a) leaves of absence from an employer may be included as contributory and pensionable service,

(b) previous service under this plan, or with a reciprocal employer, may be included as contributory and pensionable service, or

(c) periods of child rearing may be included as contributory service.

 
Pension (Municipal) Act

23 Section 1 (1) of the Pension (Municipal) Act, R.S.B.C. 1979, c. 317, is amended

(a) by repealing the definition of "actuary" and substituting the following:

"actuary" means a person who is a Fellow of the Canadian Institute of Actuaries and who is engaged by the board as actuary under section 29; ,

(b) in the definition of "approved employer" by repealing paragraph (g) and substituting the following:

(g) BC Rail Ltd., ,

(c) by repealing the definitions of "basic lifetime portion", "common law spouse" and "marriage",

(d) in the definition of "commuted value" by striking out "commissioner;" and substituting "board;",

(e) in the definition of "highest average salary" by striking out "any 60 months of service preceding the date on which a superannuation allowance or supplemental benefits allowance is granted;" and substituting "any 5 years of service in which that contributor received his or her highest salary;",

(f) in the definition of "years of continuous employment" by striking out "section 6 or 18.1." and substituting "section 18.1 or the regulations.", and

(g) by adding the following definitions:

"board" means the Municipal Pension Board established under this Act;

"spouse" means a spouse as defined in section 1 (1) of the Pension Benefits Standards Act; .

24 Section 1.1 is repealed and the following is substituted:

Notice of written agreement or court order

1.1 (1) If an employee is divorced and there is a written agreement or court order under which the spouse is entitled to or relinquishes entitlement to the benefits under this Act or has that entitlement cancelled, a copy of that written agreement or court order must be deposited with the commissioner before the death of the employee or before the date the employee commences receiving a superannuation allowance or supplemental benefits allowance or both, whichever first occurs.

(2) If the written agreement or court order is not deposited within the time required by subsection (1), the commissioner must not make any adjustment in the payment of an allowance other than an allowance granted under section 15 (1) or (2).

(3) If an adjustment is made for an allowance granted under section 15 (1) or (2), it applies only to payments made after the written agreement or court order is deposited.

25 Section 2 is amended

(a) in subsection (1) (b), (c), (d) and (f) by striking out "the Provincial Secretary," and substituting "the minister,",

(b) in subsection (1) (e) and (h) by striking out "the Provincial Secretary" and substituting "the minister", and

(c) in subsection (2) (c) by striking out "the Provincial Secretary," and substituting "the board,".

26 Section 3 is amended by striking out "section 18 (5)" and substituting "section 18.1".

27 Section 4 (7) (a) is repealed and the following substituted:

(a) contributions made under section 4.1 (1) (g) less amounts allocated for the payment of premiums for prescribed group benefit entitlements, and contributions made under section 5 (1) (c), .

28 The following section is added:

Additional employer contributions

4.2 (1) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 29, discloses that

(a) there has been an increase in the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll, and

(b) the increase has occurred since the immediately preceding actuarial valuation, then additional employer contributions as determined by the actuary as sufficient to

(c) meet the normal costs of the plan,

(d) hold the unfunded actuarial liability constant as a percentage of payroll, and

(e) amortize the identified increase in the unfunded actuarial liability over a period not exceeding 15 years, must be paid to the fund in a manner prescribed by the Lieutenant Governor in Council.

(2) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 29, discloses that

(a) a surplus has been created or an existing surplus has been increased, and

(b) the surplus or the increase has occurred since the immediately preceding actuarial valuation, then employer contributions may be reduced by the amount determined by the actuary as sufficient to amortize the identified surplus or increase over a period of not less than 15 years.

29 Section 5 is amended

(a) in subsection (1) by striking out "section 18.1 (1) (b)" and substituting "section 18.1 (1) (c)", and

(b) by repealing subsections (2) and (2.1).

30 Section 6 is repealed.

31 Section 9 (5) is amended by striking out "one month's pensionable service." and substituting "one month's contributory service."

32 Section 10 is amended

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

(ii) has a combined age plus years of contributory service that is equal to not less than 90 years, ,

(b) by repealing subsection (1) (e) (ii) and substituting the following:

(ii) has a combined age plus years of contributory service that is equal to not less than 80 years, ,

(c) in subsection (3) by striking out "on and after January 1, 1993," and substituting "on or after July 1, 1994,",

(d) in subsection (3) (b) by striking out "reduced by 5%" and substituting "reduced by 3%",

(e) by adding the following subsection:

(3.1) If, on or after July 1, 1994, an employee who, not being entitled to a superannuation allowance under subsection (1) or (3) of this section or section 13 (7) or (8), retires, resigns or is dismissed from service and the employee

(a) has attained an age that is not more than 5 years under the minimum retirement age for the employee's group as specified in section 2 (3), and

(b) has completed 5 or more years of continuous employment or 5 or more years of contributory service, the employee is entitled, on application, to receive a superannuation allowance calculated under section 12, but the allowance referred to in section 12 (1) (b) must be reduced by the lesser of

(c) 3% of that amount for each year by which the employee's age is less than the minimum retirement age for the employee's group, and

(d) 3% of that amount for each year by which

(i) the sum of the employee's age plus contributory service is less than 90 years for an employee referred to in section 2 (3) (a) or (d), or

(ii) the sum of the employee's age plus contributory service is less than 80 years for an employee referred to in section 2 (3) (b) or (c), and the amount shall be prorated for fractions of a year. ,

(f) in subsection (4) by striking out "a refund," and substituting "a benefit,",

(g) in subsection (5) by striking out "a refund" and substituting "a benefit", and

(h) in subsection (8) by striking out "the Lieutenant Governor in Council," and substituting "the board,".

33 Section 11 (6) is amended by striking out "prescribed by order of the Lieutenant Governor in Council." and substituting "specified by the board."

34 Section 12 is amended

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

(c) the amount of the monthly superannuation allowance on the single life plan referred to in section 13 must be reduced at the age of 65 years, or at the date of death or disability, whichever is earlier, by an amount that is equal to the sum of

(i) 7/10 of 1% of the lesser of

(A) the employee's highest average salary, and

(B) 1/12 the year's maximum pensionable earnings for the calendar year immediately preceding the calendar year in which the superannuation allowance is received by the employee, multiplied by the number of years of pensionable service after January 1, 1966, not exceeding 35 years, and

(ii) any supplementary allowance provided with respect to an amount in paragraph (i); , and

(b) by repealing subsection (2.1) and substituting the following:

(2.1) Subject to subsections (2.2) and (2.3), for the purpose of calculating the highest average salary, if an employee for any reason did not work full time during the 60 months immediately preceding the date the employee commenced receiving a superannuation allowance, the commissioner may, using a method of calculation determined by the board, utilize the salary from previous pensionable service, adjusted for inflation by a method determined by the board, to compensate for the period the employee was not working.

35 Section 13 is amended

(a) in subsection (1.1) by striking out "is married" and substituting "has a spouse", and

(b) in subsection (7) (b) by striking out "the 2% referred to in section 12 (1)" and substituting "the 1 3/4% referred to in section 12 (1) (a) and the 2% referred to in section 12 (1) (b)".

36 Section 15 is amended

(a) by adding the following subsection:

(1.1) If, on the death of a contributor, no superannuation allowance is payable under subsection (1), there must be a refund, calculated in accordance with section 13 (10), payable as follows:

(a) to the spouse of the contributor unless

(i) the contributor has nominated some other person after the date of the contributor's last marriage, and

(ii) the nomination is with the written consent of the contributor's spouse;

(b) if there is no person entitled under paragraph (a), to the payee nominated by the contributor under subsection (5);

(c) if there is no person entitled under paragraph (a) or (b), to the personal representative of the estate of the contributor. , and

(b) in subsection 2 (b) by striking out "section 13 (10) (b)." and substituting "section 13 (9) (b)."

37 Section 16.1 is amended

(a) in subsection (2) by striking out "January 1, 1982" and substituting "January 1, 1995" and by striking out "a superannuation allowance that includes a basic lifetime portion," and substituting "a superannuation allowance,",

(b) by adding the following subsection:

(2.1) The portion of the superannuation allowance eligible for adjustment is the total amount of the superannuation allowance payable monthly less the sum of

(a) any monthly pension provided as a temporary life annuity under section 13 (1) (d),

(b) any monthly allowance provided under section 12 (1) (d) (i), and

(c) any monthly allowance provided with respect to voluntary contributions made under section 5 (3) as of December 31, 1992. ,

(c) by repealing subsection (3) (b) and substituting the following:

(b) the portion of the superannuation allowance eligible for adjustment on that January 1. ,

(d) in subsection (4) (b) by striking out "basic lifetime",

(e) by repealing subsection (7), and

(f) by adding the following subsection:

(10) Any supplementary allowance deferred under subsection (7), as it read on December 31, 1994, will be provided commencing on January 1, 1995 and the capitalized value of the amount of any such supplementary allowance will be transferred from the inflation adjustment account to the basic account as of January 1, 1995.

38 Section 18 (9) is amended by striking out "acceptable to the commissioner." and substituting "acceptable to the board."

39 Section 18.1 (2) (a) is amended by striking out "repay to" and substituting "to repay to".

40 Section 18.7 is repealed.

41 The following sections are added:

Municipal Pension Board

23.1 (1) A board known as the Municipal Pension Board is established consisting of 9 members appointed by the Lieutenant Governor in Council as follows:

(a) 3 persons nominated by the government;

(b) 4 persons representative of the plan members, nominated by the Municipal Employees Pension Committee;

(c) one person nominated by the Union of British Columbia Municipalities;

(d) the commissioner.

(2) An appointment under subsection (1) (a), (b) or (c) may be made for a period of not more than 2 years, and an appointment under that subsection may be renewed or extended.

(3) The commissioner is the chair of the board.

(4) All expenses necessarily incurred by board members in carrying out their responsibilities may be paid out of the fund.

Powers of the board

23.2 The board may do any of the following:

(a) make recommendations to the minister with respect to this Act and the regulations and, before enactment, review amendments to this Act or the regulations;

(b) make recommendations to Treasury Board with respect to

(i) changes in benefits,

(ii) funding policies for the plan,

(iii) contribution rates,

(iv) modifications to the plan, and

(v) the budget of the commissioner;

(c) make recommendations to the Minister of Finance and Corporate Relations with respect to the investment of the fund;

(d) report to plan members on issues related to the plan;

(e) establish procedures and methods for board operations.

Duties of the board

23.3 Subject to this Act and the regulations, the board must do all of the following:

(a) submit to Treasury Board and to the minister an annual report on the operation of the plan, the fund and the board;

(b) review reports on the investment of the fund;

(c) direct the commissioner on the application of plan rules;

(d) carry out other prescribed duties and responsibilities.

Right to appeal

23.4 (1) A person or organization directly affected by a decision of the commissioner in the application of the plan rules may, by written notice to the board, appeal all or part of the decision in accordance with the practice and procedure specified by the board.

(2) The board must ensure that each appeal is dealt with promptly and efficiently.

(3) For the purposes of this section, the board and each of its members has the powers, protection and privileges of a commissioner under sections 12, 15 and 16 of the Inquiry Act.

42 Section 27 is amended by striking out "the commissioner," and substituting "the board,".

43 Sections 29 and 30 are repealed and the following substituted:

Actuary

29 (1) The board may engage the services of an actuary for the purposes of this Act.

(2) The actuary must

(a) make all actuarial reports and computations required by the board,

(b) make actuarial valuations of assets and liabilities under this Act when requested to do so by the board, and

(c) report to the board the results of each actuarial valuation.

(3) Despite subsection (2) (b), actuarial valuations must be made at least once in each 3 year period.

(4) Any amount paid to the actuary for his or her services is an expense incurred in the administration of this Act.

44 Section 35 is amended by adding "and the board" after "accounts of the commissioner".

45 Section 38 (1) is amended

(a) in paragraph (a) by striking out "commissioner," and substituting "board,", and

(b) in paragraph (g) by striking out "commissioner" and substituting "board".

46 Section 39 (1) is amended by striking out "and" at the end of paragraph (k) and by adding the following paragraphs:

(m) prescribing group benefit entitlements which may be provided for pensioners, including extended health plans and dental plans;

(n) prescribing terms and conditions under which the group benefit entitlements referred to in paragraph (m) may be provided and funded from employer contributions under section 4.1 (1) (g);

(o) prescribing the terms and conditions under which coverage under the Medical Services Plan of British Columbia may be funded from employer contributions under section 4.1 (1); and

(p) prescribing duties and responsibilities of the Municipal Pension Board.

47 The following section is added:

Service recognition

40 The Lieutenant Governor in Council may prescribe the terms and conditions, including the costs to be paid, under which

(a) leaves of absence from an employer may be included as contributory and pensionable service,

(b) previous service under this plan, or with a reciprocal employer, may be included as contributory and pensionable service, or

(c) periods of child rearing may be included as contributory service.

 
Pension (Public Service) Act

48 Section 1 (1) of the Pension (Public Service) Act, R.S.B.C. 1979, c. 318, is amended

(a) by repealing the definitions of "basic lifetime portion", "common law spouse" and "marriage",

(b) in the definition of "commuted value" by striking out "commissioner;" and substituting "board;",

(c) in the definition of "years of continuous employment" by striking out "section 13 or 21.1." and substituting "section 21.1 or the regulations.", and

(d) by adding the following definitions:

"actuary" means a person who is a Fellow of the Canadian Institute of Actuaries and who is engaged by the board as actuary under section 4.9;

"board" means the Public Service Pension Advisory Board established under this Act;

"spouse" means a spouse as defined in section 1 (1) of the Pension Benefits Standards Act; .

49 Section 1 (2) is amended by striking out "determined by him," and substituting "approved by the board," and by striking out "determined by the commissioner," and substituting "approved by the board,".

50 Section 1.1 is repealed and the following is substituted:

Notice of written agreement or court order

1.1 (1) If an employee is divorced and there is a written agreement or court order under which the spouse is entitled to or relinquishes entitlement to the benefits under this Act or has that entitlement cancelled, a copy of that written agreement or court order must be deposited with the commissioner before the death of the employee or before the date the employee commences receiving a superannuation allowance or supplemental benefits allowance or both, whichever first occurs.

(2) If the written agreement or court order is not deposited within the time required by subsection (1), the commissioner must not make any adjustment in the payment of an allowance other than an allowance granted under section 20 (1) (a) or (2).

(3) If an adjustment is made for an allowance granted under section 20 (1) (a) or (2), it applies only to payments made after the written agreement or court order is deposited.

51 Section 2 is amended

(a) in subsection (1) (h) by striking out "the Lieutenant Governor in Council;" and substituting "the board;", and

(b) in subsection (2) by striking out "the Lieutenant Governor in Council" and substituting "the board".

52 Section 4.1 (5) (a) is repealed and the following substituted:

(a) contributions made under section 4.2 (1) (c) (iii), (d) (iii), (e) (iii), (f) (iii), (g) (iii) or (h) (iii) less amounts allocated for the payment of premiums for prescribed group benefit entitlements, and contributions made under section 6 (1) (c), .

53 Section 4.2 (2) is amended by striking out "section 13 or 61 (4) or (6)," and substituting "section 61 (4) or (6) or under the regulations,".

54 The following section is added:

Additional employer contributions

4.21 (1) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 4.9, discloses that

(a) there has been an increase in the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll, and

(b) the increase has occurred since the immediately preceding actuarial valuation, then additional employer contributions as determined by the actuary as sufficient to

(c) meet the normal costs of the plan,

(d) hold the unfunded actuarial liability constant as a percentage of payroll, and

(e) amortize the identified increase in the unfunded actuarial liability over a period not exceeding 15 years, must be paid to the fund in a manner prescribed by the Lieutenant Governor in Council.

(2) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 4.9, discloses that

(a) a surplus has been created or an existing surplus has been increased, and

(b) the surplus or the increase has occurred since the immediately preceding actuarial valuation, then employer contributions may be reduced by the amount determined by the actuary as sufficient to amortize the identified surplus or increase over a period of not less than 15 years.

55 The following sections are added:

Public Service Pension Advisory Board

4.51 (1) A board known as the Public Service Pension Advisory Board is established consisting of 9 members appointed by the Lieutenant Governor in Council as follows:

(a) 4 persons nominated by the government;

(b) 3 persons nominated by current employee groups of which one person is named by each of the bargaining units provided for in section 4 of the Public Service Labour Relations Act;

(c) one person nominated by the B.C. Retired Government Employees' Association;

(d) the commissioner.

(2) An appointment under subsection (1) (a) to (c) may be made for a period of not more than 2 years, and an appointment under that subsection may be renewed or extended.

(3) The commissioner is the chair of the board.

(4) All expenses necessarily incurred by board members in carrying out their responsibilities may be paid out of the fund.

Powers of the board

4.52 The board may do any of the following:

(a) make recommendations to the minister with respect to the Act and the regulations and, before enactment, review amendments to the Act or the regulations;

(b) make recommendations to Treasury Board with respect to

(i) changes in benefits,

(ii) funding policies for the plan,

(iii) contribution rates,

(iv) modifications to the plan, and

(v) the budget of the commissioner;

(c) make recommendations to the Minister of Finance and Corporate Relations with respect to the investment of the fund;

(d) report to plan members on issues related to the plan;

(e) establish procedures and methods for board operations.

Duties of the board

4.53 Subject to this Act and the regulations, the board must do all of the following:

(a) submit to Treasury Board and to the minister an annual report on the operation of the plan, the fund and the board;

(b) review reports on the investment of the fund;

(c) direct the commissioner on the application of plan rules;

(d) carry out other prescribed duties and responsibilities.

Right to appeal

4.54 (1) A person or organization directly affected by a decision of the commissioner in the application of the plan rules may, by written notice to the board, appeal all or part of the decision in accordance with the practice and procedure specified by the board.

(2) The board must ensure that each appeal is dealt with promptly and efficiently.

(3) For the purposes of this section, the board and each of its members has the powers, protection and privileges of a commissioner under sections 12, 15 and 16 of the Inquiry Act.

56 Section 4.9 is repealed and the following substituted:

Actuary

4.9 (1) The board may engage the services of an actuary for the purposes of this Act.

(2) The actuary must

(a) make all actuarial reports and computations required by the board,

(b) make actuarial valuations of assets and liabilities under this Act when requested to do so by the board, and

(c) report to the board the results of each actuarial valuation.

(3) Despite subsection (2) (b), actuarial valuations must be made at least once in each 3 year period.

(4) Any amount paid to the actuary for his or her services is an expense incurred in the administration of this Act.

57 Section 6 (1) is amended by striking out "under section 21.1 (1) (c) not".

58 Section 13 is repealed.

59 Section 15 is amended

(a) in subsection (1) (b) by striking out "on or after January 1, 1993," and substituting "on or after July 1, 1994,",

(b) by repealing subsection (1) (b) (i) and substituting the following:

(i) having reached an age not more than 10 years under the maximum retirement age and having a combined age plus contributory service of not less than 90 years minus the number of years that the maximum retirement age for that employee is less than age 65, , and

(c) by adding the following subsections:

(1.6) A contributor not otherwise entitled to a superannuation allowance under section 15 (1), (1.4) or (1.5) or section 18 (4) or (4.02) but who

(a) retires from service on or after July 1, 1994,

(b) has 5 or more years of continuous employment or 5 or more years of contributory service, and

(c) has reached an age that is not more than 5 years under pensionable age, is entitled, on application, to a superannuation allowance calculated under section 19, but the 2% referred to in section 19 (1) shall be reduced by 5% for the lesser of

(d) each year the contributor is under pensionable age, and

(e) each year the sum of the contributor's age plus contributory service is less than 90 years minus the number of years that the maximum retirement age for that employee is less than age 65, and the reduction shall be prorated for fractions of years.

(1.7) If an employee retires from service on or after July 1, 1994 and while making contributions

(a) has attained an age that is within 15 years of the maximum retirement age, and

(b) meets the service requirements specified by the board, the 5% referred to in subsection (1.6) shall be 3%.

60 Section 15 is amended

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

(b) a superannuation allowance calculated under section 19 if the contributor is retired from service on or after January 1, 1996,

(i) having reached an age not more than 10 years under the maximum retirement age and having a combined age plus contributory service of not less than 90 years minus the number of years that the maximum retirement age for that employee is less than age 65,

(ii) having reached pensionable age and after not less than 2 years of contributory service, or

(iii) having completed 2 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. , and

(b) by repealing subsections (1.4) to (1.6) and substituting the following:

(1.4) A contributor who, on or after January 1, 1996, has less than 2 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, on or after January 1, 1996, has less than 2 years of contributory service and has reached pensionable age is entitled to a superannuation allowance calculated 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.

(1.6) A contributor not otherwise entitled to a superannuation allowance under section 15 (1), (1.4) or (1.5) or section 18 (4) or (4.02) but who

(a) retires from service on or after January 1, 1996,

(b) has 2 or more years of contributory service, and

(c) has reached an age that is not more than 5 years less than pensionable age, is entitled, on application, to a superannuation allowance calculated under section 19, but the 2% referred to in section 19 (1) shall be reduced by 5% for the lesser of

(d) each year the contributor is under pensionable age, and

(e) each year the sum of the contributor's age plus contributory service is less than 90 years minus the number of years that the maximum retirement age for that employee is less than age 65, and the reduction shall be prorated for fractions of years.

61 Section 17 (1) is amended by striking out "made under sections 6, 7 and 13 and accrued interest," and substituting "made under sections 6 and 7 and the regulations and the accrued interest,".

62 Section 18 is amended

(a) in subsection (1.1) by striking out "is married" and substituting "has a spouse", and

(b) in subsection (4) by striking out "or" at the end of paragraph (a), by adding ", or" at the end of paragraph (b) and by adding the following paragraph:

(c) in respect of pensionable service on and after January 1, 1996 if the contributor has completed 2 or more years of contributory service at the termination of membership.

63 Section 19 (1) is amended

(a) by adding "equal to the sum of" after "by an amount that is", and

(b) by repealing paragraphs (a) and (b) and substituting the following:

(a) 7/10 of 1% of the lesser of

(i) the contributor's highest average salary, and

(ii) 1/12 of the year's maximum pensionable earnings for the calendar year immediately preceding the calendar year in which the superannuation allowance is received by the contributor, multiplied by the number of years of the contributor's pensionable service after January 1, 1966 not exceeding 35 years, and

(b) any supplementary allowance provided with respect to an amount in paragraph (a).

64 Section 20 (1) is amended

(a) by striking out "January 1, 1993," and substituting "January 1, 1996,", and

(b) by striking out "5 years of continuous employment or not less than 5 years of contributory service," and substituting "2 years of contributory service,".

65 Section 21 (7) is amended by striking out "acceptable to the commissioner." and substituting "acceptable to the board."

66 Section 22 (1) is amended by striking out "If a contributor" and substituting "If, on or after January 1, 1996, a contributor" and by striking out "5 years of continuous employment or 5 years of contributory service" and substituting "2 years of contributory service".

67 Section 42.1 is amended

(a) in subsection (2) by striking out "January 1, 1982" and substituting "January 1, 1995" and by striking out "a superannuation allowance that includes a basic lifetime portion," and substituting "a superannuation allowance,",

(b) by adding the following subsection:

(2.1) The portion of the superannuation allowance eligible for adjustment is the total amount of the superannuation allowance payable monthly less the sum of

(a) any monthly pension provided as a temporary life annuity under section 18 (1) (d), and

(b) any monthly allowance provided under section 19 (5). ,

(c) by repealing subsection (3) (b) and substituting the following:

(b) the portion of the superannuation allowance eligible for adjustment on that January 1. ,

(d) in subsection (4) (b) by striking out "basic lifetime",

(e) by repealing subsection (7), and

(f) by adding the following subsection:

(10) Any supplementary allowance deferred under subsection (7), as it read on December 31, 1994, will be provided commencing on January 1, 1995 and the capitalized value of the amount of any such supplementary allowance will be transferred from the inflation adjustment account to the basic account as of January 1, 1995.

68 Section 59 (4) is amended by striking out "the Lieutenant Governor in Council," and substituting "the board,".

69 Section 61 (2) is amended by adding the following paragraphs:

(m) prescribing group benefit entitlements which may be provided for pensioners, including extended health plans and dental plans;

(n) prescribing terms and conditions under which the group benefit entitlements referred to in paragraph (m) may be provided and funded from employer contributions under section 4.2 (e) (iii), (f) (iii), (g) (iii) and (h) (iii);

(o) prescribing duties and responsibilities of the Public Service Pension Advisory Board.

70 The following section is added:

Service recognition

62 The Lieutenant Governor in Council may prescribe the terms and conditions, including the costs to be paid, under which previous service under this plan, or with a reciprocal employer, may be included as contributory and pensionable service.

 
Pension (Teachers) Act

71 Section 1 (1) of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, is amended

(a) by repealing the definition of "actuary" and substituting the following:

"actuary" means a person who is a Fellow of the Canadian Institute of Actuaries and who is engaged by the board as actuary under section 29; ,

(b) in the definition of "board" by striking out "Pensions" and substituting "Pension",

(c) by repealing the definitions of "basic lifetime portion", "common law spouse" and "marriage",

(d) in the definition of "commuted value" by striking out "commissioner;" and substituting "board;",

(e) in the definition of "fund" by striking out "Pensions" and substituting "Pension",

(f) in the definition of "years of continuous employment" by striking out "section 7 or 18.1." and substituting "section 18.1 or the regulations.", and

(g) by adding the following definition:

"spouse" means a spouse as defined in section 1 (1) of the Pension Benefits Standards Act; .

72 Section 1.1 is repealed and the following is substituted:

Notice of written agreement or court order

1.1 (1) If an employee is divorced and there is a written agreement or court order under which the spouse is entitled to or relinquishes entitlement to the benefits under this Act or has that entitlement cancelled, a copy of that written agreement or court order must be deposited with the commissioner before the death of the employee or before the date the employee commences receiving a superannuation allowance or supplemental benefits allowance or both, whichever first occurs.

(2) If the written agreement or court order is not deposited within the time required by subsection (1), the commissioner must not make any adjustment in the payment of an allowance other than an allowance granted under section 16 (1) or (2).

(3) If an adjustment is made for an allowance granted under section 16 (1) or (2), it applies only to payments made after the written agreement or court order is deposited.

73 Section 2 (1) is amended

(a) in paragraph (e) by striking out "Teachers' Pensions Board;" and substituting "board;", and

(b) in paragraph (h) by striking out "Teacher's Pensions Board." and substituting "board."

74 Section 3.1 (5) (a) is repealed and the following substituted:

(a) contributions made under section 3.2 (1) (a) (iii), (b) (iii), (c) (iii) and (d) (iii) less amounts allocated for the payment of premiums for prescribed group benefit entitlements, and contributions made under section 6 (1) (c), .

75 The following section is added:

Additional employer contributions

3.3 (1) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 29, discloses that

(a) there has been an increase in the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll,

(b) the increase has occurred since the immediately preceding actuarial valuation, and

(c) the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll is greater than 50%, then additional employer contributions as determined by the actuary as sufficient to

(d) meet the normal costs of the plan, and

(e) reduce the amount of the unfunded actuarial liability expressed as a percentage of payroll to 50% over a period of not more than 35 years, must be paid to the fund in a manner prescribed by the Lieutenant Governor in Council.

(2) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 29, discloses that

(a) there has been an increase in the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll,

(b) the increase has occurred since the immediately preceding actuarial valuation, and

(c) the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll is 50% or less, then additional employer contributions as determined by the actuary as sufficient to

(d) meet the normal costs of the plan,

(e) hold the unfunded actuarial liability constant as a percentage of payroll, and

(f) amortize the identified increase in the unfunded actuarial liability over a period not exceeding 15 years, must be paid to the fund in a manner prescribed by the Lieutenant Governor in Council.

(3) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 29, discloses that

(a) a surplus has been created or an existing surplus has been increased, and

(b) the surplus or the increase has occurred since the immediately preceding actuarial valuation, then employer contributions may be reduced by an amount determined by the actuary as sufficient to amortize the identified surplus or increase over a period of not less than 15 years.

76 Section 4.1 is amended

(a) in subsection (1) by striking out "under section 5" and substituting "under section 3.2",

(b) in subsection (2) by striking out "January 1, 1982" and substituting "January 1, 1995" and by striking out "a superannuation allowance that includes a basic lifetime portion," and substituting "a superannuation allowance,",

(c) by adding the following subsection:

(2.1) The portion of the superannuation allowance eligible for adjustment is the total amount of the superannuation allowance payable monthly less the sum of

(a) any monthly pension provided as a temporary life annuity under section 14 (1) (d), and

(b) any monthly allowance provided under section 13 (1) (b). ,

(d) by repealing subsection (3) (b) and substituting the following:

(b) the portion of the superannuation allowance eligible for adjustment on that January 1. ,

(e) in subsection (4) (b) by striking out "basic lifetime",

(f) in subsection (6) by striking out "under section 5." and substituting "under section 3.2.",

(g) by repealing subsection (7), and

(h) by adding the following subsection:

(10) Any supplementary allowance deferred under subsection (7), as it read on December 31, 1994, will be provided commencing on January 1, 1995 and the capitalized value of the amount of any such supplementary allowance will be transferred from the inflation adjustment account to the basic account as of January 1, 1995.

77 Section 6 is amended

(a) in subsection (1) by striking out "section 18.1 (1) (b)" and substituting "section 18.1 (1) (c)", and

(b) by repealing subsections (4) to (7).

78 Section 7 is repealed.

79 Section 10 (1) (b) is amended by striking out "section 7;" and substituting "the regulations;".

80 Section 10.2 (3) is amended by striking out "reinstatement under section 7." and substituting "reinstatement."

81 Section 11 is amended

(a) by repealing subsections (1) and (2) and substituting the following:

(1) Subject to section 17.1, an employee who, on or after July 1, 1994, retires, resigns or is dismissed from service is entitled, on application made by the employee, to a superannuation allowance calculated under section 13, but only if the employee

(a) has attained the age of 55 years and the sum of the employee's age plus years of contributory service is equal to not less than 90 years,

(b) has attained the age of 60 years and has completed not less than 5 years of continuous employment or 5 years of contributory service,

(c) has completed less than 5 years of continuous employment or 5 years of contributory service but, while making contributions, the employee attains the age of

(i) 65 years, or

(ii) 60 years, 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 65 years, and the amount shall be prorated for fractions of a year, or

(d) has completed 5 years of continuous employment or 5 years of contributory service and, before attaining the age of 60 years, is totally and permanently disabled within the meaning of section 15 and is not receiving a monthly income benefit under an approved group disability salary continuance plan.

(2) If, on or after July 1, 1994, an employee retires, resigns or is dismissed from service and the employee

(a) has completed not less than 5 years of continuous employment or 5 years of contributory service,

(b) enters, within 3 years after making his or her last contribution to the fund, the service of an approved employer and becomes qualified to receive a pension or superannuation allowance as the result of that service, but only if the aggregate period of pensionable service as an employee within the meaning of the pension plan of the approved employer and as an employee within the meaning of this Act is not less than 10 years, or

(c) was previously employed by an approved employer and, having ceased that employment not more than 3 years before becoming employed by an employer to whom this Act applies, becomes qualified to receive a pension or superannuation allowance as a result of that previous employment and has, as an employee within the meaning of the pension plan of the approved employer and as an employee within the meaning of this Act, an aggregate period of pensionable service of not less than 10 years, the employee is entitled, on application, at his or her option,

(d) to receive a superannuation allowance calculated in accordance with the provisions of this Act,

(e) to receive, after attaining the age of 55 years, a superannuation allowance calculated under section 13, 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

(i) the employee's age is less than 60 years, and

(ii) the sum of the employee's age and years of contributory service is less than 90 years, whichever is the lesser, and the amount shall be prorated for fractions of a year, or

(f) to receive a benefit in accordance with the provisions of section 17.1, but if the employee has not received a benefit and dies before being granted a superannuation allowance under this subsection, section 16 applies as if the employee had died in service.

(2.01) If, on or after July 1, 1994, an employee retires, resigns or is dismissed from service and while making contributions

(a) has attained the age of 55 years, and

(b) meets the service requirements specified by the board, then the 5% reduction referred to in section 11 (2) (e) shall be deemed to be 3%. ,

(b) in subsection (2.1) by striking out "subsection (2) (d)" and substituting "subsection (2) (e)",

(c) in subsection (3) (c) by striking out "section 6 (4);" and substituting "the regulations;",

(d) in subsection (8) by striking out "teachers' pensions", and

(e) in subsection (10) by striking out "the Lieutenant Governor in Council," and substituting "the board,".

82 Section 11 (1) and (2) is repealed and the following substituted:

(1) Subject to section 17.1, an employee who, on or after January 1, 1996, retires, resigns or is dismissed from service is entitled, on application made by the employee, to a superannuation allowance calculated under section 13, but only if the employee

(a) has attained the age of 55 years and the sum of the employee's age plus years of contributory service is equal to not less than 90 years,

(b) has attained the age of 60 years and has completed not less than 2 years of contributory service,

(c) has completed less than 2 years of contributory service but, while making contributions, the employee attains the age of

(i) 65 years, or

(ii) 60 years, 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 65 years, and the amount shall be prorated for fractions of a year, or

(d) has completed not less than 2 years of contributory service and, before attaining the age of 60 years, is totally and permanently disabled within the meaning of section 15 and is not receiving a monthly income benefit under an approved group disability salary continuance plan.

(2) If, on or after January 1, 1996, an employee retires, resigns or is dismissed from service and the employee

(a) has completed not less than 2 years of contributory service,

(b) enters, within 3 years after making his or her last contribution to the fund, the service of an approved employer and becomes qualified to receive a pension or superannuation allowance as the result of that service, but only if the aggregate period of pensionable service as an employee within the meaning of the pension plan of the approved employer and as an employee within the meaning of this Act is not less than 10 years, or

(c) was previously employed by an approved employer and, having ceased that employment not more than 3 years before becoming employed by an employer to whom this Act applies, becomes qualified to receive a pension or superannuation allowance as a result of that previous employment and has, as an employee within the meaning of the pension plan of the approved employer and as an employee within the meaning of this Act, an aggregate period of pensionable service of not less than 10 years, the employee is entitled, on application, at his or her option,

(d) to receive a superannuation allowance calculated in accordance with the provisions of this Act,

(e) to receive, after attaining the age of 55 years, a superannuation allowance calculated under section 13, 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

(i) the employee's age is less than 60 years, and

(ii) the sum of the employee's age and years of contributory service is less than 90 years, whichever is the lesser, and the amount shall be prorated for fractions of a year, or

(f) to receive a benefit in accordance with the provisions of section 17.1, but if the employee has not received a benefit and dies before being granted a superannuation allowance under this subsection, section 16 applies as if the employee had died in service.

83 Section 12 is amended

(a) in subsection (3) (c) by striking out "section 6 (4);" and substituting "the regulations;",

(b) in subsections (7) (a) and (8) by striking out "teachers' pensions", and

(c) in subsection (9) by striking out "and (5.2)" and by adding "and with the regulations" after "and 13 (6)".

84 Section 13 is amended

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

(a) 2% of the employee's highest average salary multiplied by the number of years of pensionable service not exceeding 35 years, reduced, at age 65 years or at the date of death or disability, whichever is earlier, by an amount that is equal to the sum of

(i) 7/10 of 1% of the lesser of

(A) the employee's highest average salary, and

(B) 1/12 the year's maximum pensionable earnings for the calendar year immediately preceding the calendar year in which the superannuation allowance is received by the employee, multiplied by the number of years of pensionable service after January 1, 1966 not exceeding 35 years, and

(ii) any supplementary allowance provided with respect to an amount in paragraph (i); and , and

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

(3) Subject to subsections (4) and (5), for the purpose of calculating the highest average salary, if an employee for any reason did not work full time during the 60 months immediately preceding the date the employee commenced receiving a superannuation allowance, the commissioner may, using a method of calculation determined by the board, utilize the salary from previous pensionable service, adjusted for inflation by a method determined by the board, to compensate for the period the employee was not working.

85 Section 14 (1.1) is amended by striking out "is married" and substituting "has a spouse".

86 Section 15 is amended

(a) in subsections (1), (1.1) and (3) by striking out "under section 11 (1) (c)" and substituting "under section 11 (1) (d)",

(b) in subsection (3) by striking out "teachers' pensions", and

(c) by adding the following subsection:

(5) The superannuation allowance that is paid on or after July 1, 1994 in respect of a total disability for which payments commenced before January 1, 1974 may be adjusted in a manner determined by the board to provide a monthly superannuation allowance up to an amount equivalent to the monthly superannuation allowance that would have been available

(a) had this Act, as it read on January 1, 1985, applied, and

(b) had section 4.2 of this Act, as it read on January 1, 1985, applied.

87 Section 16 is amended

(a) in subsection (1) by striking out "on or after January 1, 1993" and substituting "on or after January 1, 1996",

(b) in subsection (1) (a) by striking out "section 11 (1) (c)" and substituting "section 11 (1) (d)",

(c) in subsection (1) (a) by striking out "not less than 5 years of continuous employment or not less than 5 years of contributory service," and substituting "not less than 2 years of contributory service,",

(d) in subsection (1) (b) by striking out "not less than 5 years of continuous employment or not less than 5 years of contributory service," and substituting "not less than 2 years of contributory service,",

(e) in subsection (1) (c) by striking out "or (b.1)" and substituting "or (c)",

(f) in subsection (1) (c) by striking out "less than 5 years of continuous employment or less than 5 years of contributory service," and substituting "less than 2 years of contributory service,", and

(g) by adding the following subsections:

(9) The superannuation allowance that is paid on or after July 1, 1994 to the spouse of a member who died in service before January 1, 1974 may be adjusted in a manner determined by the board to provide a monthly superannuation allowance up to an amount equivalent to the monthly superannuation allowance that would have been available

(a) had this Act, as it read on January 1, 1985, applied, and

(b) had section 4.2 of this Act, as it read on January 1, 1985, applied.

(10) The superannuation allowance referred to in subsection (9) includes a superannuation allowance in respect of a total disability.

88 Section 17.1 (1) is repealed and the following substituted:

(1) If the service of a contributor terminates or is terminated on or after January 1, 1996 and the contributor has completed at least 2 years of contributory service, the contributor is entitled to a deferred superannuation allowance calculated under section 13 in respect of all pensionable service.

89 Section 18 (11) is amended by striking out "acceptable to the commissioner." and substituting "acceptable to the board."

90 Section 18.2 is amended

(a) by repealing subsection (3), and

(b) in subsection (6) by striking out "section 6 (1.2) or (5.2)," and substituting "section 6 (1.2),".

91 Section 18.3 (1) is repealed.

92 Section 18.7 is repealed.

93 Section 21 is amended by striking out "teachers' pensions" in both places.

94 Section 24 is amended by striking out "teachers' pensions".

95 Sections 29 and 30 are repealed and the following substituted:

Actuary

29 (1) The board may engage the services of an actuary for the purposes of this Act.

(2) The actuary must

(a) make all actuarial reports and computations required by the board,

(b) make actuarial valuations of assets and liabilities under this Act when requested to do so by the board, and

(c) report to the board the results of each actuarial valuation.

(3) Despite subsection (2) (b), actuarial valuations must be made at least once in each 3 year period.

(4) Any amount paid to the actuary for his or her services is an expense incurred in the administration of this Act.

96 Section 35 is amended by adding "and the board" after "accounts of the commissioner".

97 Sections 36 and 37 are repealed and the following substituted:

Teachers' Pension Board

36 (1) A board known as the Teachers' Pension Board is established consisting of 7 members appointed by the Lieutenant Governor in Council as follows:

(a) 3 persons nominated by the government;

(b) 3 persons representative of the plan members, nominated by the executive of the British Columbia Teachers' Federation;

(c) the commissioner.

(2) An appointment under subsection (1) (a) or (b) may be made for a period of not more than 3 years, and an appointment under that subsection may be renewed or extended.

(3) The commissioner is the chair of the board.

(4) All expenses necessarily incurred by board members in carrying out their responsibilities may be paid out of the fund.

Powers of the board

37 The board may do any of the following:

(a) make recommendations to the minister with respect to the Act and the regulations and, before enactment, review amendments to the Act or the regulations;

(b) make recommendations to Treasury Board with respect to

(i) changes in benefits,

(ii) funding policies for the plan,

(iii) contribution rates,

(iv) modifications to the plan, and

(v) the budget of the commissioner;

(c) make recommendations to the Minister of Finance and Corporate Relations with respect to the investment of the fund;

(d) report to plan members on issues related to the plan;

(e) establish procedures and methods for board operations.

Duties of the board

37.1 Subject to this Act and the regulations, the board must do all of the following:

(a) submit to Treasury Board and to the minister an annual report on the operation of the plan, the fund and the board;

(b) review reports on the investment of the fund;

(c) direct the commissioner on the application of plan rules;

(d) carry out other prescribed duties and responsibilities.

Right to appeal

37.2 (1) A person or organization directly affected by a decision of the commissioner in the application of the plan rules may, by written notice to the board, appeal all or part of the decision in accordance with the practice and procedure specified by the board.

(2) The board must ensure that each appeal is dealt with promptly and efficiently.

(3) For the purposes of this section, the board and each of its members has the powers, protection and privileges of a commissioner under sections 12, 15 and 16 of the Inquiry Act.

98 Section 39 (1) is amended

(a) by repealing paragraph (g), and

(b) by striking out "and" at the end of paragraph (l) and by adding the following paragraphs:

(n) prescribing group benefit entitlements which may be provided for pensioners, including extended health plans and dental plans;

(o) prescribing terms and conditions under which the group benefit entitlements referred to in paragraph (n) may be provided and funded from employer contributions under section 3.2 (1) (c) (iii) and (d) (iii);

(p) prescribing the terms and conditions under which coverage under the Medical Services Plan of British Columbia may be funded from employer contributions under section 3.2 (1) (c) (iii) and (d) (iii); and

(q) prescribing duties and responsibilities of the Teachers' Pension Board.

99 The following section is added:

Service recognition

40 The Lieutenant Governor in Council may prescribe the terms and conditions, including the costs to be paid, under which

(a) leaves of absence from an employer may be included as contributory and pensionable service,

(b) previous service under this plan, or with a reciprocal employer, may be included as contributory and pensionable service, or

(c) periods of child rearing may be included as contributory service.

 
Consequential Amendments

 
Miscellaneous Statutes Amendment Act (No. 2), 1987

100 Sections 64 and 67 of the Miscellaneous Statutes Amendment Act (No. 2), 1987, S.B.C. 1987, c. 43, are repealed.

 
Pension (Miscellaneous Amendments) Act, 1989

101 Sections 4, 5 and 8 of the Pension (Miscellaneous Amendments) Act, 1989, S.B.C. 1989, c. 35, are repealed.

 
Public Service Benefit Plan Act

102 Section 1 (1) (f) of the Public Service Benefit Plan Act, R.S.B.C. 1979, c. 344, is repealed and the following substituted:

(f) persons in receipt of an allowance under the Pension (College) Act, the Pension (Municipal) Act, the Pension (Public Service) Act or the Pension (Teachers) Act; and .

 
Supreme Court Act

103 Section 11.2 of the Supreme Court Act, S.B.C. 1989, c. 40, is amended

(a) in subsection (2) by striking out "10 years" and substituting "5 years", and

(b) by repealing subsection (6).

Commencement

104 (1) Sections 1 to 4, 8, 10 (b), (c) and (d), 11, 12, 16 to 20, 23 to 28, 29 (a), 31 to 33, 34 (b), 35, 36, 38, 39, 41 to 45, 48 to 52, 54 to 57, 59, 62 (a), 65, 68, 71 to 75, 76 (a) and (f), 80, 81 (a), (b), (d) and (e), 83 (b), 84 (b), 85, 86, 87 (b), (e) and (g), 89, 90, 93 to 97, 100 and 103 come into force on July 1, 1994.

(2) Sections 6, 10 (a), 34 (a), 37, 63, 67, 76 (b) to (e), (g) and (h) and 84 (a) come into force on January 1, 1995.

(3) Sections 60, 62 (b), 64, 66, 82, 87 (a), (c), (d) and (f) and 88 come into force on January 1, 1996.

(4) Sections 5, 7, 9, 13 to 15, 21, 22, 29 (b), 30, 40, 46, 47, 53, 58, 61, 69, 70, 77 to 79, 81 (c), 83 (a) and (c), 91, 92, 98, 99, 101 and 102 come into force by regulation of the Lieutenant Governor in Council.

 
Explanatory Notes

 
Pension (College) Act

SECTION 1:

(a) clarifies the professional qualifications of an actuary;

(b) is consequential to the new definition of "spouse" and repeals a spent definition;

(c) delegates to the board the power to determine the method of calculating the commuted value;

(d) is consequential to the repeal of section 7 of the Pension (College) Act;

(e) adds definitions.

SECTION 2: is consequential to the repeal of the definition of "common law spouse".

SECTION 3: provides for the deduction from the inflation adjustment account of amounts allocated for the payment of group benefit premiums.

SECTION 4: requires employers to pay additional contributions where an actuarial valuation discloses that there has been an increase in the unfunded liabilities expressed as a percentage of payroll, the additional contributions required being an amount sufficient to maintain the liability as a constant percentage of payroll; and provides for a reduction in employer contributions where there is a surplus.

SECTION 5: repeals provisions now prescribed by the regulations.

SECTION 6:

(a) provides, on and after January 1, 1995, for a different indexing arrangement as enacted by paragraph (c) of this section;

(b) provides that bridging benefits or pensions arising from voluntary contributions are not included in amounts subject to indexing;

(c) allows for the basic lifetime portion and the Canada Pension Plan offset to be indexed;

(d) makes indexing uniform across the allowance;

(e) eliminates the deferral of indexing for reduced pensions;

(f) provides, on and after January 1, 1995, for the indexing of reduced pensions which currently are not indexed.

SECTION 7: repeals provisions now prescribed by the regulations.

SECTION 8: delegates to the board the power to determine what constitutes other pensionable service.

SECTION 9:

(a) is a housekeeping amendment;

(b) is consequential to the repeal of section 6 (3) to (5) of the Pension (College) Act.

SECTION 10:

(a) provides that the indexing amount for the Canada Pension Plan offset ceases when the offset stops;

(b) changes, on and after July 1, 1994, the eligibility requirements to receive a non-reduced pension;

(c) delegates to the board the power to determine the method of calculating the highest average salary of part time employees;

(d) delegates to the board the power to make regulations prescribing the method of adjusting the highest average salary.

SECTION 11: is consequential to the new definition of "spouse".

SECTION 12: delegates to the board the power to determine the terms of payment of a pension in the case of shortened life expectancy.

SECTIONS 13 to 15: are consequential to the repeal of section 6 (3) to (5) of the Pension (College) Act.

SECTION 16:

SECTION 17: empowers the board to hire an actuary to perform valuations of the plan.

SECTION 18: delegates to the board the power to require the commission to keep data specified by the board.

SECTION 19:

(a) requires that the trustees only make investments as permitted by the Pension Benefits Standards Act;

(b) allows the board to review the accounts and records of the trustees.

SECTION 20: requires that the accounts of the board be audited at least once in each year.

SECTION 21: empowers the Lieutenant Governor in Council to make regulations respecting the provision of group benefit entitlements and to prescribe additional duties and responsibilities of the board.

SECTION 22: empowers the Lieutenant Governor in Council to make regulations respecting what constitutes service recognition for pension eligibility and calculation purposes.

 
Pension (Municipal) Act

SECTION 23:

(a) clarifies the professional qualifications of an actuary;

(b) is a housekeeping amendment;

(c) is consequential to the new definition of "spouse" and repeals a spent definition;

(d) delegates to the board the power to determine the method of calculating the commuted value;

(e) harmonizes the definition of "highest average salary" with section 12 of the Pension (Municipal) Act;

(f) is consequential to the repeal of section 6 of the Pension (Municipal) Act;

(g) adds definitions.

SECTION 24: is consequential to the repeal of the definition of "common law spouse".

SECTION 25:

(a) and (b) are housekeeping amendments;

(c) delegates to the board the power to order the Pension (Municipal) Act applicable to an employee.

SECTION 26: corrects a cross reference error.

SECTION 27: provides for the deduction from the inflation adjustment account of amounts allocated for the payment of group benefit premiums.

SECTION 28: requires employers to pay additional contributions where an actuarial valuation discloses that there has been an increase in the unfunded liabilities expressed as a percentage of payroll, the additional contributions required being an amount sufficient to maintain the liability as a constant percentage of payroll; and provides for a reduction in employer contributions where there is a surplus.

SECTION 29:

(a) corrects a cross reference error;

(b) repeals provisions now prescribed by the regulations.

SECTION 30: repeals provisions now prescribed by the regulations.

SECTION 31: corrects terminology.

SECTION 32:

(a) and (b) change, on and after July 1, 1994, the eligibility requirements to receive a non-reduced pension;

(c) is consequential to the amendment made by paragraph (d) of this section;

(d) lowers the amount of pension reduction on early retirement between pensionable age and maximum retirement age;

(e) lowers the amount of pension reduction on early retirement between minimum retirement age and pensionable age;

(f) and (g) are housekeeping amendments;

(h) delegates to the board the authority to approve pension transfer agreements with other employers.

SECTION 33: delegates to the board the power to specify limitations when determining highest average salary.

SECTION 34:

(a) provides that the indexing of the Canada Pension Plan offset ceases when the offset stops;

(b) delegates to the board the power to determine the method of calculating the highest average salary of part time employees.

SECTION 35:

(a) is consequential to the new definition of "spouse";

(b) makes a cross reference change.

SECTION 36:

(a) clarifies entitlements on an in-service death where no pension is payable;

(b) makes a cross reference change.

SECTION 37:

(a) provides, on and after January 1, 1995, for a different indexing arrangement as enacted by paragraph (c) of this section;

(b) provides that bridging benefits or pensions arising from voluntary contributions are not included in amounts subject to indexing;

(c) allows for the basic lifetime portion and the Canada Pension Plan offset to be indexed;

(d) is consequential to the enactment of paragraph (b) of this section;

(e) eliminates the deferral of indexing for reduced pensions;

(f) provides, on and after January 1, 1995, for the indexing of reduced pensions which currently are not indexed.

SECTION 38: delegates to the board the power to determine the method for converting a pension to a payment or series of payments.

SECTION 39: is a housekeeping amendment.

SECTION 40: repeals provisions now prescribed by the regulations.

SECTION 41:

SECTION 42: empowers the board to make a request to the trustees to realize on investments.

SECTION 43: empowers the board to hire an actuary to perform valuations of the plan.

SECTION 44: requires that the accounts of the board be audited at least once in each year.

SECTION 45:

(a) delegates to the board the power to determine the amount of salary on which contributions are made;

(b) delegates to the board the power to modify the method by which expenses of administration are determined.

SECTION 46: empowers the Lieutenant Governor in Council to make regulations respecting the provision of group benefit entitlements and to prescribe additional duties and responsibilities of the board.

SECTION 47: empowers the Lieutenant Governor in Council to make regulations respecting what constitutes service recognition for pension eligibility and calculation purposes.

 
Pension (Public Service) Act

SECTION 48:

(a) is consequential to the new definition of "spouse" and repeals a spent definition;

(b) delegates to the board the power to determine the method of calculating the commuted value;

(c) is consequential to the repeal of section 13 of the Pension (Public Service) Act;

(d) adds definitions.

SECTION 49: delegates to the board the power to approve the method of calculating the highest average salary of part time employees.

SECTION 50: is consequential to the repeal of the definition of "common law spouse".

SECTION 51:

(a) delegates to the board the power to declare by order that the Pension (Public Service) Act applies to a person who comes within section 2 (1) (h) of that Act;

(b) delegates to the board the power to exempt an employee from the requirement to make contributions.

SECTION 52: provides for the deduction from the inflation adjustment account of amounts allocated for the payment of group benefit premiums.

SECTION 53: is consequential to the repeal of section 13 of the Pension (Public Service) Act.

SECTION 54: requires employers to pay additional contributions where an actuarial valuation discloses that there has been an increase in the unfunded liabilities expressed as a percentage of payroll, the additional contributions required being an amount sufficient to maintain the liability as a constant percentage of payroll; and provides for a reduction in employer contributions where there is a surplus.

SECTION 55:

SECTION 56: empowers the board to hire an actuary to perform valuations of the plan.

SECTION 57: is a housekeeping amendment.

SECTION 58: repeals provisions respecting reinstatement of a contributor's account which are now prescribed in the regulations.

SECTION 59:

(a) provides, on and after July 1, 1994, for new conditions respecting early retirement;

(b) implements a rule of 90 for early retirement;

(c) permits the reduction of pension to be based on the rule of 90 and permits a lower reduction of pension for employees who meet the specified terms.

SECTION 60:

(a) reduces, on and after January 1, 1996, the service requirement for pension entitlement from 5 years to 2 years;

(b) is consequential to the amendment made by paragraph (a) of this section.

SECTION 61: is consequential to the repeal of section 13 of the Pension (Public Service) Act.

SECTION 62:

(a) is consequential to the new definition of "spouse";

(b) is consequential to the amendment made by section 60 of this Bill.

SECTION 63:

(a) is consequential to paragraph (b) of this section;

(b) provides that the indexing amount for the Canada Pension Plan offset ceases when the offset stops.

SECTION 64:

(a) provides, on and after January 1, 1996, for a reduced qualifying period;

(b) reduces the qualifying period for a death benefit from 5 years to 2 years.

SECTION 65: delegates to the board the power to determine the terms for payment of a pension in the case of shortened life expectancy.

SECTION 66: is consequential to the amendment made by section 60 of this Bill.

SECTION 67:

(a) provides, on and after January 1, 1995, for a different indexing arrangement as enacted by paragraph (c) of this section;

(b) provides that bridging benefits or pensions arising from voluntary contributions are not included in amounts subject to indexing;

(c) allows for the basic lifetime portion and the Canada Pension Plan offset to be indexed;

(d) is consequential to the enactment of paragraph (b) of this section;

(e) eliminates the deferral of indexing for reduced pensions;

(f) provides, on and after January 1, 1995, for the indexing of reduced pensions which currently are not indexed.

SECTION 68: delegates to the board the authority to approve pension transfer agreements with other employers.

SECTION 69: empowers the Lieutenant Governor in Council to make regulations respecting the provision of group benefit entitlements and to prescribe additional duties and responsibilities of the board.

SECTION 70: empowers the Lieutenant Governor in Council to make regulations respecting what constitutes service recognition for pension eligibility and calculation purposes.

 
Pension (Teachers) Act

SECTION 71:

(a) clarifies the professional qualifications of an actuary;

(b) is a housekeeping amendment;

(c) is consequential to the new definition of "spouse" and repeals a spent definition;

(d) delegates to the board the power to determine the method of calculating the commuted value;

(e) is a housekeeping amendment;

(f) is consequential to the repeal of section 7 of the Pension (Teachers) Act;

(g) adds a definition.

SECTION 72: is consequential to the repeal of the definition of "common law spouse".

SECTION 73:

(a) and (b) are housekeeping amendments.

SECTION 74: provides for the deduction from the inflation adjustment account of amounts allocated for the payment of group benefit premiums.

SECTION 75: requires employers to pay additional contributions where an actuarial valuation discloses that there has been an increase in the unfunded liabilities expressed as a percentage of payroll, the additional contributions required being an amount sufficient to reduce the unfunded liability to 50% when expressed as a percentage of payroll; and provides for a reduction in employer contributions where there is a surplus.

SECTION 76:

(a) corrects a cross reference error;

(b) provides, on and after January 1, 1995, for a different indexing arrangement as enacted by paragraph (d) of this section;

(c) provides that bridging benefits or pensions arising from voluntary contributions are not included in amounts subject to indexing;

(d) allows for the basic lifetime portion and the Canada Pension Plan offset to be indexed;

(e) is consequential to the enactment of paragraph (c) of this section;

(f) corrects a cross reference error;

(g) eliminates the deferral of indexing for reduced pensions;

(h) provides, on and after January 1, 1995, for the indexing of reduced pensions which currently are not indexed.

SECTION 77:

(a) corrects a cross reference error;

(b) repeals provisions that are now provided for by regulation.

SECTION 78: repeals provisions that are now provided for by regulation.

SECTIONS 79 and 80: are consequential to the repeal of section 7 of the Pension (Teachers) Act.

SECTION 81:

(a) provides, on and after July 1, 1994, for a change in the eligibility requirement to receive a non-reduced pension from a requirement of having both an age of 55 years and 35 years of service to a requirement of having an age of 55 years and a combination of age and service equal to at least 90 years and lowers the amount of reduction on early retirement for those employees who meet the specified service criteria;

(b) makes a cross reference change;

(c) is consequential to the repeal of section 6 (4) of the Pension (Teachers) Act;

(d) is a housekeeping amendment;

(e) delegates to the board the authority to enter into pension transfer agreements with other employers.

SECTION 82: provides, on and after January 1, 1996, for a reduced qualifying period for entitlement to a pension from 5 years to 2 years.

SECTION 83:

(a) is consequential to the repeal of section 6 (4) of the Pension (Teachers) Act;

(b) is a housekeeping amendment;

(c) is consequential to the repeal of section 6 (5.2) of the Pension (Teachers) Act.

SECTION 84:

(a) provides that the indexing amount for the Canada Pension Plan offset ceases when the offset stops;

(b) delegates to the board the power to determine the method of calculating the highest average salary of part time employees.

SECTION 85: is consequential to the new definition of "spouse".

SECTION 86:

(a) make a cross reference change;

(b) is a housekeeping amendment;

(c) provides, on and after July 1, 1994, that a disability allowance which commences before January 1, 1994 is to be treated in a manner similar to disability pensions commencing after that date.

SECTION 87:

(a) provides, on and after January 1, 1996, for a reduced qualifying period;

(b) makes a cross reference change;

(c) and (d) reduce the qualifying period for a death benefit from 5 years to 2 years;

(e) makes a cross reference change;

(f) reduces the qualifying period for a death benefit from 5 years to 2 years;

(g) provides that survivor pensions which commenced before 1974 will receive adjustments similar to those provided for normal pensions.

SECTION 88: is consequential to the enactment of section 82 of this Bill.

SECTION 89: delegates to the board the power to determine the amount of payout of a pension in the case of shortened life expectancy of a member.

SECTION 90:

(a) is consequential to the repeal of section 6 (4) to (7) of the Pension (Teachers) Act;

(b) is consequential to the repeal of section 6 (5.2) of the Pension (Teachers) Act.

SECTION 91: is consequential to the repeal of section 6 (4) to (7) of the Pension (Teachers) Act.

SECTION 92: repeals a matter now covered by the regulations.

SECTIONS 93 and 94: are housekeeping amendments.

SECTION 95: empowers the board to hire an actuary to perform valuations of the plan.

SECTION 96: requires that the accounts of the board be audited at least once in each year.

SECTION 97:

SECTION 98: empowers the Lieutenant Governor in Council to make regulations respecting the provision of group benefit entitlements and to prescribe additional duties and responsibilities of the board.

SECTION 99: empowers the Lieutenant Governor in Council to make regulations respecting what constitutes service recognition for pension eligibility and calculation purposes.

 
Miscellaneous Statutes Amendment Act (No. 2), 1987

SECTION 100: repeals spent provisions.

 
Pension (Miscellaneous Amendments) Act, 1989

SECTION 101: repeals spent provisions.

 
Public Service Benefit Plan Act

SECTION 102: permits all public sector pensioners to be covered by group benefit contracts permitted by the Public Service Benefit Plan Act.

 
Supreme Court Act

SECTION 103:

(a) reduces the vesting period for masters to 5 years service;

(b) repeals a spent provision.


[ Return to: Legislative Assembly Home Page ]

Copyright © 2002: Queen's Printer, Victoria, British Columbia, Canada