1998/99 Legislative Session: 3rd Session, 36th Parliament
FIRST READING


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


HONOURABLE JOY K. MacPHAIL
MINISTER OF FINANCE AND CORPORATE RELATIONS

BILL 89 -- 1999

PENSION STATUTES AMENDMENT ACT, 1999

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

 
Hydro and Power Authority Act

1 The Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is amended by adding the following section:

Joint management agreement

37.1 (1) In this section:

"agreement" means the joint management agreement referred to in subsection (2);

"pension fund" means the British Columbia Hydro and Power Authority Pension Fund established under the pension plan;

"pension plan" means the British Columbia Hydro and Power Authority Pension Plan established under B.C. Reg. 109/99.

(2) Despite section 36 (2), the authority may enter into a joint management agreement with the trade unions that represent its employees for the joint trusteeship of all or part of the pension plan and pension fund, or for any other matter relating to the pension plan or pension fund on which agreement is reached.

(3) The authority and the trade unions must establish appropriate mechanisms whereby the views and interests of the authority's non-unionized employees and retirees are fairly represented in the negotiation of the agreement.

(4) The agreement must not require any change to the pension plan or pension fund that would render the pension plan ineligible for registration under the Pension Benefits Standards Act or the Income Tax Act (Canada).

(5) When the agreement is entered into, the authority must adopt those plan rules and other instruments that are necessary to amend and continue the pension plan and pension fund in accordance with the agreement and, thereafter, the pension plan and pension fund

(a) must be administered as provided by the agreement,

(b) may be amended as provided by the agreement, and

(c) are not subject to sections 36 and 37 of this Act.

(6) Despite subsection (2), the non-unionized employees and the retirees of the authority not represented by the trade unions may benefit from and be made subject to the agreement, and the authority and the trade union representatives have the power to enter into the agreement on behalf of those persons and, if entered into, the agreement is binding on those persons.

 
Insurance Corporation Act

2 The Insurance Corporation Act, R.S.B.C. 1996, c. 228, is amended by adding the following section:

Joint management agreement

4.1 (1) In this section:

"agreement" means the joint management agreement referred to in subsection (2);

"pension fund" means the trust fund established under the pension plan;

"pension plan" means the Retirement Plan for Employees of the Insurance Corporation of British Columbia.

(2) Despite section 4 (7), the corporation may enter into a joint management agreement with the trade unions that represent its employees for the joint trusteeship of all or part of the pension plan and pension fund, or for any other matter relating to the pension plan or pension fund on which agreement is reached.

(3) The corporation and the trade unions must establish appropriate mechanisms whereby the views and interests of the corporation's non-unionized employees and retirees are fairly represented in the negotiation of the agreement.

(4) The agreement must not require any change to the pension plan or pension fund that would render the pension plan ineligible for registration under the Pension Benefits Standards Act or the Income Tax Act (Canada).

(5) When the agreement is entered into, the corporation must adopt those plan rules and other instruments that are necessary to amend and continue the pension plan and pension fund in accordance with the agreement and, thereafter, the pension plan and pension fund

(a) must be administered as provided by the agreement,

(b) may be amended as provided by the agreement, and

(c) are not subject to section 4 of this Act.

(6) Despite subsection (2), the non-unionized employees and the retirees of the corporation not represented by the trade unions may benefit from and be made subject to the agreement, and the corporation and the trade union representatives have the power to enter into the agreement on behalf of those persons and, if entered into, the agreement is binding on those persons.

 
Pension (College) Act

3 Section 1 (1) of the Pension (College) Act, R.S.B.C. 1996, c. 353, is amended

(a) by adding the following definition:

"dependant" means a dependant as defined in section 118 (6) of the Income Tax Act (Canada); , and

(b) by adding the following definition:

"totally and permanently disabled" means, in relation to a person, to be suffering from a mental or physical condition that

(a) prevents the person from engaging in any employment for which the person is reasonably suited by virtue of the person's education, training or experience, and

(b) can reasonably be expected to last for the remainder of the person's lifetime; .

4 Section 3 (7) (f) is amended by striking out "section 20 (3) or (5)" and substituting "section 20 (2) (b) or (4) (b)" .

5 Section 4 is repealed and the following substituted:

Employees required to contribute to fund

4 (1) An employee hired before September 1, 1999 who

(a) is an employee of

(i) a college designated under the College and Institute Act, or

(ii) a person, board, commission or publicly funded educational institution designated as an employer under section 2 (1) (b), and

(b) is

(i) a member of the senior administrative staff and is employed on a full time basis,

(ii) a member of the senior administrative staff and

(A) is employed on a part time basis,

(B) has completed 2 years of continuous employment with earnings in each year of not less than 35% of the year's maximum pensionable earnings, and

(C) elects coverage under this Act, or

(iii) a person providing educational services to students, including an employee who is a librarian, and elects coverage under this Act

must be a contributor to the fund.

(2) An employee hired on or after September 1, 1999 who

(a) is an employee of

(i) a college designated under the College and Institute Act, or

(ii) a person, board, commission or publicly funded educational institution designated as an employer under section 2 (1) (b),

(b) is employed on a full time basis, and

(c) is a member of the senior administrative staff or is a person providing educational services to students, including an employee who is a librarian,

must be a contributor to the fund.

(3) An employee hired on or after September 1, 1999 who

(a) is an employee of

(i) a college designated under the College and Institute Act, or

(ii) a person, board, commission or publicly funded educational institution designated as an employer under section 2 (1) (b),

(b) is employed on a part time or casual basis or as a full time term employee,

(c) earns, in any calendar year, a salary that in the aggregate exceeds 50% of the year's maximum pensionable earnings, and

(d) is a member of the senior administrative staff or is a person providing educational services to students, including an employee who is a librarian,

must be a contributor to the fund.

(4) An employee hired on or after September 1, 1999 who

(a) is an employee of

(i) a college designated under the College and Institute Act, or

(ii) a person, board, commission or publicly funded educational institution designated as an employer under section 2 (1) (b),

(b) is a member of the senior administrative staff or is a person providing educational services to students, including an employee who is a librarian,

(c) is not eligible under subsection (2), and

(d) before being required to contribute to the fund under subsection (3) elects coverage under this Act

must be a contributor to the fund.

(5) An employee referred to in subsection (4) who does not elect coverage under this Act must sign a waiver form to that effect and the employer must retain a copy of the waiver form.

(6) The waiver form referred to in subsection (5) is effective until

(a) subsection (2) or (3) applies to the employee, or

(b) the employee elects coverage under subsection (4).

(7) After this Act begins to apply to an employee, the Act is deemed to continue to apply to that employee until termination of membership.

6 Section 5 is amended

(a) in paragraph (a) by striking out "5.3%" and substituting "4.8%",

(b) in paragraph (b) by striking out "6.8%" and substituting "6.3%", and

(c) in paragraph (c) by striking out "0.5%" and substituting "1%".

7 Section 7 (1) is amended

(a) in paragraph (a) by striking out "5%," and substituting "4.5%,",

(b) in paragraph (b) by striking out "6.5%," and substituting "6%,", and

(c) in paragraph (c) by striking out "0.5%," and substituting "1%,".

8 Section 12 (1) is amended

(a) in paragraph (a) by striking out "section 14 (2)" and substituting "section 14 (2) or (2.1)",

(b) in paragraph (b) by striking out "section 14 (3)" and substituting "section 14 (3) or (3.1)", and

(c) in paragraph (c) by striking out "section 14 (4)" and substituting "section 14 (4) or (4.1)".

9 Section 14 is amended

(a) in subsection (2) by adding ", whose service terminates or is terminated before January 1, 1999," after "to which a contributor",

(b) by adding the following subsection:

(2.1) The amount of a monthly pension to which a contributor, whose service terminates or is terminated on or after January 1, 1999, is entitled, calculated on the basis of the single life guaranteed plan having a term of 10 years, as permitted under section 15 (1) (b), is the sum of

(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) 0.65% 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 before the calendar year in which the pension 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 subparagraph (i), and

(b) an amount obtained by converting to a monthly allowance, in accordance with the prescribed tables, any accumulated contributions made by a contributor to the retirement annuity account, with interest credited on that amount. ,

(c) by adding the following subsection:

(3.1) Despite subsection (3), if, on or after January 1, 1999, a contributor's service terminates or is terminated and the contributor retires, or a contributor is eligible and elects under section 12 (1) (b) to have his or her pension commence before reaching the age of 60 years, the amount of the pension on the single life guaranteed plan having a term of 10 years, as permitted under section 15 (1) (b), is one of the following:

(a) a pension calculated under subsection (2.1), but the 2% referred to in subsection (2.1) (a) must be reduced by a percentage equal to 5% for each year of age by which the contributor is less than 60 years of age, and the amount must be prorated for fractions of a year;

(b) if an allowance is payable due to the contributor's total and permanent disability under the age of 60 years or on the death of a contributor, the pension that the contributor would have been entitled to receive if, with the same service, the contributor had reached the age of 65 years. ,

(d) by adding the following subsection:

(4.1) Despite subsection (4), if, on or after January 1, 1999, a contributor's service terminates or is terminated and the contributor retires, or a contributor is eligible and elects under section 12 (1) (c) to have his or her pension commence before reaching the age of 65 years, the amount of the pension on the single life guaranteed plan having a term of 10 years, as permitted under section 15 (1) (b), must be calculated under subsection (2.1), but the 2% referred to in subsection (2.1) (a) must be reduced by 5% of that amount for each year of age by which the contributor is less than 65 years of age, and the amount must be prorated for fractions of a year. , and

(e) in subsection (5) by striking out "subsection (3) (a) or (4)" and substituting "subsection (3) (a), (3.1) (a), (4) or (4.1)".

10 Section 14.1 (1) is amended by striking out "section 14 (3) (a), (4) or (5)" and substituting "section 14 (3) (a), (3.1) (a), (4), (4.1) or (5)".

11 Section 15 (1) is amended

(a) by striking out "section 12 (1) (a) (i), (ii) and (iii) and (b)" and substituting "section 12 (1) (a) (i) to (iv) and (b)",

(b) by repealing paragraph (c) and substituting the following:

(c) joint life and last survivor, payable

(i) during the joint life of the contributor and

(A) the spouse or a dependant nominated by the contributor before the granting of the pension, or

(B) a former spouse who, as a result of a written agreement or court order, has such an entitlement, and

(ii) during the life of the survivor; , and

(c) by repealing paragraph (d) (ii).

12 Section 17 (3) (b) is amended by striking out "section 14 (2) (b)." and substituting "section 14 (2) (b) or (2.1) (b)."

13 Section 19 is amended

(a) by repealing subsection (2), and

(b) in subsection (3) (c) by striking out "from performing his or her duties".

14 Section 20 is amended by repealing subsections (1) to (4) and substituting the following:

(1) If, on or after the date this subsection comes into force, a contributor who has less than 2 years of contributory service dies in service without becoming entitled to a pension under section 12, a benefit equal to the deceased contributor's contributions together with accumulated interest is payable to

(a) the contributor's spouse if there is a spouse and a valid spousal waiver has not been filed with the commission,

(b) the person nominated by the contributor as beneficiary if there is no spouse or a valid spousal waiver has been filed with the commission, or

(c) the personal representative of the estate of the contributor if there is no spouse or a valid spousal waiver has been filed with the commission and there is no valid nomination of a beneficiary.

(2) If, on or after the date this subsection comes into force, a contributor who has 2 or more years of contributory service dies in service without becoming entitled to a pension under section 12, a benefit equal to the greater of

(a) the deceased contributor's contributions together with accumulated interest, and

(b) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death,

is payable to

(c) the contributor's spouse if there is a spouse and a valid spousal waiver has not been filed with the commission,

(d) the person nominated by the contributor as beneficiary if there is no spouse or a valid spousal waiver has been filed with the commission, or

(e) the personal representative of the estate of the contributor if there is no spouse or a valid spousal waiver has been filed with the commission and there is no valid nomination of a beneficiary.

(3) If, on or after the date this subsection comes into force, a contributor who dies in service was entitled at his or her date of death to a pension under section 12, and there is a surviving spouse and a valid spousal waiver has not been filed with the commission, a pension calculated as though the deceased contributor had retired at the date of death and had chosen the joint life and last survivor plan under section 15 (1) (c) is payable to the spouse of the deceased contributor.

(4) If, on or after the date this subsection comes into force, a contributor who dies in service was entitled at his or her date of death to a pension under section 12, and there is no surviving spouse or a valid spousal waiver has been filed with the commission, a benefit equal to the greater of

(a) the deceased contributor's contributions together with accumulated interest, and

(b) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death,

is payable to

(c) the person nominated by the contributor as beneficiary, or

(d) the personal representative of the contributor's estate if there is no valid designation of a beneficiary.

 
Pension (Municipal) Act

15 Section 1 (1) of Pension (Municipal) Act, R.S.B.C. 1996, c. 355, is amended by adding the following definition:

"dependant" means a dependant as defined in section 118 (6) of the Income Tax Act (Canada); .

16 Section 2 is amended

(a) in subsection (1) by adding the following paragraph:

(u) an employer who submits a resolution passed by an affirmative vote of not less than 2/3 of all members of the governing authority of the employer and is declared to be an employer by the board. , and

(b) in subsection (3) (b) by adding ", associated professional or certified professional" after "except a teacher".

17 Section 4 (7) (f) is amended by striking out "22 (1) or (3)," and substituting "22 (2) (b), (4) (a) or (5) (b),".

18 Section 13 (4) is amended by striking out ", but the amount of pension must be calculated under section 16 rather than under section 21 (2)".

19 Section 17 is amended

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

(c) joint life and last survivor, payable

(i) during the joint life of the contributor and

(A) the spouse or a dependant nominated by the contributor before the granting of the pension, or

(B) a former spouse who, as a result of a written agreement or court order, has such an entitlement, and

(ii) during the life of the survivor; ,

(b) in subsection (1) by repealing paragraph (d) (ii),

(c) by adding the following subsection:

(10.1) If an employee retires from service on or after the date this subsection comes into force, and, while making contributions,

(a) has reached 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 (10) is deemed to be 3%. , and

(d) in subsection (14) by striking out "section 16." and substituting "section 22."

20 Section 20 is amended

(a) in subsection (2) by striking out "section 22 (1) or (3)." and substituting "section 22 (3) and (4) (b).", and

(b) in subsection (3) by striking out "section 22 (1) or (3)," and substituting "section 22 (3) and (4) (b),".

21 Section 22 is amended by repealing subsections (1) to (5.1) and substituting the following:

(1) If, on or after the date this subsection comes into force, a contributor who has less than 2 years of contributory service dies in service without becoming entitled to a pension under section 13, a benefit equal to the deceased contributor's contributions together with accumulated interest is payable to

(a) the contributor's spouse if there is a spouse and a valid spousal waiver has not been filed with the commission,

(b) the person nominated by the contributor as beneficiary if there is no spouse or a valid spousal waiver has been filed with the commission, or

(c) the personal representative of the estate of the contributor if there is no spouse or a valid spousal waiver has been filed with the commission and there is no valid nomination of a beneficiary.

(2) If, on or after the date this subsection comes into force, a contributor who has 2 or more years of contributory service dies in service without becoming entitled to a pension under section 13, and there is no surviving spouse or a valid spousal waiver has been filed with the commission, a benefit equal to the greater of

(a) the deceased contributor's contributions together with accumulated interest, and

(b) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death,

is payable to

(c) the person nominated by the contributor as beneficiary, or

(d) the personal representative of the contributor's estate if there is no valid nomination of a beneficiary.

(3) If, on or after the date this subsection comes into force, a contributor dies in service and there is a surviving spouse and a valid spousal waiver has not been filed with the commission, a pension is payable to the spouse of the deceased contributor if the contributor was entitled to a pension under section 13, and the pension must be calculated as if the deceased contributor had retired at the date of death and had chosen the joint life and last survivor plan under section 17 (1) (c).

(4) If, on or after the date this subsection comes into force, a contributor dies in service and had 2 or more years of contributory service but was not entitled to a pension under section 13, and there is a surviving spouse and a valid spousal waiver has not been filed with the commission, the surviving spouse may elect to receive

(a) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death, or

(b) a pension, payable immediately, calculated on the basis of a prescribed table, which is actuarially equivalent to the amount calculated under paragraph (a), and payable as if the contributor had chosen the joint life and last survivor plan under section 17 (1) (c).

(5) If, on or after the date this subsection comes into force, a contributor who dies in service was entitled at his or her date of death to a pension under section 13, and there is no surviving spouse or a valid spousal waiver has been filed with the commission, a benefit equal to the greater of

(a) the deceased contributor's contributions together with accumulated interest, and

(b) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death,

is payable to

(c) the person nominated by the contributor as beneficiary, or

(d) the personal representative of the contributor's estate if there is no valid designation of a beneficiary.

 
Pension (Public Service) Act

22 Section 1 (1) of the Pension (Public Service) Act, R.S.B.C. 1996, c. 356, is amended

(a) by adding the following definition:

"dependant" means a dependant as defined in section 118 (6) of the Income Tax Act (Canada); , and

(b) by adding the following definition:

"totally and permanently disabled" means, in relation to a person, to be suffering from a mental or physical disability that

(a) prevents the person from engaging in any employment for which the person is reasonably suited by virtue of the person's education, training or experience, and

(b) can reasonably be expected to last for the remainder of the person's lifetime; .

23 Section 2 is amended by adding the following subsection:

(6) The Lieutenant Governor in Council may, by regulation, designate an employer for the purposes of this Act and, when designated, this Act applies to that employer.

24 Section 6 (3) is repealed.

25 Section 15 is amended

(a) in subsection (1) (b) by striking out "January 1, 1996," and substituting "April 1, 2000,",

(b) in subsection (1) (b) (i) by striking out "not less than 90 years minus the number of years that the maximum retirement age for that employee is less than age 65," and substituting "not less than 85 years,",

(c) in subsection (1) (b) (iii) by striking out "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 substituting "to be totally and permanently disabled.",

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

(2) If a pension is granted under subsection (1) (b) (iii) because a contributor is totally and permanently disabled, an increased annual pension may be paid to the contributor in accordance with section 8503 (3) (d) of the Income Tax Regulations under the Income Tax Act (Canada). ,

(e) in subsection (7) (a) by striking out "January 1, 1996," and substituting "April 1, 2000,", and

(f) in subsection (7) (e) by striking out "less than 90 years minus the number of years that the maximum retirement age for that employee is less than age 65," and substituting "less than 85 years,".

26 Section 18 (1) is amended

(a) by repealing paragraph (c) and substituting the following:

(c) joint life and last survivor, payable

(i) during the joint life of the contributor and

(A) the spouse or a dependant nominated by the contributor before the granting of the pension, or

(B) a former spouse who, as a result of a written agreement or court order, has such an entitlement, and

(ii) during the life of the survivor; , and

(b) by repealing paragraph (d) (ii).

27 Section 19 (2) (b) is repealed and the following substituted:

(b) each year the sum of the contributor's age plus contributory service is less than 85 years, .

28 Section 25 is amended

(a) in subsection (2) by striking out "section 26 (1) (a) or (2)." and substituting "section 26 (2.1).", and

(b) in subsection (3) by striking out "section 26 (1) (a) or (2)," and substituting "section 26 (2.1),".

29 Section 26 (1) to (3) is repealed and the following substituted:

(1) If, on or after the date this subsection comes into force, a contributor who has less than 2 years of contributory service dies in service without becoming entitled to a pension under section 15, a benefit equal to the deceased contributor's contributions together with accumulated interest is payable to

(a) the contributor's spouse if there is a spouse and a valid spousal waiver has not been filed with the commission,

(b) the person nominated by the contributor as beneficiary if there is no spouse or a valid spousal waiver has been filed with the commission, or

(c) the personal representative of the estate of the contributor if there is no spouse or a valid spousal waiver has been filed with the commission and there is no valid nomination of a beneficiary.

(2) If, on or after the date this subsection comes into force, a contributor who has 2 or more years of contributory service dies in service without becoming entitled to a pension under section 15, a benefit equal to the greater of

(a) the deceased contributor's contributions together with accumulated interest, and

(b) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death,

is payable to

(c) the contributor's spouse if there is a spouse and a valid spousal waiver has not been filed with the commission,

(d) the person nominated by the contributor as beneficiary if there is no spouse or a valid spousal waiver has been filed with the commission, or

(e) the personal representative of the estate of the contributor if there is no spouse or a valid spousal waiver has been filed with the commission and there is no valid nomination of a beneficiary.

(2.1) If, on or after the date this subsection comes into force, a contributor who dies in service was entitled at his or her date of death to a pension under section 15, and there is a surviving spouse and a valid spousal waiver has not been filed with the commission, a pension calculated as though the deceased contributor had retired at the date of death and had chosen the joint life and last survivor plan under section 18 (1) (c) is payable to the spouse of the deceased contributor.

(3) If, on or after the date this subsection comes into force, a contributor who dies in service was entitled at his or her date of death to a pension under section 15, and there is no surviving spouse or a valid spousal waiver has been filed with the commission, a benefit equal to the greater of

(a) the deceased contributor's contributions together with accumulated interest, and

(b) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death,

is payable to

(c) the person nominated by the contributor as beneficiary, or

(d) the personal representative of the contributor's estate if there is no valid designation of a beneficiary.

30 Section 29 (1) is repealed.

31 Section 65 (2) (n) is amended by striking out "section 6 (c) (iii)" and substituting "section 6 (1) (c) (iii)".

32 Section 1 of the Supplement to the Pension (Public Service) Act is repealed.

 
Pension (Teachers) Act

33 Section 1 (1) of the Pension (Teachers) Act, R.S.B.C. 1996, c. 357, is amended

(a) by adding the following definition:

"associated professional" or "certified professional" means a person who is an active member of the British Columbia Teachers' Federation and employed by a board of school trustees to provide professional support to the educational program provided by the board; ,

(b) by adding the following definition:

"dependant" means a dependant as defined in section 118 (6) of the Income Tax Act (Canada); , and

(c) by adding the following definition:

"totally and permanently disabled" means, in relation to a person, to be suffering from a mental or physical condition that

(a) prevents the person from engaging in any employment for which the person is reasonably suited by virtue of the person's education, training or experience, and

(b) can reasonably be expected to last for the remainder of the person's lifetime; .

34 Section 2 (1) (b) is amended by adding ", associated professional and certified professional" after "a teacher".

35 Section 16 (1) is amended

(a) by repealing paragraph (c) and substituting the following:

(c) joint life and last survivor, payable

(i) during the joint life of the contributor and

(A) the spouse or a dependant nominated by the contributor before the granting of the pension, or

(B) a former spouse who, as a result of a written agreement or court order, has such an entitlement, and

(ii) during the life of the survivor; , and

(b) by repealing paragraph (d) (ii).

36 Section 20 is amended

(a) in subsection (3) by striking out "permanently and totally disabled from performing his or her duties, within the meaning of this Act" and substituting "totally and permanently disabled",

(b) in subsection (3) (c) by striking out "from performing his or her duties", and

(c) in subsection (5) by striking out "from performing his or her duties".

37 Section 21 is amended

(a) by repealing subsections (1) to (3) and substituting the following:

(1) If, on or after the date this subsection comes into force, a contributor who has less than 2 years of contributory service dies in service without becoming entitled to a pension under section 12, a benefit equal to the deceased contributor's contributions together with accumulated interest is payable to

(a) the contributor's spouse if there is a spouse and a valid spousal waiver has not been filed with the commission,

(b) the person nominated by the contributor as beneficiary if there is no spouse or a valid spousal waiver has been filed with the commission, or

(c) the personal representative of the estate of the contributor if there is no spouse or a valid spousal waiver has been filed with the commission and there is no valid nomination of a beneficiary.

(2) If, on or after the date this subsection comes into force, a contributor who has 2 or more years of contributory service dies in service without becoming entitled to a pension under section 12, a benefit equal to the greater of

(a) the deceased contributor's contributions together with accumulated interest, and

(b) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death,

is payable to

(c) the contributor's spouse if there is a spouse and a valid spousal waiver has not been filed with the commission,

(d) the person nominated by the contributor as beneficiary if there is no spouse or a valid spousal waiver has been filed with the commission, or

(e) the personal representative of the estate of the contributor if there is no spouse or a valid spousal waiver has been filed with the commission and there is no valid nomination of a beneficiary.

(2.1) If, on or after the date this subsection comes into force, a contributor who dies in service was entitled at his or her date of death to a pension under section 12, and there is a surviving spouse and a valid spousal waiver has not been filed with the commission, a pension calculated as though the deceased contributor had retired at the date of death and had chosen the joint life and last survivor plan under section 16 (1) (c) is payable to the spouse of the deceased contributor.

(3) If, on or after the date this subsection comes into force, a contributor who dies in service was entitled at his or her date of death to a pension under section 12, and there is no surviving spouse or a valid spousal waiver has been filed with the commission, a benefit equal to the greater of

(a) the deceased contributor's contributions together with accumulated interest, and

(b) the commuted value of the pension to which the contributor would have been entitled in respect of the contributor's pensionable service had the contributor terminated membership immediately before death,

is payable to

(c) the person nominated by the contributor as beneficiary, or

(d) the personal representative of the contributor's estate if there is no valid designation of a beneficiary. , and

(b) by repealing subsection (5).

Commencement

38 (1) Sections 8 to 10, 12, 16 (b), 33 (a) and 34 are deemed to have come into force on January 1, 1999 and are retroactive to the extent necessary to give them effect on and after that date.

(2) Sections 5 to 7 come into force on September 1, 1999.

(3) Sections 25 (a), (b), (e) and (f) and 27 come into force on April 1, 2000.

(4) Sections 4, 14, 17, 18, 19 (d), 20, 21, 22 (b), 25 (c) and (d), 28 to 30 and 37 come into force by regulation of the Lieutenant Governor in Council.

 
Explanatory Notes

 
Hydro and Power Authority Act

SECTION 1: [Hydro and Power Authority Act, enacts section 37.1] allows the British Columbia Hydro and Power Authority to enter into an agreement with its trade unions for the joint management of its pension plan and pension fund.

 
Insurance Corporation Act

SECTION 2: [Insurance Corporation Act, enacts section 4.1] allows the Insurance Corporation of British Columbia to enter into an agreement with its trade unions for the joint management of its pension plan and pension fund.

 
Pension (College) Act

SECTION 3: [Pension (College) Act, amends section 1 (1)] adds new definitions.

SECTION 4: [Pension (College) Act, amends section 3 (7) (f)] is consequential to the amendment made by section 14 of this Bill.

SECTION 5: [Pension (College) Act, re-enacts section 4] preserves the rules for enrollment in the College Pension Plan for employees hired before September 1, 1999, and makes enrollment in the plan mandatory for employees hired on or after September 1, 1999 on attaining full time or income threshold status or when electing coverage.

SECTION 6: [Pension (College) Act, amends section 5] adjusts employer contribution rates to the fund to prepare the plan for changes agreed to respecting joint trusteeship.

SECTION 7: [Pension (College) Act, amends section 7 (1)] adjusts employee contribution rates to the fund to prepare the plan for changes agreed to respecting joint trusteeship.

SECTION 8: [Pension (College) Act, amends section 12 (1)] is consequential to amendments made by section 9 of this Bill.

SECTION 9: [Pension (College) Act, amends section 14]

(a) makes the provision for calculating pensions applicable to periods before January 1, 1999;

(b) changes, on and after January 1, 1999, the standard form of pension from a single life no guarantee plan to a single life 10 year guarantee plan, and changes the pension benefit formula;

(c) changes, on and after January 1, 1999, the standard form of pension from a single life no guarantee plan to a single life 10 year guarantee plan;

(d) changes, on and after January 1, 1999, the standard form of pension from a single life no guarantee plan to a single life 10 year guarantee plan;

(e) is consequential to amendments made by paragraphs (c) and (d) of this section.

SECTION 10: [Pension (College) Act, amends section 14.1 (1)] is consequential to amendments made by section 9 of this Bill.

SECTION 11: [Pension (College) Act, amends section 15 (1)]

(a) is consequential to amendments made by section 13 of this Bill;

(b) restricts the joint life and survivor option to the spouse or a dependant, or to a former spouse with written agreement or court order;

(c) is consequential to Income Tax Act (Canada) requirements.

SECTION 12: [Pension (College) Act, amends section 17 (3) (b)] is consequential to amendments made by section 9 of this Bill.

SECTION 13: [Pension (College) Act, amends section 19]

(a) is consequential to Income Tax Act (Canada) requirements respecting the disability pension benefit;

(b) is consequential to the definition of "totally and permanently disabled" as enacted by section 3 (b) of this Bill.

SECTION 14: [Pension (College) Act, repeals and replaces section 20 (1) to (4)] changes the pre-retirement death benefits by standardizing the benefit payable in the event of the member's death regardless of the member's marital status.

 
Pension (Municipal) Act

SECTION 15: [Pension (Municipal) Act, amends section 1 (1)] adds a new definition.

SECTION 16: [Pension (Municipal) Act, amends section 2]

(a) allows a new group of employers to come within the scope of the Municipal Pension Plan; namely private for-profit health sector employers funded by the government;

(b) is consequential to the amendment made by section 34 of this Bill, which makes the Pension (Teachers) Act apply to associated professionals and certified professionals.

SECTION 17: [Pension (Municipal) Act, amends section 4 (7) (f)] is consequential to the amendment made by section 21 of this Bill.

SECTION 18: [Pension (Municipal) Act, amends section 13 (4)] is consequential to the amendment made by section 21 of this Bill.

SECTION 19: [Pension (Municipal) Act, amends section 17]

(a) restricts the joint life and survivor option to the spouse or a dependant, or to a former spouse with a written agreement or court order;

(b) is consequential to Income Tax Act (Canada) requirements;

(c) changes the reduction formula for some employees entitled to a deferred pension;

(d) is consequential to the amendment made by section 21 of this Bill.

SECTION 20: [Pension (Municipal) Act, amends section 20] is consequential to the amendment made by section 21 of this Bill.

SECTION 21: [Pension (Municipal) Act, amends section 22] changes the pre-retirement death benefits by standardizing the benefit payable in the event of the member's death.

 
Pension (Public Service) Act

SECTION 22: [Pension (Public Service) Act, amends section 1 (1)] adds new definitions.

SECTION 23: [Pension (Public Service) Act, adds section 2 (6)] relocates and clarifies the operation of a provision currently in section 6 of the Pension (Public Service) Act.

SECTION 24: [Pension (Public Service) Act, repeals section 6 (3)] is consequential to the amendment made by section 23 of this Bill.

SECTION 25: [Pension (Public Service) Act, amends section 15]

(a) and (b) changes age and service rules for an unreduced pension effective April 1, 2000;

(c) is consequential to the definition of "totally and permanently disabled" as enacted by section 22 (b) of this Bill;

(d) provides for increased pension on total and permanent disability in accordance with Income Tax Act (Canada) rules;

(e) and (f) changes age and service rules for an unreduced pension effective April 1, 2000.

SECTION 26: [Pension (Public Service) Act, amends section 18 (1)]

(a) restricts the joint life and survivor option to the spouse or a dependant, or to a former spouse with written agreement or court order;

(b) is consequential to Income Tax Act (Canada) requirements.

SECTION 27: [Pension (Public Service) Act, repeals and replaces section 19 (2) (b)] makes the rule of 85 applicable to a deferred pension.

SECTION 28: [Pension (Public Service) Act, amends section 25] is consequential to the amendment made by section 29 of this Bill.

SECTION 29: [Pension (Public Service) Act, repeals and replaces section 26 (1) to (3)] changes the survivor pension benefit under the plan by standardizing the benefit payable in the event of the member's death regardless of the member's marital status.

SECTION 30: [Pension (Public Service) Act, repeals section 29 (1)] is consequential to the amendments made by section 29 of this Bill.

SECTION 31: [Pension (Public Service) Act, amends section 65 (2) (n)] is housekeeping.

SECTION 32: [Supplement to the Pension (Public Service) Act, repeals section 1] is consequential to the British Columbia Lottery Corporation establishing its own pension plan.

 
Pension (Teachers) Act

SECTION 33: [Pension (Teachers) Act, amends section 1 (1)] adds new definitions.

SECTION 34: [Pension (Teachers) Act, amends section 2 (1) (b)] makes the Pension (Teachers) Act apply to associated professionals and certified professionals.

SECTION 35: [Pension (Teachers) Act, amends section 16 (1)]

(a) restricts the joint life and last survivor option to the spouse or a dependant, or to a former spouse with a written agreement or court order;

(b) is consequential to Income Tax Act (Canada) requirements.

SECTION 36: [Pension (Teachers) Act, amends section 20] is consequential to the definition of "totally and permanently disabled" as enacted by section 33 (c) of this Bill.

SECTION 37: [Pension (Teachers) Act, amends section 21]

(a) eliminates the current marital status bias in the pre-retirement death benefit;

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


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