1998/99 Legislative Session: 3rd Session, 36th Parliament
THIRD READING
The following electronic version is for informational
purposes only.
The printed version remains the official version.
. . . continued . . .
1 In this Schedule:
"board" means the College Pension Board of Trustees established under section 3;
"investment management corporation" has the same meaning as in section 1 (1) of the Act;
"partners" means the government, the Post Secondary Employers' Association, the College Institute Educators' Association and the British Columbia Government and Service Employees' Union;
"pension corporation" has the same meaning as in section 1 (1) of the Act;
"pension fund" means the College Pension Fund continued under section 9;
"pension plan" means the College Pension Plan continued under section 2 (1);
"pension plan rules" means the regulations made under section 13 (1);
"plan administrator" means the pension corporation;
"plan employer partners" means the government and the Post Secondary Employers' Association;
"plan member" has the same meaning as in section 1 (1) of the Act;
"plan member partners" means the College Institute Educators' Association and the British Columbia Government and Service Employees' Union.
2 (1) The plan provided for by and under the Pension (College) Act is continued as the College Pension Plan under this Schedule and the pension plan rules.
(2) An employer to whom the Pension (College) Act applied immediately before the coming into force of this section continues to be an employer, and those eligible employees of that employer continue to be plan members, under the College Pension Plan.
(3) A person who, immediately before the coming into force of this section, was a plan member under the Pension (College) Act continues to be a plan member under the College Pension Plan.
(4) Any rights vested in each plan member or beneficiary under the plan provided for by and under the Pension (College) Act continue to apply to the plan member or beneficiary, in the same manner and to the same extent, under the College Pension Plan.
(5) The fiscal year end of the pension plan is August 31, or any other date that the board may establish as the fiscal year end for the pension plan.
3 (1) There is established a College Pension Board of Trustees comprising at least 10 members as follows:
(a) 4 persons appointed by the government, one of whom is nominated by the Post Secondary Employers' Association;
(b) 3 persons appointed by the College Institute Educators' Association;
(c) one person appointed by the British Columbia Government and Service Employees' Union;
(d) one person who is retired from service and receiving a pension under the pension plan, appointed by the plan member partners;
(e) one person who is a plan member but not a retired plan member nor a member of the College Institute Educators' Association nor a member of the British Columbia Government and Service Employees' Union, appointed by the plan employer partners.
(2) Each member appointed under subsection (1) has one vote.
(3) The members must
(a) designate one of the members appointed under subsection (1) as chair of the board, or
(b) appoint a person, not referred to in subsection (1), as a member of the board and designate that person as chair of the board.
(4) The board must determine whether
(a) the chair designated under subsection (3) (a) is entitled to a second or casting vote, or
(b) the chair designated under subsection (3) (b) has a vote and, if so, whether the chair is entitled to a second or casting vote.
(5) An appointment to the board under subsection (1) or (3) (b) must be made
(a) for a term not exceeding 3 years, and
(b) so that no more than 4 appointments expire in any calendar year.
(6) An appointment under subsection (1) or (3) (b) may be renewed.
(7) Despite subsection (1) or (3) (b), an appointment to the board may be rescinded by the party that made the appointment.
(8) Subject to subsection (9), a quorum of the board consists of 8 members of the board, and all decisions of the board must be made by a majority of at least 80% of the voting members appointed to the board.
(9) The board may, by agreement of a majority of at least 80% of the voting members appointed to the board, change a requirement of subsection (8).
(10) In the absence of a member or members of the board appointed by the government, a government member in attendance at a meeting of the board is permitted to vote on behalf of the absent government member or members.
(11) In the absence of a member or members of the board appointed by the College Institute Educators' Association, a College Institute Educators' Association member in attendance at a meeting of the board is permitted to vote on behalf of the absent College Institute Educators' Association member or members.
(12) The members of the board are the trustees of the pension plan and the pension fund.
(13) Each member of the board must be a permanent resident of Canada.
(14) The board may, from the pension fund, pay
(a) to a member of the board or a person appointed to a committee of the board an allowance for reasonable travel and other expenses necessarily incurred in carrying out the business of the board,
(b) to a member of the board or a person appointed to a committee of the board, if the member or person is not receiving remuneration from any other source for acting as a member or on a committee, remuneration that has been set by the board and is consistent with Treasury Board guidelines, and
(c) to an organization, if the organization is the source of remuneration paid to a member of the board or person appointed to a committee of the board, remuneration for the services of the member or person at the rate set by the board under paragraph (b).
4 (1) For the purposes of this Schedule, the board may
(a) retain the services of persons, and
(b) enter into agreements.
(2) The board has the necessary legal capacity to sue and be sued in its own name for the purposes of a matter arising under this Schedule or the pension plan rules.
(3) The board, on behalf of the pension fund, may recover and enforce contributions, deductions and any interest payments that should have been made or are due to the pension fund by action in any court in the name of the board as a debt due to the board and, in that case, the Limitation Act does not apply.
5 (1) The board is responsible for the administration of the pension plan and the management of the pension fund.
(2) The board must do all of the following:
(a) make rules regarding the conduct of the business of the board, including, but not limited to,
(i) respecting voting by the chair at meetings of the board,
(ii) appointing committees of the board and delegating functions to them,
(iii) allowing non-board members to serve as members of a committee,
(iv) setting the remuneration of eligible board members and persons serving on committees, and
(v) establishing the practice and procedure for appeals to the board;
(b) invest and manage the pension fund to ensure that the obligations of the pension plan are met, including, but not limited to,
(i) establishing the investment policy and the asset mix, and
(ii) monitoring the performance of the plan administrator and the investment management corporation or other investment manager referred to in section 6 (3);
(c) direct the plan administrator respecting
(i) the application of the pension plan rules,
(ii) the negotiation of agreements on behalf of the board with a person, class of persons or body, including agreements which may differ from the pension plan rules, respecting
(A) portability of pension benefits,
(B) pension-based early retirement incentive programs,
(C) continuation of pension plan membership in the case of employer merger or reorganization,
(D) provision of benefits in addition to those provided for in the pension plan rules,
(E) reporting requirements on behalf of employers under the Income Tax Act (Canada), and
(F) any other agreements the board considers to be advisable, and
(iii) the implementation of any agreements entered into by the board;
(d) approve, in whole or in part and with or without modifications, the annual budget for pension administration and investment activities;
(e) prepare an annual report, including audited financial statements, on the pension plan and pension fund activity;
(f) have an actuarial valuation performed every 3 years, or more frequently if appropriate or necessary;
(g) retain professional, technical and other advisors that it considers necessary and determine the remuneration and reimbursement for expenses to which they are entitled;
(h) provide for the financial administration of the pension plan by
(i) having an accounting system established for the proper reporting and accountability to the board in a timely manner and at a reasonable cost,
(ii) having annual financial statements of the pension plan prepared in accordance with generally accepted accounting principles,
(iii) having a financial reporting audit performed on the financial statements referred to in subparagraph (ii), and
(iv) providing to the Minister of Finance and Corporate Relations an annual report on the pension plan, including the audited financial statements.
(3) Despite subsection (2) (h) (ii) and (iii), financial statements for a period other than 12 months, but not exceeding 16 months, may be prepared and audited at the time the fiscal year of the pension plan is established in accordance with section 2 (5).
(4) The board must ensure that
(a) the money of the pension fund is invested or loaned in the best financial interests of the plan members and, in doing that, must
(i) exercise the care, diligence and skill that a person of ordinary prudence would exercise when dealing with the property of another person, and
(ii) make the investments and loans in accordance with the provisions of the Pension Benefits Standards Act and other regulatory requirements,
(b) the plan administrator keeps an account of all money received and paid out of the pension fund and keeps an accounting of the assets and liabilities of the pension fund,
(c) the plan administrator keeps an individual record of contributions made by each plan member, and
(d) the pension plan and pension fund are administered in compliance with the law.
(5) The board may
(a) pass resolutions it considers necessary or advisable to manage and conduct its own affairs and to exercise the board's powers and perform its duties,
(b) establish committees or panels of the board, and may determine the composition, duties, responsibilities, limitations and operating procedures of those committees or panels,
(c) appoint persons other than members of the board to a committee or panel referred to in paragraph (b), and may set the term of appointment to the committee or panel that applies to those persons,
(d) appoint members of the board to the boards of the pension corporation and the investment management corporation, and
(e) rescind an appointment made under paragraph (c) or (d).
6 (1) The board must retain the services of the pension corporation to carry out the board's responsibilities respecting the administration of the pension plan.
(2) The board must place the pension fund with the investment management corporation for funds management services.
(3) Despite subsection (2), the board may place some or all of the pension fund with other investment managers for funds management services if
(a) a period of at least one year has elapsed from the date the first actuarial valuation report was prepared under section 12, and
(b) in the opinion of the board, the alternative funds management services are in the best financial interests of the plan members.
7 (1) A person or organization directly affected by a decision of the plan administrator in the application of the pension plan rules may, by written notice to the board, appeal all or part of the decision in accordance with the practice and procedure for appeals to the board.
(2) The board must ensure that each appeal is dealt with promptly and efficiently.
(3) The board may establish a panel consisting of one or more persons, as determined by the chair, to consider appeals.
(4) If a panel consists of more than one person, the chair must preside over the panel or designate the person who is to chair the panel.
(5) For an appeal referred to a panel,
(a) the panel has all the jurisdiction and may exercise the powers and perform the duties of the board, and
(b) a decision or order of the panel is a decision or order of the board.
(6) The board or panel must confirm, vary or reverse the decision, order or ruling being appealed.
(7) For the purposes of this section, the board and each of its members, or a panel of the board and each person on the panel, has the powers, protection and privileges of a commissioner under sections 12, 15 and 16 of the Inquiry Act.
8 (1) The pension fund may indemnify a person who is a member of the board or a person appointed to a committee or a panel under section 5 (5) (c), or a former member of the board or committee or panel member, against all costs, charges and expenses actually and reasonably incurred by the person, including an amount paid to settle an action or satisfy a judgment in a civil, criminal or administrative action or proceeding to which the person is made a party because of being or having been a board member or committee or panel member, and including an action brought by the board, if
(a) the board member or committee or panel member acted in good faith, and
(b) in the case of a criminal action or proceeding, the board member or committee or panel member had reasonable grounds for believing that his or her conduct was lawful.
(2) The board may purchase and maintain, for the benefit of the board or a board member or committee or panel member referred to in subsection (1), or any of them, insurance against liability incurred by the board or by the board member or committee or panel member.
9 (1) The College Pension Fund continued under the Pension (College) Act is continued under this Schedule.
(2) The pension fund consists of cash, investments and other assets held by the trustees.
(3) The contributions from the employers and plan members and the net income from investments and other sources must be paid into the pension fund.
(4) Benefits and disbursements payable under this Schedule and the pension plan rules must be paid from the pension fund and, for this purpose, the pension fund must be considered one and indivisible.
(5) The following fees, expenses and disbursements, as are reasonably necessary and approved by the board, must be paid from the pension fund:
(a) the fees, expenses and disbursements of the board incurred in administering the pension plan and managing the pension fund;
(b) the fees, expenses and disbursements of, and amounts requisitioned by, the pension corporation and the investment management corporation, or other investment managers, to operate and administer the pension plan and to manage the pension fund;
(c) any other expenses incurred in the administration of this Schedule and the pension plan rules.
(6) The pension fund is for the sole benefit of the plan members, and the government does not have a claim on the assets of the pension fund other than as expressly provided for in this Schedule.
10 (1) The board must engage the services of an actuary to prepare all reports and perform all computations required by the board.
(2) Fees of the actuary must be paid from the pension fund.
11 (1) The board must engage the services of an auditor to perform, at least once in each year, an audit of the financial statements of the pension plan, including the accounts of the board.
(2) Fees of the auditor must be paid from the pension fund.
12 (1) The board must have the pension plan reviewed and the results of the review set out in the form of an actuarial valuation report for a going concern valuation in accordance with the requirements of the Pension Benefits Standards Act and the regulations under that Act.
(2) If the actuarial valuation report indicates that there is a requirement to increase contribution rates, the increase must be shared equally between the employers and the plan members.
(3) If the actuarial valuation report indicates that an actuarial gain has occurred since the last valuation, the gain must first be applied to offset previous actuarial losses and outstanding unfunded liabilities, if any, and having satisfied that requirement, the board may consider and take action under one or more of the following options:
(a) increase the reserve established for stabilizing contribution rates;
(b) transfer a portion of the gain to an account within the pension fund established to provide for indexing of benefits for retired plan members;
(c) share equally in any reduction or elimination of employer and plan member contributions for a period of time;
(d) make changes to the benefit provisions as set out in section 15 regarding amendments to the plan rules.
(4) Any action taken by the board under subsection (2) or (3) must comply with the Pension Benefits Standards Act funding requirements for a going concern valuation.
13 (1) The College Pension Board of Trustees may make regulations, applicable generally or to a specified person or class of persons, prescribing the pension plan rules, including, without limitation, regulations as follows:
(a) respecting the pension fund, the funding for and payment from different accounts and the establishment of different accounts for different purposes within the pension fund, including
(i) an account for basic pension benefits provided within the Income Tax Act (Canada) maximums for a registered pension plan,
(ii) an account for pension indexing, and
(iii) an account for supplemental benefits not paid from the other accounts;
(b) governing employer and employee eligibility to participate in the pension plan, including any information required to establish the status of employers and the enrollment of particular employees as members, and providing for continuity of service on transfer between different employers, and providing differently for different employee groups;
(c) prescribing employer and plan member contributions to the pension fund, including
(i) prescribing different rates for different circumstances, and the timing and reporting of contributions,
(ii) prescribing what constitutes the salary of a plan member for the purposes of determining contributions,
(iii) imposing restrictions on access to amounts contributed to the pension fund and interest on those amounts, including restrictions on demanding or enforcing payment, and
(iv) prescribing contribution limits;
(d) respecting pensionable service, including
(i) prescribing requirements for calculating annual service accrual for full time and less than full time employment,
(ii) the terms and conditions respecting the recognition of periods of short term and long term disability, and
(iii) restricting recognition of pensionable service on partial payment of arrears;
(e) respecting contributory service, including
(i) prescribing requirements for calculating service accrual for full time and less than full time employment,
(ii) the terms and conditions respecting the recognition of periods of short term and long term disability,
(iii) the terms and conditions respecting the recognition of periods of child rearing, and
(iv) recognition of contributory service on payment or partial payment of arrears;
(f) respecting the purchase of service, including specifying the terms and conditions for the purchase of service, and amounts to be paid and by whom, for periods of
(i) leave of absence,
(ii) service that can be reinstated,
(iii) service during which the plan member was not eligible to make contributions or elected not to make contributions, and
(iv) any other service approved by the board, including service with any employer, whether or not the employer is an employer under this Schedule;
(g) prescribing the earliest retirement age, pensionable age, normal retirement age or latest retirement age applicable to any plan member or group or class of plan members;
(h) respecting benefits, including
(i) the eligibility and entitlement to receive a benefit and the criteria and methods for determining a benefit,
(ii) the calculation of the highest average salary,
(iii) the calculation of the benefit amount on termination of membership, pre-retirement death, disability retirement, early retirement, normal retirement, late retirement, shortened life expectancy and death, and prescribing available options for receiving pension benefits,
(iv) the nature of a benefit, whether pre-retirement, on retirement or post retirement, including spousal benefits, the protection of spousal benefits, the nomination of beneficiaries, a change of beneficiaries or benefit selection, minor beneficiaries, spousal waivers and the nomination of a beneficiary on marriage breakdown,
(v) post retirement group benefits, and the type and level of benefits, entitlement to benefits, terms and conditions of how benefits are provided and funded, and how and by whom they are funded, and
(vi) supplemental benefits, including
(A) benefit calculations and available options for receipt of those benefits with reference to the Income Tax Act (Canada),
(B) the terms and conditions of how those benefits are to be provided, funded and paid, and by whom they are funded, and
(C) the indexing of supplemental benefits;
(i) establishing the terms and conditions for pension indexing, including
(i) the eligibility and entitlement to receive indexing and the criteria and methods for determining indexing, and
(ii) determining the highest average salary for long term disability, deferred pensions and pensions for members with less than full time employment;
(j) respecting the manner of making an application for, and the granting or continuation of, benefits, supplemental benefits and disability benefits, including the information required and the form of proof required for that information;
(k) respecting applications for monthly pension benefits, including
(i) requirements for filing applications,
(ii) the effective date for monthly pension benefits on late filing of applications, and
(iii) exceptions for persons incapable of managing their affairs or other sufficient reason;
(l) respecting the requirements for filing written agreements and court orders made under Parts 5 and 6 of the Family Relations Act, or similar orders of a court outside British Columbia that are enforceable in British Columbia and, in case of late filing, whether or not adjustments are required;
(m) respecting the methodology and assumptions for any calculations required to administer the pension plan;
(n) establishing general administrative requirements and imposing administrative obligations on employers;
(o) prescribing administrative penalties or the payment of interest by employers, plan members or the pension plan in the case of delay or noncompliance;
(p) exempting a person or class of persons, or allowing the board to exempt a person or class of persons, with or without conditions, from any provision of the pension plan or pension plan rules;
(q) defining any word or expression used in this Schedule or in the regulations;
(r) providing for any matter necessary or advisable to carry out effectively the intent and purposes of this Schedule.
(2) In making a regulation under this Schedule, the College Pension Board of Trustees may delegate a matter to a person or the board and confer a discretionary power on a person or the board.
(3) The College Pension Board of Trustees may amend, repeal or replace the pension plan rules made under subsection (1).
14 The following conditions apply to, and are deemed to be included in, the pension plan rules:
(a) if, on the death of a plan member, a benefit becomes payable to
(i) the spouse of the plan member if there is a spouse and a valid spousal waiver has not been filed with the plan administrator, or
(ii) the person nominated by the plan member as beneficiary if there is no spouse or a valid spousal waiver has been filed with the plan administrator,
the amount
(iii) is not subject to the control of the creditors of the deceased plan member, and
(iv) does not form part of the estate of the plan member;
(b) if, on the death of a plan member, a benefit becomes payable to his or her estate or to the personal representative of the deceased plan member, the benefit forms part of the estate of the plan member and is subject to the control of the creditors;
(c) if, on the death of a plan member, a benefit becomes payable to a minor, the benefit must be paid to the Public Trustee, in trust for the minor, for payment to the minor on reaching the age of 19 years;
(d) a pension or refund of any amount to the credit of any plan member in the pension fund may not be assigned, charged, attached, anticipated or given as security, and any instructions purporting to assign, charge, attach, anticipate or give as security a pension or refund are void;
(e) nothing in the pension plan impairs or affects the rights of an employer to remove or dismiss a person from service.
15 (1) The board must amend the pension plan rules to the extent necessary to keep the rules in compliance with the Family Relations Act, the Income Tax Act (Canada), the Pension Benefits Standards Act and any other enactment applicable to the pension plan, the pension fund and the benefits payable under the pension plan.
(2) The partners may direct the board to amend the pension plan rules and the board must amend the rules if
(a) the partners have first received and considered the advice of the board respecting both the cost and the administrative impact of implementing the proposed amendment, and
(b) the proposed amendment is not inconsistent with subsection (1) or the trustees' fiduciary responsibilities.
(3) The board may make recommendations to the partners respecting amendments to the pension plan rules that the board considers to be in the best interests of the plan members and, with the approval of the partners respecting those recommendations, the board may amend the pension plan rules.
(4) Despite subsection (3), the board may amend the pension plan rules if
(a) there is no resulting increase in the contribution rates for providing the non indexed basic benefits,
(b) there is no resulting increase in the contribution rates for providing for the indexing of benefits,
(c) there is no creation of, or increase in, an unfunded liability, and
(d) the proposed amendment is consistent with the trustees' fiduciary responsibilities.
(5) For the purposes of subsection (4), when considering an amendment to the pension plan rules respecting a benefit improvement, the board must use a 25 year period for the amortization of a pension plan surplus.
16 Withdrawal from the pension plan by an employer is only permitted if
(a) terms and conditions for withdrawal are established by the board, and
(b) those terms and conditions are followed.
17 All benefit calculations based on the rules that were in effect at the time of the calculation under the Pension (College) Act and the regulations to that Act are deemed to have been validly made for the purposes of this Schedule.
18 This Schedule continues to apply to all agreements made under the Pension (College) Act that were in effect on the date of the repeal of that Act, as if those agreements had been made by the board under the authority of this Schedule.
19 The partners must, within one year after the coming into force of this section, enter into an agreement that sets out the use or distribution of a surplus in the pension fund in the amount of $30 million as of November 1, 1998.
20 The College Pension Board of Trustees may make regulations that are necessary or advisable for meeting or removing any difficulty arising out of the transition from the Pension (College) Act repealed by this Act, and for preserving and giving effect to the rights of all persons accrued or accruing under the Pension (College) Act except as those rights are expressly varied by this Schedule, and the regulations may be made to apply generally or to a particular case.
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