2005 Legislative Session: 1st Session, 38th Parliament
FIRST READING


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


HONOURABLE MICHAEL DE JONG
MINISTER OF LABOUR AND CITIZENS' SERVICES

BILL 17 -- 2005

LEGISLATIVE ASSEMBLY STATUTES
AMENDMENT ACT, 2005

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

 
Legislative Assembly Management Committee Act

1 Section 3 of the Legislative Assembly Management Committee Act, R.S.B.C. 1996, c. 258, is amended

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

(d.1) payments of Capital City allowance to members of the Legislative Assembly, ,

(b) in subsection (1) by repealing paragraph (d.2),

(c) in subsection (1) by repealing paragraph (d.3),

(d) in subsection (1) by striking out "and" at the end of paragraph (f) and by adding the following paragraph:

(f.1) the payment of severance to a former member, and for this purpose may establish a severance plan that sets out the circumstances in which a person is eligible for severance as a result of ceasing to be a member, the amount and manner of payment of severance and other matters related to severance, and , and

(e) by repealing subsection (1.1).

2 The following section is added:

Basic compensation of members

3.1 (1) Subject to this section and section 10 of the Legislative Assembly Allowances and Pension Act, effective April 1, 2006, the basic compensation for members of the Legislative Assembly is $86 580 a year.

(2) The basic compensation referred to in subsection (1) must be adjusted from time to time so that the basic compensation remains equal to 60% of the sessional allowance paid to members of the House of Commons under the Parliament of Canada Act.

(3) If the sessional allowance paid to members of the House of Commons under the Parliament of Canada Act is adjusted retroactively, the basic compensation adjusted under subsection (2) must be made retroactive to the same date.

(4) If a person is a member for only a portion of a year, the basic compensation payable to that person for that year equals the dollar amount set by this section multiplied by the proportion that the number of days the person is a member bears to the total number of days in the year.

 
Legislative Assembly Allowances and Pension Act

3 Section 1 of the Legislative Assembly Allowances and Pension Act, R.S.B.C. 1996, c. 257, is amended

(a) by renumbering the section as section 1 (1),

(b) in subsection (1) by striking out "In this Act:" and substituting "Subject to subsection (2), in this Act:",

(c) in subsection (1), in paragraph (c) of the definition of "legislative allowance", by striking out "section 3" and substituting "section 3 (1) (d.1), before its repeal and replacement by the Legislative Assembly Statutes Amendment Act, 2005,", and

(d) by adding the following subsection:

(2) The following definitions set out in subsection (1) do not apply in Part 3 and the Schedule:

(a) "account";

(b) "contributor";

(c) "service";

(d) both definitions of "years of service".

4 Section 4 is repealed and the following substituted:

Salaries

4 (1) The salaries payable under this section must be paid in addition to the basic compensation paid to a member under section 3.1 of the Legislative Assembly Management Committee Act.

(2) Subject to subsections (3) and (7), each member who holds a position referred to in column 1 of the table following subsection (7) must be paid, effective April 1, 2006, the annual salary set out in column 2 opposite that position.

(3) The dollar amounts referred to in the table following subsection (7) are deemed to be adjusted annually each April 1 beginning in 2007 in accordance with the indexing formula set out in the 1992 Connaghan Report, entitled "Review of MLA Remuneration: The British Columbia Legislative Assembly".

(4) The Premier must not receive any further salary as head of a ministry.

(5) A member of the Executive Council with portfolio must not receive any further salary as head of any other ministry.

(6) A person who is entitled to a salary under this section as a chair of a government caucus committee must not receive any additional salary as the chair of any other caucus committee.

(7) If a person holds a position referred to in the table following this subsection for only a portion of a year, the salary payable to that person for that year equals the dollar amount set by this section multiplied by the proportion that the number of days the person holds that position bears to the total number of days in the year.

Table of Salaries
Item Column 1
Position
Column 2
Annual Salary
Premier $59 740
A member of the Executive Council with portfolio $44 740
A member of the Executive Council without portfolio $34 740
A parliamentary secretary $9 000
The Speaker $44 740
The Deputy Speaker $23 948
The Assistant Deputy Speaker $23 948
The Deputy Chair, Committee of the Whole $12 000
The Leader of the Official Opposition $44 740
10  The Leader of a recognized political party other than the government or the Official Opposition $23 948
11  A chair of a government caucus committee who is not a member of the Executive Council, up to a maximum of 2 chairs in total for all caucus committees for the government $9 000
12  A chair of an Official Opposition caucus committee, up to a maximum of 2 chairs in total for all caucus committees for the Official Opposition $9 000
13  The Government Whip $23 948
14  The Deputy Government Whip $12 000
15  The Official Opposition House Leader $23 948
16  The House Leader of a recognized political party other than the government or the Official Opposition $9 000
17  The Official Opposition Whip $23 948
18  The Official Opposition Deputy Whip $12 000
19  The Party Whip of a recognized political party other than the government or the Official Opposition $9 000
20  The Caucus Chair of the Government $23 948
21  The Caucus Chair of the Official Opposition $23 948
22  The Caucus Chair of a recognized political party other than the government or the Official Opposition $9 000
23  The Deputy Caucus Chair of a recognized political party other than the government or the Official Opposition $9 000
24  The Deputy House Leader of a recognized political party $9 000
25  The Chair of a select standing, select or special committee $9 000
26  The Deputy Chair of a select standing, select or special committee $6 000

5 Section 8 (2) is repealed and the following substituted:

(2) The Chair and the Deputy Chair of the select standing, select or special committee may be paid expenses under subsection (1) as a member of the committee in addition to amounts paid to the member under section 4 of this Act.

6 The heading to Part 2 is repealed and the following substituted:

Part 2 -- Pension for Service Before June 19, 1996 .

7 The following Part is added:

Part 3 -- 2006 Defined Benefit Pension Plan

Interpretation

35 (1) In this Part:

"administrator" means the person or entity designated as administrator under section 38;

"Part 3 pension plan" means the pension plan established by section 37 (1);

"pension fund" means the Defined Benefit Pension Fund established by section 40 (1);

"pensionable earnings" means

(a) for service on or after January 1, 2006, the total of

(i) the basic compensation paid to a member under the Legislative Assembly Management Committee Act, and

(ii) any salary payable to the member as a result of the member holding a position referred to in section 4 of this Act or section 3 (1.1) of the Legislative Assembly Management Committee Act, before the repeal of that provision by the Legislative Assembly Statutes Amendment Act, 2005, and

(b) for service before January 1, 2006, the total amount received by a person from the types of compensation and salaries, referred to in paragraph (a) of this definition, that are included in pensionable earnings under the plan rules;

"plan participant" means any of the following persons:

(a) a member on or after January 1, 2006;

(b) a person who was a member before January 1, 2006 and meets the requirements for participation in the plan set out in this Part and the plan rules,

but does not include a person in a category of persons excluded by the plan rules;

"plan rules" means the rules made under section 37 (3) and, if section 43 applies, the rules that apply under that section;

"public service board" means the public service board as defined in the Public Sector Pension Plans Act;

"schedule" means the Schedule to this Act, as amended from time to time by regulation;

"service" means service as a member

(a) on or after January 1, 2006, and

(b) before January 1, 2006, if that period is included as service under the plan rules.

(2) A reference in this Part to "this Part" or "Part 3" must be read as including a reference to the schedule.

Application

36 This Part applies to

(a) the government, and

(b) a plan participant who makes contributions under section 39.

Establishing new pension plan

37 (1) There is established, effective January 1, 2006, a pension plan for plan participants.

(2) The terms of the Part 3 pension plan must be based on the principles set out in the schedule.

(3) Subject to subsection (2), the Legislative Assembly Management Committee may establish rules respecting the terms, administration and operation of the Part 3 pension plan, including rules

(a) respecting the inclusion of service for one or more periods of time preceding January 1, 2006,

(b) defining pensionable service, and setting the circumstances in which service is not recognized as pensionable service under the plan rules,

(c) respecting eligibility to be a plan participant, including the information necessary to establish status as a plan participant,

(d) respecting eligibility to receive a benefit and the determination of the amount of that benefit,

(e) respecting benefits under this pension plan, including benefits on termination, early retirement, normal retirement, late retirement, disability retirement and pre-retirement death,

(f) respecting spousal or survivor benefits provided under this pension plan,

(g) respecting the nomination of and benefits for beneficiaries under this pension plan,

(h) exempting a person or a class of persons from any requirements of this pension plan,

(i) defining contributory service, determining in what circumstances service should be considered to be contributory service and establishing conditions and procedures for purchase of service under this pension plan,

(j) respecting the resolution of disputes,

(k) establishing methods for calculating years of service,

(l) respecting the form of pensions,

(m) respecting the indexing of pensions,

(n) respecting accrual of service,

(o) establishing the amount of government contributions and the manner of making those contributions,

(p) respecting requirements for a person to participate in this pension plan,

(q) respecting circumstances in which the government has a claim on the assets in the pension fund, and

(r) any matter necessary or advisable for the establishment of the pension plan rules.

(4) Under subsection (3), the Legislative Assembly Management Committee may do one or more of the following:

(a) make different rules for different classes of plan participants, service, periods of time and circumstances;

(b) delegate a matter to a person;

(c) confer a discretion on a person.

(5) Without limiting subsections (3) and (4), the Legislative Assembly Management Committee may adopt, with or without variation, a rule of the Public Service Pension Plan.

Administration of the Part 3 pension plan

38 (1) The Legislative Assembly Management Committee may designate the public service board, the British Columbia Pension Corporation established under section 5 of the Public Sector Pension Plans Act or another person to be the administrator of the Part 3 pension plan.

(2) At the request of the Legislative Assembly Management Committee, the chair of that committee may

(a) enter into an agreement with a person designated under subsection (1), including the setting of remuneration and other terms and conditions of the appointment, and

(b) retain any person and enter into agreements for the purpose of the administration of the Part 3 pension plan.

(3) If the public service board is designated under subsection (1), the public service board is deemed to have the authority necessary to

(a) carry out the powers, functions and duties of the administrator under this Part, and

(b) accept the transfer of funds under section 42.

(4) The administrator is responsible for

(a) the administration of the Part 3 pension plan, and

(b) the payment of benefits from the pension fund in accordance with the plan rules.

(5) The administrator may enter into agreements in relation to the Part 3 pension plan, including agreements related to the following:

(a) administration of the Part 3 pension plan;

(b) securing the services of actuaries, auditors and members of other professions.

(6) The administrator, on behalf of the Part 3 pension plan, may recover and enforce contributions, deductions and any interest payments that should have been paid or are due to the pension fund, by action in any court in the name of the administrator, as a debt due to the administrator, and in that case the Limitation Act does not apply.

(7) The administrator may request the Minister of Finance to make withdrawals from the pension fund for the purpose of payments under this section.

Contributions by plan participants

39 (1) Effective January 1, 2006, the government must deduct, from the pensionable earnings of a member, a contribution of 9% of the pensionable earnings.

(2) The government is not obliged to make a deduction under subsection (1) with respect to a member who has accrued the member's maximum pension, as determined under the Part 3 pension plan.

(3) Subject to the Income Tax Act (Canada), subsection (2) does not apply if a member referred to in that subsection requests the government to make the deductions.

(4) Despite subsection (1), the government may not make deductions under subsection (1) from a person who has reached the maximum pensionable age that is set under the Income Tax Act (Canada) in relation to a pension plan registered under that Act.

(5) A plan participant may make contributions in respect of service before January 1, 2006, if the contributions are permitted under the plan rules and, if they are permitted, the contributions are made in accordance with the plan rules.

Pension fund

40 (1) The Defined Benefit Pension Fund is established as a pension fund.

(2) The Minister of Finance is trustee for the Defined Benefit Pension Fund and must pay the following into that fund:

(a) the government's contributions required under the Part 3 pension plan;

(b) any contributions deducted under section 39 (1);

(c) any contributions made under section 39 (5).

(3) A separate contributory account, including both contributions and interest, must be kept for each plan participant who has made contributions.

(4) A separate account must also be kept for contributions made by the government.

(5) Interest must be credited by the Minister of Finance to each of the accounts on March 31 and September 30 in each year, calculated on the amount in the account on the last preceding October 1 and April 1 respectively.

(6) An interim credit of the accrued interest must be made at the time the plan participant's account is closed.

(7) The rate of interest must be that currently being paid under the Public Service Pension Plan.

Payment of benefits and disbursements

41 (1) Benefits payable under the Part 3 pension plan must be paid from the pension fund, and, for this purpose, the pension fund must be considered one and indivisible.

(2) Fees, expenses and disbursements that

(a) are reasonably necessary for the administration and management of the Part 3 pension plan and pension fund, and

(b) if there is an administrator, are approved by the administrator,

must be paid from the pension fund.

(3) 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 the plan rules.

Transfer to registered pension plan

42 Despite section 40, for the purpose of providing the Part 3 pension plan, the Minister of Finance may transfer all or a portion of the contributions referred to in section 40, plus interest accrued to the date of transfer,

(a) with the approval of the public service board, into the Public Service Pension Fund, and

(b) into any other registered pension plan under the Income Tax Act (Canada).

Application of Public Service Pension Plan to members

43 (1) Subject to subsection (2), if the public service board agrees to be the administrator of the Part 3 pension plan, the Public Service Pension Plan rules apply with the necessary changes and so far as they are applicable.

(2) If subsection (1) applies and there is a conflict or an inconsistency between the Public Service Pension Plan rules and

(a) this Part, or

(b) the rules made under this Part,

this Part and the rules made under this Part prevail.

Application of Pension Benefits Standards Act

44 Sections 63 and 64 of the Pension Benefits Standards Act, and any other provisions of that Act that are prescribed by the Lieutenant Governor in Council, apply to the Part 3 pension plan.

Pension allowance not assignable

45 (1) A pension granted under this Part may not be assigned, charged or attached by process in any court.

(2) Except as expressly provided in this Part, nothing in this Part may be construed to confer on any person any right to demand or enforce the repayment of any amount contributed by the person or on his or her behalf to the fund, or the payment of any interest.

(3) The equity of any contributor in the fund does not confer on the contributor any right to borrow money from the fund.

Deduction of debt owing to the government

46 The Minister of Finance may deduct from the amount standing to the credit of a plan participant sums necessary to make good a debt that may be due by the plan participant to the government.

Indemnification

47 (1) The pension fund may indemnify the administrator, a former administrator, the Legislative Assembly Management Committee, a person who is or was a member of the Legislative Assembly Management Committee against all costs, charges and expenses actually and reasonably incurred by the administrator, former administrator, committee, member or former member, including an amount paid to settle an action or satisfy a judgment in a civil or administrative action or proceeding to which the administrator, former administrator, committee, member or former member is made a party because of actions taken by one or all of them with respect to this Part, if the administrator, former administrator, committee, member or former member of the committee acted in good faith.

(2) The administrator and the Legislative Assembly Management Committee may purchase and maintain, for the benefit of the administrator, that committee and the members of that committee, or any of them, insurance against liability incurred by the administrator, the committee or a member of the committee.

Appropriation

48 (1) Subject to subsection (2), if money is required under this Part or the plan rules to be paid by the Minister of Finance or the government, that money must be paid by the Minister of Finance from money appropriated for that purpose by the Legislative Assembly or, in the absence of an adequate appropriation for that purpose, from the consolidated revenue fund.

(2) Subsection (1) does not apply to payments made from the pension fund unless the balance of the pension fund is insufficient.

Regulations

49 (1) For the purposes of this Part, the Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) amending the schedule;

(b) defining a word or phrase used in the schedule but not defined in this Part;

(c) prescribing provisions of the Pension Benefits Standards Act that are to apply to the Part 3 pension plan.

(3) Regulations made under subsection (2) may be made retroactive to January 1, 2006 or any date subsequent to January 1, 2006, and if made retroactive are deemed to have come into force on the date specified in the regulation.

Transitional regulations

50 (1) In this section:

"former defined benefit plan" means the pension plan established by Part 2;

"former RRSP plan" means the registered retirement savings plan established under section 3 (1) (d.3) of the Legislative Assembly Management Committee Act, before the repeal of that provision by the Legislative Assembly Statutes Amendment Act, 2005.

(2) The Lieutenant Governor in Council may, on the recommendation of the Legislative Assembly Management Committee, make regulations that are necessary or advisable

(a) for meeting or removing any difficulty arising out of the transition from the former RRSP plan or the former defined benefit plan to the Part 3 pension plan, including regulations for the purposes of the Part 3 pension plan in respect of the recognition of service of a person that occurred before the Part 3 pension plan was in force, or

(b) for more effectively bringing into operation this Part, the Part 3 pension plan and the plan rules and for obviating any transitional difficulties encountered.

(3) The Lieutenant Governor in Council may, on the recommendation of the Legislative Assembly Management Committee, make regulations to amend this Part to the extent necessary to ensure that this Part and the Part 3 pension plan comply with the rules in and under the Income Tax Act (Canada) applicable to registered pension plans and funds.

(4) Regulations made under subsections (2) and (3) may be made retroactive, and if made retroactive are deemed to have come into force on a date specified in the regulation.

(5) Unless earlier repealed, every regulation made under subsection (2) or (3) is repealed on January 1, 2009.

(6) This section is repealed on January 1, 2009.

8 The following Schedule is added:

 
Schedule

Principles of the Part 3 Pension Plan

(Section 37 (2))

1 The Part 3 pension plan must be a defined benefit pension plan.

2 The formula for calculating the amount of a plan participant's pension under the Part 3 pension plan is the following:

P = 5.5% x E x S

where

P = the amount of the pension of a plan participant;

E = the highest 3-year average of the pensionable earnings of the plan participant;

S = the years of service of the plan participant.

3 The maximum pension that a plan participant may receive under the Part 3 pension plan is 65% of the highest 3-year average of the plan participant's pensionable earnings.

4 A person is not entitled to a pension under this plan unless the person has at least 6 years of service and has made contributions under section 39 of this Act for that service.

5 A plan participant who meets the terms of the Part 3 pension plan is entitled to an unreduced pension

(a) at age 55, if the plan participant has at least 12 years of service, or

(b) at age 60, if the plan participant has less than 12 years of service.

6 A plan participant who

(a) is at least 50 years of age, and

(b) does not meet the conditions for an unreduced pension as set out in the Part 3 pension plan

may receive a reduced pension in an amount that is calculated by subtracting, from the unreduced amount, 3% for each year that the plan participant is less than the age, referred to in section 5 (a) or (b) of this schedule, that applies to the plan participant.

7 The Part 3 pension plan must include provisions comparable to the provisions of the Public Service Pension Plan rules that relate to the following:

(a) the normal form of pension and the pension plan options available at retirement;

(b) indexing of the pension;

(c) the post-retirement group benefits available to a retired member;

(d) entitlement to continuing accrual of service while a member is receiving group disability plan benefits.

8 The Part 3 pension plan must include provisions that entitle a plan participant, who is not entitled to receive a pension because of the requirement set out in section 4 of this schedule, to receive a refund of his or her contributions made under section 39 (1) or (5), plus the interest that has accrued on those contributions under section 40.

Transitional -- Legislative Assembly Management Committee Act

9 (1) The repeal of section 3 (1) (d.3) of the Legislative Assembly Management Committee Act by the Legislative Assembly Statutes Amendment Act, 2005 does not affect the funds that were paid before the repeal into the registered retirement savings plan established under that section.

(2) Government contributions are not permitted or required under section 3 (1) (d.3) of the Legislative Assembly Management Committee Act in respect of the service of a member of the Legislative Assembly on or after the date that section is repealed by the Legislative Assembly Statutes Amendment Act, 2005.

 
Consequential Amendments

 
Balanced Budget and Ministerial Accountability Act

10 Section 3 (1) of the Balanced Budget and Ministerial Accountability Act, S.B.C. 2001, c. 28, is amended by striking out "section 4 (6) to (8)" and substituting "section 4".

 
Constitution Act

11 Section 26 (1) (a) of the Constitution Act, R.S.B.C. 1996, c. 66, is repealed and the following substituted:

(a) if the money accepted by a member of the Legislative Assembly is

(i) the basic compensation or Capital City allowance under section 3 or 3.1 of the Legislative Assembly Management Committee Act, or

(ii) the salary payable under section 4 of the Legislative Assembly Allowances and Pension Act.

 
Financial Administration Act

12 Section 1 of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended in paragraph (a) of the definition of "pension fund" by adding "Part 2 or Part 3 of" after "established under".

Commencement

13 The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:

Item Column 1
Provisions of Act
Column 2
Commencement
Anything not elsewhere covered by this table The date of Royal Assent
Section 1 (a) and (b) April 1, 2006
Section 1 (c) and (d) January 1, 2006
Section 1 (e) April 1, 2006
Section 2 April 1, 2006
Section 3 (a) and (b) January 1, 2006
Section 3 (c) April 1, 2006
Section 3 (d) January 1, 2006
Sections 4 to 5 April 1, 2006
10  Sections 6 to 9 January 1, 2006
11  Sections 10 and 11 April 1, 2006
12  Section 12 January 1, 2006

 
Explanatory Notes

Legislative Assembly Management Committee Act

SECTION 1: [Legislative Assembly Management Committee Act, section 3]

SECTION 2: [Legislative Assembly Management Committee Act, section 3.1]

 
Legislative Assembly Allowances and Pension Act

SECTION 3: [Legislative Assembly Allowances and Pension Act, section 1] clarifies a reference and states that certain definitions in the section do not apply to the new Part 3.<

SECTION 4: [Legislative Assembly Allowances and Pension Act, section 4] sets by statute the salaries to be paid to members holding listed positions in the government, Legislative Assembly and party caucuses, and provides a mechanism for annual adjustments to those salaries.

SECTION 5: [Legislative Assembly Allowances and Pension Act, section 8] provides that both the chair and deputy chair of committees of the Legislative Assembly may be reimbursed for expenses.

SECTION 6: [Legislative Assembly Allowances and Pension Act, Part 2 heading] is consequential to enactment of the Part 3 pension plan by this Bill.<

SECTION 7: [Legislative Assembly Allowances and Pension Act, Part 3] establishes a new defined benefit pension scheme for plan participants (defined as current members of the Legislative Assembly and, in addition, former members who meet plan requirements):

SECTION 8: [Legislative Assembly Allowances and Pension Act, Schedule] adds a Schedule to the Act setting out the principles on which the Part 3 pension plan must be based.

SECTION 9: [Transitional -- Legislative Assembly Management Committee Act] clarifies that amendments made by this Bill do not affect funds paid into the voluntary group RRSP plan for members of the Legislative Assembly, but that government contributions to that plan must cease as of January 1, 2006.

 
Balanced Budget and Ministerial Accountability Act

SECTION 10: [Balanced Budget and Ministerial Accountability Act, section 3] corrects a cross-reference as a result of changes to section 4 of the Legislative Assembly Allowances and Pension Act made by this Bill.

 
Constitution Act

SECTION 11: [Constitution Act, section 26] corrects cross-references as a result of changes to provisions of the 2 Acts amended by this Bill.

 
Financial Administration Act

SECTION 12: [Financial Administration Act, section 1] is consequential to the addition of the Part 3 pension plan to the Legislative Assembly Allowances and Pension Act by this Bill.


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