Members of the Legislative Assembly Pension Plan Regulation

Members of the Legislative Assembly Pension Plan Regulation, M.R. 226/93 The Legislative Assembly Act , C.C.S.M. c. L110 Regulation 226/93 Registered December 17, 1993 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Date of becoming and ceasing to be a member 3 Entitlement to pension 4 Calculation of pension 5 Cost of living increases in pension 6 Discontinuance of and re-entitlement to pension 7 Application to contribute 8 Payment of contributions 9 Deferred pensions 10 Refund of contributions 11 Death of contributor before pension commences 12 Death of contributor after pension commences 13 Death of surviving spouse or common-law partner 14 Applications 15 Monthly payment of pensions 16 Deduction of certain group insurance premiums 17 Administration of Plan 18 Division of pension benefits on break-up 19 Former member enters new relationship 20 Spouse or common-law partner enters new relationship 21 Effect of division on qualifying service 22 Reduction in credit on division of assets 23 Coming into force Definitions 1 In this regulation, "Act" means The Legislative Assembly Act ; (« Loi ») "additional remuneration" , where used to refer to the additional remuneration of a member, means any remuneration, allowance or salary received by the member (a) as a member of the Executive council, (b) as the leader of the official opposition or the leader of any other recognized opposition party, (c) as a member of a Crown agency or of the board of directors or governing board of a Crown agency, (d) as the Speaker or Deputy Speaker or the chairman or deputy chairman of a committee of the assembly, (e) as the member recognized by the Speaker who is occupying the position of government whip, house leader of the official opposition or opposition whip, or (f) as a legislative assistant, but does not include any allowance or remuneration paid to the member under clause 53(1)⁠(b) or section 54, 58, 58.1, 59, 60 or 67 of the Act; (« rémunération supplémentaire ») "administrator" means the Civil Service Superannuation Board; (« administrateur ») "annual indemnity" means the amount paid to a member in any numerical year under clause 53(1)⁠(a) of the Act as increased in accordance with subsection 53(3) of the Act; (« indemnité annuelle ») "assembly" means the Legislative Assembly; (« Assemblée ») "contribution" means a contribution made by a contributor under the Plan; (« cotisation ») "contributor" means a member who becomes a contributor under the Plan; (« cotisant ») "eligible survivor" , where used in respect of a deceased contributor, means the person who is the child of the deceased contributor, is unmarried and is either (a) under the age of 18 years, or (b) between the ages of 18 years and 25 years and is in full time attendance in an educational institution that is considered acceptable by the minister; (« survivant admissible ») "indemnity" means any amount payable to a member under clause 53(1)⁠(a) of the Act as increased in accordance with subsection 53(3) of the Act; (« indemnité ») "member" means a member of the Legislative Assembly; (« député ») "minister" means the member of the Executive Council charged with the administration of The Financial Administration Act ; (« ministre ») "pension" means a pension payable under the Plan; (« pension ») "pension benefit credit" means the value at a particular time of the pension benefits under the Plan to which a member has become entitled as of that time; (« crédit de prestations de pension ») "Plan" means the pension plan set out in this regulation; (« régime ») "service" means a period of serving as a member of the assembly; (« mandat ») "total remuneration" , where used to refer to the total remuneration of a member, means the total of the indemnities and additional remuneration paid to the member. (« rémunération totale ») M.R. 64/2002 ; 99/2004 Date of becoming and ceasing to be a member 2(1) For the purposes of the Plan, a member commences to serve in respect of a term in office as a member on the day of general polling in the election in which the member is declared elected under The Elections Act , regardless of whether or not the election is later declared to be void under The Controverted Elections Act . Ceasing to be member after dissolution 2(2) For the purposes of the Plan, a member does not cease to be a member by reason only of the dissolution of the assembly but a person who is a member of the assembly immediately before the dissolution thereof, if not declared elected under The Elections Act in the general election immediately following the dissolution of the assembly, ceases to be a member on the day immediately before the day of general polling at that general election. Entitlement to pension 3(1) A person who (a) has served as a member of not less than three Legislatures or for not less than eight years; (b) has contributed under the Plan in respect of annual indemnities and additional remuneration paid to the person in respect of all the person's service in not less than three Legislatures or all the person's service in not less than eight years; (c) has reached the age of 55 years; and (d) has ceased to be member; is eligible to receive a pension under the Plan. Effect of suspension 3(2) For the purposes of determining whether a member is eligible for a pension, the period of any suspension served by the member under The Legislative Assembly and Executive Council Conflict of Interest Act shall not be included in the member's service but no suspension or disqualification from office of a member under that Act shall otherwise affect the member's eligibility for a pension. Calculation of pension 4(1) The minister shall pay to each person eligible to receive a pension under section 3 a pension calculated in accordance with the following formula: P = Y/12 × .02 × A In this formula, P is the monthly pension to be calculated under this section; Y is the number of years of service of the person as a member during which contributions were made under the Plan expressed in years and fractions of years in decimals to three decimal places; A is the average of the annual indemnities and additional remuneration the person received for the last five years served as a member or, where the person served as a member for less than five years, for the years served as a member. Maximum pension 4(2) The pension calculated for a person under subsection (1) shall not exceed 70% of the average of the annual indemnities and additional remuneration for the last five years the person served as a member. M.R. 64/2002 Cost of living increases in pension 5 Where a pension is payable to a person in a numerical year (in this section referred to as "the pension year" ), if (a) the person was paid a pension in the numerical year immediately before the pension year; and (b) there was an increase in the Consumer Price Index for Canada between December 31 of the second numerical year before the pension year and December 31 of the numerical year immediately before the pension year; the monthly pension payable to the person shall be increased, as of April 1 of the pension year, in accordance with the following formula: N = (P × C)/D In this formula, N is the new monthly pension to be payable to the person after the increase in the pension is effective; P is the monthly pension payable to the person in the December immediately preceding the pension year; C is the Consumer Price Index for Canada as of December 31 in the numerical year next preceding the pension year; D is the Consumer Price Index for Canada as of December 31 in the second numerical year preceding the pension year. Discontinuance of and re-entitlement to pension 6 Where a person who is receiving a pension under the Plan again becomes a member, the payment of the pension shall be discontinued and, upon again ceasing to be a member, the person is entitled to a pension calculated as provided in the Plan in respect of the person's total service as a member with respect to which contributions were made. Application to contribute 7(1) A member may, at any time while a member, apply to become a contributor in respect of the member's total remuneration. Effective date of application 7(2) Subject to subsection (3), a member becomes a contributor on the day on which an application under subsection (1) is submitted to the administrator. Retroactive application in first year 7(3) Where, within 12 months after the day of general polling in the election at which a member was elected for the term of office during which an application under subsection (1) is made, the member applies to become a contributor in respect of total remuneration, the application may be effective retroactively to such date, not earlier than the day of general polling at the election, as the application may specify and, in that case, the member becomes a contributor on the day so specified and shall make contributions in respect of the total remuneration retroactive to that date. Retroactive contributions 7(4) Where a member applies to become a contributor in respect of the total remuneration received prior to the date on which the application is made, the amount of the contributions payable in respect of the total remuneration received prior to the date on which the application is made shall be paid together with interest at the rate of 8% per year calculated from the date on which the contributions would have been made if the contributions had been deducted from the total remuneration at the time that the total remuneration was paid. Payment of contributions 8(1) Subject to subsection (3), each contributor shall contribute 7% of the total remuneration received after the effective date of the application to become a contributor. Contributions to be deducted 8(2) Contributions required to be made under the Plan in respect of any part of the total remuneration of a contributor paid from the Consolidated Fund or by a Crown agency shall be deducted from the total remuneration paid to the contributor. Termination of contributions 8(3) Where the years of service that a member has accumulated for the purposes of the formula set out in subsection 4(1) are sufficient to provide the maximum pension to the member as restricted by subsection 4(2), the member is not required to make any further contributions under the Plan. Deferred pensions 9(1) A contributor who ceases to be a member, after contributing under the Plan in respect of total remuneration paid in respect of all the contributor's service in not less than three Legislatures or not less than eight years but before reaching the age of 55 years, is entitled to a deferred pension calculated under the Plan that becomes payable commencing on the first day of the first month after the day on which the contributor reaches the age of 55 years. Pension on early retirement 9(2) Where a pension under the Plan is to commence being paid before the member or former member, as the case may be, reaches the age of 60 years, the monthly pension payment computed in accordance with section 4 shall be reduced by .25% for each full month beginning with the month in which the pension is to commence being paid up to and including the month in which the member or former member reaches or would reach the age of 60 years. Adjustment of deferred pension 9(3) A deferred pension to which a person is entitled under subsection (1) shall, upon the pension becoming payable, be increased by any increases that would have been granted under section 5 between the date on which the person ceased to be a member and the month when the pension becomes payable as though the pension had been payable during that period. Refund of contributions 10(1) A contributor who ceases to be a member before becoming entitled to a deferred pension under section 9 may apply for and receive a refund of all contributions, and the minister shall pay to any member so applying all contributions with interest at the rate of 3% per year compounded yearly and calculated in respect of the period between the days on which the contributions to be refunded were made and the date the application is made. Remittance of refund 10(2) A person who has received a refund of contributions under subsection (1) and again becomes a member may apply to become a contributor again and, upon so applying, may remit to the minister, during a period not exceeding 24 months from the date of again becoming a member, the amount of the refund together with interest at the rate of 8% per year compounded yearly and calculated from the date the refund was received to the date the remittance is made. Refunded contributions not remitted 10(3) A contributor who has received a refund of contributions under subsection (1) and has not remitted the refund under subsection (2) is conclusively deemed not to have made the contributions. Refund after 35 years as M.L.A. 10(4) Where, at any time, a member has contributed in respect of 35 years of actual membership in the assembly and has, in addition, contributed in respect of total remuneration paid, the minister shall refund to the member the aggregate of the contributions made under the Plan in respect of total remuneration paid together with interest calculated in accordance with and at the rate set out in subsection (1). Contributions to cease 10(5) Where a member has contributed to the Plan for 35 years of membership in the assembly in accordance with subsection (4), that member shall no longer contribute or be required to contribute to the Plan. Death of contributor before pension commences 11(1) Where a contributor dies before beginning to receive a pension and is not survived by a spouse, common-law partner or eligible survivor, the executor of the will or the administrator of the estate of the deceased may apply for and receive a refund of contributions, and the minister shall pay to the executor or administrator the total of the contributions made by the contributor together with interest at the rate of 3% per year compounded yearly and calculated in respect of the period between the date on which the contributions to be refunded were made and the date on which the application is made. Refund on death 11(2) Where a contributor dies before contributing under the Plan in respect of total remuneration paid in respect of all the contributor's service in not less than three Legislatures or not less than eight years and is survived by a spouse or common-law partner, the minister shall pay to the spouse or common-law partner the total of the contributions made by the contributor together with interest at the rate of 3% per year compounded yearly and calculated in respect of the period between the date on which the contributions to be refunded were made and the date of the death of the contributor. Pension to surviving spouse or common-law partner 11(3) Where a contributor dies after contributing under the Plan in respect of total remuneration paid in respect of all the contributor's service in not less than three Legislatures or not less than eight years and before beginning to receive a pension and is survived by a spouse or common-law partner, the minister shall pay to the spouse or common-law partner a monthly pension commencing on the first day of the first month following the death of the contributor equal to 60% of the monthly pension that would have been paid to the contributor if the contributor had ceased to be a member on the date of death, had lived and had been eligible to receive a pension on the date of death. Pension to eligible survivors 11(4) Where a contributor, who has contributed under the Plan in respect of total remuneration paid in respect of all the contributor's service in not less than three Legislatures or not less than eight years, dies before beginning to receive a pension and is survived by eligible survivors but not by a spouse or common-law partner, the minister shall pay to each eligible survivor, for as long as the eligible survivor remains an eligible survivor within the meaning of the definition of that expression in section 1, a monthly pension commencing on the first day of the first month following the death the amount of which, at any time, equals the monthly pension that would have been paid to the spouse or common-law partner of the contributor if the contributor had been survived by a spouse or common-law partner. M.R. 64/2002 Death of contributor after pension commences 12(1) When a contributor dies after beginning to receive a pension but before an amount equal to or more than the total contributions together with interest calculated as provided in subsection 10(1) have been paid out in respect of the pension, and the contributor is not survived by a spouse, common-law partner or eligible survivors, the executor of the will or the administrator of the estate of the deceased may apply for and receive a refund of the contributions, and the minister shall pay to the executor or administrator the total of the contributions made by the contributor with interest at the rate of 3% per year compounded yearly and calculated in respect of the period between the date on which the contributions to be refunded were made and the date of the death less the total of all amounts paid by way of pension to the contributor with interest at the rate of 3% per year compounded yearly and calculated in respect of the period between the date on which the monthly pension was paid and the date of the death. Pension to spouse or common-law partner after death of pensioner 12(2) Where a contributor dies after beginning to receive a monthly pension and is survived by a spouse or common-law partner, the minister shall pay to the spouse or common-law partner a monthly pension, commencing on the first day of the first month following the death of the contributor, equal to 60% of the monthly pension that was being paid to the contributor prior to the death. Allowance to eligible survivor after death of pensioner 12(3) Where a contributor dies after beginning to receive a monthly pension and is survived by eligible survivors but not by a spouse or common-law partner, the minister shall pay to each eligible survivor, for as long as the eligible survivor remains an eligible survivor within the meaning of the definition of that expression in section 1, a monthly pension commencing on the first day of the first month following the death the amount of which, at any time, equals the monthly pension that would have been paid to the spouse or common-law partner of the contributor if the contributor had been survived by a spouse or common-law partner. M.R. 64/2002 Death of surviving spouse or common-law partner 13(1) Where the spouse or common-law partner of a contributor receiving a pension under subsection 11(3) or 12(2) dies before an amount equal to or more than the total of the contributions of the contributor together with interest calculated as provided under subsection 10(1) have been paid out by way of monthly pension payments to the contributor and monthly pension payments to the spouse or common-law partner, and the spouse or common-law partner is not survived by an eligible survivor of the contributor, the executor of the will of the spouse or common-law partner or the administrator of the estate of the spouse or common-law partner may apply for and receive a refund of the balance of the contributions, and the minister shall pay to the executor or administrator an amount equal to the total of the contributions made by the contributor, with interest at the rate of 3% per year compounded yearly and calculated in respect of the period between the date on which the contributions to be refunded were made and the date of the death of the spouse or common-law partner less the total of all amounts paid by way of pension to the contributor and to the spouse or common-law partner with interest at the rate of 3% per year compounded yearly and calculated in respect of the period between the date on which the monthly pension payments were made and the date of the death of the spouse or common-law partner. Allowance to eligible survivor on death of spouse or common-law partner 13(2) Where the surviving spouse or common-law partner of a deceased contributor to whom a pension is being paid under subsection 11(3) or 12(2) dies and is survived by eligible survivors of the deceased contributor, the minister shall pay to each eligible survivor, for as long as the eligible survivor remains an eligible survivor within the meaning of the definition of that expression in section 1, a monthly pension commencing on the first day of the first month following the death of the spouse or common-law partner the amount of which, at any time, equals the monthly pension that would have been paid to the spouse or common-law partner of the contributor if the spouse or common-law partner had not died. M.R. 64/2002 Applications 14 Every application required under the Plan shall be made in writing to the administrator and signed by the person making it. Monthly payment of pensions 15 All pensions payable under the Plan shall be payable in monthly instalments. Deduction of certain group insurance premiums 16 Where a person to whom a pension is payable is liable for the payment of a premium for benefits under a group insurance scheme or plan covering members or persons to whom pensions are payable applies to the administrator for the purpose, the minister may deduct from the payments of the pension the amounts of the premium and remit the amounts so deducted to the person to whom the premium is payable. Administration of Plan 17(1) The Plan shall be administered by the Civil Service Superannuation Board. Remuneration of administrator 17(2) The Lieutenant Governor in Council may provide for payment out of the Consolidated Fund to the administrator of such amount as the Lieutenant Governor in Council may fix to reimburse the administrator for the costs of administering the Plan. Division of pension benefits on break-up 18(1) Subject to subsections (3) and (6), where (a) pursuant to an order of the Court of King's Bench made under The Family Property Act , family assets of a member are required to be divided between the member and the member's spouse or common-law partner; or (b) pursuant to a written agreement between a member and his or her spouse or common-law partner, their family assets are divided between them; or (c) [repealed] M.R. 99/2004; the pension benefit credit of the member under the Plan shall be divided between the member and the spouse or common-law partner, and the division shall be made in the manner provided in the Plan and directed by the administrator notwithstanding that the order or agreement, as the case may be, may require the division to be made in a different manner. 18(2) [Repealed] M.R. 99/2004 Married and common-law: opting out 18(3) Where subsection (1) becomes applicable in the case of any member, it ceases to be applicable if both the member and the member's spouse or common-law partner, after each has received (a) independent legal advice; and (b) a statement from the administrator showing the commuted value of the pension benefit credit, or the amount of the pension payments, to which the spouse or common-law partner would be entitled if the subsection remained applicable; enter into a written agreement to the effect that the subsection shall not apply. 18(4) [Repealed] M.R. 99/2004 Filing of agreement 18(5) An agreement under subsection (3) shall be filed with the administrator. Transfer of pension benefit credit 18(6) Any pension benefit credit to which the spouse or common-law partner or former spouse or common-law partner of a member becomes entitled under subsection (1) shall be transferred by the administrator to such locked-in registered retirement savings plan or locked-in registered pension plan as the spouse or common-law partner or former spouse or common-law partner may designate, in the name of the spouse or common-law partner or former spouse or common-law partner. M.R. 64/2002 ; 99/2004 Former member enters new relationship 19 Where the former spouse or common-law partner of a former member is receiving pension payments under the Plan consequent upon the break-up of the former member's marriage or the termination of the former member's common-law relationship, and the former member marries or enters into a new common-law relationship and subsequently dies, the surviving former spouse or common-law partner shall continue to receive 60% of those payments. M.R. 64/2002 Spouse or common-law partner enters new relationship 20 A pension or pension benefit payable to the surviving spouse or common-law partner of a member or former member who dies does not terminate in the event of the marriage or remarriage of, or the entry into a new common-law relationship by, the surviving spouse or common-law partner. M.R. 64/2002 Effect of division on qualifying service 21 The transfer of a portion of a member's pension benefit credit to the member's spouse or common-law partner or former spouse or common-law partner under the Plan does not reduce the period of qualifying service that the member has already accumulated under and for the purposes of the Plan. M.R. 64/2002 Reduction in credit on division of assets 22 Where the pension benefit credit of a member has been divided in the manner provided in the Plan and the member subsequently becomes entitled to the payment of a pension, the pension shall be reduced by one-half of the pension that accrued during the period on the basis of which the division was made and that would have been payable to the member upon becoming eligible to receive a pension under the Plan. Coming into force 23 This regulation is retroactive and is deemed to have come into force on January 1, 1992.