SNL1994 CHAPTER P-4.1 - PENSION CONTRIBUTIONS REDUCTION ACT

SNL1994 CHAPTER P-4.1 PENSION CONTRIBUTIONS REDUCTION ACT Amended: 1995 c13 s11; 1995 c24 s7 CHAPTER P-4.1 AN ACT RESPECTING REDUCTIONS OF PENSION CONTRIBUTIONS BY EMPLOYERS IN THE PUBLIC SECTOR (Assented to December 16, 1994) Analysis 1. Short title GOVERNMENT MONEY PURCHASE PENSION PLAN ACT 2. S.4 Amdt. Deduction amounts PUBLIC SERVICE PENSIONS ACT, 1991 3. S.6 Amdt. Deductions paid to fund S.18 Amdt. Calculation of pension S.33 Amdt. Regulations generally GENERAL 4. Collective agreements overridden 5. When sections apply 6. Amounts to be remitted to Crown 7. Payments out of fund 8. When sections apply Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This Act may be cited as the Pension Contributions Reduction Act. 1994 cP-4.1 s1 GOVERNMENT MONEY PURCHASE PENSION PLAN ACT Back to Top RSN1990 cG-6 2. (1) Section 4 of the Government Money Purchase Pension Plan Act is amended by adding immediately after subsection (3) the following: (4) The government of the province may reduce its contribution under subsection (2), either for all its employees or for a group of its employees, by an amount that the Lieutenant-Governor in Council prescribes, but the amount of the reduction shall not exceed 1.05% of the earnings of the government's employees to whom the reduction applies. (5) A participating employer that is not the government of the province shall, where directed to do so by order of the Lieutenant-Governor in Council, reduce the participating employer's contribution under subsection (2) (a) either for all its employees or for a group of its employees; and (b) by an amount, which shall not exceed 1.05% of the earnings of the employer's employees to whom the order applies, as directed by the order. 1994 cP-4.1 s2 PUBLIC SERVICE PENSIONS ACT, 1991 Back to Top 1991 c.12 as amended 3. (1) Section 6 of the Public Service Pensions Act, 1991 is amended by adding immediately after subsection (4) the following: (5) Notwithstanding subsection (2) or (3), the government of the province may reduce the contribution under subsection (2) or (3), either for all its employees or for a group of its employees, by an amount that the Lieutenant-Governor in Council may prescribe, but the amount of the reduction shall not exceed 1.05% of the salaries of the government's employees affected by the reduction. (6) An employer that is not the government of the province shall, where directed to do so by order of the Lieutenant-Governor in Council, reduce the participating employer's contribution under subsection (2) (a) either for all its employees or for a group of its employees; and (b) by an amount, which shall not exceed 1.05% of the salaries of the employer's employees to whom the order applies, as directed by the order. (7) Where the contribution of the government of the province or another employer to whom this Act applies is reduced under subsection (5) or (6), an employee may elect to contribute an amount, in addition to the amount which he or she is required to contribute under section 5, to be calculated in accordance with the terms and conditions which the Lieutenant-Governor in Council may prescribe by regulation, which would place the employee in the position he or she would have been in respecting an award of pension if the government of the province, or another employer to whom this Act applies, had not reduced its contribution under subsection (5) or (6). (2) Section 18 of the Act is amended by adding immediately after subsection (6) the following: (7) Notwithstanding subsection (1), where the contribution to the pension plan of the government of the province or another employer to whom this Act applies is reduced under subsection 6(5) or (6) and an employee affected by the reduction does not make a compensating contribution under subsection 6(7), the formula set out in subsection (1) respecting the calculation of an award of pension shall be adjusted to reduce the employee's award of pension proportionately. (3) Paragraph 33(1)(g) of the Act is amended by adding immediately before the figure "8" the figure and comma "6,". 1994 cP-4.1 s3 GENERAL Back to Top Collective agreements overridden 4. (1) Where this Act conflicts with a collective agreement or another contractual arrangement, this Act shall apply. (2) The operation of this Act does not give rise to a cause of action and a court shall not make a determination or award for an injury suffered as a result of the operation of this Act. 1994 cP-4.1 s4 Back to Top When sections apply 5. This Act is considered to have come into force on April 1, 1994 and, except for subsection 3(3) and section 4, applies to the period April 1, 1994 to March 31, 1996 only. 1994 cP-4.1 s5 Back to Top Amounts to be remitted to Crown 6. Where an employer reduces its contributions to a pension plan as provided for by An Act To Amend The Government Money Purchase Pension Plan Act, The Public Service Pensions Act, The Teachers' Pensions Act, The Uniformed Services Pensions Act, 1991 and The Memorial University Pensions Act or this Act, the amount by which the reduced contribution differs from the amount that the employer would otherwise have contributed to the pension plan shall be remitted to the Crown as directed by the Lieutenant-Governor in Council. 1994 cP-4.1 s6 Back to Top Payments out of fund 7. Notwithstanding section 11 of the Pensions Funding Act, amounts remitted to the Crown under section 6 and deposited shall be paid out as directed by the Minister of Finance. 1994 cP-4.1 s7 ; 1995 c13 s11 Back to Top When sections apply 8. Sections 6 and 7 are considered to have come into force on April 1, 1993 . 1994 cP-4.1 s8 ©Earl G. Tucker, Queen's Printer