Acts and Regulations

M-7.1 - Members’ Pension Act

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Document at 12 February 2013
CHAPTER M-7.1
Members’ Pension Act
Assented to December 10, 1993
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
I
INTERPRETATION AND APPLICATION
Definitions and interpretation
1(1)In this Act
“annual pension” means a pension described in section 10;(pension annuelle)
“benefit” means an annual pension, a minister’s pension, a surviving spouse’s pension, a surviving common-law partner’s pension or a children’s pension and includes a return of contributions;(prestation)
“child” means a child of a member or former member and includes a natural child, stepchild or adopted child;(enfant)
“children’s pension” means a pension described in section 14;(pension d’enfants)
“common-law partner” means(conjoint)
(a) in the case of the death of a member or former member, a person who, not being married to the member or former member, was cohabiting in a conjugal relationship with the member or former member at the time of death of the member or former member and was cohabiting in a conjugal relationship with the member or former member for a continuous period of at least 2 years immediately before the death of the member or former member, or
(b) in the case of a division of a benefit under section 20.1, a person who, not being married to a member, minister, former member or former minister, was cohabiting in a conjugal relationship with the member, minister, former member or former minister, as the case may be, for a continuous period of at least 2 years immediately before the date of the breakdown of their common-law partnership;
“common-law partnership” means the relationship between a member or former member and his or her common-law partner;(union de fait)
“indemnity” means the indemnity authorized to be paid to a member under subsection 25(1) of the Legislative Assembly Act, as adjusted from time to time under section 25 of that Act;(indemnité)
“interest” means interest calculated and credited at rates not less than the rates, and in accordance with the requirements, prescribed by regulation under the Pension Benefits Act;(intérêt)
“member” means a member of the Legislative Assembly;(député)
“Members’ Pension Account” means the account in the Consolidated Fund established under section 4;(compte de pension des députés)
“Minister” means the Minister of Finance and includes any person designated by the Minister to act on the Minister’s behalf;(Ministre)
“minister” means a member who is(ministre)
(a) a member of the Executive Council,
(b) the Speaker or a Deputy Speaker of the Legislative Assembly, and
(c) the Leader of the Opposition or a leader of any other registered political party in the Legislative Assembly;
“minister’s pension” means a pension described in section 11;(pension de ministre)
“pensionable service” means any period of service to the credit of a member or minister under this Act that may be used in calculating a benefit if the member or minister has received remuneration for such period in accordance with subparagraph 8503(3)(a)(i) of the Income Tax Regulations under the Income Tax Act (Canada), and, where applicable, includes any period of service to the credit of the member or minister under the Members Superannuation Act that may be used in calculating a benefit if the member or minister has received remuneration for such period in accordance with subparagraph 8503(3)(a)(i) of the Income Tax Regulations under the Income Tax Act (Canada);(service ouvrant droit à pension)
“return of contributions” means (remboursement de cotisations)
(a) a return of the amount paid by the member into the Members’ Pension Account under section 5, including the principal portion of any lump sum or instalments made under section 7, and
(b) a return of the amount, if any, credited to the Members’ Pension Account on behalf of the member under paragraph 3(3)(b);
“salary” means(traitement)
(a) the salary authorized to be paid to a minister under subsection 6(1) of the Executive Council Act, as adjusted from time to time under that Act,
(b) the salary authorized to be paid to the Premier in addition to the Premier’s salary as minister,
(c) the salary authorized to be paid under subsection 6(3) of the Executive Council Act, as adjusted from time to time under that Act, to a member of the Executive Council not in receipt of a salary under subsection 6(1) or (2) of that Act, and
(d) the salary authorized to be paid under the Legislative Assembly Act to the Speaker, a Deputy Speaker, the Leader of the Opposition and the leader of any other registered political party in the Legislative Assembly, but does not include any allowance or other amount paid to that person in respect of expenses;
“session” means a session of the Legislative Assembly;(session)
“spouse” Repealed: 2008, c.45, s.17
“surviving common-law partner’s pension” means a pension described in section 13.(pension de conjoint de fait survivant)
1(2)For the purposes of any provision of this Act in which reference is made to a person being, reaching or attaining a specified age or being under or over that age, that person shall be deemed to reach or have reached the specified age at the beginning of the calendar month following the calendar month in which he or she actually reached or will reach that age.
1998, c.35, s.1; 2000, c.7, s.1; 2001, c.5, s.1; 2007, c.30, s.25; 2008, c.45, s.17; 2011, c.20, s.14; 2012, c.39, s.88
Status as a common-law partner
1.01To establish that he or she is a common-law partner, a person shall provide the Minister with a statutory declaration accompanied by proof acceptable to the Minister.
2008, c.45, s.17
Determination of date of marriage or common-law partnership
1.1(1)Subject to subsections (2) and (3), for the purposes of this Act and the regulations, the date of marriage of a member or former member and his or her spouse is
(a) if they were married to each other, the date on which they were married,
(b) if they were parties to a voidable marriage, the date on which they were married, or
(c) if they were parties to a void marriage, the date on which they went through a form of marriage.
1.1(2)If, by reason of the operation of subsection (1), more than one date could be the date of marriage of 2 persons, the date of marriage of the 2 persons shall be deemed to be the earlier or earliest of those dates.
1.1(3)If a member or former member was cohabiting in a conjugal relationship with his or her spouse immediately before their marriage, the date of marriage shall be deemed to be the date on which they commenced to cohabit in a conjugal relationship.
1.1(4)For the purposes of this Act and the regulations, the date of common-law partnership of a member or former member and his or her common-law partner is the date on which they commenced to cohabit in a conjugal relationship.
1998, c.35, s.1; 2008, c.45, s.17
Deemed cohabitation where illness or mental or physical infirmity
1.2If a member or former member and a person with whom the member or former member was cohabiting in a conjugal relationship are no longer cohabiting by reason only of the illness or mental or physical infirmity of either of them, they shall be deemed to continue to be cohabiting in a conjugal relationship.
2008, c.45, s.17
Application of Act
2(1)This Act applies
(a) to members who were members on the commencement of this paragraph and who have elected, in accordance with section 3, to be subject to this Act,
(b) to members who first become members after the commencement of this paragraph,
(c) to former members who ceased to be members before the commencement of this paragraph and who again become members after the commencement of this paragraph,
(d) to members and former members referred to in paragraphs (a) to (c), in their capacity as minister, where the members or former members are or were ministers at any time during which they are or were members, and
(e) to the spouses, common-law partners and children of members and former members referred to in paragraphs (a) to (d).
2(2)This Act does not apply to members or former members to whom the Members Superannuation Act applies.
2008, c.45, s.17
One session credited per calendar year
2.1For the purposes of this Act, no member or minister shall be credited with more than one session per calendar year.
2000, c.1, s.1
Election of member to be subject to the Act
3(1)A person who is a member on the commencement of this subsection may elect, within the time specified in paragraph (2)(b), to be subject to this Act.
3(2)An election under subsection (1)
(a) shall be made in writing and shall be signed by the member,
(b) shall be forwarded to the Minister so that the Minister receives it at least ten days before the polling day of the first general provincial election after the commencement of this paragraph,
(c) is not effective until the Minister receives the election and unless the Minister receives the election within the time specified in paragraph (b), and
(d) is irrevocable.
3(3)Where a member referred to in subsection (1) elects, in accordance with this section, to be subject to this Act,
(a) this Act applies to the member as of the date the election becomes effective and the Members Superannuation Act ceases to apply,
(b) the contributions made by the member to the Members Superannuation Account under the Members Superannuation Act shall be credited on behalf of the member to the Members’ Pension Account, and
(c) any period of pensionable service to the credit of the member under the Members Superannuation Act shall be added to the member’s pensionable service for the purposes of this Act.
II
REGISTERED PENSION PLAN
Members’ Pension Account
4There is hereby established an account in the Consolidated Fund to be known as the Members’ Pension Account.
Contribution of members to the Members’ Pension Account
5(1)A member shall contribute to the Members’ Pension Account an amount equal to the lesser of
(a) the amount of the annual maximum deductible contributions to a registered pension plan, as that amount is established under the Income Tax Act (Canada), and
(b) 9% of the member’s indemnity, and if the member is a minister, 9% of the minister’s salary.
5(1.1)Subject to subsection (3), a member shall continue to contribute to the Members’ Pension Account in accordance with subsection (1) even if the member has reached the total of the amount of the annual pension and the amount of the supplementary allowance or the reduced supplementary allowance established under section 10.1.
5(1.2)Subject to subsection (3), a minister shall continue to contribute to the Members’ Pension Account in accordance with subsection (1) even if the minister has reached the total of the amount of the minister’s pension and the amount of the supplementary allowance or the reduced supplementary allowance established under section 11.1.
5(2)A member who receives only a portion of an indemnity under the Legislative Assembly Act shall be deemed, for the purposes of this Act, to have received the entire indemnity for the session to which the indemnity relates, and shall contribute under subsection (1) the amount the member would be required to contribute if he or she had received the entire indemnity.
5(2.1)For the purposes of subsection (2), the period of time for which the portion of the indemnity was paid must be a qualifying period in accordance with paragraph 8507(3)(a) of the Income Tax Regulations under the Income Tax Act (Canada).
5(3)Despite subsection (1), a member shall not continue to contribute to the Members’ Pension Account or acquire pensionable service after the last day of the year in which the member attains the age prescribed in subparagraph 8502(e)(i) of the Income Tax Regulations under the Income Tax Act (Canada), and any benefit to which the member is entitled under this Part shall commence to be paid not later than that date.
2000, c.7, s.2; 2011, c.35, s.1
Reinstatement of pensionable service
6(1)A member who has ceased to be a member, has received a return of contributions and again becomes a member may elect, within one year after again becoming a member, to reinstate the pensionable service in respect of which the member received the return of contributions if the member agrees to pay an amount equal to that return of contributions together with interest from the time of payment of the return of contributions until the time of the election.
6(2)When a member who has ceased to be a member and is entitled to an annual pension again becomes a member, the member’s entitlement to the annual pension shall cease and the pensionable service in respect of which the annual pension was authorized shall be added to the member’s pensionable service as a member.
6(3)A member who has ceased to be a member, has received a return of contributions under the Members Superannuation Act and again becomes a member may elect, within one year after again becoming a member, to reinstate the pensionable service in respect of which the member received the return of contributions, if the member agrees to pay an amount equal to that return of contributions together with interest from the time of payment of the return of contributions until the time of the election.
6(4)When a member who has ceased to be a member and is entitled to an annual pension under the Members Superannuation Act again becomes a member, the member’s entitlement to the annual pension under the Members Superannuation Act shall cease and the pensionable service in respect of which the annual pension was authorized shall be added to the member’s pensionable service as a member under this Act.
2000, c.7, s.3; 2001, c.5, s.1
Election and payment
7(1)An election under subsection 6(1) or (3)
(a) shall be made in writing and signed by the member,
(b) shall be forwarded to the Minister within the time specified in subsection 6(1) or (3), and
(c) is irrevocable.
7(2)An amount required to be paid under subsection 6(1) or (3) shall be paid by the member into the Members’ Pension Account
(a) in a lump sum at the time of making the election, or
(b) in instalments together with interest, over a period determined by the Minister, which period shall not exceed the period of pensionable service in respect of which the election is made.
7(3)Subject to subsection (4), where paragraph (2)(b) applies and the member ceases to be a member before all instalments have been paid, the unpaid instalments shall be withheld from any benefit payable under this Part.
7(4)Where the benefit referred to in subsection (3) is payable to the surviving spouse, surviving common-law partner or children of a member, the unpaid instalments shall not be withheld from the benefit unless the surviving spouse, surviving common-law partner or children, as the case may be, desire that the pensionable service represented by the unpaid instalments be used in calculating the benefit.
2000, c.7, s.4; 2008, c.45, s.17
Payment to Members’ Pension Account out of the Consolidated Fund
8(1)At the end of each fiscal year there shall be credited to the Members’ Pension Account out of the Consolidated Fund an amount equal to the total of all the contributions made by members and ministers under section 5 during that fiscal year, together with interest.
8(1.1)An amount referred to in subsection (1) shall not exceed eligible contributions as provided for in subsection 147.2(2) of the Income Tax Act (Canada).
8(2)Notwithstanding subsection (1), if at any time there is an actuarial surplus in the Members’ Pension Account exceeding the amount permitted under the Income Tax Act (Canada), no additional amount shall be credited to the Members’ Pension Account under subsection (1).
8(3)If at any time the Members’ Pension Account is insufficient to make all payments required to be made under this Act, the Minister shall, at the request of the Board of Management, pay out of the Consolidated Fund into the Members’ Pension Account an amount sufficient to enable such payments to be made.
2000, c.7, s.5
Return of contributions
9(1)A member who has to his or her credit fewer than eight sessions of pensionable service is entitled, upon ceasing to be a member, to a return of contributions, together with interest.
9(2)On the death of a member who had to his or her credit fewer than 8 sessions of pensionable service, a return of contributions, together with interest, shall be paid
(a) to the member’s surviving spouse if he or she can be found and would have been entitled to receive the surviving spouse’s pension under section 13 at the time of the member’s death had the member had to his or her credit 8 or more sessions of pensionable service,
(b) if no person is paid under paragraph (a), to the member’s surviving common-law partner if he or she can be found and would have been entitled to receive the surviving common-law partner’s pension under section 13 at the time of the member’s death had the member had to his or her credit 8 or more sessions of pensionable service,
(c) if no person is paid under paragraph (a) or (b), in equal shares to the member’s children who can be found, or
(d) if no person is paid under paragraph (a), (b) or (c), to the member’s estate.
9(2.1)Repealed: 2008, c.45, s.17
9(3)Repealed: 2000, c.7, s.6
1998, c.35, s.1; 2000, c.7, s.6; 2008, c.45, s.17
Annual pension
10(1)A member who has to his or her credit eight or more sessions of pensionable service and ceases to be a member is entitled, upon attaining sixty years of age or at such later time at which the member ceases to be a member, to an annual pension in the amount determined under subsection (2).
10(2)The amount of the annual pension payable to a person under subsection (1) shall be determined by multiplying two per cent of the average indemnity received by the person as a member, during or in respect of the three successive sessions during or for which his or her indemnity was the highest, by the number of sessions of pensionable service to his or her credit as a member.
10(3)Despite subsection (1), a member who has to his or her credit eight or more sessions of pensionable service and who ceased to be a member before April 1, 2008, is entitled, before attaining sixty years of age, to an annual pension in the amount determined under subsection (4), if he or she elects to receive an annual pension in that amount.
10(3.1)Despite subsection (1), a member who has to his or her credit eight or more sessions of pensionable service and who ceases to be a member on or after April 1, 2008, is entitled, on or after attaining fifty-five years of age and before attaining sixty years of age, to an annual pension in the amount determined under subsection (4), if he or she elects to receive an annual pension in that amount.
10(4)The amount of the annual pension payable to a person under subsection (3) or (3.1) shall be the amount that would be payable under subsection (1) if the annual pension had not commenced until the person had attained sixty years of age, reduced by five-twelfths of one per cent for each month by which the commencement date of the annual pension precedes the person’s sixtieth birthday.
10(5)An election under subsection (3) or (3.1)
(a) shall be made in writing and signed by the member,
(b) shall be forwarded to the Minister, and
(c) is irrevocable.
10(6)An annual pension under subsection (3) or (3.1) is payable in lieu of an annual pension under subsection (1) and a person who elects to receive an annual pension under subsection (3) or (3.1) is not entitled to an annual pension under subsection (1) upon attaining sixty years of age or at any later time.
2011, c.35, s.2
Maximum annual pension and supplementary allowance
10.1Despite anything else in this Part or in Part III, the amount of the annual pension to which a person who ceases to be a member on or after April 1, 2008, is entitled under section 10, when combined with the amount of the supplementary allowance or the reduced supplementary allowance to which the person is entitled shall not exceed 75% of the average indemnity received by the person as a member during or in respect of the three successive sessions during or for which his or her indemnity was the highest.
2011, c.35, s.3
Minister’s pension
11(1)In this section
“average salary” means the average annual salary received by a minister during the three successive years during which his or her salary was highest, or, in the case of a minister having fewer than three years of pensionable service as a minister, the average annual salary received by him or her as a minister.
11(2)A person who is receiving or is entitled to receive an annual pension under subsection 10(1) and has to his or her credit at least six months of pensionable service as a minister is entitled, in addition to the annual pension, to a minister’s pension in the amount determined under subsection (3).
11(3)The amount of the minister’s pension payable to a person under subsection (2) shall be determined by multiplying two per cent of the person’s average salary as a minister by the number of years of pensionable service to his or her credit as a minister.
11(4)Despite subsection (2), a person who elects, in accordance with subsection 10(3) or (3.1), to receive an annual pension under subsection 10(3) or (3.1) and who has to his or her credit at least six months of pensionable service as a minister shall be deemed to have elected to receive, in addition to the annual pension, a minister’s pension in the amount determined under subsection (5).
11(5)The amount of the minister’s pension payable to a person under subsection (4) shall be the amount that would be payable under subsection (2) if the minister’s pension had not commenced until the person had attained sixty years of age, reduced by five-twelfths of one per cent for each month by which the commencement date of the minister’s pension precedes the person’s sixtieth birthday.
11(6)A minister’s pension under subsection (4) is payable in lieu of a minister’s pension under subsection (2) and a person deemed to have elected to receive a minister’s pension under subsection (4) is not entitled to a minister’s pension under subsection (2) upon attaining sixty years of age or at any later time.
2011, c.35, s.4
Maximum minister’s pension and supplementary allowance
11.1(1)In this section, “average salary” means average salary as defined in subsection 11(1).(traitement moyen)
11.1(2)Despite anything else in this Part or in Part III, the amount of the minister’s pension to which a person who ceases to be a member on or after April 1, 2008, is entitled under section 11, when combined with the amount of the supplementary allowance or the reduced supplementary allowance to which the person is entitled shall not exceed 75% of the average salary received by the person as a minister.
2011, c.35, s.5
Maximum benefit payable
12Notwithstanding sections 10 and 11, the total amount of the annual pension and, where applicable, the minister’s pension, payable in any year to a person under this Part, in respect of pensionable service after December 31, 1991, shall not exceed, in relation to each session of pensionable service to his or her credit, an amount equal to $1,722.22 as established by the Income Tax Act (Canada), or such other amount that is established as the defined benefit limit under that Act in its stead, for the calendar year in which the pension commences.
Surviving spouse’s pension or surviving common-law partner’s pension
13(1)Subject to subsections (1.1), (1.2), (1.3), (2), (4), (5) and (6) and 20.1(3) and (5), on the death of a person who at the time of his or her death
(a) was receiving an annual pension,
(b) was entitled to receive an annual pension suspended under subsection 18(2), or
(c) was a member who had to his or her credit eight or more sessions of pensionable service,
his or her surviving spouse or surviving common-law partner is entitled to receive immediately a surviving spouse’s pension or surviving common-law partner’s pension, as the case may be, equal to one-half the amount of the person’s annual pension calculated in accordance with subsection 10(2) and, where applicable, one-half of the amount of the minister’s pension calculated in accordance with subsection 11(3), regardless of the age of the person at his or her death.
13(1.1)Where a person described in subsection (1) dies within one year after the date of his or her marriage, no surviving spouse’s pension is payable to his or her surviving spouse unless the Minister considers it would be just and reasonable in the circumstances for the surviving spouse to be paid a surviving spouse’s pension.
13(1.2)Subsection (1.1) applies whether the marriage occurs before, on or after the commencement of this subsection.
13(1.3)For the purposes of subsection (1.1), the surviving spouse must show the Minister that the marriage was entered into in good faith.
13(2)A surviving spouse’s pension ceases to be payable on the death of that surviving spouse and a surviving common-law partner’s pension ceases to be payable on the death of that surviving common-law partner.
13(3)Repealed: 2007, c.50, s.1
13(4)Subject to subsections (6) and 20.1(3) and (5), the surviving spouse of a person described in subsection (1) is entitled to receive a surviving spouse’s pension, if otherwise eligible, and the surviving common-law partner of that person is not entitled to receive a surviving common-law partner’s pension if
(a) the surviving spouse was married to the person at the time of the person’s death, and
(b) the marriage of the surviving spouse and the person was not a void or voidable marriage.
13(5)The spouse or common-law partner of a person described in subsection (1) may enter into a written agreement with that person that waives his or her entitlement to receive a surviving spouse’s pension or surviving common-law partner’s pension, as the case may be.
13(6)A surviving spouse is not entitled to receive a surviving spouse’s pension and a surviving common-law partner is not entitled to receive a surviving common-law partner’s pension if there is
(a) a valid written agreement referred to in subsection (5), or
(b) a decree, order or judgment of a competent tribunal that bars the claim of the surviving spouse or surviving common-law partner.
1998, c.35, s.1; 2007, c.50, s.1; 2008, c.45, s.17
Children’s pension
14(1)Subject to subsections (2) and (3), if a person described in subsection 13(1) dies without leaving a surviving spouse or surviving common-law partner, or if a surviving spouse’s pension or surviving common-law partner’s pension is not payable or ceases to be payable under this Part, a children’s pension equal to the surviving spouse’s pension or surviving common-law partner’s pension that was being paid or could have been paid under section 13 shall be paid in equal shares to the children of that person who, at the time of that person’s death, are dependent on that person for support and who are
(a) under nineteen years of age and will not attain the age of nineteen in the calendar year that includes that time, or
(b) under twenty-five years of age and will not attain the age of twenty-five in the calendar year that includes that time and who are in full-time attendance at an educational institution.
14(2)For the purposes of subsection (1), a child who has attained 19 years of age and who at the time of death of the person described in subsection 13(1) is dependent on that person for support and is dependent on that person by reason of mental or physical infirmity, shall be deemed to be a child not having attained 19 years of age.
14(3)A children’s pension shall be paid to the person having custody and control of the child but where there is no such person it shall be paid to the child or to such other person as the Minister designates.
14(4)A children’s pension ceases to be payable
(a) in the case of a child described in paragraph (1)(a), when the child reaches the age of nineteen years,
(b) in the case of a child described in paragraph (1)(b), when the child reaches the age of twenty-five years or ceases to be in full-time attendance at an educational institution, whichever occurs earlier, or
(c) in the case of a child described in subsection (2), if the child ceases to have a mental or physical infirmity.
2000, c.7, s.7; 2008, c.45, s.17
Annual adjustment of pension - person who ceased to be a member before April 1, 2008
14.1(1)In this section
“Consumer Price Index” means the Consumer Price Index for Canada published under the authority of the Statistics Act (Canada);
“pension index” means for each year, the average of the Consumer Price Index for the twelve month period ending June 30 in the year preceding that year unless the average is less than 1.01 times the pension index for the preceding year, in which case the pension index for the year is the pension index for the preceding year.
14.1(1.1)This section applies to a pension paid in respect of a person who ceased to be a member before April 1, 2008.
14.1(2)Where a pension is paid under this Act to a person who first received the pension after March 31, 1997, the amount of that pension shall be adjusted as of the first day of each year, beginning on January 1, 2001, by multiplying the amount of the pension that would have been payable for that year if no adjustment had been made under this subsection with respect to that following year, by the ratio that the pension index for that year bears to the pension index for the preceding year or 1.06, whichever is the lesser.
14.1(3)Notwithstanding subsection (2), the first adjustment under subsection (2) shall be the amount determined by multiplying the increase, if any, that would otherwise be payable under subsection (2) by a fraction the denominator of which is 12 and the numerator of which is equal to the number of months following the month in which cessation of employment or death took place in the year preceding the year in which the first adjustment is made.
14.1(4)Notwithstanding subsection (2), any increase in the amount of pension payable under this Act by virtue of any adjustment made under subsection (2) relating to any period before January 1, 2001, shall be implemented
(a) so as to be effective January 1, 2001, and
(b) without any retroactive payment being made in respect of any period before January 1, 2001.
2001, c.5, s.1; 2011, c.35, s.6
Annual adjustment of pension - person who ceases to be a member on or after April 1, 2008
14.11(1)The following definitions apply in this section.
“Consumer Price Index” means Consumer Price Index as defined in subsection 14.1(1).(indice des prix à la consommation)
“pension index” means pension index as defined in subsection 14.1(1).(indice de pension)
14.11(2)This section applies to a pension paid in respect of a person who ceases to be a member on or after April 1, 2008.
14.11(3)If a pension is paid under this Act, the amount of the pension shall be adjusted as of the first day of each year, beginning on January 1, 2009, by multiplying the amount of the pension that would have been payable for that year if no adjustment had been made under this subsection with respect to that following year, by the ratio that the pension index for that year bears to the pension index for the preceding year or 1.05, whichever is the lesser.
14.11(4)Despite subsection (3), the first adjustment under subsection (3) shall be the amount determined by multiplying the increase, if any, that would otherwise be payable under subsection (3) by a fraction the denominator of which is 12 and the numerator of which is equal to the number of months following the month in which the person ceased to be a member in the year preceding the year in which the first adjustment is made.
2011, c.35, s.7
Annual adjustment of deferred pension - person who ceased to be a member before April 1, 2008
14.2(1)The following definitions apply in this section.
“Consumer Price Index” means Consumer Price Index as defined in subsection 14.1(1).(indice des prix à la consommation)
“pension index” means pension index as defined in subsection 14.1(1).(indice de pension)
14.2(1.1)This section applies to a deferred pension in respect of a person who ceased to be a member before April 1, 2008.
14.2(2)Where, on or after January 1, 2007, the payment of an annual pension is deferred under subsection 10(1), the amount of the pension shall be adjusted in accordance with subsection (4) until the time of payment of the pension.
14.2(3)Where, on or after January 1, 2007, the payment of a minister’s pension is deferred under subsection 11(2), the amount of the pension shall be adjusted in accordance with subsection (4) until the time of payment of the pension.
14.2(4)The amount of a pension referred to in subsection (2) or (3) shall be adjusted as of the first day of each year, beginning on January 1, 2007, by multiplying the amount of the pension that would have been payable for that year if no adjustment had been made under this subsection with respect to that following year, by the ratio that the pension index for that year bears to the pension index for the preceding year or 1.06, whichever is the lesser.
14.2(5)Notwithstanding subsection (4), the first adjustment under subsection (4) shall be the amount determined by multiplying the increase, if any, that would otherwise be payable under subsection (4) by a fraction the denominator of which is 12 and the numerator of which is equal to the number of months following the month in which the person ceased to be a member or minister, as the case may be, in the year preceding the year in which the first adjustment is made.
14.2(6)Notwithstanding subsection (4), any increase in the amount of pension payable under this Act by virtue of any adjustment made under subsection (4) relating to any period before January 1, 2007, shall be implemented
(a) so as to be effective January 1, 2007, and
(b) without any retroactive payment being made in respect of any period before January 1, 2007.
2007, c.50, s.1; 2011, c.35, s.8
Annual adjustment of deferred pension - person who ceases to be a member on or after April 1, 2008
14.3(1)The following definitions apply in this section.
“Consumer Price Index” means Consumer Price Index as defined in subsection 14.1(1).(indice des prix à la consommation)
“pension index” means pension index as defined in subsection 14.1(1).(indice de pension)
14.3(2)This section applies to a deferred pension in respect of a person who ceases to be a member on or after April 1, 2008.
14.3(3)If the payment of an annual pension is deferred under subsection 10(1), the amount of the pension shall be adjusted in accordance with subsection (5) until the time of payment of the pension.
14.3(4)If the payment of a minister’s pension is deferred under subsection 11(2), the amount of the pension shall be adjusted in accordance with subsection (5) until the time of payment of the pension.
14.3(5)The amount of a pension referred to in subsection (3) or (4) shall be adjusted as of the first day of each year, beginning on January 1, 2009, by multiplying the amount of the pension that would have been payable for that year if no adjustment had been made under this subsection with respect to that following year, by the ratio that the pension index for that year bears to the pension index for the preceding years or 1.05, whichever is the lesser.
14.3(6)Despite subsection (5), the first adjustment under subsection (5) shall be the amount determined by multiplying the increase, if any, that would otherwise be payable under subsection (5) by a fraction the denominator of which is 12 and the numerator of which is equal to the number of months following the month in which the person ceased to be a member or minister, as the case may be, in the year preceding the year in which the first adjustment is made.
2011, c.35, s.9
Manner of payment of benefits
15If a benefit, other than a return of contributions, becomes payable under this Part, it shall be paid in equal monthly instalments in arrears and continues, subject to this Part, during the lifetime of the recipient, until the end of the month in which he or she dies and any amount in arrears that remains unpaid at the time of his or her death shall be paid
(a) if the recipient was a member, to the recipient’s surviving spouse if he or she can be found and is entitled to receive the surviving spouse’s pension under section 13,
(b) if the recipient was a member and no person is paid under paragraph (a), to the recipient’s surviving common-law partner if he or she can be found and is entitled to receive the surviving common-law partner’s pension under section 13,
(c) if no person is paid under paragraph (a) or (b), in equal shares to the recipient’s children who can be found, or
(d) if no person is paid under paragraph (a), (b) or (c), to the recipient’s estate.
1998, c.35, s.1; 2008, c.45, s.17
Payment to estate where no surviving spouse, common-law partner or children
16If a person described in subsection 13(1) dies without leaving a surviving spouse, surviving common-law partner or children to whom a pension is payable under this Part, the amount by which the person’s contributions, together with interest, exceed any benefit received by or on behalf of the person shall be paid to the person’s estate.
2008, c.45, s.17
Payment where surviving spouse’s or common-law partner’s pension or children’s pension ceases
17Where for any reason a surviving spouse’s pension, surviving common-law partner’s pension or children’s pension ceases to be payable and no one remains to whom a pension is consequently payable, the amount by which the member’s contributions, together with interest, exceed all benefits derived from the member’s contributions shall be paid to the person whose pension so ceased or to that person’s estate.
2008, c.45, s.17
Suspension of annual pension
18(1)In this section
“full time employment” means full time employment as defined in the Public Service Superannuation Act;
“Public Service” means Public Service as defined in the Public Service Superannuation Act.
18(2)A person’s entitlement to receive an annual pension is suspended while the person is
(a) a person employed in full time employment in the Public Service,
(b) a person, other than a person referred to in paragraph (a), who, in respect of that person’s employment, is required to participate in a pension plan sponsored by the Province,
(c) a judge appointed in accordance with the Provincial Court Act,
(d) a judge who is subject to the Judges Act (Canada),
(e) a senator of Canada,
(f) a member of the House of Commons of Canada,
(g) the Lieutenant-Governor of New Brunswick if appointed as Lieutenant-Governor on or after the commencement of this paragraph, or
(h) the Governor General of Canada if appointed as Governor General on or after the commencement of this paragraph.
2001, c.5, s.1
Person to manage recipient’s affairs
19Where, for any reason, a recipient of a benefit is unable to manage his or her own affairs, the Minister may designate a proper person to receive payment on his or her behalf of any amount that is payable to him or her under this Part.
Prohibition respecting assignment of rights
20(1)No right of a person under this Part is capable of being assigned, charged, anticipated, given as security or surrendered, and, for the purposes of this subsection,
(a) assignment does not include assignment pursuant to a decree, order or judgment of a competent tribunal or a written agreement in settlement of rights arising as a consequence of the breakdown of a marriage between a member or former member and his or her spouse or former spouse or the breakdown of a common-law partnership between a member or former member and his or her common-law partner or former common-law partner, nor does it include assignment by the legal representative of a deceased member or former member on the distribution of the estate of the member or former member, and
(b) surrender does not include a reduction in benefits to avoid the revocation of the registration under the Income Tax Act (Canada) of the pension plan provided for in this Part.
20(2)Repealed: 2000, c.7, s.8
2000, c.7, s.8; 2008, c.45, s.17
Division of benefits on breakdown of a marriage or common-law partnership
20.1(1)Notwithstanding any other provision of this Act, where a competent tribunal makes a decree, order or judgment on or after January 1, 1997, in relation to the division on marriage breakdown of a benefit that a member or minister, or a former member or former minister, is or may be entitled to under this Act, the commuted value of the benefit shall be determined in accordance with the regulations as of the date of marriage breakdown and shall be divided in accordance with the decree, order or judgment of the tribunal.
20.1(1.1)Notwithstanding any other provision of this Act, where a competent tribunal makes a decree, order or judgment on or after the commencement of this subsection in relation to the division on the breakdown of a common-law partnership of a benefit that a member or minister, or a former member or former minister, is or may be entitled to under this Act, the commuted value of the benefit shall be determined in accordance with the regulations as of the date of the breakdown of the common-law partnership and shall be divided in accordance with the decree, order or judgment of the tribunal.
20.1(2)The portion of the benefit to which the spouse or common-law partner of a member or minister, or of a former member or former minister, is entitled under a decree, order or judgment referred to in subsection (1) or (1.1) shall be dealt with in accordance with the regulations.
20.1(3)If a benefit has been divided under subsection (1) or (1.1), the spouse or common-law partner has no further right
(a) to a division of any other benefit of the member or minister, or of the former member or former minister,
(b) to a surviving spouse’s pension or surviving common-law partner’s pension with respect to the member or minister, or the former member or former minister, or any other benefit or amount payable to the spouse or common-law partner under this Act by virtue of being the spouse or common-law partner of the member or minister, or the former member or former minister, or
(c) in relation to the Members’ Pension Account,
and the benefit of the member or minister, or of the former member or former minister, shall be revalued in accordance with the regulations.
20.1(4)Notwithstanding any other provision of this Act, where a written agreement in settlement of rights arising as a consequence of marriage breakdown is entered into on or after January 1, 1997, and provides for the division on marriage breakdown of a benefit that a member or minister, or a former member or former minister, is or may be entitled to under this Act, the commuted value of the benefit shall be determined as of the date of marriage breakdown in accordance with the regulations and shall be divided in accordance with the written agreement.
20.1(4.1)Notwithstanding any other provision of this Act, where a written agreement in settlement of rights arising as a consequence of the breakdown of a common-law partnership is entered into on or after the commencement of this subsection and provides for the division on the breakdown of the common-law partnership of a benefit that a member or minister, or a former member or former minister, is or may be entitled to under this Act, the commuted value of the benefit shall be determined as of the date of the breakdown of the common-law partnership in accordance with the regulations and shall be divided in accordance with the written agreement.
20.1(5)Subsections (2) and (3) apply with the necessary modifications to a division of a benefit under subsection (4) or (4.1).
20.1(6)A division of benefits under this section shall not result in a reduction of the commuted value of the benefit of a member or minister, or of a former member or former minister, by more than fifty per cent.
20.1(7)A division of benefits under this section applies only in relation to benefits accrued between the date of marriage and the date of marriage breakdown or between the date of common-law partnership and the date of the breakdown of the common-law partnership, as the case may be.
20.1(8)A division of benefits under this section is limited by any restrictions under this Act in relation to the payment of money out of the Members’ Pension Account.
20.1(9)Repealed: 2000, c.7, s.9
1997, c.56, s.1; 1998, c.35, s.1; 2000, c.7, s.9; 2007, c.50, s.1; 2008, c.45, s.17
Regulations
20.2(1)The Lieutenant-Governor in Council may make regulations
(a) respecting the determination of the commuted value of a benefit for the purposes of section 20.1;
(b) respecting the circumstances and manner in which the portion of the benefit to which a spouse or common-law partner of a member or minister, or of a former member or former minister, is entitled under section 20.1, may be dealt with, including, without limiting the generality of the foregoing, the types of instruments to which the portion may be transferred and the types of instruments that may be purchased with the portion;
(c) respecting the revaluation of benefits under section 20.1;
(d) respecting any other matter relating to a benefit to be divided on the breakdown of a marriage or common-law partnership;
(e) defining any word or expression used but not defined in section 20.1.
20.2(2)A regulation under subsection (1) may be made retroactive to January 1, 1997, or to any date after January 1, 1997.
1997, c.56, s.1; 2008, c.45, s.17
III
SUPPLEMENTARY ALLOWANCES
Supplementary allowance payable at age fifty-five
21A member who has to his or her credit eight or more sessions of pensionable service and who ceased to be a member before April 1, 2008, is entitled, on or after attaining fifty-five years of age, to a supplementary allowance in an amount equal to 125% of the annual pension calculated in accordance with subsection 10(2).
2011, c.35, s.10
Supplementary allowance payable at age sixty
21.1A member who has to his or her credit eight or more sessions of pensionable service and who ceases to be a member on or after April 1, 2008, is entitled, on or after attaining sixty years of age, to a supplementary allowance in an amount equal to 50% of the annual pension calculated in accordance with subsection 10(2).
2011, c.35, s.11
Minimum amount of pension and supplementary allowance
21.2(1)The amount of the annual pension to which a person who ceases to be a member on or after April 1, 2008, is entitled under section 10, when combined with the amount of the supplementary allowance to which the person is entitled under section 21.1 or subsection 22(1.1) or the amount of the reduced supplementary allowance to which the person is entitled under subsection 22(1.2), shall not be less than the amount of the annual pension to which the person would have been entitled under section 10 when combined with the amount of the supplementary allowance to which the person would have been entitled under section 21 or the amount of the reduced supplementary allowance to which the person would have been entitled under subsection 22(1), if the person had ceased to be a member before April 1, 2008, having the same period of pensionable service to his or her credit.
21.2(2)If there is a shortfall between the minimum amount of annual pension and supplementary allowance or reduced supplementary allowance in subsection (1) and the total amount of annual pension and supplementary allowance or reduced supplementary allowance to which a person is entitled, the shortfall shall be payable out of the Consolidated Fund.
2011, c.35, s.11
Reduced supplementary allowance and supplementary allowance payable before age sixty
22(1)Despite section 21, a member who has to his or her credit eight or more sessions of pensionable service and who ceased to be a member before April 1, 2008, may elect, before attaining fifty-five years of age, to receive a reduced supplementary allowance calculated in accordance with section 21, reduced by 5/12 of 1% for each month by which the commencement date of the reduced supplementary allowance precedes his or her fifty-fifth birthday.
22(1.1)Despite section 21.1, a member who has to his or her credit eight or more sessions of pensionable service and who ceases to be a member between April 1, 2008, and October 12, 2010, both dates inclusive, may elect, on or after attaining fifty-five years of age and before attaining sixty years of age, to receive a supplementary allowance calculated using the following formula:
X + (Y × Z)
where
X  = the supplementary allowance calculated in accordance with section 21.1;
Y  = 2% of the average indemnity received by the person as a member during or in respect of the three successive sessions during or for which his or her indemnity was the highest, multiplied by the number of sessions of pensionable service to his or her credit; and
Z  = 5/36 of 1% for each month by which the commencement date of the supplementary allowance precedes his or her sixtieth birthday.
22(1.2)Despite section 21.1, a member who has to his or her credit eight or more sessions of pensionable service and who ceases to be a member on or after October 13, 2010, may elect, on or after attaining fifty-five years of age, to receive a reduced supplementary allowance calculated in accordance with section 21.1, reduced by 5/12 of 1% for each month by which the commencement date of the reduced supplementary allowance precedes his or her sixtieth birthday.
22(2)An election made under subsection (1), (1.1) or (1.2)
(a) shall be made in writing and signed by the member,
(b) shall be forwarded to the Minister, and
(c) is irrevocable.
22(3)A reduced supplementary allowance under subsection (1) is payable in lieu of a supplementary allowance under section 21 and a person who elects to receive a reduced supplementary allowance under subsection (1) is not entitled to a supplementary allowance under section 21 upon attaining fifty-five years of age or at any later time.
22(4)A supplementary allowance under subsection (1.1) or a reduced supplementary allowance under subsection (1.2) is payable in lieu of a supplementary allowance under section 21.1 and a person who elects to receive a supplementary allowance under subsection (1.1) or a reduced supplementary allowance under subsection (1.2) is not entitled to a supplementary allowance under section 21.1 on attaining sixty years of age or at any later time.
2000, c.7, s.10; 2011, c.35, s.12
Supplementary allowance payable at age fifty-five
23A person referred to in section 21 who has to his or her credit at least six months of pensionable service as a minister is entitled, upon attaining fifty-five years of age or at such later time as he or she ceases to be a member, in addition to the supplementary allowance to which he or she is entitled under section 21, to a supplementary allowance in an amount equal to fifty per cent of the minister’s pension calculated in accordance with subsection 11(3), notwithstanding that the person may not have attained sixty years of age.
Supplementary allowance payable at age sixty
23.1A person referred to in section 21.1 who has to his or her credit at least six months of pensionable service as a minister is entitled, on or after attaining sixty years of age, in addition to the supplementary allowance to which he or she is entitled under section 21.1, to a supplementary allowance in an amount equal to 50% of the minister’s pension calculated in accordance with subsection 11(3).
2011, c.35, s.13
Reduced supplementary allowance payable before age fifty-five
24(1)Despite section 23, a person referred to in subsection 22(1) who elects to receive a reduced supplementary allowance under subsection 22(1) and who has to his or her credit at least six months of pensionable service as a minister shall be deemed to have elected to receive, in addition to the reduced supplementary allowance to which he or she is entitled under subsection 22(1), a reduced supplementary allowance in an amount calculated in accordance with section 23, reduced by 5/12 of 1% for each month by which the commencement date of the reduced supplementary allowance precedes that person’s fifty-fifth birthday.
24(2)Despite section 23, a person referred to in subsection 22(1.1) who elects to receive a supplementary allowance under subsection 22(1.1) and who has to his or her credit at least six months of pensionable service as a minister shall be deemed to have elected to receive, in addition to the supplementary allowance to which he or she is entitled under subsection 22(1.1), a reduced supplementary allowance in an amount calculated in accordance with section 23, reduced by 5/12 of 1% for each month by which the commencement date of the reduced supplementary allowance precedes that person’s fifty-fifth birthday.
24(3)A reduced supplementary allowance under subsection (1) or (2) is payable in lieu of a supplementary allowance under section 23 and a person who is deemed to have elected to receive a reduced supplementary allowance under subsection (1) or (2) is not entitled to a supplementary allowance under section 23 on attaining fifty-five years of age or at any later time.
2000, c.7, s.11; 2011, c.35, s.14
Reduced supplementary allowance payable before age sixty
24.1(1)Despite section 23.1, a person referred to in subsection 22(1.2) who elects to receive a reduced supplementary allowance under subsection 22(1.2) and who has to his or her credit at least six months of pensionable service as a minister shall be deemed to have elected to receive, in addition to the reduced supplementary allowance to which he or she is entitled under subsection 22(1.2) a reduced supplementary allowance in an amount calculated in accordance with section 23.1, reduced by 5/12 of 1% for each month by which the commencement date of the reduced supplementary allowance precedes that person’s sixtieth birthday.
24.1(2)A reduced supplementary allowance under subsection (1) is payable in lieu of a supplementary allowance under section 23.1 and a person who is deemed to have elected to receive a reduced supplementary allowance under subsection (1) is not entitled to a supplementary allowance under section 23.1 on attaining sixty years of age or at any later time.
2011, c.35, s.15
Supplementary allowance payable to a surviving spouse or surviving common-law partner
25(1)If the surviving spouse or surviving common-law partner of a person who ceased to be a member before April 1, 2008, is entitled to receive a surviving spouse’s pension or surviving common-law partner’s pension, as the case may be, under subsection 13(1) in respect of the person’s annual pension, the surviving spouse or surviving common-law partner is entitled to a supplementary allowance in an amount equal to 125% of the portion of the surviving spouse’s pension or surviving common-law partner’s pension attributable to the annual pension of that person calculated in accordance with subsection 10(2).
25(1.1)If the surviving spouse or surviving common-law partner of a person who ceases to be a member on or after April 1, 2008, is entitled to receive a surviving spouse’s pension or surviving common-law partner’s pension, as the case may be, under subsection 13(1) in respect of the person’s annual pension, the surviving spouse or surviving common-law partner is entitled to a supplementary allowance in an amount equal to 50% of the portion of the surviving spouse’s pension or surviving common-law partner’s pension attributable to the annual pension of that person calculated in accordance with subsection 10(2).
25(2)If the surviving spouse or surviving common-law partner of a person who was a minister is entitled to receive a surviving spouse’s pension or surviving common-law partner’s pension, as the case may be, under subsection 13(1) in respect of the minister’s pension, the surviving spouse or surviving common-law partner is entitled, in addition to the supplementary allowance to which he or she is entitled under subsection (1), to a supplementary allowance in an amount equal to 50% of the portion of the surviving spouse’s pension or surviving common-law partner’s pension attributable to the minister’s pension calculated in accordance with subsection 11(3).
2008, c.45, s.17; 2011, c.35, s.16
Supplementary allowance payable to a child
26Section 25 applies, with the necessary modifications, to a child who is entitled to receive a children’s pension under section 14, in respect of the children’s pension to which the child is entitled.
No contributions required
27Members and ministers are not required to make contributions in respect of the supplementary allowances or reduced supplementary allowances payable under this Part.
Supplementary allowances payable out of the Consolidated Fund
28Supplementary allowances and reduced supplementary allowances payable under this Part shall be paid out of the Consolidated Fund.
Payment of supplementary allowances
29Except as otherwise provided in this Part, supplementary allowances and reduced supplementary allowances payable under this Part shall be paid at the same time, in the same manner and under the same terms and conditions as the corresponding benefits are or would be payable under Part II, and the provisions of Part II apply, with the necessary modifications, in relation to the payment of supplementary allowances and reduced supplementary allowances payable under this Part.
Annual adjustment of supplementary allowances and reduced supplementary allowances before April 1, 2008
29.01Section 14.1 applies with the necessary modifications to supplementary allowances and reduced supplementary allowances under this Part paid in respect of persons who ceased to be members before April 1, 2008.
2001, c.5, s.1; 2011, c.35, s.17
Annual adjustment of supplementary allowances and reduced supplementary allowances on or after April 1, 2008
29.011Section 14.11 applies with the necessary modifications to supplementary allowances and reduced supplementary allowances under this Part paid in respect of persons who cease to be members on or after April 1, 2008.
2011, c.35, s.18
Annual adjustment of deferred supplementary allowance before April 1, 2008
29.02Section 14.2 applies with the necessary modifications to a supplementary allowance referred to in section 21 or 23.
2007, c.50, s.1
Annual adjustment of deferred supplementary allowance on or after April 1, 2008
29.03Section 14.3 applies with the necessary modifications to a supplementary allowance referred to in section 21.1 or 23.1.
2011, c.35, s.19
Persons who again become members on or after April 1, 2008
29.04If a person ceased to be a member before April 1, 2008, and again becomes a member on or after that date, sections 14.11, 14.3, 21.1, subsection 22(1.2), section 23.1 and subsection 24.1(1) apply with the necessary modifications to the person’s pensionable service in respect of any period before April 1, 2008.
2011, c.35, s.19
No repayment of excess benefits paid
29.05If, between April 1, 2008, and July 31, 2011, both dates inclusive, a person receives payment of a benefit, a supplementary allowance or a reduced supplementary allowance in an amount in excess of the amount to which the person is entitled, the person is not required to repay the excess amount.
2011, c.35, s.19
Division of supplementary allowances and reduced supplementary allowances on marriage breakdown
29.1Section 20.1 and any regulation made under section 20.2 apply with the necessary modifications to supplementary allowances and reduced supplementary allowances under this Part.
1997, c.56, s.1
IV
ADMINISTRATION
Administration
30The Minister shall administer this Act and may designate persons to act on the Minister’s behalf.
Annual report of the Minister
31Each year the Minister shall lay before the Legislative Assembly a report on the administration of this Act during the preceding fiscal year which shall include
(a) a statement showing the number of persons receiving benefits under Part II and the amounts paid into and out of the Members’ Pension Account during that fiscal year, and
(b) a statement showing the number of persons receiving supplementary allowances or reduced supplementary allowances under Part III and the amount paid out of the Consolidated Fund as supplementary allowances and reduced supplementary allowances during that fiscal year.
Regulations
32(1)The Lieutenant-Governor in Council may make regulations respecting the nature of the evidence required to establish proof of age, death or spousal status for the purposes of this Act, the time within which such evidence is to be provided and the consequence of any failure to provide such evidence within that time.
32(2)A regulation under subsection (1) may be made retroactive.
1998, c.35, s.1
N.B. This Act is consolidated to June 13, 2012.