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Regulation number	Title
2016, c.106	Provincial Court Judges’ Pension Act

Under section 39 of the Provincial Court Judges’ Pension Act, the Lieutenant-Governor in Council makes the following Regulation:

2018-38

INTERPRETATION

Citation

1This Regulation may be cited as the General Regulation - Provincial Court Judges’ Pension Act.

Definitions

2In this Regulation

“Act” means the Provincial Court Judges’ Pension Act.(Loi)

CONTRIBUTIONS UNDER THE ACT

Judges’ monthly contributions in relation to the Plan

3(1)For the purposes of subsection 7(1) of the Act, a judge shall make contributions monthly in relation to the Plan in an amount equal to the following percentage of the judge’s salary to which the contribution relates:

(a) in the case of service performed before April 1, 2010, 7%; and

(b) in the case of service performed on or after April 1, 2010, 8%.

3(2)Contributions required under subsection (1) shall be made as follows:

(a) the portion of the required contribution that is a deductible contribution as provided for in subsection 147.2(4) of the Income Tax Act (Canada) and in subsection 8503(4) of the Income Tax Regulations under that Act shall be paid into the Fund; and

(b) the portion of the required contribution that is not a deductible contribution as provided for in subsection 147.2(4) of the Income Tax Act (Canada) and in subsection 8503(4) of the Income Tax Regulations under that Act shall be paid into the Consolidated Fund.

2011, c.12, s.2; 2018-38

Leaves of absence

4(1)A judge on leave of absence who is receiving full salary as a judge shall, during that leave of absence, make contributions under subsection 7(1) of the Act and in accordance with section 3 as though he or she were not on leave.

4(2)A judge on leave of absence who is not receiving full salary as a judge may, when he or she is again receiving full salary, make contributions under subsection 7(1) of the Act and in accordance with section 3 respecting that leave of absence.

4(3)The contributions of a judge to whom subsection (2) applies shall be in addition to the judge’s normal contributions and shall be made over a period not exceeding in length the period of the leave of absence.

4(4)For the purposes of subsection (3), the judge shall be deemed to have received, during the period of the leave of absence, the salary applicable to his or her office.

4(5)If a benefit is payable under the Act to the spouse, common-law partner, child or estate of a judge or the legal representative of the judge, spouse, common-law partner, child or estate, and a contribution required to be made respecting a period of leave of absence has not been made under subsection 7(1) of the Act, the spouse, common-law partner, child, estate or legal representative, as the case may be, shall make the contribution in an amount equal to the contribution the judge would have been required to make under this section.

2008, c.45, s.29; 2018-38

DIVISION OF BENEFITS ON BREAKDOWN OF A MARRIAGE OR COMMON-LAW PARTNERSHIP

2008, c.45, s.29

Definitions

5(1)In sections 6 to 12

“common-law partner’s portion” means the portion of the portion of the benefit or commuted value of the benefit of a judge computed under section 7 to which the common-law partner of the judge is entitled on the breakdown of their common-law partnership under a decree, order or judgment made by a competent tribunal or under a written agreement in settlement of rights arising as a consequence of the breakdown of their common-law partnership;(allocation de conjoint de fait)

“pensionable service” means(service ouvrant droit à pension)

(a) pensionable service as defined in the Act, and

(b) subject to subsection 7(4) of the Act, any period during which a judge is or was being paid a disability benefit;

“spouse’s portion” means the portion of the portion of the benefit or commuted value of the benefit of a judge computed under section 7 to which the spouse of the judge is entitled on marriage breakdown under a decree, order or judgment made by a competent tribunal or under a written agreement in settlement of rights arising as a consequence of marriage breakdown.(allocation de conjoint)

5(2)In section 28 of the Act and in sections 6 to 12

“commuted value” means the value of a benefit that a judge is or may be entitled to under the Act and that is to be divided under section 28 of the Act, which value is calculated as of the date of the breakdown of his or her marriage or common-law partnership and shall be(valeur de rachat)

(a) subject to paragraphs (b) and (c), calculated in accordance with subsection 6(1), (2) or (3),

(b) subject to paragraph (c), if the benefit is a return of contributions, equal to the amount of the return, together with interest, or

(c) if the Minister has established or approved a method for determining the commuted value under subsection 28(9) of the Act, determined by that method.

2008, c.45, s.29; 2018-38

Commuted value of a benefit

6(1)Subject to subsection (3), if a benefit that an active judge would be entitled to under the Act, other than a return of contributions, is to be divided on the breakdown of his or her marriage or common-law partnership under section 28 of the Act, the commuted value of the benefit shall be determined as though the judge had ceased to be active as of the date of the breakdown of the marriage or common-law partnership, as the case may be, using

(a) the benefit formula under the Act,

(b) the benefits, salary and contribution history in existence on the date of the breakdown of the marriage or common-law partnership,

(c) the actuarial and economic assumptions contained in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries, as amended from time to time, to the extent that they are consistent with the Act, this section and sections 7 to 12,

(d) the value of any survivor benefits under the Act either before, on or after the beginning of payment of the benefit,

(e) the annual adjustment provided for under section 27 of the Act, and

(f) the judge’s years of pensionable service and a retirement age of 60 or, if the judge is older than 60, the age of the judge as of the date of the breakdown of the marriage or common-law partnership.

6(2)If the annual pension of an inactive judge is to be divided on the breakdown of his or her marriage or common-law partnership under section 28 of the Act, the commuted value of the annual pension shall be determined using

(a) the periodic amount of the annual pension being paid or payable as of the date of the breakdown of the marriage or common-law partnership,

(b) the actuarial and economic assumptions contained in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries, as amended from time to time, to the extent that they are consistent with the Act, this section and sections 7 to 12,

(c) the value of any survivor benefits under the Act either before, on or after the beginning of payment of the annual pension, and

(d) the annual adjustment provided for under section 27 of the Act.

6(3)If an annual pension is being paid to an active judge under Part 3 of the Act because of the operation of subsection 7(2) of the Act and the commuted value of the annual pension is to be divided on the breakdown of his or her marriage or common-law partnership under section 28 of the Act, the commuted value shall be determined as though the judge had ceased to be active as of the date of the breakdown of the marriage or common-law partnership, as the case may be, using

(a) the periodic amount of the annual pension being paid to the judge as of the date of the breakdown of the marriage or common-law partnership,

(b) the periodic amount of the supplementary allowance and supplementary payments payable under Part 4 of the Act to the judge on or after retirement and after section 24 of the Act no longer applies, based on the benefits, salary and contribution history in existence on the date when the annual pension began to be paid to the judge,

(c) the actuarial and economic assumptions contained in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries, as amended from time to time, to the extent that they are consistent with the Act, this section and sections 7 to 12,

(d) the value of any survivor benefits under the Act either before, on or after the beginning of payment of the annual pension, and

(e) the annual adjustment provided for under section 27 of the Act.

2008, c.45, s.29; 2018-38

Calculation of portion of commuted value to be divided on the breakdown of a marriage or common-law partnership

2008, c.45, s.29

7The portion of the commuted value of the benefit of a judge that may be divided on the breakdown of his or her marriage or common-law partnership under section 28 of the Act shall be computed using the following formula:

		a
p	=	−	×	c
		b

where

p = the portion of the commuted value of the benefit that may be divided on the breakdown of the marriage or common-law partnership;

a = the number of years, including parts of a year, of the judge’s pensionable service in the period between the date of marriage and the date of marriage breakdown, inclusive, or between the date of common-law partnership and the date of the breakdown of the common-law partnership, inclusive, as the case may be;

b = the total number of years, including parts of a year, of the judge’s pensionable service as of the date of the breakdown of the marriage or common-law partnership; and

c = the commuted value of the benefit.

2008, c.45, s.29; 2018-38

Disposition of portion of benefit by spouse or common-law partner

2008, c.45, s.29

8(1)Subject to subsection (3) and to the requirements of the Income Tax Act (Canada), the spouse or common-law partner of a judge shall direct the Minister

(a) to transfer the portion of the benefit to which the spouse or common-law partner is entitled under section 28 of the Act to another pension plan with the consent of the administrator of that plan or to a locked-in registered retirement savings plan, or

(b) to purchase a deferred life annuity or a life annuity with the portion of the benefit to which the spouse or common-law partner is entitled under section 28 of the Act.

8(2)Subject to the requirements of the Income Tax Act (Canada), if the spouse or common-law partner of a judge fails to direct the Minister to make a transfer or purchase in accordance with subsection (1) within ninety days after the later of the date on which the calculation under section 7 was performed, and the date of the decree, order or judgment made by a competent tribunal or the written agreement in settlement of rights arising as a consequence of the breakdown of their marriage or common-law partnership, the spouse or common-law partner shall be deemed to have directed the Minister to purchase a deferred life annuity or a life annuity with the portion of the benefit to which the spouse or common-law partner is entitled under section 28 of the Act.

8(3)If the portion of the benefit to which the spouse or common-law partner of a judge is entitled under section 28 of the Act exceeds the limit allowed under the Income Tax Act (Canada), or if it is a portion of a return of contributions, the excess amount or the portion of the return of contributions, as the case may be, shall be paid to the spouse or common-law partner, as the case may be, in cash.

2008, c.45, s.29; 2018-38

Interest on spouse’s portion or common-law partner’s portion

2008, c.45, s.29

9(1)If the commuted value of a benefit of a judge is divided under section 28 of the Act, the spouse’s portion shall be credited with interest at the rate calculated in accordance with section 13 from the date of marriage breakdown to the date on which the spouse’s portion is transferred or used for a purchase under section 8.

9(2)If the commuted value of a benefit of a judge is divided under section 28 of the Act, the common-law partner’s portion shall be credited with interest at the rate calculated in accordance with section 13 from the date of the breakdown of their common-law partnership to the date on which the common-law partner’s portion is transferred or used for a purchase under section 8.

2008, c.45, s.29; 2018-38

Revaluation of judge’s benefit

10(1)Subject to subsection (3), if the commuted value of the benefit of an active judge, or an inactive judge who is not yet being paid an annual pension, is divided under section 28 of the Act, the annual pension to which the judge is entitled when it begins to be paid shall be revalued so that it represents the annual pension to which the judge would have been entitled when the pension began to be paid if the division had not been made, after deducting the portion of the annual pension to which the spouse or common-law partner is entitled on the date of the breakdown of their marriage or common-law partnership, as the case may be, including any annual adjustment provided for under section 27 of the Act between the date of the breakdown of the marriage or common-law partnership and the date of retirement.

10(2)If the commuted value of the benefit of an inactive judge is divided under section 28 of the Act and the judge is being paid an annual pension at that time, the annual pension being paid to the judge shall be revalued so that it represents the annual pension that the judge would have been paid at that time if the division had not been made, after deducting the portion of the annual pension to which the spouse or common-law partner is entitled on the date of the breakdown of their marriage or common-law partnership, as the case may be, including any annual adjustment provided for under section 27 of the Act between the date of the breakdown of the marriage or common-law partnership and the date of revaluation.

10(3)If an annual pension is being paid to an active judge under Part 3 of the Act because of the operation of subsection 7(2) of the Act and the commuted value of the annual pension is divided on the breakdown of a marriage or common-law partnership under section 28 of the Act

(a) the annual pension being paid to the judge under Part 3 of the Act shall be revalued so that it represents the annual pension that the judge would have been paid under that Part at that time if the division had not been made, after deducting the portion of the annual pension being paid under that Part to which the spouse or common-law partner is entitled on the date of the breakdown of their marriage or common-law partnership, as the case may be, including any annual adjustment provided for under section 27 of the Act between the date of the breakdown of the marriage or common-law partnership and the date of revaluation, and

(b) the supplementary allowance and supplementary payments payable under Part 4 of the Act to the judge on or after retirement and after section 24 of the Act no longer applies shall be revalued so that they represent those that would have been payable under that Part to the judge at that time if the division had not been made, after deducting the portion of the annual supplementary allowance and supplementary payments payable under that Part to which the spouse or common-law partner is entitled on the date of the breakdown of their marriage or common-law partnership, as the case may be, including any annual adjustment provided for under section 27 of the Act between the date of the breakdown of the marriage or common-law partnership and the date of revaluation.

10(4)If the commuted value of a benefit of a judge is divided under section 28 of the Act, the contributions with interest made by the judge shall be revalued immediately by deducting from them an amount calculated in accordance with subsection (5) as of the date of the breakdown of his or her marriage or common-law partnership, as the case may be.

10(5)The amount to be deducted in a revaluation under subsection (4) shall be calculated using the following formula:

		a
A	=	−	×	m	×	m
		b

where

A = amount to be used in revaluation;

a = the number of years included in “b”, including parts of a year, of the judge’s pensionable service in the period between the date of marriage and the date of marriage breakdown, inclusive, or between the date of common-law partnership and the date of the breakdown of the common-law partnership, inclusive, as the case may be;

b = the total number of years, including parts of a year, of the judge’s pensionable service as of the date of the breakdown of his or her marriage or common-law partnership;

m = the total contributions, with interest, made by the judge under subsection 15(7) of the Provincial Court Act as it existed before this subsection came into force, and under subsection 7(1) of the Act in relation to the Plan, as of the date of the breakdown of the marriage or common-law partnership; and

p = the proportion that the spouse’s portion or common-law partner’s portion, as the case may be, bears to the portion of the commuted value of the benefit computed under section 7.

2008, c.45, s.29; 2018-38

Reduction of spouse’s portion or common-law partner’s portion

2008, c.45, s.29

11(1)The portion of the benefit to which the spouse or common-law partner of a judge is entitled under section 28 of the Act shall be reduced by the spouse’s share or common-law partner’s share, as the case may be and as calculated under subsection (2), of any payments of an annual pension that are made between the date of the breakdown of their marriage or common-law partnership, as the case may be, and the earlier of the date of a transfer or purchase under subsection 8(1) and the date of revaluation of benefits under section 10.

11(2)The spouse’s share or common-law partner’s share for the purposes of subsection (1) shall be calculated using the following formula:

D

=

P

×

p

where

D = the spouse’s share or common-law partner’s share, as the case may be;

P = payments of an annual pension that are made between the date of the breakdown of the marriage or common-law partnership, as the case may be, and the earlier of the date of a transfer or purchase under subsection 8(1) and the date of revaluation of benefits under section 10, plus interest calculated in accordance with section 13; and

p = the proportion that the spouse’s portion or common-law partner’s portion, as the case may be, bears to the portion of the commuted value of the benefit computed under section 7.

2008, c.45, s.29; 2018-38

Breakdown of a subsequent marriage or common-law partnership

2008, c.45, s.29

12Sections 5 to 11 apply with the necessary modifications for the purposes of the division of benefits on the breakdown of a second or subsequent marriage or common-law partnership.

2008, c.45, s.29

CALCULATION OF INTEREST

Calculation of interest

13For all purposes of the Act and this Regulation, interest shall be the average of the yields of five year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B14045, over the most recent period for which the rates are available, with an averaging period equal to the number of months in the period for which interest is to be credited to a maximum of twelve months.

CONSEQUENTIAL AMENDMENTS

Consequential amendments

14New Brunswick Regulation 84-104 under the Provincial Court Act is amended

(a) by repealing section 2 and substituting the following:

2In this Regulation

“Act” means the Provincial Court Act.

(b) by repealing the heading “SUPERANNUATION FUND” preceding section 3 and substituting the following:

PAYMENT OF ANNUITY

(c) by repealing section 3 and substituting the following:

3(1)When a judge becomes eligible for the annuity under the Act, the annuity shall be payable in equal monthly instalments in arrears.

3(2)When a judge is eligible to receive an unadjusted pension benefit under the Canada Pension Plan, any annuity payable to the judge under the Act will be reduced by an amount equal to the product of 0.7 per cent per year of service rendered after September 1, 1966 and the average of the Years Maximum Pensionable Earnings, as defined in the Canada Pension Plan, for the year in which the judge becomes entitled to an annuity and for each of the two preceding years.

(d) in paragraph 3.5(1)(a) by striking out “locked-in retirement savings arrangement” and substituting “locked-in registered retirement savings plan”.

COMMENCEMENT

Commencement

15(1)Sections 1 to 12 and section 14 of this Regulation shall be deemed to have come into force on February 18, 2000.

15(2)Section 13 of this Regulation shall be deemed to have come into force on April 1, 1998.

N.B. This Regulation is consolidated to May 15, 2018.

2000-8 - General

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