Acts and Regulations

2010-109 - General

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Current to 1 January 2024
NEW BRUNSWICK
REGULATION 2010-109
under the
Nursing Homes Pension Plans Act
(O.C. 2010-380)
Filed July 15, 2010
Under section 19 of the Nursing Homes Pension Plans Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the General Regulation - Nursing Homes Pension Plans Act.
Definition of “Act”
2In this Regulation, “Act” means the Nursing Homes Pension Plans Act.
Dispute resolution
3(1)In the event of a deadlock, one-half of the members of the board may make a request in writing to the Minister of Finance and Treasury Board to appoint a person for the purpose of breaking the deadlock, and shall at the same time send a copy of the request to all other members of the board.
3(2)A majority of the members of the board may, within 20 days after a request is sent to the Minister under subsection (1), submit to the Minister the name of a person recommended by them for the purpose of breaking the deadlock.
3(3)The Minister of Finance and Treasury Board shall, without delay, appoint a person for the purpose of breaking the deadlock after the period of time referred to in subsection (2) has lapsed, and shall notify the Chairperson of the board of the appointment.
3(4)The Minister of Finance and Treasury Board, in appointing a person under this section, shall appoint a person who, in his or her opinion,
(a) is free of a real or perceived conflict of interest with respect to the matter over which there is a deadlock, and
(b) has experience in pension issues.
3(5)Within 10 days after being notified under subsection (3), the Chairperson shall call a meeting of all the members of the board and the person appointed for the purpose of resolving the deadlock.
3(6)The Chairperson shall provide to the person appointed all documentation and relevant information with respect to the issue over which there is a deadlock at least 5 days before the meeting.
3(7)At the meeting the person appointed shall receive written or oral submissions from the members of the board as to their reasons for supporting or opposing the motion or resolution over which there is a deadlock.
3(8)The person appointed shall decide whether to support or oppose the motion or resolution over which there is a deadlock and shall notify the Chairperson in writing of his or her decision within 7 days after the meeting.
3(9)The decision of the person appointed is not invalidated if the notification in writing occurs after the period referred to in subsection (8).
3(10)The decision of the person appointed is determinative of the matter, and has the same effect as though a motion or resolution had been approved by a majority of the members of the board.
3(11)The Chairperson shall advise all members of the board of the determination of the person appointed as soon as practicable.
2019, c.29, s.109
Exclusions
4The nursing homes pension plans are excluded from the application of the following provisions of the General Regulation - Pension Benefits Act:
(a) subsections 19(7), (11) and (12);
(b) paragraphs 35(2)(c) and (d); and
(c) subsection 41(2).
Funding policy for general and service employees’ pension plan
5The funding policy for the Pension Plan for General and Service Employees of New Brunswick Nursing Homes (Registration number NB.0447938) is that set out in Schedule A.
Funding policy for nursing and paramedical employees’ pension plan
6The funding policy for the Pension Plan for Nursing and Paramedical Employees of New Brunswick Nursing Homes (Registration number NB.0447946) is that set out in Schedule B.
Funding policy for management employees’ pension plan
7The funding policy for the Pension Plan for Management Employees of New Brunswick Nursing Homes (Registration number NB.0447953) is that set out in Schedule C.
Commencement
8This Regulation comes into force on July 15, 2010.
SCHEDULE A
GENERAL AND SERVICE EMPLOYEES’ PENSION PLAN
Actuarial method
1For the purposes of this funding policy, when determining the going concern valuation of the pension plan, liabilities shall be valued using the projected benefit actuarial cost method and the assets of the plan shall be valued at their market value.
Assets of the plan
2The assets of the pension plan shall be deemed to include the current value of the remaining balance of any employer contributions required to fund the going concern unfunded liability that existed in the plan as at June 30, 2008.
Contributions by members
3(1)In this section, “YMPE” means the Year’s Maximum Pensionable Earnings as defined under the Canada Pension Plan.
3(2)Member required contributions for current service shall be 6.5% of covered earnings up to the YMPE for the year plus 9.03% of covered earnings in excess of the YMPE for the year.
Timing of contribution rates
4Contribution rates for the pension plan shall be effective as of the first day of January following the date of the submission of the actuarial valuation report for the pension plan.
Contributions by employers
5Employers’ contributions for current service shall equal the members’ required contributions for current service.
Special payments
6(1)In this section and section 7, “funded ratio” means the ratio of the actuarial value of the assets of the pension plan to its actuarial liabilities on a going-concern basis as at the most recent actuarial valuation.
6(2)The actuarial value of the assets of the plan shall include the present value of any remaining special payments previously established under this section.
6(3)If the funded ratio is less than 95%, additional special payments shall be made by members and employers in accordance with this section.
6(4)The additional special payments shall be the amount required to restore the funded ratio of the pension plan to 100% over a period of 15 years, based on the going concern actuarial assumptions.
6(5)The special payment amount shall be determined as a percentage of covered earnings of plan members using the going concern investment return assumption in the most recent actuarial valuation and a best-estimate assumption as to the rate of future salary increases.
6(6)Notwithstanding subsection (5), the total of all special payments required under this section by a member or an employer shall not exceed 25% of the member’s or employer’s total current service contribution.
6(7)If the requirements of subsection (4) are not able to be met as a result of the application of subsection (6), the special payments shall continue for as long as is necessary at the maximum rate permissible to restore the funded ratio of the pension plan to 100%.
6(8)Plan members and employers shall each contribute 50% of the total of any special payments required under this section.
6(9)Special payments shall cease when the value of the assets of the plan, on a going concern basis, equals or exceeds its actuarial liabilities on a going concern basis.
Surpluses
7Subject to paragraphs 11(5)(a) and (b) of the Act, if the funded ratio exceeds 120% on a going concern basis, some of the surplus may be used to improve benefits under the plan if the improvements will not increase the normal actuarial cost of the pension plan.
Contributions and the Income Tax Act (Canada)
8Notwithstanding any other provision of this Regulation, contributions made by members or employers shall be in compliance with the requirements of the Income Tax Act (Canada).
SCHEDULE B
NURSING AND PARAMEDICAL EMPLOYEES’ PENSION PLAN
Actuarial method
1For the purposes of this funding policy, when determining the going concern valuation of the pension plan, liabilities shall be valued using the projected unit credit actuarial cost method and the assets of the plan shall be valued at their market value.
Assets of the plan
2The assets of the pension plan shall be deemed to include the current value of the remaining balance of any employer contributions required to fund the going concern unfunded liability that existed in the plan as at June 30, 2008.
Contributions by members
3(1)In this section, “YMPE” means the Year’s Maximum Pensionable Earnings as defined under the Canada Pension Plan.
3(2)Member required contributions for current service shall be 5.3% of covered earnings up to the YMPE for the year plus 7.0% of covered earnings in excess of the YMPE for the year.
Employers’ contributions
4(1)The employers’ required contributions for current service for a year shall equal the residual normal actuarial cost.
4(2)For the purposes of this section, the residual normal actuarial cost is equal to the excess of the total normal actuarial cost over the members’ required contributions expressed as a percentage of total covered earnings.
Timing of contribution rates
5Contribution rates for the pension plan shall be effective as of the first day of January following the date of the submission of the actuarial valuation report for the pension plan.
Special payments
6(1)For the purposes of this section and section 7, “funded ratio” means the ratio of the actuarial value of the assets of the plan to its actuarial liabilities on a going-concern basis as at the most recent actuarial valuation.
6(2)The actuarial value of assets shall include the present value of any remaining special payments previously established under this section.
6(3)If the funded ratio is less than 95%, additional special payments shall be made by employers in accordance with this section.
6(4)The total special payment shall be the amount required to restore the funded ratio of the pension plan to 100% over a period of 15 years, based on the going concern actuarial assumptions.
6(5)The special payment amount shall be determined as a percentage of covered earnings of plan members using the going concern investment return assumption in the most recent actuarial valuation and a best-estimate assumption as to the rate of future salary increases.
6(6)Special payments shall cease when the value of the assets of the plan, on a going concern basis, equals or exceeds its actuarial liabilities on a going concern basis.
Surpluses
7Subject to paragraphs 11(5)(a) and (b) of the Act, if the funded ratio of the plan exceeds 120% on a going concern basis, some of the surplus may be used to improve benefits if the improvements will not increase the normal actuarial cost of the pension plan.
Contributions and the Income Tax Act (Canada)
8Notwithstanding any other provision of this Regulation, contributions made by members or employers shall be in compliance with the requirements of the Income Tax Act (Canada).
SCHEDULE C
MANAGEMENT EMPLOYEES’ PENSION PLAN
Actuarial method
1For the purposes of this funding policy, when determining the going concern valuation of the pension plan, liabilities shall be valued using the projected unit credit actuarial cost method and the assets of the plan shall be valued at their market value.
Contributions by members
2(1)In this section, “YMPE” means the Year’s Maximum Pensionable Earnings as defined under the Canada Pension Plan.
2(2)Member required contributions for current service shall be 5.8% of covered earnings up to the YMPE for the year plus 7.5% of covered earnings in excess of the YMPE for the year.
Employers’ contributions
3(1)The employers’ required contributions for current service for a year shall equal the residual normal actuarial cost.
3(2)For the purposes of this section, the residual normal actuarial cost is equal to the excess of the total normal actuarial cost over the members’ required contributions expressed as a percentage of total covered earnings.
Timing of contribution rates
4Contribution rates for the pension plan shall be effective as of the first day of January following the date of the submission of the actuarial valuation report for the pension plan.
Special payments
5(1)In this section and section 6, “funded ratio” means the ratio of the actuarial value of the assets of the pension plan to its actuarial liabilities on a going-concern basis.
5(2)The actuarial value of assets shall include the present value of any remaining special payments previously established under this section.
5(3)If the funded ratio is less than 95%, special payments shall be made by employers in accordance with this section.
5(4)The total special payment shall be the amount required to restore the funded ratio to 100% over a period of 15 years, based on the going concern actuarial assumptions.
5(5)The special payment amount shall be determined as a percentage of covered earnings of plan members using the going concern investment return assumption in the most recent actuarial valuation and a best-estimate assumption as to the rate of future salary increases.
5(6)Special payments shall cease when the value of the assets of the plan, on a going concern basis, equals or exceeds its actuarial liabilities on a going concern basis.
Surpluses
6Subject to paragraphs 11(5)(a) and (b) of the Act, if the funded ratio of the plan exceeds 120% on a going concern basis, some of the surplus may be used to improve benefits if such improvements will not increase the normal actuarial cost of the pension plan.
Contributions and the Income Tax Act (Canada)
7Notwithstanding any other provision of this Regulation, contributions made by members or employers shall be in compliance with the requirements of the Income Tax Act (Canada).
N.B. This Regulation is consolidated to December 20, 2019.