Acts and Regulations

N-12 - Nursing Homes Pension Plans Act

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Current to 1 January 2024
CHAPTER N-12
Nursing Homes Pension Plans Act
Assented to June 18, 2008
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
Definitions
1The following definitions apply in this Act.
“board” means a board of trustees, a pension board or such other board however called that is responsible for the administration of a nursing home pension plan.(conseil)
“Chairperson ” means the Chairperson appointed under subsection 4(1).(président)
“nursing home pension plan” means a pension plan referred to in section 2.(régime de pension du personnel d’un foyer de soins)
“Superintendent” means the Superintendent of Pensions appointed under the Financial and Consumer Services Commission Act and includes persons to whom the Superintendent or the Financial and Consumer Services Commission has delegated powers and duties under the Pension Benefits Act or the Financial and Consumer Services Commission Act.(surintendant)
2013, c.31, s.22
Application
2This Act applies to the following pension plans:
(a) Pension Plan for General and Service Employees of New Brunswick Nursing Homes, established effective April 1, 1982, and registered with the Superintendent as NB.0447938, as amended;
(b) Pension Plan for Nursing and Paramedical Employees of New Brunswick Nursing Homes, established effective April 1, 1982, and registered with the Superintendent as NB.0447946, as amended;
(c) Pension Plan for Management Employees of New Brunswick Nursing Homes, established effective April 1, 1982, and registered with the Superintendent as NB.0447953, as amended.
Conflict
3Notwithstanding section 5 or subsection 6(1) of the Pension Benefits Act or any other provision of that Act or any regulations made under that Act, or any other Act of the Legislative Assembly or any regulation made under those Acts, or any deed of settlement, agreement, contract, trust agreement, pension plan or other instrument, where any provision of this Act or any regulation made under this Act is inconsistent with any provision of the Pension Benefits Act or any regulations made under that Act, or with any provision of any other Act or regulation made under that Act, or is inconsistent with any deed of settlement, agreement, contract, trust agreement, pension plan or other instrument, the provisions in this Act and the regulations made under this Act prevail to the extent of the inconsistency.
Chairperson of a board
4(1)The Minister of Finance and Treasury Board shall appoint a person to be a member of each board, and any person so appointed shall be the Chairperson of the board and shall be non-voting, except as provided under section 11.
4(2)The Chairperson shall preside at the meetings of the board and may call meetings of the board if, in his or her opinion, a meeting of the board is desirable.
4(3)Any person who is the chairperson or a co-chairperson of a board immediately before the commencement of this section is removed from the office of chairperson or co-chairperson, but is not, by virtue of this section, removed as a member of the board.
4(4)Except as provided in subsection (2), a person who was the chairperson or co-chairperson of a board immediately before the commencement of this section may
(a) continue to discharge the duties and responsibilities for which he or she was otherwise responsible immediately before the commencement of this section, and
(b) carry out the duties referred to in subsection (2) in the absence of the Chairperson.
2019, c.29, s.108
Other members of a board
5(1)The person or persons who appoint members to a board shall ensure that one-half of the members of the board are representatives of members of the nursing home pension plan and one-half of the members are representatives of the employer or employers.
5(2)For the purposes of determining whether a board meets the requirements of subsection (1) or the eligibility requirements of paragraph 9(1)(e) of the Pension Benefits Act, if applicable, the Chairperson appointed under subsection 4(1) shall not be counted as a member of the board.
Objects of board
6The objects of a board are as follows:
(a) to assist the nursing home pension plan of which it is the administrator in meeting its obligations to contributors and beneficiaries;
(b) to manage the pension fund in the best interests of the contributors and beneficiaries; and
(c) to invest the assets of the pension fund with a view to achieving a maximum rate of return, without undue risk of loss, having regard to the factors that may affect the funding of the plan and the ability of the plan to meets its financial obligations on any given business day.
Powers of board
7(1)Subject to this Act and the regulations, a board has the rights, powers and privileges of a natural person with respect to its objects.
7(2)A board shall not, directly or indirectly, carry on any business or activity or exercise any power that is inconsistent with the board’s objects and shall not, directly or indirectly, exercise any of its powers contrary to this Act.
Specific duties
8(1)Subject to this Act and the regulations, the members of a board shall manage or supervise the business and affairs of the board.
8(2)Without limiting the generality of subsection (1), a board shall
(a) unless otherwise established by the regulations, establish written investment policies, standards and procedures,
(b) establish procedures for the identification of potential conflicts of interest and procedures to resolve those conflicts,
(c) establish a code of conduct for officers and employees of the board, and
(d) designate a committee of the board to monitor application of the conflict of interest procedures and the code of conduct.
8(3)Subject to the regulations, the investment policies, standards and procedures established by a board shall be those to which a person of ordinary prudence would adhere when dealing with the property of others.
Training of board members
9Every person who is a member of a board shall undertake such training and attend educational courses as may be prescribed by the regulations.
Dispute resolution
10(1)Where with respect to any resolution or motion before a board there is a deadlock, the deadlock shall be resolved in accordance with the dispute resolution process prescribed by the regulations.
10(2)For the purposes of this section, a deadlock shall be deemed to exist where a vote on a motion or resolution made at a meeting of the board is neither adopted nor rejected or where a motion or resolution is unable to be made at a meeting due to a lack of a quorum at 2 consecutively called meetings.
10(3)This section does not apply with respect to any motion or resolution that, in the opinion of the Chairperson, relates to or may be inconsistent with the funding policy referred to in section 11.
Funding policy
11(1)A board, a member of the board, an employer and a member of a nursing home pension plan shall comply with the funding policy for a nursing home pension plan as provided for under this section and as prescribed by the regulations.
11(2)The Chairperson has a vote with respect to any motion or resolution that, in the opinion of the Chairperson, relates to or may be inconsistent with the funding policy.
11(3)No person shall make amendments to a nursing home pension plan that would be inconsistent with the funding policy for that pension plan.
11(4)The Superintendent shall not accept for registration an amendment to a nursing home pension plan that, in the opinion of the Superintendent, is not in compliance with the funding policy for that pension plan.
11(5)The funding policy includes, but is not restricted to, the following requirements:
(a) improvements to benefits under a nursing home pension plan may be made only in the event the value of the assets of the plan are valued at greater than 120% of the value of the liabilities of the plan, on a going concern basis;
(b) no more than 33% of the surplus referred to in paragraph (a) may be used to improve benefits and no improvements to benefits may be made for service rendered and credited after the valuation date used in the most recently received actuarial valuation report made in respect of the nursing home pension plan;
(c) if the value of the assets of a nursing home pension plan are equal to or greater than 95% but less than 120% of the value of the liabilities of the plan, on a going concern basis, the normal contributions of the employers and employees to the pension plan shall continue;
(d) if the value of the assets of the nursing home pension plan referred to in paragraph 2(a) is less than 95% of the value of the liabilities of the plan, on a going concern basis, the employees and the employers shall increase their contributions to the plan in accordance with the funding policy until the value of the assets of the plan, on a going concern basis, reaches 100%.
Review of funding policy
12(1)The Minister of Finance shall ensure that a review is commenced within 4 years after the commencement of this Act for the purpose of examining and reporting on the effectiveness of the funding policy referred to in section 11.
12(2)The Minister of Finance shall ensure that a review under subsection (1) is concluded no later than 6 months after it commences.
12(3)The Minister of Finance shall lay the report prepared as a result of the review before the Legislative Assembly within 30 days after receiving the report or, if the Legislative Assembly is not sitting, when it next sits.
Solvency deficiency payments orders nullified
13The following orders of the Superintendent are declared to be null and void and of no force and effect with respect to any special payments ordered to be made in respect of any solvency deficiency referred to in the orders:
(a) the order dated March 8, 2006, to the Contributing Member Homes, as defined in the Pension Plan for General and Service Employees of New Brunswick Nursing Homes, to pay all special payments due in respect of any solvency deficiency identified in the “Actuarial Valuation as at June 30, 2003 for the Pension Plan for General and Service Employees of New Brunswick Nursing Homes” (the Valuation Report);
(b) the order dated March 8, 2006, to the Contributing Member Homes, as defined in the Pension Plan for Nursing and Paramedical Employees of New Brunswick Nursing Homes, to pay all special payments due in respect of any solvency deficiency identified in the “Actuarial Valuation as at December 31, 2003 for the Pension Plan for Nursing and Paramedical Employees of New Brunswick Nursing Homes” (the Valuation Report);
(c) the order dated July 12, 2006, to the Contributing Member Homes, as defined in the Pension Plan for Management Employees of New Brunswick Nursing Homes, to pay all special payments due in respect of any solvency deficiency identified in the “Actuarial Valuation as at December 31, 2004 for the Pension Plan for Management Employees of New Brunswick Nursing Homes” (the Valuation Report).
Decision of Labour and Employment Board nullified
14The decision of the Labour and Employment Board dated April 30, 2007, as it applies to the orders of the Superintendent with respect to solvency deficiency payments referred to in section 13 is declared to be null and void and of no force and effect.
Solvency deficiency payment orders prohibited
15The Superintendent shall not make any order for special payments in respect of a solvency deficiency identified in an actuarial valuation report for a nursing home pension plan.
Actuarial valuations
16(1)A board shall ensure that an actuarial valuation is conducted annually of the nursing home pension plan for which it is the administrator.
16(2)Each actuarial valuation report shall continue to identify any solvency deficiencies in a nursing home pension plan.
16(3)The board shall file each actuarial valuation report without delay with the Superintendent.
16(4)Where an actuarial valuation report indicates that there is a funding surplus or deficiency referred to in subsection 11(5), and where, in the Chairperson’s opinion, the board has not acted within a reasonable time so as to comply with the funding policy referred to in section 11 or has not taken appropriate action to comply with the funding policy, the Chairperson shall so advise the Superintendent.
Application of Pension Benefits Act
17(1)Except as otherwise provided in this Act or in the regulations, the provisions of the Pension Benefits Act and the regulations under that Act apply to nursing home pension plans.
17(2)Any reference in the following provisions in the Pension Benefits Act to “this Act”, “this Act and the regulations”, “the regulations” or words of like import shall be deemed to also include a reference to this Act or to the regulations under this Act, as the case may be:
(a) the definition “regulated activity” in section 1;
(a.1) 13(1)(c), (d) and (e);
(b) 14(1) and 14(2)(b);
(c) 20;
(c.1) 28(3.1) and (5);
(d) 49(3) and (6);
(e) 53 and 58;
(f) 61(1)(e);
(g) 72(2) and (6), 73(1), 74(3)(b) and 79;
(h) 81, 83(1), 84(1) and 86;
(h.1) 78.1(2), 78.12(1), (2) and (3), 78.21, 78.22(1), 78.3(1), 78.31(1), 78.32(2) and (3), 78.4(1), 78.41, 78.42(1), (2) and (3), 78.5(1), 78.51, 78.52, 78.6(1), (2), (4) and (5), 78.61, 78.7(1), 78.71(1), 78.8(1), 78.81 and 78.9;
(i) 91(3);
(j) any other provision prescribed by the regulations.
2013, c.31, s.22; 2016, c.36, s.10
Offences
18(1)A person who violates or fails to comply with subsection 5(1), 11(1) or (3) or 16(1) or (3) commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category E offence.
18(2)A person who violates or fails to comply with a provision of the regulations, other than a provision made in respect of a funding policy referred to in subsection 11(1), commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category B offence.
18(3)Where an offence under this Act or the regulations continues for more than one day
(a) the minimum fine that may be imposed is the minimum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues, and
(b) the maximum fine that may be imposed is the maximum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues.
Administration
2013, c.31, s.22
18.1The Financial and Consumer Services Commission is responsible for the administration of this Act.
2013, c.31, s.22
Regulations
19The Lieutenant-Governor in Council may make regulations
(a) prescribing additional duties of a board;
(b) establishing investment policies, standards and procedures for a nursing home pension plan;
(c) respecting the training and educational courses that a member of a board is to undertake;
(d) prescribing a dispute resolution process for the purposes of section 10;
(e) prescribing a funding policy for a nursing home pension plan including, without limiting the generality of the foregoing, cost-sharing arrangements between employers and employees, contributions from employers or employees and the timing, manner and amount of contributions, special payments that may be required to be made to a pension fund, by whom the special payments are to be made and the timing, manner and amount of the payments, and the management and use of any surplus in a nursing home pension fund;
(f) prescribing provisions of the Pension Benefits Act for the purposes of paragraph 17(2)(j);
(g) modifying, adapting or excluding from application any provision of the Pension Benefits Act or the regulations under that Act as it relates or applies to a nursing home pension plan;
(h) defining any term that is used but not otherwise defined in this Act;
(i) respecting any matter or thing the Lieutenant-Governor in Council considers necessary or advisable to carry out effectively the intent and purposes of this Act.
Commencement
20This Act or any provision of it comes into force on a day or days to be fixed by proclamation.
N.B. This Act was proclaimed and came into force July 15, 2010.
N.B. This Act is consolidated to December 20, 2019.