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Second Session, Thirty-Eighth Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.
It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications.

Bill 46

THE TEACHERS' PENSIONS AMENDMENT ACT


Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. T20 amended

1           The Teachers' Pensions Act is amended by this Act.

2           Subsection 41(5) is replaced with the following:

Appointment of members nominated by society

41(5)       Three of the board members must be appointed from a list of nominees provided to the minister by the society.

3(1)        The following is added after subsection 52(1.1):

Contributions on salary above maximum for accrual of defined benefit

52(1.2)     The board must account separately for a teacher's contributions on salary exceeding the maximum salary for which a defined benefit can be accrued under this Act.  Despite sections 47 and 48, those contributions are not to be credited to Account A or Account B, but are to be credited with the average rate of return earned by the fund and

(a) refunded to the teacher when his or her pension commences; or

(b) if the teacher and the employer agree, used to provide the additional pension benefits that would be payable if there were no maximum limit to the salary on which a defined benefit could be accrued.

Transitional

52(1.3)     A former teacher who retired before subsection (1.2) came into force, but made contributions referred to in that subsection before it came into force, is entitled to a refund of those contributions together with interest at the average rate of return of the fund.

3(2)        Subsection 52(4) is replaced with the following:

No contributions during disability

52(4)       A teacher is not required to make contributions for a period of disability during which he or she

(a) is receiving a disability income under a group insurance plan in effect to provide disability income for teachers; and

(b) is not receiving a disability allowance under section 19 or 20.

Salary for computing pension benefit

52(4.1)     In computing the pension benefit of a teacher to whom subsection (4) applies, the teacher's salary rate for a period referred to in that subsection is the salary rate used in determining the teacher's initial disability income, but adjusted on July 1 in each year by the percentage that applies in determining a pension adjustment under subsection 10(7).

3(3)        Subsection 52(5) is repealed.

4           Subsection 62(1) is amended by striking out "and" at the end of clause (d) and replacing clause (e) with the following:

(e) any period of disability after June 30, 1980, and before July 1, 2004, in respect of which the teacher made contributions under subsection 46(2.1) of The Teachers' Pensions Act, R.S.M. 1970, c. T20, or under subsection 52(4) of this Act as it read before July 1, 2004; and

(f) any period of disability after June 30, 2004, during which subsection 52(4) applies to the teacher.

5           The following is added after subsection 63.1(2):

Transitional — former teacher's purchase of service for past maternity leave

63.1(3)     A former teacher whose pension commenced before August 18, 2000, and who before then was granted a period of maternity leave under a collective agreement or in accordance with her employer's policies may apply to the board to purchase service for the period by

(a) filing with the board before 2006 an application in a form prescribed by the board; and

(b) agreeing to contribute to the fund, as a lump sum, an amount equal to 1/2 the actuarial cost, as determined by the actuary, of providing the increase in the applicant's pension by reason of the increase in the applicant's service as a teacher for the purposes of this Act.

If approved, the adjustment to the applicant's pension takes effect as of the day the application was received by the board.

6           Subsection 63.2(2) is amended

(a) in the part of clause (a) before subclause (i), by striking out "was not contributing to a pension plan other than the Canada Pension Plan and"; and

(b) by striking out "and" at the end of subclause (a)(iv) and adding the following after clause (a):

(a.1) the purchaser must satisfy the board that he or she has no pensionable service for the period under any plan other than the Canada Pension Plan; and

7           The following is added after section 63.2:

Contributions during adoptive leave

63.3(1)     If a teacher who is granted a period of adoptive leave under a collective agreement or in accordance with the employer's policies so elects before the period begins,

(a) the teacher shall contribute to the fund throughout the period as if he or she were not on leave and continued to earn the same salary; and

(b) the period shall be included in computing the teacher's years of service.

Teacher's purchase of service for past adoptive leave

63.3(2)     A teacher who was granted a period of adoptive leave referred to in subsection (1) and did not elect to make contributions under that subsection for that period may, if he or she has neither received a refund of contributions nor begun to receive a pension, purchase the service for the period by

(a) filing with the board, within 18 months after the later of

(i) the day the period of leave ended, and

(ii) the day this section came into force,

an application in a form prescribed by the board; and

(b) agreeing to contribute to the fund, as a lump sum or by instalments as determined by the board, the amount that would have been the teacher's total contributions for the period if

(i) the teacher's annual salary rate during the period had been equal to his or her annual salary rate as at the date of the application, and

(ii) the teacher's contribution rates applicable to the period were the rates applicable to a period of service after 2000.

Transitional — former teacher's purchase of service for past adoptive leave

63.3(3)     A former teacher whose pension commenced before this section came into force and who before then was granted a period of adoptive leave under a collective agreement or in accordance with the employer's policies may apply to the board to purchase the service for the period by

(a) filing with the board before 2006 an application in a form prescribed by the board; and

(b) agreeing to contribute to the fund, as a lump sum, an amount equal to 1/2 the actuarial cost, as determined by the actuary, of providing the increase in the applicant's pension by reason of the increase in the applicant's service as a teacher for the purposes of this Act.

If approved, the adjustment to the applicant's pension takes effect as of the day the application was received by the board.

Refund or credit

63.3(4)     The board shall refund or credit to a teacher who, before subsection (1) came into force, made a contribution to the fund to purchase service for a period of adoptive leave described in that subsection

(a) an amount equal to 1/2 the contribution; and

(b) interest on that amount, as determined by the board's actuary.

Contributions during paid short term leave

63.4        A teacher who is on a short term leave of absence with full or partial pay must continue to make contributions and is to be credited with service as if the leave had not occurred.

Coming into force

8(1)        Subject to subsections (2) and (3), this Act comes into force on the day it receives royal assent.

Coming into force: sections 3(2), 3(3) and 4

8(2)        Subsections 3(2) and (3) and section 4 come into force on July 1, 2004.

Coming into force: section 63.4

8(3)        Section 63.4, as enacted by section 7, is deemed to have come into force on August 1, 2001.

Explanatory Note

This Bill amends The Teachers' Pensions Act in the following subject areas:

  • membership on The Teachers' Retirement Allowances Fund Board;
  • members' contributions on salary above the maximum salary for which a defined benefit can be accrued;
  • contributions and pension benefit accrual during periods of disability;
  • purchase of service for past leaves;
  • purchase of service for adoptive leave;
  • contributions during short term leave.