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4th Session, 40th Legislature

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Bill 29

THE CIVIL SERVICE SUPERANNUATION AMENDMENT ACT


  Bilingual version (PDF) 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. C120 amended

1           The Civil Service Superannuation Act is amended by this Act.

2(1)        The definition "Canada pensionable earnings" in subsection 1(1) is replaced with the following:

"Canada pensionable earnings" means for each calendar year after 1965 in which an employee has service, the salary of the employee for that year, or the maximum pensionable earnings for that year as determined under the Canada Pension Plan, whichever is the lesser; (« gains admissibles au Régime de pensions du Canada »)

2(2)        Subsection 1(1) is further amended

(a) in the definition "commuted value", by adding "board's" before "actuary"; and

(b) in the definition "deferred member", by striking out everything after "has not yet commenced".

3(1)        Subsection 2(5) is amended

(a) in the English version, by striking out "numerical" wherever it occurs;

(b) by adding "calendar" after "two consecutive"; and

(c) by striking out "December 31, 1983," and substituting "1983".

3(2)        Subsection 2(7) is amended

(a) in the description of T in the formula by striking out "numerical" wherever it occurs and substituting "calendar"; and

(b) in the English version of the descriptions of H and U in the formula by striking out "numerical" wherever it occurs and substituting "calendar".

3(3)        Subsections 2(9), (10), (11) and (13) are repealed.

4           Section 4 is replaced with the following:

Crown bound

4           This Act binds the Crown.

5(1)        Subsection 6(4.1) of the English version is amended by striking out "matching" and substituting "pre-funding".

5(2)        Subsection 6(5) is amended by replacing everything before clause (a) with the following:

Contributions to fund by pre-funding employers

6(5)        In each period during which an employee contributes to the fund by way of a deduction from salary, wages or other remuneration, the employer must contribute to the fund the amount determined under subsection (5.2) if

5(3)        Clause 6(5)(b) of the English version is amended by striking out "matching" and substituting "pre-funding".

5(4)        Subsection 6(5.1) of the English version is amended by striking out "matching" wherever it occurs and substituting "pre-funding".

5(5)        Subsection 6(5.2) is replaced with the following:

Pre-funding amount

6(5.2)      For the purpose of subsection (5), the amount the employer must contribute in respect of an employee for a period is the amount of the employee's contribution for the period less 0.9% of the employee's Canada pensionable earnings for the period.

5(6)        Subsection 6(5.3) of the English version is amended by striking out "matching" and substituting "pre-funding".

5(7)        Subsection 6(5.4) of the English version is amended by striking out "matching" and substituting "pre-funding" in the section heading and in the section.

5(8)        Subsection 6(6) is amended by striking out "The Civil Service Superannuation Board" and substituting "the board".

5(9)        Subsection 6(8) is repealed.

6           Subsection 9(3) is repealed.

7           Section 19 is repealed.

8           Subsection 20.1(1) is amended by adding "other" before "service" in the section heading.

9           Subsection 21(5) of the English version is amended by striking out "gov" and substituting "government" in the section heading.

10(1)       Subsections 21.1(1.2) and (1.3) are repealed.

10(2)       The following is added before subsection 21.1(2):

Provincial court judge or master

21.1(1.4)   Despite subsections (1) and (1.1), if an employee who is a provincial court judge or master of the Court of Queen's Bench is granted a period of parental leave or maternity leave, he or she shall continue to contribute to the fund as if he or she were not on leave.

10(3)       Subsection 21.1(2) is amended by striking out everything after "employee" and substituting "who continues to contribute to the fund in accordance with subsection (1), (1.1) or (1.4).".

10(4)       Subsections 21.1(3) and (4) are repealed.

11          Subsections 21.2(3) and (4) are repealed.

12          Section 21.5 is replaced with the following:

Only current employees eligible to purchase service

21.5        For certainty, only a person who is still an employee may purchase a period of service under a provision of this Act.

13(1)       Subsection 22(3) is repealed.

13(2)       Subsection 22(4) is amended by striking out "(3),".

13(3)       Subsection 22(6) is amended by striking out "subsection 37(2) and section 63 or either of those provisions" and substituting "section 63".

13(4)       Subsection 22(7) of the English version is amended in the part before clause (a) by striking out "Manitoba Employer" and substituting "Manitoba employer".

13(5)       Subsection 22(11) of the English version is amended by striking out "matching" wherever it occurs and substituting "pre-funding".

14          Section 23 is replaced with the following:

Payment of interest by employer

23(1)       Subject to subsections 6(5.1) and (5.4), an employer shall pay to the fund, on or before the last day of each month, an amount equal to

(a) the amount of any interest accumulated on contributions refunded in that month to any person under section 41 or 45 in respect of a person who

(i) died while he or she was employed by the employer, or

(ii) died after he or she retired and was employed by the employer when he or she retired; and

(b) the amount of the interest portion of an amount paid in that month to any person under subsection 29(6) in respect of a person who

(i) died while he or she was employed by the employer, or

(ii) died after he or she retired and was employed by the employer when he or she retired.

Amount payable by month end from Consolidated Fund

23(2)       An amount payable by the government under subsection (1) shall be paid out of the Consolidated Fund with money authorized by an Act to be so paid and applied.

15(1)       Subsection 26(1.2) is repealed.

15(2)       Subsection 26(1.3) of the English version is amended by striking out "matching" and substituting "pre-funding".

16(1)       Clause 28(1)(a) is amended by adding "and" at the end of subclause (ii) and by replacing subclauses (iii) and (iv) with the following:

(iii) applies to the board for the allowance within 185 days before ceasing to be an employee;

16(2)       Clause 28(1)(b) is replaced with the following:

(b) a deferred member who

(i) has reached the age of 55 years, and

(ii) applies to the board for an allowance within 185 days before the commencement date proposed in the application;

16(3)       Clause 28(1)(c) is amended by adding "and" at the end of subclause (iii) and by replacing subclauses (iv) and (v) with the following:

(iv) applies to the board for an allowance within 185 days before ceasing to be an employee;

16(4)       Subclause 28(1)(d)(iv) is replaced with the following:

(iv) applies to the board for an allowance and satisfies the board that he or she

(A) has a qualifying disability as defined in section 31, and

(B) is entitled to long term disability benefits or will no longer be an employee on the commencement date;

16(5)       Clause 28(1)(e) is amended by striking out "the end" and substituting "November 30".

16(6)       The following is added after subsection 28(1):

Notice must be in acceptable form and specify commencement date

28(1.1)     An application under this section must be in a form acceptable to the board and specify the date on which the applicant wants the superannuation allowance to commence.

16(7)       Subsection 28(3) is amended

(a) by replacing clauses (a) and (b) with the following:

(a) in the case of an allowance granted under clause (1)(a), (b) or (c), the later of the commencement date proposed in the person's application and the date on which the person becomes eligible for the allowance;

(b) by renumbering clause (c) as clause (b); and

(c) in clause (d), by renumbering it as clause (c) and by striking out "the last day" and substituting "December 1".

17(1)       Subsection 29(1) is amended, in the part before clause (a), by striking out "section 30" and substituting "sections 29.1 and 30".

17(2)       Subsection 29(2) is repealed.

17(3)       Subsection 29(3) is amended

(a) in the part of clause (a) before subclause (i), by striking out "by the amount of the net accrued liability of the fund"; and

(b) in clause (b), by striking out everything after "allowance" and substituting "as of the commencement date.".

17(4)       Subsection 29(5) is amended by striking out everything after "payments become payable" and substituting "to the recipient's estate.".

17(5)       The following is added after subsection 29(5):

Transitional

29(5.1)     Despite subsection (5), if a person became entitled to annuity payments under that subsection before January 1, 2016, those annuity payments are payable to that person and not to the estate referred to in that subsection.

17(6)       Subsection 29(6) is replaced with the following:

Lump sum

29(6)       On the application of a person entitled to receive annuity payments under subsection (4) or (5) as a result of the death of a member or recipient, the board may pay the applicant a lump sum equal to the commuted value of the remaining annuity payments, plus interest to the date of payment. The commuted value is to be determined as of the first day of the month following the month in which the death occurred.

17(7)       Subsection 29(10) is replaced with the following:

References to "spouse or common-law partner"

29(10)      In this section, "spouse or common-law partner" of a member means the individual who is the member's spouse or common-law partner at the time that the member applies for an optional annuity under subsection (1).

18          Section 29.1 is replaced with the following:

Notice of decision required

29.1(1)     A member who is eligible for a superannuation allowance must give the board notice, in a form acceptable to the board, of his or her decision to elect an optional annuity under section 29 or to receive the allowance calculated in accordance with section 26.

Time for providing notice of decision

29.1(2)     The notice must be given before the commencement date for the allowance. However, a member who is granted a disability allowance under clause 28(1)(d) may provide the notice up to 30 days after the board gives the member a written notice confirming the allowance has been approved.

Default if election not made

29.1(3)     A member who does not provide the notice within the time permitted is deemed to have elected

(a) the annuity under clause 29(1)(b) (joint annuity — 2/3 pension to survivor), if at the commencement date the member has a spouse or common-law partner and they are not living separate and apart by reason of a breakdown in their relationship; and

(b) in any other case, the annuity under clause 29(1)(d) (minimum 10-year pension).

19          Subclause 29.2(2)(a)(ii) is replaced with the following:

(ii) the actuarial value, as at that date, of the monthly CPP pension that would become payable to the member, if

(A) the CPP pension were commenced when the member reached the age of 60,

(B) the CPP pension were based only on the member's service under this Act, and

(C) no changes were made to the Canada Pension Plan;

20          Subsection 29.3(1) is amended by striking out "to whom a superannuation allowance or annuity becomes payable under this Act before reaching" and substituting "whose superannuation allowance or annuity is to commence before January 1, 2016, and before the member reaches".

21(1)       Subsections 35(1.1) to (4) are repealed.

21(2)       Subsection 35(5) is replaced with the following:

Determining length of service

35(5)       An employee's length of service shall be computed for the purposes of this Act from the date on which the employee first contributed to the fund.

21(3)       Subsection 35(6) is repealed.

21(4)       Subsection 35(7) is replaced with the following:

Leave of absence not counted

35(7)       Subject to section 21, any period of leave of absence without salary granted to an employee or any period of suspension of an employee without pay shall not be included in computing the employee's length of service for the purposes of this Act.

21(5)       Subsection 35(9) is amended

(a) in the section heading, by adding "with partial pay" at the end; and

(b) by replacing clause (b) with the following:

(b) in computing the length of service of the employee for the purposes of this Act, only that portion of the period of leave shall be included which bears the same proportion to the full period as the portion of the employee's salary of which he or she is in receipt during the leave of absence bears to his or her full salary.

22(1)       Subsection 36(1) is amended

(a) by striking out "after May 1, 1939" in the section heading;

(b) by striking out "on or after May 1, 1939,";

(c) in the English version by adding "or she" after "he"; and

(d) in the English version by adding "or her" after "on his".

22(2)       Subsection 36(2) is repealed.

23          Section 37 is repealed.

24          Section 41 is amended, in the part after clause (d), by striking out "out of the fund in the manner and to the persons specified in section 50" and substituting "to the deceased's estate".

25          Subsection 42(1) is amended, in the part before clause (a), by striking out "normal" and substituting "maximum".

26(1)       Subsection 43(1) of the English version is amended in the part before clause (a) by striking out "of service," and substituting "of service".

26(2)       The following is added after subsection 43(2):

Transferred amount may not be repaid

43(3)       No person is entitled to

(a) repay to a money purchase account an amount transferred to the account under clause (1)(a) — or any portion of such an amount — that has been withdrawn from the money purchase account under subsection 64(5); or

(b) repay to the fund an amount that has been refunded or transferred under clause (1)(b).

However, this subsection does not apply to an amount to which subsection 20(2) applies.

27(1)       Subsections 50(1) and (2) are repealed.

27(2)       Subsection 50(3) is replaced with the following:

Interest on payments

50(3)       If an amount is payable under section 41 or subsection 45(5), the board must pay interest on that amount from the date of death to the date of payment.

28          Subsection 53.1(7) of the English version is amended by striking out "matching" and substituting "pre-funding".

29(1)       Subsection 63(1) is repealed.

29(2)       Subsection 63(2) is amended

(a) by striking out the first occurrence of "or retired employee";

(b) by striking out "including employment prior to May 1, 1939,";

(c) by striking out "or retired employee or by a recipient in respect of the employee or retired employee";

(d) by striking out "or retired employee or recipient, as the case may be,"; and

(e) in the English version by striking out the last occurrence of "or retired employee".

29(3)       Subsections 63(2.1) and (2.2) are repealed.

29(4)       Subsection 63(3) is amended by replacing everything before clause (a) with the following:

Where application to be granted

63(3)       The board shall grant an application under subsection (2) if

29(5)       Subsection 63(3) is further amended

(a) in clause (a), by striking out "in accordance with the regulations made under this section";

(b) by adding "and" at the end of paragraph (a)(ii)(B); and

(c) by replacing clause (b) with the following:

(b) the employee agrees in writing to pay to the fund — in a lump sum or by such instalments as may be prescribed in the regulations made under this section — the amount determined in accordance with the following formula:

A = C × S × Y

In this formula

A   is the amount payable to the board;

C   is the contribution rate applicable under clause 17(1)(b) to earnings in excess of Canada pensionable earnings;

S   is the employee's annual salary rate as of the date of the application;

Y   is number of years of employment included in the application, including parts of years expressed in decimals.

29(6)       Subsection 63(4) is amended by striking out everything after "service at retirement".

29(7)       Subsection 63(5) is repealed.

29(8)       Subsection 63(6) is amended by striking out everything after "date of death".

29(9)       Subsections 63(7), (9) and (10) are repealed.

30          Subsection 66.1(5) is repealed.

31(1)       Subsection 69(1) is replaced with the following:

Definitions

69(1)       The following definitions apply in this section.

"disability superannuation allowance" means a superannuation allowance granted under clause 28(1)(d). (« allocation de retraite pour invalidité »)

"long term disability benefit" means a benefit payable to a person under a program. (« prestations d'invalidité à long terme »)

"program" means a program for long term disability benefits — other than a disability superannuation allowance — provided, under a contract of insurance or otherwise, by one of the following for its employees:

(a) the government;

(b) an agency of the government;

(c) a service provider. (« programme »)

"service provider" means a service provider as defined in The Real Property Act whose employees are deemed to be in the civil service for the purpose of this Act. (« fournisseur de services »)

31(2)       Clause 69(2)(a) is amended

(a) in subclause (i) by striking out "benefit under a program," and substituting "benefit"; and

(b) in subclause (iii), by striking out "under this Act".

31(3)       Subsection 69(3) is amended by striking out "the person pursuant to the regulations made under subsection (2), the government, or the agency of the government" and substituting "a person pursuant to the regulations made under subsection (2), the government, agency of the government or service provider".

31(4)       Subsection 69(4) is amended

(a) in clause (a) of the English version, by striking out "attaining" and substituting "obtaining"; and

(b) in clause (b), by striking out "superannuation allowance under clause 28(1)(d)" and substituting "disability superannuation allowance".

31(5)       Subsection 69(5) is amended by striking out "and subsections".

Coming into force: royal assent

32(1)       This Act, except sections 16, 17 and 18, comes into force on the day it receives royal assent.

Coming into force: sections 16, 17 and 18

32(2)       Sections 16, 17 and 18 come into force on January 1, 2016.

Explanatory Note

This Bill contains a number of changes to The Civil Service Superannuation Act (the "Act").

Old Age Security Integration

The Act allows a member who retires before becoming entitled to the Canada Pension Plan (CPP) or Old Age Security (OAS) to elect to integrate his or her superannuation allowance with CPP or OAS benefits. In light of recent federal changes providing for OAS benefits to commence at age 67, integration with OAS benefits will not be allowed for pensions commencing on or after January 1, 2016. (section 20)

Clarifying Disability Entitlement

The Act contemplates that the board may provide additional pensions to persons who have received long term disability benefits under an employer's program. Amendments are made to ensure that the additional pension provisions apply to employees of a service provider, such as Teranet. (section 31)

Application for a Pension

Under current law, the time within which a member must apply for an allowance differs depending on which set of qualifying criteria the member meets. This Bill resolves that inconsistency by specifying that an application for a pension, other than a disability allowance, must be made within 185 days prior to the date on which the member wants the pension to commence. (section 16)

Members may select the basic superannuation allowance (payable for the life of the member) or one of a number of optional annuities. This Bill requires the member to specify a choice before the commencement date of the pension. If the member does not specify a choice, the member is deemed to have selected a pension which provides survivorship benefits for his or her spouse or common-law partner (as required under The Pension Benefits Act) or a minimum ten-year annuity if the member does not have a spouse or common-law partner. (subsection 17(1) and section 18)

Miscellaneous Amendments

The employee contributions to be made by judges and masters while on parental and maternity leave is clarified. (subsections 10(2) and (3))

When a member dies, a spouse or other person may become entitled to receive annuity payments to which the member was entitled. Under current law, when the spouse or other person dies the remaining annuity could become payable to the member's estate, which might have been wound up some time earlier. This Bill provides greater planning certainty by specifying that on the death of the spouse or other person, the annuity becomes payable to the recipient's estate rather than to the member's estate. (subsections 17(3) and (4))

This Bill repeals an obsolete provision that permits the board to pay a small portion of a death benefit to the deceased's spouse or common-law partner rather than to the member's estate. (sections 24 and 27)

A member who has contributed more than 50% of the commuted value of the pension may be entitled to receive the excess either by way of refund or transfer to a money purchase account. This Bill clarifies that an amount refunded to the person or withdrawn from the money purchase account may not subsequently be repaid by the member. (section 26)

There are a variety of circumstances in which an employee may "purchase service" to increase the value of the employee's pension. Payment for such service may be made in whole or by instalment. This Bill clarifies that it is only while the employee is employed that he or she can purchase or pay for such service. If the person retires or dies before making full payment in respect of the service being purchased, only that portion of the service that has been paid for is taken into account for the purpose of the pension. (section 12 and subsections 29(1) and (8))

Various amendments clarify meaning, improve readability or modernize language.

Provisions that no longer have effect are repealed and provisions with outdated references are amended.