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The Civil Service Superannuation Amendment Act

S.M. 1989-90, c. 59

Bill 80, 2nd Session, 34th Legislature

The Civil Service Superannuation Amendment Act

(Assented to March 15, 1990)

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.

Subsection 1(1) amended

2           Subsection 1(1) is amended by adding the following definitions in their appropriate alphabetical positions:

"child" includes

(a) a natural child,

(b) an adopted child, and

(c) a stepchild,

of a legal marriage or a declared common-law relationship; («enfant»)

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; («ministre»).

Subsections 5(5) to (8) rep. and sub.

3           Subsections 5(5) to (8) are repealed and the following subsections are substituted:

Election of employee representatives

5(5)        The Lieutenant Governor in Council may make regulations providing for the method of election by employees of the four members of the board representing employees, and the members elected in accordance with those regulations shall hold office for a term of three years commencing on April 1 of the year in which they are elected.

Appointment of employer representatives

5(6)        The Lieutenant Governor in Council shall appoint the five members of the board representing employers and shall designate one of the members so appointed as chairperson of the board, and the members so appointed shall hold office for such term as may be fixed by the Lieutenant Governor in Council and shall continue to hold office thereafter until their successors are appointed.

Remuneration of members

5(7)        Those members of the board, including the chairperson, who are not employees of the government or of an agency of the government, or of another employer whose employees are contributing to the fund, shall be paid such remuneration for their services to the board as the Lieutenant Governor in Council may prescribe.

Expenses of members

5(8)        The members of the board, including the chairperson, may be reimbursed for such out-of-pocket expenses as they may actually incur in attending meetings of the board or otherwise in the discharge of their duties under this Act.

Subsection 6(1) rep. and sub.

4           Subsection 6(1) is repealed and the following subsections are substituted:

Appointment of professional personnel

6(1)        Subject to subsection (1.1), the board may appoint an actuary and such other professional advisors as it deems necessary for the administration of this Act and shall fix their remuneration.

Approval of L.G. in C.

6(1.1)      The appointment of the actuary under subsection (1) shall be subject to the approval of the Lieutenant Governor in Council.

Employment of staff

6(1.2)      The board may employ such additional personnel, other than the personnel appointed under subsection (1), as it deems necessary for the administration of this Act.

Job classifications and pay plans

6(1.3)      The job classifications and pay plans applying to persons employed under subsection (1.2) shall be as nearly as possible the same as the job classifications and pay plans established under sections 7 and 10 of The Civil Service Act, and the classification and pay of each of the persons within those job classifications and pay plans shall be determined by the board.

Subsection 6(3) amended

5           Subsection 6(3) is amended

(a) by striking out "any employee" in clauses (a), (b), (c), (j), (k) and (m) and, in each case, substituting "employees";

(b) by striking out clause (e) and substituting the following clause:

(e) any employee of The National Union of Provincial Government Employees specifically designated by the Lieutenant Governor in Council;

and

(c) by adding the following clause after clause (m):

(n) employees of an agency of the government.

Subsection 6(5) rep. and sub.

6           Subsection 6(5) is repealed and the following subsection is substituted:

Contributions to fund by certain employers

6(5)        Where a person is, by reason of subsection (3) except clauses (a) and (b) thereof, deemed to be in the civil service for the purposes of this Act and as such contributes to the fund, the employer of the person or the association, board, commission, council, union, labour union, organization, district or authority of which the person is a member, officer or resident administrator, as the case may be, shall, in each period during which the person contributes to the fund by way of deduction from salary, wages or remuneration, contribute to the fund an amount that is equal to the amount contributed by the person but is not required to contribute to the fund in respect of the person under subsection 22(2) or 23(2).

Section 10.1 added

7           The following section is added after section 10:

Definitions

10.1(1)     In this section,

"Advisory Committee" means the Employer Pension and Insurance Advisory Committee; («Comité consultatif»)

"Liaison Committee" means the Superannuation and Insurance Liaison Committee. («Comité de liaison»)

Liaison Committee

10.1(2)     The Superannuation and Insurance Liaison Committee, consisting of the persons who are from time to time the members thereof in accordance with its constitution, heretofore established to represent employees and pensioners in consultations with the Advisory Committee respecting pension benefits under this Act and proposals for changes thereto, is continued under the same name and with the same purpose and function.

Liaison Negotiating Committee

10.1(3)     The Liaison Negotiating Committee, consisting of the persons elected from time to time by the members of the Liaison Committee from among themselves, heretofore established to carry on the functions of the Liaison Committee for and on behalf of the Liaison Committee, is continued under the same name and with the same purpose and function.

Advisory Committee

10.1(4)     The Employer Pension and Insurance Advisory Committee, heretofore established to represent, in the consultations mentioned in subsection (2), those employers to which subsection 6(5) or 22(9) applies, is continued under the same name and with the same purpose and function.

Expenses of Liaison Committee

10.1(5)     The expenses of the Liaison Committee necessary to perform its function with respect to the Act shall be paid out of the fund.

Regulations

10.1(6)     The minister may make regulations for the purposes of this section

(a) respecting the membership of the Liaison Committee and the Liaison Negotiating Committee;

(b) respecting the expenses of the Liaison Committee necessary to perform its function.

Subsection 15(1) rep. and sub.

8           Subsection 15(1) is repealed and the following subsections are substituted:

Payments from fund

15(1)       Payment of

(a) all superannuation allowances, annuities and pensions;

(b) all refunds;

(c) all transfers of credits; and

(d) subject to subsections (1.1) to (1.6), all administrative costs of the board;

under this Act shall be made out of the fund.

Administrative costs of pension benefits

15(1.1)     Those administrative costs of the board that relate to the administration of this Act shall be paid by employers and employees on an equal basis and subject to subsections (1.2) to (1.6).

Share of contributing employers

15(1.2)     For the purposes of subsection (1.1), the share of those employers who have paid their contributions into the fund shall be paid out of the fund.

Share of non-contributing employers

15(1.3)     For the purposes of subsection (1.1), the share of the administrative costs of those employers who have not paid their contributions into the fund shall be paid by the employers, on a monthly basis, to the board directly, in accordance with the following formula:

A = BX C

  D

In this formula,

A

is the amount payable to the board;

B

is one half of the monthly administrative cost;

C

is the number of the employees of the government or the individual agency of the government who were, on the preceding December 31, contributing to the fund; and

D

is the total number of the employees who were, on the preceding December 31, contributing to the fund.

Share of employees

15(1.4)     For the purposes of subsection (1.1), the employees' share shall be paid out of the fund.

Credit to employers

15(1.5)     The share of any employer, whether paid under subsection (1.2) or (1.3), shall be credited with the fair value of any thing provided by the employer to the fund for its use free of charge in a form other than money.

Investment of employee contributions

15(1.6)     The expression "administrative costs" in this section does not include costs relating to the investment of the money in the fund or expenses of the Liaison Committee.

Subsection 22(2) amended

9           Subsection 22(2) is amended by striking out "Subject to subsection 6(4)" and substituting "Subject to subsection 6(5)".

Heading of subsection 26(2) amended

10          The heading of subsection 26(2) is amended by striking out "Best" and substituting "Last".

Subsection 31(10) rep. and sub.

11          Subsection 31(10) is repealed and the following subsection is substituted:

Re-entry into service after disability

31(10)      Where an employee receives an allowance under subsection (4) or (5) and is subsequently re-employed in the civil service, the account of the employee in the fund and the employee's rights thereunder shall be reinstated in the same position as near as may be to that in which they were at the time of the employee's leaving the service, but the period during which the employee was in receipt of an allowance shall not be considered in computing the employee's total length of service for the purposes of this Act.

Subsections 31(11), (12) and (13) repealed

12          Subsections 31(11), (12) and (13) are repealed.

Subsection 33(5) amended

13          Subsection 33(5) is amended by striking out "the percentage increase" in clause (a) and substituting "subject to subsection (5.1), the percentage increase".

Subsection 33(5.1) added

14          Section 33 is amended by adding the following subsection:

Calculation for 20 year pre-funding

33(5.1)     Whenever in the opinion of the actuary the superannuation adjustment account is not in a state of pre-funding sufficient to ensure its ability to make all required adjustment payments on a continuing basis for the immediately ensuing period of 20 years, the percentage increase used under clause (5)(a) in calculating the benefit index under subsection (5) shall be reduced by one third.

Subsection 33(6) rep. and sub.

15          Subsection 33(6) is repealed and the following subsection is substituted:

Approval of benefit index

33(6)       A benefit index calculated under subsection (5) or (5.1) does not become effective until it is approved by the board and may at any time before it becomes effective, upon the recommendation of the actuary and if the board deems it warranted by prevailing circumstances and except where the Lieutenant Governor in Council directs that the amendment shall not be made, be amended by the board to reduce the amounts thereof to such lesser amounts as the board deems advisable.

Subsection 33(7) amended

16          Subsection 33(7) is amended by striking out "Subject to subsection (8)," and substituting "Subject to subsections (7.1) and (8),".

Subsection 33(7.1) added

17          Subsection 33 is amended by adding the following subsection:

Calculation for 20 year pre-funding

33(7.1)     Whenever in the opinion of the actuary the superannuation adjustment account is not in a state of pre-funding sufficient to ensure its ability to make all required adjustment payments on a continuing basis for the immediately ensuing period of 20 years, the percentage increase used in I of the formula set out in subsection (7) shall be reduced by one third.

Subsection 33(10) added

18          Section 33 is amended by adding the following subsection:

Funding of adjustment account

33(10)      The surplus in the fund as at December 31, 1986, shown in the actuarial report of the fund as at that date to be $31,788,810., shall be transferred to the superannuation adjustment account on January 1, 1989 subject to the following conditions, to be used for funding adjustments made on or after July 1, 1990:

(a)Out of the surplus so transferred, the board may authorize $8,156,600., being that portion of the surplus attributed to the excess investment earnings on the assets supporting the liabilities for participants who were receiving pension benefits during the valuation period ending December 31, 1986, to be used, if required, to finance superannuation adjustments calculated in accordance with subsection (5).

(b)Where the $8,156,600. authorized to be used under clause (a) is insufficient to pay the required superannuation adjustments, the board may authorize such additional amount out of the surplus so transferred that, as determined by the actuary, may be attributed to the excess investment earnings on the assets supporting the liabilities for participants who began receiving pension benefits subsequent to December 31, 1986, to be used to finance superannuation adjustments calculated in accordance with subsection (5).

(c)Any balance remaining out of the surplus so transferred, after using the amounts, if any, authorized under clauses (a) and (b), shall remain in the adjustment account until the actuary is satisfied that 20 year pre-funding of the adjustment account on a continuing basis has occurred, and while so held in the adjustment account the balance shall be credited with the adjustment account's prevailing rate of return.

Subsection 35(13) added

19          Section 35 is amended by adding the following subsection:

Qualifying service

35(13)      The total of the periods of continuous employment that a person has in the fund shall be used to determine the person's eligibility for benefits accrued

as a result of separate periods of service.

Subsection 38(1) amended

20          Subsection 38(1) is amended by striking out clause (c) and substituting the following:

(c) where section 32 applies;.

Section 41 amended

21          Section 41 is amended by striking out "and the supplementary allowance payable under section 32," and substituting "the supplementary allowance payable under section 32 and any excess employee contributions previously paid,".

Subsection 42(1), (2), (3), (5), (8) and (10) amended

22          Section 42 is amended by striking out "five" in subsections (1), (2), (3), (5), (8) and (10) and, in each case, substituting "two".

Subsection 42(11) rep. and sub.

23          Subsection 42(11) is repealed and the following subsection is substituted:

Accruals on refunds

42(11)      Where a refund of contributions becomes payable to any person under subsection (5) or clause (10)(a) for contributions made from 1970 to 1983 both years inclusive, there shall be credited to that person's account shown in the accounts of the fund as required under section 12 an amount which bears the same proportion to three per cent of the amount in that person's account on January 1 of the year in which the refund becomes payable as

(a) in the case of an employee to whom subsection (5) or clause (10)(a) applies, the employee's service for that year to the date the board processes the employee's refund voucher bears to a full year; and

(b) in the case of an employee to whom subsection (13) applies, the portion of that year up to the date on which the employee's application under subsection (13) is received by the board bears to a full year.

Subsection 42(20.1) added

24          Section 42 of the Act is amended by adding the following subsection:

Accruals on contributions made prior to 1984

42(20.1)    For the purposes only of determining the amount of accruals payable under subsection (5) or under clause (10)(a), each separate account for an employee shown in the accounts of the fund as required under section 12 shall, in addition to the contributions made by the employee, be credited on December 31 of each year from 1970 to 1983, both years inclusive, with

(a) an amount equal to three per cent of the amount at the credit of the employee's account on January 1 in that year; and

(b) an amount equal to one and one-half per cent of the amount of contributions made by the employee during that year.

Subsection 42(23) added

25          Section 42 is amended by adding the following subsection:

Benefit under $25. per month

42(23)      A terminating or retiring employee whose lifetime pension benefit is under $25. per month may elect to receive, instead of the monthly allowance, a cash refund or transfer of an amount equal to the commuted value of the pension benefit.

Subsection 53(6) rep. and sub.

26          Subsection 53(6) is repealed and the following subsection is substituted:

Selection of best five years

53(6)       The best five years of service used in calculating the amount of a superannuation allowance, in the case of a person to whom subsection (2) applies, shall be selected from the last 12 years of service combined under that subsection.

Subsection 55(1) rep. and sub.

27          Subsection 55(1) is repealed and the following subsection is substituted:

Proof of age

55(1)       Every employee who has not previously supplied proof of age shall furnish proof of age satisfactory to the board

(a) upon reaching the age of 50 years; or

(b) upon beginning to make contributions to the fund if the contributions begin after the employee reaches the age of 50 years; or

(c) upon applying for a disability pension under section 31 or making an election under subsection 42(10), if proof of age was not furnished under clause (a) or (b);

and at such other times as the board may require, and, unless the employee has furnished proof of age in accordance with this subsection, the date on which the employee reaches the age of 50 years shall be determined on the basis of the date of the employee's birth on record with the employee's employer.

Coming into force of Act

28(1)       Subject to subsections (2), (3), (4) and (5), this Act comes into force on the day it receives the royal assent.

Coming into force of section 8

28(2)       Section 8 comes into force on July 1, 1990.

Coming into force of section 18

28(3)       Section 18 is retroactive and is deemed to have been in force on and from January 1, 1989.

Coming into force of section 22

28(4)       Section 22 comes into force on January 1, 1990.

Coming into force of sections 23 and 24

28(5)       Sections 23 and 24 are retroactive and are deemed to have been in force on and from October 19, 1988.