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The Civil Service Superannuation Amendment, Public Servants Insurance Amendment and Teachers' Pensions Amendment Act

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If you need an official copy, contact Statutory Publications.

S.M. 1996, c. 55

THE CIVIL SERVICE SUPERANNUATION AMENDMENT, PUBLIC SERVANTS INSURANCE AMENDMENT AND TEACHERS' PENSIONS AMENDMENT ACT


 

(Assented to November 19, 1996)

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

PART 1

THE CIVIL SERVICE SUPERANNUATION ACT

C.C.S.M. c. C120 amended

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

2         The following heading is added before section 1:

PART 1

REGISTERED PENSION PLAN

3         The following definition is added in alphabetical order in subsection 1(1):

"correctional officer" means an employee within the meaning of The Civil Service Act who is part of the Corrections Component of the Government Employees' Master Agreement; (« agent de correction »)

4         The following is added after subsection 2(11):

Reduced work week program

2(12)     Notwithstanding any days of leave without pay that an employee must take by virtue of a reduced work week program established by the government or an agency of the government pursuant to an Act, collective agreement or other lawful arrangement, the employee accumulates pensionable service and earnings under this Act as though those days were normal working days.

Contribution exemption

2(13)     Employees are not required to make contributions under this Act for days of leave without pay taken under the authority of The Public Sector Reduced Work Week and Compensation Management Act, and the amounts required to equal those contributions shall be paid out of the surplus of the fund.

5         Subsection 5(5) is repealed and the following is substituted:

Election of employee representatives

5(5)      The Lieutenant Governor in Council may make regulations

(a) providing for the election by employees of four members of the board to represent employees or groups of employees and prescribing procedures for those elections;

(b) respecting the eligibility of persons to nominate candidates for employee representative, to vote, to be elected as employee representative and to continue to hold office as an employee representative;

(c) respecting vacancies arising during the term of office of an elected employee representative which, unless earlier terminated in accordance with the regulations, shall be for three years beginning on September 1 of the year in which the employee is elected.

6         The following is added after section 5:

Administration in accordance with Income Tax Act

5.1       This Act shall be administered in accordance with the Income Tax Act (Canada) and, where there is a conflict between this Act and the Income Tax Act (Canada), the Income Tax Act (Canada) shall prevail.

7         Subsection 13(5) is repealed and the following is substituted:

Rate of interest

13(5)     For the purposes of this section, the rate of interest to be credited to the superannuation adjustment account shall be determined in accordance with such method as the board may determine.

8         The following is added after section 17:

Correctional officers' contributions

17.1(1)   Every correctional officer shall, by reservation and deduction from his or her salary, contribute to the fund, in addition to amounts required under subsection 17(1), 1% of his or her salary.

Percentage may be adjusted

17.1(2)    The Lieutenant Governor in Council may, on the recommendation of the actuary, adjust the percentage of salary required to be contributed under subsection (1).

Separate account

17.1(3)   The board shall maintain a separate account within the fund for contributions made under subsection (1), and the rate of interest to be credited to the account shall be determined in accordance with such method as the board may determine.

Costs

17.1(4)   Costs associated with retirements under subsection 28(4) shall be charged against the separate account established under subsection (3) until such time as the correctional officer could have retired in accordance with subclause 28(1)(a)(i), 28(1)(a)(ii), 28(1)(b)(i) or 28(1)(b)(ii).

Pension Benefits Act does not apply

17.1(5)   Clause 26(1)(a) of The Pension Benefits Act does not apply to this section.

9         The following is added after section 21:

Maternity leaves and parental leaves

21.1(1)   Where an employee is granted a maternity leave or a parental leave in accordance with The Civil Service Act or the policies of an agency of the government, if the employee so elects before beginning the leave, the employee shall continue to contribute to the fund amounts based on the percentage of the rate of annual salary that he or she was receiving immediately before the leave commenced, together with an amount equal to that amount, and the contributions shall be payable monthly by the employee to the fund.

Computation of service

21.1(2)   Subsection 21(4) applies with any necessary modifications to an employee who elects to continue to contribute to the fund as authorized in subsection (1).

Continuous employment

21.1(3)   An employee who was granted a maternity leave or a parental leave as described in subsection (1) before this section comes into force may apply on a form prescribed by the board to have the period of that leave included in computing the service of the employee for the purposes of this Act if the employee

(a) files his or her application with the board on or after May 1, 1997 and on or before October 31, 1998; and

(b) contributes to the fund an amount based on 6% of the person's rate of annual salary at the date of the application and an amount equal to that amount covering the period of the leave.

Computation of service

21.1(4)   Subsection 21(4) applies with any necessary modifications to an employee who elects to contribute to the fund as authorized in subsection (3).

Seasonal employees

21.2(1)   An employee whose work frequency is changed by the government or a government agency from full time to seasonal employment, if he or she so elects before beginning the seasonal employment, shall continue to contribute to the fund amounts based on the percentage of the rate of annual salary that he or she was receiving immediately before the seasonal employment commenced, together with an amount equal to that amount, and the contributions shall be payable monthly by the employee to the fund.

Computation of service

21.2(2)   Subsection 21(4) applies with any necessary modifications to an employee who elects to continue to contribute to the fund as authorized in subsection (1).

Continuous employment

21.2(3)   An employee whose work frequency was changed by the government or a government agency from full-time to seasonal before this section comes into force may apply on a form prescribed by the board to have his or her service computed for the purposes of this Act as though he or she had continued in full-time employment, if the employee

(a) files his or her application with the board on or after May 1, 1997 and on or before October 31, 1998; and

(b) contributes to the fund an amount based on 6% of the person's rate of annual salary at the date of the application and an amount equal to that amount, covering the period of reduced employment.

Computation of service

21.2(4)   Subsection 21(4) applies with any necessary modifications to an employee who elects to contribute to the fund as authorized in subsection (3).

Reduced hours in last five years of employment

21.3(1)   An employee who would be eligible within five years to receive a superannuation allowance under subclause 28(1)(a)(i) or (ii) or 28(1)(b)(i) or (ii) and who reduces his or her work frequency from full-time to less than full-time, if he or she so elects before reducing his or her hours of work, shall continue to contribute to the fund amounts based on the percentage of the rate of annual salary that he or she was receiving immediately before the reduced hours of work commenced, together with an amount equal to that amount.

Computation of service

21.3(2)   Subsection 21(4) applies with any necessary modifications to an employee who elects to continue to contribute to the fund as authorized in subsection (1).

Employer to verify

21.4      Where the board receives an application under section 21.1,  21.2 or 21.3, the board shall accept the application if the employer or former employer verifies that the person is eligible to purchase the applicable periods.

Former employees not eligible

21.5      Subsections 21.1(1) and (3), 21.2(1) and (3) and 21.3(1) do not apply to former employees.

Credit in respect of purchase

21.6      The board shall credit the sub-account of the government and each agency of the government, in the account, each month, in respect of purchases of service under sections 21.1, 21.2 and 21.3 with an amount equal to ½ of the amount paid by its employees.

10        The following is added after subsection 22(10):

Payments for employees of more than one agency

22(11)    Except as otherwise provided in this Act, where the board pays or transfers an amount from the fund in respect of an individual who ceases to be an employee on or after the day this subsection comes into force, it shall recover from the government or government agencies that employed the individual, other than an employer that made matching contributions in respect of the individual,  on a pro rata basis in accordance with the records of the board, ½ of the portion of the amount paid or transferred to the employee in respect of which no employer matching contributions were made.

11(1)     The following is added after subsection 26(1.1):

Calculation at December 31 or date of retirement

26(1.2)   The superannuation allowance payable under section 25 shall be the greater of

(a) the amount calculated under this section as at the date of retirement; and

(b) the amount calculated under this section as at December 31 immediately preceding the date of retirement.

11(2)     Subsection 26(3) is amended by striking out "an employee's last 12 years of".

12(1)     Subclause 28(1)(a)(iii) is repealed and the following is substituted:

(iii) where the allowance is to commence being paid before the employee satisfies any of the conditions set out in subclauses (i) and (ii), an annual superannuation allowance calculated in accordance with subsection 26(1) and reduced by the lesser of

(A) .0625% for each full month beginning with the day on which the allowance is to commence being paid up to and including the day the employee reaches the age of 60 years, and

(B) .25% for each full month beginning with the day on which the allowance is to commence being paid up to and including the day on which the employee satisfies or would satisfy any of those conditions, and

12(2)     The following is added after subsection 28(3):

Correctional officer's allowance

28(4)     The board shall grant to a correctional officer who is deemed to have retired under section 59.1, where the allowance is to commence being paid before the employee reaches the age of 60 years but the combination of the employee's age and service totals 75 or more, an annual superannuation allowance calculated in accordance with subsection 26(1).

13(1)     The following is added after subsection 42(2):

Maximum annuity under clause 42(2)(a), (b) or (c)

42(2.1)   The maximum monthly annuity payable on behalf of a deceased employee under clause (2)(a), (b) or (c) shall not exceed the maximum permitted by the regulations under the Income Tax Act (Canada), as amended from time to time.

13(2)     Clause 42(6)(a) is amended by striking out "1977" and substituting "1976".

13(3)     Subsection 42(23) is repealed and the following is substituted:

Option re pension benefit

42(23)    A benefit payable in respect of a terminating, retiring or deceased employee or former employee may be paid as a cash refund or transfer of an amount equal to the commuted value of the pension benefit in accordance with The Pension Benefits Act.

14(1)     Subsection 45(1) is amended

(a) in the part preceding clause (a), by striking out "subsections (2) and (3)" and substituting "subsection (3),"; and

(b)  in clause (a), by striking out ", subject to subsection (2)".

14(2)     Subsection 45(2) is repealed.

14(3)     Subsection 45(3) is amended by striking out "subsections (1) and (2)" and substituting "subsection (1)".

14(4)     The following is added after subsection 45(3):

Transfer to surviving spouse

45(4)     The surviving spouse of a deceased member may choose to transfer the commuted value of the benefits of the deceased member in accordance with The Pension Benefits Act instead of receiving a pension under the pension plan.

15        The following is added after subsection 53(1):

Application of section

53(1.1)   This section applies to every person who transferred under a reciprocating Manitoba employer arrangement before January 1, 1996.

16        The following is added after section 53:

Definition of "reciprocating employer"

53.1(1)   In this section, "reciprocating employer" means any employer in Canada that has established or is participating in any plan or scheme that provides pension or superannuation benefits for and in respect of its employees, if the board has entered into an agreement under subsection (3) with that employer.

Application of section

53.1(2)   This section applies to every person who transfers under a reciprocating employer arrangement entered into under subsection 53.1(3) on or after January 1, 1996.

Arrangements re periods of service

53.1(3)   The board may enter into an agreement with any reciprocating employer, or authority charged with the administration of a pension or superannuation benefits plan or fund for or in respect of employees of a reciprocating employer, whereby

(a) a person who becomes an employee under this Act after June 30, 1973 may, for the purposes of this Act, obtain credit for all or part of a period of service credited to him or her under the plan operating in respect of employees of the reciprocating employer; and

(b) a person who becomes employed with the reciprocating employer after June 30, 1973 may, for the purposes of any plan operating in respect of employees of that employer, obtain credit for all or part of a period of service as an employee under this Act.

Contents of agreement

53.1(4)   An agreement entered into under subsection (3) may include

(a) application deadlines or other dates to determine who is eligible to transfer benefits under the agreement;

(b) provisions respecting the amount of credit allowable for any prior period of employment, and the amount of moneys transferable between employers for the purposes of that credit;

(c) provisions concerning the calculation of the amount to be transferred between employers; and

(d) any other term or condition that the board considers appropriate.

Recovery of payments

53.1(5)   Where the board pays from the fund, in respect of a person who becomes employed by a reciprocating employer, an amount determined in accordance with an agreement entered into under subsection (3), it shall recover from the employer with whom the person was employed immediately before he or she ceased to be an employee within the meaning of this Act, and that employer shall pay to the board, an amount equal to 1/2 of the amount paid by the board in respect of that person in accordance with the agreement.

Retention of amounts received

53.1(6)   Where the board receives, in respect of a person who was previously employed by a reciprocating employer, an amount determined in accordance with an agreement entered into under subsection (3), it shall reduce the payments required under subsections 6(5), 22(1) and 22(2) by crediting the employer sub-account under subsection 66.1(1) for the employer with whom the person has become, following the termination of his employment with the reciprocating employer, an employee within the meaning of this Act, an amount equal to 1/2 of the amount received by the board in respect of that person in accordance with the agreement.

Employers under subsection 6(5)

53.1(7)   Subsections (5) and (6) do not apply to matching employers under subsection 6(5).

17        Subsection 53(6) is repealed.

18        Section 54 is renumbered as section 68.

19        The following is added after section 59:

Correctional officer

59.1      A correctional officer shall be deemed to have retired for the purposes of this Act if the correctional officer ceases to be an employee after he or she has reached the age of 50 years and his or her age and service total 75 or more.

20        Subsection 63(8) is repealed and the following is substituted:

Rate of interest

63(8)     For the purposes of this section, the rate of interest payable by members purchasing prior employment by instalment payments shall be determined in accordance with such method as the board may determine.

21(1)     Subsection 65(6) is repealed.

21(2)     Section 65 is renumbered as section 69.

22        Subsection 66.1(3) is repealed and the following is substituted:

Rate of interest

66.1(3)   For the purposes of this section, the rate of interest to be credited to each sub-account shall be determined in accordance with such method as the board may determine.

23        Section 67, as enacted by R.S.M. 1988, c. C120 and as amended by subsection 11(38) of S.M. 1989-90, c. 91, is repealed.

24        The following heading is added after section 67:

PART 2 OTHER

PART 2

THE PUBLIC SERVANTS INSURANCE ACT

C.C.S.M. c. P270 amended

25        The Public Servants Insurance Act is amended by this Part.

26        The following is added after section 12:

Transfer of surplus

12.1(1)   Where in the opinion of the actuary

a surplus exists in the fund, an amount may be paid out of the surplus to the government or a government agency, calculated in relation to the proportion that the number of their employees who are members of the fund bears to the total membership of the fund, if:

(a) in the case of employees who are represented by a recognized bargaining agent, an agreement to so use the surplus has been made between the recognized bargaining agent and the government or government agency; and

(b) in the case of employees who are not represented by a recognized bargaining agent, such use of the surplus has been approved by the government or the government agency.

Minister of Finance to receive amounts

12.1(2)   Amounts authorized to be paid under subsection (1) shall be paid to the Minister of Finance who shall pay them to the government or the affected government agency.

PART 3

THE TEACHERS' PENSIONS ACT

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

27        The Teachers' Pensions Act is amended by this Part.

28        Subsection 1(1) is amended

(a) in the definition "eligible survivor", by adding ", at the time of death of the teacher is a dependant" after "unmarried";

(b) by repealing the definition of "total and permanent disability"; and

(c) by adding the following definitions in alphabetical order:

"partial", where used in the expression "partial and permanent disability", means disability that is not so severe as to make the person incapable of pursuing any substantially gainful occupation but is so severe that the person is incapable of pursuing the occupation he or she pursued before the disability; (« partielle »)

"permanent", where used in the expression "total and permanent disability" or the expression "partial and permanent disability", means prolonged, in the sense that the disability is likely to be long, continued and of indefinite duration, or likely to result in death; (« permanente »)

"total", where used in the expression "total and permanent disability", means disability that is severe, in the sense that the person is incapable of pursuing any substantially gainful occupation; (« totale »)

29        The following is added after section 3:

Administration in accordance with Income Tax Act

3.1       This Act shall be administered in accordance with the Income Tax Act (Canada), and where there is a conflict between this Act and the Income Tax Act (Canada), the Income Tax Act (Canada) shall prevail.

30        Subsection 6(13) is amended by striking out "subsection (6) may" and substituting "subsections (6) and (6.1), may, subject to the requirements of the Income Tax Act (Canada) and the regulations under that Act".

31(1)     Subsection 8(1) is amended by adding "(1.1)," after "Subject to subsections".

31(2)     The following is added after subsection 8(1):

Maximum pension

8(1.1)    The maximum monthly pension paid to one or more eligible survivors under clause (1)(b) or (c) shall not exceed the maximum permitted by the regulations under the Income Tax Act (Canada) as amended from time to time.

32        The following is added after subsection 11(3):

Lump sum

11(3.1)   Where a person has selected a guaranteed allowance under clause 11(1)(a) and the designated beneficiary subsequently dies, the board may, instead of paying an optional pension or annuity,  on the application the legal personal representative, pay to him or her a lump sum calculated by the actuary and equal to the commuted value, at the date of the payment,  of the remaining unpaid instalments of the optional pension or annuity payable to the legal personal representative.

33        The following is added after subsection 26(5):

Payment as life annuity or transfer

26(5.1)   A payment under clause (5)(a) may be made as a life annuity or as a transfer of an amount equal to the commuted value of the pension benefit in accordance with The Pension Benefits Act.

34        Section 28 is repealed and the following is substituted:

Option re pension benefit

28        A benefit payable in respect of a terminating, retiring or deceased teacher or former teacher may be paid as a cash refund or transfer of an amount equal to the commuted value of the pension benefit in accordance with The Pension Benefits Act.

35        Section 37 is repealed and the following is substituted:

Annuity payable from contributions when not otherwise eligible

37        Where a person does not have service that entitles him or her to a pension at an age when he or she would otherwise be entitled, and the person has to his or her credit in the fund amounts that he or she has contributed or remitted in accordance with this Act, the person may apply for and receive from the fund

(a) an annuity in an amount that the board determines, on the basis of a report by the actuary, can be paid to him or her from the contributions and remittances made by that person together with interest thereon from the date of the contributions or remittances to the effective date of the payment at a rate of interest equal to the average rate of interest earned by the fund during that period; or

(b)  a refund of contributions and remittances made by that person together with interest thereon from the date of the contributions or remittances to the date of the payment at a rate of interest equal to the average rate of interest earned by the fund during that period.

36        Subsection 39(1) is repealed and the following is substituted:

Refund or pension or allowance for extra contributions

39(1)     Where a teacher has contributed to the fund under this Act or a former Act, more than he or she was required to contribute, the teacher may

(a) apply for, and receive, a refund of any contribution that he or she made to the fund in excess of what he or she was required to make, with interest thereon, from the date of the contribution to the date of the payment at a rate of interest equal to the average rate of interest earned by the fund during that period; or

(b) on becoming entitled to receive a pension or a disability allowance, apply for and receive from the fund, in addition to any pension or disability allowance he or she may receive under this Act, an annuity in an amount that the board determines, on the basis of a report by the actuary, can be paid to that teacher with the additional contributions made by the teacher, together with interest thereon from the date of the contribution to the effective date of the payment at a rate of interest equal to the average rate of interest earned by the fund during that period.

37        Subsection 50(9) is amended by adding ",for a term not exceeding 90 days" at the end.

38        The following is added after section 59:

Reduced work week program

59.1(1)   Notwithstanding any days of leave without pay that a teacher must take by virtue of a reduced work week program established pursuant to an Act, collective agreement or other lawful arrangement, the teacher accumulates pensionable service and earnings under this Act as though those days were normal working days.

Contribution exemption

59.1(2)   Teachers are not required to make contributions under this Act for days of leave without pay taken under the authority of The Public Sector Reduced Work Week and Compensation Management Act, and the amounts required to equal those contributions shall be paid out of the surplus of the fund.

39        The following is added after subsection 64(1):

Application of section

64(1.1)   This section applies to teachers and employees of reciprocating Manitoba employers who transferred under a reciprocating Manitoba employer arrangement before January 1, 1996.

40        The following is added after section 64:

Arrangements re periods of service

64.1(1)   The board may enter into an agreement with any reciprocating Manitoba employer charged with the administration of a pension or superannuation benefits plan or fund for or in respect of employees of a reciprocating Manitoba employer, whereby

(a) a person who becomes a teacher under this Act may, for the purposes of this Act, obtain credit for all or part of a period of service credited to him or her under the plan operating in respect of employees of the reciprocating Manitoba employer; and

(b) a person who becomes employed with the reciprocating employer may, for the purposes of any plan operating in respect of employees of that employer, obtain credit for all or part of a period of service as a teacher under this Act.

Application of section

64.1(2)   This section applies to teachers and employees of a reciprocating employer who transfer under a reciprocating employer arrangement entered into under subsection (1) on or after January 1, 1996.

Contents of agreement

64.1(3)   An agreement entered into under subsection (1) may include

(a) application deadlines or other dates to determine who is eligible to transfer benefits under the agreement;

(b) provisions respecting the amount of credit allowable for any prior period of employment, and the amount of money transferable between employers for the purposes of that credit;

(c) provisions concerning the calculation of the amount to be transferred between employers; and

(d) any other term or condition that the board considers appropriate.

Payments

64.1(4)   The board shall pay from the fund, in accordance with the regulations, amounts required to be paid by the board under an agreement entered into under subsection (1) and shall recover from the government, the association or the society, as the case may be, amounts determined in accordance with the regulations representing the liability of the government, association or society, as the case may be, in respect of service transferred to the plan or fund operating in respect of employees of a reciprocating employer, and the board shall pay to the fund, to the credit of Account A or Account B, in accordance with the regulations, any amounts received by the board under an agreement entered into under subsection (1).

PART 4

TRANSITIONAL AND COMING INTO FORCE

Transitional

41        The terms of office of persons who are representing employees on the board under subsection 5(5) of The Civil Service Superannuation Act on the day this section comes into force continue to August 31, 1997.

Coming into force

42(1)     Subject to subsections (2) to (7), this Act comes into force on the day it receives royal assent.

42(2)     Section 4 is retroactive and is deemed to have come into force on January 1, 1993.

42(3)     Section 10 comes into force on a day fixed by proclamation.

42(4)     Section 16 is retroactive and is deemed to have come into force on January 1, 1996.

42(5)     Sections 25 and 26 are retroactive and is deemed to have come into force on January 1, 1995.

42(6)     Section 38 is retroactive and is deemed to have come into force on January 1, 1993.

42(7)     Section 40 is retroactive and is deemed to have come into force on January 1, 1996.