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The Civil Service Superannuation Amendment Act

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S.M. 2011, c. 34

Bill 44, 5th Session, 39th Legislature

The Civil Service Superannuation Amendment Act

(Assented to June 16, 2011)

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)        Section 1 is amended

(a) by adding the following definitions:

"deferred member" means a former employee who is entitled to a pension under this Act that has not yet commenced and who

(a) elected under section 42 to remain entitled to a deferred pension, or

(b) not having made that election, also did not, within 90 days after ceasing to be an employee or any extended period allowed by the board, apply for the commencement of that pension or the withdrawal or transfer of his or her pension benefit credit; (« participant ayant droit à une pension différée »)

"maximum retirement age" of a person means his or her age at the time at which, under the Income Tax Regulations (Canada), the person must cease to accumulate service under this Act and the person's pension under this Act must commence to be paid to the person; (« âge maximal de la retraite »)

"pension", when referring to a pension under this Act, means a superannuation allowance or an annuity payable under this Act; (« pension »)

(b) by repealing the definitions "child", "eligible survivor", "integrated annuity" and "ordinary allowance";

(c) by replacing the definition "normal retirement age" with the following:

"normal retirement age" means 65 years of age; (« âge normal de la retraite »)

(d) by replacing the definition "salary" with the following:

"salary" means salary determined in accordance with subsections (4) and (5); (« traitement »)

(e) in the definition "temporary suspension of employment",

(i) in clause (a), by adding ", and before May 31, 2010," after "1983", and

(ii) by renumbering clause (a) as clause (a.1) and adding the following as clause (a):

(a) a period ending after May 30, 2010, not exceeding 54 consecutive weeks during which a person who immediately before the period was employed by an employer is not performing duties as an employee of the employer and after the expiry of which the person is again employed by the employer, except where an actual termination of the employment of the person has occurred, and includes any leaves of absence authorized by the employer or required by law to be granted which do not extend the period to more than 54 consecutive weeks,

2(2)        Subsection 1(3) is replaced with the following:

Surviving common-law partner

1(3)        For the purposes of this Act, a person is the surviving common-law partner of a deceased person only if, immediately before the deceased's death, they were in a common-law relationship with each other and were not living separate and apart by reason of a breakdown of that relationship.

2(3)        The following is added after subsection 1(3):

What "salary" includes

1(4)        Subject to subsection (5), for the purpose of this Act, an employee's salary includes

(a) wages;

(b) living expenses or allowances received in cash where they form part of the remuneration of the employee;

(c) any meals, food, living quarters, garage space, fuel, light, domestic or telephone service or similar emolument supplied, where they form part of the remuneration of the employee; and

(d) vacation pay and any amount paid on termination of employment in respect of accrued vacations;

that are paid or supplied to the employee by the employer, and any other remuneration designated as salary by a regulation made by the board and approved by the Lieutenant Governor in Council.

What "salary" does not include

1(5)        For the purpose of this Act, an employee's salary does not include

(a) any fees or allowance or payment for overtime;

(b) any other extra allowance or gratuity;

(c) severance pay;

(d) any amount paid instead of vacations to an employee who is not terminating his or her employment;

(e) the employer's contributions to any Manitoba Health Services Insurance Plan or group insurance premium;

(f) any retroactive salary paid to an employee who has resigned, died or been dismissed unless

(i) the employee is entitled to an allowance under this Act,

(ii) the employee's spouse or common-law partner is entitled to an allowance or annuity under this Act, or

(iii) the employee has resigned and remains a deferred member or has transferred funds under a reciprocal agreement; or

(g) any other remuneration designated not to be salary by a regulation made by the board and approved by the Lieutenant Governor in Council.

Determination of interest payable

1(6)        Except as otherwise provided in this Act, "interest" means interest as determined by the board, after consulting with its actuary, in accordance with any applicable provisions of The Pension Benefits Act or the regulations under that Act.

Limitation re interest payable

1(7)        Despite section 3 and any other provision of The Pension Benefits Act or the regulations under that Act, if

(a) the amount of a monthly allowance or annuity payable under this Act is finally determined within six months after the commencement date for that allowance or annuity;

(b) the board estimated the amount payable as soon as practicable after determining the recipient's eligibility for the allowance or annuity, and made monthly payments based on its estimate; and

(c) within 30 days after determining the monthly amount payable, paid the amount, if any, by which the total of the amounts payable to date exceeds the total of the amounts paid;

no interest is payable on the difference described in clause (c).

3           Subsection 3(1) is amended by striking out "the provisions of section 31 of The Pension Benefits Act" and substituting "that Act and the regulations under that Act".

4           The following is added after subsection 6(5.1):

Matching amount in relation to Canada pensionable earnings

6(5.2)      For the purpose of subsection (5), "matching amount" in relation to an amount deducted from an employee's Canada pensionable earnings for a pay period ending after 2000, means the amount deducted under clause 17(1)(a) less 0.9% of the employee's Canada pensionable earnings for the period.

5           Subsection 13(2) is replaced with the following:

Contributions to adjustment account

13(2)       When the board receives

(a) a contribution made under subsection 6(5) or 17(1);

(b) a payment for a purchase of service under this Act; or

(c) a payment in relation to a transfer under a reciprocal transfer agreement;

the board must credit or transfer the percentage prescribed by regulation — or 10.2% if no percentage is prescribed — of that contribution or payment to the superannuation adjustment account.

Regulation to prescribe contribution rate

13(2.1)     On the joint recommendation of the Advisory Committee and the Liaison Committee referred to in section 10.1, supported by an actuarial report confirming the viability of the recommendation, the Lieutenant Governor in Council may make regulations prescribing a percentage for the purpose of subsection (2).

6           Subsection 14(1) is replaced with the following:

Actuarial report

14(1)       The board must cause an actuarial report on the status of the fund to be prepared as at the end of the calendar year, at least once every three years, and may cause one to be prepared as at any other date but, despite section 3 of The Pension Benefits Act and the regulations under that Act, is not required to cause an actuarial report to be prepared more often than once every three years.

7(1)        Subsections 17(1) and (1.1) are replaced with the following:

Employee contributions

17(1)       Every employee must contribute to the fund each year, by way of deductions from his or her salary, wages or other remuneration

(a) the percentage prescribed by regulation — or 6% if no percentage is prescribed — of his or her Canada pensionable earnings for the year; and

(b) the percentage prescribed by regulation — or 7% if no percentage is prescribed — of his or her salary for the year in excess of his or her Canada pensionable earnings for the year, up to the maximum salary allowed under the Income Tax Act (Canada) to be used for the purpose of pension accrual in the year in which the contributions are made.

7(2)        Subsection 17(1.2) is repealed.

7(3)        Subsection 17(2) is amended by striking out "7%" and substituting "the percentage determined by clause (1)(b)".

7(4)        The following is added after subsection 17(2):

Regulation to prescribe contribution rates

17(3)       On the joint recommendation of the Advisory Committee and the Liaison Committee referred to in section 10.1, supported by an actuarial report confirming the viability of the recommendation, the Lieutenant Governor in Council may make regulations

(a) prescribing a percentage for the purpose of clause (1)(a);

(b) prescribing a percentage for the purpose of clause (1)(b).

No contributions after maximum pension accrued

17(4)       Despite subsection (1), no employee is required to make a contribution in respect of salary, wages or other remuneration earned after he or she has accrued the maximum annual superannuation allowance determined under clause 26(1.1)(b).

No contributions after maximum retirement age

17(5)       Despite subsection (1), no contributions are payable to the fund with respect to salary earned by an employee after he or she reaches the maximum retirement age.

8(1)        Subsection 17.1(4) is replaced with the following:

Costs

17.1(4)     The additional costs incurred by the fund in relation to a correctional officer's retirement that would not have been incurred if the retiree had not been a correctional officer are to be charged against the separate account established under subsection (3).

8(2)        The part of subsection 17.1(6) before clause (a) is amended by striking out "as determined by the board's actuary".

9(1)        Subsections 20(1) to (4) are replaced with the following:

Return to civil service within three years — deferred member

20(1)       If a deferred member who has not withdrawn or transferred any part of his or her pension benefit credit

(a) is re-appointed to the civil service within three years after leaving the civil service;

(b) within that three-year period, becomes an employee within the meaning of this Act; and

(c) within two years after again becoming an employee within the meaning of this Act, applies for reinstatement of the period of service accumulated by him or her before leaving the civil service;

the period of service accumulated by him or her before returning to the civil service is to be included for all purposes of this Act, and he or she ceases to be a deferred member in respect of that period of service.

Return to civil service within three years — non-member

20(2)       The period of service accumulated by a former employee before returning to the civil service is to be included for all purposes of this Act if he or she

(a) withdrew or transferred his or her pension benefit credit upon leaving the civil service because it was required by subsection 21(4) of The Pension Benefits Act (commutation of small pension) to be paid to him or her;

(b) is re-appointed to the civil service within three years after leaving the civil service;

(c) within that three-year period, becomes an employee within the meaning of this Act; and

(d) within two years after again becoming an employee within the meaning of this Act,

(i) applies for reinstatement of the period of service accumulated by him or her before leaving the civil service, and

(ii) pays or agrees to pay to the fund, in a lump sum or by instalments acceptable to the board, an amount equal to the pension benefit credit that was withdrawn or transferred plus interest on that amount from the date that the pension benefit credit was withdrawn until it is repaid in full.

Return to civil service after three years

20(3)       If a deferred member is re-appointed to the civil service and his or her prior period of service is not included under subsection (1) or (2),

(a) he or she remains a deferred member in relation to the prior period of service;

(b) the prior period of service and the additional period of service accumulated after returning to the civil service are to be combined for the purpose of determining if the following eligibility requirements are met in relation to the deferred pension and in relation to the additional pension accrued after returning to the civil service:

(i) the requirement in sections 28, 42 and 45 for the person to have at least 10 years of service,

(ii) the requirement in section 28 for the person's age and service to total 80 years or more,

(iii) the requirement in subsection 17.1(6) and clause 28(1)(c) for the person's age and service to total 75 years or more.

Length of service

20(4)       Despite any other provision of this Act, the period during which a returning employee was out of the civil service shall not be included in computing his or her length of service for the purposes of this Act.

9(2)        Subsection 20(5) is repealed.

9(3)        Subsection 20(6) is renumbered as subsection 20.1(1) and is amended by striking out "subsection (7)" and substituting "subsection (2)".

9(4)        Subsection 20(7) is renumbered as subsection 20.1(2) and is amended in the part before clause (a) by striking out "subsection (6)" and substituting "this section".

9(5)        Subsection 20(8) is renumbered as subsection 20.1(3) and is amended by striking out "subsection (6)" and substituting "this section".

10          Clause 21(13)(b) is replaced with the following:

(b) the applicant agrees in writing to pay to the fund, in a lump sum or by instalments, the product obtained by multiplying the total amount determined as salary for the period to be included in computing the applicant's service, using the applicant's annual salary rate as at the date of the application, by two times the percentage determined under clause 17(1)(b) as at that date, plus interest if the payment is to be made by instalments;

11          Subsection 21.3(1) is amended by striking out "a superannuation allowance under subclause 28(1)(a)(i) or (ii) or 28(1)(b)(i) or (ii)" and substituting "an unreduced superannuation allowance under subsection 28(1)".

12          Section 21.5 is amended by striking out "Subsections 20(6)," and substituting "Section 20.1 and subsections".

13          The following is added after section 21.6:

Purchase of service by reservist

21.7(1)     An employee who receives a period of unpaid leave to which he or she is entitled under section 59.5 of The Employment Standards Code (unpaid leave for reservists) may, in accordance with the regulations, purchase a period of service in relation to that period of leave.

Regulations

21.7(2)     For the purpose of this section, the Lieutenant Governor in Council may make regulations

(a) respecting the application for a purchase of service under this section, including prescribing a time limit for making the application;

(b) prescribing the maximum length of service that may be purchased;

(c) respecting the amount to be contributed by an employee for a period of service purchased under this section, including prescribing a method for determining the amount and how and when it is to be contributed;

(d) respecting the amount to be contributed by the employer for a period of service purchased under this section, in the case of an employer to whom subsection 6(5) applies, including a method for determining the amount and how and when it is to be contributed.

Past period of leave

21.7(3)     A regulation under subsection (2) may apply to a period of unpaid leave that began or ended before the day this section came into force.

14(1)       Clause 22(7)(b) is amended by striking out "thereon calculated at the rate and in the manner provided under subsection 42(1)".

14(2)       Subsection 22(8) is amended by striking out "subsection 42(14) or" and substituting "section 42 or subsection".

15          Subsections 23(1) and (2) are amended in the part of clause (a) before subclause (i) by striking out "42" and substituting "45".

16          Section 25 is repealed.

17(1)       Subsection 26(1) is amended

(a) in the part before the formula,

(i) by striking out "Subject as hereinafter provided" and substituting "Except as otherwise provided in this section and section 28", and

(ii) by striking out "and to which reference is made in section 25" and substituting "under that section"; and

(b) by replacing the description of C in the formula with the following:

C

is, as determined by the board in accordance with its actuary's recommendation, the average annual Canada pensionable earnings received by the person during the period for which the value of A is determined;

17(2)       Subsection 26(1.1) is replaced with the following:

Maximum annual superannuation allowance

26(1.1)     A member's annual superannuation allowance must not exceed the lesser of

(a) the maximum annual pension allowed under the Income Tax Act (Canada);

(b) the amount that would be determined under subsection (1) if the formula were as follows:

Superannuation allowance = 70% × A

17(3)       The part of subsection 26(1.2) before clause (a) is amended by striking out "25" and substituting "28".

17(4)       The following is added after subsection 26(1.3).

Employment after maximum age of retirement

26(1.4)     Despite section 3 and subsection 21(9) of The Pension Benefits Act, no period of a person's employment after he or she reaches the maximum age of retirement shall be treated as a period of service under this Act or be included in computing the person's superannuation allowance or pension benefit credit.

17(5)       Subsection 26(2) is amended by striking out "payable to an employee under subsection (1) and to which reference is made in section 25,".

17(6)       Subsection 26(4) is repealed.

18          Section 27 is repealed.

19          Sections 28 to 31 are replaced with the following:

Eligibility for superannuation allowance

28(1)       Except as otherwise provided in this Act and subsection 21(9.1) of The Pension Benefits Act, the board must grant an annual superannuation allowance calculated in accordance with section 26 to the following persons:

(a) a person who

(i) ceases to be an employee on or after reaching the age of 55 years,

(ii) at the time of ceasing to be an employee, is not receiving an allowance granted under clause (d),

(iii) satisfies the board that he or she gave a written notice of retirement to the employer, and

(iv) submits to the board — in a form approved by the board and within six months before ceasing to be an employee or within 90 days after ceasing to be an employee — a written notice of retirement setting out the date of retirement;

(b) a deferred member who has reached the age of 55 years and applies to the board for a superannuation allowance under this section;

(c) a correctional officer who

(i) ceases to be an employee after reaching the age of 50 years and whose age and service total at least 75 years,

(ii) became a correctional officer before 2001 or made additional contributions under section 17.1 for at least five years,

(iii) did not receive and is not entitled to receive a refund of contributions under subsection 17.1(6),

(iv) satisfies the board that he or she gave a written notice of retirement to the employer, and

(v) submits to the board — in a form approved by the board and within six months before ceasing to be an employee or within 90 days after ceasing to be an employee — a written notice of retirement setting out the date of retirement;

(d) a person with at least 10 years of service who

(i) has not been granted an allowance under clause (a), (b) or (c),

(ii) has not reached the age of 60 years,

(iii) has not reached the age of 55 years or, having reached that age, has not reached the age at which his or her age and service total 80 years, and

(iv) satisfies the board that he or she has a qualifying disability, as defined in section 31, and

(A) if the allowance is to commence before he or she ceases to be an employee, that he or she is entitled to long term disability benefits, or

(B) if the allowance is to commence after he or she has ceased to be an employee, provides the board with a notice of retirement in a form approved by the board;

(e) a person who remains an employee after the end of the year in which he or she reached the maximum retirement age.

Period of superannuation allowance

28(2)       Except as otherwise provided in this Act, a person's superannuation allowance is payable for the period from the commencement date for the allowance to the end of the month in which the person dies.

Commencement of allowance

28(3)       The commencement date for a person's superannuation allowance is

(a) in the case of an allowance granted under clause (1)(a) or (c), the date of retirement set out in the person's written notice of retirement to the board, or, if the notice is given more than 30 days after the person ceased to be an employee, the date that it is given to the board;

(b) in the case of an allowance granted under clause (1)(b), the date of retirement set out in the person's application for the allowance, or the date that the completed application is received by the board, whichever is later;

(c) in the case of an allowance granted under clause (1)(d),

(i) if it is granted to an employee who is entitled to long term disability benefits, the effective date for the commencement of those benefits or the day that his or her sick leave benefits expire, whichever occurs first, and

(ii) in any other case, the day the person's completed application is received by the board or the person ceases to be an employee, whichever occurs last; and

(d) in the case of an allowance granted under clause (1)(e), the last day of the year in which the person reached the maximum retirement age.

Reduction for early retirement — less than 10 years of service

28(4)       The allowance otherwise payable under subsection (1) to a person with less than 10 years of service whose age at the commencement date of the allowance is less than the normal retirement age shall be reduced to the actuarial present value, as at the commencement date, of the allowance that would be payable to the person if it were commencing on the date that the person reached the normal retirement age.

Reduction for early retirement — 10 or more years of service

28(5)       An allowance granted under clause (1)(a) or (b) to a person with at least 10 years of service whose age at the commencement date of the allowance is less than 60 years and whose age and service on that date total less than 80 years shall be reduced as follows:

(a) for service accumulated under this Act before 1992, by the lesser of

(i) 0.0625% for each full month beginning with the day on which payment of the allowance is to commence up to and including the day he or she reaches the age of 60 years, and

(ii) 0.25% for each full month from the day on which payment of the allowance is to commence up to and including the day on which he or she reaches the age of 60 years or the age at which his or her age and service total 80 years, whichever occurs first;

(b) for service accumulated under this Act after 1991, by 0.25% for each full month from the day on which payment of the allowance is to commence up to and including the day on which he or she reaches the age of 60 years or the age at which his or her age and service total 80 years, whichever occurs first.

Reduction for allowance for partial disability

28(6)       Subject to subsection 31(7), the reductions in clauses (5)(a) and (b) also apply to an allowance granted under clause (1)(d) to a person with a permanent partial disability as defined in section 31 who, as at the commencement date for the allowance,

(a) has not reached the age of 60 years; and

(b) has not reached the age of 55 years or, having reached that age, has not reached the age at which his or her age and service total 80 years.

Additional temporary allowance

28.1(1)     If a person's superannuation allowance is reduced under clause 28(5)(b), the board must pay the person an additional temporary allowance in equal monthly instalments from the commencement date for the allowance to the end of the month in which the person reaches the age of 65 years.

Actuarial present value

28.1(2)     The actuarial present value of the additional temporary allowance, as at the commencement date of the superannuation allowance, must be equal to the difference between

(a) the actuarial present value, as at the commencement date, of the superannuation allowance that would be payable as of the commencement date if all of the service had been accumulated before 1992; and

(b) the actuarial present value, as at the commencement date, of the reduced superannuation allowance.

Calculation of actuarial present values

28.1(3)     The actuarial present values to be calculated under subsection (2) are to be calculated in accordance with recommendations of the board's actuary that have been approved by the board.

Death before age 65 — surviving spouse or common-law partner

28.1(4)     If

(a) a member receiving an additional temporary allowance under this section dies before reaching the age of 65 years; and

(b) a surviving spouse or common-law partner of the member is entitled to optional annuity payments under section 29;

the remaining monthly instalments of the additional temporary allowance that the member would have received had he or she not died are payable to the surviving spouse or common-law partner until the death of the spouse or common-law partner or the end of the month in which the member would have reached the age of 65 years, whichever is earlier.

Death before age 65 — optional annuity for minimum period

28.1(5)     If a member receiving an additional temporary allowance under this section dies

(a) before reaching the age of 65 years; and

(b) before the end of the minimum period for which instalments under the member's optional annuity under section 29 are payable;

the remaining monthly instalments of the additional temporary allowance that the member would have received had he or she not died before the end of that minimum period are payable to the person entitled to the remaining optional annuity payments under section 29.

Optional annuity

29(1)       Subject to section 30, a member who is eligible for a superannuation allowance under section 28 may elect one of the following annuities in lieu of that superannuation allowance, and the board must pay the annuity elected by the member:

Joint annuity — full pension to survivor

(a) an annuity that is payable

(i) until the death of the member or of his or her spouse or common-law partner, whichever is later,

(ii) in equal monthly instalments throughout the term of the annuity, and

(iii) to the member while he or she is alive and, after his or her death, to the surviving spouse or common-law partner;

Joint annuity — 2/3 pension to survivor

(b) an annuity that is payable

(i) until the death of the member or of his or her spouse or common-law partner, whichever is later,

(ii) in equal monthly instalments until the death of the member and, if he or she is survived by the spouse or common-law partner, in monthly instalments equal to 2/3 of the monthly instalments that were payable to the member, and

(iii) to the member while he or she is alive and, after his or her death, to the surviving spouse or common-law partner;

Joint annuity — 1/2 pension to survivor

(c) an annuity that is payable

(i) until the death of the member or of his or her spouse or common-law partner, whichever is later,

(ii) in equal monthly instalments until the death of the member and, if he or she is survived by the spouse or common-law partner, in monthly instalments equal to 1/2 of the monthly instalments that were payable to the member, and

(iii) to the member while he or she is alive and, after his or her death, to the surviving spouse or common-law partner;

Minimum 10-year pension

(d) an annuity that

(i) is payable in equal monthly instalments to the member until he or she dies, and

(ii) after the member's death, if he or she dies within 10 years after the commencement of the annuity, is payable in accordance with subsections (4) to (6);

Minimum 15-year pension

(e) an annuity that

(i) is payable in equal monthly instalments to the member until he or she dies, and

(ii) after the member's death, if the member dies within 15 years after the commencement of the annuity, is payable in accordance with subsections (4) to (6);

Other pension

(f) any other form of annuity acceptable under the Income Tax Act (Canada) that

(i) involves life contingencies,

(ii) is approved by the board, and

(iii) after the member's death, if the annuity is payable for a specified minimum period and the member dies within that period, is payable in accordance with subsections (4) to (6);

Time and manner of making election

29(2)       A member wishing to make an election under subsection (1) must do so in a form approved by the board and

(a) if the member is eligible for a superannuation allowance under clause 28(1)(a), (b) or (c), on or before the commencement date for the allowance or within 30 days after the board gives the member information about his or her options under this section;

(b) if the member is granted a superannuation allowance under clause 28(1)(d), on or before the commencement date for the allowance or within 30 days after the board gives the member a written notice confirming that the allowance has been approved; or

(c) if the member is eligible for a superannuation allowance under clause 28(1)(e), on or before the commencement date for the allowance or within 30 days after the board is supplied with proof of age confirming the member's eligibility for the allowance.

Calculation of annuity

29(3)       An optional annuity payable under this section must be equal to the annuity that

(a) can reasonably be provided by the amount of the net accrued liability of the fund based on

(i) unisex tables in respect of the member as at the commencement date of the annuity, and

(ii) the last valuation of the fund made before the commencement date of the annuity; and

(b) is the actuarial equivalent of the superannuation allowance computed under section 26 that the member would receive if he or she were retiring at the normal retirement age.

Death before expiry of minimum term

29(4)       If a member who has elected an annuity under this section that is payable for a minimum number of months or years dies before the term of the annuity expires, the annuity becomes payable

(a) firstly, to the person designated by the member in his or her will or in any other document signed by the member;

(b) secondly, to the member's surviving spouse or common-law partner; and

(c) thirdly, to the member's estate.

Beneficiary dies or becomes ineligible

29(5)       Subject to subsection (6), if an annuity has become payable under subsection (4) to a person designated by the member or to the member's surviving spouse or common-law partner, and the recipient dies before the term of the annuity expires, the remaining annuity payments become payable to the next person who would be entitled under subsection (4) to receive them.

Lump sum

29(6)       On the application of a person receiving or entitled to receive annuity payments under subsection (4) or (5), the board may pay the applicant a lump sum equal to the commuted value, as determined by the board's actuary as at the date of the application, of the remaining annuity payments, plus interest from the date of the application to the date of payment.

Change of designated beneficiary

29(7)       A member who has designated a person to receive annuity payments under subsection (4) may at any time designate a different person by submitting to the board a document signed by the member and designating the other person. The later designation replaces the earlier one even if the earlier one was made in a provision of a will that is not revoked or amended.

Designation by inoperative will

29(8)       Subject to subsection (7), a designation contained in an instrument purporting to be a will is effective as a designation, even if the instrument is invalid as a testamentary instrument, unless it has been revoked otherwise than by operation of law.

Information about age of surviving annuitant

29(9)       If a member applies for an annuity that may continue to be paid after the death of the member to another person until that person dies, or until the end of a specified minimum period, the application must include the information the board requires to determine the age of the other person.

References to "spouse or common-law partner"

29(10)      In this section, "spouse or common-law partner" of a member means the individual who

(a) is the member's spouse or common-law partner at the time that the member applies for an optional annuity under subsection (1); and

(b) is identified in that election as the member's spouse or common-law partner.

Election prevented by death or ill health

29.1        If, after ceasing to be an employee and after giving a notice of retirement to the board or applying for a superannuation allowance, a member is prevented by ill health or death from electing an annuity under section 29 within the period allowed for making it, the member is deemed to have elected

(a) the annuity under clause 29(1)(b) (joint annuity — 2/3 pension to survivor), if at the end of that period 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).

Election to integrate with CPP pension

29.2(1)     A member to whom a superannuation allowance or annuity becomes payable under this Act before reaching the age of 60 years may elect, in a form approved by the board and within the time allowed for electing an optional annuity under section 29, to have the allowance or annuity integrated in accordance with this section with the member's pension under the Canada Pension Plan (referred to in this section as the "CPP pension").

Method of integration

29.2(2)     If a member makes the election,

(a) the board must increase the monthly instalment of the allowance or annuity otherwise payable by an amount such that the actuarial value, as at the date of retirement, of the increased instalments is equal to the total of

(i) the actuarial value, as at that date, of the monthly allowance or annuity instalments without integration, and

(ii) the actuarial value, as at that date, of the monthly CPP pension that will become payable to the member when he or she reaches the age of 65 years, assuming that the CPP pension is not commenced before he or she reaches that age and no changes are made to the Canada Pension Plan;

(b) in the event of an increase in the monthly pension that will become payable under the Canada Pension Plan, the board may further increase the monthly instalment to reflect that increase, but is not required to do so; and

(c) when the member reaches the age of 60 years, the board must reduce the monthly superannuation allowance or annuity payments by the monthly CPP pension amount used in the actuarial computations that resulted in an increase under clause (a) or (b).

Effect of early death on integrated allowance or annuity

29.2(3)     If the member dies before reaching the age of 60 years, the board must cease to pay any increase that would otherwise be payable under clause (2)(a) or (b) and must not apply the decrease that would otherwise apply under clause (2)(c).

Election to integrate with OAS allowance

29.3(1)     A member to whom a superannuation allowance or annuity becomes payable under this Act before reaching the age of 65 years may elect, in a form approved by the board and within the time allowed for electing an optional annuity under section 29, to have the allowance or annuity integrated in accordance with this section with the member's allowance under the Old Age Security Act (Canada) (referred to in this section as the "OAS allowance").

Method of integration

29.3(2)     If a member makes the election,

(a) the board must increase the monthly instalment of the allowance or annuity otherwise payable by an amount such that the actuarial value, as at the date of retirement, of the increased instalments is equal to the total of

(i) the actuarial value, as at that date, of the monthly allowance or annuity instalments without integration, and

(ii) the actuarial value, as at that date, of the monthly OAS allowance that will become payable to the member when he or she reaches the age of 65 years, assuming that no changes are made to the Old Age Security Act (Canada);

(b) in the event of an increase in the monthly OAS allowance that will become payable to the member, the board may further increase the monthly instalment to reflect that increase, but is not required to do so; and

(c) when the member reaches the age of 65 years, the board must reduce the monthly superannuation allowance or annuity payments by the monthly OAS allowance amount used in the actuarial computations that resulted in an increase under clause (a) or (b).

Effect of early death on integrated allowance or annuity

29.3(3)     If the member dies before reaching the age of 65 years,

(a) if the member elected an annuity under section 29 that is payable for a minimum 10-year, 15-year or other specified period, the board must continue to pay the increased amount under clause (2)(a) or (b) until the date on which the member would have reached the age of 65 years if he or she had lived; and

(b) in any other case, the board must cease to pay any increase that would otherwise be payable under clause (2)(a) or (b) and must not apply the decrease that would otherwise apply under clause (2)(c).

Joint pension entitlement of spouse or common-law partner

30          If, at the commencement date of a member's superannuation allowance or annuity under this Act,

(a) the member has a spouse or common-law partner;

(b) the member and the spouse or common-law partner are not living separate and apart by reason of a breakdown in their relationship;

(c) the spouse or common-law partner has not waived, in accordance with subsection 23(4) of The Pension Benefits Act, his or her entitlement to a joint pension or, having waived it, has revoked the waiver by giving the board a written notice of the revocation; and

(d) the member has failed to elect an annuity that provides for monthly payments to the surviving spouse or common-law partner that are at least 66 2/3% of the monthly payments payable to the member;

the board must treat the member as having elected the optional annuity described in clause 29(1)(b) and pay that annuity in lieu of a superannuation allowance calculated under section 26 or any other annuity elected by the member.

Definitions

31(1)       The following definitions apply in this section.

"disability allowance" means a superannuation allowance granted to a person under clause 28(1)(d) and any additional allowance payable under section 28.1 to the person. (« allocation d'invalidité »)

"partial disability" means a person's 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 that he or she pursued before the disability. (« invalidité partielle »)

"permanent", in relation to a partial disability or a total 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 »)

"qualifying disability" means

(a) a permanent total disability; or

(b) a permanent partial disability. (« invalidité admissible »)

"total disability" means a person's disability that is so severe that the person is incapable of pursuing any substantially gainful occupation. (« invalidité totale »)

Entitlement to long term disability benefits

31(2)       For the purposes of section 28 and this section, a person is considered to be entitled to long term disability benefits if he or she

(a) is receiving long term disability benefits provided under a contract or otherwise for employees of the government or an agency of the government; or

(b) is entitled under the terms of the contract or program under which they are provided to receive such long term disability benefits after the expiry of an initial waiting period.

Report by employer

31(3)       If the applicant for a disability allowance is an employee, the head of the department or agency in or by whom the applicant is employed must provide to the board, on receipt of a written request from the board, a report in a form approved by the board.

Medical reports

31(4)       The board may require the applicant for a disability allowance to do one or both of the following:

(a) submit to the board a medical report completed by the applicant's physician;

(b) submit to one or more examinations by one or more physicians acceptable to the board, and submit copies of the resulting medical reports to the board.

Determination of disability

31(5)       A determination by the board as to whether a person has a qualifying disability, and whether a qualifying disability is a total disability or a partial disability, is final subject only to a redetermination by the board under subsection (7) or (9).

Status of employee receiving disability allowance

31(6)        An employee who is receiving a disability allowance is deemed for the purposes of this Act other than this section, not to be an employee, and is therefore not permitted or required to make contributions under section 17 or 17.1 and not entitled to accumulate service.

Adjustment because of change in disability

31(7)       The board may from time to time review the disability of a person receiving a disability allowance and

(a) if it determines that the recipient no longer has a total disability but has a permanent partial disability, reduce the monthly allowance to the amount that would be payable monthly if subsection 28(6) had applied when the allowance was granted;

(b) if it determines that the recipient's disability, previously determined to be a partial disability, was a permanent total disability as at the commencement date, increase the allowance retroactively to the commencement date, to the amount that would be payable monthly if subsection 28(6) had not applied when the allowance was granted; or

(c) if it determines that the recipient's disability has become a permanent total disability, increase the allowance, effective as of the first month after making that determination, to the amount that would be payable monthly if subsection 28(6) had not applied when the allowance was granted.

Superannuation adjustments

31(8)       If a disability allowance includes any superannuation adjustments made under section 33 before it is increased or reduced under subsection (7), the increased or reduced allowance continues to include those adjustments, and any future adjustment under section 33 applies to the increased or reduced allowance.

Termination of disability allowance

31(9)       The board may terminate a disability allowance when

(a) in the case of an allowance being paid to a person with a partial disability who has not reached the age of 55 years or, having reached that age, continues to be an employee,

(i) the person is no longer entitled to long term disability benefits referred to in subsection (2), or

(ii) the board determines, based on one or more medical reports, that the person no longer has a qualifying disability; and

(b) in the case of an allowance being paid to a person with a total disability,

(i) the board determines, based on one or more medical reports, that the person no longer has a qualifying disability,

(ii) the person has not reached the age of 60 years, and

(iii) the person has not reached the age of 55 years or, having reached that age, has not reached the age at which his or her age and service total 80 years.

Effect of termination — return to service

31(10)      If a person whose disability allowance is terminated under subsection (9) continues as an employee or is re-appointed to the civil service and again becomes an employee, the period of service accumulated before the commencement date for the disability allowance is to be included for all purposes of this Act, even though the person received a disability allowance in relation to that service.

Effect of termination — no return to service

31(11)      If a person whose disability allowance is terminated under subsection (9) does not continue as an employee and is not re-appointed to the civil service, the person becomes a deferred member in relation to the period of service accumulated before the commencement date of the disability allowance and the person's pension benefit credit is not reduced as a result of the payment of the disability allowance.

20(1)       The following is added after subsection 33(6):

No entitlement to adjustment before effective date

33(6.1)     For greater certainty,

(a) no person is entitled to a superannuation adjustment under this section before the day it becomes effective; and

(b) a superannuation adjustment under this section must not be included in determining the commuted value of a pension under this Act before the day the adjustment becomes effective.

20(2)       Subsection 33(11) is amended by striking out "subsection 28(3)" and substituting "section 28.1".

21           Subsection 35(10) is amended

(a) in the part before clause (a), by striking out "he becomes" and substituting "becoming";

(b) in clauses (a) and (b), by adding "or she" after "he"; and

(c) by replacing the part after clause (c) with the following:

the person's service under this Act includes, for the purpose of determining whether clause 28(1)(d) or subsection 28(4) or (5) or 45(1) applies, any period during which he or she was employed as described in clause (a), (b) or (c).

22          Subsection 36(1) is amended by striking out ", subsections 31(10) and (11)" and substituting "and subsection 31(10)".

23          Section 38 is repealed.

24(1)       Clause 39(3)(a) is amended by striking out "59" and substituting "28".

24(2)       Clause 39(7)(b) is replaced with the following:

(b) the applicant agrees in writing to pay to the fund, in a lump sum or by instalment, the amount determined by the following formula plus interest on that amount determined in accordance with subsection 63(8):

C = 2P × S × Y

In this formula,

C

is the amount of the contribution to be paid by the applicant;

P

is the percentage determined by clause 17(1)(b) as at the date of the application;

S

is the applicant's annual salary rate as at the date of the application;

Y

is the period to be included in computing the applicant's service, expressed as a number of years, including any part of a year, to four decimal places.

25          Section 40 is replaced with the following:

Payment of allowances and annuities

40(1)       Subject to any adjustment required by this or any other Act of the Legislature, the Income Tax Act (Canada) or the regulations under that Act, an allowance or annuity payable under this Act is to be paid in equal monthly instalments beginning on or before the last day of the month following the month that includes the commencement date for the allowance or annuity, but

(a) the monthly instalments may be based on an estimate until the monthly amount is accurately determined by the board; and

(b) in the case of an allowance granted under clause 28(1)(d) (disability), payment of any monthly instalment that falls due before the board makes the decision to grant the allowance may be deferred until the end of the month following the month in which the board makes that decision.

Final payment for month of death

40(2)       When a person entitled to an allowance or annuity dies, the last monthly instalment payable to that person is the payment due for the month in which death occurred.

26          Section 41 is amended

(a) in the part before clause (a),

(i) by striking out ", or where the eligible survivor of a deceased employee ceased to be an eligible survivor,", and

(ii) by striking out "clauses 29(3)(a) and (b)" and substituting "sections 29.2 and 29.3"; and

(b) in clause (c), by striking out "credited thereon under subsection 42(21)".

27          Section 42 is replaced with the following:

Election to remain entitled to deferred pension

42(1)       Within 90 days after ceasing to be an employee or any extended period allowed by the board, a former employee who has not yet reached the normal retirement age may elect, in the form and manner approved by the board, to remain a member entitled to a deferred pension until

(a) he or she becomes eligible to receive it, and applies for it; or

(b) his or her pension benefit credit is withdrawn or transferred from the fund.

Request for withdrawal or transfer

42(2)       A former employee, including a deferred member, may, at any time before the commencement of his or her pension under this Act, make a request to the board, in the form and manner approved by the board, for the withdrawal or transfer in accordance with The Pension Benefits Act of

(a) his or her pension benefit credit determined as of

(i) the date of termination of his or her employment, if the request is made within 90 days after that date or within any extended period authorized by board, or

(ii) the date of the request, if it is made after the end of the 90-day or extended period referred to in subclause (i); and

(b) interest on that amount from the date as of which the pension benefit credit is determined to the date of the withdrawal or transfer.

Calculation of pension benefit credit

42(3)       Unless the member requesting the withdrawal or transfer has accumulated at least 10 years of service and reached the age of 55 years, the commuted value to be included in the pension benefit credit

(a) is the actuarial present value, as determined by the board's actuary as at the date of the withdrawal or transfer, of the allowance that would be payable to the member if it were commencing on the date that the member reached the normal retirement age; and

(b) for greater certainty, does not include the commuted value of any early retirement benefits (such as the benefits resulting from the application of subsection 28(5) and section 28.1) to which the member would have been entitled if he or she had accumulated at least 10 years of service and reached the age of 55 years.

Board to comply

42(4)       If the requested withdrawal or transfer meets the requirements of The Pension Benefits Act and the regulations under that Act, the board must comply with the request.

28          Subsection 43(1) is amended

(a) in the part before clause (a), by striking out "or eligible survivor" and "or a survivor benefit"; and

(b) in clauses (a) and (b), by striking out "or eligible survivor" wherever it occurs.

29          Clause 44(2)(b) is amended by striking out everything after "reduced by" and substituting "the actuarial present value, at the time of the transfer, of the pension reduction described in clause (a)."

30          Section 45 is replaced with the following:

Pre-retirement death benefit entitlement of surviving spouse or common-law partner

45(1)       A spouse or common-law partner of an employee or deferred member is entitled to a death benefit under this section if

(a) the employee or deferred member dies before his or her date of retirement and is survived by the spouse or common-law partner;

(b) immediately before the death, they were not living separate and apart from each other by reason of a breakdown in their relationship; and

(c) the spouse or common-law partner has not waived his or her right to the death benefit.

Death benefit

45(2)       Subject to subsection (3), the death benefit payable to the surviving spouse or common-law partner entitled to a death benefit under this section is

(a) if the deceased had less than 10 years of service, a pension with a commuted value equal to the lump sum that would have been payable to the estate under subsection (5) if the deceased had not been survived by the spouse or common law-partner; or

(b) if the deceased had at least 10 years of service, a pension with a commuted value equal to the greater of

(i) the lump sum that would have been payable to the estate under subsection (5) if the deceased had not been survived by the spouse or common law-partner, and

(ii) the commuted value, based on the life of the spouse or common-law partner, of a monthly pension equal to 60% of the monthly pension that would have been payable to the deceased if he or she had not died but had retired on the day of his or her death and had reached the age of 65 years on that day.

Limitation

45(3)       The monthly pension payable under subsection (2) cannot exceed the maximum monthly pension that, according to the regulations applicable to registered pension plans under the Income Tax Act (Canada), may be paid to the surviving spouse or common-law partner of a deceased employee.

Transfer by surviving spouse or common-law partner

45(4)       The surviving spouse or common-law partner may, instead of receiving a pension under this section, request the board to transfer the commuted value of the pension in accordance with The Pension Benefits Act and the regulations under that Act.

Pre-retirement death — refund to estate

45(5)       If an employee or a deferred member dies before the commencement of his or her pension under section 28 and is not survived by a spouse or common-law partner who is entitled to a death benefit under this section, the board must refund or pay to the deceased's estate, an amount equal to the greater of

(a) the deceased's accumulated contributions plus interest as determined by the board in accordance with The Pension Benefits Act and the regulations under that Act; and

(b) the amount determined under subclause (i) or (ii), whichever applies:

(i) if the deceased had accumulated 10 or more years of service, the pension benefit credit, as at the date of death, to which he or she would have been entitled under this Act if

(A) he or she had not died but had ceased to be an employee on the date of his or her death,

(B) section 28 were read without the requirement to have reached the age of 55 years, and

(C) in circumstances where the deceased did not reach the age of 60 years and his or her age and service at the time of death totalled less than 80 years, subsections 28(5) to (8) had applied in determining the pension benefit credit,

(ii) if the deceased had accumulated less than 10 years of service, the pension benefit credit, as at the date of death, to which he or she would have been entitled under this Act if

(A) he or she had not died but had ceased to be an employee on the date of his or her death, and

(B) in circumstances where the deceased did not reach normal retirement age, subsection 28(4) had applied in determining the pension benefit credit.

31          Section 46 is repealed.

32          Section 47 is amended by striking out "41, and 42" and substituting "41, 43 and 45".

33(1)       Subsection 50(1) is amended

(a) in the part before clause (a) of the English version,

(i) by adding "or her" after "his" wherever it occurs, and

(ii) by striking out "he" and substituting "the person";

(b) in clause (a), by striking out "or has directed the board in writing to pay any such amount to his estate"; and

(c) in the part of clause (b) before subclause (i), by striking out "and has not before January 1, 1984, directed the board in writing to pay any such amount to his estate".

33(2)       Subsection 50(3) is replaced with the following:

Interest on payments

50(3)       If an amount is payable under subsection (1), section 41 or subsection 45(5) to a deceased's legal personal representative or estate, the board must pay interest — as determined by the board in accordance with The Pension Benefits Act and the regulations under that Act — on that amount from the date of death to the date of payment, which may be deferred until the board receives satisfactory evidence of the appointment of the personal representative of the deceased.

34(1)       Subsection 52(3) is repealed.

34(2)       Subsection 52(4) is replaced with the following:

Eligibility for disability allowance

52(4)       In determining for the purpose of clause 28(1)(d) whether a person designated as transferred employee under subsection (2) has met the 10-year service requirement, his or her years of service include any period of service on the teaching staff of The University of Manitoba.

34(3)       Subsection 52(8) is replaced with the following:

Early allowance for transferred employee

52(8)       A transferred employee may apply to the board for a superannuation allowance under section 28 to commence on the day that he or she reaches the age of 55 years, the date specified in the application or the day the completed application is received by the board, whichever is the latest.

34(4)       Subsection 52(10) is repealed.

34(5)       Subsection 52(11) of the English version is amended by striking out "his" wherever it occurs.

34(6)       Subsection 52(12) is repealed.

35(1)       Subsection 53(2) is amended

(a) in the part between clauses (b) and (c) of the English version, by striking out "his" and substituting "the person's";

(b) in clause (c) of the English version, by adding "or her" after "his";

(c) by adding "and" at the end of clause (c) and repealing clause (e); and

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

(d) determining the eligibility of the person's spouse or common-law partner to an allowance, annuity or pension under this Act.

35(2)       Clause 53(13)(a) and subsection 53(14) are amended by striking out "31, 42, 45, 59 or 60" and substituting "28, 31, 42 or 45".

36(1)       Subsection 55(1) is repealed.

36(2)       Subsection 55(2) is replaced with the following:

Information required by board

55(2)       The board may refuse to pay an allowance or annuity under this Act, or a refund, to any person who fails to provide the board with any information or evidence that it requires to satisfy itself that the person is eligible for the allowance, annuity or refund.

36(3)       Subsection 55(3) is repealed.

37          The following is added after clause 57(d):

(d.1) for the purpose of the definition "salary" in subsection 1(1), designating any type of remuneration to be, or not to be, salary;

38          Sections 59, 59.1 and 60 are repealed.

39          Subsection 63(2.2) is amended by striking out "deferred pensioner" and substituting "deferred member".

40          The following is added after section 67.5 and before Part 2:

PHASED RETIREMENT

Regulations

67.6(1)     The Lieutenant Governor in Council may by regulation establish a phased retirement program under which participating employees may begin receiving their pension while continuing to work and accrue benefits.

Same

67.6(2)     Without limiting the generality of subsection (1), the Lieutenant Governor in Council may make regulations

(a) establishing eligibility criteria for participation in the phased retirement program;

(b) respecting applications to participate in the program;

(c) respecting the pension benefits to be paid under the program;

(d) respecting the accrual of benefits under the program and the funding of those benefits;

(e) respecting the provision of information

(i) by the board to an applicant or participating employee or to a participating employer,

(ii) by a participating employer to its employees, or

(iii) by a participating employee or employer to the board;

(f) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for establishing or administering the program.

Joint recommendation required

67.6(3)     Regulations under this section may be made only on a joint recommendation of the Advisory Committee and the Liaison Committee referred to in section 10.1 that is supported by an actuarial report confirming the viability of the recommendation.

Income Tax Act requirements prevail

67.6(4)     If a regulation under this section conflicts with a requirement or restriction of the Income Tax Act (Canada) or a regulation under that Act that applies to registered pension plans, that requirement or restriction prevails to the extent of the inconsistency.

41(1)       Subsection 68(1) is amended by striking out "or an eligible survivor" and "or eligible survivor".

41(2)       Subsection 68(2) is amended by striking out "or eligible survivor".

42(1)       The definition "program" in subsection 69(1) is amended by striking out "the program for disability superannuation allowances which may be granted under section 31" and substituting "the benefits payable under a superannuation allowance granted under clause 28(1)(d)".

42(2)       Subsection 69(4) is amended

(a) in clause (b), by striking out "a disability superannuation allowanced under section 31" and substituting "a superannuation allowance under clause 28(1)(d)"; and

(b) in clause (c), by striking out "31, 45, 59 or 60 or subsections 42(1), (6), (8) or (10)" and substituting "28, 31, 42 or 45".

42(3)       Subsection 69(5) is amended by striking out "section 31, 45, 59 and 60 and subsections 42(1), (6), (8) and (10)" and substituting "sections 28, 31, 42 and 45".

Consequential amendment, C.C.S.M. c. R119

43          Clause 194(1)(k) of The Residential Tenancies Act is replaced with the following:

(k) providing for the application of The Civil Service Superannuation Act to commissioners;

Coming into force

44(1)       Subject to subsections (2) and (3), this Act is deemed to have come into force on May 31, 2010.

44(2)       The following provisions come into force on the day this Act receives royal assent:

(a) sections 4, 5, 7, 10 and 13;

(b) subsection 17(2);

(c) section 23;

(d) subsection 24(2);

(e) section 40.

44(3)       Nothing in this Act shall adversely affect the right to an allowance or annuity under The Civil Service Superannuation Act or to the pension benefit credit of such an allowance or annuity, or the amount of the pension benefit credit, of any person who ceased or ceases to be an employee on or before December 31, 2011, unless the person returns to the civil service after that date and his or her service is reinstated under section 20 of that Act.

44(4)       For the purpose of subsection (3), in determining the commuted value of the pension to which a person would be entitled on reaching the age of 55 years, the age requirement is deemed for the purpose of subsection 21.1(2) of The Pension Benefits Act not to be an eligibility requirement.