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S.M. 1985-86, c. 31
An Act to amend The Teachers' Pensions Act
(Assented to July 11, 1985)
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
Cls. 2(1 (f.2) and (f.3) added.
Subsection 2(1) of The Teachers' Pensions Act, being chapter T20
of the Revised Statutes, is amended by adding thereto, immediately after clause (f) thereof, the following clauses:
(f.1) "common-law relationship" means the relationship between a man and a woman who are common-law spouses;
(f.2) "common-law spouse" means a person represented by another person as the spouse of that other person
(i) where either of the persons is prevented by law from marrying the other, for a period of not less than 3 years, or
(ii) where neither of them is prevented by law from marrying the other, for a period of not less than 1 year;
(f.3) "commuted value" means the present value of an accrued future benefit provided under this Act computed in accordance with procedures determined by the actuary in accordance with The Pension Benefits Act and the regulations made thereunder;.
Cis. 2(1)(n.1 ) and (n.2) added.
Subsection 2(1) of the Act is further amended by adding thereto, immediately after clause (n) thereof, the following clauses:
(n.1) "money purchase account" means an account established in the accounts of the board in accordance with section 68;
(n.2) "normal retirement age" means the age of 70 years and 11 months;.
Cls. 2(1)(o.01) and (o.02) added.
Subsection 2(1) of the Act is further amended by adding thereto, immediately after clause (o) thereof, the following clauses:
(o.01) "pension benefit" means the aggregate monthly or other periodic amounts to which a teacher is or will become entitled under this Act upon retirement or to which any other person is entitled by virtue of the death of the teacher after his retirement;
(o.02) "pension benefit credit" means the value at a particular time of the pension benefits and any other benefits provided under this Act to which a teacher has become entitled as of that time;.
Clause 2(1) (r) of the Act is amended by adding thereto, immediately after the word "district" where it appears for the 2nd time in the 1st line thereof, the words "the governing board of a regional vocational school".
Clause 2(1) (t) of the Act is amended
(a) by striking out sub-clause (iv) thereof and substituting therefor the following sub-clause:
(iv) a person to whom clause 3(c) or (h) applies and who complies with section 62;
(b) by adding thereto, at the end of sub-clause (v) thereof, the word "or"; and
(c) by adding thereto, at the end thereof, the following sub-clause:
(vi) an eligible employee;.
Section 2.1 of the Act is repealed and the following section is substituted therefor :
Period of common-law relationship.
For the purposes of this Act and of any division of the pension benefit credit of a person under subsection 27(2) of The Pension Benefits Act, the period during which a teacher shall be considered a party to a common-law relationship
(a) commences on the day on which the board receives a declaration in the form prescribed in the regulations under The Pension Benefits Act declaring that the teacher is a party to a common-law relationship with another person identified in the declaration; and
(b) ends on the day the teacher notifies the board in writing that the commonlaw relationship has been terminated.
Subsection 6(1) of the Act is repealed and the following subsection is substituted therefor:
Subject as hereinafter provided, an annual pension payable to a person under this Act shall be calculated in accordance with the following formula:
FORMULA
Annual pension=(.02 x A x E) - (.006 x C x G) + (.02 x B x F) - (.006 x D x H)
In this formula
A is the average annual salary of the person as a teacher during the designated 7 years of the person's service or during the person's service if it does not total 7 years;
B is the average annual salary of the person as a teacher during the designated 5 years of the person's service or during the person's service if it does not total 5 years;
C is the average annual Canada pensionable earnings received by the person during the 7 years used for the purposes of determining the value of A for the person or during the person's service if it does not total 7 years;
D is the average annual Canada pensionable earnings received by the person during the 5 years used for the purposes of determining the value of B for the person or during the person's service if it does not total 5 years;
E is the total number of years of service of a person as a teacher before July 1, 1980 in respect of which the teacher has not made a special contribution under section 48.1 expressed in years and fractions of years in decimals to 3 decimal places;
F is the total number of years of service of the person as a teacher
(i) after June 30, 1980, and
(ii) before July 1, 1980 in respect of which the teacher has made special contributions under section 48.1, expre ssed in years and fractions of years in decimals to 3 decimal places;
G is the total number of years of service of a person as a teacher after December 31, 1965 and before July 1, 1980 in respect of which the teacher has not made a special contribution under section 48.1, expressed in years and fractions of years in decimals to 3 decimal places but not including any period during which the person is deemed, under subsection 2(5), to have no Canada pensionable earnings; and
H is the total number of years of service of the person as a teacher
(i) after June 30, 1980, and
(ii) after December 31, 1965 and before July 1, 1980 in respect of which the teacher has made a special contribution under section 48.1, expressed in years and fractions of years in decimals to 3 decimal places, but not including any period during which the person is deemed under subsection 2(5) to have no Canada pensionable earnings.
Subsecs. 6(1.1) and (1.2) added.
Section 6 of the Act is further amended by adding thereto, immediately after subsection (1) thereof, the following subsections:
Pension at normal retirement age.
Subject as herein otherwise provided, a person who has credit for service as a teacher after December 31, 1983, and attains normal retirement age, is entitled to and shall be granted on application therefor an annual pension calculated as provided in subsection (1) in respect of his service as a teacher after December 31, 1983.
Notwithstanding any other provision of this Act, and notwithstanding section 3 and subsection 21(5.3) of The Pension Benefits Act, a teacher who attains the age of 70 years and 11 months is no longer entitled or required
(a) to make the contributions for which provision is made under section 46; nor
(b) to accumulate service as a teacher for any of the purposes of this Act.
Subsection 6(2) of the Act is amended by adding thereto, immediately after the word "and" in the 2nd last line thereof, the words and figures "subject to section 17.1".
Subsection 6(2.1) of the Act is repealed and the following subsections are substituted therefor:
Subject as hereinafter provided, where a person has retired, on or after June 30, 1970 and before January 1, 1985, from employment as a teacher and had
(a) within the 15 years immediately prior to his retirement, not less than 10 years of service as a teacher; or
(b) a total of at least 10 years of service as a teacher, with at least 5 consecutive years of service as a teacher immediately prior to the date of his retirement;
and he reaches the age of 55 years, or any greater age, he is entitled to, and shall be granted, on application therefor, an annual pension calculated as provided in subsection (1).
Pension on retirement after 1984.
Subject as hereinafter provided, a person
(a) who has retired from his employment as a teacher by terminating his contract of employment as a teacher after December 31, 1984;
(b) who has a total of at least 10 years of service as a teacher, with at least 5 years of service as a teacher in the 10 years immediately prior to his retirement; and
(c) who reaches the age of 55 years, or any greater age;
is entitled to and shall be granted, on application therefor, an annual pension calculated as provided in subsection (1).
Subsecs. 6(6), (7) and (8) added.
Section 6 of the Act is amended by adding thereto, at the end thereof, the following subsections :
Determination of designated service for part-time service.
Subject to subsection (7), where a period of service used to determine the average annual salary during a person's designated 7 years of service or designated 5 years of service as a teacher as determined under subsection (4) or (5) respectively includes within any year service that is part-time service, the salary received for that year shall be annualized for the purpose of determining whether or not it is greater or lesser than the rate of salary earned in any other year in that person's last 12 years of service as a teacher, and the annualized salary rate so determined for a period of part-time service shall be used in the calculation of the averages of the annual salary of the person for the purposes of subsections (1) and (3).
Determination of annualized salary in certain cases.
Where under subsection (6) the process of determining the annualized salary results in the selection of a salary rate that is, in the opinion of the board, not an appropriate rate having regard to the duties of the teacher on the part-time basis and for the purposes of this section, the board may, in its absolute discretion, select a salary rate for that year that it deems suitable for the purposes of this section.
Definition of "part-time service".
For the purposes of this section, "part-time service" means regular contractual employment as a teacher where the service of the person so employed is less than full-time but on a regular recurring basis and the earnings for which bear the same proportion to the full-time salary rate for the position held as the time spent in the contractual employment bears to the time spent in employment of a person who holds an equivalent position on a full-time basis.
Section 7 of the Act is repealed.
Subsection 8(3) of the Act is amended by adding thereto, immediately after the word "pension" in the 4th line thereof, the words and figures "applicable to service before January 1, 1985".
Section 8 of the Act is amended by adding thereto, at the end thereof, the following subsection:
Service after December 31, 1984.
For the purpose of calculating a pension payable under this section to the surviving spouse of a person, any service of the person as a teacher after December 31, 1984 shall not be included as service but, for the purpose of determining the eligibility of the surviving spouse of the person to a pension under this section, that service shall be taken into account.
Subsection 8.1(1) of the Act is amended
(a) by adding thereto, at the end of clause (a) thereof, the words and figures "and before January 1, 1985"; and
(b) by striking out the words and figure "or section 7, as the case may require," in the 2nd last line thereof.
Section 8.1 of the Act is amended by adding thereto, immediately after subsection (2) thereof, the following subsection:
A person
(a) who has retired from his employment as a teacher by terminating his contract of employment as a teacher after December 31, 1984;
(b) who has at least 5 years of service as a teacher in the last 10 years immediately prior to his retirement; and
(c) who has
(i) in the case of a person with less than 10 years of service as a teacher, attained the age of 65 years, or
(ii) in the case of a person with 10 years or more of service as a teacher, attained the age of 55 years;
is entitled to and shall be granted, upon application therefor, an annual pension calculated as provided in section 6 reduced by a percentage in accordance with subsection (2) with respect only to the portion of the pension based on service as a teacher before January 1, 1985.
Section 8.3 of the Act is amended by adding thereto, at the end thereof, the following subsection:
Calculation of adjustment on family division of pension.
Where, pursuant to subsection 27(2) of The Pension Benefits Act, the pension benefit credit of a person has been divided between the person and the spouse or former spouse of the person or the former common-law spouse of the person, and the person becomes eligible for a pension adjustment payable under subsection (1), for the purpose of the calculation required under subsection (7), the years of service of the person shall be the number of years calculated in accordance with the following formula :
FORMULA
Y = S - (S x V)/A
In this formula:
Y is the number of years of service, including parts of years expressed in decimals to 3 or 4 decimal places, of the person for the purposes of the calculation required under subsection (7);
S is the number of years of service, including parts of years to 3 or 4 decimal places, of the person as a teacher under this Act;
V is the value, as of the date of retirement of the person, that the part of the person's pension benefit credit, which on division under subsection 27(2) of The Pension Benefits Act was transferred to or to the account of the person's spouse, former spouse or former common-law spouse, would have had if it had been transferred to a separate money purchase account and been left there accumulating interest until that date of retirement; and
A is the commuted value, as of the date of retirement of the person, of a pension calculated under section 6 with no reduction because of any optional pension selected or required under section 10 or due to the division of the person's pension benefit credit.
Section 10 of the Act is amended by adding thereto, at the end thereof, the following subsections:
Notwithstanding any other provision of this section, where, after December 31, 1983, the board begins paying a pension or annuity to a former teacher, if the former teacher is married on the date the payments begin, unless the former teacher and the spouse of the former teacher jointly agree, in writing, in a form approved by the Manitoba Pension Commission, filed with the board not later than 30 days after the date on which the first payment is actually paid, to the payment of the pension or annuity in some other form approved by the board, the former teacher shall be deemed to have elected, under subsection (1), a joint pension or annuity payable during the lives of the former teacher and the spouse but being reduced by 1/3 on the death of either the former teacher or the spouse.
For the purposes of subsection (7)
(a) "married" includes being a party to a common-law relationship; and
(b) "spouse" where used to refer to the spouse of a former teacher, includes a person who is a party with the former teacher to a common-law relationship.
The Act is further amended by adding thereto, immediately after section 17 thereof, the following section:
Election to continue to earn service.
Notwithstanding sections 16 and 17, but subject to subsection 6(1.1), a teacher who has continued employment as a teacher or become reemployed as a teacher after becoming entitled to a pension under subsection 6(2) or after beginning to receive a pension or annuity under any provision of this Act, may elect, by filing a written notice thereof, with the board, to continue to be deemed to be a teacher under this Act during the period of such continued employment or re-employment.
Where a teacher has made an election referred to in subsection (1),
(a) the board shall suspend payment of the pension or annuity effective on the date that the board receives the written election until the teacher again retires under this Act and shall then recommence payment of the pension in the amount in which it would have been on the date of the subsequent retirement if the pension or annuity had continued to be paid during the period of continued employment or re-employment;
(b) the teacher shall contribute to the fund in accordance with section 46 effective from the date of filing the election with the board and, subject to subsection 6(1.2), until the teacher again retires under this Act; and
(c) the board shall pay to the retired teacher, upon his retiring again under this Act, a further pension or annuity in an amount based on the period of service and salaries earned during the period of continued employment or re-employment but service both before and during that period shall be included in determining whether the person is eligible for the additional pension or annuity.
Subsection 19(1) of the Act is amended by striking out the word "sixty" in the last line thereof and substituting therefor the figures "55".
Section 25 of the Act is repealed.
Subsection 27(1) of the Act is repealed and the following subsection is substituted therefor:
Refund of contributions on ceasing to be teacher.
Subject as herein provided, where a teacher
(a) ceases, otherwise than by death, to be a teacher;
(b) is not eligible for an immediate pension; and
(c) is not eligible for, or does not apply for and receive, a disability allowance; and applies to the board for a refund of his contributions to the fund, he shall be entitled to receive, and the board shall pay to him, from the fund, an amount equal to the sum of
(d) the contributions that he has made to the fund established under a former Act and to the fund under this Act prior to January 1, 1984, without interest; and
(e) the contributions that he has made to the fund after December 31, 1983, including interest credited thereon under section 8;
less any amount that has previously been refunded to him or paid to him previously as a disability allowance under this Act or under a former Act or the regulations made thereunder.
Subsection 27(3) of the Act is repealed and the following subsections are substituted therefor:
Where
(a) a teacher; or
(b) a person who has made a remittance under subsection 32.1(1) and who has not again become a teacher for a further period or periods of service as a teacher totalling at least 1 year; or
(c) a person who is entitled under this Act to a refund of contributions that he has made to the fund;
dies and a benefit is not payable under section 8, an application for a refund of his contributions to the fund in respect of service before January 1, 1985, or any remittances made to the fund under subsection 32.1(1) in respect of service before January 1, 1985, may be made to the board
(d) by a person designated in the will of the deceased person or in another written document signed by the deceased person; or
(e) if a person is not so designated, or the person so designated has died,
(i) by the surviving spouse or common-law spouse of the deceased person, or
(ii) if the deceased person leaves no surviving spouse or common-law spouse, by the eligible survivor or survivors of the deceased person, or
(iii) if the deceased person leaves no surviving spouse or common-law spouse or eligible survivor or survivors, by the legal representative of the deceased person;
and the applicant shall be entitled to receive, and the board shall pay to him from the fund an amount equal to the sum of the contributions and remittances that the teacher or that other person has made to the fund established under the former Act and to the fund under this Act in respect of service before January 1, 1985, less any amount that was previously paid to him as a refund under this section or under similar provisions of a former Act or the regulations made thereunder with interest accrued thereon at a rate equal to the average rate of interest earned by the fund and computed in respect of the period between the date on which the teacher or person made to the fund the first of the contributions or remittances to be refunded and the date on which he died; but, if a person who is entitled to make an application under this subsection is
(f) under 18 years of age; or
(g) mentally incompetent; or
(h) otherwise under legal guardianship;
his legal guardian or committee may make the application for him and on his behalf.
Refund on death for service after 1984.
Where, after December 31, 1984,
(a) a teacher; or
(b) any person who is entitled under this Act to a refund of contributions that he has made to the fund;
dies and subsection 27.1(3) would not have applied to him if he had ceased to be a teacher on the date of his death, the board shall pay, in the manner and to the person specified in subsection (3), the amount of the contributions that he has made to the fund after December 31, 1984, including interest credited thereon under subsection (8).
Other benefits on death for service after 1984.
Where, after December 31, 1984, a person who has been a teacher dies and subsection 27.1(3) would have applied to him if he had ceased to be a teacher on the date of his death, the board shall pay, in the manner and to the person specified in subsection (3),
(a) a life annuity to the surviving spouse or common-law spouse or an annuity not to exceed 120 months to any other person entitled thereto under this Act and who applies therefor; or
(b) where there is no surviving spouse or common-law spouse or other person entitled thereto under this Act, a lump sum to the estate of the deceased; the value of which is equal to the commuted value of the deferred pension to which the deceased person would have been entitled under section 8.1 with respect to service after December 31, 1984.
Section 27 of the Act is further amended by adding thereto, at the end thereof, the following subsection:
Accruals on contributions made after 1983.
For the purposes only of determining the amounts of interest payable under subsections (1) and (4), each separate account for a teacher in the accounts of the fund shall, in addition to the contributions made by the teacher, be credited at such times as shall be determined by the board, not less frequently than annually, with interest on contributions made for service after December 31, 1983, at a rate fixed by the board and approved by the Superintendent of Pensions in accordance with The Pension Benefits Act.
Subsecs. 27.1(3) and (4) added.
Section 27.1 of the Act is amended by adding thereto, at the end thereof, the following subsections:
Certain contributions after 1984 not refundable.
Notwithstanding any other provision of this Act, where a teacher
(a) ceases to be a teacher after December 31,1984; and
(b) has at least 5 years of service as a teacher in the last 10 years immediately prior to his ceasing to be a teacher;
his contributions and accruals in the fund in respect of his service under this Act, after December 31, 1984, shall not be refunded and the provisions of this Act continue to apply to him in respect of those contributions and that service after December 31,1984.
Determination of service for subsec. (3).
Where a teacher ceases to be a teacher and receives a refund of a portion of the contributions and accruals in the fund and, because of subsection (3), does not receive a refund of his contributions and accruals in the fund in respect of his service under this Act after December 31, 1984, in order to determine the length of his service for the purposes of determining eligibility for benefits under section 6, 7, 8, 8.1, 18 or 19, the period of his service under this Act in respect of which he received a refund of his contributions and accruals in the fund shall be included in his period of service as a teacher.
The Act is further amended by adding thereto, immediately after section 30 thereof, the following sections:
Contributions over 50% of commuted value.
Where a teacher or former teacher, or the spouse or the former or surviving spouse, or the common-law spouse or the former or surviving common-law spouse, or any other eligible survivor or survivors, of a teacher or former teacher or deceased teacher, commences or commence to receive a benefit, other than a benefit under subsection 27(1) or 27(4) or section 32.3 or subsection 36(9) or 36(10.1), the board shall calculate the commuted value of that part of the benefit which is calculated in respect of service after December 31, 1984, and, if the contributions of the teacher or former teacher or deceased teacher to the fund for service after December 31, 1984, and interest accumulated thereon, exceed 50% of that commuted value, the board shall
(a) transfer the excess into a separate money purchase account for the teacher or former teacher, or the spouse or the former or surviving spouse, or the common-law spouse or the former or surviving common-law spouse, or the eligible survivor or survivors, to provide an additional benefit to the teacher or former teacher, or the spouse or the former or surviving spouse, or the common-law spouse or the former or surviving common-law spouse, or the eligible survivor or survivors, by way of an annuity payable for life or in accordance with any option required or permitted under section 10; or
(b) if the teacher or former teacher, or the spouse or the former or surviving spouse, or the common-law spouse or the former or surviving common-law spouse, or the eligible survivor or survivors, within 90 days of being informed by the board of the amount of the excess, so requests or request the board in writing, refund the excess to the teacher or former teacher, or the spouse or the former or surviving spouse, or the common-law spouse or the former or surviving common-law spouse, or the eligible survivor or survivors, or transfer it to any registered retirement savings plan or registered pension account designated in the request.
For the purposes of subsection (1), the contributions of a teacher or former teacher to the fund shall be calculated by deducting from the actual amounts contributed to the fund by the teacher or former teacher, any portion thereof credited to the pension adjustment account under subsection 43.1(2) and the interest on the contributions of a teacher or former teacher to the fund shall be calculated by deducting from the interest on the actual amounts contributed to the fund, any interest accumulated on the portion of the contributions credited to the pension adjustment account under subsection 43.1(2).
Division of pension benefit credit.
Where pursuant to subsection 27(2) of The Pension Benefits Act the pension benefit credit of a teacher or former teacher is divided, the portion of the pension benefit credit to which the spouse or former spouse, or the commonlaw spouse or former common-law spouse, of the teacher or former teacher is entitled on the division shall be transferred by the board
(a) to another pension plan in which the spouse or former spouse, or the common-law spouse or former common-law spouse is or was a member or to a retirement benefit plan of a type prescribed in the applicable regulations under The Pension Benefits Act, designated by the spouse or former spouse or the common-law spouse or former common-law spouse in writing addressed to the board; and
(b) until the spouse or former spouse or the common-law spouse or former common-law spouse so designates a transferee under clause (a), to a money purchase account in the accounts of the board.
Reduction in credits on division of assets.
Where the pension benefit credit of a teacher has been divided pursuant to subsection 27(2) of The Pension Benefits Act, and the teacher subsequently becomes entitled to payment of a pension under this Act, or to a transfer of pension benefit credits, or to a refund of contributions made under this Act,
(a) the pension to which the teacher would be entitled under this Act, other than this section, shall be reduced by 1/2 of the pension accrued during the period on the basis of which the division was made and which would have been payable to the teacher in the month of his retirement if the teacher had retired on the date used for the calculation of the division of the pension benefit credit and had been granted a pension which was not subject to any penalty for early retirement and which had been adjusted in accordance with section 8.3 to the month of retirement;
(b) the amount of any transfer of pension benefit credits made in respect of the teacher shall be the amount which would be transferred under this Act, other than this section, reduced by the amount which was transferred to the credit of the spouse or former spouse or common-law spouse together with interest thereon at the average rate of income earned on the investments of the fund made during the period commencing on the date the division was made and ending on the day the transfer is made; and
(c) the amount of the refund of contributions shall be the amount which would be refunded under this Act, other than this section, reduced by the amount that was transferred to the credit of the spouse or former spouse or common-law spouse together with interest thereon at the average rate of income earned on the investments of the fund made during the period commencing on the date the division was made and ending on the day the refund is made.
Reduction of pension on division of assets.
Where the pension benefit credits of a person receiving a pension under this Act are divided pursuant to subsection 27(2) of The Pension Benefits Act, the pension payable to the person shall be reduced as of the date of the division to a pension which can, in the opinion of the actuary, be provided by an amount equal to
(a) the commuted value of the pension payable to the person under this Act, other than this section, as of the date of the division;
less
(b) the amount which was transferred to the credit of the spouse or former spouse or the common-law spouse or former common-law spouse of the person.
Reduction of death benefit after division of assets.
Where after the pension benefit credit of a teacher has been divided pursuant to subsection 27(2) of The Pension Benefits Act, a benefit becomes payable under this Act by reason of and in respect of the death of the teacher
(a) the benefit, if a lump sum amount, shall be reduced by the amount which was transferred to the credit of the spouse or former spouse or the common-law spouse or former common-law spouse together with interest thereon at the average rate of income earned on the investments of the fund made during the period commencing on the date the division was made and the date of the death of the teacher; and
(b) the benefit, if a pension payable to a survivor, shall be reduced to a pension which can, in the opinion of the actuary, be provided by an amount equal to
(i) the commuted value of the pension payable to the survivor under this Act, other than this section, as of the date of the death of the teacher, less
(ii) the amount which was transferred to the credit of the spouse or former spouse or the common-law spouse or former common-law spouse of the teacher together with interest thereon at the average rate of income earned on the investments of the fund made during the period commencing on the date the division was made and ending on the date of the death of the teacher.
Clause 36(2) (a) of the Act is amended by striking out the words "teachers and shall be" in the 1st line thereof.
Clause 36(10) (f) of the Act, as enacted by chapter 67 of the Statutes of Manitoba, 1974, is repealed and the following clause is substituted therefor:
(f) an employer in Canada, including Manitoba, other than any of the employers set out in clauses (a) to (e), designated by the Lieutenant Governor in Council as a reciprocating employer for the purposes of this subsection;.
Section 39 of the Act is amended by numbering the present section as subsection (1) and by adding thereto, at the end thereof, the following subsection:
Where
(a) a person requests information; or
(b) as the result of an election or decision of any person the board is required to obtain information;
and in order to provide or obtain the information the board requires a report or calculation by an actuary, the board may either before or after providing or obtaining the information
(c) charge and collect from the person requesting the information or making the election or decision a fee equal to the amount charged by the actuary for providing the report or calculation; or
(d) charge and collect a flat fee prescribed by the board for providing or obtaining the information.
Subsections 40(5) to (9) of the Act are repealed.
Section 42 of the Act is amended by adding thereto, at the end thereof, the following subsection:
Transfers for amounts paid under subsecs. 27(4.1) and 30.2(1).
In each month the board shall transfer from Account B to, and for the credit of, Account A, an amount equal to
(a) 1/2 the amount of any life annuity or lump sum payment paid in that month to a person entitled thereto under subsection 27(4.1); and
(b) 1/2 of any amount paid from the fund or transferred to a money purchase account in the accounts of the board in that month under subsection 30.2(1).
Subsection 43(3) of the Act is repealed and the following subsection is substituted therefor:
Account B shall be credited
(a) with moneys paid into the fund by the Minister of Finance under section 52;
(b) with contributions in excess of 6% of applicable salary paid to the board under subsection 55(2.1);
(c) with 50% of moneys paid to the board under subsections 56(5) and (6);
(d) with moneys paid to the board under section 61; and
(e) with all interest earned on investments credited to the account.
Subsecs. 44(2) and (2.1) rep. and sub.
Subsections 44(2) and (2.1) of the Act are repealed and the following subsection is substituted therefor:
Moneys in the fund may be invested in any investments that are permissible under The Pension Benefits Act and the regulations made thereunder.
Subsection 46(2) of the Act is repealed and the following subsection is substituted therefor:
Every person employed by a school district as a substitute teacher
(a) shall make the contributions referred to in subsection (1) in the manner referred to therein with respect to all periods of employment as a substitute teacher with that school district following a period of 2 consecutive numerical years after December 31, 1983, in each of which the person has earned from employment as a substitute teacher with that school district not less than 1/4 of the maximum pensionable earnings as determined under the Canada Pension Plan for that numerical year; and
(b) may make the contributions referred to in subsection (1) with respect to any period of employment as a substitute teacher where those contributions are not required to be made under clause (a) at any time within 90 days after the end of the numerical year within which he was so employed.
Subsecs. 48.1(4) and (5) added.
Section 48.1 of the Act is amended by adding thereto, at the end thereof, the following subsections :
Election of persons teaching beyond pension entitlement.
Notwithstanding clause (1)(a), a person who became entitled to receive a pension under subsection 6(2) before July 1, 1980 and who did not retire by terminating his contract of employment before June 30, 1980, may make an election under subsection (1) on or before December 31, 1985.
Where a person makes the election provided for under subsection (4) and makes the special contribution to the fund as provided for in subsection (1), his pension shall be adjusted as if he had made the election and contribution at the date his pension came into effect, and the board shall pay to that person the adjusted pension from and after the month in which the contribution is made, but the adjustments made under section 8.3 before the date on which the pension is adjusted shall not be recalculated in respect of the increased benefit.
Subsection 56(2) of the Act is repealed.
Subsection 56(4) of the Act is amended by striking out clause (d) thereof and substituting therefor the following clause:
(d) any leave of absence up to 52 weeks;.
Section 56 of the Act is amended by adding thereto, at the end thereof, the following subsections :
A teacher who was granted a leave of absence from his position as a teacher by his employer for the purpose of furthering his education and during the term of the leave attends an educational institution recognized by the minister as an educational institution suitable for furthering the education of teachers may, at any time before the expiration of 18 months after again becoming a teacher under this Act on a regular basis, apply to the board to have the whole or any part of the period of the educational leave included in computing his service as a teacher for the purposes of this Act and the board shall grant the application if the applicant
(a) pays to the board by lump sum; or
(b) agrees in writing with the board to pay to the board by installments, subject to such terms and conditions as the board may prescribe;
an amount equal to twice the contributions he would make or would have been required to make under subsection 46(1) if he had continued to be employed as a teacher during the period of the educational leave or that part thereof to which the application relates, and during that time he was earning a salary at a rate equal to that which he earns on the first day of work after again becoming a teacher under this Act on a regular basis, including interest on twice the contributions at a rate equal to the average rate of interest earned by the fund, compounded yearly and computed in respect of the period between the date on which he again becomes a teacher on a regular basis and the date on which the payment is made.
Late applications for educational leave.
A teacher who, either before or after the effective date, was granted a leave of absence from a position as a teacher by his employer for the purpose of furthering his education and during the term of the leave attended an educational institution recognized by the minister as an educational institution suitable for furthering the education of teachers, and who by reason of lapse of time is unable to apply under subsection (5), may at any time before he commences receiving a pension or receives a refund of his contributions to the fund, or within 6 months of the coming into force of this subsection, apply to the board to have the whole or any part of the period of educational leave included in computing his service as a teacher for the purposes of this Act and the board shall grant the application if the applicant
(a) pays to the board by lump sum; or
(b) agrees in writing with the board to pay to the board by installments, subject to such terms and conditions as the board may prescribe;
an amount equal to
(c) twice the contributions he would have been required to make under subsection 46(1) if he had continued to be employed as a teacher during the period of the educational leave or that part thereof to which the application relates, and during that time he was earning a salary at a rate equal to that which he earns on the 1st day of work after again becoming a teacher under this Act on a regular basis, including interest on twice the contributions at a rate equal to the average rate of interest earned by the fund, compounded yearly and computed in respect of the period between the date on which he again becomes a teacher on a regular basis and the date on which the payment is made; or
(d) the actuarial cost, as determined by the actuary, of providing the increase in the applicant's pension by reason of the increase in the applicant's service as a teacher for the purposes of this Act;
whichever is the greater.
Section 57 of the Act is repealed.
Section 58 of the Act is amended by adding thereto, at the end thereof, the following subsections :
Agreements re qualifying service.
The board may enter into an agreement with an employer other than a reciprocating Manitoba employer, under which
(a) the board agrees to treat, in accordance with the terms of the agreement, as service as a teacher or former teacher, for the purposes only of determining eligibility of the teacher or former teacher for a benefit on retirement or a benefit on death under this Act, periods during which the teacher or former teacher was employed by the employer; and
(b) the employer agrees to treat, in accordance with the terms of the agreement, as service as a member or former member of any pension plan provided for the benefit of persons employed by the employer, for the purposes only of determining eligibility for a benefit on retirement or a benefit on death under that pension plan, periods during which that member or former member of the pension plan was a teacher under this Act.
Where the board enters into an agreement under subsection (8), it may administer this Act as though the terms of the agreement were part of this Act for the purpose of determining eligibility for benefits on retirement and benefits on death under this Act.
Subsection 64(2) of the Act is amended by striking out the word and figures "section 26" in the 1st line thereof and substituting therefor the words and figures "sections 26 and 30.2".
The Act is further amended by adding thereto, immediately after section 67 thereof, the following sections:
MONEY PURCHASE ACCOUNT
Establishment of money purchase accounts.
The board shall establish in the accounts of the board and maintain in accordance with the rules separate money purchase accounts, as may be required under this Act or the rules, for teachers, recipients of annuities or pensions payable under this Act, or persons on whose behalf the board is required or requested to transfer moneys to a money purchase account.
Money purchase accounts not liable to general liabilities of board.
Moneys showing in the accounts of the board to the credit of a person in a money purchase account are not subject to the general liabilities of the board other than the liability of the board to the person in respect of the money purchase account.
Charges to money purchase accounts.
The board may charge administration fees as prescribed by the board to each person who is shown in the accounts of the board to have money in a money purchase account and may deduct from the moneys and transfer to the general funds of the board the amount of those fees.
Where a money purchase account has been established for a person, the moneys shown to the credit of the person in the account shall, for the purposes of investment and earning income and interest be conclusively deemed to be part of the fund.
Transfers from money purchase accounts.
Where a money purchase account has been established for a person, subject to any restrictions imposed on the transfer of moneys in such accounts under the regulations made under The Pension Benefits Act, the board may transfer the moneys to the credit of the person in the money purchase account, or any part thereof, on the written direction of the person, to the person or to any financial institution designated by the person.
Conversion of money purchase accounts to annuity.
Where a money purchase account has been established for a person in the accounts of the board, the board may, on the written direction of the person, convert the moneys to the credit of the person in the account to an obligation of the board to pay an annuity to the person or to a nominee of the person under such terms and conditions as may be prescribed by the rules and in such amount as may be determined by a formula approved by the board on the advice of the actuary.
Obligations of fund for annuity.
Where the board converts money in a money purchase account of a person to an obligation of the board to pay an annuity, the money required to fund the obligation of the board to pay the annuity, as certified by the actuary, shall be transferred from the money purchase account to the general accounts of the board and the obligation to pay the annuity is thereafter a general obligation of the board payable from the fund without any liability in respect thereof falling on any moneys to the credit of the money purchase account.
Pension adjustments not to apply to annuities.
Where the board converts moneys in a money purchase account of a person to an obligation to pay an annuity, the person to whom the annuity is payable is not entitled to any pension adjustment under section 8.3 in respect of that annuity and that section does not apply to that annuity or to the person in respect of that annuity.
The board may make rules respecting the administration of money purchase accounts established in the accounts of the board and, without limiting the generality of the foregoing, may make rules
(a) respecting authorization for the establishment of money purchase accounts in the accounts of the board for moneys transferred from other registered pension plans or from registered retirement savings plans;
(b) respecting the types of annuities to which moneys to the credit of a money purchase account may be converted;
(c) prescribing the times when persons with moneys to the credit of a money purchase account may request conversion of the moneys or a part thereof to annuities.
Transfers from Account A to Account B.
From and out of Account A, the board shall transfer to, and for the credit of, Account B,
(a) on July 1, 1985 the sum of $233,600;
(b) on July 1, 1986 the sum of $629,700;
(c) on July 1, 1987 the sum of $810,000;
(d) on July 1, 1988 the sum of $836,700; and
(e) on July 1, 1989 the sum of $866,400.
Where prior to July 1, 1985 a person had applied for and been granted an annual pension under section 7 or a disability allowance under subsection 19(1) of The Teachers' Pensions Act as it was prior to that date, if after that date, that person, or a person designated by him as a surviving beneficiary is entitled to payment of the annual pension or disability allowance or a survivor benefit based on the annual pension, the board shall pay to the person or the surviving beneficiary from and after July 1, 1985, but not in respect of any period before that date, an annual pension, disability allowance or survivor benefit, as the case may be, where it is payable computed as if that Act, as amended by this Act, had been in force at the time the annual pension or disability allowance first became payable but the adjustments made under section 8.3 of The Teachers' Pensions Act before July 1, 1985 shall not be recalculated in respect of the increased benefit.
Where prior to July 1, 1985 a person who had applied for and been granted an annual pension under The Teachers' Pensions Act as it was prior to that date, would have been affected by the application of section 10 of this Act if it had been in effect at the date of his retirement, the board shall pay to that person, or to a person designated by him as a surviving beneficiary, from and after July 1, 1985, but not in respect of any period before that date, an annual pension computed as if that Act, as amended by this Act, had been in force at the time the annual pension first became payable but the adjustments made under section 8.3 of The Teachers' Pensions Act before July 1, 1985, shall not be recalculated in respect of the increased benefit.
This Act, except sections 9, 10, 11, 18.1, 29.1, 32, 35 and 40 and subject to subsections (2) and (3), comes into force on the day it receives the royal assent, and sections 29.1 and 35 come into force on June 15, 1985, and sections 9,10, 11, 18.1, 32 and 40 come into force on July 1, 1985, but
(a) sections 1, 2, 3, 5, 6, 7, 8, 16, 17, 18, 19, 20, 22, 31, 33, 34, 36 and 38 are retroactive and shall be deemed to have been in force on, from and after January 1,1984; and
(b) sections 12, 13, 14, 15, 21, 23, 24, 29 and 39 are retroactive and shall be deemed to have been in force on, from and after January 1,1985.
Commencement of secs. 29.1 and 35.
If this Act receives the royal assent after June 15, 1985, then sections 29.1 and 35 are retroactive and shall be deemed to have been in force on, from and after June 15,1985.
Commencement of secs. 9, 10, 11, 18.1, 32 and 40.
If this Act receives the royal assent after July 1, 1985, then sections 9,10,11,18.1, 32 and 40 are retroactive and shall be deemed to have been in force on, from and after July 1, 1985.