SNL2005 CHAPTER M-6.1 - MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT

SNL2005 CHAPTER M-6.1 MEMBERS OF THE HOUSE OF ASSEMBLY RETIRING ALLOWANCES ACT Amended: 2006 c40 s11; 2006 c48; 2008 c5; 2008 c23 ss1-4; 2009 c41; 2017 c25 CHAPTER M-6.1 AN ACT TO REVISE THE LAW RESPECTING PENSIONS FOR MEMBERS OF THE HOUSE OF ASSEMBLY (Assented to December 13, 2005 ) Analysis 1. Short title PART I INTERPRETATION 2. Interpretation 3. Calculation PART II APPLICATION 4. Application 5. Election 6. Re-election 7. Contributions 8. Return of contributions PART III REGISTERED PLAN 9. Income Tax Act ( Canada ) 10. Entitlement 11. Calculation of registered allowance 12. Pre-retirement death 13. Registered survivor benefit 14. Disability 15. Termination 16. Deferred registered allowance PART IV SUPPLEMENTARY PLAN 17. Supplementary plan account 18. Registered plan reduction 19. Entitlement 20. Calculation of supplementary allowance 21. Pre-retirement death 22. Supplementary survivor benefit 23. Disability 24. Termination 25. Deferred supplementary allowance PART V GENERAL 26. Assignment of allowance 27. Designated beneficiary 28. Payment to children 29. Marriage breakdown 30. Purchase of service 31. Purchase of prior service 32. Reciprocal transfers 33. Payment of contributions 34. Directive of minister 35. Existing plan protected 36. Consequential amendments 37. RSNL1990 cM-6 Rep. 38. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This Act may be cited as the Members of the House of Assembly Retiring Allowances Act . 2005 cM-6.1 s1 PART I INTERPRETATION Back to Top Interpretation 2. (1) In this Act (a) "average YMPE" means the average of the member's maximum pensionable earnings as defined under the Canada Pension Plan (Canada) for the calendar year in which the member retires and the two calendar years immediately preceding that year; (b) "base MHA salary" means the average of the member's annual MHA salary in the 3 calendar years of MHA service in which his or her salary was highest, in respect of which contributions have been made under this Act; (c) "base ministers salary" means the average of the member's annual ministers salary in the 3 calendar years of ministers service in which his or her salary was highest, in respect of which contributions have been made under this Act; (d) "commuted value" means commuted value as defined in the Pension Benefits Act, 1997 ; (e) "member" means a person who has contributions in the Plans; (f) "MHA" means a person who is a member of the House of Assembly; (g) "MHA salary" means (i) for members elected for the first time before January 1, 2010 (A) the salary authorized by the Legislature to be paid to an MHA up to June 30, 2007 , (B) with respect to time served as a member after June 30, 2007 , 81.2% of the salary to be paid to an MHA under subsection 11(1) of the House of Assembly Accountability, Integrity and Administration Act as may be varied by that Act, and (C) an amount that the Minister of Finance may prescribe in a directive under this Act, and (ii) for members elected for the first time after December 31, 2009 (A) the salary authorized to be paid to an MHA under subsection 11(1) of the House of Assembly Accountability, Integrity and Administration Act as may be varied by that Act, and (B) an amount that the Minister of Finance may prescribe in a directive under this Act; (h) "MHA service" means a period of service accrued as an MHA; (i) "minister" means a member of the executive council and for the purposes of this Act includes (i) the Speaker of the House of Assembly, and (ii) the Leader of the Opposition in the House of Assembly; (j) "ministers salary" means the salary authorized by the Legislature to be paid to a minister; (k) "ministers service" means a period of service accrued as a minister; (l) "month" means a calendar month and for the purpose of the application of this Act to a member elected for the first time after the 45th General Assembly includes a portion of a month; (m) "other service" means a period of service credited to a member under sections 30, 31 and 32; (n) "partner" (i) in relation to a member who has a spouse, means a person who is not the spouse of the member who has cohabited continuously with the member in a conjugal relationship for not less than 3 years, and (ii) in relation to a member who does not have a spouse, means a person who has cohabited continuously with the member in a conjugal relationship for not less than one year, and is cohabiting or has cohabited with the member within the preceding year; (o) "pensionable service" means any period of service credited to a member that may be used in calculating an allowance under this Act, and includes service credited under sections 30, 31 and 32; (p) "pensioner" means a member who is retired and receiving an allowance under this Act; (q) "Plans" means the Registered Plan and the Supplementary Plan established in Parts III and IV; (r) "principal beneficiary" means the spouse of a member, or where the member has a partner, the member's partner; (s) "registered allowance" means an allowance paid under Part III ; (t) "spouse" means a person who (i) is married to the member, (ii) is married to the member by a marriage that is voidable and has not been voided by a judgment of nullity, or (iii) has gone through a form of marriage with the member, in good faith, that is void and is cohabiting or has cohabited with the member within the preceding year; (u) "supplementary allowance" means an allowance paid under Part IV; (v) "vested member" means a member (i) who has served as a member of the House of Assembly for at least 2 general assemblies, and (ii) has served as a member of the House of Assembly for not less than 5 years; and (w) "year" means a calendar year but, for the purpose of the application of this Act to a member elected for the first time after the 45th General Assembly, "year" means a period of 12 consecutive months. (2) For the purposes of this Act (a) a dissolution of the House of Assembly does not, by itself, terminate a person's status as an MHA; and (b) a person who immediately before the dissolution of the House of Assembly was an MHA, shall, if he or she is not elected as an MHA at the general election following the dissolution, no longer be an MHA effective on the day of that general election. (3) For the purpose of the application of this Act to a member elected for the first time after the 45th General Assembly, paragraphs (1)(a), (b) and (c) shall be read as if the words "calendar year" and "calendar years" were "year" and "years" respectively. 2005 cM-6.1 s2 ; 2008 c5 s1 ; 2009 c41 s1 Back to Top Calculation 3. (1) In a calculation of years of service involving a fraction of a year, except under section 7, the fraction, if equal to or greater than 183 days, shall be counted as a full year and, if fewer than 183, days shall not be counted. (2) Notwithstanding paragraphs 2(1)(b) and (c), where a member has fewer than 3 calendar years of MHA service or ministers service, the base MHA salary or base ministers salary shall be the average of the annual rates of MHA salary or ministers salary pro-rated in the manner prescribed by the Minister of Finance in a directive. (3) Subsection (1) does not apply to a member elected for the first time after the 45th General Assembly and in the application of subsection (2) to such a member the words "calendar years" shall be read as "years". 2005 cM-6.1 s3 PART II APPLICATION Back to Top Application 4. (1) This Act applies to every MHA and minister. (2) Notwithstanding another provision of this Act or another Act, where a member retired on or before December 31, 2003 and is in receipt of an allowance under this Act, the allowance and related benefits under this Act payable on or after January 1, 2004 shall be paid from the Members Supplementary Plan Account established under section 17. 2005 cM-6.1 s4 ; 2006 c48 s1 Back to Top Election 5. (1) Before receiving his or her first payment of MHA salary or ministers salary, an MHA or minister may elect not to participate in the Plans during his or her first general assembly if he or she establishes to the satisfaction of the Minister of Finance that he or she is contributing and will continue to contribute to another registered pension plan or registered retirement savings plan. (2) Where an MHA or minister elects under subsection (1) not to participate in the Plans, the Minister of Finance shall deduct from that person's MHA salary and ministers salary and make those contributions, that are required by the person's registered pension plan or registered retirement savings plan, to the maximum allowed under the Income Tax Act ( Canada ). (3) An MHA and a minister shall participate in the Plans in his or her second and subsequent general assemblies. 2005 cM-6.1 s5 Back to Top Re-election 6. (1) An MHA or a minister may not revoke an election under subsection 5(1) during his or her first general assembly, but may during a second or subsequent general assembly as an MHA or minister elect to participate in the Plans in respect of his or her first general assembly. (2) An MHA or a minister who makes an election under subsection (1) shall (a) repay contributions made under subsection 5(2) by the Minister of Finance; and (b) pay the difference between the amount in paragraph (a) and the contributions that would have been required under this Act had the MHA or minister participated. 2005 cM-6.1 s6 Back to Top Contributions 7. (1) An MHA and a minister who elects to participate in the Plans shall contribute to the fund established under the Pensions Funding Act at a rate of 9% of his or her MHA salary and ministers salary. (2) Contributions that exceed the maximum allowed under the Income Tax Act ( Canada ) shall be paid to the Supplementary Plan Account referred to in Part IV. (3) A member who first served as an MHA or minister before or during the 43rd General Assembly shall not make contributions (a) in respect of his or her MHA salary, after 17 years of MHA service; and (b) in respect of his or her ministers salary, after 17 years of ministers service. (4) A member who first served as an MHA or minister after the 43rd General Assembly shall not make contributions (a) in respect of his or her MHA salary, after 20 years of MHA service; and (b) in respect of his or her ministers salary, after 20 years of ministers service. (5) The government of the province shall pay out of the Consolidated Revenue Fund and pay into the fund established under the Pensions Funding Act amounts set by the Minister of Finance in a directive that, in addition to members' contributions under subsection (1), are (a) based on the recommendations of the Plans' actuary, required to meet the cost of benefits accruing under Part III ; and (b) permitted under the Income Tax Act ( Canada ). 2005 cM-6.1 s7 Back to Top Return of contributions 8. A member who is no longer an MHA or a minister and has been elected to only one general assembly or has served as an MHA or minister for a period of fewer than 5 years may elect to receive a refund of his or her contributions together with interest calculated in accordance with the rates prescribed under the Pension Benefits Act, 1997 . 2005 cM-6.1 s8 PART III REGISTERED PLAN Back to Top Income Tax Act ( Canada ) 9. (1) This Part shall be administered in accordance with the Income Tax Act (Canada), and the Income Tax Act (Canada) shall take precedence over this Part in the event of a conflict. (2) Contributions under this Part shall not exceed the amount of the annual deductible contributions to a registered plan permitted under the Income Tax Act ( Canada ). (3) Contributions and other payments under this Part shall be deposited in the fund established under the Pensions Funding Act and all allowances and other monies payable under this Part shall be paid out of that fund. 2005 cM-6.1 s9 Back to Top Entitlement 10. (1) A vested member who is no longer an MHA or a minister may, on application, receive a registered allowance if the member (a) has paid the contributions for service required under this Act; and (b) has (i) at least 30 years of pensionable service, or (ii) reached 60 years of age. (2) A registered allowance shall be paid periodically in equal amounts and shall stop at the end of the month in which the death of the member occurs. (3) A member's entitlement to receive a registered allowance shall be suspended while he or she is an MHA or minister. 2005 cM-6.1 s10 Back to Top Calculation of registered allowance 11. (1) The annual amount of the registered allowance paid to a member elected for the first time before or during the 43rd General Assembly shall be calculated by adding the following amounts: (a) for each year of MHA service for a maximum period of 17 years, 2% of his or her base MHA salary; (b) for each year of ministers service for a maximum period of 17 years, 2% of his or her base ministers salary; and (c) for each year of other service, 2% of the sum of his or her base MHA salary and his or her base ministers salary. (2) The annual amount of the registered allowance paid to a member elected for the first time after the 43rd General Assembly and before November 30, 2015 shall be calculated by adding the following amounts: (a) for each year of MHA service for a maximum period of 20 years, 2% of his or her base MHA salary; (b) for each year of ministers service for a maximum period of 20 years, 2% of his or her base ministers salary; and (c) for each year of other service, 2% of the sum of his or her base MHA salary and his or her base ministers salary. (3) The annual amount of the registered allowance paid to a member elected for the first time on or after November 30, 2015 shall be calculated by adding the following amounts: (a) for each year of MHA service for a maximum period of 20 years, 2% of his or her base MHA salary; (b) for each year of ministers service for a maximum period of 20 years, 2% of his or her base ministers salary; and (c) for each year of service purchased by a member under section 31, 2% of his or her base MHA salary. (4) Notwithstanding paragraph (2)(c), for the purpose of calculating the amount of the registered allowance paid to a member elected for the first time after the 45th General Assembly, his or her base ministers salary shall not be included. (5) Notwithstanding subsections (1) and (2), for the years between January 1, 1998 and December 31, 2004, the annual amount of the registered allowance payable to a member shall be calculated under subsection (1) or (2), as applicable, and reduced by the result of the following calculation: the member's average YMPE ´ .006 X the member's months of MHA service 12 (6) A reduction under subsection (5) shall occur on the first day of the month in which the member reaches the age of 65 years. (7) A registered allowance shall not exceed the maximum allowable benefit as determined under the Income Tax Act ( Canada ). 2005 cM-6.1 s11 ; 2017 c25 s1 Back to Top Pre-retirement death 12. (1) If a vested member dies before receiving a registered allowance, and a survivor benefit is payable under section 13, the surviving principal beneficiary may elect (a) to receive the survivor benefit; or (b) to receive in a lump sum (i) the commuted value of the survivor benefit, or (ii) the commuted value of the member's entitlement under this Part, whichever is greater. (2) If a vested member dies before receiving a registered allowance and there is no principal beneficiary entitled to a survivor benefit under section 13, the commuted value of the entitlement of the member under this Part, calculated as of his or her date of death, shall be paid to the estate of the member. 2005 cM-6.1 s12 ; 2008 c23 s1 Back to Top Registered survivor benefit 13. (1) A principal beneficiary of (a) a pensioner; or (b) a vested member who has paid the contributions for service required under this Act, is entitled on the death of the pensioner or member to a survivor benefit equal to 60% of the pensioner's or member's entitlement. (2) A member's entitlement is the registered allowance he or she would have received had he or she been 65 years of age on the date of his or her death. (3) A survivor benefit shall be paid to the surviving principal beneficiary for life and shall commence on the first day of the month following the month in which the pensioner or member dies. (4) Where a pensioner or vested member referred to in subsection (1) dies leaving a surviving principal beneficiary who dies after that pensioner or vested member, the survivor benefit shall be paid to or for the benefit of his or her surviving children while they are under the age of 18 years, or under the age of 25 years while they are in full-time attendance at a recognized school or post-secondary institution. (5) Where for any reason a survivor benefit ceases to be payable, the amount by which the member's contributions, together with interest to the date the benefit commenced at a rate prescribed by the Minister of Finance, exceeds all benefits received from the registered plan shall be paid to the person whose benefit ceased or to that person's estate. 2005 cM-6.1 s13 ; 2006 c40 s11 ; 2008 c23 s2 Back to Top Disability 14. Where a member becomes totally and permanently disabled within the meaning of the Income Tax Act (Canada) while serving as an MHA or minister, the member shall be retired and there shall be paid to the member the registered allowance he or she would have been eligible to receive at 65 years of age. 2005 cM-6.1 s14 Back to Top Termination 15. (1) A vested member who is no longer an MHA or a minister and who (a) has paid the contributions for service required under this Act; and (b) is ineligible to immediately receive a registered allowance, may elect within 180 days after termination (c) a transfer of the commuted value of the entitlement of the member under this Part, in accordance with paragraph 40(1)(a) of the Pension Benefits Act, 1997 ; or (d) a deferred registered allowance. (2) In default of an election under subsection (1) the member is considered to have elected to receive a deferred registered allowance. (3) A transfer under paragraph (1)(c) that is not to another pension plan or deferred life annuity shall, regardless of when the pensionable service was credited, be to a retirement arrangement approved for this purpose by the Superintendent of Pensions appointed under the Pension Benefits Act, 1997 . (4) A transfer under paragraph (1)(c) shall not be less than the contributions made by that member with interest at the rate prescribed under the Pension Benefits Act, 1997 . (5) Where a transfer under paragraph (1)(c) would be greater than the maximum amount permitted under the Income Tax Act ( Canada ), the excess shall be paid to the member. (6) Where the annual registered allowance payable to a member is less than 4% of the YMPE for the calendar year in which a member stopped being an MHA or minister, the member is entitled to receive a lump sum payment instead of the deferred registered allowance under section 16. (7) Where the commuted value of a deferred registered allowance is less than 10% of the YMPE for the calendar year in which a member stopped being an MHA or a minister, the member is entitled to receive a lump sum payment instead of the deferred registered allowance under section 16. 2005 cM-6.1 s15 Back to Top Deferred registered allowance 16. (1) A member who is no longer an MHA or a minister and elects or is considered to have elected under section 15 to receive a deferred registered allowance may, on becoming eligible to receive a registered allowance under section 10, apply to receive an allowance calculated in accordance with section 11. (2) Where there is an increase in the amount of a registered allowance, that increase shall apply to the deferred registered allowance of a person as if he or she was a pensioner on the first of the month following termination. 2005 cM-6.1 s16 PART IV SUPPLEMENTARY PLAN Back to Top Supplementary plan account 17. The Members Supplementary Plan Account is established in the Consolidated Revenue Fund. 2005 cM-6.1 s17 Back to Top Registered plan reduction 18. (1) A member's supplementary allowance shall be reduced by the amount of the member's registered allowance paid under Part III . (2) A disability allowance paid under this Part shall be reduced by the amount of any disability allowance paid under Part III. (3) A survivor benefit paid under this Part shall be reduced by the amount of a survivor benefit paid under Part III . (4) A benefit paid to a designated beneficiary under this Part shall be reduced by a benefit paid to that beneficiary under Part III . (5) A return of contributions, commuted value or other lump sum payment in respect of an entitlement under this Part shall be reduced by the amount of a similar payment made under Part III . (6) The total benefits and allowances paid annually under this Act in respect of a member, calculated before a reduction under subsection 20(5), shall not exceed 75% of the sum of the member's base MHA salary and base ministers salary. 2005 cM-6.1 s18 Back to Top Entitlement 19. (1) A vested member who is no longer an MHA or a minister may, on application, receive a supplementary allowance if (a) the member has paid the contributions for service required under this Act; and (b) the member's (i) years of MHA service added to his or her age in years equals or exceeds 60, or (ii) years of MHA service added to his or her age in years equals 55 where the member has served as Premier. (2) Notwithstanding subsection (1), a vested member elected for the first time after the 45th General Assembly who is no longer an MHA or a minister may, on application, receive a supplementary allowance if (a) the member has paid the contributions for service required under this Act; and (b) the member's (i) MHA service added to his or her age equals or exceeds 60, or (ii) MHA service added to his or her age equals 55, where the member has served as Premier. (2.1) Notwithstanding subsections (1) and (2), a vested member elected for the first time after December 31, 2009 and before November 30, 2015 who is no longer an MHA or a minister may, on application, receive a supplementary allowance if (a) the member has paid the contributions for service required under this Act; and (b) the member has reached the age of 55 years. (2.2) Notwithstanding subsection (2.1), a vested member elected for the first time after December 31, 2009 and before November 30, 2015 who is no longer an MHA or a minister may, on application, receive a reduced supplementary allowance calculated in accordance with subsection 20(2.3) if (a) the member has paid the contributions for service required under this Act; and (b) the member has reached the age of 50 years. (2.3) Notwithstanding subsections (1) and (2), a vested member elected for the first time on or after November 30, 2015 who is no longer an MHA or a minister may, on application, receive a supplementary allowance if (a) the member has paid the contributions for service required under this Act; and (b) the member has reached the age of 60 years. (3) A supplementary allowance shall be paid periodically in equal amounts and shall stop at the end of the month in which the death of the member occurs. (4) A person's entitlement to receive a supplementary allowance shall be suspended while the person is an MHA or minister. 2005 cM-6.1 s19 ; 2009 c41 s2 ; 2017 c25 s2 Back to Top Calculation of supplementary allowance 20. (1) The annual amount of the supplementary allowance paid to a member who first served as an MHA or minister before or during the 43rd General Assembly shall be calculated by adding the following amounts: (a) for each of the first 10 years of MHA service, 5% of his or her base MHA salary; (b) for each of the next 5 years of MHA service, 4% of his or her base MHA salary; (c) for each of the next 2 years of MHA service, 2.5% of his or her base MHA salary; (d) for each of the first 10 years of ministers service, 5% of his or her base ministers salary; (e) for each of the next 5 years of ministers service, 4% of his or her base ministers salary; (f) for each of the next 2 years of ministers service, 2.5% of his or her base ministers salary; and (g) for each year of other service, 2% of the sum of his or her base MHA salary and base ministers salary. (2) The annual amount of the supplementary allowance paid to a member who first served as an MHA or minister after the 43rd General Assembly shall be calculated by adding the following amounts: (a) for each of the first 10 years of MHA service, 5% of his or her base MHA salary; (b) for each of the next 10 years of MHA service, 2.5% of his or her base MHA salary; (c) for each of the first 10 years of ministers service, 5% of his or her base ministers salary; (d) for each of the next 10 years of ministers service, 2.5% of his or her base ministers salary; and (e) for each year of other service, 2% of the sum of his or her base MHA salary and base ministers salary. (2.1) Notwithstanding subsection (2), the annual amount of the supplementary allowance paid to a member elected for the first time after December 31, 2009 and before November 30, 2015 shall be calculated by adding the following amounts: (a) for each year of MHA service for a maximum period of 20 years, 3.5% of his or her base MHA salary; (b) for each year of ministers service for a maximum period of 20 years, 3.5% of his or her base ministers salary; and (c) for each year of other service, 2% of his or her base MHA salary. (2.2) Notwithstanding subsection (2), the annual amount of the supplementary allowance paid to a member elected for the first time on or after November 30, 2015 shall be calculated by adding the following amounts: (a) for each year of MHA service for a maximum period of 20 years, 2.5% of his or her base MHA salary; (b) for each year of ministers service for a maximum period of 20 years, 2.5% of his or her base ministers salary; and (c) for each year of service purchased by a member under section 31, 2% of his or her base MHA salary. (2.3) For the purpose of subsection 19(2.2), the retiring allowance awarded under subsection (2.1) shall be reduced by 6% for each year that the members age is less than the age of 55 years. (3) Notwithstanding paragraph (2)(e), for the purpose of calculating the amount of the supplementary allowance paid to a member elected for the first time after the 45th General Assembly, his or her base ministers salary shall not be included. (4) For the purposes of this section a member's years of service as a Member of Parliament or a minister in the House of Commons credited under section 32 shall be considered to be years of MHA service. (5) The annual amount shall be reduced by the result of the following calculation: the member's average YMPE ´ .006 X the member's months of MHA service and other service after March 31, 1967 12 (6) Notwithstanding subsection (5), the reduction under that subsection shall not apply to MHA service for the years between January 1, 1998 and December 31, 2004 . (7) The reduction under subsection (5) shall occur on the first of the month following the month in which the member reaches the age of 65 years. 2005 cM-6.1 s20 ; 2009 c41 s3 ; 2017 c25 s3 Back to Top Pre-retirement death 21. (1) If a vested member dies before receiving a supplementary allowance and a survivor benefit is payable under section 22, a surviving principal beneficiary may elect (a) to receive the survivor benefit; or (b) to receive in a lump sum (i) the commuted value of the survivor benefit, or (ii) the commuted value of the member's entitlement, whichever is greater. (2) If a vested member dies before receiving a supplementary allowance and there is no principal beneficiary entitled to a survivor benefit payable under section 22, the commuted value of the entitlement of the member, calculated as of his or her date of death, shall be paid to the estate of the member. 2005 cM-6.1 s21 ; 2008 c23 s3 Back to Top Supplementary survivor benefit 22. (1) A principal beneficiary of (a) a pensioner; or (b) a vested member who has paid the contributions for service required under this Act, is entitled on the death of the pensioner or member to a survivor benefit equal to the greater of (c) 60% of the pensioner's or member's entitlement; or (d) 25% of the sum of the member's annual MHA salary and ministers salary in the 12 months preceding the date of death. (2) Where the pensioner or member referred to in subsection (1) is also survived by one or more children, each child is entitled to a benefit equal to 1/6 of the survivor benefit calculated under subsection (1), or, where the total amount payable under this section would exceed the maximum payable under this Act, the amount by which the maximum exceeds the principal beneficiarys benefit shall be divided equally among all the eligible children. (3) A member's entitlement is the supplementary allowance he or she would have received had he or she been eligible to receive an allowance under section 19 at the date of his or her death, with no reduction under subsection 20(5) until the first of the month following the month in which the member would have reached the age of 65 years. (4) A survivor benefit shall be paid to the surviving principal beneficiary for life and shall commence on the first day of the month following the month in which the pensioner or member dies. (5) Where a pensioner or vested member referred to in subsection (1) dies leaving a surviving principal beneficiary who dies after that pensioner or vested member, 1/3 of the survivor benefit shall be paid to or for the benefit of each of his or her surviving children or, where the total amount payable under this section would exceed the maximum benefit payable under this Act, the survivor benefit shall be divided equally among all of the eligible children. (6) An allowance paid to a child under this section shall be paid to or for the benefit of that child while he or she is under the age of 18 years, or under 25 years while he or she is in full-time attendance at a recognized school or post-secondary institution. (7) Where for any reason a survivor benefit ceases to be payable and no one remains to whom a benefit is payable, the amount by which the member's contributions, together with interest at a rate prescribed by the Minister of Finance, exceeds all benefits derived from those contributions shall be paid to the person whose benefit ceased or to that person's estate. 2005 cM-6.1 s22 ; 2006 c40 s11 ; 2008 c23 s4 Back to Top Disability 23. (1) Where a member who is an MHA or a minister is unable to perform his or her duties because of a physical or mental incapacity that is medically certified by 2 medical doctors employed or retained by the Department of Health & Community Services as likely to be permanent, the member shall be retired and there shall be paid to the member an allowance in an amount equal to the greater of (a) the supplementary allowance calculated in accordance with sections 19 and 20; and (b) 40% of the sum of his or her annual MHA salary and ministers salary in the calendar year preceding the date set in subsection (2). (2) An allowance payable under subsection (1) becomes payable on a date set by the Minister of Finance. 2005 cM-6.1 s23 Back to Top Termination 24. (1) A vested member who is no longer an MHA or a minister and who (a) has paid the contributions for service required under this Act; and (b) is ineligible to immediately receive a supplementary allowance, may elect within 180 days after termination (c) to receive in a lump sum the commuted value of the member's entitlement under this Part, or (d) a deferred supplementary allowance. (2) In default of an election under subsection (1) the member is considered to have elected to receive a deferred supplementary allowance. 2005 cM-6.1 s24 Back to Top Deferred supplementary allowance 25. (1) A member who is no longer an MHA or a minister and elects or is considered to have elected under section 24 to receive a deferred supplementary allowance may, on becoming eligible to receive a supplementary allowance under section 19, apply for and receive an allowance calculated in accordance with section 20. (2) Where there is an increase in the amount of a supplementary allowance, that increase shall apply to the deferred supplementary allowance as if the recipient was a pensioner on the first of the month following termination. 2005 cM-6.1 s25 PART V GENERAL Back to Top Assignment of allowance 26. An allowance paid under this Act shall not be assigned, anticipated, surrendered, charged or given as security except in accordance with the Pension Benefits Act, 1997 . 2005 cM-6.1 s26 Back to Top Designated beneficiary 27. (1) A member who does not have a principal beneficiary or a child who would be entitled to a survivor benefit under section 13 or 22 may designate a beneficiary of his or her survivor benefit. (2) A designation under subsection (1) shall be made, in writing, to the Minister of Finance, signed by the member and witnessed. (3) The beneficiary designated under subsection (1) shall be a child who does not qualify under section 13 or 22, a parent, grandparent, brother, sister or grandchild of the member who is at the time of the death primarily dependent on the member for financial support. (4) The survivor benefit under sections 13 and 22 shall be paid to the beneficiary while he or she is (a) under 18 years of age; (b) under 25 years of age, if the beneficiary is in full-time attendance at a recognized school or post-secondary institution; or (c) financially dependent by reason of mental or physical incapacity. (5) If a member marries or has a child subsequent to making a designation, the designation is void. (6) A designation may be revoked by a member and a new designation made in accordance with this section. 2005 cM-6.1 s27 Back to Top Payment to children 28. (1) An allowance or benefit payable under this Act, to a person under the age of 18 years or to a person who is financially dependent due to mental or physical incapacity, shall be paid to the guardian of the property of that person. (2) Notwithstanding sections 13 and 22, where a person who is entitled to a benefit under one of those sections was primarily financially dependent on the member by reason of mental or physical incapacity, the benefit shall continue to be paid until that person is capable of providing for his or her own financial support. (3) For the purposes of this section and section 27, the Minister of Finance shall make the determination as to the financial dependence of a person due to that persons physical or mental incapacity. 2005 cM-6.1 s28 Back to Top Marriage breakdown 29. (1) Where (a) a court has made an order for the division of matrimonial property under the Family Law Act or a similar order has been made by a court outside the province; or (b) a member has entered into a separation agreement within the meaning of the Family Law Act to divide matrimonial property, a right under this Act shall be divided in accordance with the court order or separation agreement and Part VI of the Pension Benefits Act, 1997 applies, with the necessary changes. (2) Calculations under this Act respecting maximum contributions and years of service shall be done as if there had been no division under this section. 2005 cM-6.1 s29 Back to Top Purchase of service 30. (1) Where a member who was elected before November 30, 2015 was formerly covered under a pension plan established under (a) the Memorial University Pensions Act ; (b) the Public Service Pensions Act, 1991 ; (c) the Teachers Pensions Act ; (d) the Uniformed Services Pensions Act, 1991 ; or (e) an Act replaced by an Act referred to in paragraphs (a) to (d), and has no remaining entitlement to benefits under that pension plan, the member may, upon his or her election and on payment of an amount that may be prescribed by the Minister of Finance by directive, be credited with pensionable service for all or a portion of the period of service formerly covered by that pension plan. (2) Where a member was a member of a plan listed in subsection (1) and contributions were payable under that plan but were not paid due to administrative error, the member, upon payment of contributions that the Minister of Finance may prescribe by directive, may be credited with pensionable service under this Act for all or a portion of the period of service that is pensionable service under that plan. (3) Service purchased under subsection (2) may also include a period under a plan listed in subsection (1) that was not a period of membership provided that the period was a waiting period for membership in that plan. (4) Notwithstanding subsections (1), (2) and (3), under this section periods of pensionable service may be credited only if that service qualifies as a period of pensionable service under the Income Tax Act ( Canada ). 2005 cM-6.1 s30 ; 2017 c25 s4 Back to Top Purchase of prior service 31. (1) Where a former member received a payment or transfer on termination and later becomes a member, that member may be credited with the prior pensionable service that he or she may elect to purchase in accordance with the terms and conditions that may be prescribed by the Minister of Finance by directive. (2) Where a former member who ceased to be a member and had not received a payment or transfer on termination and later becomes a member, that member shall be credited with all pensionable service that accrued immediately before the member's termination. (3) Notwithstanding subsection (1), a member may only be credited under that subsection with service purchased with money transferred from a registered retirement savings plan, deferred profit sharing plan or a registered pension plan. 2005 cM-6.1 s31 Back to Top Reciprocal transfers 32. (1) The Minister of Finance may, with the approval of the Lieutenant-Governor in Council, enter into a reciprocal agreement with a government or other entity to permit pensionable service in other pension plans to be credited under this Act where the government or other entity agrees to credit pensionable service under this Act in the pension plan maintained by that government or entity. (2) A member, who was employed with a government or entity that has entered into a reciprocal agreement under subsection (1), may be credited with pensionable service under this Act in respect of the whole or part of his or her pensionable service credited to him or her under the pension plan maintained by that government or entity. (3) This section does not apply in respect of a member who was elected for the first time on or after November 30, 2015. 2005 cM-6.1 s32 ; 2017 c25 s5 Back to Top Payment of contributions 33. All contributions that are required to be paid under sections 30 and 31 may be paid in equal instalments over the shorter of (a) the period of pensionable service being purchased; or (b) the period from the date the member elects to purchase service to a date immediately preceding the date on which the member retires, together with the interest prescribed by the Minister of Finance by directive. 2005 cM-6.1 s33 Back to Top Directive of minister 34. The Minister of Finance may issue directives to give effect to the purpose of this Act. 2005 cM-6.1 s34 Back to Top Existing plan protected 35. All benefits acquired under the Members of the House of Assembly Pensions Act before the commencement of this Act are protected under this Act. 2005 cM-6.1 s35 Back to Top Consequential amendments 36. (1) The House of Assembly Act is amended by adding the following immediately after section 54: Back to Top Retirement 54.1 When a member is retired under section 14 or 23 of the Members of the House of Assembly Retiring Allowances Act , his or her seat in the House of Assembly becomes vacant on the date that the allowance under one of the sections becomes payable. (2) Paragraph 3(c) of the Pensions Funding Act is repealed and the following substituted: (c) the Members of the House of Assembly Retiring Allowances Act and an Act or Acts replaced by that Act; and 2005 cM-6.1 s36 Back to Top RSNL1990 cM-6 Rep. 37. The Members of the House of Assembly Pensions Act is repealed. 2005 cM-6.1 s37 Back to Top Commencement 38. Sections 9, 10 and 11 shall be considered to have come into force on January 1, 1992 . 2005 cM-6.1 s38