[Return to: 2007 (Spring) First Reading Bills Home Page
(3rd session, 38th Parliament)]


BILL
NUMBER
TITLE DATE
INTRODUCED
37 LEGISLATIVE ASSEMBLY (MEMBERS' REMUNERATION AND PENSIONS) STATUTES AMENDMENT ACT, 2007
(First Reading)
May 16/07

 
Explanatory Notes

 
Legislative Assembly Allowances and Pension Act

SECTION 1: [Legislative Assembly Allowances and Pension Act, title] changes the title of the Act to the Members' Remuneration and Pensions Act.

SECTION 2: [Legislative Assembly Allowances and Pension Act, section 1] clarifies a reference, adds definitions of "basic compensation", "consumer price index", "recognized political party" and "salaried position" and states that certain definitions in the section do not apply to Part 1 and the new Part 3.

SECTION 3: [Legislative Assembly Allowances and Pension Act, Part 1 heading] changes the heading to Part 1.

SECTION 4: [Legislative Assembly Allowances and Pension Act, section 2]

  • provides a dollar figure as the basic compensation to be paid annually to members of the Legislative Assembly as of April 1, 2007;
  • provides for annual adjustment of this basic compensation by the percentage increase of the Consumer Price Index;
  • consequentially provides for continuation of current basic compensation payable in respect of those members of the Legislative Assembly who give notice of choosing this option under the new section 4.1, as enacted by this Bill.

SECTION 5: [Legislative Assembly Allowances and Pension Act, section 4]

  • provides a mechanism for determining annual salaries to be paid to persons holding listed positions in the government, the Legislative Assembly and party caucuses as of April 1, 2007;
  • consequentially provides for continuation of current salaries payable in respect of those members of the Legislative Assembly who give notice of choosing this option under the new section 4.1, as enacted by this Bill.

SECTION 6: [Legislative Assembly Allowances and Pension Act, section 4.1] enables current members of the Legislative Assembly to opt out of basic compensation and salary increases and participation in the new pension plan proposed by this Bill and to continue their remuneration and RRSP contributions under the existing legislative framework and practices.

SECTION 7: [Legislative Assembly Allowances and Pension Act, section 8] consolidates an existing provision and adds reference to the deputy chair of a select standing, select or special committee.

SECTION 8: [Legislative Assembly Allowances and Pension Act, section 9] adds reference to the Assistant Deputy Speaker in the provisions respecting commencement and termination of certain positions.

SECTION 9: [Legislative Assembly Allowances and Pension Act, section 11] updates compensation and salary references.

SECTION 10: [Legislative Assembly Allowances and Pension Act, section 12] updates compensation references.

SECTION 11: [Legislative Assembly Allowances and Pension Act, section 13] repeals the appropriation provision for Part 1, which is replaced by an appropriation provision for the Act that is added to Part 4.

SECTION 12: [Legislative Assembly Allowances and Pension Act, Part 2 heading] changes the heading to Part 2.

SECTION 13: [Legislative Assembly Allowances and Pension Act, section 31] repeals the portion of section 31 that is a statutory appropriation and modifies subsection (2) as a consequence of the wording of the new appropriation section which is added to Part 4.

SECTION 14: [Legislative Assembly Allowances and Pension Act, Parts 3 and 4]

  • establishes, effective April 1, 2007, the Public Service Pension Plan as the new pension plan that applies to
    • each member of the Legislative Assembly, unless the member opts out under the new section 4.1, and
    • a former member of the Legislative Assembly who was a member at any time from June 19, 1996, if the former member purchases past service;
  • requires that the public service board, as defined, administer the Part 3 pension plan;
  • sets out the manner of determining the amount that must be paid by both the member (or former member) and the government to purchase past service of the member (or former member);
  • establishes that the new pension plan must be based on the principles in the Schedule to the Act;
  • requires the publication of the following information on a publicly accessible website:
    • the total cost incurred by the government during a calendar year for purchasing past service under section 39;
    • the government contribution rate under section 38 of the Act, as determined by the public service board;
  • adds a new Part 4, which includes an appropriation provision for the Act and a provision stating that section 5 of the Offence Act does not apply to the Act.

SECTION 15: [Legislative Assembly Allowances and Pension Act, Schedule] adds a Schedule that does the following:

  • states that the Part 3 pension plan is a defined benefit pension plan;
  • establishes the formula for calculating the amount of a plan participant's annual pension;
  • sets the maximum pension that a plan participant may receive;
  • requires that a plan participant have 6 years of service before becoming entitled to a pension;
  • establishes that a plan participant is entitled to an unreduced pension at age 65, but may receive, at any time between ages 60 and 65, a reduced pension calculated in accordance with the formula set out in the Schedule;
  • sets out the normal forms of pension;
  • establishes other principles of the Part 3 pension plan.

 
Legislative Assembly Management Committee Act

SECTION 16: [Legislative Assembly Management Committee Act, section 3]

  • removes the setting of basic compensation for members of the Legislative Assembly from the jurisdiction of the Legislative Assembly Management Committee, consequential to the new section 2 of the retitled Members' Remuneration and Pensions Act, as enacted by this Bill;
  • ends the Legislative Assembly Management Committee's responsibility to determine salaries for members holding various positions, as these salaries will now be set under the Members' Remuneration and Pensions Act;
  • continues the jurisdiction of the Legislative Assembly Management Committee over the existing group RRSP plan for members of the Legislative Assembly;
  • provides specific authority for payments to members of the Legislative Assembly for their expenses, including expenses for residence in the Capital Regional District and for travel and associated expenses for accompanying persons;
  • provides specific authority for a severance allowance to former members and for the Legislative Assembly Management Committee to specify when and how certain payments and contributions are to be paid by the government.

 
Balanced Budget and Ministerial Accountability Act

SECTION 17: [Balanced Budget and Ministerial Accountability Act, section 3] corrects a cross-reference as a result of changes to the Legislative Assembly Allowances and Pension Act made by this Bill.

 
Constitution Act

SECTION 18: [Constitution Act, section 26] corrects cross-references as a result of changes to provisions of the 2 Legislative Assembly Acts amended by this Bill and includes reference to authorized payments under the Legislative Assembly Management Committee Act.

 
Financial Administration Act

SECTION 19: [Financial Administration Act, section 1] includes reference to the new pension fund for members of the Legislative Assembly, as proposed by this Bill.

 
Public Service Benefit Plan Act

SECTION 20: [Public Service Benefit Plan Act, section 11] corrects a cross-reference as a result of changes to the Legislative Assembly Allowances and Pension Act made by this Bill.

SECTION 21: [Transition -- appropriation] authorizes expenditures resulting from this Bill which may be in excess of any available voted appropriation and provides that such expenditures are not to be taken into account under section 5 (1) of the Balanced Budget and Ministerial Accountability Act.

SECTION 22: [Transition -- RRSP contributions]

  • provides that government contributions to the members' voluntary group RRSP are not permitted or required on or after June 1, 2007 for persons other than members who opt out of basic compensation and salary increases and participation in the new pension plan proposed by this Bill;
  • requires repayment to the government of specified overpayments by specified members.

SECTION 23: [Transition -- pension contributions] during the period starting on April 1, 2007 and ending on July 1, 2007, permits the government to make deductions from a member's pay and to make the government's contributions under section 38 of the Members' Remuneration and Pensions Act after the date the member is paid his or her earnings, as defined.



BILL 37 – 2007
LEGISLATIVE ASSEMBLY (MEMBERS' REMUNERATION AND PENSIONS) STATUTES AMENDMENT ACT, 2007

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

 
Legislative Assembly Allowances and Pension Act

1 The title of the Legislative Assembly Allowances and Pension Act, R.S.B.C. 1996, c. 257, is repealed and the following substituted:

MEMBERS' REMUNERATION AND PENSIONS ACT .

2 Section 1 is amended

(a) by renumbering the section as section 1 (1),

(b) in subsection (1) by striking out "In this Act:" and substituting "Subject to subsection (2), in this Act:",

(c) in subsection (1) by adding the following definitions:

"basic compensation" means the amount of basic compensation payable to a member for a year, as determined under and in accordance with section 2;

"consumer price index" means the Consumer Price Index for British Columbia, as published by Statistics Canada under the authority of the Statistics Act (Canada);

"recognized political party" has the same meaning as in the Constitution Act;

"salaried position" means a position referred to in column 1 of the Table following section 4; ,

(d) in subsection (1), in paragraph (c) of the definition of "legislative allowance", by striking out "section 3" and substituting "section 3 (1) (d.1)" and by adding ", before its amendment by the Legislative Assembly (Members' Remuneration and Pensions) Statutes Amendment Act, 2007," after "Legislative Assembly Management Committee Act", and

(e) by adding the following subsection:

(2) The following definitions set out in subsection (1) do not apply in Parts 1 and 3 and the Schedule:

(a) "service";

(b) both definitions of "years of service".

3 The heading to Part 1 is repealed and the following substituted:

Part 1 -- Compensation and Salaries .

4 The following section is added to Part 1:

Basic compensation for members

2 (1) Subject to this section and section 10, effective April 1, 2007, the basic compensation for each member is $98 000 per year.

(2) The basic compensation referred to in subsection (1) must be adjusted every year on April 1, commencing April 1, 2008, by the percentage increase of the consumer price index, if any, for the 12-month period ending on December 31 of the previous year.

(3) If a person is a member for only a portion of a year, the basic compensation payable to that person for the year equals the dollar amount set by this section multiplied by the number of days of service as a member in that year and divided by 365.

(4) The amount of basic compensation payable to a member for the year ending March 31, 2008 and for each fiscal year subsequent must be posted on a publicly accessible website maintained by or on behalf of the Legislative Assembly.

(5) Despite subsection (1) but subject to section 10, if a member to whom section 4.1 applies gives the notice to the Speaker as described in that section, the member's basic compensation is the amount payable as basic compensation pursuant to section 3 (1) (d.1) of the Legislative Assembly Management Committee Act, as it read immediately before April 1, 2007, and, for certainty,

(a) subsection (2) of this section does not apply in respect of that member's basic compensation, and

(b) subsections (3) and (4) of this section apply in respect of that member's basic compensation.

5 Section 4 is repealed and the following substituted:

Annual salaries for certain positions

4 (1) Subject to this section, effective April 1, 2007, each person who holds a salaried position is entitled to and must be paid an annual salary the amount of which is to be determined for the year as the amount of basic compensation for that year multiplied by the value set out opposite that position in column 2 of the Table following this section.

(2) If the person holding the salaried position is a member, the salary payable to the person under this section is in addition to the basic compensation payable to the person as a member.

(3) If the person holds more than one salaried position at the same time, the person is only entitled to be paid for the position with the highest annual salary.

(4) If the person holds the salaried position for only a portion of a year, the salary payable to that person for the year equals the dollar amount set by this section multiplied by the number of days of service in that position in that year and divided by 365.

(5) The amount of annual salary payable in respect of a salaried position for the year ending March 31, 2008 and for each fiscal year subsequent must be posted on a publicly accessible website maintained by or on behalf of the Legislative Assembly.

(6) Despite subsection (1), if a member to whom section 4.1 applies gives the notice to the Speaker as described in that section and the member holds a salaried position, the member is not entitled to the salary for that position determined under subsection (1) of this section but must continue to be paid the salary payable for that position, if any, as determined pursuant to this section and section 3 (1.1) of the Legislative Assembly Management Committee Act, as they read immediately before April 1, 2007, and, for certainty, subsections (3) to (5) of this section apply in respect of that member's salary.

Table

Item Column 1
Position
Column 2
Value
1 Premier 0.90
2 A member of the Executive Council with portfolio 0.50
3 A member of the Executive Council without portfolio 0.35
4 A parliamentary secretary 0.15
5 The Speaker 0.50
6 The Deputy Speaker 0.35
7 The Assistant Deputy Speaker 0.35
8 The Deputy Chair, Committee of the Whole 0.20
9 The Leader of the Official Opposition 0.50
10 The Leader of a recognized political party other than the government or the Official Opposition 0.25
11 The Government Whip 0.20
12 The Deputy Government Whip 0.15
13 The Official Opposition House Leader 0.20
14 The House Leader of a recognized political party other than the government or the Official Opposition 0.10
15 The Official Opposition Whip 0.20
16 The Official Opposition Deputy Whip 0.15
17 The Party Whip of a recognized political party other than the government or the Official Opposition 0.10
18 The Caucus Chair of the Government 0.20
19 The Caucus Chair of the Official Opposition 0.20
20 The Caucus Chair of a recognized political party other than the government or the Official Opposition 0.10
21 The Chair of a select standing, select or special committee 0.15
22 The Deputy Chair of a select standing, select or special committee 0.10

6 The following section is added:

Option for members

4.1 (1) This section applies to every person who is a member on the day that the Legislative Assembly (Members' Remuneration and Pensions) Statutes Amendment Act, 2007 receives First Reading in the Legislative Assembly.

(2) On or before the 7th day that follows the date on which the Legislative Assembly (Members' Remuneration and Pensions) Statutes Amendment Act, 2007 receives Royal Assent, the member may notify the Speaker in writing that the member chooses both

(a) to continue to have his or her basic compensation and annual salary, if any, determined in accordance with the applicable provisions of this Act and the Legislative Assembly Management Committee Act as they read immediately before April 1, 2007, and

(b) to not participate in the pension plan established by Part 3.

(3) The notice must be given in the manner authorized or approved by the Speaker.

(4) A notice given in accordance with subsections (2) and (3) is permanent and irrevocable.

(5) A list of the names of the members who have given the notice described in this section must be posted on a publicly accessible website maintained by or on behalf of the Legislative Assembly.

(6) The terms of the voluntary group registered retirement savings plan established by the Legislative Assembly Management Committee under section 3 (1) (d.3) of the Legislative Assembly Management Committee Act, as it read immediately before April 1, 2007, continue to apply in respect of any member who gives the notice described in this section, including, without limitation, any terms requiring government contributions to be made under that plan in respect of the member's service.

7 Section 8 is amended

(a) in subsection (1) by striking out everything after "Constitution Act" and substituting "must be paid reasonable out of pocket, travelling and other expenses incurred by the member in the discharge of duties.", and

(b) in subsection (2) by striking out "The chair" and substituting "The chair and deputy chair".

8 Section 9 (1) is amended

(a) in paragraph (c) by striking out "a recognized political party and the Deputy Speaker" and substituting "a recognized political party, the Deputy Speaker and the Assistant Deputy Speaker", and

(b) in paragraph (d) by striking out "Speaker or Deputy Speaker" and substituting "Speaker, Deputy Speaker or Assistant Deputy Speaker".

9 Section 11 is amended by striking out "direct that a partial or full annual indemnity, expense allowance and salary be paid" and substituting "direct that partial or full basic compensation and salary be paid".

10 Section 12 (2) (c) and (d) is amended by striking out "annual indemnity, expense allowance" and substituting "basic compensation".

11 Section 13 is repealed.

12 The heading to Part 2 is repealed and the following substituted:

Part 2 -- Pension for Service Before June 19, 1996 .

13 Section 31 is amended

(a) by repealing subsection (1), and

(b) in subsection (2) by striking out "from the consolidated revenue fund." and substituting "by the government."

14 The following Parts are added:

Part 3 -- 2007 Pension Plan

Interpretation

35 (1) In this Part:

"earnings" means both of the following types of compensation:

(a) the basic compensation or annual indemnity paid under this Act or the Legislative Assembly Management Committee Act to a person who is or was a member at any time on or after June 19, 1996;

(b) the salary paid under this Act or the Legislative Assembly Management Committee Act to a person on or after June 19, 1996;

"Part 3 pension plan" means the Public Service Pension Plan as that plan applies to a person in the person's capacity as a plan participant;

"plan participant" means the following persons:

(a) a person who is or was a member at any time on or after June 19, 1996;

(b) a person who holds or held a position on the Executive Council at any time on or after June 19, 1996,

but does not include a person who gives the notice to the Speaker as described in section 4.1;

"plan rules" means the rules of the Public Service Pension Plan as those rules apply to a person in the person's capacity as a plan participant;

"public service board" means the public service board as defined in section 1 (1) of the Public Sector Pension Plans Act;

"Schedule" means the Schedule to this Act;

"service" means service as a plan participant.

(2) A reference in this Part to "this Part" or "Part 3", other than a reference to "Part 3 pension plan", must be read as including a reference to the Schedule.

Application of the Part 3 pension plan

36 (1) Subject to this Part, the Part 3 pension plan applies to the government and all plan participants effective April 1, 2007.

(2) The terms of the Part 3 pension plan must be based on the principles set out in the Schedule.

(3) The plan rules are subject to this Part and apply with the necessary changes so far as they are applicable.

(4) If there is a conflict between this Part and the plan rules, this Part prevails.

(5) A decision of the plan administrative agent respecting the application of this Part and the plan rules may, by written notice, be appealed to the public service board in accordance with the practice and procedure for appeals to the public service board.

(6) In subsection (5), "plan administrative agent" means the plan administrative agent as defined in Schedule C to the Public Sector Pension Plans Act.

Administration of the Part 3 pension plan

37 (1) The public service board must administer the Part 3 pension plan.

(2) The public service board may enter into agreements providing for the administration of the Part 3 pension plan, including actuarial, administrative and other professional services.

(3) The public service board must consult with the Legislative Assembly Management Committee before modifying the Part 3 pension plan, if the modification relates to or might affect the plan participants.

Contributions by plan participants and government

38 (1) The government must deduct, from each payment of earnings made to a plan participant on or after April 1, 2007, 11% of those earnings and pay the amount to the Public Service Pension Fund as a contribution from the plan participant.

(2) Each time the government deducts and pays a plan participant's contribution in accordance with subsection (1), the government must pay to the Public Service Pension Fund, as a contribution from the government, the percentage of earnings paid to the plan participant that the public service board determines is required to fund the pension benefits provided under this Act.

Purchase of service before April 1, 2007

39 (1) A plan participant may apply to the public service board

(a) to have service before April 1, 2007 recognized as service under the Part 3 pension plan in accordance with this section and the plan rules, and

(b) to purchase that service in accordance with this section and the plan rules.

(2) The public service board must determine the cost of the service that a plan participant applies to purchase under subsection (1) on the basis of the public service board's determination of the full actuarial cost of the pension benefit that results from the purchase of that service.

(3) Subject to subsection (6), for a plan participant to purchase his or her service that occurred at any time during the period that began on May 17, 2005 and ends at the end of the day on March 31, 2007, the plan participant must pay to the Public Service Pension Fund 50% of the cost, as determined under subsection (2), of the pension benefit that results from the purchase of that service.

(4) Subject to subsection (6), for a plan participant to purchase his or her service that occurred at any time during the period that began on June 19, 1996 and ended at the end of the day on May 16, 2005, the plan participant must pay to the Public Service Pension Fund 11% of the sum of the following amounts:

(a) the earnings the plan participant received for the period of service to be purchased;

(b) the amount of the government contributions to the voluntary group registered retirement savings plan described in section 4.1 (6) in respect of the plan participant for the period of service to be purchased.

(5) If a plan participant purchases service under subsection (3) or (4), the government must pay the amount that remains unpaid after deducting the amount paid by the plan participant under subsection (3) or (4), as the case may be, from the amount determined under subsection (2).

(6) A plan participant may not purchase his or her service under this section unless the plan participant pays the amount required before July 1, 2011.

Information

40 (1) The total cost incurred during a calendar year by the government for the purchase of service under section 39 (5) must be posted during the following calendar year on a publicly accessible website maintained by or on behalf of the Legislative Assembly.

(2) The government contribution rate under section 38, as determined by the public service board from time to time, must be posted on a publicly accessible website maintained by or on behalf of the Legislative Assembly as soon as possible after the rate is determined or modified by the public service board.

Payment of fees, expenses, and disbursements

41 The government must pay to the public service board

(a) fees, expenses and disbursements that are reasonably necessary for the establishment, administration and management of the Part 3 pension plan, and

(b) fees, expenses and disbursements that relate to agreements established under section 37 (2).

Application of Pension Benefits Standards Act

42 Despite section 1 (8) of the Pension Benefits Standards Act and section 3 of the Public Sector Pension Plans Act, sections 26 to 29 of the Pension Benefits Standards Act do not apply to the Part 3 pension plan.

Part 4 -- General

Appropriation

43 If money is required under this Act to be provided or paid by the government, that money must be provided or paid from money appropriated for that purpose by the Legislative Assembly or, if an adequate appropriation is not available for that purpose, from the consolidated revenue fund.

Offence Act

44 Section 5 of the Offence Act does not apply to this Act.

15 The following Schedule is added:

Schedule

Principles of the Part 3 Pension Plan

(Section 36 (2))

1 In this Schedule:

"pensionable earnings" means earnings paid for periods that qualify as pensionable service;

"pensionable service" means service for which contributions have been made under section 38 or that has been purchased under section 39.

2 The Part 3 pension plan must be a defined benefit pension plan.

3 The formula for calculating the amount of a plan participant's pension under the Part 3 pension plan must be based on the following:

P = 3.5% x E x S

where

P is the amount of the annual pension of a plan participant,

E is the highest 3-year average annual pensionable earnings of the plan participant, and

S is the number of years plus any portion of a year of pensionable service of the plan participant.

4 The maximum pension that a plan participant may receive under the Part 3 pension plan is 70% of the highest 3-year average pensionable earnings of the plan participant.

5 A person is not entitled to a pension under the Part 3 pension plan unless the person has at least 6 years of service.

6 A plan participant who meets the terms of the Part 3 pension plan is entitled to an unreduced pension at age 65.

7 A plan participant who is at least 60 years of age and is otherwise entitled to receive a pension under the Part 3 pension plan may receive a reduced pension in an amount that is calculated by subtracting, from the unreduced amount, 0.25% of that amount for each month by which the plan participant's age is less than 65 years.

8 (1) The normal form of pension for a plan participant with a spouse at retirement is "joint life and last survivor", payable for

(a) the life of the plan participant, and

(b) the life of the surviving spouse,

but the pension payable to the surviving spouse is reduced, on the death of the plan participant, to 60% of the pension to which the plan participant was entitled.

(2) The normal form of pension for a plan participant who does not have a spouse at retirement is "single life guaranteed", payable for the longer of

(a) the life of the plan participant, and

(b) a term of 10 years.

(3) Despite subsections (1) and (2), a plan participant who is entitled to a pension payable in accordance with subsection (1) or (2) may elect to be paid his or her pension in another form, but the amount of the pension must be adjusted to the actuarial equivalent of the pension that is otherwise payable in accordance with subsection (1) or (2).

9 The government must pay the plan participant's and the government's contributions under section 38 to the pension plan for any period that disability benefits are payable to the plan participant by the government.

 
Legislative Assembly Management Committee Act

16 Section 3 of the Legislative Assembly Management Committee Act, R.S.B.C. 1996, c. 258, is amended

(a) in subsection (1) (d.1) by striking out "basic compensation and",

(b) by repealing subsection (1) (d.2), (d.3) and (e) and substituting the following:

(d.3) the voluntary group registered retirement savings plan that was established by the committee for members of the Legislative Assembly,

(e) payments to members of the Legislative Assembly to defray expenses in the performance of their duties, including

(i) expenses for residence in the Capital Regional District during the legislative session and for any additional periods specified by the committee,

(ii) protocol expenses,

(iii) travel and associated expenses of the members and persons accompanying the members, and

(iv) expenses for service on legislative committees when the Legislative Assembly is not sitting, ,

(c) in subsection (1) by striking out "and" at the end of paragraph (f) and by adding the following paragraphs:

(f.1) a severance allowance for persons when they cease to be members of the Legislative Assembly, and for this purpose may establish a severance plan that sets out the circumstances in which such persons will be eligible for the allowance, the amounts of the allowance payments, and any other matter related to severance,

(f.2) when and how

(i) payments referred to in paragraphs (d.1), (e), (f) and (f.1) are required to be provided by the government, and

(ii) amounts required to be contributed by the government under the terms of the plan described in paragraph (d.3) are to be paid, and , and

(d) by repealing subsection (1.1).

Consequential Amendments

 
Balanced Budget and Ministerial Accountability Act

17 Section 3 (1) of the Balanced Budget and Ministerial Accountability Act, S.B.C. 2001, c. 28, is amended by striking out "section 4 (6) to (8) of the Legislative Assembly Allowances and Pension Act" and substituting "section 4 of the Members' Remuneration and Pensions Act".

 
Constitution Act

18 Section 26 (1) (a) of the Constitution Act, R.S.B.C. 1996, c. 66, is repealed and the following substituted:

(a) if the money accepted by a member of the Legislative Assembly is

(i) basic compensation, as defined in the Members' Remuneration and Pensions Act, or any salary payable under section 4 (1) or (6) of that Act, or

(ii) the Capital City allowance under section 3 (1) (d.1) of the Legislative Assembly Management Committee Act or any other payment that is authorized by the Legislative Assembly Management Committee and required to be provided or paid by the government pursuant to section 3 of that Act; .

 
Financial Administration Act

19 Section 1 of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended in paragraph (a) of the definition of "pension fund" by striking out "under the Legislative Assembly Allowances and Pension Act" and substituting "under Part 2 or 3 of the Members' Remuneration and Pensions Act".

 
Public Service Benefit Plan Act

20 Section 11 (1) (c) of the Public Service Benefit Plan Act, R.S.B.C. 1996, c. 386, is amended by striking out "Legislative Assembly Allowances and Pension Act" and substituting "Members' Remuneration and Pensions Act".

Transitional Provisions

Transition -- appropriation

21 (1) If, for the fiscal year ending March 31, 2008,

(a) money is required to be provided by or paid on behalf of the government as a result of this Act, and

(b) the amount to be provided or paid is in excess of any available voted appropriation for that purpose,

the excess must be provided or paid from the consolidated revenue fund.

(2) Amounts of money required to be provided or paid under subsection (1) are not to be taken into account for the purposes of calculating the actual amounts of operating expenses under section 5 (1) of the Balanced Budget and Ministerial Accountability Act.

Transition -- RRSP contributions

22 (1) In this section:

"overpayment" means any government contribution to the voluntary group registered retirement savings plan described in section 4.1 (6) of the Members' Remuneration and Pensions Act that is made in relation to any service during the period April 1, 2007 to July 1, 2007, inclusive, on behalf of a relevant member;

"relevant member" means a member described in section 4.1 (1) of the Members' Remuneration and Pensions Act who does not give the notice described in that section on or before the 7th day that follows the date on which this Act receives Royal Assent.

(2) Despite any provision of the Members' Remuneration and Pensions Act or the Legislative Assembly Management Committee Act, government contributions to the voluntary group registered retirement savings plan described in section 4.1 (6) of the Members' Remuneration and Pensions Act are not permitted or required on or after June 1, 2007 in respect of any person other than a member who gives the notice to the Speaker as described in section 4.1 of the Members' Remuneration and Pensions Act.

(3) A relevant member must, as soon as reasonably practicable but not later than August 31, 2007, pay to the government an amount equal to the sum of all overpayments made in relation to that member.

(4) The amount referred to in subsection (3) is a debt due to and recoverable by the government from the relevant member.

Transition -- pension contributions

23 Despite section 38 of the Members' Remuneration and Pensions Act, for the period starting on April 1, 2007 and ending on July 1, 2007, the deductions and payments required by section 38 need not be made at the times required by that section, so long as the deductions and payments are made as soon as reasonably practicable after the times required by that section and in any event no later than August 31, 2007.

Commencement

24 This Act comes into force on April 1, 2007.

 
Explanatory Notes

 
Legislative Assembly Allowances and Pension Act

SECTION 1: [Legislative Assembly Allowances and Pension Act, title] changes the title of the Act to the Members' Remuneration and Pensions Act.

SECTION 2: [Legislative Assembly Allowances and Pension Act, section 1] clarifies a reference, adds definitions of "basic compensation", "consumer price index", "recognized political party" and "salaried position" and states that certain definitions in the section do not apply to Part 1 and the new Part 3.

SECTION 3: [Legislative Assembly Allowances and Pension Act, Part 1 heading] changes the heading to Part 1.

SECTION 4: [Legislative Assembly Allowances and Pension Act, section 2]

  • provides a dollar figure as the basic compensation to be paid annually to members of the Legislative Assembly as of April 1, 2007;
  • provides for annual adjustment of this basic compensation by the percentage increase of the Consumer Price Index;
  • consequentially provides for continuation of current basic compensation payable in respect of those members of the Legislative Assembly who give notice of choosing this option under the new section 4.1, as enacted by this Bill.

SECTION 5: [Legislative Assembly Allowances and Pension Act, section 4]

  • provides a mechanism for determining annual salaries to be paid to persons holding listed positions in the government, the Legislative Assembly and party caucuses as of April 1, 2007;
  • consequentially provides for continuation of current salaries payable in respect of those members of the Legislative Assembly who give notice of choosing this option under the new section 4.1, as enacted by this Bill.

SECTION 6: [Legislative Assembly Allowances and Pension Act, section 4.1] enables current members of the Legislative Assembly to opt out of basic compensation and salary increases and participation in the new pension plan proposed by this Bill and to continue their remuneration and RRSP contributions under the existing legislative framework and practices.

SECTION 7: [Legislative Assembly Allowances and Pension Act, section 8] consolidates an existing provision and adds reference to the deputy chair of a select standing, select or special committee.

SECTION 8: [Legislative Assembly Allowances and Pension Act, section 9] adds reference to the Assistant Deputy Speaker in the provisions respecting commencement and termination of certain positions.

SECTION 9: [Legislative Assembly Allowances and Pension Act, section 11] updates compensation and salary references.

SECTION 10: [Legislative Assembly Allowances and Pension Act, section 12] updates compensation references.

SECTION 11: [Legislative Assembly Allowances and Pension Act, section 13] repeals the appropriation provision for Part 1, which is replaced by an appropriation provision for the Act that is added to Part 4.

SECTION 12: [Legislative Assembly Allowances and Pension Act, Part 2 heading] changes the heading to Part 2.

SECTION 13: [Legislative Assembly Allowances and Pension Act, section 31] repeals the portion of section 31 that is a statutory appropriation and modifies subsection (2) as a consequence of the wording of the new appropriation section which is added to Part 4.

SECTION 14: [Legislative Assembly Allowances and Pension Act, Parts 3 and 4]

  • establishes, effective April 1, 2007, the Public Service Pension Plan as the new pension plan that applies to
    • each member of the Legislative Assembly, unless the member opts out under the new section 4.1, and
    • a former member of the Legislative Assembly who was a member at any time from June 19, 1996, if the former member purchases past service;
  • requires that the public service board, as defined, administer the Part 3 pension plan;
  • sets out the manner of determining the amount that must be paid by both the member (or former member) and the government to purchase past service of the member (or former member);
  • establishes that the new pension plan must be based on the principles in the Schedule to the Act;
  • requires the publication of the following information on a publicly accessible website:
    • the total cost incurred by the government during a calendar year for purchasing past service under section 39;
    • the government contribution rate under section 38 of the Act, as determined by the public service board;
  • adds a new Part 4, which includes an appropriation provision for the Act and a provision stating that section 5 of the Offence Act does not apply to the Act.

SECTION 15: [Legislative Assembly Allowances and Pension Act, Schedule] adds a Schedule that does the following:

  • states that the Part 3 pension plan is a defined benefit pension plan;
  • establishes the formula for calculating the amount of a plan participant's annual pension;
  • sets the maximum pension that a plan participant may receive;
  • requires that a plan participant have 6 years of service before becoming entitled to a pension;
  • establishes that a plan participant is entitled to an unreduced pension at age 65, but may receive, at any time between ages 60 and 65, a reduced pension calculated in accordance with the formula set out in the Schedule;
  • sets out the normal forms of pension;
  • establishes other principles of the Part 3 pension plan.

 
Legislative Assembly Management Committee Act

SECTION 16: [Legislative Assembly Management Committee Act, section 3]

  • removes the setting of basic compensation for members of the Legislative Assembly from the jurisdiction of the Legislative Assembly Management Committee, consequential to the new section 2 of the retitled Members' Remuneration and Pensions Act, as enacted by this Bill;
  • ends the Legislative Assembly Management Committee's responsibility to determine salaries for members holding various positions, as these salaries will now be set under the Members' Remuneration and Pensions Act;
  • continues the jurisdiction of the Legislative Assembly Management Committee over the existing group RRSP plan for members of the Legislative Assembly;
  • provides specific authority for payments to members of the Legislative Assembly for their expenses, including expenses for residence in the Capital Regional District and for travel and associated expenses for accompanying persons;
  • provides specific authority for a severance allowance to former members and for the Legislative Assembly Management Committee to specify when and how certain payments and contributions are to be paid by the government.

 
Balanced Budget and Ministerial Accountability Act

SECTION 17: [Balanced Budget and Ministerial Accountability Act, section 3] corrects a cross-reference as a result of changes to the Legislative Assembly Allowances and Pension Act made by this Bill.

 
Constitution Act

SECTION 18: [Constitution Act, section 26] corrects cross-references as a result of changes to provisions of the 2 Legislative Assembly Acts amended by this Bill and includes reference to authorized payments under the Legislative Assembly Management Committee Act.

 
Financial Administration Act

SECTION 19: [Financial Administration Act, section 1] includes reference to the new pension fund for members of the Legislative Assembly, as proposed by this Bill.

 
Public Service Benefit Plan Act

SECTION 20: [Public Service Benefit Plan Act, section 11] corrects a cross-reference as a result of changes to the Legislative Assembly Allowances and Pension Act made by this Bill.

SECTION 21: [Transition -- appropriation] authorizes expenditures resulting from this Bill which may be in excess of any available voted appropriation and provides that such expenditures are not to be taken into account under section 5 (1) of the Balanced Budget and Ministerial Accountability Act.

SECTION 22: [Transition -- RRSP contributions]

  • provides that government contributions to the members' voluntary group RRSP are not permitted or required on or after June 1, 2007 for persons other than members who opt out of basic compensation and salary increases and participation in the new pension plan proposed by this Bill;
  • requires repayment to the government of specified overpayments by specified members.

SECTION 23: [Transition -- pension contributions] during the period starting on April 1, 2007 and ending on July 1, 2007, permits the government to make deductions from a member's pay and to make the government's contributions under section 38 of the Members' Remuneration and Pensions Act after the date the member is paid his or her earnings, as defined.

[Return to: 2007 (Spring) First Reading Bills Home Page
(3rd session, 38th Parliament)]