BILL 49 – 2003
PENSION STATUTES AMENDMENT ACT, 2003

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

Election Act

1 Section 7 of the Election Act, R.S.B.C. 1996, c. 106, is amended

(a) in subsection (2) by striking out "subsections (3) and (4),"and substituting "subsection (3),", and

(b) by repealing subsection (4).

Freedom of Information and Protection of Privacy Act

2 Section 40 of the Freedom of Information and Protection of Privacy Act, R.S.B.C. 1996, c. 165, is amended

(a) in subsection (3) by striking out "subsections (4) and (5)." and substituting "subsection (4).", and

(b) by repealing subsection (5).

Ombudsman Act

3 Section 5 of the Ombudsman Act, R.S.B.C. 1996, c. 340, is amended

(a) in subsection (1) by striking out "subsections (2) and (3)," and substituting "subsection (2),", and

(b) by repealing subsection (3).

Public Sector Pension Plans Act

4 Section 1 (1) of the Public Sector Pension Plans Act, S.B.C. 1999, c. 44, is amended by repealing the definitions of "college board" and "college plan" and substituting the following:

"college board" means the board of trustees of the college plan appointed under the terms of the college joint management agreement;

"college joint management agreement" means the agreement between the plan employer partners and the plan member partners, as those terms are defined in section 1 of Schedule A, for the joint management of the college plan;

"college plan" means the College Pension Plan continued under the college joint management agreement; .

Amendments to Schedules

5 Section 1 of Schedule A is amended

(a) by repealing the definition of "board" and substituting the following:

"college board" has the same meaning as in section 1 (1) of the Act; ,

(b) by repealing the definitions of "investment management corporation" and "pension plan rules",

(c) by repealing the definitions of "pension fund" and "pension plan" and substituting the following:

"pension fund" means the cash, investments and other assets of the pension plan held by the college board;

"pension plan" has the same meaning as "college plan" in section 1 (1) of the Act; , and

(d) by repealing the definition of "plan administrator" and substituting the following:

"plan administrative agent" means the pension corporation; .

6 Part 1 of Schedule A is repealed.

7 Sections 5 (2) (b) (ii) and (c) and (4) (b) and (c), 7 (1) and 14 (a) (i) and (ii) of Schedule A are amended by striking out "administrator" and substituting "administrative agent".

8 Section 13 of Schedule A is amended by adding the following subsection:

(4) Regulations made under this Schedule may be made retroactive to no earlier than April 1, 2000, and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.

9 The following Parts are added to Schedule A:

Part 1.1 -- Joint Trusteeship

Joint management agreement

16.1 (1) In this section, "agreement" means the joint management agreement referred to in subsection (2).

(2) The partners may enter into a unanimous joint management agreement that provides for, but is not limited to, all of the following:

(a) the continuation of the pension plan and pension fund, that were continued under this Schedule, for the benefit of plan members;

(b) the joint management of the pension plan and the pension fund;

(c) establishing who will manage the agreement;

(d) the establishment of an arrangement to hold and invest the pension fund;

(e) the composition of the board of trustees of the pension plan, including the appointment of trustees and the delineation of their powers, functions and duties;

(f) the sharing by employers and plan members of gains or surplus and of liability for deficiencies in the pension fund;

(g) the method for amending the pension plan by the agreement of the partners;

(h) the resolution of disputes;

(i) any other matter on which agreement is reached.

(3) The partners must establish appropriate mechanisms whereby the views and interests of the plan members who are

(a) non-unionized employees, and

(b) retirees,

are fairly represented in the negotiation of the agreement.

(4) The pension plan continued under the agreement must provide for all of the following:

(a) employer and employee eligibility to participate in the pension plan;

(b) employer and plan member contributions to the pension fund;

(c) pensionable service, including the calculation of pensions, purchase of service, reinstatement and portability;

(d) eligibility to receive a benefit and the determination of the amount of that benefit;

(e) benefits on termination, early retirement, normal retirement, late retirement, disability retirement and pre-retirement death;

(f) pension indexing;

(g) general administrative requirements;

(h) supplemental benefits;

(i) continued recognition of any rights vested in a plan member or beneficiary, in the same manner and to the same extent as provided under the pension plan;

(j) any matter necessary or advisable to establish the pension plan rules, including those matters described in section 13 (1).

(5) The partners must ensure that

(a) the money of the pension fund is invested or loaned in the best financial interests of the plan members and, in doing that, must

(i) exercise the care, diligence and skill that a person of ordinary prudence would exercise when dealing with the property of another person, and

(ii) ensure that the investments and loans are made in accordance with the provisions of the Pension Benefits Standards Act and other regulatory requirements,

(b) the plan administrative agent keeps an account of all money received and paid out of the pension fund and keeps an accounting of the assets and liabilities of the pension fund, and

(c) the plan administrative agent keeps an individual record of contributions made by each plan member.

(6) Any of the partners may initiate discussions respecting the agreement.

(7) Despite subsection (2), the non-unionized employees and the retirees not represented by the partners may benefit from and be subject to the agreement and the partners have the power to enter into the agreement on behalf of those persons and, if entered into, the agreement is binding on those persons.

Part 1.2 -- Post Retirement Group Benefits

Definitions

16.2 In this Part, "retired plan member" means a person who is receiving a monthly pension benefit from the pension plan, including a person who receives a pension following the death of a plan member, but does not include a limited member as defined in the Family Relations Act.

Continuation of existing post retirement group benefit contracts

16.3 Any portions of an insurance contract made under the Public Service Benefit Plan Act that relate to retired plan members are continued under this Part for the benefit of retired plan members, as if made by the college board under the authority of this Part.

Post retirement group benefits

16.4 (1) Subject to any limits set by the partners in or pursuant to the joint management agreement referred to in section 16.1 (2), the college board may sponsor a program of post retirement group benefits for retired plan members and their dependents.

(2) Insurance under this section may be provided directly or by entering into contracts of insurance.

(3) A contract under this section may be a contract under which the insurer assumes the risk or under which the college board assumes the risk and under which the insurer disburses benefits and generally manages a scheme of insurance on the college board's behalf.

(4) The college board may determine the following:

(a) the type and level of post retirement group benefits;

(b) the eligibility to receive post retirement group benefits;

(c) the terms and conditions of how post retirement group benefits are provided;

(d) the rate of contribution toward payment of any premium required to be made by retired plan members and the methods by which those contributions can be made;

(e) the rate of contribution toward payment of the cost of post retirement group benefits required to be deducted from employer contributions to the pension plan and the methods by which those contributions can be made;

(f) any other matter necessary or advisable to provide post retirement group benefits.

(5) For the purpose of subsection (4) (d), the college board may determine different rates of contribution for different groups of persons.

(6) Despite the Pension Benefits Standards Act, with the retired plan member's consent, the college board may deduct the required premiums for any post retirement group benefits provided under this section from the person's monthly pension benefit.

Application of Pension Benefits Standards Act

16.5 Despite section 1 (8) of the Pension Benefits Standards Act and section 3 (b) of this Act, the Pension Benefits Standards Act does not apply to post retirement group benefits provided pursuant to this Schedule.

10 Section 18 of Schedule A is amended by adding "college" before "board".

11 Section 19 of Schedule A is repealed.

12 Section 1 of Schedules B, C and D is amended

(a) by repealing the definitions of "investment management corporation" and "pension plan rules", and

(b) by repealing the definition of "plan administrator" and substituting the following:

"plan administrative agent" means the pension corporation; .

13 Section 1 of Schedule B is amended

(a) by repealing the definition of "board" and substituting the following:

"municipal board" has the same meaning as in section 1 (1) of the Act; , and

(b) by repealing the definitions of "pension fund" and "pension plan" and substituting the following:

"pension fund" means the cash, investments and other assets of the pension plan held by the municipal board;

"pension plan" has the same meaning as "municipal plan" in section 1 (1) of the Act; .

14 Section 18 (2) (a) of Schedules B, C and D is amended by adding ", that were continued under this Schedule," after "pension fund".

15 Section 18 (4) (f) of Schedule B is repealed.

16 Section 18 (5) (b) and (c) of Schedules B, C and D and section 21 of Schedule C are amended by striking out "administrator" and substituting "administrative agent".

17 The following Part is added to Schedule B:

Part 2.1 -- Post Retirement Group Benefits

Definitions

18.1 In this Part, "retired plan member" means a person who is receiving a monthly pension benefit from the pension plan, including a person who receives a pension following the death of a plan member, but does not include a limited member as defined in the Family Relations Act.

Continuation of existing post retirement group benefit contracts

18.2 Any portions of an insurance contract made under the Public Service Benefit Plan Act that relate to retired plan members are continued under this Part for the benefit of retired plan members, as if made by the municipal board under the authority of this Part.

Post retirement group benefits

18.3 (1) Subject to any limits set by the partners in or pursuant to the joint management agreement referred to in section 18 (2), the municipal board may sponsor a program of post retirement group benefits for retired plan members and their dependents.

(2) Insurance under this section may be provided directly or by entering into contracts of insurance.

(3) A contract under this section may be a contract under which the insurer assumes the risk or under which the municipal board assumes the risk and under which the insurer disburses benefits and generally manages a scheme of insurance on the municipal board's behalf.

(4) The municipal board may determine the following:

(a) the type and level of post retirement group benefits;

(b) the eligibility to receive post retirement group benefits;

(c) the terms and conditions of how post retirement group benefits are provided;

(d) the rate of contribution toward payment of any premium required to be made by retired plan members and the methods by which those contributions can be made;

(e) the rate of contribution toward payment of the cost of post retirement group benefits required to be deducted from employer contributions to the pension plan and the methods by which those contributions can be made;

(f) any other matter necessary or advisable to provide post retirement group benefits.

(5) For the purpose of subsection (4) (d), the municipal board may determine different rates of contribution for different groups of persons.

(6) Despite the Pension Benefits Standards Act, with the retired plan member's consent, the municipal board may deduct the required premiums for any post retirement group benefits provided under this section from the person's monthly pension benefit.

Application of Pension Benefits Standards Act

18.4 Despite section 1 (8) of the Pension Benefits Standards Act and section 3 (b) of this Act, the Pension Benefits Standards Act does not apply to post retirement group benefits provided pursuant to this Schedule.

18 Sections 20 and 21 of Schedule B are amended by adding "municipal" before "board".

19 Section 1 of Schedule C is amended

(a) by repealing the definition of "board" and substituting the following:

"public service board" has the same meaning as in section 1 (1) of the Act. , and

(b) by repealing the definitions of "pension fund" and "pension plan" and substituting the following:

"pension fund" means the cash, investments and other assets of the pension plan held by the public service board;

"pension plan" has the same meaning as "public service plan" in section 1 (1) of the Act; .

20 Section 18 (4) (f) of Schedule C is repealed.

21 The following Part is added to Schedule C:

Part 2.1 -- Post Retirement Group Benefits

Definitions

18.1 In this Part, "retired plan member" means a person who is receiving a monthly pension benefit from the pension plan, including a person who receives a pension following the death of a plan member, but does not include a limited member as defined in the Family Relations Act.

Continuation of existing post retirement group benefit contracts

18.2 Any portions of an insurance contract made under the Public Service Benefit Plan Act that relate to retired plan members are continued under this Part for the benefit of retired plan members, as if made by the public service board under the authority of this Part.

Post retirement group benefits

18.3 (1) Subject to any limits set by the partners in or pursuant to the joint management agreement referred to in section 18 (2), the public service board may sponsor a program of post retirement group benefits for retired plan members and their dependents.

(2) Insurance under this section may be provided directly or by entering into contracts of insurance.

(3) A contract under this section may be a contract under which the insurer assumes the risk or under which the public service board assumes the risk and under which the insurer disburses benefits and generally manages a scheme of insurance on the public service board's behalf.

(4) The public service board may determine the following:

(a) the type and level of post retirement group benefits;

(b) the eligibility to receive post retirement group benefits;

(c) the terms and conditions of how post retirement group benefits are provided;

(d) the rate of contribution toward payment of any premium required to be made by retired plan members and the methods by which those contributions can be made;

(e) the rate of contribution toward payment of the cost of post retirement group benefits required to be deducted from employer contributions to the pension plan and the methods by which those contributions can be made;

(f) any other matter necessary or advisable to provide post retirement group benefits.

(5) For the purpose of subsection (4) (d), the public service board may determine different rates of contribution for different groups of persons.

(6) Despite the Pension Benefits Standards Act, with the retired plan member's consent, the public service board may deduct the required premiums for any post retirement group benefits provided under this section from the person's monthly pension benefit.

Application of Pension Benefits Standards Act

18.4 Despite section 1 (8) of the Pension Benefits Standards Act and section 3 (b) of this Act, the Pension Benefits Standards Act does not apply to post retirement group benefits provided pursuant to this Schedule.

22 Sections 20 and 22 of Schedule C are amended by adding "public service" before "board".

23 Section 1 of Schedule D is amended

(a) by repealing the definition of "board" and substituting the following:

"teachers' board" has the same meaning as in section 1 (1) of the Act; , and

(b) by repealing the definitions of "pension fund" and "pension plan" and substituting the following:

"pension fund" means the cash, investments and other assets of the pension plan held by the teachers' board;

"pension plan" has the same meaning as "teachers' plan" in section 1 (1) of the Act; .

24 Section 18 (4) (f) of Schedule D is repealed.

25 The following Part is added to Schedule D:

Part 2.1 -- Post Retirement Group Benefits

Definitions

18.1 In this Part, "retired plan member" means a person who is receiving a monthly pension benefit from the pension plan, including a person who receives a pension following the death of a plan member, but does not include a limited member as defined in the Family Relations Act.

Continuation of existing post retirement group benefit contracts

18.2 Any portions of an insurance contract made under the Public Service Benefit Plan Act that relate to retired plan members are continued under this Part for the benefit of retired plan members, as if made by the teachers' board under the authority of this Part.

Post retirement group benefits

18.3 (1) Subject to any limits set by the partners in or pursuant to the joint management agreement referred to in section 18 (2), the teachers' board may sponsor a program of post retirement group benefits for retired plan members and their dependents.

(2) Insurance under this section may be provided directly or by entering into contracts of insurance.

(3) A contract under this section may be a contract under which the insurer assumes the risk or under which the teachers' board assumes the risk and under which the insurer disburses benefits and generally manages a scheme of insurance on the teachers' board's behalf.

(4) The teachers' board may determine the following:

(a) the type and level of post retirement group benefits;

(b) the eligibility to receive post retirement group benefits;

(c) the terms and conditions of how post retirement group benefits are provided;

(d) the rate of contribution toward payment of any premium required to be made by retired plan members and the methods by which those contributions can be made;

(e) the rate of contribution toward payment of the cost of post retirement group benefits required to be deducted from employer contributions to the pension plan and the methods by which those contributions can be made;

(f) any other matter necessary or advisable to provide post retirement group benefits.

(5) For the purpose of subsection (4) (d), the teachers' board may determine different rates of contribution for different groups of persons.

(6) Despite the Pension Benefits Standards Act, with the retired plan member's consent, the teachers' board may deduct the required premiums for any post retirement group benefits provided under this section from the person's monthly pension benefit.

Application of Pension Benefits Standards Act

18.4 Despite section 1 (8) of the Pension Benefits Standards Act and section 3 (b) of this Act, the Pension Benefits Standards Act does not apply to post retirement group benefits provided pursuant to this Schedule.

26 Sections 20 and 21 of Schedule D are amended by adding "teachers'" before "board".

Public Service Benefit Plan Act

27 Section 1 (f) of the Public Service Benefit Plan Act, R.S.B.C. 1996, c. 386, is repealed.

28 Section 9 is amended

(a) in the definition of "contributor" by striking out "or pensioner", and

(b) by repealing the definition of "pensioner".

29 Sections 10 (1) (c), 11 (3) and 17 (2) (l) are amended by striking out "or pensioner".

30 Section 11 is amended

(a) by repealing subsection (1) (b), and

(b) in subsection (3) by striking out "and (b)".

31 Section 12 is amended

(a) in subsection (1) (a) by striking out "or pensioners, and their dependants," and substituting "and their dependants",

(b) in subsection (1) (a) by striking out "and pensioners, and their dependants," and substituting "and their dependants", and

(c) in subsection (2) by striking out "and pensioners".

Trade Development Corporation Act

32 Section 10 (3) of the Trade Development Corporation Act, R.S.B.C. 1996, c. 456, is repealed.

Commencement

33 (1) Sections 1 to 3 and 32 are deemed to have come into force on January 1, 2001 and are retroactive to the extent necessary to give them effect on and after that date.

(2) Sections 4, 5 (a), (b) and (c), 6, 10 and 27 to 31 come into force by regulation of the Lieutenant Governor in Council.

(3) Subject to subsection (4), sections 9, 15, 17, 20, 21, 24 and 25 come into force by regulation of the Lieutenant Governor in Council.

(4) Section 16.5 of Schedule A and section 18.4 of Schedules B, C and D of the Public Sector Pension Plans Act as enacted by this Act are deemed to have come into force on April 1, 2000 and are retroactive to the extent necessary to give them effect on and after that date.