Legislative Assembly Retiring Allowances Act

Consolidated act
Citation
R.S.N.W.T. 1988, c.L-6
Source
Unofficial consolidation PDF (justice.gov.nt.ca)

This is an unofficial reading copy parsed from the Department of Justice consolidation PDF above — itself an office consolidation, not an official statement of the law. The authoritative text is in the Revised Statutes of the Northwest Territories, 1988 and the annual Statutes volumes.

Cites
Cited by
Contents
1. Definitions 2. Duration of Legislative Assembly 3. Ceasing 4. Legislative Assembly Retiring Allowances 5. Engaging persons and delegation of powers 5.1. Repealed 6. Contributions after October 15, 1995 6.1. Mode of contribution 7. Refund of contributions 8. When contributions not to be paid 9. Repealed 10. Allowances 11. Definition: "qualifying member" 12. Definition: "qualifying member" 12.1. Definition: "qualifying member" 13. Maximum allowance 14. Repealed 15. Allowances to surviving spouse and children 16. Repealed 17. Lump sum 17.1. Lump sum payable in respect of a member with- out dependants 17.2. Designation of beneficiary 18. Post- retirement increase 19. Election to receive allowance at other time 19.1. Allowance not paid during 20. Transfer to retirement savings plan 20.1. Maximum allowance 20.2. Board of Management may alter years of contribution 20.3. Assignment prohibited 20.4. Definitions 21. Report to Legislative Assembly 22. Regulations 23. Definition: "previous Act" 24. Recipient under previous Act 25. Persons entitled to allowance
Regulations
Legislative Assembly Retiring Allowances Regulations

INTERPRETATION

Definitions

1.

In this Act,

"actuary" means a Fellow of the Canadian Institute of Actuaries engaged by the Board of Management under subsection 5(2); (actuaire)

"adjustment" means the post-retirement increase payable under section 18; (rajustement)

"allowance" means an allowance payable under this Act; (allocation)

"basic allowance" means

(a) in the case of a member, the annual allowance the member would have been eligible to receive under this Act if the member had ceased to be a member on the day immediately before his or her death, and

(b) in the case of a former member who is in receipt of an annual allowance, the annual allowance the former member was receiving under this Act at the time of his or her death; (allocation de base)

"Benefit Index" means the Benefit Index as defined in the Supplementary Retirement Benefits Act (Canada); (indice de prestation)

"Board of Management" means the Legislative Assembly Board of Management continued under subsection 36(1) of the Legislative Assembly and Executive Council Act; (Bureau de régie)

"child" means the natural child, stepchild or adopted child of a member or former member who

(a) is less than the age of majority,

(a.1) would qualify for a tax credit pursuant to section 118.3 of the Income Tax Act (Canada) for a mental and physical impairment and who is dependent on the member for the necessities of life, or

(b) has attained the age of majority, but is less than 25 years of age, and is in full-time attendance at a school or university, having been in full-time attendance substantially without interruption since he or she reached the age of majority, or since the member or former member died, whichever occurred later; (enfant)

"contributions" means contributions made by members under this Act; (contribution)

"defined benefit limit" has the meaning assigned to it by subsection 8500(1) of the Income Tax Regulations, made under the Income Tax Act (Canada); (plafond des prestations déterminées)

"Deputy Speaker" means the Deputy Speaker and chairperson of the Committee of the Whole; (président adjoint)

"earnings" means the indemnity payable to a member for service in a required capacity; (gains)

"Fund" means the Legislative Assembly Retiring Allowances Fund established under subsection 4(1); (fonds)

"member" means a member of the Legislative Assembly; (député)

"pensionable age" means the earliest of

(a) 60 years of age,

(b) 30 years of service, or

(c) the aggregate of an age in years and years of service equal to 80; (âge admissible)

"pensionable remuneration" means an annual, daily or other indemnity payable to a member under the Legislative Assembly and Executive Council Act; (revenu admissible)

"recipient" means a person who

(a) is a member or former member who is in receipt of an annual allowance under this Act, or

(b) is a person in receipt of an annual allowance by virtue of being a former spouse, surviving spouse or child of a member or former member; (prestataire)

"required capacity" means the capacity of the Speaker, the Deputy Speaker, a deputy chairperson of the Committee of the Whole, a chairperson of a standing committee of the Legislative Assembly, the Premier or a Minister; (charge)

"service" means service as a member of the Legislative Assembly; (mandat) "Speaker" means the Speaker of the Legislative Assembly; (président)

"spouse" means a person who

(a) is married to a member or former member,

(b) has been married in good faith to a member or former member in a marriage that is voidable or void and has entered that marriage in good faith, or

(c) has lived together in a conjugal relationship outside marriage with a member or former member, if

(i) the person and the member or former member have so lived for a period of at least two years, or

(ii) the relationship is one of some permanence and the person and the member or former member are together the natural or adoptive parents of a child. (conjoint)

R.S.N.W.T. 1988,c.41(Supp.), s.2; S.N.W.T. 1998, c.4,s.2; S.N.W.T. 1998,c.31,Sch.A,s.1; S.N.W.T. 1999, c.22,s.113(2),(3),4; S.N.W.T. 2002,c.4,s.2(1),(3),(4); S.N.W.T. 2011,c.12,s.2,3(1); S.N.W.T. 2015,c.15,s.2.

Duration of Legislative Assembly

2.

For the purposes of this Act, a Legislative Assembly that is not dissolved before the expiration of the period fixed for its duration is deemed to be dissolved on the expiration of that period. S.N.W.T. 2011,c.12,s.4(1).

Ceasing

3.

For the purposes of this Act,

(a) a person does not cease to be a member by reason only of a dissolution of the Legislative Assembly; and

(b) a person who was a member immediately before a dissolution of the Legislative Assembly ceases to be a member if he or she is not elected as a member of the Legislative Assembly at the general election next following the dissolution, and is deemed to have ceased to be a member on the day on which the general election was held.

S.N.W.T. 2011,c.12,s.5.

Legislative Assembly Retiring Allowances

4.

(1) There shall be established a fund called the Legislative Assembly Retiring Allowances Fund into which shall be paid

(a) by the Comptroller General, from the Consolidated Revenue Fund, the sums that the Commissioner may direct to fund the allowances and adjustments earned by members;

(b) contributions made by members under this Act; and

(c) any investment income earned by the Fund.

Payment of allowances, benefits and expenses

(2) Every allowance and adjustment payable under this Act and all expenses incurred in the administration of the Fund shall be paid out of the Fund and shall be charged to the Fund.

(3) Repealed, S.N.W.T. 2011,c.12,s.6(1).

Administration of Fund

(4) The Board of Management shall administer the Fund.

Surplus

(5) If the Fund is wound up and a surplus arises that cannot be distributed to members and former members in accordance with this Act, the surplus shall be paid into the Consolidated Revenue Fund.

Valuation of liabilities

(6) The actuary shall value the liabilities of the Fund no less frequently than as of April 1 in the year after a general election, and shall provide a report of the valuation to the Board of Management. R.S.N.W.T. 1988,c.41(Supp.),s.3; S.N.W.T. 1999, c.22,s.113(3); S.N.W.T. 2002,c.4,s.3; S.N.W.T. 2011, c.12,s.6.

LEGISLATIVE ASSEMBLY

BOARD OF MANAGEMENT

Engaging persons and delegation of powers

5.

(1) The Board of Management may engage the persons that it considers necessary for carrying out the provisions of this Act and it may delegate all or any of its powers of administration to these persons.

Engaging professionals

(2) The Board of Management

(a) may engage the professionals that it requires to assist and advise it in the administration of this Act, and

(b) shall fix the functions, duties and remuneration of the professionals that it engages,

and such professionals shall be paid out of the Fund. S.N.W.T. 1999,c.22,s.113(3),(5).

5.1.

Repealed, S.N.W.T. 2002,c.4,s.4.

CONTRIBUTIONS

Contributions after October 15, 1995

6.
contributions cease

(1) Subject to subsections (2), (3) and (4), a member shall contribute to the Fund, in each month, 6.5% of 1/12 of the lesser of

(a) the yearly pensionable remuneration and earnings of the member; and

(b) the defined benefit limit divided by 2%.

Contributions if election filed under Supplementary Retiring Allowances Act

(2) Subject to subsections (3) and (4), if a member has filed an election in accordance with subsection 5.2(2) of the Supplementary Retiring Allowances Act, the member shall contribute to the Fund, in each month, 9% of 1/12 of the lesser of

(a) the yearly pensionable remuneration and earnings of the member; and

(b) the defined benefit limit divided by 2%.

When

(3) No member may contribute under subsection

contributions cease

(1) or (2) after November 30 in the year in which the member attains 71 years of age.

Maximum contribution in calendar year

(4) A member’s contribution in respect of a calendar year must not exceed the lesser of

(a) 9% of the member’s pensionable remuneration and earnings for the calendar year; and

(b) $1,000 plus 70% of the member’s pension credit for the calendar year as calculated under Part LXXXIII of the Income Tax Regulations (Canada).

contribution under subsection (5)

(5) For the period of service commencing December 7, 1999 and ending immediately before the day on which a member files an election under paragraph 5.2(2)(a) of the Supplementary Retiring Allowances Act, the member shall contribute to the Fund, for each month or portion of a month during the period, 2.5% of 1/12 of the lesser of

(a) the pensionable remuneration and earnings paid to the member in the year in which the month occurs; and

(b) the defined benefit limit divided by 2%.

Payment of

(6) A contribution by a member under subsection

contribution under subsection (5)

(5) must be made by way of deduction in accordance with section 6.1 during the Fourteenth Legislative Assembly. R.S.N.W.T. 1988, c.41(Supp.),s.4,5; S.N.W.T. 1998,c.4,s.3; S.N.W.T. 2002,c.4,s.5; S.N.W.T. 2011,c.12,s.3(3); S.N.W.T. 2015,c.15,s.3(1).

Mode of contribution

6.1.

A contribution under section 6 must be made by way of deduction from the pensionable remuneration and earnings of a member. S.N.W.T. 1998,c.4,s.3.

Refund of contributions

7.

(1) A person shall receive a refund of all contributions made, with interest at the rate fixed by the Board of Management, where that person, on ceasing to be a member, is not a qualifying member as defined in subsection 11(1) or 12.1(1).

Election to include prior service

(2) A person who received a refund under subsection (1) may elect, on subsequently becoming a member, to include that part of his or her service for which the refund was received as service under this Act.

Form of election

(3) A member may make an election under subsection (2) by filing with the Speaker, within 60 days after the commencement of the first session of the Legislative Assembly immediately following the member’s election, an election in the form approved by the Speaker.

Amount of payment in respect of prior service

(4) A member who makes an election under subsection (2) shall pay an amount that is equal to the amount received under subsection (1) with interest at the rate fixed by the Board of Management, calculated from the day on which the member received the refund.

How payment must be made

(5) The amount payable under subsection (4) must be paid into the Fund before the dissolution of the Legislative Assembly to which the member was most recently elected or on the member ceasing to be a member, whichever is earlier.

Amount returned if total payment not made

(6) If the entire amount payable by a member under subsection (4) is not paid within the time provided by subsection (5), the amount paid by the member, with interest at the rate fixed by the Board of Management, shall be returned to the member and the member is deemed to have not filed an election in accordance with this section. R.S.N.W.T. 1988, c.41(Supp.),s.6; S.N.W.T. 1996,c.9, Sch.C,s.1; S.N.W.T. 1998, c.31, Sch.A,s.3; S.N.W.T. 1999,c.22, s.113(3); S.N.W.T. 2002,c.4,s.7; S.N.W.T. 2011, c.12, s.7.

When contributions not to be paid

8.

Notwithstanding anything in this Act, no contribution shall be made by a member

(a) after the member has been disqualified from sitting in the Legislative Assembly; or

(b) after the member has ceased to be a member.

(c) Repealed, R.S.N.W.T. 1988,c.41 (Supp.), s.7.

9.

Repealed, R.S.N.W.T. 1988,c.41(Supp.),s.8.

RETIRING ALLOWANCES

Allowances

10.

(1) An allowance shall be paid in accordance with this Act to or in respect of a member or former member.

Monthly payments

(2) Except as otherwise provided in this Act or in the regulations, an annual allowance is payable to a recipient monthly during his or her lifetime. S.N.W.T. 2002,c.4,s.8; S.N.W.T. 2011,c.12,s.8.

Definition: "qualifying member"

11.

(1) In this section, "qualifying member" means a member who

(a) ceased to be a member on or before October 16, 1995 and, at the time he or she ceased to be a member, had given at least six years of service; or

(b) ceases to be a member after October 16, 1995 and before October 18, 2007, and at the time he or she ceases to be a member,

(i) has given at least four years of service, or

(ii) was elected to the Legislative Assembly at a general election and has continued as a member of that Legislative Assembly until

(A) it is dissolved, or

(B) April 1, 1999, where the member ceases to be a member of the Council of the Northwest Territories by virtue of the coming into force of subsection 76(1) of the Nunavut Act.

Retiring allowance based on remuneration for service before 1992

(2) Subject to sections 19 to 20, a qualifying member shall be paid, on attaining 55 years of age, an annual allowance in an amount equal to

(a) the number of years of service after March 10, 1975 and before January 1, 1992, not exceeding 15 years,

multiplied by

(b) where the member has served four or more years, 2% of the average annual pensionable remuneration received by the member during any period selected by him or her or on his or her behalf consisting of non-overlapping periods of service totalling four years; or

(c) where the member has served less than four years, 2% of the average annual pensionable remuneration received by the member during the period of total service.

Retiring allowance based on remuneration for service after 1991

(3) Subject to sections 13 and 19 to 20, a qualifying member shall be paid, on attaining pensionable age, in addition to the allowance payable under subsection (2), an annual allowance in an amount equal to

(a) the number of years of service after December 31, 1991,

multiplied by

(b) where the member has served four or more years, 2% of the average annual pensionable remuneration received by the member during any period selected by him or her or on his or her behalf consisting of non-overlapping periods of service totalling four years; or

(c) where the member has served less than four years, 2% of the average annual pensionable remuneration received by the member during the period of total service.

Limitation

(4) The number of years of service referred to in paragraph (3)(a) must not include any period after November 30 in the year in which the member or former member attains 71 years of age. R.S.N.W.T. 1988,c.41(Supp.),s.10; S.N.W.T. 1996, c.9,Sch.C,s.2; S.N.W.T. 1998,c.4,s.4; S.N.W.T. 1998, c.31,Sch.A, s.4; S.N.W.T. 2002,c.4,s.11; S.N.W.T. 2011,c.12, s.3(2),(4), 4(2),9.

Definition: "qualifying member"

12.

(1) In this section, "qualifying member" means a member who, at the time he or she ceases to be a member,

(a) is eligible for an allowance under section 11; and

(b) has served at least one year in a required capacity.

Retiring allowance based on earnings for service before 1992

(2) Subject to sections 19 to 20, a qualifying member shall be paid, on attaining 55 years of age, in addition to the allowance payable under section 11, an annual allowance equal to

(a) the number of years of service after March 10, 1975 and before January 1, 1992, in the required capacity, not exceeding 15 years,

multiplied by

(b) where the member has served four or more years in the required capacity, 2% of the average annual earnings received by the member during any period selected by him or her or on his or her behalf consisting of non-overlapping periods of service totalling four years; or

(c) where the member has served less than four years in the required capacity, 2% of the average annual earnings received by the member during the period of total service in the required capacity.

Retiring allowance based on earnings for service after 1991

(3) Subject to sections 13 and 19 to 20, a qualifying member shall be paid, on attaining pensionable age, in addition to the allowances payable under subsection (2) and section 11, an annual allowance equal to

(a) the number of years of service in the required capacity after December 31, 1991,

multiplied by

(b) where the member has served four or more years in the required capacity, 2% of the average annual earnings received by the member during any period selected by him or her or on his or her behalf consisting of non-overlapping periods of service totalling four years; or

(c) where the member has served less than four years in the required capacity, 2% of the average annual earnings received by the member during the period of total service in the required capacity.

Limitation

(4) The number of years of service referred to in paragraph (3)(a) must not include any period after November 30 in the year in which the member or former member attains 71 years of age. R.S.N.W.T. 1988,c.41(Supp.),s.10; S.N.W.T. 1998, c.4,s.5; S.N.W.T. 1999,c.22,s.113(4); S.N.W.T. 2002,c.4, s.12; S.N.W.T. 2011,c.12,s.3(2),(4),4(2).

Definition: "qualifying member"

12.1.

(1) In this section, "qualifying member" means a member who ceases to be a member after October 17, 2007, and

(a) has given at least four years of service at the time he or she ceases to be a member;

(b) was elected to the Legislative Assembly at a general election and has continued as a member of that Legislative Assembly until it is dissolved; or

(c) attains 71 years of age while he or she is serving as a member.

Retiring allowance based on pensionable remuneration and earnings

(2) Subject to sections 13 and 19 to 20, a qualifying member shall, on attaining pensionable age, be paid an annual allowance equal to

(a) the number of years of service,

multiplied by

(b) 2% of the average annual pensionable remuneration and earnings received by the member during any period selected by him or her or on his or her behalf consisting of non-overlapping periods of service totalling four years; or

(c) where a member has given less than four years of service, 2% of the average annual pensionable remuneration and earnings received by the member during the period of total service.

Limitation

(3) The number of years of service referred to in subsection (2) must not include any period after November 30 in the year in which the member or former member attains 71 years of age. S.N.W.T. 2011, c.12,s.10.

Maximum allowance

13.

(1) The aggregate of the allowances paid under subsections 11(3) and 12(3) or under subsection 12.1(2) must not exceed the amount determined by the formula A x B where

(a) A is the lesser of

(i) the defined benefit limit for the year in which the allowances commence to be paid, and

(ii) 2% of the average annual pensionable remuneration and earnings calculated under subsection (2), and

(b) B is the number of years of service of the member after December 31, 1991.

Calculation of average annual pensionable

(2) The "average annual pensionable remuneration and earnings" referred to in subsection

(1) is the average of the annual pensionable remuneration and earnings received by the member over the three non-overlapping years of service that have the highest annual pensionable remuneration and earnings and, for the purposes of this subsection, the pensionable remuneration and earnings for a year is equal to

(a) that year's pensionable remuneration and earnings,

multiplied by

(b) the ratio obtained by dividing the average wage for the year in which the allowances commence to be paid by the average wage for the year in which the pensionable remuneration and earnings were paid.

Definitions

(3) In this section,

"average wage" means, in respect of a year, the amount obtained by adding the wage measures for each of the months in the 12-month period ending on June 30 of the immediately preceding calendar year, and by dividing that sum by 12; (salaire moyen) "wage measure" means, in respect of any month, the average weekly wages and salaries of

(a) the Industrial Aggregate in Canada for the month as published by Statistics Canada under the Statistics Act (Canada), or

(b) in the event that the Industrial Aggregate ceases to be published, such other measure as is prescribed by regulation for the month as referred to in paragraph 18(5)(b) of the Canada Pension Plan (Canada).

R.S.N.W.T. 1988, c.41(Supp.),s.11; S.N.W.T. 1998, c.4, s.6; S.N.W.T. 2002,c.4,s.13; S.N.W.T. 2011,c.12,s.11; S.N.W.T. 2015,c.15,s.3(2).

14.

Repealed, R.S.N.W.T 1988,c.41(Supp.),s.12.

ALLOWANCES ON DEATH

Allowances to surviving spouse and children

15.

(1) On the death of a member or former member, an annual allowance shall be paid to the surviving spouse and to each child of the member or former member as follows:

(a) to the surviving spouse, an annual allowance equal to,

(i) in respect of service before January 1, 1992, 75% of the basic allowance of the member or former member, and

(ii) in respect of service after December 31, 1991,

(A) 100% of the basic allowance of the member or former member for the first 60 monthly payments beginning the day on which an allowance under this Act commences to be paid, and

(B) 66 2/3% of the basic allowance of the member or former member after the first 60 monthly payments;

(b) if the member or former member dies leaving a surviving spouse, to each child of the member or former member, an annual allowance equal to 10% of the basic allowance of the member or former member;

(c) if the member or former member dies without leaving a surviving spouse, to each child of the member or former member, an annual allowance equal to,

(i) in respect of service before January 1, 1992, 25% of the basic allowance of the member or former member, and

(ii) in respect of service after December 31, 1991,

(A) 100% of the basic allowance of the member or former member, divided by the number of children, for the first 60 monthly payments beginning the day on which an allowance under this Act commences to be paid, and

(B) 25% of the basic allowance of the member or former member after the first 60 monthly payments.

Duration of allowance

(2) An allowance payable under paragraph (1)(a) is payable for the lifetime of the surviving spouse.

Allowance to child

(3) An allowance payable to a recipient under paragraph (1)(b), subparagraph (1)(c)(i) or clause (1)(c)(ii)(B) is payable until the recipient ceases to be a child as defined in section 1.

Five year guarantee

(3.1) An allowance payable under clause (1)(c)(ii)(A) and, notwithstanding subsection (2), an allowance payable under clause (1)(a)(ii)(A) is payable for the remainder of the 60 monthly payments made after the day on which an allowance under this Act commences to be paid to or in respect of the former member.

Where more than one allowance payable

(4) Where more than one allowance is payable under subsection (1), the total amount of the allowances must not exceed 100% of the basic allowance of the member or former member.

Reduction of allowances payable to children

(5) If the allowances payable under subsection (1) are reduced as a result of the application of subsection (4), the reduction shall be made from the allowances payable to the children of the member or former member. S.N.W.T. 1996,c.9,Sch.C,s.3; R.S.N.W.T. 1988, c.41(Supp.),s.13; S.N.W.T. 1998,c.4,s.7; S.N.W.T. 2002,c.4,s.14; S.N.W.T. 2011,c.12,s.12; S.N.W.T. 2015,c.15,s.3(1).

16.

Repealed, R.S.N.W.T. 1988,c.41(Supp.),s.14.

Lump sum

17.

(1) Where a member or former member who is not in receipt of an allowance under this Act dies and there is no person to whom an allowance may be paid in respect of that member or former member, a lump sum approved by the Board of Management shall be paid to the beneficiary designated by the member or former member.

Amount

(2) A lump sum referred to in subsection (1) shall be equal to the actuarial present value of the basic allowance that would have been paid to the member or former member in respect of service after 1989 as determined by the actuary in accordance with the regulations. R.S.N.W.T. 1988, c.41(Supp.),s.15; S.N.W.T. 1996,c.9,Sch.C,s.4; S.N.W.T. 1999, c.22, s.113(3); S.N.W.T. 2002, c.4,s.15.

Lump sum payable in respect of a member with- out dependants

17.1.

Where a former member who is in receipt of an allowance dies and there is no person to whom an allowance may be paid in respect of that former member, a lump sum equal to the actuarial present value of the allowance that would have been paid to the former member for the period commencing on the day of the former member’s death and ending on the day before the tenth anniversary of the day that payment of the allowance to the former member commenced shall be paid to the beneficiary designated by the former member. S.N.W.T. 1996, c.9,Sch.C,s.5.

Designation of beneficiary

17.2.

(1) A member or former member may designate a beneficiary for the purposes of subsection 17(1) and section 17.1.

Deemed desig- nation of beneficiary

(2) A member or former member who does not make a designation of a beneficiary under subsection

(1) is deemed to have designated his or her estate as beneficiary. S.N.W.T. 1996,c.9,Sch.C,s.5; S.N.W.T. 2002,c.4,s.16.

S.N.W.T. 2002,c.4,s.17(1).

POST-RETIREMENT INCREASES

Post- retirement increase

18.

(1) A post-retirement increase shall be paid to every recipient.

Calculation

(2) The post-retirement increase payable to a recipient for a month in any year is an amount equal to the amount obtained by multiplying

(a) the amount of the annual allowance payable to the recipient for that month,

by

(b) the ratio that the Benefit Index for the year in which that month falls bears to the Benefit Index for the year in which the member or former member ceases to be a member or dies,

and by subtracting from that product the amount of the annual allowance payable to the recipient for that month.

Payment

(3) A post-retirement increase payable to a recipient is payable at the same time, in the same manner, and subject to the same terms and conditions as an annual allowance payable to that recipient. S.N.W.T. 2002,c.4,s.17.

RETIREMENT

Election to receive allowance at other time

19.

(1) Subject to subsection (5), a member who ceases to be a member may elect, in accordance with the regulations, to begin receiving, at any time, any allowance to which he or she would otherwise be entitled under this Act.

Adjustment of amount for service before 1992

(2) Where a member or former member elects under subsection (1) to commence receiving an allowance on a date before his or her 55th birthday, the amount of the allowance payable to him or her, in respect of service before January 1, 1992, shall be adjusted to be the actuarial equivalent of the allowance payable from 55 years of age.

(3) Repealed, S.N.W.T. 2002,c.4,s.18(2).

Adjustment of amount for service after 1991

(4) Where a member or former member elects under subsection (1) to commence receiving an allowance before he or she has attained pensionable age, the amount of the allowance payable to him or her, in respect of service after December 31, 1991, shall be reduced by 0.25% for each month or part of a month that precedes the day the member attains pensionable age.

Deemed election

(5) A member or former member who fails to make an election before December 1 of the year in which he or she attains 71 years of age is deemed to have elected to commence receiving an allowance on December 1 of that year. S.N.W.T. 1998,c.4,s.8; S.N.W.T. 2002,c.4,s.18; S.N.W.T. 2011,c.12, s.3(2), (3).

Allowance not paid during

19.1.

(1) A member is not entitled to receive any allowance until

(a) he or she ceases to be a member, or

(b) December 1 in the year in which the member attains 71 years of age,

whichever first occurs.

Former member returns as member

(2) A former member who is entitled to an allowance under section 11, 12 or 12.1, whether or not he or she is in receipt of such allowance, and who again becomes a member after October 17, 2007 and before November 30 of the year in which he or she attains 71 years of age, shall have that allowance cancelled, and shall instead be entitled to an allowance based on his or her cumulative period of service calculated under section 12.1 and payable no sooner than is permitted under subsection (1). S.N.W.T. 1998,c.4,s.8; S.N.W.T. 2002,c.4,s.19; S.N.W.T. 2011, ch.12,s.3(4),13.

(3) Repealed, S.N.W.T. 2011,c.12,s.13.

Transfer to retirement savings plan

20.

(1) Where a member ceases to be a member after December 31, 1997, he or she may elect, in accordance with the regulations, to transfer all or a portion of the aggregate value of the allowances payable under this Act, calculated as at the time the member so elects and in accordance with the regulations,

(a) if the member has not attained 55 years of age, to a registered retirement savings plan; or

(b) if the member has attained 55 years of age, to a registered retirement savings plan of the prescribed kind.

Determination of transfer amount

(2) For the purpose of determining the amount that may be transferred under subsection (1),

(a) the entire aggregate value of the allowances payable under this Act after the member has attained 65 years of age must be included; and

(b) all or a portion of the aggregate value of the allowances payable under this Act before the member has attained 65 years of age may be included.

Specification of period

(3) A member who elects to transfer a portion as described in paragraph (2)(b) shall specify, in the election, the period of time to which the portion relates.

Definition: "registered retirement savings plan"

(4) In subsection (1), "registered retirement savings plan" has the meaning assigned to it by subsection 146(1) of the Income Tax Act (Canada).

Where amount exceeds allowable limit

(5) Where the amount transferred under subsection (1) exceeds the amount prescribed under paragraph 147.3(4)(c) of the Income Tax Act (Canada), the excess, less any amount required by that Act to be withheld, must be paid to the member. S.N.W.T. 1998,c.4,s.8; S.N.W.T. 2002,c.4,s.20(2); S.N.W.T. 2011,c.12,s.14.

LIMITATION ON AMOUNT OF ALLOWANCE

Maximum allowance

20.1.

(1) Notwithstanding any other provision of this Act or of the Supplementary Retiring Allowances Act, the combined allowances payable in respect of a member or a former member under this Act and the Supplementary Retiring Allowances Act in the year in which the allowances commence or commenced to be paid must not exceed 75% of the average annual pensionable remuneration and earnings of the member or former member, as determined in accordance with subsection 13(2).

Reduction of allowance

(1.1) If the combined allowances payable in respect of a member or former member are reduced as a result of the application of subsection (1), the reduction shall be made

(a) first from the allowances payable under the Supplementary Retiring Allowances Act; and

(b) if there is no allowance or no further allowance payable under the Supplementary Retiring Allowances Act, from the allowances payable under this Act.

Adjustments to maximum allowance

(2) Where combined allowances are limited under subsection (1), the only adjustments that may be made to the combined allowances payable to a member or former member after the year in which the allowances commence or commenced to be paid are those adjustments referred to in section 18 of this Act and section 8 of the Supplementary Retiring Allowances Act.

Application to allowance payable on death

(3) In respect of an allowance payable under subsection 15(1), subsection (1) applies to the basic allowance of the member or former member referred to in paragraphs 15(1)(a) to (c).

Supplementary Retiring Allowances Act

(4) In respect of an allowance payable under subsection 6(1) of the Supplementary Retiring Allowances Act, subsection (1) applies to the basic allowance of the member or former member referred to in paragraphs 6(1)(a) to (c) of that Act.

Application

(5) This section applies to every allowance paid on or after April 1, 1996 in respect of members and former members. S.N.W.T. 1996, c.9, Sch.C,s.6; S.N.W.T. 1998,c.4,s.8; S.N.W.T. 2002,c.4,s.21; S.N.W.T. 2011,c.12,s.15; S.N.W.T. 2015,c.15,s.3(2).

Board of Management may alter years of contribution

20.2.

Notwithstanding any other provision of this Act or of the Supplementary Retiring Allowances Act, the Board of Management, on determining that the allowance which will be payable to a member or former member is close to or has reached the maximum referred to in subsection 20.1(1), may direct that the member’s contributions cease on a specified date or on the payment of a specified amount. S.N.W.T. 2002,c.4,s.22.

ASSIGNMENT

Assignment prohibited

20.3.

(1) No right of a person under this Act is capable of being assigned, charged, anticipated, given as security or surrendered.

Assignments not included

(2) For the purposes of subsection (1), assignment does not include

(a) a division and distribution under section 20.4; or

(b) assignment by the legal representative of a deceased member or former member on the distribution of his or her estate.

Limitation on meaning of surrender

(3) For the purposes of subsection (1), surrender does not include a reduction in benefits to avoid the revocation of the registration of this Act under the Income Tax Act (Canada). S.N.W.T. 2002,c.4,s.22; S.N.W.T. 2011,c.12,s.16.

DIVISION OF ALLOWANCES

Definitions

20.4.

(1) In this section and in section 22,

"court order" means an order of the court under section 38 of the Family Law Act or a similar judgment of a court outside the Northwest Territories that is enforceable in the Territories; (ordonnance judiciaire)

"separation agreement" means a written agreement in settlement of rights arising out of a marriage or a conjugal relationship outside marriage between a member or former member and his or her former spouse, on or after the breakdown of that marriage or relationship; (accord de séparation)

"share" means, with respect to a member or former member or to his or her former spouse, that person’s portion of the total pre-division benefit resulting from the division of the member or former member’s allowance under this section; (part)

"total pre-division benefit" means the benefit accrued to the member or former member under this Act immediately before the division under this section. (total des prestations avant partage)

Application

(2) This section applies with respect to the division and distribution of allowances under this Act where, as between a member or former member and his or her former spouse, a court order or separation agreement containing the prescribed information is filed with the Board of Management, and this section further applies notwithstanding any other provision of this Act unless the contrary is specifically stated, and notwithstanding any other rule of law or equity.

Entitlement subject to court order, separation agreement

(3) The entitlement of any person to an allowance under this Act is subject to rights arising under a court order or a separation agreement that has been filed with the Board of Management.

Value of total pre-division benefit

(4) The value of the total pre-division benefit and of the share of a former spouse must be calculated in the prescribed manner.

Distribution

(5) The share of a former spouse arising under this Act may be distributed under the prescribed conditions.

Satisfaction of entitlements, obligations

(6) If the full amount of the share of a former spouse arising under this Act has been distributed in accordance with subsection (5),

(a) the former spouse shall not receive any further benefit under this Act; and

(b) the Board of Management has no further obligation to the former spouse and has no liability to the member or former member, the former spouse or to any other person by reason only that the court order or separation agreement has been complied with.

Adjustment of share

(7) After a division of a member or former member’s allowance under this section, the Board of Management shall adjust the member or former member’s share in the prescribed manner and adjust its records accordingly.

Allowance payable to child

(8) Where a member or former member’s entitlement to an allowance has been divided under this section, and he or she dies, the allowance payable to a child under this Act shall be paid in the prescribed manner.

No combination of share and allowance

(9) Where a former spouse has received or is entitled to receive a share of a member or former member’s allowance under this section, no portion of such share and no right associated with that share may be combined with any allowance to which the former spouse may become entitled as a result of the former spouse being or becoming a member or as a result of a subsequent division of another member or former member’s allowance. S.N.W.T. 2011,c.12,s.17

Report to Legislative Assembly

21.

(1) The Board of Management shall, as soon as possible after the end of each fiscal year, lay before the Legislative Assembly a report on the administration of this Act during the preceding fiscal year and shall include in the report

(a) any report on the Fund prepared during the preceding fiscal year by the actuary under subsection 4(6);

(b) the financial statements of the Fund;

(c) the report of the auditor on the financial statements of the Fund; and

(d) any other information that in the opinion of the Board of Management should be brought to the attention of the Legislative Assembly.

Contents of financial statements

(2) The financial statements referred to in paragraph (1)(b) must be prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding fiscal year and must include

(a) a statement of net assets available for allowances and adjustments as at the end of the fiscal year; and

(b) a statement of changes in net assets available for allowances and adjustments for the fiscal year.

Appointment of auditor

(3) The Board of Management shall appoint an auditor.

Report of auditor

(4) The auditor shall make a report to the Legislative Assembly on the financial statements referred to in paragraph (1)(b) stating

(a) whether, in the opinion of the auditor, the financial statements comply with subsection (2);

(b) whether, in the opinion of the auditor, proper books of account have been kept in respect of the Fund;

(c) whether, in the opinion of the auditor, the transactions made in respect of the Fund comply with this Act; and

(d) any other matter within the scope of the auditor’s examination that should, in his or her opinion, be brought to the attention of the Legislative Assembly.

Powers of auditor

(5) The auditor may

(a) inspect at any reasonable time any record, document, book, account or voucher relating to the Fund, and

(b) require any person administering the Fund or engaged by the Board of Management under subsection 5(1) or (2) to provide any explanation or information,

that the auditor considers necessary to enable him or her to make a report under subsection (4). S.N.W.T. 1999, c.22,s.113(3); S.N.W.T. 2002,c.4,s.23; S.N.W.T. 2011,c.12,s.18.

REGULATIONS

Regulations

22.

The Speaker, on the recommendation of the Board of Management, may make regulations

(a) respecting the funding of allowances and adjustments payable under this Act;

(b) respecting the manner in which the Fund is to be administered;

(c) prescribing forms that may be necessary for the administration of this Act;

(c.1) respecting fees that may be charged by the Board of Management for services provided under this Act;

(d) respecting the calculation of the following:

(i) the actuarial present value of the basic allowance under subsection 17(2),

(ii) the actuarial present value of the allowance under section 17.1,

(iii) the actuarial equivalent of the allowance under subsection 19(2);

(e) respecting the registration of members and their spouses and any changes to or deletion of a registration;

(e.1) respecting the designation of a beneficiary under subsection 17.2(1), and the revocation of a designation;

(e.2) respecting elections that may be made by a member under subsection 19(1) and 20(1);

(e.3) respecting the information to be provided by a member for the purpose of the administration of this Act or the Fund;

(f) setting out when every allowance and adjustment must be paid and when payment to a recipient must commence and cease and providing that, if a person receiving an allowance ceases to be entitled to the allowance, payment may be made in respect of the full month in which that person ceases to be entitled to the allowance;

(g) providing, where a person receiving an annual allowance is incapable of managing his or her affairs, that the allowance may be paid to another person on his or her behalf;

(h) defining, for the purposes of this Act, the expression "full-time attendance at school or university" as applied to a child of a member or former member;

(i) specifying, for the purposes of this Act, the circumstances under which attendance at school or university by a child of a member or former member is deemed to be substantially without interruption;

(j) Repealed, S.N.W.T. 1998,c.31,Sch.A, s.5(b).

(k) Repealed, S.N.W.T. 2002,c.4,s.24(2).

(k.1) respecting the manner in which the aggregate value of allowances is to be calculated for the purposes of section 20;

(k.2) respecting the kinds of retirement savings plans to which the aggregate value of allowances may be transferred under section 20 or prescribing the kinds of such retirement savings plans by adopting provisions of the Pension Benefits Standards Regulations, 1985 made under the Pension Benefits Standards Act, 1985 (Canada);

(k.3) respecting the division and distribution of allowances under section 20.4 on or after the breakdown of a marriage or conjugal relationship outside marriage, including

(i) the information required to be contained in a court order or separation agreement in respect of the division or distribution of allowances,

(ii) the calculation of the value of the total pre-division benefit,

(iii) the conditions for the distribution of the share of a former spouse,

(iv) the adjustment of a member or former member’s share after a division or distribution of allowances, and

(v) the payment of an allowance to a child on the death of a member or former member; and

(l) for any other purpose considered necessary to give effect to this Act.

R.S.N.W.T. 1988,c.41(Supp.),s.16; S.N.W.T. 1998, c.4, s.9; S.N.W.T. 1998, c.31,Sch.A,s.5; S.N.W.T. 1999,c.22, s.113(3); S.N.W.T. 2002,c.4,s.24; S.N.W.T. 2011,c.12,s.4(1),19.

TRANSITIONAL

Definition: "previous Act"

23.

(1) For the purposes of sections 24 and 25, "previous Act" means the Council Retiring Allowances Ordinance, R.S.N.W.T. 1974,c.C-20.

Application of transitional provisions

(2) Sections 24 and 25 apply notwithstanding any other provision of this Act.

Recipient under previous Act

24.

(1) On November 1, 1982, any person in receipt of an allowance under the previous Act is deemed to be receiving an allowance under section 11 or 12, or both, or section 15 of this Act, as the case may be, in the amount to which that person was entitled under the previous Act.

Application of sections 15 and 18

(2) Notwithstanding subsection (1), sections 15 and 18 of this Act apply to any person referred to in subsection (1). S.N.W.T. 2011,c.12,s.4(1).

Persons entitled to allowance

25.

(1) On November 1, 1982, any member or former member who

(a) is not in receipt of an allowance under the previous Act but who is entitled to an allowance under that Act, and

(b) has not withdrawn his or her contributions made under the previous Act on ceasing to be a member,

is entitled to

(c) the allowance payable under the previous Act together with all rights and benefits accruing by virtue of the previous Act, and

(d) any further or additional rights, allowances or adjustments provided by this Act.

Deeming provision

(2) For the purposes of subsection (1), the allowance to which a person is entitled under the previous Act is deemed to be an allowance under section 11 or 12 of this Act, or both, as the case may be. S.N.W.T. 2002,c.4,s.25; S.N.W.T. 2011, c.12, s.4(1),20.