Legislative Assembly Retiring Allowances Regulations

Regulation

Registration: R-054-99
Source: Unofficial consolidation PDF (justice.gov.nt.ca)
Under: Legislative Assembly Retiring Allowances Act

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.

s.1 amended by R-054-99,s.2
s.1 amended by R-076-2011,s.2 in force Sept. 1, 2011
s.2 amended by R-076-2011,s.3 in force Sept. 1, 2011
s.3 amended by R-054-99,s.3
s.4 amended by R-054-99,s.4
s.4 amended by R-076-2011,s.4 in force Sept. 1, 2011
s.5 amended by R-054-99,s.5
s.6 amended by R-054-99,s.6,7
s.7 amended by R-054-99,s.8
s.8 amended by R-054-99,s.8
s.9 amended by R-054-99,s.8
s.9 amended by R-076-2011,s.5 in force Sept. 1, 2011
s.12 amended by R-054-99,s.9
s.12 amended by R-076-2011,s.6 in force Sept. 1, 2011
s.13 amended by R-054-99,s.9
s.13 amended by R-084-2009,s.2
s.13 amended by R-076-2011,s.6,7 in force Sept. 1, 2011
s.14 amended by R-054-99,s.10,11
s.14.1 amended by R-054-99,s.11
s.14.1 amended by R-076-2011,s.8 in force Sept. 1, 2011
s.14.2 amended by R-076-2011,s.8 in force Sept. 1, 2011
s.14.3 amended by R-076-2011,s.8. Adjustment of Member or Former Member’s Share in force Sept. 1, 2011
s.14.4 amended by R-076-2011,s.8 in force Sept. 1, 2011
s.14.5 amended by R-076-2011,s.8 in force Sept. 1, 2011
s.17 amended by R-054-99,s.12
s.17.1 amended by R-054-99,s.13
s.18 repealed by R-054-99,s.14
s.sched_1 repealed by R-054-99,s.15

Cites

s.14.1 Family Law Act

Cited by

None.

Contents

1. 1 2. 2 3. 3 4. 4 5. 5 6. 6 7. 7 8. 8 9. 9 10. Repealed 11. Repealed 12. 12 13. 13 14. 14 14.1. 14.1 14.2. 14.2 14.3. 14.3 14.4. 14.4 14.5. 14.5 15. 15 16. 16 17. 17 17.1. 17.1 18. Repealed SCHEDULE ANNEXE

INTERPRETATION

In these regulations,

"Act" means the Legislative Assembly Retiring Allowances Act; (Loi)

"Administrator" means the Board of Management or a person to whom the Board Management has delegated its powers of administration under subsection 5(1) of the Act. (administrateur) R-054-99,s.2; R-076-2011,s.2.

(1) Full-time attendance at a school or university means full-time attendance at a school, college, university or other educational institution that provides training or instruction of an educational, professional, vocational or technical nature and a child is deemed to be or to have been in full-time attendance at a school or university, substantially without interruption,

(a) during an absence by reason of a scholastic vacation

(i) where immediately after such vacation the child resumes full-time attendance at a school or university in the next ensuing academic year;

(ii) where it is determined by the Administrator that the child cannot comply with subparagraph (i) by reason of illness or any other cause that the administrator considers reasonable, where the child begins or resumes full-time attendance at a school or university at any time during the academic year immediately following the scholastic vacation; or

(iii) where it is determined by the Administrator that the child cannot comply with subparagraph (i) or (ii), if he or she begins or resumes full- time attendance in the academic year following that referred to in subparagraph (i); and

(b) during an absence occurring in an academic year by reason of illness or any other cause that the Administrator considers reasonable, where, immediately after the absence, the child begins or resumes full-time attendance at a school or university in that academic year or where it is determined by the Administrator that the child is unable to do so, where he or she begins or resumes full-time attendance in the next academic year.

(2) Where the absence of a child by reason of illness commences after he or she has begun an academic year and it is determined by the Administrator, on evidence satisfactory to the Administrator, that by reason of such illness it is not possible for the child to resume full-time attendance at a school or university, that child is, notwithstanding paragraph (1)(b), deemed to have been in full-time attendance substantially without interruption at a school or university until the end of the academic year. R-076-2011,s.3.

ADMINISTRATION

The Administrator shall notify a former member of changes to the Act or these regulations that affect the rights or entitlements of the former member within 90 days after the changes are made. R-054-99,s.3.

The Administrator may make investments from the money in the Fund but such investments shall be restricted to

(a) those investments permitted under the Pension Benefits Standards Act, 1985 (Canada) and the regulations made under that Act; and

(b) insurance and annuity contracts effected with an insurance company registered to transact the business of insurance under the Insurance Companies Act (Canada).

R-054-99,s.4; R-076-2011,s.4.

(1) All allowances and benefits shall be funded on the basis of an actuarial valuation prepared as at April 1 in the year immediately following each general election.

(2) The actuarial valuation referred to in subsection (1) shall be prepared in accordance with the recommendations of the Canadian Institute of Actuaries and generally accepted actuarial principles. R-054-99,s.5.

GENERAL

Registration, Designations and Elections

(1) Every member shall register with the Administrator by sending to the Administrator, within 90 days of becoming a member, a completed registration in the form provided by the Administrator.

(2) The registration shall be accompanied by proof of age of the member which is satisfactory to the Administrator. R-054-99,s.6,7.

A member or former member may, in the form provided by the Administrator, designate a beneficiary or revoke the designation of a beneficiary. R.R.N.W.T. 1990,c.L-9(Supp.),s.2; R-054-99,s.8.

A member or former member may, in the form provided by the Administrator, register his or her common-law spouse or revoke the registration of his or her common-law spouse. R.R.N.W.T. 1990, c.L-9(Supp.),s.2; R-054-99,s.8.

(1) A qualifying member shall, without delay on becoming a qualifying member, send to the Administrator the information required by the Administrator.

(2) On receipt of the information referred to in subsection (1), the Administrator shall provide the qualifying member with the following:

(a) the amount of the allowance payable and the date or event on which it will commence being payable;

(b) a statement that a member who ceases to be a member may make an election under subsection 19(1) of the Act and explaining what that means;

(c) a statement that a member who ceases to be a member after December 31, 1997 may make an election under subsection 20(1) of the Act and explaining what that means;

(d) such other information as the Administrator considers appropriate;

(e) a form on which the qualifying member may make the elections referred to in paragraphs (b) and (c).

(3) A member or former member who wishes to commence an allowance under subsection 19(1) of the Act or take a transfer under subsection 20(1) of the Act shall complete a form provided by the Administrator, but no election under subsection 19(1) or 20(1) of the Act shall be effective if the form is not completed and returned to the Administrator within 90 days after its delivery to the member or former member.

(4) A former spouse who wishes to receive a benefit under subsection 14.3(2) shall complete a form provided by the Administrator, but no election under that subsection is effective unless the conditions set forth in that form and in subsection 14.1(6) are met.

(5) In this section, "qualifying member" means a qualifying member as defined in subsection 11(1) or 12.1(1) of the Act, as the case may be. R.R.N.W.T. 1990,c.L-9(Supp.),s.2; R-054-99,s.8; R-076-2011,s.5.

10.

Repealed. R.R.N.W.T. 1990,c.L-9(Supp.),s.2.

11.

Repealed. R.R.N.W.T. 1990,c.L-9(Supp.),s.2.

Calculation of Lump Sum

12.

The actuarial equivalent of the basic allowance referred to in subsection 17(2) of the Act and the actuarial present value of the allowance referred to in section 17.1 of the Act shall be calculated in accordance with the Canadian Institute of Actuaries Standard of Practice for Determining Pension Commuted Values. R-054-99,s.9; R-076-2011,s.6.

Transfer of Aggregate Value to RRSP

13.

(1) The aggregate value of the allowances payable under the Act, referred to in subsection 20(1) of the Act, shall be calculated in accordance with the Canadian Institute of Actuaries Standard of Practice for Determining Pension Commuted Values.

(2) The prescribed kinds of registered retirement savings plans referred to in paragraph 20(1)(b) of the Act are those referred to in section 20 of the Pension Benefits Standards Regulations, 1985 made under the Pension Benefits Standards Act, 1985 (Canada), and the relevant definitions in subsection 2(1) of the Pension Benefits Standards Regulations, 1985 are hereby adopted for the purposes of this subsection.

(3) Where, pursuant to paragraph 20(1)(a) of the Act, a member who has not attained 55 years of age elects to transfer all or part of the aggregate value of the allowances payable under the Act to a registered retirement savings plan, the consent of the member’s spouse must first be obtained in writing in a form approved by the Board of Management. R.R.N.W.T. 1990,c.L-9(Supp.),s.3,4; R-054-99,s.9; R-084-2009,s.2; R-076-2011,s.6,7.

Payment of Allowances and Benefits

14.

(1) Every allowance and benefit shall

(a) be payable monthly in advance; and

(b) commence on the first day of the month immediately following the day on which the person becomes eligible or,

(i) where the person becomes eligible on the first day of a month, that day, or

(ii) where a former member elects to receive an allowance before retirement age, the first day of the month immediately following the day on which he or she so elects.

(2) Except as provided in the Act, every allowance and benefit shall cease on the last day of the month in which the death of the recipient occurs.

(3) In this section, "retirement age" means,

(a) in respect of service before January 1, 1992, 55 years of age; and

(b) in respect of service after December 31, 1991, pensionable age.

R-054-99,s.10,11.

Court Orders and Separation Agreements

14.1.

(1) On receipt of a written request for information concerning a member or former member’s entitlement to an allowance by or on behalf of a spouse or former spouse of the member or former member, and stating that a breakdown of the relationship between them has occurred, the Administrator shall make available to the spouse or former spouse such information related to the member or former member’s allowance as would be available on request to the member or former member.

(2) On receipt of a court order or separation agreement from a member or former member or his or her former spouse that requires a division of a member or former member’s allowance, the Administrator shall make available to the former spouse all information referred to in subsection (1), and shall treat the former spouse as if he or she were a member or former member with the rights to information, services and benefits set out in the Act and these regulations.

(3) A court order or separation agreement referred to in subsection (2)

(a) must contain the following information:

(i) the dates when the period of joint accrual of the benefit began and ended for the purposes of the Family Law Act, and any breaks during such period,

(ii) the percentage of the value of the allowance to be used to determine the former spouse’s share in respect of the period referred to in subparagraph (i);

(b) shall not require or permit any method or timing of calculation or distribution of the former spouse’s entitlement that is not permitted by the Act or these regulations.

(4) A court order or separation agreement referred to in subsection (2) that requires a division of a member or former member’s entitlement to an allowance that has not yet commenced to be paid, may provide that the former spouse

(a) must take a transfer of his or her share,

(b) must take his or her share in the form of a monthly pension payable for his or her lifetime;

(5) Subject to subsection (6), a court order or separation agreement that does not address the options described in paragraphs (4)(a), (b) or (c) is deemed to give the former spouse the option described in paragraph (4)(c).

(6) Notwithstanding the terms of any court order or separation agreement to the contrary, no former spouse may take a transfer of his or her share unless the court order or separation agreement has been provided to the Administrator within two years after its effective date, and the election has been made in the form and within the period provided for in these regulations.

(7) If, on receipt of a court order or separation agreement, including one that purports to contain the information described in subsections (3) and (4), the Administrator is unable to comply with it because it is incomplete, does not comply with section 20.4 of the Act or the provisions of these regulations, or there is doubt as to what measures the Administrator must take to comply with it, the Administrator may apply to the court for a remedy on seven days’ notice or such shorter period as the court may permit. R-054-99,s.11; R-076-2011,s.8.

Calculation of Divided Benefits

14.2.

(1) The value of each of the total entitlement, total pre-division benefit, former spouse’s share and member or former member’s share is, for the purposes of subsection 20.4(4) of the Act, to be calculated in the manner set out in this section.

(2) The total entitlement shall be equal to:

(a) if the person whose allowance is to be divided is no longer a member at the time the Administrator receives the court order or separation agreement and had never become a qualifying member as defined in the Act prior to ceasing to be a member, the value of his or her contributions made under the Act, if any, with interest, calculated as at the end date referred to in subparagraph 14.1(3)(i);

(b) if the person whose allowance is to be divided is a former member who had become a qualifying member as defined in the Act prior to ceasing to be a member, or is a member and a qualifying member at the time the Administrator receives the court order or separation agreement, and the court order or separation agreement requires that the former spouse take a transfer of his or her share, or if the former spouse may elect to take a transfer, the commuted value of the allowance;

(c) if the person whose allowance is to be divided is a member at the time the Administrator receives the court order or separation agreement but is not a qualifying member as defined in the Act, and the court order or separation agreement requires that the former spouse take a transfer of his or her share, or if the former spouse may elect to take a transfer, either

(i) if the member subsequently becomes a qualifying member, the commuted value of the allowance, or

(ii) if the member ceases to be a member without becoming a qualifying member, an amount calculated as soon as the member ceases to be a member as at the end date referred to in subparagraph 14.1(3)(a)(i) in the manner described in paragraph (a); or

(d) in all other cases, the actuarial present value of the allowance.

(3) The total pre-division benefit is to be calculated at the same time as the total entitlement, according to the following formula:

D where

(a) A is the total pre-division benefit,

(b) B is the total entitlement determined in accordance with subsection (2),

(c) C is the period between the beginning and end dates during which the allowance was accruing referred to in subparagraph 14.1(3)(a)(i), and

(d) D is the period during which the total entitlement accrued.

(4) The former spouse’s share is to be calculated at the same time as the total entitlement, and shall be the total pre-division benefit multiplied by the percentage of it awarded or given to the former spouse in the court order or separation agreement.

(5) The member or former member’s share is to be calculated at the same time as the total entitlement, and shall be the total pre-division benefit reduced by the former spouse’s share as determined under subsection

(4) and further adjusted under section 14.4, if applicable.

(6) The aggregate of the actuarial present values of the shares of the member or former member and the former spouse must equal the actuarial present value of the total pre-division benefit.

(7) Except as provided in paragraph (2)(c) and subject to subsection 14.1(7), the amounts calculated under this section must be calculated without delay following the Administrator’s receipt of the court order or separation agreement.

(8) If a court order or separation agreement provides that a former spouse may elect between a transfer of his or her share or a monthly pension payable for his or her lifetime, or if the former spouse is deemed to have such an election under subsection 14.1(5), separate calculations of the total entitlement, total pre-division benefit, former spouse’s share and member or former member’s share shall be made in respect of such former spouse.

(9) The Administrator shall communicate the results of any calculations performed under this section to the member or former member and to the former spouse without delay after the calculations are concluded.

(10) A commuted value of an allowance calculated under this section must be determined in accordance with Section 3500 of the Standards of Practice of the Canadian Institute of Actuaries, as amended from time to time, and be calculated as at the end date referred to in subparagraph 14.1(3)(a)(i), and for greater certainty must

(a) include the value of death benefits and indexing benefits; and

(b) exclude

(i) the value of any partial transfer of the allowance under section 20 of the Act, and

(ii) the value of allowances payable to a child under section 15 of the Act.

(11) An actuarial present value of an allowance calculated under this section must be determined in accordance with the going concern assumptions in the most recent actuarial valuation prepared under subsection 4(6) of the Act, calculated as at the later of the end date referred to in subparagraph 14.1(3)(a)(i) and the date the member or former member ceases to be a member, and for greater certainty must

(a) include the value of death benefits and indexing benefits; and

(b) exclude

(i) the value of any partial transfer of the allowance under section 20 of the Act, and

(ii) the value of allowances payable to a child under section 15 of the Act.

R-076-2011,s.8.

A = B × C

Distribution of Benefits

14.3.

(1) The conditions prescribed for the purposes of subsection 20.4(5) of the Act are as set out in this section.

(2) Subject to subsection (3), once the former spouse’s share is calculated under section 14.2, it may be distributed as follows:

(a) if the person whose allowance is to be divided is no longer a member and had never become a qualifying member as defined in the Act prior to ceasing to be a member, the former spouse’s share may be distributed only by way of lump sum under section 7 of the Act, a transfer to the former spouse’s registered retirement savings plan or if permitted by the administrator of a registered pension plan in which the former spouse is a member, transferred to that plan;

(b) if the person whose allowance is to be divided is a member or former member who had become a qualifying member as defined in the Act prior to ceasing to be a member, and if the allowance is not in payment, and if

(i) the court order or separation agreement requires the former spouse to take a transfer of his or her share or the former spouse is permitted to elect to take a transfer and does so elect, the former spouse’s share will be transferred without delay to the former spouse’s registered retirement savings plan, or if permitted by the administrator of a registered pension plan in which the former spouse is a member, transferred to that plan, provided that if the former spouse has attained 55 years of age the transfer must be made on a locked-in basis, and further provided that the elections contemplated by this paragraph must be made and communicated to the Administrator in the forms provided by the Administrator within 90 days after the forms are provided to the former spouse; or

(ii) the court order or separation agreement requires the former spouse to take a monthly pension payable for his or her lifetime or if the former spouse may elect to take a transfer and does not so elect in the manner or within the 90 day period described in paragraph (b), the former spouse shall receive his or her share in the form of a monthly pension payable for his or her lifetime, with a guarantee of not less than 60 monthly payments, and commencing on the earlier of the date the member or former member ceases to be a member or dies, or such subsequent other date as the former spouse may elect, provided the commencement date is not later than the end of the calendar year in which the former spouse attains 71 years of age, and further provided that the elections contemplated by this subparagraph must be made and communicated to the Administrator in the forms provided by the Administrator within 90 days after their delivery to the former spouse;

(c) if the person whose allowance is to be divided is receiving an allowance at the time of division, the former spouse will receive his or her share in the form of a monthly pension commencing immediately for his or her lifetime, with a guarantee of not less than 60 monthly payments, starting from the date of commencement of the former member’s allowance.

(3) If the former spouse’s share is distributed in the manner described in paragraph (2)(a) or subparagraph (2)(b)(i), the former spouse’s share must be adjusted with interest from the end date specified in the court order or separation agreement as referred to in subparagraph 14.1(3)(a)(i) to the date of distribution.

(4) For purposes of this section, a registered retirement savings plan and registered pension plan have the meanings assigned in subsection 248(1) of the Income Tax Act (Canada). R-076-2011,s.8. Adjustment of Member or Former Member’s Share

14.4.

For the purposes of subsection 20.4(7) of the Act, the member or former member’s share may be adjusted on an actuarial basis so that the Fund neither gains nor loses based on the assumptions used to determine the share in subsection 14.2(2) as a consequence of the division of the member or former member’s allowance. R-076-2011,s.8.

Provision for Child

14.5.

The allowances payable to a child following the death of a member or former member shall not be affected by a division under section 20.4 of the Act and these regulations, and shall be paid to an eligible child in accordance with section 15 of the Act as if no such division had occurred, and if the former spouse is alive following the death of the member or former member, as if the former spouse was entitled to a survivor allowance under section 15 of the Act derived from the member or former member’s allowance. R-076-2011,s.8.

15.

There shall be submitted to the Administrator, in support of each claim that a child who has attained the age of majority

(a) is or has been enroled in a course requiring full-time attendance substantially without interruption at a school or university, a declaration in a form satisfactory to the administrator and signed by a responsible officer of that school or university, certifying as to such enrolment; and

(b) is or has been for a period of time, in full- time attendance at a school or university substantially without interruption, a declaration of this attendance in a form satisfactory to the Administrator and signed by the child.

16.

Where the Administrator is of the opinion that a person who is in receipt of an allowance or benefit under the Act is incapable of managing his or her affairs and no person is authorized by law to act as committee of his or her estate, the Administrator may authorize payment of the allowance to the spouse of the recipient, or to a solicitor, banker or other agent of the recipient on his or her behalf until the recipient is, in the opinion of the Administrator, again capable of managing his or her affairs or a person is authorized to act as a committee of his or her estate, whichever first occurs.

17.

A member or former member shall immediately notify the Administrator, in the form provided by the Administrator, of any changes in respect of his or her marital status, number of children or any appointment as a member of the Legislative Assembly that would affect his or her pensionable remuneration. R.R.N.W.T. 1990,c.L-9(Supp.),s.5; R-054-99,s.12.

17.1.

(1) A former member shall, within a reasonable time, notify the Administrator in the form provided by the Administrator of a change of address.

(2) The representative of a former member shall, within a reasonable time, notify the Administrator in the form provided by the Administrator of the death of the former member. R.R.N.W.T. 1990,c.L-9(Supp.), s.6; R-054-99,s.13.

18.

Repealed, R-054-99,s.14.

SCHEDULE

Repealed, R-054-99,s.15.

ANNEXE

Abrogé, R-054-99,