Bill 169, MPPs Pension Plan Study Act, 2002

Versions

Bill 169 2002

An Act to provide
for studying the establishment
of a pension plan for members
of the Legislative Assembly

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definitions

1. In this Act,

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

"pension plan" means the pension plan set out in the report mentioned in clause 2 (1) (b); ("régime de retraite")

"pension plan commencement date" means the commencement date described in paragraph 2 of subsection 2 (2). ("date d'effet du régime de retraite")

Report on pension plan

2. (1) No later than 90 days after the day on which this Act comes into force, the Integrity Commissioner appointed under the Members' Integrity Act, 1994 shall,

(a) determine whether it is appropriate, as part of the compensation paid to members for serving as members or ministers or for performing any duty with respect to the Assembly, for Ontario to establish a defined benefit pension plan that would pay allowances to eligible beneficiaries under the plan after a member ceases to serve in the Assembly and that complies with the requirements of subsection (2);

(b) prepare a report setting out the determination, the reasons for it and, if the Commissioner determines under clause (a) that it is appropriate for Ontario to establish a defined benefit pension plan, describing its contents and all steps required to implement it; and

(c) deliver a copy of the report to the Speaker who, at the first opportunity, shall cause it to be tabled in the Assembly and published in The Ontario Gazette.

Contents of pension plan

(2) The pension plan shall provide as follows:

1. The pension plan shall be established as of June 8, 1995.

2. No allowances shall be paid from the pension plan until a commencement date which shall not be before 180 days after the polling day in the next general election held under the Election Act after the day this Act comes into force, nor later than March 31, 2005.

3. No allowances shall be paid from the pension plan to any person with respect to a member unless,

i. the member has attained the age of 55 years, and

ii. the member has elected to contribute to the pension plan by giving the notice required by it,

A. within 180 days of the day on which this Act comes into force, whether or not the member was a member at the time of making the election, if the member was first elected to the Assembly before that day,

B. within 180 days of the pension plan commencement date, whether or not the member was a member at that date, if the member was first elected to the Assembly on or after the day on which this Act comes into force but before the pension plan commencement date, or

C. within 90 days of the day on which the member was first elected to the Assembly, if the member was first elected to the Assembly on or after the pension plan commencement date.

4. A member who elects to contribute to the pension plan shall contribute, in accordance with the plan, 9 per cent of the salary that the member received for serving as a member or minister or for performing any duty with respect to the Assembly after June 8, 1995 until the pension plan commencement date, plus reasonable interest from the time of receiving the salary to the time of making the contribution. The contribution shall be payable on the pension plan commencement date or whatever date or dates are set out in the plan.

5. A member who elects to contribute to the pension plan shall make an annual contribution, in accordance with the plan, of 9 per cent of the annual salary that the member receives for serving as a member or minister or for performing any duty with respect to the Assembly on or after the pension plan commencement date. The contributions shall begin on the later of the pension plan commencement date and the date on which the member is elected to the Assembly.

6. After the polling day in the next general election held under the Election Act after the day this Act comes into force and no later than 90 days before the pension plan commencement date, the Integrity Commissioner shall,

i. review the salary paid to members of the Assembly under the Legislative Assembly Act,

ii. determine the appropriate salary for members, while considering the value of their entitlement to allowances under the pension plan, and

iii. prepare a report for the purpose of subsection 61 (1.2) of the Legislative Assembly Act that sets out the salary so determined.

7. Subsection 61 (1.3) of the Legislative Assembly Act applies to the report described in paragraph 6. The change in members' salary under that Act resulting from the determination in the report takes effect on the pension plan commencement date.

8. Section 61 of the Legislative Assembly Act is amended to require the Integrity Commissioner to consider the value of members' entitlement to allowances under the pension plan when determining the appropriate salary for members and setting out that salary in a report made under subsection 61 (1.2) of that Act after the pension plan commencement date.

9. There shall be paid from the Consolidated Revenue Fund to the fund established for the pension plan an amount sufficient to cover all allowances payable from the pension plan to all persons who are entitled to them under the plan with respect to the period from June 8, 1995 to the pension plan commencement date during which a member served as a member.

10. One-third of the amount described in paragraph 9, less the contributions of members under paragraph 4, shall be recovered from the annual salary payable to members as members on or after the pension plan commencement date, in equal shares in each year for 15 years starting on the pension plan commencement date.

11. Two-thirds of the amount described in paragraph 9, less the contributions of members under paragraph 4, shall be recovered from the money appropriated annually for the purposes of the Legislative Assembly Act, in equal shares in each year for 15 years starting on the pension plan commencement date.

12. The MPPs Pension Act, 1996 is repealed on the pension plan commencement date. The current amount in the member's registered plan account and supplementary plan account under that Act shall be paid out to the member in accordance with the pension plan.

13. The pension plan shall deal effectively with all other matters required to meet the requirements set out in this section for the pension plan.

Contractors

3. The Integrity Commissioner may contract for the services of persons whom the Commissioner considers necessary or desirable to fulfil his or her obligations under this Act, including persons to provide actuarial, legal or other professional assistance.

Commencement

4. This Act comes into force on the day it receives Royal Assent.

Short title

5. The short title of this Act is the MPPs Pension Plan Study Act, 2002.

EXPLANATORY NOTE

The Bill requires the Integrity Commissioner appointed under the Members' Integrity Act, 1994, within 90 days of the day on which the Bill comes into force, to determine and report whether it is appropriate, as part of the compensation paid to members of the Assembly for serving as members or ministers or for performing any duty with respect to the Assembly, for Ontario to establish a defined benefit pension plan that would pay allowances to eligible beneficiaries under the plan after a member ceases to serve in the Assembly. If so, the report must describe the contents of the pension plan and all steps required to implement it. The Integrity Commissioner must submit the report to the Speaker of the Assembly.

The pension plan would be established as of June 8, 1995 and allowances could be paid out under it, starting on a date no earlier than 180 days after the date of the next general election to the Assembly after the Bill comes into force and no later than March 31, 2005.

The MPPs Pension Act, 1996 is repealed on the commencement date of the pension plan.