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[Updated to November 2, 1999]
Contents
Section | ||
1 (1) In this Act:
"actuary" means a person who is a Fellow of the Canadian Institute of Actuaries and who is engaged by the board as actuary under section 41;
"approved employer" means one of the following:
(a) an employer to whom the Public Service Superannuation Act (Canada) applies;
(b) an employer to whom the Pension (Municipal) Act applies;
(c) the government;
(d) an institution under the College and Institute Act and a college established under the School Act;
(e) the University of British Columbia, the University of Victoria and Simon Fraser University;
(f) Notre Dame University;
(g) Acadia University;
(h) the British Columbia Hydro and Power Authority;
(i) an employer to whom the Teachers Retirement Fund Act (Alberta) applies;
(j) an employer to whom the Teachers Pensions Act (Manitoba) applies;
(k) an employer to whom the Teachers Superannuation Act (Ontario) applies;
(l) an employer to whom the Teachers Pensions Plan (Quebec) applies;
(m) an employer to whom the Teachers Superannuation Fund Act (Saskatchewan) applies;
(n) an employer who has been declared to be an approved employer by order of the minister;
"approved group disability salary continuance plan" means a plan approved by the minister for this Act;
"associated professional" or "certified professional" means a person who is an active member of the British Columbia Teachers Federation and employed by a board of school trustees to provide professional support to the educational program provided by the board;
"benefit" means a pension or any other entitlement payable under this Act, and includes a return of contributions and any payment in a series of payments;
"board" means the Teachers Pension Board continued under this Act;
"board of school trustees" means a Board of School Trustees continued under the School Act;
"Canada Pension Plan" means the Canada Pension Plan (Canada);
"capitalized value" means, in relation to a pension or part of a pension, the capital value of the pension or part of the pension calculated in accordance with the regulations;
"commissioner" means the commissioner of teachers pensions appointed under this Act;
"commuted value" means, in relation to a benefit that a person has a present or future entitlement to receive under this Act, the actuarial present value of the benefit determined on the basis of actuarial assumptions and methods specified by the board;
"consumer price index" means the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act (Canada), used for calculating the amount of a benefit payable under this Act and, if the Consumer Price Index for Canada is adjusted to reflect a new time basis or a new content basis, includes a corresponding percentage adjustment in the consumer price index;
"contributor" means a person, other than an employer, to whom this Act applies who is required or permitted to contribute to the fund and who makes contributions to the fund and includes a person who has ceased to contribute to the fund so long as that person is eligible for a benefit and so long as a benefit is being paid;
"contributory service" means the period for which an employee makes, or is deemed to make, contributions and is entitled to accumulate credit towards a pension and, in the case of an employee who is paid an annual salary over a 10 month period, the 10 months are considered one year;
"defined benefit limit" has the same meaning as in section 8500 (1) of the Income Tax Regulations under the Income Tax Act (Canada);
"dependant" means a dependant as defined in section 118 (6) of the Income Tax Act (Canada);
"employee" means a person to whom this Act applies, including a person who is receiving a monthly income benefit under an approved group disability salary continuance plan, other than a board of school trustees, a francophone education authority, an official trustee or the British Columbia Teachers Federation;
"employer" means the person directly or indirectly responsible for the payment of the salary of the employee, and includes the following:
(a) a board of school trustees or a francophone education authority;
(b) official trustees;
(c) the British Columbia Teachers Federation;
(d) the Teacher Qualification Service;
(e) the College of Teachers;
"former Act" means the Teachers Pensions Act, R.S.B.C. 1960;
"francophone administrative officer" has the meaning assigned to it by the School Act;
"francophone education authority" has the meaning assigned to it by the School Act;
"fund" means the Teachers Pension Fund continued under section 4;
"highest average salary" has the meaning assigned to it in section 15;
"pension" means the total monthly annuity or allowance payable under Part 3;
"pension index" means, for any one year, the average of the consumer price index over a 12 month period ending on December 31 in that year;
"pensionable age" means 60 years of age;
"pensionable service" has the meaning assigned to it in section 9;
"RRSP" means a retirement savings plan that is within the meaning of the Income Tax Act (Canada) and that is registered under that Act;
"salary" means the basic salary received from the employer, and includes the allowance paid by the employer for supervisory or administrative duties or special qualifications and any other allowance which, in accordance with regulations under this Act, may be included in salary;
"school year" has the meaning assigned to it by the School Act;
"service" means service in the employment of an employer;
"spouse" has the same meaning as in section 1 (1) and (2) of the Pension Benefits Standards Act;
"supplemental benefits allowance" means the total monthly annuity or allowance payable under Part 4;
"teacher" has the meaning assigned to it by the School Act and includes an administrative officer, a francophone administrative officer and a francophone teacher, as those terms are defined in the School Act;
"termination of membership" means,
(a) in the case of an employee who is covered by a collective agreement,
(i) the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor’s behalf, and
(ii) the cessation of seniority rights under the collective agreement,
(b) in the case of an employee who is not covered by a collective agreement, the cessation by the contributor of employment for which the employer is required by this Act to make contributions on the contributor’s behalf, or
(c) in the case of a contributor who is entitled to a disability benefit and whose contributions to the fund have been discontinued because of that entitlement, the cessation of entitlement to disability benefits;
"totally and permanently disabled" means, in relation to a person, to be suffering from a mental or physical condition that
(a) prevents the person from engaging in any employment for which the person is reasonably suited by virtue of the person’s education, training or experience, and
(b) can reasonably be expected to last for the remainder of the person’s lifetime;
"trustee" means trustees appointed under section 42;
"year’s maximum pensionable earnings" means the year’s maximum pensionable earnings as defined in the Canada Pension Plan;
"years of continuous employment" means years of employment for a continuous period with an employer including any breaks in employment of up to 26 weeks, but does not include any period in respect of which the member has received a benefit unless that benefit has been reinstated under section 25 or the regulations.
(2) If an employee receives salary during a school year, part of which is paid on a 10 month installment basis and part on a 12 month basis, the total salary must be adjusted to a 12 month basis.
2 (1) This Act applies to the following:
(a) a board of school trustees, a francophone education authority or an official trustee in respect of a teacher to whom this Act applies and who is employed in the service of that board, authority or trustee;
(b) a person to whom the former Act applied on December 31, 1960 and a teacher, associated professional and certified professional appointed by a board of school trustees or a francophone education authority after the coming into force of this Act, except one who is engaged in a capacity of less than half time, but a person who is excepted under this paragraph may elect to have this Act apply by making application in writing to the commissioner;
(c) the British Columbia Teachers Federation and those employees of it who are employed on a permanent basis and designated by the British Columbia Teachers Federation;
(d) a person employed by a board of school trustees or a francophone education authority to whom this Act is declared to apply by order of the Lieutenant Governor in Council;
(e) the Teacher Qualification Service and those employees of it who are employed on a permanent basis and designated by the Teacher Qualification Service and whose eligibility has been approved by the board;
(f) a teacher who is employed by the Ministry of Education in an establishment under the jurisdiction of the Department of National Defence of Canada and to whom this Act is declared to apply by the Lieutenant Governor in Council;
(g) a teacher who is appointed as a superintendent or assistant superintendent by a board of school trustees or as a chief executive officer or assistant to the chief executive officer of a francophone education authority;
(h) the College of Teachers and those employees of it who are employed on a permanent basis and designated by the College of Teachers and whose eligibility has been approved by the board.
(i) the B.C. Principals and Vice Principals Association and the B.C. School Superintendents Association and those employees of them who are employed on a permanent basis and designated by the respective employer.
(2) On application for exemption from an employee, the board may exempt the employee from making contributions under this Act if the employee is making contributions to some other pension fund for teachers during a period of temporary absence of not more than 3 school years.
(3) When this Act begins to apply to an employee, the Act is deemed to continue to apply to that employee until termination of membership.
3 (1) For the purpose of this Act, a subsisting pension or other allowance or pension granted under the provisions of the former Act is deemed to be a pension granted according to its terms under the corresponding provisions of this Act, subject only to the variations that are expressly provided under this Act.
(2) Pensions granted after July 1, 1960, except those recalculated under section 4 (2) and (3) of the Teachers Pensions Act, 1961, S.B.C. 1961, c. 62, must be recalculated as if the provisions of this Act had been in force on the date on which the pension was granted.
4 (1) The Teachers Pension Fund is continued and must be maintained.
(2) The fund consists of all money received by the commissioner under this Act including the following:
(a) the contributions made by and on behalf of employees;
(b) the contributions made by and on behalf of employers;
(c) interest accruing from the investment of any of the money referred to in this subsection.
(3) The fund is divided into the following 4 accounts:
(a) the basic account;
(b) the inflation adjustment account;
(c) the supplemental benefits account;
(d) the retirement annuity account.
(4) The basic account consists of all the assets of the fund other than assets in the inflation adjustment account, the supplemental benefits account and the retirement annuity account.
(5) The inflation adjustment account consists of
(a) contributions made under section 5 (1) (c) less amounts allocated for the payment of premiums for prescribed group benefit entitlements, and contributions made under section 7 (1) (c),
(b) net interest earned on the inflation adjustment account, and
(c) income that is
(i) earned on other fund assets held in the basic account in respect of pensions being paid, and
(ii) in excess of the interest anticipated in the most recent actuarial valuation under section 41,
as determined by the commissioner,
less
(d) amounts transferred to the basic account under section 18,
(e) amounts refunded to an employee under this Act in respect of contributions made under section 7 (1) (c) or transferred out of the fund in accordance with this Act, in respect of contributions made under sections 5 (1) (c) and 7 (1) (c),
(f) amounts, as determined by the commissioner, in respect of a commuted value payment made to an employee or otherwise transferred out of the fund in accordance with section 21 (2) (b) or (3) (b) or section 23 (3), and
(g) amounts transferred to the supplemental benefits account in accordance with subsection (6) (d) of this section.
(6) The supplemental benefits account consists of
(a) contributions to the fund provided for in Part 4,
(b) net interest earned on the supplemental benefits account,
(c) amounts from contributions under section 5 (1) (b) determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of benefits provided for in Part 4 but excepting inflation protection under section 28,
(d) amounts from contributions under 5 (1) (c) determined by the commissioner as necessary to cover any annual shortfall between current assets in the supplemental benefits account and the cost of providing inflation protection under section 28,
(e) funds received from Revenue Canada under the administration of this account, and
(f) other amounts that may be prescribed by the Lieutenant Governor in Council.
(7) The retirement annuity account consists of
(a) voluntary contributions made before January 1, 1993 under section 6 (2) of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on December 31, 1992,
(b) contributions made under section 15 (2) (b) (ii), and
(c) interest on those contributions.
(8) An individual record in which contributions to the fund must be recorded must be maintained for each employee.
(9) Benefits and disbursements payable under this Act must be paid from the fund and, for this purpose, the fund must be considered as one and indivisible.
(10) The commissioner must keep an account of
(a) all contributions and money received and all money paid out under this Act, and
(b) all of the assets and liabilities of the fund.
5 (1) Each time an installment of an employee’s salary is paid, the employer must pay to the commissioner during the period on or after July 1, 1995 an amount equal to the sum of
(a) 8% of the employee’s cumulative salary that does not exceed the year’s maximum pensionable earnings,
(b) 9.5% of the employee’s cumulative salary that exceeds the year’s maximum pensionable earnings, and
(c) 1.13% of the employee’s entire salary.
(2) On requisition of the commissioner, the Minister of Finance and Corporate Relations must pay from the consolidated revenue fund to the fund the sums determined by the commissioner under section 12 (6).
6 (1) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 41, discloses that
(a) there has been an increase in the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll,
(b) the increase has occurred since the immediately preceding actuarial valuation, and
(c) the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll is greater than 50%,
then additional employer contributions as determined by the actuary as sufficient to
(d) meet the normal costs of the plan, and
(e) reduce the amount of the unfunded actuarial liability expressed as a percentage of payroll to 50% over a period of not more than 35 years,
must be paid to the fund in a manner prescribed by the Lieutenant Governor in Council.
(2) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 41, discloses that
(a) there has been an increase in the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll,
(b) the increase has occurred since the immediately preceding actuarial valuation, and
(c) the unfunded actuarial liability for the plan when measured on a statutory basis as a percentage of payroll is 50% or less,
then additional employer contributions as determined by the actuary as sufficient to
(d) meet the normal costs of the plan,
(e) hold the unfunded actuarial liability constant as a percentage of payroll, and
(f) amortize the identified increase in the unfunded actuarial liability over a period not exceeding 15 years,
must be paid to the fund in a manner prescribed by the Lieutenant Governor in Council.
(3) If an actuarial valuation, completed by an actuary in accordance with the requirements of section 41, discloses that
(a) a surplus has been created or an existing surplus has been increased, and
(b) the surplus or the increase has occurred since the immediately preceding actuarial valuation,
then employer contributions may be reduced by an amount determined by the actuary as sufficient to amortize the identified surplus or increase over a period of not less than 15 years.
7 (1) From each payment of salary made during a calendar year to an employee to whom this Act applies, unless that employee elects under section 25 (1) (c) not to contribute, the employer must deduct
(a) from the employee’s cumulative salary payable that is within the year’s maximum pensionable earnings, 5%,
(b) from the employee’s cumulative salary payable exceeding the year’s maximum pensionable earnings, 6.5%, and
(c) from the employee’s entire salary, 1%,
and the amounts deducted must be transferred by the employer to the fund as a contribution from the employee.
(2) Contributions made under subsection (1) must not exceed the maximums set out in section 8503 (4) of the Income Tax Regulations under the Income Tax Act (Canada).
(3) Contributions made under subsection (1) in respect of a calendar year must not be paid before January 1 of that year.
(4) Further deductions must not be made from an employee’s salary under subsection (1) when the employee has accrued 35 years of pensionable service.
(5) An employee whose contributions cease in accordance with subsection (4) is deemed to be a contributor making contributions for all other purposes of this Act.
(6) Retirement and the commencement of a pension must not be delayed beyond the end of the calendar year in which the contributor reaches the age of 69 years.
8 (1) If an employer has not made deductions under section 7 from the date an employee became eligible to contribute to the fund under this Act, the commissioner may order the employer
(a) to immediately make deductions, and
(b) to pay to the fund the amounts that should have been paid under section 5, together with interest at the rate provided for in section 23 (7).
(2) The employee may make contributions in respect of his or her period of service from the date of first becoming eligible to the date of the first deduction from his or her salary, together with interest at the rate provided for in section 23 (7).
(3) If both the employer and the employee make the contributions referred to in subsections (1) and (2), the period of service in respect of which contributions are made is pensionable service within the meaning of this Act.
(4) If only the employer portion is paid, 1/2 of the period of service in respect of which contributions by the employer have been made is pensionable service.
(5) The Limitation Act does not apply to
(a) contributions that an employer should have made under section 5, or
(b) deductions that an employer should have made under section 7.
(6) Subsection (5) is retroactive to the extent necessary to give it effect.
(7) This section applies to contributions for service that occurred before June 29, 1988.
9 (1) Subject to subsection (5), "pensionable service" of an employee means
(a) service credited to the employee under the former Act on December 31, 1960,
(b) service credited to the employee as a result of reinstatement under the regulations, and
(c) service under this Act during which contributions were made by the employee.
(2) Part time service must, for the purpose of determining the amount of a pension, be reduced to its full time equivalent, but, for the purpose of determining an employee’s eligibility for a pension, every calendar month in respect of which the employee has pensionable service must be counted as one month’s contributory service.
(3) The minister may, by regulation applicable generally or to specified classes of person, declare as pensionable service of an employee under this Act all or part of service
(a) as a member of Her Majesty’s Forces during the Second World War,
(b) as a member of the Canadian Armed Forces as defined in the National Defence Act (Canada),
(c) as a member of a Special Force constituted by the Minister of National Defence of Canada, and
(d) in any other force or service as the minister designates for the purpose of this Act,
but the employee is required to contribute to the fund any additional sums the minister requires.
(4) The Lieutenant Governor in Council may grant recognition as pensionable service under this Act to all or part of the service as an employee for an employer, whether or not the employer is an employer as defined in this Act, but the employee must contribute to the fund an additional sum specified by the Lieutenant Governor in Council.
(5) An employee receiving a monthly income benefit under an approved group disability salary continuance plan is not entitled to a pension under this Act, but the period during which the employee receives the monthly income benefit, during a period that the employee would have been employed had the employee not been receiving the monthly income benefit under an approved group disability salary continuance plan, is deemed to be pensionable service for the purpose of this Act.
(6) Despite any other provisions of this Act, the commissioner must determine the highest average salary of the employee to have been increased by the ratio that the pension index for the calendar year immediately before the calendar year in which the pension was granted bears to the pension index for the calendar year in which the employee last began to receive a monthly income benefit under the plan.
(7) For the purpose of section 20 (1) the employee is deemed to have made a contribution to the fund during each month for which the employee receives a monthly disability income benefit.
10 The minister may, by regulation applicable generally or to a specific class of persons, declare as pensionable service of an employee under this Act all or part of the service during which the employee was not eligible to make contributions under this Act, but in those cases the employee must contribute to the fund additional sums the minister specifies.
11 (1) For the purpose of sections 9 and 10, service before January 1, 1990 will only be recognized if the pension benefit for the year does not exceed 2/3 of the defined benefit limit for the year in which the benefits begin to be paid.
(2) Subsection (1) does not apply for a particular calendar year if
(a) a period in the particular year was pensionable service of the member under a registered pension plan at any time before June 8, 1990,
(b) the member was entitled, on June 7, 1990, under an arrangement in writing, to be provided with lifetime retirement benefits in respect of a period in the particular year, whether or not the entitlement was conditional on contributions being made under the provisions, and
(c) at the beginning of the year, a period in the preceding year was pensionable service of the contributor and the contributor was disabled or on leave of absence.
(3) For service after December 31, 1989, only service for which Revenue Canada certification of past service pension adjustment has been received will be eligible for reinstatement.
12 (1) Subject to section 23, an employee who, on or after January 1, 1996, retires, resigns or is dismissed from service is entitled, on application made by the employee, to a pension calculated under section 15, but only if the employee has
(a) reached the age of 55 years and the sum of the employee’s age plus years of contributory service is equal to not less than 90 years,
(b) reached the age of 60 years and has completed not less than 2 years of contributory service,
(c) completed less than 2 years of contributory service but, while making contributions, the employee reaches the age of
(i) 65 years, or
(ii) 60 years, but the 2% referred to in section 15 (2) (a) must be reduced by 5% of that amount for each year by which the employee’s age is less than 65 years, and the amount must be prorated for fractions of a year, or
(d) completed not less than 2 years of contributory service and, before reaching the age of 60 years, is totally and permanently disabled within the meaning of section 20 and is not receiving a monthly income benefit under an approved group disability salary continuance plan.
(2) If, on or after January 1, 1996, an employee retires, resigns or is dismissed from service and the employee
(a) has completed not less than 2 years of contributory service,
(b) enters, within 3 years after making his or her last contribution to the fund, the service of an approved employer and becomes qualified to receive a pension as the result of that service, but only if the aggregate period of pensionable service as an employee within the meaning of the pension plan of the approved employer and as an employee within the meaning of this Act is not less than 10 years, or
(c) was previously employed by an approved employer and, having ceased that employment not more than 3 years before becoming employed by an employer to whom this Act applies, becomes qualified to receive a pension as a result of that previous employment and has, as an employee within the meaning of the pension plan of the approved employer and as an employee within the meaning of this Act, an aggregate period of pensionable service of not less than 10 years,
the employee is entitled, on application, at his or her option,
(d) to receive a pension calculated in accordance with the provisions of this Act,
(e) to receive, after reaching the age of 55 years, a pension calculated under section 15, but the 2% referred to in section 15 (2) (a) must be reduced by 5% of that amount for each year of age by which
(i) the employee’s age is less than 60 years, and
(ii) the sum of the employee’s age and years of contributory service is less than 90 years,
whichever is the lesser, and the amount must be prorated for fractions of a year, or
(f) to receive a benefit in accordance with the provisions of section 23,
but if the employee has not received a benefit and dies before being granted a pension under this subsection, section 21 applies as if the employee had died in service.
(3) If, on or after July 1, 1994, an employee retires, resigns or is dismissed from service and while making contributions
(a) has reached the age of 55 years, and
(b) meets the service requirements specified by the board,
then the 5% reduction referred to in subsection (2) (e) is deemed to be 3%.
(4) If an employee who is employed by a board of school trustees, a francophone education authority or by an official trustee under the School Act
(a) resigns from service on or after April 1, 1987, with the effective date of the resignation not later than June 30, 1989,
(b) is, at the effective date of the resignation referred to in paragraph (a), not less than 55 years of age or, in the case of a resignation effective June 30, 1989, is 55 years of age on or before September 4, 1989, and
(c) has, at the effective date of the resignation referred to in paragraph (a), not less than 10 years of pensionable service,
the employee is entitled, on application, to receive a pension calculated under section 15, and subsection (2) (e) does not apply to that employee.
(5) Subsection (4) does not apply to
(a) a substitute teacher,
(b) a teacher who has been granted a leave of absence by a board of school trustees, a francophone education authority or an official trustee and has made or will be eligible to make contributions to the fund under the regulations, or
(c) a teacher who entered into an agreement, whether before or after April 1, 1987, with a board of school trustees under which the teacher agreed to resign in consideration of payment of an amount under an early retirement plan brought into effect by the board of school trustees before April 1, 1987, unless the teacher elects to rescind the agreement, repay the amount paid to the teacher under the agreement and apply under subsection (4).
(6) The commissioner must determine
(a) the additional cost to the fund resulting from the payment of a pension to an employee under subsection (4), and
(b) the amounts and the time at which additional payments must be made to the fund under section 5 (2).
(7) If an employee is employed by an employer other than a board of school trustees, a francophone education authority or an official trustee under the School Act and the employer wishes to make the provisions of subsection (4) available to the employer’s employees, the commissioner may enter into an agreement with the employer containing terms respecting the payment of additional contributions to the fund and other terms as the commissioner considers necessary and, on the execution of the agreement subsection (4) applies to the employer’s employees.
(8) For the purpose of subsection (2), a person is not considered absent from service if the person
(a) is a student in full time attendance at a university,
(b) is undergoing treatment for a war disability,
(c) is making contributions in accordance with the regulations,
(d) is in the service of one or more of the approved employers provided that person becomes or remains entitled to receive a pension as a result of that service,
(e) is in the service of Her Majesty’s Forces as described in section 9 (3), or
(f) is caring for a child of the employee while the child is under 7 years of age.
(9) If an employee is entitled to receive a pension under subsection (2), the commissioner must determine the highest average salary of the employee to have been increased by the ratio that the pension index of the earlier of
(a) the calendar year immediately before the calendar year in which the pension was granted, and
(b) the year ending December 31, 1980,
bears to the pension index of the calendar year in which the employee ceased to contribute, and the Lieutenant Governor in Council may make regulations prescribing the method of adjusting the highest average salary on or after December 31, 1980 until the pension is granted.
(10) If the highest average salary of an employee has been increased under subsection (9), the capitalized value of the increase in the employee’s pension resulting from the increase in his or her highest average salary must be transferred from the inflation adjustment account to the basic account.
(11) With the approval of the board, the commissioner may enter into an agreement by which
(a) a pension or refund is granted to an employee who, after the date specified in the agreement, transfers to the service of another employer, and
(b) the service of an employee who transfers from the service of another employer to the service of an employer under this Act may at the start of contributions to the fund, receive recognition for that service.
(12) The agreement may include the following:
(a) the conditions under which pensions or refunds may be granted and the amount of those benefits;
(b) the date on which payments are to be made;
(c) the rate of interest to be paid;
(d) the amount and recognition of service with other employers;
(e) any amounts that may be transferred to or from the fund in place of provision for deferred pension benefits;
(f) any other matters necessary to ensure equity between all contributors to whom this Act applies;
(g) conditions to facilitate the transfer of employees from one employer to another without loss of accrued privileges concerning the employee’s ultimate pension.
(13) Locked-in pension credits must not be transferred on behalf of a contributor to another employer’s pension plan unless the contributor and employer make written commitments that the locking-in conditions required by this Act will continue to apply to the credits.
12.1 (1) The employer may, by resolution, request that the commissioner waive or alter the combined age plus years of contributory service or the percentage reduction, or both, provided for in section 12 (1), (2) or (3) or section 23 (2), and the commissioner, after having first consulted with the board and subject to subsection (2), may make the waiver or alteration.
(2) The commissioner must, on request for a waiver or alteration under subsection (1), determine all of the following:
(a) the additional cost to the fund that results from the payment of a pension to an employee by the application of subsection (1);
(b) the amount and the time at which additional payments must be made to the fund by the employer;
(c) the class of employees to whom subsection (1) applies;
(d) the period of time during which subsection (1) applies;
(e) the conditions under which the combined age plus years of contributory service or percentage reduction, or both, is waived or altered.
13 (1) Section 17 of the former Act remains operative with respect to any person to whom, before the repeal of the former Act, payments were to become payable under the former Act, and all payments must be made from the fund.
(2) If an employee to whom subsection (1) is not applicable
(a) resigned, was dismissed or was otherwise retired from service before January 1, 1958,
(b) entered the service of an approved employer, and
(c) became qualified to receive a pension as a result of that service,
that employee is, on repaying to the fund the full amount of any refund received under the former Act, together with interest at the rate of 4% per year, or a higher rate as may be determined by the board, compounded annually, from the date of payment of the refund to the date of repayment, entitled to a pension
(d) calculated under section 15, and
(e) payable from and after the later of
(i) last day of the month in which repayment is made, and
(ii) the date of the employee’s retirement from the service of the approved employer.
14 [Repealed 1997-35-54.]
15 (1) For the purpose of this section, "highest average salary" of an employee who is entitled to a pension on or after July 1, 1973 is 1/12 of the average annual salary that the employee earned, or is deemed to have earned,
(a) during the 5 years of service before the date on which the employee’s pension was granted, and in which the employee received, or is deemed to have received, his or her highest salary, or
(b) during the employee’s actual period of pensionable service, if the employee’s period of pensionable service is less than 5 years.
(2) The amount of the monthly pension granted on or after July 1, 1971 on a single life plan referred to in section 16, is the sum of
(a) 2% of the employee’s highest average salary multiplied by the number of years of pensionable service not exceeding 35 years, reduced, at the age 65 years or at the date of death or disability, whichever is earlier, by an amount that is equal to the sum of
(i) 7/10 of 1% of the lesser of
(A) the employee’s highest average salary, and
(B) 1/12 the year’s maximum pensionable earnings for the calendar year immediately before the calendar year in which the pension is received by the employee,
multiplied by the number of years of pensionable service after January 1, 1966 not exceeding 35 years, and
(ii) any supplementary allowance provided with respect to an amount in paragraph (i), and
(b) an amount obtained by converting to a monthly allowance, in accordance with the prescribed tables,
(i) any accumulated contributions in excess of those required made by the employee to a retirement annuity under the former Act, together with interest credited on the accumulated contributions,
(ii) any accumulated contributions made by the employee to the retirement annuity account, before July 1, 1971, under this Act, and
(iii) the accumulated voluntary contributions made by the employee under section 6 (2) of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on December 31, 1992.
(3) Subject to subsections (4) and (5), for the purpose of calculating the highest average salary, if an employee for any reason did not work full time during the 60 months immediately before the date the employee began receiving a pension, the commissioner may, using a method of calculation determined by the board, use the salary from previous pensionable service, adjusted for inflation by a method determined by the board, to compensate for the period the employee was not working.
(4) Subsection (3) applies only if the highest average salary calculated under that subsection is greater than the highest average salary otherwise calculated under this Act.
(5) If an employee’s highest average salary is adjusted under section 9 (5) or 12 (9), subsection (3) of this section applies only for the purpose of calculating the highest average salary of the employee as follows:
(a) in the case of an employee to whom section 9 (5) applies, on the date the employee began receiving a monthly income benefit under an approved group disability salary continuance plan;
(b) in the case of an employee to whom section 12 (9) applies, on the date the employee’s service ended.
(6) The reference in subsection (3) to the date the employee began receiving a pension is deemed to be a reference to the date in subsection (5) (a) or (b).
(7) Pension benefits payable for service accrued after December 31, 1991 will be limited to the maximum lifetime retirement benefits set out in section 8504 of the Income Tax Regulations under the Income Tax Act (Canada).
16 (1) Subject to section 20, a pension under this Act may be granted on any of the following plans:
(a) single life, payable for the life of the person entitled to the pension;
(b) single life guaranteed, payable for the life of the person entitled to the pension, or for a term not to exceed 15 years, whichever period is the longer;
(c) joint life and last survivor, payable
(i) during the joint life of the contributor and
(A) the spouse or a dependant nominated by the contributor before the granting of the pension, or
(B) a former spouse who, as a result of a written agreement or court order, has such an entitlement, and
(ii) during the life of the survivor;
(d) temporary life annuity at a rate not exceeding one of the following:
(i) the amount of the monthly pension payable under the Old Age Security Act (Canada), payments to cease when the employee dies or reaches the age of 65 years, whichever first occurs;
(ii) [Repealed 1999-42-35.]
(iii) the amount of the employee’s retirement pension under the Canada Pension Plan (Canada), payments to cease when the employee dies or reaches the age of 65 years, whichever first occurs;
(e) a combination of plans under paragraphs (a), (b), (c) and (d) that the contributor, with the approval of the commissioner, may request.
(1.1) The temporary life annuity referred to in subsection (1) (d) must be adjusted on an actuarially equivalent basis instead of the lifetime pension otherwise payable.
(2) The pension determined under section 15 must be adjusted, on the basis of the prescribed tables, to the plan or combination of plans selected by the employee under subsection (1).
(3) If an employee has a spouse on the date the employee elects a plan under subsection (1), the employee is deemed to have elected that 60% of the employee’s pension be paid on the joint life and last survivor plan under subsection (1) (c) unless the spouse waives this requirement in writing by completion of a form specified by the commissioner or there is filed with the commissioner a written agreement or court order made under Part 5 or 6 of the Family Relations Act with the same effect.
(4) Within 60 days after the date on which a contributor’s pension is granted, the contributor may change his or her pension plan or combination of pension plans by notice in writing filed with the commissioner.
(5) If a pension does not include an amount payable under subsection (1) (a) and the payment of a pension ceases, the last survivor or the last survivor’s personal representative must be paid any amount by which the refund value of the employee’s contributions under the former Act and this Act exceeds the total of pension payments made under this Act.
(6) If the pension plan includes a single life guaranteed plan under subsection (1) (b), the commissioner, on application by the contributor, may make or cause to be made a provision by which, if a person dies before the expiration of the term certain, payment of the pension during the remainder of the term must be made to the nominee of the person.
(7) A person who has made application under subsection (6) may, by notice in writing to the commissioner, and on fulfilling such further conditions as the commissioner may prescribe, change the contributor’s nominee.
(8) If a provision is made under subsection 6 and the person nominated survives the applicant, the pension must not for any purpose form part of the estate of the deceased applicant but, if both the applicant and the person nominated die before the expiration of the term certain, the commuted value of the remaining payments must be paid to the estate of the last survivor.
17 (1) For the purposes of this section:
"adjustment index", with respect to any adjustment quarter, means the average for that adjustment quarter of the consumer price index for each month in that adjustment quarter;
"adjustment quarter", in relation to a payment quarter, means,
(a) if the payment quarter begins on January 1 in a year, the period of 3 months beginning on July 1 immediately before that January 1,
(b) if the payment quarter begins on April 1 in a year, the period of 3 months beginning on October 1 immediately before that April 1,
(c) if the payment quarter begins on July 1 in a year, the period of 3 months beginning on January 1 immediately before that July 1, or
(d) if the payment quarter begins on October 1 in a year, the period of 3 months beginning on April 1 immediately before that October 1;
"basic lifetime portion of the pension" means,
(a) if the retired employee is living, the pension payable monthly during the lifetime of the employee,
(b) if the retired employee is not living, the pension payable monthly during the lifetime of the person nominated by the employee before the granting of the pension, and includes any pension granted to the nominee under a plan described in section 16 (1) (b), or
(c) and, in the case of a pension granted on or after January 1, 1975, does not include any portion of the pension derived from contributions made by the employee under section 6 (2) of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on December 31, 1992;
"payment quarter" means a period of 3 months beginning on the first day of January, April, July or October in any year.
(2) Subject to this section, in addition to any supplementary allowance to which a person may be entitled under section 3 of this Act, and sections 4A, 4B and 4C of the Teachers Pensions Act, 1961, S.B.C. 1961, a person receiving a pension granted under this Act is entitled to a supplementary allowance determined as follows:
(a) if the pension was granted before January 1, 1974, by multiplying the amount of the basic lifetime portion of the pension by the percentage shown in the following table:
| Table | |
| Year in Which Pension Was Granted |
Amount of Supplementary Allowance Expressed as a Percentage of the Amount of the Basic Lifetime Portion of the Pension Payable Per Cent |
| At or before December 31, 1972 | 12 |
| January 1, 1973 to December 31, 1973 | 4 |
(b) if the pension was granted on or after January 1, 1974 and before July 1, 1974, by multiplying the amount of the basic lifetime portion of the pension by the ratio that the increase in the consumer price index for the month of December, 1974 over the consumer price index for the month of December, 1973 bears to the latter index;
(c) if the pension was granted on or after July 1, 1974 but before January 1, 1975, by multiplying the amount of the basic lifetime portion of the pension by the ratio that the increase in the consumer price index for the month of December, 1974 over the consumer price index for the month of June, 1974 bears to the latter index.
(3) A pension,
(a) after being adjusted in accordance with subsection (2), or
(b) granted to a person during an adjustment quarter beginning on or after January 1, 1975,
must be adjusted beginning on the first day of each payment quarter on or after July 1, 1975 by the amount of the basic lifetime portion of the pension that would have been paid to that person for the month in the 3 month period immediately before that payment quarter calculated in the ratio that the adjustment index for the adjustment quarter bears to the adjustment index for the immediately preceding adjustment quarter, but no adjustment must be made under this subsection in respect of a payment quarter beginning after January 1, 1981.
(4) The supplementary allowance payable under this section is deferred in respect of an employee who, after reaching an age not more than 10 years under the maximum retirement age, elected under section 12 (2) (d) to receive a reduced pension calculated under section 15, until the first day of the payment quarter next following the month the employee reaches an age that is 5 years less than his or her maximum retirement age.
(5) Payment of the supplementary allowance calculated under subsection (2) (a) must begin on July 1, 1974 and must cease on the date that payment of the pension ceases.
(6) Payment of the supplementary allowance calculated under subsection (2) (b) and (c) must begin on April 1, 1975 and must cease on the date that payment of the pension ceases.
(7) Despite subsection (2), the amount of a pension that may be paid to a pensioner for any month in a payment quarter must not be less than the amount of the pension that was or may be paid to a pensioner for any month in the 3 month period immediately before that payment quarter as a result of the application of this section.
(8) If, in relation to a payment quarter, the adjustment index for the adjustment quarter is lower than the adjustment index for the previous adjustment quarter,
(a) a pension adjustment must not be made under subsection (2) in respect of that payment quarter, and
(b) a pension adjustment must not be made under subsection (2) in respect of a subsequent payment quarter until the adjustment index for that subsequent payment quarter is higher than the previous adjustment quarter in which the adjustment index had reached the highest point.
(9) The Lieutenant Governor in Council may prescribe how the average of the adjustment index for any period of months must be determined and how the average that is determined to be a fraction of a whole number must be expressed.
18 (1) The commissioner must use money in the inflation adjustment account continued under section 4 to provide supplementary allowances to persons who receive pensions granted under this Act.
(2) Beginning on January 1, 1995, and on January 1 of each subsequent year, the commissioner must grant supplementary allowances in accordance with this section to persons receiving a pension under this Act, but if, on the day the supplementary allowance is granted, the pension has been paid for a period of less than 12 months, the supplementary allowance must be reduced to the amount obtained by multiplying it by 1/12 for each complete month that the pension has been paid.
(3) The portion of the pension eligible for adjustment is the total amount of the pension payable monthly less the sum of
(a) any monthly pension provided as a temporary life annuity under section 16 (1) (d), and
(b) any monthly pension provided under section 15 (2) (b).
(4) The amount of a supplementary allowance granted on any January 1 must not exceed the amount obtained by multiplying
(a) the percentage increase in the consumer price index over the 12 months ending on the immediately preceding September 30
by
(b) the portion of the pension eligible for adjustment on that January 1.
(5) Subject to subsection (4), the supplementary allowances must be
(a) an amount that has a capitalized value equal to the amount in the inflation adjustment account on the preceding September 30, and
(b) calculated to provide a uniform percentage increase in the portion of the pensions eligible for adjustment.
(6) The total capitalized value of all supplementary allowances granted on any January 1 under this section must not exceed the amount that the commissioner determines is in the inflation adjustment account on the preceding September 30.
(7) The capitalized value of the aggregate of the supplementary allowances granted annually under this section must be transferred from the inflation adjustment account to the basic account established under section 4.
(8) A supplementary allowance granted under this section is in addition to the supplementary allowances under section 17 of this Act and sections 4A, 4B, and 4C of the Teachers Pensions Act, 1961, S.B.C. 1961.
(9) A supplementary allowance ends when the part of the pension on which the supplementary allowance is based ends.
(10) A supplementary allowance deferred under section 4.1 (7) of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on December 31, 1994, will be provided beginning on January 1, 1995 and the capitalized value of the amount of that supplementary allowance must be transferred from the inflation adjustment account to the basic account as of January 1, 1995.
19 (1) If an employee is separated or divorced and there is a written agreement or court order made under Part 5 or 6 of the Family Relations Act under which the spouse is entitled to or relinquishes entitlement to the benefits under this Act or has that entitlement cancelled, a copy of that written agreement or court order must be deposited with the commissioner before the earlier of
(a) the death of the employee, and
(b) the date the employee begins receiving a pension or supplemental benefits allowance or both.
(2) If the written agreement or court order is not deposited within the time required by subsection (1), the commissioner must not make any adjustment in the payment of a pension other than a pension granted under section 21 (1) or (2).
(3) If an adjustment is made for a pension granted under section 21 (1) or (2), the adjustment applies only to payments made after the written agreement or court order is deposited.
20 (1) The pension to which an employee becomes entitled under section 12 (1) (d) must be granted on application made by the employee after retirement if
(a) the application is made within 2 years after the date of the last contribution to the fund by the employee, and
(b) the board approves the application.
(2) Unless the board orders otherwise, a person is not entitled to a pension under section 12 (1) (d) if the person’s certificate of qualification has been suspended or cancelled for cause under section 35 (1) (b) or (c) or 38 of the Teaching Profession Act.
(3) A person is not totally and permanently disabled unless, within 2 years after the date of the last contribution made to the fund by the employee,
(a) the employee has been examined at the direction of the commissioner by at least 2 medical practitioners,
(b) the medical practitioners determine that the disability arises from the mental or physical condition of the person, and
(c) the medical practitioners unanimously certify in writing that to the best of their knowledge the person is totally and permanently disabled.
(4) The board must arrange for a medical examination of each person receiving a pension under section 12 (1) (d) not more often than once in year.
(5) If an examination under subsection (4) shows that the person is no longer totally and permanently disabled, the pension is, by that fact itself, suspended, and if that person,
(a) does not re-enter service and resume contributions, the person is entitled to apply for, and when qualified on the basis of age to begin receiving, a pension, or
(b) re-enters the service and again becomes an employee, any calculation or determination under this Act with respect to that person must be made as if the pension had not been paid during the person’s disability.
(6) Benefits payable under this section will be limited to the maximums as set out in section 8503 (3) of the Income Tax Regulations under the Income Tax Act (Canada).
(7) A pension paid on or after July 1, 1994 in respect of a total disability for which payments began before January 1, 1974 may be adjusted in a manner determined by the board to provide a monthly pension up to an amount equivalent to the monthly pension that would have been available
(a) had the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on January 1, 1985, applied, and
(b) had section 4.2 of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on January 1, 1985, applied.
21 (1) The pension payable to the spouse of a contributor who dies in service on or after January 1, 1996 is as follows:
(a) if the contributor dies before reaching pensionable age and after at least 2 years of contributory service, the pension payable is the amount calculated as if the contributor
(i) had been disabled and had retired from service immediately before death with a disability allowance determined in accordance with section 12 (1) (d), and
(ii) had converted to the joint life and last survivor plan described in section 16 (1) (c);
(b) if the contributor dies after reaching pensionable age and after at least 2 years of contributory service, the pension payable is the amount calculated as if the contributor
(i) had retired from service immediately before death, and
(ii) had converted to the joint life and last survivor plan described in section 16 (1) (c);
(c) if the contributor dies after reaching pensionable age but with less than 2 years of contributory service, the pension payable is equal in amount to the pension that would have been granted if the contributor
(i) had retired immediately before death with an allowance determined in accordance with section 12 (1) (a) or (c), and
(ii) had converted to the joint life and last survivor plan under section 16 (1) (c).
(2) Instead of the pension provided under subsection (1), the spouse may elect
(a) to convert the pension plan to the temporary life annuity under section 16 (1) (d) (ii) in combination with the joint life and last survivor plan under section 16 (1) (c), or
(b) to transfer the whole of the commuted value of the pension on a locked-in basis in accordance with the conditions referred to in section 23 (4) (b).
(3) If a contributor dies in service and there is no surviving spouse, the person nominated by the contributor as beneficiary or, if there is no valid designation of beneficiary the personal representative of the estate in a representative capacity, is entitled to a payment equal to the greater of
(a) the deceased contributor’s contributions together with accumulated interest, and
(b) the sum of the deceased contributor’s contributions made before January 1, 1993, together with interest at the rate calculated in section 23 (7), plus 60% of the commuted value of the pension, if any, to which the contributor would have been entitled in respect of service on and after January 1, 1993 had the contributor terminated membership immediately before death.
(3.1) With respect to a marriage-like relationship, subsection (5) (a) applies regardless of whether a nomination was made or a marriage-like relationship was established with the contributor before or after the date this subsection comes into force.
(4) If the person nominated by the employee is, at the time of the employee’s death, a minor, the commissioner must pay the amount to the Public Trustee in trust for the minor.
(5) If, on the death of an employee, a pension is not payable under subsection (1), a refund calculated in accordance with the provisions of section 23 must be paid to one of the following:
(a) the spouse of the employee, unless a nomination of payee of some other person has been made after the date of the employee’s last marriage or marriage-like relationship and with the spouse’s written consent;
(b) if there is no person entitled under paragraph (a), the payee nominated by the employee under subsection (4);
(c) if there is no person entitled under either paragraph (a) or (b), the personal representative of the employee.
(6) If an amount becomes payable to the spouse or to a person by virtue of a nomination made under this section, the amount
(a) is not subject to the control of the creditors of the deceased employee, and
(b) does not form part of the employee’s estate,
and the amount is instead of any other payment under this Act.
(7) An employee may nominate his or her estate or personal representatives to receive a refund but, in that case, it forms part of the employee’s estate and is subject to the control of the creditors.
(8) If an employee is separated or divorced and, as a result of a written agreement or court order made under Part 5 or 6 of the Family Relations Act, the former spouse is entitled to a portion of the employee’s contributions, the former spouse is entitled to that portion whether or not the employee has nominated the former spouse or any other person.
(9) Despite subsection (8), if the commissioner
(a) has paid a refund before receiving notice of an agreement or court order, and
(b) has acted under an otherwise valid nomination,
the commissioner is not liable to make the payment of contributions to the former spouse.
(10) Despite any other provision of this Act, the remainder of a benefit, whether refund or pension, over the amount of the court order or separation agreement, must be paid to the current spouse or beneficiary or to the estate as the remainder would have been paid had there been no court order or separation agreement.
(11) If a surviving spouse remarried on or after November 1, 1973, the amount of the monthly allowance is not affected by remarriage.
(12) Benefits payable under this section will be limited to the maximums as set out in section 8503 (2) of the Income Tax Regulations under the Income Tax Act (Canada).
(13) A pension that is paid on or after July 1, 1994 to the spouse of a member who died in service before January 1, 1974 may be adjusted in a manner determined by the board to provide a monthly pension up to an amount equivalent to the monthly pension that would have been available
(a) had the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on January 1, 1985, applied, and
(b) had section 4.2 of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on January 1, 1985, applied.
(14) The pension referred to in subsection (13) includes a pension in respect of a total disability.
22 If a contributor is retired from service and becomes entitled to a pension, the total of any portion of that pension at the contributor’s credit in the fund resulting from contributions on the contributor’s behalf under section 6 (2) of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on December 31, 1992, must, before the granting of the pension, be refunded to the contributor on demand.
23 (1) If the service of a contributor terminates or is terminated on or after January 1, 1996 and the contributor has completed at least 2 years of contributory service, the contributor is entitled to a deferred pension calculated under section 15 in respect of all pensionable service.
(2) A contributor who is entitled to a deferred pension may apply to receive the pension on or after reaching an age that is not more than 5 years less than pensionable age, but the 2% referred to in section 15 (2) (a) must be reduced by 5% of that amount for each year of age by which the employee’s age is less than pensionable age, and the reduction must be prorated for fractions of a year.
(3) Instead of a deferred pension and subject to the terms and conditions set out in subsection (4), a contributor may elect to receive a payment in the amount of the commuted value of the deferred pension.
(4) A contributor may elect to receive a payment under subsection (3) if
(a) at the time of termination of membership the contributor’s age is more than 5 years under pensionable age, and
(b) the commissioner is satisfied that the commuted value payment is to be transferred on a locked-in basis to one of the following:
(i) another pension plan;
(ii) an RRSP;
(iii) an insurance company or other financial institution in accordance with the requirements for funds locked-in under the Pension Benefits Standards Act.
(4.1) Section 21 (2) (b) and subsection (4) of this section do not apply to a member, former member, spouse, surviving spouse or former spouse who
(a) has been absent from Canada for 2 or more years, and
(b) has become a non-resident of Canada as determined for the purpose of the Income Tax Act (Canada).
(5) If on termination of membership a contributor is not entitled to a deferred pension under subsection (1) in respect of some or all service, the contributor may elect
(a) to leave a contributory account on deposit in the fund, or
(b) to receive a payment in the amount of the contributor’s contributions, together with accumulated interest under subsection (7), in respect of the period of service for which the contributor is not entitled to a deferred pension.
(6) If a person leaves a contributory account on deposit in the fund under subsection (1) and dies before a pension is granted under this Act, benefits must be determined in accordance with section 21.
(7) The accumulated interest must be determined
(a) for periods before January 1, 1993 on the basis of the rates that were in effect from time to time under section 17 of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on December 31, 1992, and
(b) for periods after December 31, 1992, at a the rate of interest calculated on the basis of the average yields of 5 year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B 14045.
(8) Interest under subsection (7) must be computed as if
(a) the contribution made during the fiscal year in which the refund is paid were made in a lump sum on the first day of the month in which payment of the refund is made, and
(b) the contributions made during any other fiscal year were made in a lump sum on December 31 in that other fiscal year.
24 (1) A pension must not be granted earlier than
(a) the first day of the month following the month in which the final payment of salary was made,
(b) the first day of the month in which the application of the employee for a pension is filed with the commissioner, but if the application is made in the month of August or September, and the employee has not been engaged as a teacher during either month, the pension must be granted on the first day of July immediately before the date of application, or
(c) the first day of the month following the month in which the employee first became eligible to receive a pension.
(2) Despite subsection (1) (b), if a person fails to apply for a pension on or before the date the person is eligible to begin receiving the pension and, in the opinion of the commissioner, the failure to apply is due to
(a) the person being incapable of managing his or her affairs, or
(b) a good and sufficient reason why the person failed to apply for a pension,
the commissioner may grant a pension effective the date the person would have, but for the person’s failure to apply, begun receiving the pension.
(3) A pension must be paid monthly from the fund including a full payment for the month in which the person dies or the pension ends.
(4) A pension or refund of any amount at the credit of an employee in the fund may not be assigned, charged, attached, anticipated or given as security, and any instructions purporting to assign, charge, attach, anticipate or give as security a pension or refund are void.
(5) Instead of a pension, a contributor or the surviving spouse of a deceased contributor may receive a payment equal to the commuted value of the pension if
(a) the monthly pension payment is less than 1/12 of 2% of the year’s maximum pensionable earnings in the year of termination of membership, or
(b) the commuted value is not greater than 4% of the year’s maximum pensionable earnings in the year of termination of membership.
(6) If a contributor or the surviving spouse of a deceased contributor is entitled to locked-in benefits under this Act and the commissioner is satisfied that the person entitled to the benefits has a physical disability that is likely considerably shorten the person’s life expectancy, the person may, before payment of the pension begins, elect to convert the pension to a payment or series of payments on a basis acceptable to the board.
25 (1) If a former contributor who is receiving a pension under this Act becomes an employee to whom this Act applies, the employee may elect to do one of the following:
(a) repay to the fund all amounts received by way of a pension, together with interest calculated at the same rate as provided in section 23 (7), and be reinstated in the fund and the employee’s rights under the fund reinstated as near as possible to the position held at the time the pension was originally granted, in which case the payment of the pension must cease and the employee must begin making contributions and accruing service in respect of that re-employment;
(b) without repayment of amounts received by way of pension or repayment of interest, begin making contributions and accruing service in respect of the re-employment, in which case the payment of the pension must cease;
(c) continue receiving a pension, in which case the employee is not eligible to make contributions and accrue service in respect of the re-employment.
(2) [Repealed 1997-35-58.]
(3) If the payment of a pension ceases under subsection (1), the payment is deemed to have ceased at the end of the month in which contributions begin.
(4) If the payment of a pension ceases under subsection (1) (a), the pension payable to the contributor upon termination of the period of re-employment must be calculated in accordance with section 15.
(5) If the payment of a pension ceases under subsection (1) (b), the pension payable to the contributor on termination of the period of new employment must be determined as the sum of the pension accrued during the period of new employment plus the pension that has ceased, recalculated in accordance with section 15, but the assumed age of retirement for the purposes of the calculation is the contributor’s age when the new pension begins minus a period equivalent to the period for which the contributor received the pension that has ceased.
(6) The provisions of this section apply on and after January 1, 1993 to a former contributor who
(a) was or is receiving a pension under this Act, and
(b) is currently an employee to whom this Act applies.
(7) Funds held in trust under section 18.1 of the Pension (Teachers) Act, R.S.B.C. 1979, c. 320, as it read on December 31, 1992, must be dealt with by the commissioner in an equitable manner.
(8) An election made by a contributor under subsection (1) is irrevocable.
(9) This section does not apply to a person who is receiving a pension as a beneficiary.
26 (1) If an employee contribution required under section 7 (1) is limited by section 7 (2), the difference between what would have been contributed and what is actually contributed under Part 3 must
(a) be contributed under this Part, or
(b) be attributed to a contribution that would have been made under section 7 (1) (b).
(2) If an employee contribution required for a benefit under section 9 or 10 is limited by section 11, the difference between what would have been contributed and what is actually contributed under Part 3 must be contributed under this Part.
(3) [Repealed 1997-35-59.]
(4) If an employer contribution required for a benefit under Part 3 is limited by section 7 (2) or 11, the difference between what would have been contributed and what is actually contributed under Part 3 must be contributed under this Part.
27 (1) [Repealed 1997-35-60.]
(2) If a benefit that would be provided under section 20 is limited by section 20 (6), the difference between what would have been provided and what is actually provided under Part 3 must be provided under this Part.
(3) If a benefit that would be provided under section 21 is limited by section 21 (12), the difference between what would have been provided and what is actually provided under Part 3 must be provided under this Part.
(4) If a benefit that would be provided under Part 3 is limited by section 11, the difference between what would have been provided and what is actually provided under Part 3 must be provided under this Part.
28 (1) If a person receives or is entitled to receive a supplementary allowance under section 18, the person must receive or is entitled to receive a similar allowance with respect to a supplemental benefits allowance.
(2) The supplementary allowance provided under this section must
(a) be the same percentage increase as that provided with respect to a pension, and
(b) be provided in the same manner as a supplementary allowance provided with respect to a pension.
29 (1) The contributions required under section 26 must be made to the supplemental benefits account.
(2) The benefits provided under section 27 and the regulations, and the allowance provided under section 28 must be paid from the supplemental benefits account.
(3) Payment of withholding taxes to Revenue Canada must be paid from the supplemental benefits account.
30 If a benefit is payable under this Part, the benefit is payable on the same terms and conditions as the original benefit payable under Part 3 unless
(a) the benefit was to be in the form of a commuted value transfer to a locked-in RRSP, in which case the payment of the commuted value amount under this Part will be made directly to the individual,
(b) the person has elected different options for the payment of Part 3 and Part 4 benefits, or
(c) different treatment is required under the Income Tax Act (Canada) or some other authority.
31 If a person who is in receipt of a supplemental benefits allowance under this Act becomes an employee to whom this Act applies, the provisions of section 25 respecting a pension also apply to the supplemental benefits allowance.
32 As soon as possible after the close of each fiscal year, the minister must lay before the Legislative Assembly a return that
(a) contains a full and clear statement and account of all business done under this Act, and
(b) shows the condition of the fund.
33 (1) For administering and carrying out this Act, there is continued an officer called the commissioner of teachers pensions, appointed by the Lieutenant Governor in Council.
(2) In addition to his or her duties under this Act, the commissioner must perform other duties assigned to the commissioner by any other Act or by the Lieutenant Governor in Council.
34 Subject to this Act and the regulations, the commissioner may do any of the following:
(a) determine whether a person is within the scope of this Act and entitled to receive a pension under it;
(b) determine the amount of a pension or refund granted under this Act;
(c) determine all further matters arising in the administration of this Act necessary to be determined to properly carry out of the provisions of this Act;
(d) if the allocation of money payable under this Act is to a person who, in the opinion of the commissioner, is unfit to manage his or her own affairs, deal with the amount payable for the benefit of the contributor or of the contributor’s nominee, or for the benefit of the spouse or children of the contributor, in whatever manner the commissioner determines.
35 A pension must not be granted to a person until the commissioner, after inquiry in the manner prescribed by the regulations, determines
(a) that the person is within the scope of this Act,
(b) that the person is entitled to receive a pension under the provisions of this Act, and
(c) the grounds on which the person is entitled to receive the pension.
36 In addition to the accounts to be kept by the commissioner under this Act, the commissioner must record any data required by the actuary and must keep all books and accounts necessary
(a) to determine the pension payable under this Act,
(b) to record contributions made by employers and employees, and
(c) to record the payments made from the consolidated revenue fund to the fund.
37 (1) The Teachers Pension Board is continued.
(2) The board consists of 7 members appointed by the Lieutenant Governor in Council as follows:
(a) 4 persons nominated by the government, one of whom must be designated in the appointment as chair of the board;
(b) 3 persons representative of the plan members, nominated by the executive of the British Columbia Teachers Federation.
(c) [Repealed 1998-13-16.]
(3) An appointment under subsection (2) may be made for a period of not more than 3 years, and an appointment under that subsection may be renewed or extended.
(4) [Repealed 1998-13-16.]
(5) All expenses necessarily incurred by board members in carrying out their responsibilities may be paid out of the fund.
(6) The chair of the board may be paid out of the fund remuneration at a rate set by the Lieutenant Governor in Council.
38 The board may do any of the following:
(a) make recommendations to the minister with respect to the Act and the regulations and, before enactment, review amendments to the Act or the regulations;
(b) make recommendations to Treasury Board with respect to the following:
(i) changes in benefits;
(ii) funding policies for the plan;
(iii) contribution rates;
(iv) modifications to the plan;
(v) the budget of the commissioner;
(c) make recommendations to the Minister of Finance and Corporate Relations with respect to the investment of the fund;
(d) report to plan members on issues related to the plan;
(e) establish procedures and methods for board operations.
39 Subject to this Act and the regulations, the board must do all of the following:
(a) submit to Treasury Board and to the minister an annual report on the operation of the plan, the fund and the board;
(b) review reports on the investment of the fund;
(c) direct the commissioner on the application of plan rules;
(d) carry out other prescribed duties and responsibilities.
40 (1) A person or organization directly affected by a decision of the commissioner in the application of the plan rules may, by written notice to the board, appeal all or part of the decision in accordance with the practice and procedure specified by the board.
(2) The board must ensure that each appeal is dealt with promptly and efficiently.
(3) For the purposes of this section, the board and each of its members has the powers, protection and privileges of a commissioner under sections 12, 15 and 16 of the Inquiry Act.
41 (1) The board may engage the services of an actuary for the purposes of this Act.
(2) The actuary must
(a) make all actuarial reports and computations required by the board,
(b) make actuarial valuations of assets and liabilities under this Act when requested to do so by the board, and
(c) report to the board the results of each actuarial valuation.
(3) Despite subsection (2) (b), actuarial valuations must be made at least once in each 3 year period.
(4) Any amount paid to the actuary for his or her services is an expense incurred in the administration of this Act.
42 For the purposes of this Act, the Lieutenant Governor in Council must appoint not more than 3 persons to be called the trustees of the fund.
43 (1) The commissioner must advise the trustees of the sums of money available for investment.
(2) The trustees must keep accounts and records in a form prescribed by the Minister of Finance and Corporate Relations.
44 (1) The trustees must cause all money available for investment to be invested in accordance with subsection (2).
(2) The trustees may
(a) subject to the prior approval in writing of the Minister of Finance and Corporate Relations,
(i) invest the money in investments permitted for a pension plan registered in compliance with the Pension Benefits Standards Act,
(ii) exchange an investment made under subparagraph (i) for another investment permitted under that subparagraph, and
(iii) realize an investment held under this paragraph, or
(b) place the money with the Minister of Finance and Corporate Relations under section 40 (5) of the Financial Administration Act for investment.
45 The trustees must, at the request of the commissioner but subject to the approval of the Minister of Finance and Corporate Relations, realize any investment to provide any money required for the purposes of this Act.
46 All salaries and expenses necessarily incurred in the administration of this Act, as determined and certified by the commissioner, must
(a) be paid out of the fund or out of the consolidated revenue fund, and
(b) to the extent to which the salaries and expenses are paid out of the consolidated revenue fund, be reimbursed to the consolidated revenue fund out of the fund.
47 (1) At least once in each year the accounts of the commissioner and the board must be audited by the Auditor General or by an auditor appointed by the Lieutenant Governor in Council for that purpose.
(2) The salary or remuneration of an auditor appointed by the Lieutenant Governor in Council must be paid by the government.
48 Payment of money that an employer is required by this Act to pay or forward to the commissioner may be enforced by action in any court, in the name of the commissioner, as for a debt due by that employer to the commissioner.
49 Except as expressly provided in this Act, nothing in this Act confers on any person a right to demand or enforce the repayment of any amount contributed by that person to the fund or the payment of any interest.
50 (1) When requested by the commissioner, an employee must submit proof of age satisfactory to the commissioner.
(2) The commissioner may defer the granting of a pension to an employee or dependant of an employee until satisfactory proof of age has been submitted.
51 A person receiving a pension under this Act must
(a) keep the commissioner informed of his or her whereabouts, and
(b) at least once each year must report in person, or by certificate in the prescribed form, as the commissioner may require.
52 This Act does not impair or affect the right an employer to remove or dismiss a person from service.
53 (1) Subject to the approval of the Lieutenant Governor in Council, the commissioner may make regulations referred to in section 41 of the Interpretation Act.
(2) Without limiting subsection (1), the commissioner, subject to the approval of the Lieutenant Governor in Council, may make regulations as follows:
(a) regulating the manner of making application for and the granting of pensions;
(b) prescribing forms to be used for the purposes of this Act or of the regulations;
(c) prescribing the method of proving any fact necessary to be proved for the purpose of granting or paying pensions or refunds, or for any purpose of the administration of this Act;
(d) providing for the inspection of payrolls of employers to whom this Act applies, and for reports to be made by employers for the purposes of this Act;
(e) prescribing penalties for the breach of any regulations made under paragraph (d);
(f) prescribing tables, as approved by the actuary, for use in making any actuarial valuation or computation required for the carrying out of the provisions of this Act;
(g) describing the allowances that may be included in salary for purposes of this Act;
(h) prescribing the method in which interest is applied;
(i) prescribing the manner in which the pension index, the average of the consumer price index and the adjustment index for any period of months must be determined and the manner in which any such average that is determined to be a fraction of a whole number must be expressed;
(j) providing for interest to be paid to a person if the person is entitled to payments under a pension plan and through no fault of that person there is a delay in his or her receiving a payment;
(k) specifying the time within which an employer must remit contributions to the fund and providing for interest to be paid by an employer who fails to remit contributions within the time specified by the commissioner;
(l) establishing the method of calculating the average monthly salary of an employee for the purpose of determining his or her highest average salary;
(m) establishing a phased retirement plan for employees 55 years old or older with at least 10 years pensionable service under which, if an employer and employee agree that the employee will reduce his or her hours of work, the employee will receive payments from the fund in accordance with the regulations and, without limiting the foregoing, may specify
(i) how the final pension on full retirement must be calculated to take account of payments from the fund under the phased retirement plan,
(ii) the conditions under which payments may be made from the fund and the amount of those payments, and
(iii) the date and frequency of payments;
(n) prescribing group benefit entitlements that may be provided for pensioners, including extended health plans and dental plans;
(o) prescribing terms and conditions under which the group benefit entitlements referred to in paragraph (n) may be provided and funded from employer contributions under section 5 (1) (c);
(p) prescribing the terms and conditions under which coverage under the Medical Services Plan of British Columbia may be funded from employer contributions under section 5 (1) (c);
(q) prescribing duties and responsibilities of the Teachers Pension Board.
54 The Lieutenant Governor in Council may prescribe the terms and conditions, including the costs to be paid, under which
(a) leaves of absence from an employer may be included as contributory and pensionable service,
(b) previous service under this plan may be included as contributory and pensionable service, or
(c) periods of child rearing may be included as contributory service.