PROVINCIAL JUDGES AND MASTERS IN CHAMBERS REGISTERED AND UNREGISTERED PENSION PLANS

Province of Alberta PROVINCIAL COURT ACT COURT OF QUEEN S BENCH ACT INTERPRETATION ACT PROVINCIAL JUDGES AND MASTERS IN CHAMBERS REGISTERED AND UNREGISTERED PENSION PLANS Alberta Regulation 196/2001 With amendments up to and including Alberta Regulation 222/2017 Office Consolidation Published by Alberta Queen s Printer Alberta Queen s Printer Suite 700, Park Plaza 10611-98 Avenue Edmonton, AB T5K 2P7 Phone: 780-427-4952 Fax: 780-452-0668 E-mail: qp@gov.ab.ca Shop on-line at www.qp.alberta.ca

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(Consolidated up to 222/2017) ALBERTA REGULATION 196/2001 Provincial Court Act Court of Queen s Bench Act Interpretation Act PROVINCIAL JUDGES AND MASTERS IN CHAMBERS REGISTERED AND UNREGISTERED PENSION PLANS Table of Contents Preamble General Provisions 1 Division of Regulation 2 Interpretation 3 Transfer of assets held under temporary arrangements 4 Prevalence over repealed Regulations 5 Collection and disclosure of information Schedule 1 Provincial Judges and Masters in Chambers (Registered) Pension Plan 1 Interpretation of Schedule 1 2 The Plan Part 1 Administration 3 Administration of the Plan 4 Fiscal year 5 Report to the Legislative Assembly Part 2 Participation 6 The participants Part 3 Funding 7 Registered pension plan fund 8 Actuarial valuation report

REGISTERED AND UNREGISTERED PENSION PLANS AR 196/2001 9 Fiduciary relationship and use of surplus 10 Contributions and accretion 11 Participant contributions 12 Government contributions Part 4 Pensionable Service 13 Computation of pensionable service Part 5 Benefits 14 Interpretation and application of Subdivisions A 15 Interpretation and application of Subdivisions B 16 Limitation of benefits where obtainable under Subdivisions A and B 17 Vesting based on all service Division 1 Retirement Benefits Subdivision A For Service Before 1992 18 Limitation of benefits to meet tax rules 19 Normal pension based on age and service 20 Pension partner protection 21 Alternative forms of pension 22 Disability pensions 23 Disability pension adjustments 24 Postponement of pension 25 Failure to select pension Subdivision B For Service After 1991 26 Tax rule limitations on benefits 27 Normal pension based on age and service 28 Pension partner protection 29 Alternative forms of pension 30 Pension on early retirement 31 Disability pensions 32 Disability pension adjustments 33 Postponement of pension 34 Failure to select pension 2

REGISTERED AND UNREGISTERED PENSION PLANS AR 196/2001 Division 2 Death Benefits 35 Application of Division Subdivision A For Service Before 1992 36 Pension partner s benefit on death before pension commencement 37 Benefits to other beneficiaries Subdivision B For Service After 1991 38 Pension partner s benefit on death before pension commencement 39 Benefits to other beneficiaries Division 3 Benefits on Termination Before Pension Eligibility Subdivision A For Service Before 1992 40 Vested participants under 55 Subdivision B For Service After 1991 41 Vested participants under 55 42 Non-vested participants Division 4 Miscellaneous Provisions on Benefits 43 Cost-of-living increases 44 Interest allowance 45 Pension commencement 46 Commencement of guaranteed term of years 47 Suspension of pension on employment 48 Suspension of pension on reappointment 49 Beneficiaries 50 Method of payment of pensions 51 Idem conversion following death 52 Continuation of existing pensions and pension rights 3

REGISTERED AND UNREGISTERED PENSION PLANS AR 196/2001 Part 6 Miscellaneous 53 Interest chargeable 54 Advance against pension 55 Actuarial formulas 56 Exercise of benefit choice 57 Prohibition against assignment, etc. 58 Matrimonial property orders 59 Liability of benefits to legal process 60 Liability of Government and prohibition against extra-legislative benefits or remedies 61 Rights and obligations under former Regulation 62 Overpayments and deficiencies 63 Return of money 64 Retentions for debt 65 Requirement of evidence 66 Appeals 67 Termination of the Plan, and surplus on wind-up 68 Transitional interest rates - 1998 69 Transitional actuarial tables 70 Transitional pre-april 1, 1998 service purchases 71.1 Transitional election for certain judges 71.2 Transitional interest relief for non-electing judges Subschedule Forms Schedule 2 Provincial Judges and Masters in Chambers (Unregistered) Pension Plan 1 Interpretation of Schedule 2 2 Establishment of the Plan Part 1 Administration 3 Administration of the Plan 4 Fiscal year 5 Report to the Legislative Assembly Part 2 Participation 6 The participants 4

REGISTERED AND UNREGISTERED PENSION PLANS AR 196/2001 Part 3 Funding 7 RCA fund 8 Actuarial valuation report 9 Payment of benefits and costs 10 Contributions and RCA taxes 11 Participant contributions 12 Government contributions Part 4 Pensionable Service 13 Computation of pensionable service Part 5 Benefits 15 Interpretation and application of Part 5 16 Limitation of benefits 16.1 Linking of benefit choices to those made under Registered Plan 17.1 Reduction for Registered Plan benefits Division 1 Retirement Benefits 27 Amount and form of pension 28 Spousal protection 29 Alternative forms of pension 31 Disability pensions 32 Disability pension adjustments 33 Postponement of pension 34 Failure to select pension Division 2 Death Benefits 35 Application of Division 36 Pension partner s pension for pre-1992 service 37 Benefits to other beneficiaries for pre-1992 service 38 Pension partner s benefit on death before pension commencement 39 Benefits to other beneficiaries Division 3 Benefits on Termination Before Pension Eligibility 41 Vested participants under 55 5

REGISTERED AND UNREGISTERED PENSION PLANS AR 196/2001 42 Non-vested participants Division 4 Miscellaneous Provisions on Benefits 43 Cost-of-living increases 44 Interest allowance 45 Pension commencement 46 Commencement of guaranteed term of years 47 Suspension of pension on employment 48 Suspension of pension on reappointment 49 Beneficiaries 50 Method of payment of pensions 51 Idem conversion following death Part 6 Miscellaneous 53 Interest chargeable 54 Advance against pension 55 Actuarial formulas 56 Exercise of benefit choice 57 Prohibition against assignment, etc. 58 Matrimonial property orders 59 Liability of benefits to legal process 60 Liability of Government and prohibition against extra-legislative benefits or remedies 62 Overpayments and deficiencies 63 Return of money 64 Retentions for debt 65 Requirement of evidence 66 Appeals 67 Termination of the Plan, and surplus on wind-up 68 Transitional interest rates 1998 71.1 Transitional election for certain judges 71.2 Transitional interest relief for non-electing judges 72 Recalculation of past benefits 73 Forms 6

Section 1 REGISTERED AND UNREGISTERED PENSION PLANS AR 196/2001 Preamble WHEREAS the Supreme Court of Canada recently decided certain questions on the subject-matters of benefits payable to provincial judges and judicial independence; and WHEREAS the 1998 and 2000 Judicial Compensation Commissions have made recommendations respecting those benefits, including specifically pensions and other retirement benefits, and also those for masters in chambers; and WHEREAS it is the intent of this Regulation generally to put into effect those recommendations, so far as they relate to pensions and other retirement benefits, and to bring the legislation into line with current income tax rules (so far as applicable) and, as to structure and draftsmanship, other public sector pension legislation; THEREFORE the Lieutenant Governor in Council enacts as follows: General Provisions Division of Regulation 1 Apart from the Preamble and sections 1 to 5, this Regulation is divided into (a) Schedule 1, containing the Provincial Judges and Masters in Chambers (Registered) Pension Plan continued by that Schedule, and related provisions, and (b) Schedule 2, containing the Provincial Judges and Masters in Chambers (Unregistered) Pension Plan established by that Schedule, and related provisions. AR 196/2001 s1;222/2017 Interpretation 2 Expressions that are used in sections 1 to 5 and defined in Schedules 1 and 2 have the corresponding appropriate meanings given by those Schedules collectively. AR 196/2001 s2;222/2017 Transfer of assets held under temporary arrangements 3 The Minister of Finance shall, as soon as practicable, transfer all the assets held in the Consolidated Cash Investment Trust Fund account under section 7 of the Provincial Judges and Masters in Chambers (Temporary Pension Arrangements) Regulation, 1998 (AR 177/98), (a) to the extent that they consist of or derive from contributions which, by virtue of Schedule 1, were liable to be made to the pension plan continued by Schedule 1, 7

Section 4 REGISTERED AND UNREGISTERED PENSION PLANS AR 196/2001 to the pension fund continued by section 7(1) of Schedule 1, and (b) to the extent that they consist of or derive from contributions which, by virtue of Schedule 2, were liable to be made to the plan established by Schedule 2, to the fund established by section 7(1) of Schedule 2, and, notwithstanding the repeal of that Regulation by section 6(2), that account is to continue in force, so far as necessary but without any further addition of contributions, until that transfer is made. AR 196/2001 s3;68/2008;31/2012 Prevalence over repealed Regulations 4 Notwithstanding anything in section 35 of the Interpretation Act, to the extent that this Regulation and the Regulations repealed by section 6(1) and (2) are inconsistent with reference to anything occurring before the making of this Regulation, this Regulation prevails over those repealed ones. AR 196/2001 s4;251/2001 Collection and disclosure of information 5(1) In this section, judicial service information means personal information within the meaning of the Freedom of Information and Protection of Privacy Act that (a) relates to pensions and other benefits or to participants and former participants service, and (b) has a reasonable and direct connection to the administration of pensions and other benefits. (2) The Minister is authorized to collect judicial service information from, and to disclose it to, (a) the specific participant or former participant to whom the information relates, (b) an appeal board established under Schedule 1 or 2, where the information relates to the appellant or respondent, and (c) the Minister of Justice and Solicitor General. (3) The Minister of Justice and Solicitor General is authorized to collect judicial service information from, and to disclose it to, (a) a person or board referred to in subsection (2)(a) or (b), and (b) the Minister. 8

(4) The Minister may require the Minister of Justice and Solicitor General to provide to the Minister, within the time specified by the Minister, information that is required by the Minister to enable him or her to fulfill his or her functions under this Regulation. AR 196/2001 s5;170/2012 6, 7 Repealed AR 118/2005 s2. Schedule 1 Provincial Judges and Masters in Chambers (Registered) Pension Plan Interpretation of Schedule 1 1(1) In this Schedule, (a) actuarial equivalent means the equivalent in actuarial present value, calculated in accordance with demographic and economic factors that are recommended by an actuary and approved by the Minister; (b) actuary means a Fellow of the Canadian Institute of Actuaries; (b.01) ad hoc master means a person appointed as an ad hoc master in chambers under section 8.3 of the Court of Queen s Bench Act; (b.1) appointed, used in relation to a judge or supernumerary judge of the Provincial Court or a part-time judge, master, half-time master or ad hoc master, includes reappointed; (c) benefit means a retirement benefit, a death benefit or a benefit on termination before pension eligibility, under Part 5; (d) capped salary means salary that is or was compensation within the meaning of the tax rules, subject however to such limitation as is or was necessary to ensure that the benefit accrual under the tax rules for the taxation year does not or did not exceed the defined benefit limit fixed by the tax rules for that year; (e) contributions means contributions under the Plan; (f) former Regulation means the Provincial Judges and Masters in Chambers Pension Plan Regulation (AR 265/88) (repealed); 9

(f.1) half-time master means a person appointed as such under section 8.21 of the Court of Queen s Bench Act; (g) judge means (i) a judge of the Provincial Court appointed under the Provincial Court Act and includes a Chief Judge, Deputy Chief Judge and an Assistant Chief Judge, or (ii) a master, but does not include a supernumerary judge of the Provincial Court or a part-time judge, ad hoc master, half-time master or part-time master; (h) judicial service means periods of judicial service as, or otherwise occupying the position of, a judge; (i) latest pension accrual date means the last date as of which the tax rules allow a participant to accrue pensionable service; (j) leave without salary means a period during which a participant is or was, with due authorization, on leave from his or her regular duties as a judge and is receiving no remuneration or remuneration that is less than his or her regular remuneration, and includes any period recognized as leave without pay under the former Regulation, but does not include a period during which he or she is or was on LTDI; (k) master means a master in chambers appointed under the Court of Queen's Bench Act; (l) matrimonial property order means a matrimonial property order within the meaning of the Matrimonial Property Act, or a similar order enforceable in Alberta of a court outside Alberta, that affects the payment or distribution of a person s benefits; (m) maximum benefit accrual date means, in respect of a participant, the date on which the 70% benefit accrual percentage referred to in section 11(3)(a) is reached; (n) Minister means the member of the Executive Council responsible for the administration of the Management Employees Pension Plan; (o) on LTDI means, in relation to a judge or former judge (other than a former judge who is or was a part-time judge or half-time master), in receipt of money provided to a 10

participant under and within the meaning of the Long Term Disability Income Continuance Plan established by Schedule 2 to the Provincial Court Judges and Masters in Chambers Compensation Regulation (AR 176/98), and includes his or her being in receipt of benefits under the Government s Long Term Disability Income Continuance Plan for management employees before the first-mentioned Plan came into effect; (p) participant means a person who is a participant of the Plan by virtue of section 6; (q) participant current service contributions means a participant s contributions under section 11(1); (q.1) part-time judge means a person appointed as such under section 9.24 of the Provincial Court Act; (q.2) part-time master means a master who performs the duties of a master in chambers on a part-time basis but does not include a half-time master or an ad hoc master; (r) pension means a pension under the Plan, and pensioner means a person in receipt of such a pension and includes a prospective pensioner; (r.1) pension partner means (i) a person who, at the relevant time, was married to a participant or former participant and (A) was not judicially or otherwise separated from him or her, or (B) if so separated, was wholly or substantially dependent on him or her, (ii) if there is no person to whom subclause (i) applies, a person who, as at and up to the relevant time, had lived with the participant or former participant in a conjugal relationship (A) for a continuous period of at least 3 years, or (B) of some permanence, if there is a child of the relationship by birth or adoption, and was, during that period or that relationship, as the case may be, held out by the participant or former participant in the community in which they lived as being in that conjugal relationship, or 11

(iii) if there is no person to whom subclause (i) or (ii) applies, a person who was married to but separated from the participant or former participant and not wholly or substantially dependent on him or her at the relevant time; (s) pension commencement means the time established by section 45 that constitutes the effective date for the commencement of the relevant pension; (t) pensionable service means any period to be taken into account as pensionable service under section 13; (u) plan fund means the pension fund continued by section 7(1); (v) registered means registered or accepted for registration under the Income Tax Act (Canada); (w) salary means, (i) subject to subclause (ii), a judge s annual salary under the Provincial Court Judges and Masters in Chambers Compensation Regulation (AR 176/98) or any predecessor of that Regulation, or both, as the case may be, or (ii) in the case of a person who is or was on LTDI or on leave without salary, the amount that would have been the annual salary under subclause (i) had that person remained in active judicial service in the capacity in which he or she served immediately before becoming disabled or going on leave without salary, as the case may be, but, in respect of any period after a participant has reached the latest pension accrual date, means $0; (x) service means any period that is judicial service or pensionable service or both; (y) repealed AR 97/2002 s4; (z) tax rules means those provisions of the Income Tax Act (Canada) or of the regulations under it, or of both, that apply to pension plans registered or to be registered under that Act and includes any approval, certification or other permission or any direction or order from the federal Minister of National Revenue the absence of which or failure to comply with which may make the Plan s registration liable to revocation under that Act; 12

(aa) termination, subject to subsections (1.1) and (1.2), means a person s ceasing to be a participant under any circumstances other than death; (bb) the Plan or this Plan means the pension plan continued by section 2(1) as the Provincial Judges and Masters in Chambers (Registered) Pension Plan; (cc) vested means, in relation to a participant or former participant, having accumulated at least 2 years pensionable service or terminating or having terminated on or after reaching the latest pension accrual date; (dd) years of pensionable service means, in respect of a participant or former participant, the number of complete years and any fraction of a remaining year of pensionable service. (1.1) To avoid doubt, where a judge is appointed as a judge under section 9.23 of the Act with immediate effect from the end of a previous term of appointment as a judge (whether under section 9.23 or not) and without any break, then, for the purposes of this Schedule, there is no termination. (1.2) To avoid doubt, where a master is appointed as a master under section 8.2 of the Court of Queen s Bench Act with immediate effect from the end of a previous term of appointment as a master (whether under section 8.2 or not) and without any break, then, for the purposes of this Schedule, there is no termination. The Plan 2(1) The pension plan provided for by and under the former Regulation is continued, subject to this Schedule, as the Provincial Judges and Masters in Chambers (Registered) Pension Plan. (2) It is the intent of this Schedule that the Plan be and remain a registered pension plan under the Income Tax Act (Canada). Part 1 Administration Administration of the Plan 3(1) The Minister is the administrator of the Plan. (2) Notwithstanding anything in the Plan except subsection (3), the Minister shall administer the Plan in accordance with the tax rules. 13

(3) If in any respect the Plan does not comply with the applicable tax rules, the Minister may administer the Plan as if this Schedule were amended so to comply. Fiscal year 4 The fiscal year of the Plan is from April 1 in one year to March 31 in the next. Report to the Legislative Assembly 5(1) The Minister shall prepare and lay before the Legislative Assembly a report on the operation of the Plan with respect to each fiscal year. (2) The report must include the most recent actuarial valuation report prepared under section 8 unless that valuation report has already been included in a previous annual report. Part 2 Participation The participants 6 The persons who are to and are allowed to participate in the Plan are (a) all judges, and (b) all former judges who are on LTDI. Part 3 Funding Registered pension plan fund 7(1) The Provincial Judges and Masters in Chambers Pension Fund referred to in section 21.2 of the Financial Administration Act is continued as the Provincial Judges and Masters in Chambers (Registered) Pension Plan Fund for this Plan. (2) The Minister of Finance shall hold and administer the plan fund in accordance with this Schedule. (3) The Minister of Finance shall invest the assets of the plan fund in accordance with the Employment Pension Plans Act and the regulations under it. (4) All the assets of the Plan are to be held in, and all its liabilities are to be assumed by, the plan fund. 14

Actuarial valuation report 8 The Minister shall have an actuarial valuation of the Plan performed, and a report on that valuation prepared, by an actuary at least once every 3 years. Fiduciary relationship and use of surplus 9(1) Subject to subsection (2), the Minister of Finance shall hold the assets of the Plan in trust for the persons who are or who become entitled to benefits, and for the payment of the costs of administering the Plan. (2) Without breaching the trust under or being in any other manner affected by subsection (1), where the total amount held under that subsection exceeds the amount that is actuarially determined to be necessary to pay benefits and the costs of administering the Plan, the Lieutenant Governor in Council may, with respect to any portion or all of the excess, (a) transfer it to the General Revenue Fund, or (b) apply it towards reduction of the contributions for which the Government is liable under section 12. Contributions and accretion 10(1) All contributions to the Plan, with interest if any, shall be made and remitted to the Minister of Finance, who shall deposit them into the plan fund directly on receiving them. (2) All income of and all appreciation and depreciation in the value of the assets of the Plan accrue to the plan fund. Participant contributions 11(1) Subject to this section, a participant shall, at intervals coinciding with the salary periods fixed by order of the Minister, make contributions for current service at the rate of (a) 9%, until March 31, 2000, and (b) 7%, with effect from April 1, 2000, of the participant s capped salary. (2) A participant who is about to enter into a period of leave without salary that does not exceed the 2-year maximum specified in section 13(3) may apply to have that period taken into account as pensionable service and, if he or she wishes to have it so taken into account, shall make and, to the extent, if any, necessary, remit contributions, with respect to that leave, 15

(a) pursuant to subsection (1) for the period of or periods aggregating one year less any periods of leave without salary previously taken and falling within this clause or section 9(4)(b) of the former Regulation, and (b) pursuant to subsection (1), except at double the rate set out in subsection (1), for any subsequent periods. (3) Notwithstanding anything in this section, participant current service contributions are not to be made after a participant (a) attains a benefit accrual percentage of 70%, the benefit accrual percentage being equal to or (2% x A) + (2.67% x B) + (3% x C) where A = the participant s years of pensionable service before April 1, 1998, B = the years of pensionable service from April 1, 1998 to March 31, 2000, and C = the years of pensionable service after March 31, 2000, (b) reaches the latest pension accrual date, whichever of those events occurs first. (4) A participant shall not make contributions while on LTDI except that, if a participant on LTDI is also earning a salary under a rehabilitation employment program, he or she shall make and remit contributions pursuant to subsection (1) in respect of that salary. (5) Subject to subsections (2) and (4), the Government is liable for the remittance of the participant current service contributions under subsection (1), for which purpose it may withhold those contributions from remuneration payments. Government contributions 12(1) The portion of the current service cost for which the Government is liable is the cost of future benefit accruals after taking into account participant current service contributions and any excess amount applied towards a reduction of its contributions pursuant to section 9(2)(b). 16

(2) Subject to section 9(2), the Minister shall, if necessary, within a reasonable time after receiving an actuarial valuation report under section 8 and following the recommendations of the actuary in the report, in writing adjust the Government s contributions (a) in respect of current service, to a rate, determined by reference to a percentage of participants capped salaries, that is sufficient to finance that portion of the current service cost that is ascribed to the Government by subsection (1), and (b) if the Plan has an unfunded liability within the meaning of the Employment Pension Plans Regulation (AR 35/2000), to payments that are sufficient to amortize that unfunded liability in accordance with that Regulation. Part 4 Pensionable Service Computation of pensionable service 13(1) Subject to this section, in computing the length of pensionable service that a person accumulated, the following are the periods to be taken into account, namely, (a) any period that legally constituted and that was recognized as pensionable service under the former Regulation, and (b) any period after March 31, 1998 in respect of which that person was a participant. (2) Notwithstanding anything in this Plan, pensionable service is not to accrue after a participant s maximum benefit accrual date or latest pension accrual date, whichever occurs first, is reached. (3) Leave without salary occurring after March 31, 1998 may be taken into account as pensionable service only (a) if the participant complied with the terms and conditions of the leave and returned to active judicial service as a sitting judge or went on LTDI following the cessation of the leave, (b) to the extent that the aggregate of all the periods of the participant s leave without salary, before, on and after April 1, 1998, does not exceed 2 years, and (c) if the participant paid the requisite contributions under section 11(2) in respect of the leave. 17

(4) A person may not be credited with more than one year s pensionable service in respect of service performed in a calendar year, regardless of the nature and extent of the service so performed. (5) Service with respect to which the contributions made have been returned or paid to a person or transferred out of the Plan on a person s behalf may not be taken into account as pensionable service. Part 5 Benefits Interpretation and application of Subdivisions A 14(1) This section applies with respect to the interpretation and application of Subdivisions A of Divisions 1, 2 and 3 of this Part and, subject to section 15(4), of Division 4 of this Part and, in any such Subdivision or Division, (a) deferred pension means a pension under section 40(b); (b) highest average salary means, subject to subsection (2), the average of a person s annual salaries, (i) if that person terminated before April 1, 2006, in the 5 or, if less than 5, the total number of consecutive years (whether before or after or partly before and partly after the beginning of 1992) of the following service over which the average of the salaries was the highest, namely or (A) the person s pensionable service, and (B) any further service that would be pensionable service but only for its occurring between the maximum benefit accrual date and the latest pension accrual date, (ii) if that person terminated after March 31, 2006, in the 3 or, if less than 3, the total number of consecutive years specified in subclause (i); (c) normal pension means a pension in the amount receivable under section 19(1) and in the form specified in section 19(2)(a) or (b), depending on which of those clauses applies; 18

(d) participant contributions means, so far as they relate to service that occurred before 1992 and have not previously been returned, contributions with interest recognized as employee contributions for the purposes of section 12(1)(a) of the former Regulation. (2) Section 15(2) applies. (3) Except where specifically stated, Subdivision A of Division 1, 2 or 3 of this Part applies only with respect to service that occurred before 1992. (4) Where a provision of Division 4 uses an expression that is the subject-matter of an interpretation provision of this section, then this section applies with respect to the interpretation of that expression so far as it relates to service that occurred before 1992. Interpretation and application of Subdivisions B 15(1) This section applies with respect to the interpretation and application of Subdivisions B of Divisions 1, 2 and 3 of this Part and, subject to section 14(4), of Division 4 of this Part and, in any such Subdivision or Division, (a) deferred pension means a pension under section 41(b); (b) highest average capped salary means, subject to subsection (2), the average of a person s annual capped salaries, (i) if that person terminated before April 1, 2006, or (A) to the extent that the benefit is based on pensionable service before April 1, 1998, in the 5 or, if less than 5, the total number of consecutive years, and (B) to the extent that the benefit is based on pensionable service after March 31, 1998, in the 3 or, if less than 3, the total number of consecutive years, (ii) if that person terminated after March 31, 2006, in the 3 or, if less than 3, the total number of consecutive years, (whether before or after or partly before and partly after the beginning of 1992) of the following service over which the average of the capped salaries was the highest, 19

namely the person s pensionable service and any further service that would be pensionable service but only for its occurring between the maximum benefit accrual date and the latest pension accrual date; (c) normal pension means a pension in the amount receivable under (i) section 27(1), in the case of pensionable service that occurred after December 31, 1991 and before April 1, 1998, or (ii) section 27(2), in the case of pensionable service occurring after March 31, 1998, and in the form specified in section 27(3)(a) or (b), depending on which of those clauses applies; (d) participant contributions means, so far as they have not previously been returned, participant current service contributions, with interest. (2) For the purpose of determining the consecutive years referred to in subsection (1)(b), breaks in service shall be disregarded. (3) Except where specifically stated, Subdivision B of Division 1, 2 or 3 of this Part applies only with respect to service that occurred or occurs after 1991. (4) Where a provision of Division 4 uses an expression that is the subject-matter of an interpretation provision of this section, then this section applies with respect to the interpretation of that expression so far as it relates to service that occurred or occurs after 1991. Limitation of benefits where obtainable under Subdivisions A and B 16(1) Notwithstanding anything in this Part, so far as applicable, (a) where more than one type of benefit is obtainable under Subdivision A or B of Division 1, 2 or 3 of this Part and benefits corresponding to those Subdivision A or B benefits are also obtainable under Subdivision B or A thereof, as the case may be, the person entitled is permitted to take only the one type of benefit under the 2 Subdivisions, (b) if benefits under the 2 Subdivisions would otherwise be obtainable at or from different times, the person may only 20

take the benefits at or commencing from one single time under the 2 Subdivisions, and (c) where different forms of pension may be selected, only one form of pension may be selected under the 2 Subdivisions. (2) The taking of a pension in the form of a normal pension under Subdivisions A and B of Division 1, 2 or 3 of this Part is not to be considered as constituting different forms of pension for the purposes of subsection (1). Vesting based on all service 17 In any provision of this Part (including section 1(cc) where applicable) predicating entitlement to a benefit on whether or not a minimum number of years service has been accumulated, the reference to service includes service accruing before, on and after January 1, 1992. Division 1 Retirement Benefits Subdivision A For Service Before 1992 Limitation of benefits to meet tax rules 18 Benefits that relate to service that is pensionable under section 13 are limited to what is allowed by the tax rules. Normal pension based on age and service 19(1) A vested person who terminates after March 31, 1998 and has attained the age of 55 years is entitled to receive a pension in the annual amount that is equal to 2% of the highest average salary multiplied by the years of pensionable service. (2) A pension under subsection (1) is payable, (a) if the pensioner did not have a pension partner at pension commencement or if he or she did but a valid statutory declaration under section 20(3) was filed with the Minister in respect of the pension, for the life of the pensioner, or (b) if the pensioner did have a pension partner at pension commencement and such a declaration was not filed with the Minister in respect of the pension, in the form of a single life pension, payable only for the life of the pensioner with the provision that, if the pensioner dies 21

survived by that person, the pension is payable to that person for life in an amount equal to 3/4 of the pension that would have been payable to the pensioner had the latter continued to live. Pension partner protection 20(1) Notwithstanding anything in the Plan except subsections (2) and (3) and section 36(5), a pensioner who has a pension partner at pension commencement is deemed for the purposes of the Plan to choose a pension in the form specified in section 19(2)(b). (2) The pensioner may select a form of joint life pension under section 21(1), as it incorporates section 29(1)(b) or (d), with the pension partner at pension commencement as the designated nominee, rather than that referred to in subsection (1). (3) Section 28(3) applies, with the reference to section 28(6) being taken as a reference to subsection (6) as it incorporates section 28(6). (4) Section 28(4) applies. (5) Section 28(5) applies. (6) Section 28(6) applies, with the reference to section 28(3)(b) being taken as a reference to subsection (3) as it incorporates section 28(3)(b). Alternative forms of pension 21(1) A person who is entitled to receive a pension in the form specified in section 19(2)(a) is entitled, as an alternative, to select any form of pension from any of those provided for in section 29(1). (2) Where an alternative form of pension is selected under subsection (1), the pension is in an amount that is the actuarial equivalent of the pension payable in the form specified in section 19(2)(a). (3) Section 29(3) applies. Disability pensions 22(1) Section 31(1) applies, with the reference in it to section 32 being taken as a reference to section 23. (2) Subject to subsection (3), a person referred to in section 31(2) becomes and, subject to section 23, is entitled to receive a pension in the form and in the amount of a normal pension, reduced, 22

however, in amount by 3/12 of 1% for each complete month (with a proration for the additional portion, if any, of a month) by which pension commencement falls short of the 55th birthday. (3) Section 31(3) applies. (4) Section 31(4) applies, with the reference in it to section 32 being taken as a reference to section 23. Disability pension adjustments 23 Section 32 applies with the references to section 31(1) and (2) being taken as references to section 22(1) and (2) respectively. Postponement of pension 24(1) A person other than a part-time judge or half-time master who has not reached the latest pension accrual date and who is entitled to receive a pension under section 19(1) or 40(b) may postpone commencement of the pension to any date up to that date. (2) Whether or not a person referred to in subsection (1) has taken any active steps to effectuate a postponement, the pension becomes postponed when, and only when, it transpires that pension commencement has not occurred at the earliest date when, given the circumstances described in the relevant enactment referred to in subsection (1), it could have occurred. (3) When a pension that was postponed becomes payable, it is to be in the form of a normal pension and in the amount that is the actuarial equivalent of the normal pension that the person would have been entitled to receive had the postponement not been made. Failure to select pension 25 Section 34 applies. Subdivision B For Service After 1991 Tax rule limitations on benefits 26 Notwithstanding anything in the Plan but without affecting any particular provision of the Plan further limiting benefits, benefits are limited to what is allowed by the tax rules. Normal pension based on age and service 27(1) A vested person who (a) terminates after March 31, 1998, and 23

(b) either (i) has attained the age of 55 years with the sum of his or her age and judicial service amounting to at least 80 years, or (ii) has attained the age of 60 years, is entitled to receive a pension in the annual amount that is equal to 2% of the highest average capped salary multiplied by the years of pensionable service that occurred after December 31, 1991 and before April 1, 1998. (2) A vested person who (a) terminates after March 31, 1998, and (b) subject to subsection (4), has attained the age of 60 years with the sum of his or her age and judicial service amounting to at least 80 years, is entitled to receive a pension in the annual amount that is equal to 2% of the highest average capped salary multiplied by the years of pensionable service occurring after March 31, 1998. (3) A pension under subsection (1) or (2) is payable, (a) if the pensioner did not have a pension partner at pension commencement or if he or she did but a valid statutory declaration under section 28(3) was filed with the Minister in respect of the pension, for the life of the pensioner, or (b) if the pensioner did have a pension partner at pension commencement and such a declaration was not filed with the Minister in respect of the pension, in the form of a single life pension, payable only for the life of the pensioner with the provision that, if the pensioner dies survived by that person, the pension is payable to that person for life in an amount equal to 2/3 of the pension that would have been payable to the pensioner had the latter continued to live. (4) The 80 factor requirement of subsection (2)(b) does not apply to a person who terminates on or after reaching his or her latest pension accrual date. Pension partner protection 28(1) Notwithstanding anything in the Plan except subsections (2) and (3) and section 38(5), a pensioner who has a pension partner at 24

pension commencement is deemed for the purposes of the Plan to choose a pension in the form specified in section 27(3)(b). (2) The pensioner may select a form of joint life pension under section 29(1)(b), (c) or (d), with the pension partner at pension commencement as the designated nominee, rather than that referred to in subsection (1). (3) Subsections (1) and (2) do not apply where there was filed with the Minister (a) a valid statutory declaration by the person who was the pension partner at pension commencement in the form set out in, and signed in accordance with the requirements of, Form 1 of the Subschedule, (b) where that person was a pension partner within the meaning of section 1(1)(r.1)(iii) and the circumstances described in subsection (6) apply, a valid statutory declaration by the pensioner in the form set out in Form 2 of the Subschedule, or (c) a matrimonial property order. (4) Notwithstanding subsection (3), a declaration under that subsection is not valid if it is made more than 90 days before pension commencement. (5) A pension payable under subsection (2) is in an amount that is the actuarial equivalent of the pension payable in the form of a normal pension. (6) The circumstances referred to in subsection (3)(b) are that (a) the pension partner was separated from the pensioner for at least 3 years prior to pension commencement, and (b) the Minister has not been notified in writing that any matrimonial property proceeding designed to obtain a matrimonial property order has been or is about to be commenced. Alternative forms of pension 29(1) A person who is entitled to receive a pension in the form specified in section 27(3)(a) is entitled, as an alternative, to select a form of pension from one of the following: (a) a guaranteed term pension, payable for 25

(i) whichever term, being 5, 10 or 15 years, is selected by the pensioner, or (ii) his or her life, whichever is the longer; (b) a joint life pension, payable during the joint lives of the pensioner and a nominee designated by the pensioner and which, after the death of either, continues to be payable (i) in the same amount as the amount payable before the death, or (ii) in the amount of 2/3 of it, to the survivor for life; (c) a joint life pension, payable during the life of the pensioner with the provision that, if the pensioner dies survived by a nominee designated by the pensioner, the pension is payable to that person for life in an amount equal to 3/4 of the pension that would have been payable to the pensioner had the latter continued to live; (d) a joint life pension described in clause (b) that is payable, in the event that the survivor dies within 5 years of pension commencement, for the remainder of the guaranteed term of 5 years from pension commencement in the same amount as was payable to the survivor immediately before the survivor s death. (2) Where an alternative form of pension is selected under subsection (1), the pension is in an amount that is the actuarial equivalent of the pension payable in the form specified in section 27(3)(a). (3) The designated nominee referred to in subsection (1) for a joint life pension must, at the time of pension commencement, be eligible for post-retirement survivor benefits under and within the meaning of the tax rules. Pension on early retirement 30(1) A vested person who terminates after March 31, 1998 and has attained the age of 55 years without meeting the requirements of section 27(1)(b) is entitled to receive a pension, with respect to pensionable service that occurred after December 31, 1991 and before April 1, 1998, in the form and in the amount of a normal pension, reduced however, if applicable, in amount by 3/12 of 1% for each complete month (with a proration for the additional 26

portion, if any, of a month) by which pension commencement falls short of the date when he or she attains the age of 60 years or the date when his or her future age and the accumulated judicial service to pension commencement would amount to 80 years, whichever of those dates occurs first. (2) A vested person who terminates after March 31, 1998 and has attained the age of 55 years without meeting the requirements of section 27(2)(b) (taking into account, if applicable, the effect of section 27(4)) is entitled to receive a pension, with respect to pensionable service occurring after March 31, 1998, in the form and in the amount of a normal pension, reduced however, if applicable, in amount by 3/12 of 1% for each complete month (with a proration for the additional portion, if any, of a month) by which pension commencement falls short of (a) the date when he or she attains the age of 60 years, or (b) the date when his or her future age and accumulated judicial service to pension commencement would amount to 80 years or, if sooner, the latest pension accrual date, whichever of the dates specified in clauses (a) and (b) occurs last. Disability pensions 31(1) Subject to subsection (3), a vested person who, before attaining the age of 55 years, (a) satisfies the Judicial Council that he or she has become totally disabled, and (b) either terminates as a result of that disability or had previously terminated and had elected to receive a deferred pension, becomes and, subject to section 32, is entitled to receive a normal pension. (2) Subject to subsection (3), a vested person who, before attaining the age of 55 years, (a) satisfies the Judicial Council that he or she and (i) has become incapable of effectively performing the regular duties of his or her work as a result of mental or physical impairment, and (ii) is not totally disabled, 27

(b) either terminates as a result of that impairment or had previously terminated and had elected to receive a deferred pension, becomes and, subject to section 32, is entitled to receive a pension in the form and in the amount of a normal pension, reduced, however, by the amount by which the pension would have been reduced had section 30 been applicable and had termination occurred under the provisions of that section. (3) A person is not entitled to receive any pension if on LTDI. (4) In this section and in section 32, totally disabled means suffering from a physical or mental impairment that can reasonably be expected to last for the remainder of the person s lifetime and that prevents the person from engaging in the duties of a judge. Disability pension adjustments 32(1) Where a person who has not yet attained the age of 55 years is in receipt of a pension under section 31(1) and (a) does not submit the evidence required under section 65 of the continuing total disability, or (b) the Judicial Council finds that he or she is no longer totally disabled, the Minister may have the pension reduced to the amount provided for by section 31(2). (2) Where a person who has not yet attained the age of 55 years is in receipt of a pension under section 31(2) and satisfies the Judicial Council that he or she is totally disabled, the Minister may upgrade the pension to a pension under section 31(1) with effect from the date of the application for the upgrading. (3) Where a person who has not yet attained the age of 55 years is in receipt of a pension under section 31(2) and the Minister is no longer satisfied that he or she is eligible for the pension, the Minister may eliminate payment of the pension. Postponement of pension 33 A person other than a part-time judge or half-time master who has not reached the latest pension accrual date and who is entitled to receive a pension under section 27, 30 or 41(b) may postpone commencement of the pension to any date up to that date. 28

Failure to select pension 34 A person, other than a surviving pension partner within the meaning of section 35(2), who is requested in writing by the Minister to make a choice of pensions and who fails to do so within 90 days after the request is sent is deemed for the purposes of the Plan to have chosen a pension in the form of a normal pension. Division 2 Death Benefits Application of Division 35(1) This Division applies with respect to a person who dies while (a) a participant, or (b) a former participant who is not receiving a pension but is entitled to benefits. (2) In this Division, surviving pension partner means the individual (if any) who was the pension partner of the deceased immediately before the death occurred, and who survived the deceased. Subdivision A For Service Before 1992 Pension partner s benefit on death before pension commencement 36(1) Where there is a surviving pension partner, that pension partner is entitled to choose to receive (a) a pension for life in an amount equal to 3/4 of the normal pension, or (b) a pension provided for in subsection (2), with the pension specified in clause (a) applying automatically if no such choice is made or made in time. (2) The pension referred to in subsection (1)(b) is the pension described in section 38(2). (3) The pensions addressed in subsection (2), as it incorporates section 38(2)(c) (as deemed to have been selected by the deceased), are (a) a joint life pension payable during the joint lives of the deceased and the surviving pension partner and which, 29

after the death of the deceased, is payable to that pension partner for life in the same amount as would have been payable before the death but in an amount that is the actuarial equivalent of the pension payable in the form specified in section 19(2)(b), and (b) a term only pension, payable for whichever term, being 5, 10 or 15 years, is selected by the pension partner and in the amount of the guaranteed term pension that the deceased would have received under section 21(1) (with that selected term) had the deceased selected that guaranteed term pension and continued to live until the end of that term, and that is the actuarial equivalent of the pension payable in the form specified in section 19(2)(a). (4) Section 38(4) applies with respect to this section. (5) Where this section applies, nothing in section 20 does. (6) A choice under subsection (1) of a pension referred to in subsection (1)(b) must be made within 90 days after a request made by the Minister to the surviving pension partner to do so has been sent. Benefits to other beneficiaries 37 Section 39 applies with the reference to section 29(1)(a) being taken as a reference to section 21(1), as it incorporates section 29(1)(a). Subdivision B For Service After 1991 Pension partner s benefit on death before pension commencement 38(1) Where there is a surviving pension partner, that pension partner is entitled, (a) if the deceased was vested, to choose to receive, subject to any maximum limit imposed by the tax rules, (i) a pension for life in an amount equal to 2/3 of the normal pension, or (ii) a pension provided for in subsection (2), with the pension specified in subclause (i) applying automatically if no such choice is made or made in time, or 30