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Legislative Assembly Statute Law Amendment Act, 2006, S.O. 2006, c. 36 - Bill 173

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EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 173 and does not form part of the law.  Bill 173 has been enacted as Chapter 36 of the Statutes of Ontario, 2006.

 

The Bill amends the Legislative Assembly Act, the MPPs Pension Act, 1996 and the Executive Council Act.  The amendments revise the annual salary of a member of the Assembly, the severance allowance payable to a former member and the contributions made by the Minister of Finance to each member’s registered plan account.

Provision is made to allow current members to choose to have their annual salary, their severance allowance and the Minister’s contribution to their registered plan account determined according to the current provisions of those Acts, instead of the amended provisions.

Annual salary:

Subsection 61 (1) of the Legislative Assembly Act provides that the annual salary of a member of the Assembly shall be equal to 75 per cent of the annual sessional allowance paid to members of the House of Commons under Part IV of the Parliament of Canada Act.

Severance allowance:

Section 69 of the Legislative Assembly Act, governing the severance allowance paid to former members of the Assembly, is re-enacted.  The severance allowance is to be determined with reference to the former member’s length of service and his or her average annual remuneration.  Average annual remuneration is calculated in the specified manner, and it is based on the annual salary that the former member received under sections 61 and 62 of the Legislative Assembly Act and under section 3 of the Executive Council Act.

Contributions to registered plan account:

An amendment to subsection 24 (1) of the MPPs Pension Act, 1996 increases the level of contributions to be made by the Minister of Finance to the registered plan accounts of members of the Assembly.  Currently, the Minister is required to credit to each member’s account an amount equal to 5 per cent of the member’s remuneration each month.  The amendment increases the percentage to 10 per cent.

A new subsection 24 (3) of the Act specifies that, if the amount that the Minister is required to credit to a member’s account for a year under subsection 24 (1) exceeds the “money purchase limit” for the year as defined in the Income Tax Act (Canada), the Minister shall pay the excess amount to the member.  Currently, any excess amount is neither credited to the member’s account nor paid to the member.

Option for current members:

Section 61.1 of the Legislative Assembly Act enables a current member to choose to be bound by the current provisions that govern his or her annual salary and severance allowance under the Legislative Assembly Act and that govern the contributions by the Minister of Finance to the member’s registered plan account under the MPPs Pension Act, 1996, instead of the provisions as amended by this Bill.  Notice of the member’s choice must be given to the Speaker within 60 days after the Bill receives Royal Assent, and the notice is permanent and irrevocable.  A list of the members who give this notice is to be made public by the Speaker.

 

chapter 36

An Act to amend the Legislative Assembly Act, the MPPs Pension Act, 1996 and the Executive Council Act

Assented to December 21, 2006

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

Legislative Assembly Act

1. (1) Subsections 61 (1) to (1.4) of the Legislative Assembly Act are repealed and the following substituted:

Annual salary of members

(1) Every member of the Assembly shall be paid an annual salary in an amount equal to 75 per cent of the annual sessional allowance paid to members of the House of Commons under Part IV of the Parliament of Canada Act.

Same

(1.1) For greater certainty, whenever the annual sessional allowance paid to members of the House of Commons under that Act changes, a corresponding change shall be made to the annual salary of every member of the Assembly.

Transition

(1.2) Subsections (1) and (1.1), as re-enacted by the Legislative Assembly Statute Law Amendment Act, 2006, do not authorize a retroactive change to be made to the annual salary of a member of the Assembly for his or her service during a period before that Act received Royal Assent.

Annual salary of certain members

(1.3) Despite subsection (1), if a member to whom section 61.1 applies gives the notice described in that section to the Speaker, the member’s annual salary is the amount determined in accordance with subsections (1) to (1.4) as they read immediately before their re-enactment by subsection 1 (1) of the Legislative Assembly Statute Law Amendment Act, 2006.

(2) Section 61.1 of the Act is repealed and the following substituted:

Transition: option of certain members

61.1 (1) This section applies to every person who is a member of the Assembly on the day that the Legislative Assembly Statute Law Amendment Act, 2006 receives Royal Assent.

Notice to the Speaker

(2) Within 60 days after the Legislative Assembly Statute Law Amendment Act, 2006 receives Royal Assent, the member may notify the Speaker in writing that the member chooses to continue to have his or her salary, his or her severance allowance and the amount to be credited to his or her registered plan account determined in accordance with the applicable provisions of the Legislative Assembly Act, the MPPs Pension Act, 1996 and the Executive Council Act as they read immediately before the Legislative Assembly Statute Law Amendment Act, 2006 received Royal Assent.

Same

(3) The notice must be given in a manner authorized or approved by the Speaker.

Effect of notice

(4) A notice given in accordance with subsections (2) and (3) is permanent and irrevocable.

Public information

(5) The Speaker shall make available for inspection by the public a list of the names of members of the Assembly who have given the notice described in this section.

(3) Subsection 62 (1) of the Act is amended by striking out “the annual salary set out in subsection 61 (1)” in the portion before paragraph 1 and substituting “his or her annual salary under section 61”.

(4) Section 63 of the Act is amended by striking out “subsections 61 (1) and 62 (1)” and substituting “sections 61 and 62”.

(5) Section 63 of the Act is amended by adding the following subsection:

Interpretation

(2) For the purposes of subsection (1), a payment to a member under subsection 24 (3) of the MPPs Pension Act, 1996 is not an allowance or pension.

(6) Section 69 of the Act is repealed and the following substituted:

Severance allowance

69. (1) A severance allowance is payable to or in respect of the following persons:

1. A person who is a member of the Assembly immediately before the Assembly is dissolved or is ended by the passage of time and who does not become a member of the following Assembly.

2. A member of the Assembly who resigns his or her seat.

3. A person who was a member of the Assembly on the day of his or her death or a person who was a member of the Assembly immediately before the Assembly was dissolved or ended by the passage of time and who died before the polling day in the general election that followed the dissolution or ending.

Amount of severance allowance

(2) The amount of the severance allowance is determined as follows:

1. For a person who was a member of the Assembly for a period of four years or less, the allowance is equal to one-half of his or her average annual remuneration determined in accordance with subsection (3).

2. For a person who was a member of the Assembly for a period of more than four years up to and including eight years, the allowance is equal to the amount of his or her average annual remuneration determined in accordance with subsection (3).

3. For a person who was a member of the Assembly for a period of more than eight years, the allowance is equal to one and one-half times his or her average annual remuneration determined in accordance with subsection (3).

Average annual remuneration

(3) A person’s average annual remuneration is the average of the person’s annual salary rate, as described in subsection (4), in each month of the period of 36 consecutive months of his or her service as a member of the Assembly that produces the highest average but, if the person does not have a period of 36 consecutive months of service, his or her average annual remuneration is the average of his or her annual salary rate, as described in subsection (4), in each month of the person’s longest period of consecutive months of service as a member of the Assembly.

Annual salary rate

(4) A person’s annual salary rate is the sum of,

(a) his or her annual salary under subsection 61 (1), including the amount of any increase that the person is receiving under section 62 because he or she holds a position described in section 62; and

(b) the annual salary, if any, that he or she is receiving under section 3 of the Executive Council Act.

Restriction

(5) A person is not eligible to receive more than one severance allowance in respect of the same period of service as a member of the Assembly.

Exception for certain members

(6) Despite subsections (1) to (5), if a member to whom section 61.1 applies gives the notice described in that section to the Speaker, this section, as it read immediately before it was re-enacted by subsection 1 (6) of the Legislative Assembly Statute Law Amendment Act, 2006, continues to apply with respect to the member.

MPPs Pension Act, 1996

2. (1) Subsection 24 (1) of the MPPs Pension Act, 1996 is amended by striking out “5 per cent” and substituting “10 per cent”.

(2) Section 24 of the Act is amended by adding the following subsection:

Same, for certain members re-elected in 2007

(1.1) Despite subsection (1), if a plan member to whom section 61.1 of the Legislative Assembly Act applies gives the notice described in that section to the Speaker, this section, as it read immediately before it was amended by section 2 of the Legislative Assembly Statute Law Amendment Act, 2006, continues to apply with respect to the member.

(3) Section 24 of the Act is amended by adding the following subsection:

Payment of excess amount

(3) Each year, the Minister shall pay to a plan member the amount, if any, by which the amount that the Minister is required by subsection (1) to credit to the member’s registered plan account for the year exceeds the money purchase limit described in subsection (2) for the year.

(4) Subsection 25 (2) of the Act is repealed and the following substituted:

Other payments by Minister

(2) The Minister shall pay from the Consolidated Revenue Fund the amounts that are payable under subsection 24 (3).

Executive Council Act

3. Section 3 of the Executive Council Act is amended by adding the following subsection:

Same

(4.2) Despite subsection (4.1), if a person who is entitled to a salary under this section is a member of the Assembly to whom subsection 61 (1.3) of the Legislative Assembly Act applies, references in this section to “the annual salary of a member of the Assembly” are deemed to be references to the person’s annual salary as determined under subsection 61 (1.3) of that Act.

Commencement

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

Short title

5. The short title of this Act is the Legislative Assembly Statute Law Amendment Act, 2006.