Frequently Asked Questions for Members
1. How much do I contribute to the pension plan?
Members contribute 10% of each of the two components of an MLA's remuneration: Member's Indemnity and Executive Council Salary (if applicable). Contributions are paid for a maximum of 15 years. Certain other positions are counted as equivalent to Executive Council for pension purposes. These are: Speaker of the House, Deputy Speaker of the House, Leader of the Opposition and Leader of a recognized party.
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2. What happens to my contributions?
Contributions go to Consolidated Revenues from which pension benefits are paid.
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3. Does the Province contribute towards my pension?
Yes. The Province's budget gets charged each year with an amount equal to the contributions made by MLAs plus an amount sufficient to cover any shortfall between the contributions and the total cost of pension benefits earned in a year.
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4. How is my pensionable service measured?
Your service begins to accrue on the first day of the month in which you are elected to the House of Assembly, regardless of which day of the month the election is held. You are credited with a full year of pensionable service for each twelve calendar months regardless of the number of days the House of Assembly sits. You stop accruing pensionable service on the last day of the month in which you cease to be a Member of the Legislative Assembly.
If you resign as an MLA, your last month is the month in which your resignation is effective. If you do not contest an election, or are unsuccessful in an election, your pensionable service ceases on the last day of the month in which the election is held.
You may only be credited with a maximum of 15 years of pensionable service.
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5. How is my pension calculated?
A monthly pension benefit is based on the following:
- 5% times Indemnity Service (up to 15 years) times 3 year highest average Indemnity;
- 5% times Executive Council Service (up to 15 years) times 3 year highest average Executive Council Salary
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6. When am I eligible for a pension?
There are two components to eligibility: service and age. You must have at least five years of service and have been elected twice. i.e. two general elections or a by-election and a general election.
To be eligible for an unreduced pension, you must be 55 years of age. A reduced pension is payable as early as 45 years of age. The reduction factor is 0.5% for each month from your actual age to age 55. The maximum reduction is 50%.
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7. What happens if I am not eligible for a pension?
If you cease to be a Member of the Legislative Assembly and have less that 5 years of service and/or have not been elected twice, you may apply for a refund of your contributions plus interest. The contributions which you made on your indemnity and Executive Council salary, if applicable, may be transferred tax-free to an RRSP. Contributions on your tax-free allowance may only be transferred to an RRSP if you have sufficient RRSP room; otherwise they will be paid directly to you.
Alternatively, you may leave your contributions in the pension plan. Should you become a Member of the Legislative Assembly again at some future time, your previous service would be added to your future service in the calculation of a possible future pension. If you do take a refund and subsequently become a Member again, you may repay your refund and re-instate your service.
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