Thank you. Total expenditures, $86.019 million. Agreed?

Agreed.

Thank you. Does the committee agree that consideration of the Department of Transportation estimate is concluded?

Agreed.

Thank you. I would like to thank the honourable Minister and the witnesses for appearing before the committee. Thank you. I would like to call the committee back to order please. Thank you. We have agreed earlier that we were going to deal with Bill 14, An Act to Amend the Legislative Assembly Retiring Allowances Act and the Supplementary Retiring Allowances Act. I believe Mr. Ng will read the opening remarks on behalf of the Department of Justice.

Thank you, Mr. Chairman and colleagues, on behalf of the Management and Services Board and all Members of Caucus, I would like to present amendments to the Legislative Assembly Retiring Allowances Act and the Supplementary Retiring Allowances Act. These amendments are primarily for the purpose of bringing our pension legislation into line with federal tax legislation and the Revenue Canada rules regarding pension plans. Mr. Chairman, these amendments continue the pension reform that this Legislature began in 1995 and 1996 when we eliminated the supplementary plan for new Members, and bring our pension plan cost and benefits well into line with our employees' pension plan and other employment pension plans in Canada.

Mr. Chairman, the legislation makes the following changes:

1. The age at which a Member can receive a full pension has been changed from 55 years to 60 years, 30 years of service or a combination of age plus service. This is more in line with pension benefits available in the public and private sector.

2. The contribution rate for Members has been changed to reflect the fact that Members no longer contribute to or are to accrue benefits under the supplementary plan. This amendment has been made retroactive to reflect the fact that the supplementary plan was eliminated in 1995. Again, the new contribution rate is similar to the rate paid by our employees in their existing pension plan.

3. Maximum benefits payable to Members have been reduced for all service earned after January 1, 1992.

4. Pension benefits available to spouses of deceased Members have been amended to comply with federal pension legislation.

5. The actuarial increase for pensions not taken at retirement age, but collected by former Members at some later date, is being eliminated in both the registered and the supplementary plan, effective January 1, 1998. This will mean a one-time payout from the plans' accumulated surplus, in respect of some former Members who retired after the age of 55 and who had not been receiving the benefit of this actuarial increase. After this one-time payout, no Member will be to an actuarial increase in their pension, regardless of how old the Member is when the Member collects his or her pension.

6. A minor amendment is being made to the Supplementary Retiring Allowances Act to bring into force a section on spousal death benefits which should have been brought into force at the time the supplementary plan was created.

7. Finally the proposed legislation would allow Members to elect to take their pension funds out of the Assembly plan and transfer these funds into a Registered Retirement Savings Plan of the Member's choice. This amendment has no cost implications to the Assembly Pension Plan, yet provides Members with some flexibility in terms of managing their pension fund.

Mr. Chairman, I repeat my opening comments that these amendments are required in order to comply with federal tax legislation. The amendments do not expand Member's pension benefits, in fact, they are intended to reduce the amount of pension benefits that are available to Members as required by federal statute. They are a positive step in the pension reform that this Legislature began at the beginning of the 13th Assembly. I would be pleased to answer any questions that Members may have on the effect of these amendments.

Thank you, Mr. Ng. I am advised we can go right down to general comments. Before I open the floor for general comments, I would like to ask the Minister to take the witness table and bring in the witness. Mr. Minister.

Mr. Minister: Yes, thank you.

Do we agree?

Agreed.

Proceed, Mr. Minister. Mr. Minister, for the record please introduce the witnesses to the committee.

Thank you, Mr. Chairman. Mr. Chairman, to my left David Hamilton, Clerk of the Assembly. To my right Diane Buckland, legislative counsel, Department of Justice. Thank you.

Thank you. Welcome to the committee. The floor is now open for general comments from the floor if there are any. Do you wish to go clause by clause? Mr. Krutko.

Thank you. If you wish to designate one of your witnesses to respond. Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, primarily it is to bring the Legislative Assembly retirement plans in line with our employee's pension plans and with other

employment pension plans across Canada and not in line with the federal plans.

Thank you. Mr. Miltenberger.

Thank you, Mr. Miltenberger. Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, primarily the amendments before us are reflective conform with federal income tax regulations. As I indicated in my opening comments, some of those things like the age of eligibility without penalty and maximum benefits as a result of years served and eliminating the actuarial increase and having the option of transferring out of the plan after having served.

Thank you, Mr. Ng. Mr. Miltenberger.

Thank you, Mr. Miltenberger. Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, the Member is correct.