The Members’ Remuneration and Pensions Act authorizes a defined-benefit pension plan for Members. Every Member under age 71 is required to participate in the plan. 

Contributions 

Contributions are fixed at 11% of a Member’s pensionable earnings (basic compensation and any additional salary earned). The amount of government contributions is determined by the Public Service Pension Board. All contributions are held and administered by the B.C. Pension Corporation on behalf of the Legislative Assembly. 

Eligibility 

A Member is not eligible for a pension unless they have served in the Legislative Assembly for at least six years, including the years the Member served immediately prior to the introduction of this plan (April 2007). 

Benefit 

The amount of the annual pension is based on a benefit accrual rate of 3.5% of the highest 3-year average annual pensionable earnings. The maximum pension a Member may receive is 70% of these earnings. 

The normal form of pension for a Member with a spouse at retirement is joint life, with the pension payable to the surviving spouse reduced to 60% on the Member’s death. For a Member without a spouse at retirement, the pension is normally for life. 

A Member receives an unreduced pension at age 65, with the option for a retired Member to take a reduced pension between the ages of 60 and 65 (3% reduction for each year pension payments commence before the Member’s 65th birthday). 

Options at End of Time in Office 

Under six years of Legislative Service 

Refund of contributions with interest 

Six or more years of Legislative Service (vested) 

  • Under the age of 60: No refund of contributions option. Locked-in commuted value or deferred pension (the deferred pension is payable no earlier than age 60 and is reduced if it commences before age 65). 
  • 60, but under 65: No locked-in commuted value or refund of contributions. Immediate or deferred pension. The deferred pension is payable no earlier than age 60 and is reduced if it commences before age 65. 
  • 65, but under 71: Immediate unreduced pension or pension can be delayed until the end of the year of reaching latest retirement age of 71. No locked-in commuted value or refund of contributions. 

Canada Pension Plan 

Members must contribute to the Canada Pension Plan (CPP) and premiums are deducted from the bi-weekly pay. Members who are currently receiving CPP benefits are responsible for providing documentation to Payroll Services for an exemption if they qualify.