Members' Handbook
REMUNERATION AND BENEFITS
REMUNERATION
58. BASIC INDEMNITY
Pursuant to Section 17 of the Legislative Assembly and Executive Council Act, all Members are entitled to an annual indemnity or salary of $110,761. This indemnity is paid in 26 bi-weekly installments with deductions for income tax, Canada Pension Plan, and the various benefit plans that Members select. No deduction is made for employment insurance since Members do not qualify for that benefit.
59. INDEMNITIES FOR EXTRA DUTIES
A further indemnity is paid to a Member holding an office in addition to that of MLA. These amounts, payable each fiscal year, are paid on a bi-weekly basis and are subject to the same deductions as the basic indemnity:
Speaker ………………………………………………….$48,210
Premier …………………………………………………..$84,241
Minister …………………………………………………..$59,281
Deputy Speaker . ………………………………………..$7,800
Deputy Chair Committee of the Whole ……...............$4,682
Chair of the Standing Committee
on Accountability and Oversight .….….………….........$10,184
Chair of a Standing Committee………………………....$6,911
Chair of Special Committee …………………..…..........$3,456
Chair of Caucus ………………………………………....$3,456
60. ANNUAL INCREASES
The Legislative Assembly and Executive Council Act provides that a Member’s Basic Indemnity and Indemnity for Extra Duties are automatically adjusted each year by the percentage increase or decrease in the Consumer Price Index between the previous calendar year and the calendar year before that.
61. TABLING OF REPORTS
Section 35 of the Legislative Assembly and Executive Council Act directs that each year the Speaker table an annual report including the details of all indemnities, allowances and expenses paid to each Member in the previous fiscal year.
Section 21 of the Act further directs the Speaker to table a report setting out any amendments to Members’ basic indemnities after adjustments are made on April 1 each year, in accordance with percentage increases or decreases in the Consumer Price Index.
BENEFITS
62. ELIGIBILITY
All Members of the Legislative Assembly, and in some cases a Member’s spouse and dependent children, are eligible for the benefits outlined below. It should be noted that Members are not employees of the Government of Northwest Territories.
All Members are eligible to receive the same medical travel, health, dental, and life insurance benefits available to senior managers in the public service. Eligibility for these benefits ceases for a Member on Polling day of a new election, as per section 3 of the LAEC Act, or when the Speaker or a Minister no longer hold office, as per sections 45 and 69 of the LAEC Act. Failure to complete required documentation can adversely affect a Member’s eligibility for benefits.
The following Legislative Assembly staff can provide Members with assistance and information on benefits:
Pension Plan - Deputy Clerk, Members’ and Precinct Services
Dental Plan - Client Service Manager, Department of Finance
Public Service Health Care Plan(PSHCP) - Client Service Manager, Department of Finance
Public Service Management
Insurance Plan (PSMIP) - Client Service Manager, Department of Finance
Travel Accident Insurance - Client Service Manager, Department of Finance
Long Term Disability Insurance (LTD) - Client Service Manager, Department of Finance
Medical Travel Assistance – Client Service Manager, Department of Finance
63. REGISTERED PENSION PLAN
The Northwest Territories Legislative Assembly provides a contributory pension plan for its elected Members. The plan is registered under the Canada Income Tax Act. The Legislative Assembly Retiring Allowances Act sets out the provisions of the basic MLA Pension Plan, in which all Members participate. Members are required to join this “Registered Plan” as soon as they are elected. Pension forms will be provided to each Member for completion.
Members contribute 6.5% of their pensionable income, which is calculated as all taxable income less the Northern Allowance. The right to receive benefits vests with the Member after four years of service, or the completion of one full term of office, whichever comes first.
Members will receive, upon reaching pensionable age, two percent of the average of their four best years’ taxable income multiplied by the number of years of service, to a maximum of 30 years. Pensionable age is the earliest of 60 years, 30 years of service or the sum of age plus years of service equal to 80.
A Member who ceases to be a Member may elect to begin receiving a pension at any time. The amount of the pension will be reduced in proportion to the number of months remaining until the Member reaches pensionable age.
The pension provided under this plan is indexed to increase with the cost of living.
The pension plan provides a death benefit for a Member’s surviving spouse, dependent children or other designated beneficiary. The amount of the benefit depends on length of service, family status and whether or not the pension has started.
64. SUPPLEMENTARY PENSION PLAN
An optional pension plan, the “Supplementary Plan” was re-introduced in 2001 during the 14th Assembly. The plan is administered under the Supplementary Retiring Allowances Act. Members are given the option to vest into the plan within 60 days of being sworn-in as a Member of each successive Legislative Assembly of which they become a Member. Those Members that chose to vest into the plan must contribute an additional 2.5 % of pensionable income. The plan is not registered with the Canada Revenue Agency as a pension plan and its benefits are not subject to federal legislation limiting pension benefits (although there are other broader tax implications with this plan).
The pension plan also provides a death benefit for a Member’s surviving spouse, dependent children or other designated beneficiary. The amount of the benefit depends on length of service, family status and whether or not the pension has started.
65. DENTAL PLAN
The plan provides 100% reimbursement for all eligible expenses, subject to a yearly deductible of $25 for single coverage and $50 for family coverage. Major restorative work (crowns, bridges, dentures, etc.) is reimbursed at 50%. Dental coverage (excluding orthodontic services) is limited to $1,500 per year per dependent. Members should note that the benefit year is from April 1 to March 31 of the following year.
The plan provides orthodontic coverage for your dependents under the age of 19. Reimbursement is limited to 50% of actual costs, to a maximum of $4,000 per dependent per lifetime.
Coverage comes into effect six months after a Member is elected.
Details of the plan are outlined in the Dental Plan Booklet.
66. PUBLIC SERVICE HEALTH CARE PLAN (PSHCP)
This insurance provides 80% reimbursement for all eligible expenses, subject to a yearly deductible of $60 for single coverage and $100 for family coverage.
This insurance provides extended health care benefits (in addition to the Northwest Territories Extended Health Care Benefits) for specialist services, prescription drugs, vision care, rental of hospital equipment, nursing assistance, ambulance services, etc. Hospital benefits are also available and there is reimbursement for the cost of semi-private or private rooms up to $220 per day.
The monthly premiums are paid by the Legislative Assembly and coverage is optional. The benefit year is January 1 to December 31. Details of this plan are outlined in the PSHCP booklet.
67. PUBLIC SERVICE MANAGEMENT INSURANCE PLAN (PSMIP)
This life insurance plan has four parts:
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Basic Life - two years of basic salary;
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Supplementary Life - one year of basic salary;
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Accidental Death and Dismemberment - $250,000 for accidental death or an appropriate percentage payable for dismemberment; and
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Dependents' Insurance - both life insurance and accidental death and dismemberment benefits (double indemnity) of $5,000 for your spouse and $2,500 for each dependent child over 14 days of age.
Participation in PSMIP is optional. Premiums are based on age and remuneration. The monthly premiums are paid by the Legislative Assembly, with the exception of the Supplementary Life insurance, which is paid by the Member.
Details of this plan are outlined in the PSMIP booklet.
68. ACCIDENTAL DEATH & DISMEMBERMENT – DUTY TRAVEL
This group insurance policy provides coverage for accidental death and dismemberment, with a policy limit of $200,000.
Compensation is only for the greatest loss sustained as the result of any one accident.
This benefit will apply to injuries sustained anywhere in the world, 24 hours a day.
There will be no payment for any loss, fatal or non-fatal, caused or contributed to by:
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suicide or self-destruction, actual or attempted, while sane or insane; or
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any act of declared or undeclared war; or
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service in the Armed Forces of any country; or
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acting as a pilot, operator or member of the crew of any aircraft.
This coverage is in addition to any other benefits or insurance plan.
Completed claim forms will be submitted to the Insurer, who will assess the claim. The Insurer will pay the Members or the Member’s beneficiary the claim directly.
Premiums are paid by the Legislative Assembly.
69. LONG TERM DISABILITY (LTD)
This insurance provides up to 70% of annual remuneration if a Member becomes disabled. Benefits are payable after a waiting period of 13 weeks.
For the first 24 months, the disability must prevent the Member from performing the duties of the position. After 24 months, the disability must prevent the Member from performing the duties of any commensurate occupation. A commensurate occupation is one for which the Member is reasonably qualified by training, education, or experience. The rate of pay for the commensurate occupation must be at least 2/3 of the current rate for the regular occupation.
Long Term Disability Insurance benefits will continue while the disability lasts, or until the Member’s 65th birthday, whichever is earlier.
Monthly premiums are paid by the Legislative Assembly.
70. MEDICAL TRAVEL ASSISTANCE
Medical travel assistance is granted for travel from a Member’s community of residence for non-elective medical treatment. The coverage is for the Member, spouse, and dependent children. Reimbursement will be determined on a trip-by-trip basis subject to the following provisions.
Payment will not exceed:
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return transportation to the point of departure or the nearest place where adequate treatment is available, whichever results in the lesser expense;
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25 days hotel accommodation and meal costs, at duty travel rates. Reimbursement of these costs are not applicable to periods spent in a treatment facility;
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up to a maximum of $50 per day for accommodation, meals, and transportation (i.e. taxis to and from appointments) expenses for any periods beyond 25 days and not to exceed 40 days; and
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the lesser of return taxi or shuttle bus fare between the airport and the treatment centre.
Reimbursement is provided for overnight hotel accommodation en route when travel to the treatment centre is interrupted by weather or other circumstances completely beyond your control.
When travel is by privately owned car and the total cost of the trip, including the per diem rate for meals, incidentals and lodging expenses, exceed the cost of the same journey by ordinary commercial means, reimbursement will be limited to the commercial cost.
Claims must be supported by a form completed by a qualified medical practitioner certifying that medical travel is necessary as the treatment was non-elective, required for the health of the patient, and could not be provided by the facilities or services available in the community of residence. The medical practitioner submits the form to Stanton Territorial Hospital for approval.
Medical travel assistance will not be provided if a similar benefit is available through another employer. Double coverage is not available if more than one family member is employed by the Government. Every effort must be made to schedule medical appointments/procedures while on other forms of leave.
MEDICAL TRAVEL - DENTAL
The GNWT provides Medical Travel Assistance for some dental procedures. The requirements for approval for medical travel for dental procedures are narrow. Claims must be supported from a qualified healthcare professional or practitioner which can include a dentist, a licensed medical doctor, nurse practitioner, community health nurse or midwife stating that:
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the treatment is non-elective;
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the urgent treatment is needed immediately or the patient’s health could be jeopardized; and
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the treatment could not be provided by the facilities or services available in the community of residence.
In addition, the claim must also be approved by Green Shield, the GNWT’s dental coverage provider.
Medical travel will not be covered for the following procedures:
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Routine Extraction of Wisdom Teeth
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Routine Root Canals
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Periodontal (soft tissue work, e.g., dentures)
Each medical travel claim for dental procedure must be assessed by a healthcare professional before Medical Travel is approved.
ESCORT
The travel expenses of a non-medical escort may be reimbursed. A qualified medical practitioner must certify that it is necessary for the patient to be accompanied by some other person.
The escort must be 19 years of age or older.
71. INCOME TAX
A Member’s annual indemnities, Allowance for Expenses, Entertainment Allowance and the Northern Allowance are taxable.
Reimbursements made for receipted constituency and capital accommodation expenses, the allowance for expenses and the daily meal and incidental allowances paid at Federal Treasury Board rates for travel by a Member are not taxable.
Members are required to complete a TD1 form at the beginning of each term, which may be amended at any time. TD1 forms are available from Members’ and Precinct Services.
72. TRUST AGREEMENT
Where the Integrity Commissioner advises the Speaker or a Minister to establish a trust agreement during their term of office as referred to in section 82 of the Legislative and Executive Council Act (LAEC Act), the Speaker or Minister are eligible to be reimbursed for expenses as set out in 12.4.(2) of the Indemnities, Allowances and Expense Regulations.
This includes reasonable costs to establish, administer and maintain a trust, costs of any commissions paid for converting, transferring or selling assets, costs for removing a Speaker or Minister’s name from a registry, costs of any accounting, administrative, financial or legal services required due to complex arrangements, and costs to dissolve a trust.
Members are responsible for the payment of invoices. Claims for reimbursement are to be submitted to Members’ and Precinct Services. These claims should include a detailed breakdown of the charges levied, including number of hours charged and the applicable hourly rate.