Former Tory leader Len Simms is earning more than $130,000 as chairman and chief executive officer of the Newfoundland and Labrador Housing Corporation at the same time as he collects a public sector pension as a former member of the provincial legislature.
According to The Western Star (see story below), Simms has been donating his House of Assembly pension to charities under a clause contained in his employment contract since he was appointed in 2005. The Western Star reports that Simms donated more than $30,000 to charities in or around his former district of Grand Falls in 2006.
Simms, who is 64 years of age, represented the district from 1979 to 1995. He served as Speaker of the House from 1979 to 1982, and as a cabinet minister in several portfolios under Brian Peckford until 1989. Simms was a leadership candidate for the Progressive Conservative Party in 1989 and led the party between 1991 and 1995. Simms replaced Tom Rideout who served as party leader from 1989 to 1991.
The story of Simms being back in his old job isn't really news since the announcement was made intially right after the provincial general election in October. Simms left his job in September saying the contract had expired - right before the election - spent a few weeks running the campaign and then got his old job back right after.
Simms' appointment in 2005 was buried in a flood of other announcements around the time the Premier was embroiled in a controversy over a treasury board secretary (deputy minister) who quit suddenly.
Simm's re-appointment immediately after the general election attracted criticism from the opposition parties. Simms' new contract will last four years, according a news report by CBC on the controversy.
News that Simms is receiving a salary and a pension simultaneously is at odds with testimony given in the House of Assembly by former finance minister Loyola Sullivan in 2006. In answer to questioning before the legislature's government services committee on the appointment of several former members of the legislature to government positions, Sullivan said:
Loyola Sullivan: I am not sure what you are talking about, but I will indicate that anybody who takes up a position here in government and who, I think you said, was an MHA, getting an MHA’s pension -The provincial public service pension act deals with re-hiring of former employees, including former members of the House of Assembly who are receiving pensions:
Anna Thistle: Correct.
Sullivan: - when they are re-employed here with government they would have to forego their pension and just take their salary, unless anybody came in under a contract basis. People may do contract work for a government and there may be situations where pensions would not be affected, but if you are going to take a position in government, the normal course would be that you would forego your pension then. While you are an employee, you could pick up benefits while you are here and then when you retire or leave, your pension would kick in again. I guess, reset at the level of - if you have earned any credits toward that when you are here - some may and some may not, depending on the position you hold, but under a contract you would not gain any benefits of that nature.
So, in answer to your question, a person who takes up employment, yes, would forego their pension and receive their income, unless there is a special circumstance that I am not aware of.
...
Thistle: How about Mr. Len Simms?
Sullivan: From my understanding, Len Simms is the CEO of the Newfoundland and Labrador Housing Corporation. If he is employed there, I would assume that he has taken up a position there and I would assume he is not getting any benefits as a result of that. I would not be aware if he is. I would assume he is getting a salary.
Thistle: Is it a contract position?
Sullivan: If he is under contract, I am unaware if he is. I would not know that. I am assuming he is employed as the CEO and it is a salary position. If it is, it is unaware to me. That reports to the Department of Human Resources, Labour and Employment. That might be an issue you may want to deal with in Estimates, but to my knowledge, that is not the case.
Mr. Simms is an employee.
Offer of re-employmentThat section of the Act appears to conflict with section 3. Under that section, a "person shall not be eligible to make a contribution to or participate in the pension plan, if he or she is excluded from this Act by a directive of the minister;... is in receipt of a pension; " or is a temporary employee. Under the Act, pension is defined as "an annual pension payable to a former employee in accordance with the pension plan."
21. (1) A pensioner who has retired under the pension plan upon termination of employment but has not reached the age at which a pension benefit is required to begin under the Income Tax Act (Canada) may be re-employed in a pensionable position.
(2) A pensioner who has retired under the pension plan under paragraph 16(1)(b) but has not reached the age at which a pension benefit is required to begin under the Income Tax Act ( Canada ) may, upon proof of good health and with the consent of the minister, be re-employed in a pensionable position.
(3) Where a pensioner accepts an offer of re-employment under this section, his or her pension shall be cancelled, and subject to the making of contributions as required under this Act, the period of subsequent employment shall, in calculating a pension upon subsequent retirement, be added to the years of pensionable service accumulated before his or her 1st retirement and the pension shall be calculated in accordance with section 18 as if the award of the former pension had not occurred.
Under the pensions act, a contractual employee is not required to participate in the public sector pension plan. The definition of "employee" "does not include a contractual employee or a person who is specifically excluded from participation in the pension plan by or under [the] Act."
The Western Star
December 12, 2007, p. 11
Simms contract renewed
St. John's - Newfoundland and Labrador Housing Corporation (NLHC) CEO - and former Progressive Conservative leader - Len Simms renewed his employment contract with NLHC in November, including a clause that continues to see his government pension donated to charity.
Simms agreed to a four-year extension on November 16. His annual salary is $132,349.
Simms had stepped down from his position as chairman and CEO prior to the October 9 provincial election to join the Progressive Conservative election campaign.
The Williams administration re-appointed Simms to the job days after its landslide victory.
Simms was the Grand Falls area MHA for 16 years until the mid-1990s. He also served as a cabinet minister and as opposition leader.
Among the contract terms, Simms agrees to donate his MHA pension to several charities.
Last year, Simms says he donated his after-tax total in excess of $30,000 to the Exploits Valley Food Bank, the Lion Max Simms Camp in Bishop's Falls, the Children's Wish Foundation, Daffodil Place and the Exploit's Valley Integrated Breakfast Program.
The Conservative government first appointed Simms to the NLHC post in
February 2005.
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