THIS AGREEMENT made this 4 day of September, 2014.
MEMORANDUM OF UNDERSTANDING
BETWEEN
Flin Flon Teachers’ Association of The Manitoba Teachers’ Society
(hereinafter called “the Association”)
-and-
Flin Flon School Division
(hereinafter called “the Division”)
EARLY NOTICE OF RETIREMENT INCENTIVE PLAN
This agreement is made separate and apart from the Collective Agreement between the Association and the Division. The parties agree that this memorandum of agreement expires at 4:00 p.m. on March 28, 2018.
I. ELIGIBILITY
A teacher shall be eligible for the retirement incentive hereinafter described if s/he:
a. is or will, by the end of the current school year, be eligible for a benefit under The Teachers’ Pension Act, which the parties agree requires a teacher to be at least fifty-five (55) years of age.
b. is an employee of the Flin Flon School Division and has a minimum of ten (10) years of continuous employment under a Form 2 or Teacher – General contract with the Flin Flon School Division, and is not currently on an unpaid leave of absence from the Division (unpaid leave not to include those away on either sick leave or Long Term Disability); and
c. meets all other eligibility requirements of this Agreement and applies by completing and submitting Schedule A; and
d. executes an Indemnification as set out in Schedule B hereof.
The Division shall have the sole discretion to waive the service requirements in 1(b).
II. BENEFITS AND TIME GUIDELINES PAID UNDER PLAN
a. The retirement incentive paid under this plan is a “retiring allowance” as that term is defined by the Income Tax Act, based on the teacher’s current permanent FTE status.
b. For a full-time teacher, the retiring allowance will be a lump sum payment of $15,000, less applicable deduction by the Division for income tax, to the teacher no later than January 15, of the following school year; or
c. a payment of $15,000 to a Registered Retirement Plan (RRP) or Registered Retirement Savings Plan (RRSP) no later than January 15, of the following school year, without deduction, if the teacher meets tax deferral eligibility requirements of the Income Tax Act.
d. For a teacher who is working less than full-time, the retiring allowance of $15,000 will be pro-rated by his/her permanent FTE status (e.g. $15,000 x 0.5 FTE = $7,500)
e. In the event of the death of a teacher who is entitled to receive the retiring allowance, the appropriate lump sum payment shall be made to his/her estate.
III. NOTIFICATION PROCEDURE
a. A teacher who plans to retire is to advise the Division in writing (on the form provided as Schedule A), of his/her intentions, no later than 4:00 p.m. on the last working day in January of the current school year for retirement on June 30, of the that school year, in order to qualify for a retirement incentive.
b. The names of persons who intend to retire pursuant to this Retirement Incentive Plan shall be forwarded to the Association by the Division.
IV. OTHER CONDITIONS
a. This is a one-time offer for those that become first eligible for retirement (minimum age 55 and 25 years of total service) on June 30, current school year.
b. This plan is not retroactive. Teachers who have retired or resigned or terminated their Agreement of Employment with the Division shall not be eligible for any of the benefits provided herein.
c. All provisions of the plan are subject to compliance with legislative provisions which may be enacted during its duration.
d. This plan provides the opportunity of a financial incentive as provided under Clause II above. The parties agree that this retirement incentive agreement is a one-time only agreement.
e. Any disagreement between the parties, or persons bound by this Agreement, or on whose behalf the Association represents, or has represented as sole bargaining agent, as to the content, interpretation, violation and/or application of this Agreement shall be settled pursuant to the process provided for in Article 11 of the Collective Agreement between the parties.
IN WITNESS WHEREOF, the parties through their officers hereby affix their signatures:
Signed and agreed on behalf of the Division:
_________________________
Chairperson
_________________________
Secretary-Treasurer
Signed and agreed on behalf of the Association:
__________________________
President
__________________________
Secretary
SCHEDULE A
APPLICATION FOR RETIREMENT INCENTIVE
I, ___________________________ of the town of _________________________ in the Province of _________________ hereby apply for payment of the Retirement Incentive as provided in an Agreement made between the Flin Flon Teachers’ Association and the Flin Flon School Division.
I hereby further agree that, if all the conditions of this Agreement are met and I am eligible to receive the retirement incentive, I irrevocably give notice of termination of my Teacher Contract of Employment with the Flin Flon School Division effective June 30, ______.
Dated at the town of __________________________, in the Province of Manitoba, this ____ day of ____________, _______.
________________________ ___________________________
Witness Signature of Applicant
SCHEDULE B
INDEMNIFICATION
With respect to the Retirement Incentive Plan Agreement between the Flin Flon School Division (herein called “the Division”) and the Flin Flon Teachers’ Association (herein called “the Association), I, in future consideration of the promise to pay me the sum of $ ________________ on the terms as set out above, do hereby agree to indemnify and save harmless the Division and the Association against any claims against the Division and the Association resulting from my acceptance of the Retirement Incentive Plan and the payment to me of the said retiring allowance as set out above.
_________________________ _________________________
Witness Signature of Teacher
_________________________
Date