The Division shall pay to members of the Association interest on any retroactive pay which may be paid to such members, on condition that the interest shall be paid for the period of time between the date one of the parties applies for interest arbitration and the date on which any payment is subsequently paid and, in addition, will be paid only on such amounts as would have been outstanding from time to time until such time as payment is finally made.
The interest paid to each full time teacher shall be calculated on the "average net retroactive pay" determined as hereinafter provided. Such interest shall be computed at the average rate at which the Division borrows funds during the twelve (12) month period preceding the calculation date or at nine percent (9%), whichever is the lesser. Part-time teachers shall be paid interest on a prorated basis.
The "average net retroactive pay" shall be determined in accordance with the following formula:
A x B = C ÷ D = E
Where:
A = 55%, being the agreed upon percentage of net retroactive pay to gross retroactive pay.
B = total gross retroactive pay.
C = net retroactive pay.
D = number of full-time-equivalent (F.T.E.) teachers receiving retroactive pay.
E = average net retroactive pay per F.T.E. teacher.