A. The Division shall pay the teachers of the Association, interest on the gross amount of any retroactive pay which may be paid to such teachers less the amount of any statutory deduction for Canada Pension, Employment Insurance and Income Tax due with respect to that pay. The interest is to be calculated from the dates which the monies would have been due on a monthly basis, to the date of the actual payment.
B. The interest shall be computed at the lessor of 9% per annum or the average rate at which the Division borrows funds during the twelve (12) month period preceding the calculation date.
C. If the Division has not borrowed funds during the preceding twelve (12) month period, then interest shall be calculated at the rate paid to the Division by the Division’s financial institution.