ARTICLE 7: INTEREST ON RETROACTIVE PAY

The Division shall pay the members of the Association interest on the gross amount of any retroactive pay which may be paid to such members less the amount of any statutory deduction for Canada Pension, Unemployment Insurance and Income Tax due with respect to that pay. The interest is to be calculated from the dates which the moneys would have been due, on a monthly basis, to the date of actual payment. The interest shall be computed at the lesser of:

1. 8.25%, and
2. the Division's average borrowing rate during the twelve months preceding the calculation date or, in the absence of any such borrowing, the average rate paid by the Virden branches of Canada's Chartered Banks on their premium rate savings accounts during that same twelve month period.

 

Both parties have agreed that for the effective period of this agreement, interest on retroactive pay will be waived