Effective September, 2000 the Division will establish a Summer Savings Plan for teachers. The purpose of the Plan is to defer net pay. Rules regarding eligibility, enrolment in the Plan, access to deferred net pay and methods of payment are as set out below.
Eligible employees are teachers on a Form 2 contract and teachers on a Form 2A contract whose term of employment will extend to or beyond June 3oth in any year.
Current employees, and employees commencing employment at the beginning of a school year, may opt into the Plan only once per year at the beginning of the school year, but not later than September 15th.
Employees on a Form 2A contract may opt into the Plan only once per school year regardless of the number of Form 2A contracts they may be signed to in a school year.
New employees hired at other than the beginning of a school year may opt into the Plan only once per year at commencement of their employment with the Division but not before October Ist in a school year.
Employees must submit a signed request to opt into the Plan on the approved Division form. No other form of notice to opt into the Plan will be accepted.
Deductions from net pay in any month shall not exceed 1.1% of the estimated annual gross pay of an employee for the current school year.
No withdrawals from the Plan of deferred net pay may be made prior to the final regular pay date in June in a school year.
Employees terminating employment with the Division prior to June 30th in a school year will have the entire amount of their deferred net pay paid out in one payment on or before their termination date.
Employees must withdraw all net pay deferred in one school year before the commencement of the next immediate school year.
An employee may choose to have their deferred net pay paid -to them in either one, two or three payments as follows:
One lump sum at the end of June;
Equal payments at the end of June and July;
Equal payments at the end of July and August;
Equal payments at the end of June, July and August.
Payment will be made by negotiable cheque in all cases.
The Division will deposit deferred net pay in a separate Division bank account. Earned interest in this account as of June 3oth in each year will be paid to the Local Association.
The Division will ensure that accounting records adequately provide for identification of each employee's deferred net pay accrual.
The Division will provide a written statement to each employee of their deferred net pay balance once per year in June.