Other Related Documents

PROTECTED (when completed)

Paylist:

PRI:

Date

Name
Street
City
Province
Postal code

Dear INSERT APPROPRIATE NAME:

SUBJECT: PERSONAL NEEDS LWOP - LESS THAN 3 MONTHS

Deficiencies

1^st three months of Leave Without Pay (LWOP):

Subject to the limitations listed below under the heading Limitations to Pensionable LWOP, the 1^st three months of your LWOP are automatically pensionable. Please refer to the paragraph below entitled Payment Options for a description of the options available to you.

Periods in excess of the 1^st three months LWOP:

An employee on LWOP has two options concerning pensionable LWOP after the 1^st three months of any period of LWOP subject to the limitations described under the heading Limitations to Pensionable LWOP.

1) Count the service as pensionable:

In order to exercise this option, you should complete "Statement of Option - Leave Without Pay" form. If no option is signed, you are deemed to have counted the service as pensionable service.

2) Elect to not count the service as pensionable:

In order to exercise this option, you must complete "Election Not to Count Leave Without Pay as Pensionable Service" form no later than three months following your return to duty. Failure to exercise this option within the prescribed period is deemed to be an irrevocable option to count the service as pensionable.

An option not to count service is for the full period in excess of three months. You cannot designate a portion of the period in excess of three months as pensionable and the balance as non-pensionable.

Although an employee may decide not to count service as pensionable, the employee may at a later date make an election for this period. Contributions, however, would be based on salary at the date of election and a medical examination would be required.

Should you decide to terminate your employment instead of returning to duty, the "Election Not to Count Leave Without Pay as Pensionable Service" form must be completed and signed prior to your official termination date.

Limitations to Pensionable LWOP

The Income Tax Act places certain maximums on the total amount of LWOP, exclusive of sick leave without pay and leave for loan to an international organization, which can be treated as pensionable service under a Registered Pension Plan (RPP) such as Superannuation.

Effective January 1^st, 1996, the total maximum LWOP permitted is five years plus up to three years of child care leave (one year per child) for a total of up to eight years for all types of LWOP.

Deemed salary

Contributions are based on deemed salaries (salaries you would have received had you not been on LWOP). This includes pay revisions (including retroactive revisions) and pay increments which may become due after the commencement of your LWOP.

Pension Adjustment (PA)

During the entire period of leave without pay, a PA will be calculated. Although there are no employment earnings, you do accrue pension credits.

In the event that you choose to not count service in excess of three months as pensionable, your PA will only be adjusted if the "Election Not to Count Leave Without Pay as Pensionable Service" form is signed prior to the commencement of your LWOP or before the end of the taxation year in which your leave without pay commenced. This would have the effect of increasing RRSP room.

Therefore, if you do not make your option within the calendar year which your leave without pay began, no adjustment will be made to your Pension Adjustment calculation.

Rate of Contribution

For those periods of LWOP that are counted as pensionable, the following contribution rates apply:

1) 1^st three months

Single rate (your share only)

2) Period in excess of three months:

Double rate (your share and the employer's share)

Payment Options

You may choose one of the following options concerning the payment of your contributions for those periods of your LWOP that are pensionable:

(a) In a lump sum within 30 days of a return to duty (in which case, you should notify me as soon as possible (preferably prior to a return to duty) of your intention to make a lump sum payment):

(i) by personal cheque, or

(ii) by transferring funds from an RRSP to Superannuation; (using the Canada Revenue Agency "Direct Transfer under subsection 146.3(14.1) or paragraph 146(16)(a) or 146.3(2)(e)" form)

(b) by salary or pension deductions over a period equal to twice the period of the pensionable leave without pay. This period cannot be extended except in cases of financial hardship. At any time following the commencement of the recovery, you can still make a payment for all or part of the balance of deficiencies owing.

(c) you may, if you wish, choose to make payments for Superannuation on an on-going or pre-payment basis.

Should you prefer option (c), you must send me your payment (by personal cheque or by transferring funds from your RRSP).

Note 1: The receipt from the Superannuation Directorate will, in fact, be your tax receipt. In the event that a return to duty does not take place, you will only be required to pay accumulated deficiencies if you (or your survivors in the case of death) are entitled to and choose  a pension at termination of employment.

Elective Service

Unlike current Superannuation contributions, payments for elective service must be made on an on-going basis during the period of your leave without pay. Elections are irrevocable once made and failure to make the required monthly payments will result in your account being in default.

In such a case, Superannuation would determine what action would be required. A "Letter of Demand" could be sent to you resulting in additional interest charges being levied and increasing your monthly payments.

Your payments in the amount of $00.00 should be made payable to the Receiver General for Canada and sent to me for further action.

Note: The receipt from the Superannuation Directorate will, in fact, be your tax receipt.

Supplementary Death Benefit

Your current coverage of $00,000 will continue during your absence without pay. You will be required to pay for this coverage, at the rate of 15¢ per $1000 of coverage.

You have the same payment options as your Superannuation contributions, except the option of transferring funds from an RRSP or other RPP to Superannuation.

Provincial sales tax must be added to the premium for residents of Ontario (8%) and Québec (9%).

Disability Insurance (Sun Life or Industrial Alliance)

Your coverage under this plan continues automatically during your leave without pay. Should you become ill for an extended period, you would be entitled to apply for benefits.

The cost of the coverage for the first three months is the same as the premium you are currently required to pay. After the first three months, the cost of this coverage is the full monthly premium (your normal share which you are currently required to pay as a payroll deduction plus the employer's share).

OR

(The following paragraph applies for employees on leave without pay for maternity, parental, education to the advantage of the employer)

The cost of the coverage for your leave without pay is the same as the premium you are currently required to pay.

The rates are as follows:

Payment, however, can only be made upon your return to duty or in the case of a termination of employment. Accumulated deficiencies will be recovered from pay over a period equal to your leave without pay, or, in the case of termination of employment, from any entitlements which become payable to you.

Provincial sales tax is added to the premium for residents of Ontario (8%) and Québec (9%).

Public Service Management Insurance Plan (PSMIP) - Life Insurance

In order to maintain coverage for this insurance, you are required to make arrangements to pay your premiums directly to Industrial Alliance Insurance and Financial Services Inc. Employees proceeding on approved leave without pay are solely responsible for remitting the required premiums to the insurer.

Your current monthly premium is $00.00 (including sales tax). Your Individual Agency Number (IAN) is CI ########. Your payment, should be accompanied by a letter stating the following:

(a) Name, IAN and complete mailing address,

(b) the reason the payment is being made (i.e. leave without pay),

(c) policy number G68-1400,

(d) the period covered by the payment.

Failure to pay premiums will result in the lapsing of coverage which will require that you are to re-apply by submitting an application and a Declaration of Health satisfactory to the Insurer in order to have your premium deductions and coverage resume upon return to duty.

Their mailing address is:

Industrial Alliance Insurance and Financial Services Inc.
522 University Avenue
Toronto, Ontario
M5G 1Y7
1-800-977-2117

Public Service Health Care Plan (PSHCP)

For employees with level I coverage, continued coverage under this plan for the first three months is automatic and contribution-free. The employer will continue to remit the required contributions including sales tax. For residents of Québec, the employer-paid contribution is a taxable benefit which will be reported on income tax statements at the end of each year.

Effective April 1, 2006, in order to continue coverage under PSHCP during the period of leave without pay, employees with level II and III will have new payment options available to them. They are:

• Pay the required contributions in advance (pay-as-you-go);
• Pay the contributions owing on ceasing to be on leave without pay, whether due to a return to work or ceasing to be employed; or
• Choose not to continue PSHCP coverage while on authorized leave without pay.

If you wish to be covered under PSHCP while on leave without pay, you are required to complete and sign the attached agreement, that indicates your choice of payment options.

You are required to pay only the employee share of the contributions for the first three months. The employer will continue to remit its portion of the required contribution including sales tax. For residents of Québec, the portion paid by the employer is a taxable benefit which will be reported on income tax statements at the end of each year.

Following the first three months you will be required to pay the employee and employer shares of the full contribution rate. Your contribution rates are:

If you choose to pay the required contributions in advance (pay-as-you-go), cheques should be sent, in advance, on a monthly or quarterly basis and should be made payable to the Receiver General of Canada, and returned to me.

Opting out of the plan is considered as a lapse in coverage only and will not require a new application or a three-month waiting period when you are retaken on strength.

Sales tax must be added to the contribution rate for residents of Ontario (8%) and Québec (9%).

Your PSHCP number is: #,###,###

Note: During leave without pay, an employee may not modify the level of coverage. However, a member may increase his or her coverage from "single" to "family" to cover a new dependent.

Dental Care Plan

Employer-paid coverage under this plan will continue automatically for the first three months of your LWOP. For residents of Québec, the portion paid by the employer (including sales tax) is a taxable benefit which will be reported on income tax statements at the end of each year.

Following the first three months, you will be required to pay in advance on a monthly or quarterly basis the employee and employer shares of the full premium. You can choose which contribution rate you wish to pay, i.e. single only; employee and spouse/common-law partner or employee, spouse/common-law partner and children. However, this decision cannot be changed during the LWOP. Your premiums are as follows:

The premiums are due prior to the end of coverage (example: If you paid a premium for March, coverage would cease at the end of March – your next premium would be due April 1st for coverage for the month of April). Cheques should be made payable to the Receiver General for Canada and returned to your compensation advisor. A premium is due for the last month of your leave without pay. Premium-free coverage resumes with your first full month of remuneration.

Sales tax must be added to the premium for residents of Ontario (8%) and Québec (9%).

Failure to maintain coverage will result in a suspension of DCP coverage. You will not be able to re-instate coverage by paying the premiums at a later date should you suddenly incur dental bills. If your coverage does lapse, it may only be re-instated following a return to duty.

Québec Blue Cross

In order to maintain coverage under this plan, you must remit your payments directly to the Insurer at:

Québec Blue Cross
550 Sherbrooke St. West
Montréal, Québec
H3A 1B9
(514) 286-8420

Blue Cross of Atlantic Canada

In order to maintain coverage under this plan, you must remit your payments directly to the Insurer at the following address:

Blue Cross of Atlantic Canada
1874 Brunswick St.
Halifax, Nova Scotia
B3J 2G7

Provincial and Territorial Health Insurance Plans

In order to maintain your coverage, you are required to pay the full premium directly to the Provincial or Territorial Health Agency.

Alberta Health and Wellness
P.O. Box 1360 Station Main
Edmonton, Alberta
T5J 2N3

(780) 427-1432

(604) 683-7151
1-900-663-7100
http://www.healthservices.gov.bc.ca/insurance/

Union Insurance

You currently have a deduction for a union sponsored insurance plan. Please contact your union or the insurance company to determine the status of this coverage during your leave without pay.

Employment Insurance (EI) IF APPLICABLE

A Record of Employment (ROE) will be issued to you within five calendar days of the commencement of your LWOP as required by the EI Act. An ROE is a record of your insurable earnings during your employment and is used by Human Resources Skills Development Canada (HRSDC) to establish your eligibility and the amount of EI benefits.

EI claims are established from the date of application, therefore you should apply for benefits as soon as possible. For additional information about EI benefits please contact your local Human Resources Employment Centre (HREC) of HRSDC.

OTHER EMPLOYMENT BENEFITS AND RELATED ISSUES

Annual and Sick Leave Credits

While you are on leave without pay, you do not accumulate credits for any month in which you are not paid for at least 10 days or 75/80 hours.

Any leave credits (unearned) advanced to you will be deducted from your current balance. If you have used any unearned credits, an overpayment will be created (see overpayments below).

Compensatory Leave Credits

Any earned compensatory leave credits will remain credited to your account. They will only be paid at termination of employment or at the date specified by your terms and conditions of Employment.

Pay Revisions and Statutory Increments

Any pay revisions or statutory increments that become due during your leave without pay will be recognized for the purposes of pension, insurances, severance pay and the payment of leave credits.

Continuous Employment and Continuous/Discontinuous Service

Periods of leave without pay of less than three months will OR will not be deducted from your continuous employment for the purposes of calculating severance pay.

OR

Periods of leave without pay of more than three months will OR will not be deducted from your continuous employment for the purposes of calculating severance pay.

OR

Periods of leave without pay of less than three months will OR will not count for the purposes of continuous/discontinuous service as it relates to the achievement of anniversary dates for annual leave purposes.

OR

Periods of leave without pay of more than three months will OR will not count for the purposes of continuous/discontinuous service as it relates to the achievement of anniversary dates for annual leave purposes.

OR

Periods of leave without pay of less than three months will OR will not count for the purposes of determining your next increment date.

OR

Periods of leave without pay of more than three months will OR will not count for the purposes of determining your next increment date.

Term Employment During Extended Periods of Leave Without Pay

Should you become employed in a term position during the period of leave without pay, you will be considered to be in dual employment. As such, you would be required to pay into Superannuation, Death Benefit, Disability Insurance or Long-Term Disability Insurance even though your term may be for less than three or six months (or if you should be hired as a casual). Deductions for payment of Superannuation arrears, Death Benefit arrears and DI/LTD arrears for periods of leave without pay (exclusive of periods of dual employment) cannot be taken until your return to duty or appointment to an indeterminate position.

You would also be entitled to authorize payroll deductions for PSHCP or PSMIP if you wish. Your Dental Care Plan coverage will also resume (contribution-free).

If the term is for less than three months or if you are hired as a casual, you will not be subject to a collective agreement and as such will not be entitled to paid leave. Your leave credits with this department would be inaccessible to you.

If the term is for more than three months, you will be subject to the appropriate collective agreement.

If you are appointed to an indeterminate position with the new department a transfer of your files and benefits will be actioned.

Please present a copy of this letter to me,  should you become employed in a dual employment capacity, so that proper administration of your benefits can take place.

Union Dues

You will not be required to pay union dues for any complete months of absence during your LWOP.

Canada Savings Bonds (CSB)

Your CSB deduction will resume automatically upon your return to duty. However, for additional information or to redeem bond deductions already recovered from your pay, you should contact the Administrator directly at:

Canada Savings Bonds
P.O. Box 2770, Station D
Ottawa, Ontario
K1P 1J7

By e-mail: csb@csb.gc.ca

1-800-575-5151
1-800-354-2222 TTY line

Recreational Association (RA)

Since there will be no deductions from pay during your leave without pay, you may want to contact the RA Centre for alternate arrangements. Their address is:

Recreational Association
2451 Riverside Drive
Ottawa, Ontario
K1H 7X7
(613) 733-5100

Credit Union

You should contact the Credit Union to make arrangements.

Government of Canada Workplace Charitable Campaign

Since there will be no deductions from pay during your leave without pay, you may want to contact them for alternate arrangements. Their address is as follows:

Government of Canada Workplace Charitable Campaign
C/O United Way
363 Coventry Road
Ottawa, Ontario
K1K 2C5

Attn: Director
(613) 228-6700
(613) 228-6730 fax

Garnishee Summons

Your garnishment deduction will cease when you proceed on leave without pay. We will inform the court or the provincial enforcement service, in writing, that regular payments are suspended due to leave without pay. However, if monies become payable during that period and the garnishee summons is still in effect, we will be required to remit monies to the court or the provincial enforcement service in accordance with Garnishment, Attachment and Pension Diversion Act.

Student Loan

You currently have payroll deductions to pay your student loan. You will want to make separate arrangements with Social Development Canada. Their address is:

Human Resources Skills Development Canada
Education Support/Canada Student Loans Program
Student Assistance Branch
P.O. Box 2090, Postal Station "D"
Ottawa, Ontario
K1P 6C6
1-888-815-4514 or
1-866-587-7452
1-866-587-7453 fax

Self-Funded Leave Deductions (SFL)

As a result of your leave without pay, you are no longer able to continue participation in the SFL program. Once the Departmental co-ordinator for SFL has issued a letter of authorization to the Custodian, your deferred salaries will be released to you.

Note: This could affect your employment insurance benefits.

Overpayments

Regular Pay

As a result of receiving the cheque/payment dated INSERT DATE, there is an overpayment of $0,000.00 (gross). 

Overpaid Bilingualism Bonus

As a result of not being entitled to at least 10 days' pay in the last month of employment, the amount of Bilingual Bonus paid for that same month is overpaid by the amount of $00.00 (gross). 

Payroll Deductions

Due to the late cancellation of the cheque/payment dated INSERT DATE, the following deductions were remitted creating an overpayment to your salary account.

Unearned Leave Credits

As a result of using annual/sick leave credits which were not earned, an overpayment has been created.

On-going overpayment not fully paid

There currently is a payroll deduction for a previous overpayment which has not been fully paid. 

Note: If there are insufficient funds due and payable to be able to recover the overpayment(s) mentioned above, a personal cheque will be required in order to settle any outstanding amounts.

Any outstanding cheques/stubs or related statements, such as income tax information slips, will be forwarded to your home address, unless advised otherwise. It is, therefore, important that you advise our office of any change of home address.

Should you require additional information, do not hesitate to contact me at (###) ###-#### or by e-mail INSERT E-MAIL ADDRESS.

Sincerely,

Compensation and Benefits Advisor

c.c. Employee file

INFORMATION NOTICE TO EMPLOYEES
Public Service Health Care Plan (PSHCP) Agreement
for the maintenance of coverage and payment of
PSHCP contributions during a period of leave without pay

As you may be aware, effective April 1, 2006, there were a number of changes to the PSHCP. One of these changes included the collection of PSHCP contributions for employees on authorized leave without pay.  For more information on these changes, we have attached a copy of the PSHCP Bulletin #18 issued in March 2006.

Our files indicate that you are on leave without pay.  If you are currently covered by the PSHCP while on leave without pay, you are required to complete and sign this agreement, to indicate your choice of payment options.

You may also take this opportunity to cancel your coverage should you wish to do so.

You are required to sign this agreement and return it to your compensation office within two weeks upon receipt of this notice.

Please note that if you are not covered by the PSHCP while on leave without pay, you should not complete this agreement.

PSHCP Coverage:

I wish to continue my PSHCP coverage while on authorized leave without pay.

Yes   ______    No  _______

Opting out of the plan is considered as a lapse in coverage only and will not require a new application nor a three-month waiting period when you are retaken on strength.

Payment of PSHCP contributions (if applicable) 

Depending upon the length and type of leave without pay, you may be required to pay PSHCP contributions.

If you have indicated that you wish to continue PSHCP coverage while on leave without pay, and if you are required to make a contribution, you must agree to pay all required PSHCP contributions.

In the event that you are required to pay PSHCP contributions, you must choose one of the following options. 

Option 1 - Pay-as-you-go: (Payment of  PSHCP contributions during your period of leave without pay)

You can pay your contributions by sending monthly or quarterly payments  to your compensation advisor by personal cheque payable to the Receiver General of Canada.

If you fail to remit your contributions in advance at any point during your leave without pay (LWOP), your coverage will continue.  However, you will be deemed to have agreed to pay all outstanding contributions upon termination of your LWOP through salary deduction, lump sum payment or monies owing on termination of employment, unless you advise your compensation advisor in writing that you wish to opt out of the PSHCP.

Please note that coverage cannot be cancelled retroactively.

Option 2 - Payment of PSHCP contributions at the end of your leave without pay

IMPORTANT - If you choose this option, you agree to pay all outstanding PSHCP contributions upon the termination of your leave without pay, whether the termination is a result of your return to work, your retirement, or termination of employment.

Note: If you choose this option, the amount, which you will be required to pay, could be significant.  You should estimate the amount you will owe and ensure that this is the method of payment you wish to use. 

Select one of the following payment options:   

Option 1 - I choose the pay-as-you-go option   ________. Please select (a) or (b) below:

(a)  I will send personal cheques, monthly in advance ____

(b)  I will send personal cheques, quarterly in advance ____  

OR

Option 2 - I choose to pay PSHCP contributions upon termination of my leave without pay  ___. Please select (a) or (b) below:

(a) Deductions at source upon termination of my leave without pay ___

(b) Lump sum payment upon termination of my leave without pay   _____

NOTE:
If you cease to be employed for any reason, outstanding PSHCP contributions will first be taken off any termination payments payable to you, including severance pay, unpaid vacation leave, unpaid salary, and any other amount payable to you by the Crown.

If there are still outstanding PSHCP contributions to be paid, a lump sum payment will be required from you.  You must provide a personal cheque payable to the Receiver General of Canada for the full outstanding amount which was not recovered from any monies owing upon your ceasing to be employed. Please contact your compensation advisor to obtain the exact amount owing.

Please note that the following tax implications continue to apply:

Taxable benefits for employees residing in Quebec – the employer’s share of the PSHCP contributions continue to be a taxable benefit. There will be no change to the current process in place for taxable benefits; and

Retail Sales Tax for Ontario and Quebec – employees residing in Ontario and Quebec will continue to be required to pay their share of the Retail Sales Tax on PSHCP contributions, as before. 

I agree to all of the terms of the above PSHCP agreement:

__________________________________
Signature of employee

Please forward this signed agreement immediately to your compensation advisor at the address below to ensure continuous coverage under the PSHCP.

__________________________________
(Compensation advisor’s name)

__________________________________
(Compensation advisor’s phone number)

__________________________________
(Departmental address)