Other Related Documents

PROTECTED (when completed)

Paylist:

PRI:

Date

Name
Street
City
Province
Postal code

Dear INSERT APPROPRIATE NAME:

SUBJECT: Maternity and / or Parental Leave Without Pay

We have been advised that you will be proceeding on a period of maternity and/or parental leave without pay (LWOP) effective INSERT DATE. The following information is designed to help you understand your options and responsibilities concerning your benefits and deductions during this period.

LEAVE PROVISIONS

Maternity LWOP

The collective agreement does not specify any limits to when your maternity LWOP may commence although you may be asked to provide medical certification of pregnancy.

The maximum period, however, is defined as being no later than 18 weeks following termination of pregnancy. If your pregnancy is terminated on the due date, as originally forecast by your physician, no amendments to your leave request will be required in order to ensure that you do not exceed the maximum period permitted.

Extensions are allowed in cases where your new-born child is hospitalized. Please refer to your collective agreement for specific details.

Parental LWOP

This leave may be taken as a single period of leave without pay of up to 37 weeks. It must be taken within 52 weeks of the date of birth of your new-born child.

(if it is following maternity leave without pay)

However, due to your maternity leave, the maximum duration of your parental leave cannot go beyond 52 weeks following the date of birth of your new-born child.

Extensions are allowed in cases where your new-born child is hospitalized. Please refer to your collective agreement for specific details.

Leave Without Pay for the Care and Nurturing of Pre-School Age Children

The collective agreement provides that the minimum period of time, that can be taken under this type of leave, is three weeks. The total maximum for all periods of this type of leave taken during your career is five years.

In the event that you proceed on this type of leave immediately following your maternity/parental leave, a new application form will be required. I will also provide you with a new Letter of Entitlement.

PENSION & INSURANCES

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 and within 52 weeks of the date of adoption or birth of your child

Single rate (your share only)

Note: In the event that you do proceed on care & nurturing LWOP, the Letter of Entitlement specific to this type of leave will detail your contribution rates for Superannuation and other plans.

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 this coverage is the monthly premium you are currently required to pay as a payroll deduction. 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 is automatic. The employer will continue to remit the required contribution 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, as follows:

• 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.

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.

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 for 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 for residents of Ontario (8%) and Québec (9%).

Your monthly contribution is: $00.00 (including sales tax)

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 dependant.

Dental Care Plan

Employer-paid coverage under this plan will continue automatically during your maternity LWOP, and during your parental leave for care and nurturing which occurs up to 52 weeks after the birth or adoption of the child. 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.

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.

Québec Parental Insurance Plan (QPIP) 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 QPIP. An ROE is a record of your insurable earnings during your employment and is used by the Department of Employment and Social Solidarity to establish your eligibility for QPIP benefits.

QPIP claims are established from the date of application, therefore you should apply for benefits as soon as possible. For additional information, please contact the Department of Employment and Social Solidarity.

SUPPLEMENTAL ALLOWANCES

Maternity Allowance

In accordance with your collective agreement, you must meet the requirements listed below:

a) Be on authorized maternity leave without pay;
b) Completed six months of continuous employment;
c) Provide me with proof of receipt of EI or QPIP maternity benefits;
d) Sign the attached agreement and undertaking(s);
e) Repay a proportionate amount of your maternity allowance corresponding to the amount of time you failed to work in compliance with your Agreement & Undertaking, as described in the paragraph above (i.e. end of term or resignation).

The allowance is not paid in recognition of other EI or QPIP benefits such as sick benefits or parental benefits.

Employee Hired for a Specified Period IF APPLICABLE

As an employee hired for a specified period, you should ensure that your remaining period of employment will permit you to fulfill your return to work agreement. As your period of employment will end on INSERT DATE, you may want to consider waiting until you are certain your employment will be extended to make a retroactive application for payment of this allowance. Otherwise, all or part of this allowance will have to be recovered, as your return to work agreement will not be fulfilled.

Two-week waiting period IF APPLICABLE

This payment represents 93% of your bi-weekly pay and is payable at the end of the two-week waiting period under Employment Insurance.

Maternity Leave Allowance Top-up Payments

You are entitled to receive the difference between 93% of your weekly pay and your EI or QPIP maternity benefits as a top-up payment.

Note: The employer will not reimburse any amounts you may have to repay pursuant to the EI Act or the Parental Insurance Act.

Advance payments

Please complete the attached “Option for Advance Payment of Estimated Amount” form.

The estimated advance payments for your first six weeks are intended to provide you with income during the period that is usually required to process your EI or QPIP benefit claim.

As these are estimated amounts, once you provide proof of payments from EI or QPIP, a reconciliation of your account will be done and adjustments made.

Parental Allowance

In accordance with the collective agreement, you must meet the requirements listed below:

a) Be on authorized parental leave without pay;
b) Completed six months of continuous employment;
c) Provide me with proof of receipt of EI or QPIP parental/paternity/adoption benefits;
d) Sign the attached agreement and undertaking(s);
e) Repay a proportionate amount of your parental allowance corresponding to the amount of time you failed to work in compliance with your Agreement & Undertaking, as described in the paragraph above (i.e. end of term or resignation).

The allowance is not paid in recognition of other EI or QPIP benefits.

Employee Hired for a Specified Period IF APPLICABLE

As an employee hired for a specified period, you should ensure that your remaining period of employment will permit you to fulfill your return to work agreement. As your period of employment will end on INSERT DATE, you may want to consider waiting until you are certain your employment will be extended to make a retroactive application for payment of this allowance. Otherwise, all or part of this allowance will have to be recovered, as your return to work agreement will not be fulfilled.

Two-week waiting period (only when not following maternity LWOP) IF APPLICABLE

This payment represents 93% of your bi-weekly pay and is payable at the end of the two-week waiting period under Employment Insurance.

Parental Leave Allowance Top-up Payments

You are entitled to receive the difference between 93% of your weekly pay and your EI or QPIP parental benefits as a top-up payment.

Note: The employer will not reimburse any amounts you may have to repay pursuant to the EI Act or the Parental Insurance Act.

NOTE TO COMPENSATION ADVISOR: ADD THE FOLLOWING PARAGRAPH IF APPLICABLE, OTHERWISE REMOVE IT, ALONG WITH THIS NOTE.

If you have received the full eighteen (18) weeks of maternity benefit and the full thirty-two (32) weeks of parental benefit under the QPIP and thereafter remain on parental leave without pay, you are eligible to receive a further parental allowance for a period of two (2) weeks at ninety-three percent (93%) of your weekly rate of pay.

Required documentation

The following documentation will be required in support of your entitlement to these allowances:

1) Proof of having served a two-week waiting period.IF APPLICABLE
2) All benefit statements showing your EI/QPIP maternity/parental/paternity/adoption benefit rate. (We will make copies and return the originals to you for your records.)
Note: Failure to submit the required EI/QPIP benefit stubs will result in an overpayment for the periods covered by the missing stubs.
3) Your newborn child's birth certificate.

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

Maternity leave without pay granted shall be counted for the calculation of "continuous employment" for the purpose of calculating severance pay and "service" for the purpose of calculating vacation leave. Time spent on such leave shall be counted for pay increment purposes.

Parental leave without pay granted shall be counted for the calculation of "continuous employment" for the purpose of calculating severance pay and "service" for the purpose of calculating vacation leave. Time spent on such leave shall be counted for pay increment purposes.

STATUS OF CURRENT PAYROLL DEDUCTIONS

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