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Pension Reform Clarifications
SPECIAL ADVICE TO CROWN CORPORATIONS NOT SERVICED BY THE REGIONAL PAY SYSTEM: 1995-012
October 26, 1995
SUBJECT: |
Pension Reform Clarifications |
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1 |
PURPOSE |
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1.1 |
The purpose of this Special Advice is to provide an attachment which should have been included with the Special Advice dated October 19, 1995, but which was inadvertently omitted. |
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Please include the attached with the October 19,1995 advice. |
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2 |
INQUIRIES |
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2.1 |
Any request for information regarding the foregoing should be addressed to your PWGCS Client Services Centre as per Compensation Directive 1994-039 dated October 6, 1994. |
Original Signed by
P. Charko |
P. Charko
Director General
Compensation Sector
Government Operational Service Branch
Reference: CJA 9206-24
BENEFIT COMPARISON FOR GRANDFATHERED 30 HOURS EMPLOYEES:
EXAMPLE 1:
Service:
| 01.01.1981 TO 31.12.1999 |
30.0 |
19 years* |
*approx. 13.5 years prior to July 4, 1994 and 5.5 years after
| Average Salary |
Grandfathered |
P.T. Calculation |
| |
|
|
| 01.01.1994 to 03.07.1994 |
$16,400.00 (actual) |
$16,400.00 (actual)* |
| 04.07.1995 to 31.12.1995 |
$50,400.00 (actual) |
$63,000.00 (FTE) |
| 01.01.1996 to 31.12.1996 |
$34,400.00 (actual) |
$43,000.00 (FTE) |
| 01.01.1997 to 31.12.1997 |
$35,200.00 (actual) |
$44,000.00 (FTE) |
| 01.01.1998 to 31.12.1998 |
$36,000.00 (actual) |
$45,000.00 (FTE) |
| 01.01.1999 to 31.12.1999 |
$36,800.00 (actual) |
$46,000.00 (FTE) |
| |
|
|
| Average |
$34,867.00 |
$42,900.00 |
* This is the true 30-hour salary; periods prior to 4/7/94 should not be converted to an FTE salary. All 30-hour (plus) service up to CIF is treated as FT.
BENEFIT CALCULATION:
All 30-hour service as full-time (grandfathered):
19.0 yrs x 2 % x $34,867.00 = $13,249.46
All 30-hour service since 4/7/94 as part-time:
| 13.5 yrs* x 2 % x $42,900.00 = |
$11,583.00 |
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| 5.5 yrs* x 2 % x ($42,900 x 30/37.5) = |
$3,775.20 |
|
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$15,358.20 |
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*approximate
EXAMPLE 2;
| Service: |
|
|
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|
|
| 01.01.1981 to 31.12.1985 |
22.5/37.5 |
5 years |
| 01.01.1986 to 31.12.1992 |
18.75/37.5 |
7 years |
| 01.01.1993 to 31.12.1996 |
30.0/37.5 |
4 years* |
| 01.01.1997 to 31.12.1998 |
37.5/37.5 |
2 years |
| 01.01.1999 to 31.12.1999 |
18.75/37.5 |
1 years |
* approx. 1.5 years prior to July 4, 1994 and 2.5 years after
| Average Salary |
Grandfathered |
P.T. Calculation |
| |
|
|
| 01.01.1994 to 03.07. 1994 |
$16,400.00 (actual) |
$16,400.00 (actual)* |
| 04.07.1995 to 31.12. 1995 |
$50,400.00 (actual) |
$63,000.00 (FTE) |
| 01.01.1996 to 31.12. 1996 |
$34,00.00 (actual) |
$43,000.00 (FTE) |
| 01.01.1997 to 31.12. 1997 |
$44,000.00 (actual) |
$44,000.00 (FTE) |
| 01.01.1998 to 31.12. 1998 |
$45,000.00 (actual) |
$45,000.00 (FTE) |
| 01.01.1999 to 31.12. 1999 |
$46,000.00 (FTE) |
$46,000.00 (FTE) |
| |
|
|
| Average |
$39,367.00 |
$42,900.00 |
* This is the true 30-hour salary; periods prior to 4/7/94 should not be converted to an FTE salary.
BENEFIT CALCULATION:
All 30-hour service as full-time (grandfathered):
| 5 yrs x 2 % x ($39,367.00 x 22.5/37.5) |
= $2,362.02 |
(true PT) |
| 7 yrs x 2 % x ($39,367.00 x 18.75/37.5) |
= $2,755.69 |
(true PT) |
| 1.5 yrs* x 2 % x $39,367.00 |
= $1,181.01 |
(30 hr pre CIF) |
| 2.5 yrs* x 2 % x $39,367.00 |
= $1,968.35 |
(30 hr post CIF) |
| 2.0 yrs x 2 % x $39,367.00 |
= $1,574.68 |
(37.5 hr/wk) |
| 1.0 yrs x 2 % x ($39,367.00 x 18.75/37.5) |
= $ 393.67 |
(true PT) |
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|
|
| Total benefit: $10,235.42 |
|
|
All 30-hour service since 4/7/94 as part-time:
| 5 yrs x 2 % x ($42,900.00 x 22.5/37.5) |
= $2,574.00 |
(true PT) |
| 7 yrs x 2 % x ($42,900.00 x 18.75/37.5) |
= $3,003.00 |
(true PT) |
| 1.5 yrs* x 2 % x $42,900.00.00 |
= $1,287.00 |
(30 hr pre CIF) |
| 2.5 yrs* x 2 % x $42,900.00 x 30/37.5) |
= $1,716.00 |
(30 hr post CIF) |
| 2.0 yrs x 2 % x $42,900.00 |
= $1,716.00 |
(37.5 hr/wk) |
| 1.0 yrs x 2 % x ($42,900.00 x 18.75/37.5) |
= $ 429.00 |
(true PT) |
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|
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| Total benefit: $10,725.00 |
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* approximate |
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