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D-140-BR Attachment A: Deferred Salary Leave

D-140-BR

Deferred Salary Leave

SCHEDULE " A "

DEFERRED SALARY LEAVE PLAN

This Deferred Salary Leave Plan has been developed to afford an eligible full-time staff member the opportunity to finance a one (1) year leave of absence without compensation by deferring portions of their regular salary to finance the year of the leave. It is the intent that this Plan will be of no major cost to the Board.

  1. Definitions
    1. "Association" means the Alberta Teachers' Association, the Canadian Union of Public Employees or Out of Scope Staff.
    2. "Board" means the Board of Trustees of the St. Albert Public School Division. 
    3. "Current Compensation Amount" means the portion of the Current Compensation Amount which is retained by the Board for a Participant in each year in accordance with clause 3.1 but less all interest paid to the Participant in accordance with clause 3.4.
    4. "Eligible Investor" means a Canadian chartered bank, any credit union authorized to do business in the Province of Alberta, or the Treasury Branches of Alberta.
    5. "Eligible Staff Member" means a full time staff member on a continuous contract, or in a permanent position, with the Board.
    6. "Leave of Absence" means the twelve-month period taken in accordance with the provisions of clause 4 and commencing at the beginning of the school year.
    7. "Individual Agreement" means the agreement described in Schedule “B”.
    8. "Participant" means an Eligible Staff Member whose application for participation in the Plan has been approved by the Board in accordance with 2.3 and has completed an individual agreement.
    9. "Plan" means the plan set out in the policy schedule, and includes all amendments thereto.
    10. "Salary Agreement" means the agreement in force between the Association and the Board pursuant to the applicable section of the Alberta Labour Code.
    11. "School Year" means the school operating year as established from time to time by the Board pursuant to the Education Act. Where references are made to September 1 as the start of a school year, this means the actual date or the date of the beginning of the first pay period of the school year if it is not September 1.
  2. Application
    1. In order to enroll in the Plan, an Eligible Staff Member must make written application to the Superintendent or designate on or before March 1st, stating the date when the Eligible Staff Member wishes to participate in the Plan and the school year in which the Leave of Absence is to be taken.
    2. The approval of each application made under clause 2.1 shall rest solely with the Board. The Superintendent or designate shall by April 30th of that year advise each applicant of the Board's approval or disapproval of their application, and if the latter, an explanation herefore.
    3. If the Board gives its approval in accordance with clause 2.2, the participation of the Eligible Staff Member in the Plan will become effective at the start of the school year immediately following the date of approval, or if such date is not agreed to by the Board, then on a date which is approved by the Board.
    4. Before becoming a Participant, an Eligible Staff Member must complete and sign an Individual Agreement by May 1st which is accepted by or on behalf of the Board.
  3. Funding for Leave of Absence - Funding for the Leave of Absence shall be as follows:
    1. During each school year prior to the Leave of Absence, the Participant, for a maximum of six school years, will receive their Current Compensation Amount, less the amount determined under clause 3 of the Individual Agreement for the school year in question which is to be retained by the Board. Such amount will be retained by the Board and be invested in accordance with clause 3.2.  The Participant is not permitted to have a percentage of their Current Compensation Amount withheld which is in excess of the percentage obtained when 100% is divided by the number of years when the Participant specified they wish to be in the Plan, including the Leave of Absence year, nor is it permitted to withhold an amount in excess of 33 1/3% of the amount of compensation normally paid in a calendar year.
    2. The monies retained by the Board in accordance with clause 3.1 for each participant may be pooled and shall be invested and reinvested by the Board in investments offered from time to time by an Eligible Investor. In consideration of the administrative services performed by the Board, the Participant shall indemnify and save the board harmless against any expense, claim, or liability arising out of or resulting from such investments authorized by this clause.
    3. The monies retained by the Board for each Participant, in accordance with clause 3.1, including interest thereon (until paid out in accordance with clause may be pooled and shall be invested and reinvested by the Board in investments offered from time to time by an Eligible Investor. The Board shall choose such Eligible Investor and in making such determination the Board shall not be liable to any Participant for any investments made which are authorized by this clause.
    4. Accrued interest shall be paid to the Participant by December 31 of each year in which the Participant is a member of the Plan.
    5. The Superintendent or designate shall make an Annual Report covering the previous school year to each Participant under this Plan as to the amount of deferred salary together with interest accrued to that date. The Annual Report shall be made no later than December 31st of each year under the Plan.
    6. The amount of income tax to be deducted is dependent upon the Board receiving a ruling to the satisfaction of its solicitor from Revenue Canada that the Deferred Salary Leave Plan contemplated hereby is not unlawful and is acceptable to Revenue Canada. The amount of income tax to be deducted may be computed on the actual salary received by the Participant during each of the calendar years they are enrolled in the Plan.
  4. Taking of Leave of Absence - The taking of a Leave of Absence shall be governed by the following provisions:
    1. The Leave of Absence shall be for a period of twelve months and shall occur according to, and be governed by, policy of the Board.
    2. The manner of payment to the Participant during the Leave of Absence shall be in 12 equal monthly instalments commencing with the September regular payroll data as established by Board policy, equal to 1/12th of the monies held by the Board for the Participant in accordance with clause 3.1 as determined at the beginning of the Leave of Absence.
    3. The payments to be made to a Participant in accordance with clause 4.2 during a Leave of Absence shall be related to the monies retained by the Board in accordance with clause 3.1 for such Participant, but less any deductions made by the Board under clause 5.2 and any monies required by law to be paid by the Board for or on behalf of the Participant.
    4. If the Board is unable to obtain a suitable replacement for a Participant by May 15th for the period of the Leave of Absence, the Board may in its discretion, defer the Leave of Absence for one school year. In such case, the Participant may choose to remain in the Plan or they may withdraw from the Plan, in which case the Board shall pay to the Participant, the Deferred Compensation Amount in one lump sum payment no later than the end of the first taxation year that commences after the end of the deferral period or within sixty days, whichever is shorter.  Where the deferral is at the request of the Board and it extends the period beyond the 6 year limit, the Board agrees to reimburse the Participant for any additional income tax as determined by the Board which becomes payable by the Participant as a direct result of the deferral by the Board beyond the 6-year limit, but not for any income tax on the reimbursement.
    5. A Participant during the year of leave under the Plan shall not accumulate nor be entitled to the following:
      1. experience increments;
      2. statutory holidays, maternity, sick or any other leaves and promotions.
    6. The Board will make every endeavour to place the Participant, upon return from their leave, into a position no less favourable than that held prior to this leave.
    7. The period of Leave of Absence shall not interrupt the continuity of the Participant's service with the Board. After participation in the Plan, the Participant's salary and benefits will be as set out in the agreement then in force between the Board and the Association governing such matters. Subject to sections 4.8 and 4.9, a Participant on return to duty following the leave shall be reinstated at the same level of experience as that which existed prior to the commencement of the school year in which leave under the Plan was taken.
    8. Notwithstanding the date shown in paragraph 4 of the Individual Agreement for a requested Leave of Absence, a Participant may with the consent of the Board given not less than six months prior to the scheduled date, postpone such leave for one year.
    9. A Participant shall return to their regular employment on expiry of the leave and provide service for a period at least equal to the period of the Leave of Absence.
    10. Should a Participant fail to report as required in clause 4.9, such Participant shall be deemed to have abandoned both the position and their contract of employment with the Board. The Board may without any further notice to said Participant, forthwith fill the position with someone other than the Participant, and the Board shall not be responsible for any income tax or other consequences of the Participant's failure to return to work pursuant to clause 4.9.
  5. Fringe Benefits
    1. While a Participant is enroled in the Plan, any applicable health and welfare benefits computed with reference to salary shall be structured according to the current compensation amount.
    2. The Board will continue paying its share of applicable health and welfare benefits for a Participant during the non-leave school years of the Plan.
    3. The Board will maintain applicable health and welfare benefit coverage for a Participant during the year of leave under the Plan, provided such Participant assumes the full responsibility of paying the total costs for said benefits save the employer's portion of Canada Pension Plan and Unemployment Insurance contributions.
    4. A participant may not receive wages or salary from the employer or from any person with whom the employer does not deal at arms length during the leave except for the amounts contemplated by the plan.
    5. This plan is not established to provide benefits to the Participants on or after retirement.
  6. Withdrawal
    1. A Participant who ceases to be employed by the Board must withdraw from the Plan. Within sixty days the Board shall pay to the Participant the Deferred Compensation Amount as provided in clause 4.4.
    2. A Participant may apply to the Board to withdraw from the Plan at any time prior to March 1st in the year in which the Leave of Absence is scheduled to occur. The Board shall approve the request to withdraw from the Plan. Within sixty days of approval by the Board of the withdrawal request, the Board shall pay to the Participant the Deferred Compensation Amount as provided in clause 4.4.
    3. Should a Participant die, the Board shall within sixty days of notification of such death, pay the Deferred Compensation Amount to the Participant's estate, subject to the Board receiving any necessary clearances and proofs normally required for payment to estates.
    4. In the event of withdrawal, the Board shall deduct from the Deferred Compensation amount any withdrawal fee as established by the Investor.
  7. Suspension from Financial Participation in the Plan
    1. A Participant may give notice to the Board stating that the Participant wishes to suspend their participation in the Plan for one school year as at September 1st which immediately follows such notice. In such case, the Board until further notice as provided in clause 7.2, shall pay the current Compensation Amount to the Participant as if they were not participating in the Plan. The amount previously retained by the Board and interest thereon in accordance with clause 3.1, 3.2 and 3.3 shall continue to be held by the Board until the Participant withdraws from the Plan or takes the Leave of Absence. The amount so retained shall continue to bear interest until the Leave of Absence is taken or the Participant withdraws from the Plan.
    2. A Participant who has given notice in accordance with clause 7.1 may give notice to the Board advising that they wish to become reinstated in the Plan in which case, on September 1st immediately following such notice, the Participant shall participate in the Plan for the remaining years.
    3. A Participant may not suspend their participation in the Plan more than once.
    4. Suspension of participation under clause 7.1 shall not change the year established for the Leave of Absence, unless notice is given to the Superintendent or designate before March 1st in the year of intended leave.
  8. Six Year Maximum on Deferral
    1. Any deferral, postponement, or suspension of the taking of the leave as contemplated or described and set out in any of clauses 4.4, 4.8, 7.1, or 7.4 of the Plan which extends the deferral period beyond six years requires the Board to pay to the Participant all amounts held under the Plan no later than the end of the first taxation year which commences after the end of the six year deferral.
  9. Termination or Amendment of Plan
    1. The Plan may be amended or terminated by the Board only after consultation with the local Associations. Any amendment(s) shall be binding upon all present and future Participants.
    2. No amendment shall be made to the Plan which will prejudice any tax ruling which is applicable to the Plan prior to the amendment.