by Michel Plamondon
Recent amendments to the
Teachers’ Superannuation Act (TSA) and changes in the new
Memorandum of Agreement have had an impact on leaves of
absences. In this article I will discuss how these
amendments and changes may affect you.
The TSA was amended to
allow the purchase of approved leaves of absence up to the
number of years allowed by the Income Tax Act. Presently,
the Income Tax Act permits the purchase of five years of
leave. Previously, the TSA only allowed the purchase of
two years of leave. This amendment will provide more
flexibility for teachers who leave the profession for a
period of time be it for maternity/adoption leaves,
deferred salary leaves, study leaves or any other approved
leaves.
The TSA was further
amended to allow for the purchase of maternity/adoption/
parental leaves at actual cost instead of actuarial value.
However, certain conditions apply. The decision to
purchase the leave must be made within an election period
of 180 days after the termination of the leave. If the
decision to purchase is not made within that time, then
the leave can only be purchased at actuarial value. If the
decision to purchase is made within the time frame
allotted, then the teacher may pay back the amount due in
a lump sum or in installments over a period not exceeding
two times the period of the leave.
This amendment will
provide savings for teachers who elect to purchase early.
As well, it will probably ensure that more leaves of that
type are bought back. Many teachers have a tendency to
postpone buying back leaves then very often find out that
the cost has become prohibitive.
Changes in the
maternity/adoption leaves clauses of the agreement were
also made to bring these clauses in line with the
Employment Insurance Act. A teacher can now access up to
52 weeks of leave for this purpose, up from 27 weeks in
the previous agreement.
Finally, where a teacher
elects to continue insurance coverage during such a leave,
the teacher’s share for the cost-sharing premiums can be
paid before going on leave by providing the employer with
a series of monthly post-dated cheques to cover the period
of the leave or upon returning to work, in equal bi-weekly
installments over a period not to exceed eight pay
periods.
If you have any
questions on these topics, contact Michel Plamondon at
Federation House.
