CONTRACT INTERPRETATION Q&A
Many members have questions about the new contract. This fall the regional education will be held to inform us about the contract. The date is not yet finalized but it will be announced to be held in October or November. In the mean time if you have any concerns talk to a steward or send us your questions. Often you can get information from www.bcnu.org as well.
Do you have any questions for our Labour Relations officer? Common questions will be answered here. Submit your questions to shregion@hotmail.com
SPECIAL LEAVE
Effective May 5th, 2006 the Collective Agreement language regarding Special Leave changed.
For further information please click here.
The 2006-2010 Provincial Collective Agreement
PORTABILITY
What happens if you leave a regular position and obtain another within 6 months?
According to the new contract:
- Your wage will be the same as before, but the first day of work at the new employer becomes your anniversary day for raises
- Your senority, sick time and vacation time will remain the same as before
- Your medical, dental, and extended health benefits will start the first day of the next month.
- Your superannuation will be transferred to the new employer as long as
- You did not withdraw it when you left the old employer
- Your new employer is not a “for profit” corporation
- You’re qualification differential will remain the same as before
- Your severance allowance will be transferred to the new employer
Municipal Pension Plan Rules
Termination of Employment Amendment #9
Questions and Answers
What's happened?
In October 2004, the Municipal Pension Plan rules were amended to include an amended definition of "termination of employment." This change requires both the plan employer and the plan member to sign a declaration stating that no agreement exists for the member to come back to work after retirement with the employer, and that no right has been established for the employee to return to work with the employer.
The amended definition does not prevent a member from coming back to work with the same employer from which they retired provided there has been no prearranged casual or formal discussion or commitment for the retiring employee to return to work after retirement.
The only change to the administration of retirements is that both the plan member and the employer must sign the Retirement Declaration form, which will be included in the plan member's Retirement Application Package.
1. Why was this rule introduced?
Under any situation, to "retire" means to terminate employment. Pension payments begin when this has taken place. If there is a pre-arrangement for the plan member to return to work, retirement has not occurred. The pension plan never intended for people to leave work knowing that they are returning or have a right to return, thus collecting pension income in addition to salary. This rule clarifies the meaning of retirement.
2. What is a pre-arrangement to work?
A pre-arrangement to work is an oral or written discussion or agreement for the retiring employee to return to work after retirement made before the member retires.
3. If the member can't sign the declaration, can the receive a pension?
No, the member will receive a pension when they are no longer working for the same employer. In other words, they will receive the pension when they actually retire.
4. What does 'same or current' employer mean?
Same or current employer refers to the employer that the member was last employed with. In the case of amalgamated employers, it is at the parent level. For example, Fraser Health Authority #978 has many employers amalgamated under the Authority. If the member is employed with any employer under the Fraser Health Authority it is considered to be with the same employer.
5. If an arrangement to retire and then return to work already exists what does the employee do?
In order to begin to receive their pension immediately, the member must be able to sign a form, called a Retirement Declaration, stating that no arrangement exists for them to go back to work for their employer.
The member's options could be:
*Cancel the employment arrangement with the employer and apply for their pension.
*Cancel the employment arrangement with the employer, apply for their pension, and sometime after retirement, discuss re-employment opportunities with the employer.
*Continue working and defer taking the pension until a later date.
6. When did the new rule come into effect?
This amendment to the plan rules was adopted by the Municipal Pension Board of Trustees at their October 6 and 7, 2004 board meeting. The rule change was effective October 7, 2004.
7. Can the member collect pension if there was a discussion of returning to work with the employer but no commitment?
Employers and plan members should talk about the possibility of the member returning to work only after the retirement has taken place, not before. In order to attest to the fact that there is no arrangement for the employee to return to work after the retirement, there should be no discussion or loose arrangements in advance of the retirement.
8. Can the employer ask if the member wants their name placed on the casual list?
No, This would constitute a right to return to work and is in direct violation of the amended rule. Employers should not ask this question until after the member has retired.
9. Is the employment arrangement restriction only with the same or current employer?
Yes. This does not affect an arrangement that a member may have made with another employer. However, if an employee is working concurrently for more than one Municipal Pension Plan employer or commences work with another Plan employer before the retirement has begun, the employee will no be able to retire. A plan member cannot retire from one Municipal Pension Plan employer while continuing to work for another Plan employer.
10. Can an employee pre-arrange a contract with the same employer?
No. If there is an arrangement with the same employer, then the member has an agreement to return to work, and they can't sing the Retirement Declaration form.
11. If a union agreement says that a member who returns to work within a set period of time can retain their seniority, does that constitute an agreement to return to work?
No. A union agreement does no commit the employer or member to a future working relationship; it only sets out the conditions that will apply if the member does return to work.
12. Is there a specific time frame in which a member can return to work and still apply for their pension?
No. The previous "one-day-break" rule is no longer in place. If there is an arrangement prior to retirement for the member to return to work within any timeframe, then the member cannot apply for their pension at that time.
13. Who should sign the Retirement Declaration form on behalf of the employer?
The person who should sign the Retirement Declaration form is the person who is aware of the member's plans after retirement.
This could be a person in the HR department or the member's manager or supervisor. Regardless, the person signing the declaration needs to know that no pre-arrangement to return to work exists.
The Retirement Declaration form and the Employee Salary, Service and Contributions at Retirement form could be signed by different people.
14. What happens if all the pension forms for retirement are submitted to the Municipal Pension Plan but the Retirement Declaration form is not included?
The Municipal Pension Plan will contact the member directly to inquire about whether the form will be completed and submitted. The pension will no be paid until the fully executed declaration is received.
