Common use of Form and Method of Payment Clause in Contracts

Form and Method of Payment. Upon retirement, the Company will set up a Health Care Spending Account (HCSA) for eligible employees. The annual post-retirement health care benefit will be allocated to the employee’s HCSA directly on a monthly basis. The monthly allocations will begin on the first of the month following retirement and cease on the first of the month following attainment of age 65. For greater clarity, the monthly allocations to the employee’s HCSA will cease upon reaching age 65 regardless of the start date. For e.g., an employee retires on October 15th of a given year, the monthly allocations will start on November 1st of that year (the annual benefit payable during the first year is adjusted by a factor of 0.25 (or 3/12 months). Administration fees related to the HCSA will be paid for by the Company. Provincial Retail Sales Taxes, where applicable, will be charged to the HCSA. The HCSA will be subject to the rules of the Income Tax Act. Amounts allocated to the employee’s HCSA can only be used to pay for eligible medical expenses as defined under the Income Tax Act. The Company will work with the selected vendor to provide the most efficient benefits delivery.