Common use of Funding Deposits and Interest Clause in Contracts

Funding Deposits and Interest.  The portion of the salary deferred shall be deposited into an interest bearing account in the bank normally used by the Region and retained for disbursement during the period of the leave. The Region will maintain a record of funds and interest for each employee enrolled in the plan.  The total amount of accumulated salary deferral funds shall be paid to the employee in bi-weekly payments as appropriate for the approved period of time.  The total amount of accumulated salary deferral funds plus interest shall be paid to the employee in bi-weekly payments as appropriate for the approved period of leave. Further Contributions:  Canada Pension Plan contributions and Income Tax deductions are deducted from the employee’s pay during the period of deferment, based on a percentage of the salary paid (i.e. 66 2/3% to 80%), deductions of Employment Insurance will be made on 100% of salary before the salary deferral is deducted.  During the period of leave, no deductions for Employment Insurance are made.  OMERS contributions during the period of deferment are made based on 100% of the employee’s gross earnings before any deferral amounts are withheld. No contributions are made during the period of the leave, by either the employee or the Region, this period being considered a period of “broken service”. Following the leave, periods of broken service may be purchased by the employee alone, subject to the regulations of OMERS.  During the leave period employees will be able to make regular contributions, should they choose.  Contributions to the Regionally sponsored Group RRSP during the period of deferment are taken from the gross earnings before any deferral amounts are withheld. During the leave period employees will be able to make up the difference through a lump sum payment.  Union dues will be based on the full salary earned prior to the leave commencing, and will not be deducted from payments made to the employee during the period on leave.

Funding Deposits and Interest.  ▪ The portion of the salary deferred shall be deposited into an interest bearing account in the bank normally used by the Region and retained for disbursement during the period of the leave. The Region will maintain a record of funds and interest for each employee enrolled in the plan.  ▪ The total amount of accumulated salary deferral funds shall be paid to the employee in bi-weekly payments as appropriate for the approved period of time.  ▪ The total amount of accumulated salary deferral funds plus interest shall be paid to the employee in bi-weekly payments as appropriate for the approved period of leave. Further Contributions:  ▪ Canada Pension Plan contributions and Income Tax deductions are deducted from the employee’s pay during the period of deferment, based on a percentage of the salary paid (i.e. 66 2/3% to 80%), deductions of Employment Insurance will be made on 100% of salary before the salary deferral is deducted.  ▪ During the period of leave, no deductions for Employment Insurance are made.  ▪ OMERS contributions during the period of deferment are made based on 100% of the employee’s gross earnings before any deferral amounts are withheld. No contributions are made during the period of the leave, by either the employee or the Region, this period being considered a period of “broken service”. Following the leave, periods of broken service may be purchased by the employee alone, subject to the regulations of OMERS.  ▪ During the leave period employees will be able to make regular contributions, should they choose.  ▪ Contributions to the Regionally sponsored Group RRSP during the period of deferment are taken from the gross earnings before any deferral amounts are withheld. During the leave period employees will be able to make up the difference through a lump sum payment.  ▪ Union dues will be based on the full salary earned prior to the leave commencing, and will not be deducted from payments made to the employee during the period on leave.