Common use of Salary Formula Clause in Contracts

Salary Formula. 29.04.01 In each year of the Plan preceding the year of the leave, an employee will be paid 80% of his/her annual salary. The remaining 20% of annual salary shall be deferred and deposited to a separate trust account at the Chesley, Ontario branch of the Canadian Imperial Bank of Commerce with an account heading "Bluewater School Board In Trust for [name of employee]". The amount deposited to this account together with interest earned shall be retained for the employee to finance the year of leave. Consideration will be given to a request for a leave to be financed by deduction of a larger amount of salary over a shorter period of time. For example, deduct for three years to finance a leave in the fourth year or deduct for two years to finance a leave in the third year. 29.04.02 At the commencement of the leave of absence, the amount deposited to the employee account plus accrued interest to that date shall be transferred to the general account of the Board to pay the employee's salary, and no further interest shall be earned. 29.04.03 On or before August 31, just prior to commencement of the leave, the participating employee shall select one of the following methods of salary on or before the leave of absence: a) A lump sum payment of the entire year's salary on or before September 20. b) 40% of salary on or before September 20 and 60% of salary on or before January 20. If this option is selected the employee may continue to direct the type of investment account to be used for the 60% amount retained to January 20.Payment on January 20 will include the total amount on deposit together with interest earned up to and including that date. c) Payment as per method detailed in the collective agreement in force at the time. 29.04.04 The type of investment account shall be selected by the employee who will inform the bank and the employer by August 15 of each year regarding the type of investment account into which the current amount and/or new deposits will be placed for the period September 1 to August 31. Notwithstanding the above, with the approval of the Bank, the employee may direct, during the period September 1 to August 31, a change in the type of investment account previously selected.