Common use of Start-Up Costs Clause in Contracts

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay to CUPE $3.5million of the startup costs referred to in s. 4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. 4.1.1 (b) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay to CUPE $3.5million of the startup costs referred to in s. s. 4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. s. 4.1.1 (b) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employersEmployers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Full-Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties Parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay to CUPE $3.5million of the startup costs referred to in s. s. 4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. s. 4.1.1 (b) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employersEmployers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Full-Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties Parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay to CUPE $3.5million of the startup costs referred to in s. 4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. 4.1.1 (b) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016the Participation Date. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay has provided to CUPE $3.5million 3.5 million of the $7.0 million startup costs referred to in s. 4.1.1 s.4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. 4.1.1 (b) by June 1, October 2016. The balance of the $7.0 million payment shall be paid by the Crown to CUPE upon signing of this XXX. The balance of any other payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“"CFR”"). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and an d (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s 's most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s 's pro rata share based on the amount of the employee’s 's co-share payment of each benefit. The remaining portion of the Board’s Boards' surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“"IBNR”") claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s 's IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% 1S% of the Board’s Boards' annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employers’ ' and employees’ ' premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 804:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016the Participation Date. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay has provided to CUPE $3.5million 3.5 million of the $7.0 million startup costs referred to in s. 4.1.1 s.4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. 4.1.1 (b) by June 1, October 2016. The balance of the $7.0 million payment shall be paid by the Crown to CUPE upon signing of this XXX. The balance of any other payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employersEmployers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Full-Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-B- Memo B04:2015. It is the parties Parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016the Participation Date. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay has provided to CUPE $3.5million 3.5 million of the $7.0 million startup costs referred to in s. 4.1.1 in s.4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. 4.1.1 (b) by June 1, October 2016. The balance of the $7.0 million payment shall be paid by the Crown to CUPE upon signing of this XXX. The balance of any other payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employersEmployers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Full-Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.been

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016the Participation Date. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay has provided to CUPE $3.5million 3.5 million of the $7.0 million startup costs referred to in s. 4.1.1 in s.4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. 4.1.1 (b) by June 1, October 2016. The balance of the $7.0 million payment shall be paid by the Crown to CUPE upon signing of this XXX. The balance of any other payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.Where

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time one‐time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time one‐time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up start‐up costs and/or reserves. 4.1.2 3.2.2 The one-time one‐time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start‐up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO‐EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned board‐owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share co‐share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.Where

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay to CUPE $3.5million of the startup costs referred to in in s. 4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. 4.1.1 (b) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. : A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 . The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 . The statements are to be provided to the Ministry of Education. The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. : If available, the paid premiums or contributions or claims costs of each group; or b. or Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“"CFR”"). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s 's most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s 's pro rata share based on the amount of the employee’s 's co-share payment of each benefit. The remaining portion of the Board’s Boards' surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“"IBNR”") claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s 's IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards' annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employers’ ' and employees’ ' premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-B- Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“"CFR”"). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s 's most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s 's pro rata share based on the amount of the employee’s 's co-share payment of each benefit. The remaining portion of the Board’s Boards' surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“"IBNR”") claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s 's IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards' annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employers’ ' and employees’ ' premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 The Government of Ontario will provide: a. A one-time contribution to the Trust equal to 15% of annual benefit costs to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on September 1, 2016. b. A one-time contribution of a half month’s premium cost (4.15% of annual benefit costs) to the Trust, to cover start-up costs and/or reserves. 4.1.2 The one-time contributions in 4.1.1 (a) and (b) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. 4.1.3 The Crown shall pay to CUPE $3.5million of the startup costs referred to in in s. 4.1.1 (b) on the date of ratification of the central agreement and shall pay to CUPE a further $3.5 million subject to the maximum amount referred to in s. 4.1.1 (b) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 (b), shall be paid by the Crown to CUPE on the day the Trust becomes effective. 4.1.4 On the day the Board commences participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s surplus will be retained by the Boards. 4.1.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 All Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable Board. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board and the Trust based on the employers’ and employees’ premium share. 4.1.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. If available, the paid premiums or contributions or claims costs of each group; or b. Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNRXXXX. Any portion of the deficit remaining in excess of the CFR and IBNR XXXX will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.

Start-Up Costs. 4.1.1 3.2.1 The Government of Ontario will provide: a. i) A one-time contribution to the Trust equal to 15% of annual benefit costs costs, as defined in 3.2.2, to establish a Claims Fluctuation Reserve (“CFR”). The amount shall be paid to the Trust on or before September 1, 2016. b. ii) A one-time contribution to the Trust of a half month’s premium cost (4.152.6% of annual benefit costs) costs (estimated to the Trustbe approximately $181,000), as defined in 3.2.2, to cover start-up costs and/or reserves. 4.1.2 3.2.2 The one-time contributions in 4.1.1 3.2.1 (ai) and (bii) will be based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier’s most recent yearly statement for the year ending no later than August 31, 2015. The statements are to be provided to the Ministry of Education. 4.1.3 3.2.3 The Crown shall pay to CUPE $3.5million 80,000 of the startup start-up costs referred to in s. 4.1.1 3.2.1 (bii) on the date of ratification of the central agreement and shall pay to CUPE ETFO a further $3.5 million 80,000 subject to the maximum amount referred to in s. 4.1.1 s. 3.2.1 (bii) by June 1, 2016. The balance of the payments, if required under s. 4.1.1 3.2.1 (bii), shall be paid by the Crown to CUPE on the day the Trust becomes effectiveor before September 1, 2016. The funds shall be transferred as instructed by ETFO-EW in accordance with an agreed transfer payment and accountability contract. 4.1.4 3.2.4 On the day the Board commences Boards, commence participation in the Trust, or as soon as reasonably and feasibly possible thereafter, all eligible and available surpluses in board-owned defined benefit plans will be transferred to the Trust in an amount equal to each employee’s pro rata share based on the amount of the employee’s co-co- share payment of each benefit. The remaining portion of the Board’s Boards’ surplus will be retained by the Boards. 4.1.5 3.2.5 Where there are active grievances related to surpluses, deposits and/or reserves, the amount in dispute shall be internally restricted by the Board until the grievance is settled. 4.1.6 3.2.6 All Board Boards reserves for Incurred But Not Reported (“IBNR”) claims and CFR, will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. 4.1.7 3.2.7 Upon release of each Board’s IBNR and CFR by the carriers, the reserves will be retained by the applicable BoardBoards. For the Administrative Services Only plans (ASO), a surplus (including any deposits on hand) that is equal to or less than 15% of the Board’s Boards’ annual benefit cost will be deemed to be a CFR and IBNR and will be retained by the applicable Board Boards upon its release by the carriers. Where a surplus (including deposits on hand) exceeds 15% of the annual benefit cost, the remaining amount will be apportioned to the Board Boards and the Trust based on the employers’ and employees’ premium share. 4.1.8 3.2.8 For policies where the experience of multiple groups has been combined, the existing surplus/deficit will be allocated to each group based on the following: a. a) If available, the paid premiums or contributions or claims costs of each group; or b. b) Failing the availability of the aforementioned financial information by each group, then the ratio using the number of Full Time Equivalent positions (FTE) covered by each group in the most recent policy year will be used. The methodology listed above will be applicable for each group leaving an existing policy where the experience of more than one group has been aggregated. Policies where the existing surplus/deficit has been tracked independently for each group are not subject to this provision. 4.1.9 3.2.9 Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the board. 4.1.10 3.2.10 In order to ensure the fiscal sustainability of said benefit plans, the Boards will not make any withdrawal, of any monies, from any health care benefit plan reserves, surpluses and/or deposits nor decrease in benefit plan funding unless in accordance with B-Memo B04:2015. It is the parties understanding that the Ministry of Education Memo B04:2015 applies and will remain in effect until Board plans become part of the Trust. 4.1.11 3.2.11 The Trust shall retain rights to the data and the copy of the software systems.