Common use of Surplus/Reserves Clause in Contracts

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together:

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School 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 school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School 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 school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. HISTORICAL APPENDIX OF CENTRAL TERMS – FOR REFERENCE ONLY‌ RE: Benefits‌‌‌ The parties agree that, once all Employees to whom this Memorandum of Settlement of the Central Terms applies become covered by the Employee Life and Health Trust contemplated by this Letter of Agreement (LOA), all references to life, health and dental benefits in the applicable local collective agreement shall be removed from that local agreement. The OCEW shall request inclusion into an education sector Employee Life and Health Trust (ELHT), (hereinafter, the “Trust”) within fifteen (15) days of central ratification. Should OCEW fail to reach agreement, consistent with the parameters contained herein, by February 29, 2016, the parties to this LOA will meet to consider other education sector Trust options in the Province of Ontario. The parties to this LOA agree to comply with the Trust’s requirements. If the Trust agrees to accept the request for inclusion, the provisions of the agreement between OCEW and the Trust shall be reflected in the participation agreement. The provisions contained herein shall be applicable to OCEW within the Trust. The Participation Date for OCEW shall be no earlier than September 1, 2016 and no later than August 31, 2017 and may vary by Board. The parties agree that there are a number of governance options, of which one governance option is set out in 1.0.0 below.

Surplus/Reserves. All eligible and available surpluses and reserves remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans benefitplans to the OECTA ETFO ELHT will be allocated between the school board School Board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Teachers’ Federations, Central Employee Workers’ unions or council of unions, Teachers’ Federations, ,and other unions employee groups have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus surpluses and reserves to be transferred to the OECTA ETFO ELHT - OCEW and Unifor Teachers’ separate accounts account is the total OCEW and Unifor thetotal ETFO Teachers’ eligible and available surpluses and reserves multiplied by an amount equal to OCEW and Unifor ETFO represented Teachers’ employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards School Boards to the ministry for the forthe 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses and reserves will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus surpluses and reserves to be transferred to the OECTA ETFO ELHT - OCEW and Unifor Teachers’ separate accounts account is the total OCEW and Unifor ETFO Teachers’ eligible and available surpluses and reserves (calculated in B.i B.i. above) multiplied by an amount equal to OCEW and Unifor ETFO represented employeesTeachers’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards School Boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses and reserves are to be subtracted from the total eligible and available surpluses and reserves. The share of the separately tracked surpluses and reserves is to be transferred to the ETFO ELHT Teachers’ separate account as per the process described in section A above. ii. The remaining eligible and available surpluses and reserves are then distributed based on the process described in section B above. The total surpluses and reserves amount to be allocated in sections A, B and C, will be based on the School Board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All School 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 basedon the terms of existing contracts. School Boards with deficits will recover the amount from their CFR and XXXX. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibilityof the School Board. The School Boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the ETFO ELHT is provided to School Boards. Upon receipt by the ETFO ELHT of all surplus amounts indicated in A, B, and C of this Memorandum of Understanding, ETFO agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible surpluses and available surpluses reserves remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA OSSTF ELHT will be allocated between the school board School Board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Teachers’ Federations, Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions employee groups have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor Education Workers’ separate accounts account is the total OCEW OSSTF/FEESO Education Workers’ surpluses and Unifor eligible and available surpluses reserves multiplied by an amount equal to OCEW and Unifor OSSTF/FEESO represented Education Workers’ employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards School Boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible surpluses and available surpluses reserves will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor Education Workers’ separate accounts account is the total OCEW OSSTF/FEESO Education Workers’ surpluses and Unifor eligible and available surpluses reserves (calculated in B.i B.i. above) multiplied by an amount equal to OCEW and Unifor OSSTF/FEESO represented employeesEducation Workers’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards School Boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses and reserves are to be subtracted from the total surpluses and reserves. The share of the separately tracked surpluses and reserves is to be transferred to the OSSTF ELHT Education Workers’ separate account as per the process described in section A above. ii. The remaining surpluses and reserves are then distributed based on the process described in section B above. The total surpluses and reserves amount to be allocated in sections A, B and C, will be based on the School Board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All School 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. Once released, those reserves will form part of the surplus available for distribution. School 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 School Board. The School Boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OSSTF ELHT is provided to School Boards. Upon receipt by the OSSTF ELHT of all surplus amounts indicated in A, B, and C of this Memorandum of Understanding, OSSTF/FEESO agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. In the case of a dispute regarding surplus amounts, such dispute shall be forwarded to the Central Dispute Resolution committee.

Surplus/Reserves. All eligible surpluses and available surpluses reserves remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA OSSTF ELHT will shall be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust ELHT 90 days after all Teachers’ Federations, Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions employee groups have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor teachers’ separate accounts account is the total OCEW OSSTF Teachers’ surpluses and Unifor eligible and available surpluses reserves multiplied by an amount equal to OCEW and Unifor OSSTF represented teachers’ employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible surpluses and available surpluses will reserves shall be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor Teachers’ separate accounts account is the total OCEW OSSTF teachers’ surpluses and Unifor eligible and available surpluses reserves (calculated in B.i B.i) above) multiplied by an amount equal to OCEW and Unifor OSSTF represented employeesteachers’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses and reserves are to be subtracted from the total surpluses and reserves. The share of the separately tracked surpluses and reserves is to be transferred to the OSSTF ELHT Teachers’ separate account as per the process described in section A above. ii. The remaining surpluses and reserves are then distributed based on the process described in section B above. The total surpluses and reserves amount to be allocated in sections A, B and C, shall be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and claims fluctuation reserve (CFR) shall remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. Once released, those reserves shall form part of the surplus available for distribution. School boards with deficits shall recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and XXXX shall be the responsibility of the school board. The school boards shall not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OSSTF ELHT is provided to school boards. Upon receipt by the OSSTF ELHT of all surplus amounts indicated in A, B, and C of this Memorandum of Understanding, OSSTF agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board- owned defined contribution plans. In the case of a dispute regarding surplus amounts, such dispute shall be forwarded to the Central Dispute Resolution committee.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and XXXX. Any portion of the deficit remaining in excess of the CFR and XXXX will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. HISTORICAL APPENDIX OF CENTRAL TERMS – FOR REFERENCE ONLY‌ RE: Benefits‌‌‌ The parties agree that, once all Employees to whom this Memorandum of Settlement of the Central Terms applies become covered by the Employee Life and Health Trust contemplated by this Letter of Agreement (LOA), all references to life, health and dental benefits in the applicable local collective agreement shall be removed from that local agreement. The OCEW shall request inclusion into an education sector Employee Life and Health Trust (ELHT), (hereinafter, the “Trust”) within fifteen (15) days of central ratification. Should OCEW fail to reach agreement, consistent with the parameters contained herein, by February 29, 2016, the parties to this LOA will meet to consider other education sector Trust options in the Province of Ontario. The parties to this LOA agree to comply with the Trust’s requirements. If the Trust agrees to accept the request for inclusion, the provisions of the agreement between OCEW and the Trust shall be reflected in the participation agreement. The provisions contained herein shall be applicable to OCEW within the Trust. The Participation Date for OCEW shall be no earlier than September 1, 2016 and no later than August 31, 2017 and may vary by Board. The parties agree that there are a number of governance options, of which one governance option is set out in 1.0.0 below.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. . For policies where employee groups were tracked separately: i. : The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. . For policies where multiple employee groups were pooled together: i. : The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. . For policies where employee groups were tracked separately and pooled together:: Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and XXXX. Any portion of the deficit remaining in excess of the CFR and XXXX will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School 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 school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board- owned defined contribution plans.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-co- share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-co- share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School 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 school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. The parties agree that, once all Employees to whom this Memorandum of Settlement of the Central Terms applies become covered by the Employee Life and Health Trust contemplated by this Letter of Agreement (LOA), all references to life, health and dental benefits in the applicable local collective agreement shall be removed from that local agreement. The OCEW shall request inclusion into an education sector Employee Life and Health Trust (ELHT), (hereinafter, the “Trust”) within fifteen (15) days of central ratification. Should OCEW fail to reach agreement, consistent with the parameters contained herein, by February 29, 2016, the parties to this LOA will meet to consider other education sector Trust options in the Province of Ontario. The parties to this LOA agree to comply with the Trust’s requirements. If the Trust agrees to accept the request for inclusion, the provisions of the agreement between OCEW and the Trust shall be reflected in the participation agreement. The provisions contained herein shall be applicable to OCEW within the Trust. The Participation Date for OCEW shall be no earlier than September 1, 2016 and no later than August 31, 2017 and may vary by Board. The parties agree that there are a number of governance options, of which one governance option is set out in 1.0.0 below.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-2014- 15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School 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 school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and XXXX. Any portion of the deficit remaining in excess of the CFR and XXXX will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. The parties agree that, once all Employees to whom this Memorandum of Settlement of the Central Terms applies become covered by the Employee Life and Health Trust contemplated by this Letter of Agreement (LOA), all references to life, health and dental benefits in the applicable local collective agreement shall be removed from that local agreement. The OCEW shall request inclusion into an education sector Employee Life and Health Trust (ELHT), (hereinafter, the “Trust”) within fifteen (15) days of central ratification. Should OCEW fail to reach agreement, consistent with the parameters contained herein, by February 29, 2016, the parties to this LOA will meet to consider other education sector Trust options in the Province of Ontario. The parties to this LOA agree to comply with the Trust’s requirements. If the Trust agrees to accept the request for inclusion, the provisions of the agreement between OCEW and the Trust shall be reflected in the participation agreement. The provisions contained herein shall be applicable to OCEW within the Trust. The Participation Date for OCEW shall be no earlier than September 1, 2016 and no later than August 31, 2017 and may vary by Board. The parties agree that there are a number of governance options, of which one governance option is set out in 1.0.0 below.