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Lump-sum payment date approaches

October 6, 2015 ATA Teacher Welfare

The Modified Framework Agreement imposed through the Assurance for Students Act contains the following in section B2: "A one-time lump-sum payment of 1 per cent of the annual salary as set out in the Collective Agreement grid in effect as of November 15, 2015 will be paid to all teachers on contract on that date, funded by Government and paid no later than the end of December 2015."

The provincial government has committed to honouring its funding for the lump sum and has sent out a template for school jurisdictions to use in calculating and billing for the lump sum.

Frequently asked questions

Who is eligible to receive the lump sum?

All teachers on temporary, probationary, interim or continuing contracts as of Nov. 15, 2015. Day-to-day substitute teachers are not on contract and are therefore not eligible for the lump sum.

How will the lump-sum payment be calculated?

The lump sum is calculated as one per cent of the annual salary on the grid plus any allowances you receive effective Nov. 15.

When will the lump sum be paid?

Your school board must pay you the lump sum prior to Dec. 31, 2015. Contact your local Economic Policy Committee members to find out when your board will be making the payment.

I will be on maternity leave (first 15 weeks of leave for birth mothers) on Nov. 15. Do I get the lump-sum payment?

Yes, you will be paid the lump sum. However, you must claim the amount received and report that revenue to Employment Insurance (EI) during the week of Nov. 15. While on maternity leave, EI claws back any earnings dollar for dollar so your EI payment will be reduced by the amount of the lump-sum payment. Under no circumstances would EI claw back more than the regular EI payment for the week of Nov. 15, and this week could be affected by the lump-sum payment. Failure to report the income could result in penalties when you file your taxes next year, so make sure the lump-sum payment is reported as income during the week of Nov. 15. This is required no matter when you actually receive the lump sum. You need to report when the money was "earned" (Nov. 15) not when the money was paid.

I will be on parental leave (37 weeks of leave available to either parent or adoptive parents) on Nov. 15. Do I get the lump-sum payment?

Yes, you will be paid the lump sum. However, you must claim the amount received and report that revenue to Employment Insurance (EI) during the week of Nov. 15. While on parental leave, EI claws back half using the following formula: "... claimants are able to keep 50 cents of their EI benefits for every dollar they earn during the week of November 15, up to 90 per cent of the weekly insurable earnings they used to calculate your EI benefit amount."

• If your lump-sum payment is less than $857, your EI payment will be reduced by half of the value of your lump-sum payment.

• If your lump-sum payment is more than $857, your EI payment will be reduced by $428.50 (half of the lump-sum payment) plus the total amount exceeding $857.

• Failure to report the income could result in penalties when you file your taxes next year so make sure the lump sum is reported as income during the week of Nov. 15. This is required no matter when you actually receive the lump sum. You need to report when the money was "earned" (Nov. 15) not when the money was paid.

I am currently on an unpaid leave of absence. Do I get the lump-sum payment?

Because you are under contract, you will receive the lump-sum payment based on your current grid placement as of Nov. 15, 2015 and the FTE you had on your last day of work.

I am on a part-time leave of absence from my full-time contract. Do I get the lump-sum payment?

You will receive the full lump-sum payment because the lump sum is based on contract status and full-time equivalence prior to your leave.

I have a part-time contract and am currently working 0.6 full-time equivalent. Do I get the lump-sum payment?

Your lump-sum payment should reflect one per cent of your gross annual salary as a 0.6 FTE teacher.

I am currently on sick leave. Do I get the lump-sum payment?

You will receive one per cent of your current grid placement multiplied by the FTE of the last day that you worked.

I am currently collecting Extended Disability Benefit. Do I get the lump-sum payment?

You will receive one per cent of your current grid placement multiplied by the FTE of the last day that you worked.

Does the lump sum count as pensionable service?

No, the lump sum is not considered pensionable salary.

Will there be any deductions from the lump-sum payment?

Like all other income, you will be required to pay income tax as well as Employment Insurance premiums and Canada Pension Plan contributions if required.

What if I am on leave from one public or separate school jurisdiction and under contract with another?

A teacher may hold two contracts simultaneously as long as both school jurisdictions are aware of and agree to the arrangement. In this case, you should remind the payroll department of the school jurisdiction that is currently paying you of your status, so the two school jurisdictions can decide which one will pay the lump sum. While it may be tempting to receive two lump-sum payments, this may cause you significant employment and professional sanctions when it is discovered.

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