Salary Policy

Preamble

Salary for pension purposes includes all ongoing compensation relating to scheduled or unscheduled hours of work paid at straight-time rates of pay and paid on a periodic basis (i.e., weekly, bi-weekly, monthly, semi-monthly, seasonal, or annual basis).

Salary Inclusions

A) Salaries associated with regular pay:

• ongoing compensation relating to scheduled or unscheduled hours of work paid at straight-time rates of pay;
• retroactive pay – paid to compensate for a period of service while the employee was a contributing member of the Plan;
• common adds to pay including but not limited to;
  • service / long service / retention pay 1 – paid on a periodic basis to employees after a set number of years of service, when they are eligible for an unreduced pension or when they have reached pensionable age;
  • acting or substitution pay – paid to employees when working temporarily in a higher paying position;
  • shift differential pay – a premium paid for working certain shifts (e.g., weekends and nights);
  • first aid pay – paid to employees who perform first aid in addition to their regular job; 1 Qualifying criteria for service/long service/retention pay are determined by the employer.
  • allowances for housing / room and board – a continuous allowance added to salary associated with isolated locations and deemed taxable income by the Canada Revenue Agency;
  • defined by union contract – a shift premium paid to employees who work with or in hazardous situations; and * trade, qualification, or specialty pay – paid on a periodic basis to employees who have additional certification or qualifications.
  • insufficient notice pay – only the straight-time rate of pay for the shift worked, not the additional salary premium paid;
  • salary paid to a member on a rehabilitation program;
  • leave top-up – paid by the employer for maternity, parental, compassionate care and other forms of leave of absence provided for under the British Columbia Employment Standards Act;
  • training pay – paid to employees (mostly firefighters or police officers) prior to being hired as either probationary or regular employees;
  • WCB payments made through the employer;
  • WCB or LTD top-up payments made through the employer – paid to employees to top-up their salaries when receiving WCB or LTD benefits; and
  • cost-of-living payments – an automatic wage increase tied in some way to increases in the cost of living – usually tied to the Consumer Price Index. Must be a continuous add-to-pay, not a one-time payment.

B) Salaries associated with vacation pay:

• full-time employees – when vacation time is taken; and
• part-time / casual employees – when vacation time is taken or when paid on a periodic basis. C) Salaries associated with statutory / paid holiday pay:
• full-time employees – when leave is taken for the statutory / paid holiday; and part-time / casual employees – when leave is taken for the statutory / paid holiday or when paid on a periodic basis.

D) Salaries associated with short-term disability benefit (STDBs) payments:

• STDBs paid directly to a member by the employer are pensionable. The employer must report service and salary and remit contributions on these STDBs;
• STDBs paid by a third party (such as an insurance company or benefits trust) to a member can be deemed pensionable by the employer. If STDBs paid by a third party are deemed pensionable by the employer, the employer must report service and salary and remit contributions on these STDBs2;
• STDBs paid by a third party (such as an insurance company or benefits trust) that are not deemed pensionable by an employer may be eligible for purchase by a member under the leave of absence provisions of the Municipal Pension Plan Rules; and * for pensionable STDBs, the member will continue to accrue contributory service and employers must report pensionable service and salary based on short-term disability leave. Part- time members will accrue service and salary based on their work schedule immediately before the short-term disability leave.
• Salary Exclusions
  • lump sum vacation pay – if paid in lieu of vacation entitlement accumulated in a prior year by a full-time employee and not taken as leave;
  • overtime pay – unless taken as time off or an employer resolution or collective agreement specifies that overtime pay is pensionable;
  • premium or additional pay for statutory / paid holidays worked; 2 Employers already reporting , and remitting on STDBs when this policy change came into effect on March 27, 2008 must continue to do so for all employees.
  • WCB payments when the employee is on approved LTD;
  • car, meal, travel and clothing allowances;
  • pay for on-call or stand-by hours;
  • a lump sum payment(s) (including accrued vacation entitlement(s)) made at the time of termination or retirement – unless it is used to extend the termination date;
  • severance pay – unless it is used to extend the termination date;
  • grievance pay – unless a period of service is associated with the payment;
  • performance or signing bonuses;
  • additional pay in lieu of group benefits or payment of premiums for group benefits; and
  • Employment Insurance rebate payments