What is considered pensionable time??
What is considered pensionable time (as per pensionsbc)
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).
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