5. Contributions. Overview Introduction... 3

Transcription

1 5. Contributions Page Table of Contents Overview Introduction How to Determine Pensionable Salary Introduction Pensionable Salary Non-pensionable Salary Pensionable Salary Cap CPP Integration Introduction CPP Exempt Mandatory vs. Voluntary Contributions Reporting a CPP Change through PBR How to Calculate Member Contributions Contribution Formula Full-time Member Working for More Than One Employer Occasional Teacher Receiving Payments Directly from WSIB Re-employed Pensioner Matching Member Contributions Introduction Matched by the Ministry Matched by the Employer Due Dates Interest Rates How to Remit Due Date National Direct Deposit Service (NDDS) Supporting Documentation Interest Rates for Late Member Contributions January Contributions

2 5. Contributions Page Discrepancy Process Introduction Manage ECDs Online What You Will Receive How to Pay Outstanding Balances Due Date and Interest Charges Settling Member Accounts Sample Statement of Overpayment Sample Invoice (page 1) Sample Invoice (page 2) Description of Statement and Invoice Reference List Reason Codes Introduction Reference List Retirement Compensation Arrangement Background RCA and RPP Contributions Separated by TPP January Contributions

3 Overview Introduction Once you have determined that an employee is eligible to be a member of our plan, you must deduct contributions from their pensionable salary and send them to us on a monthly basis. This section provides you with detailed instructions on when and how to remit contributions to us. It covers the following areas: Pensionable vs. non-pensionable salary we ve included a checklist of common compensation elements this will help you determine when to deduct contributions on earnings and when to exclude earnings from pensionable salary. CPP integration the teachers pension plan is integrated with the Canada Pension Plan (CPP). We tell you how this impacts our contribution formula. Calculating and remitting we provide detailed instructions on how to calculate and send us contributions. Employer contributions members contributions are matched either by the government or their employer. We tell you when these matching contributions are due and how interest is calculated for late payments. Discrepancy process we send you contribution discrepancy invoices and/or statements when underpayments and/or overpayments occur as a result of changes made to members service records for a reconciled year. We guide you through the contribution discrepancy process and describe how to manage your ECDs online. Retirement Compensation Arrangement (RCA) the RCA is a trust fund created by the pension board for contributions in excess of limits set by the Income Tax Act. Contributions are capped at a maximum annual rate of pay of six times the Year s Maximum Pensionable Earnings (YIMPE). This limit applies to pension benefits provided under the teachers pension plan and RCA combined. January Contributions

4 How to Determine Pensionable Salary Introduction Generally, if members receive payment for employment in education, their salary is considered pensionable and contributions are required. Pensionable Salary Contact us if you have any questions concerning: payment scenario not outlined in this section, or pensionable salary prior to Pensionable salary is narrowly defined as the regular salary received in a school year for employment in education. The following payments are also considered pensionable: salary members would have received had they not participated in a deferred salary leave plan (i.e., X/Y plan) salary earned during a secondment arrangement, excluding any compensation not eligible under our Plan salary relating to disability benefits which at least maintain the member s pre- LTIP salary (see Section 11, Disability, for more details) payments for loss of earnings as a result of a Workplace Safety and Insurance Board claim, regardless of who pays the benefit retroactive payments for employment in education received after a school year or period to which it is applicable (includes payments made for retroactive contract settlements) payments to contract employees for vacation when reported with service credit vacation payments for occasional teachers (usually included in their per diem or hourly rate) home instruction and marking allowance where employed by a school board and reported with service credit board and lodging when approved by Teachers sabbatical leave, at the rate the member is paid, where a member works in an alternative capacity (i.e., research) salary earned during a paid suspension as long as the payment is not related to retirement or termination of employment salary members would have earned had they not taken a mandatory unpaid day or a short absence January Contributions

5 How to Determine Pensionable Salary Non-pensionable Salary Contact us if you have any questions concerning nonpensionable salary prior to You should not remit contributions for any portion of member s earnings considered non-pensionable. Non-pensionable earnings include: perquisites related to employment (e.g., car allowance, health club membership) payments to reimburse the member for expenses incurred during employment payments related to employment benefits lump sum payments for accumulated sick leave payments, whether made in a lump sum or ongoing, related to unused, accumulated vacation pay payments for Employment Insurance Supplemental Unemployment Benefit (SUB) plan payments related to retirement or termination of employment beyond statutory requirements (e.g., early retirement incentive plans, retirement gratuities, severance) reimbursements for LTIP premiums payments made after member s death date not related to service Employment Insurance rebate reported with salary bonus for completing a course service gratuities based on hire date payments in lieu of medical or other benefits (including any under collective agreements, personal contracts, customized benefits packages where employees opt out of certain benefits and convert the credit into cash, etc.) non-taxable board and lodging discretionary merit allowances (i.e., honourariums, performance-based incentive payments) meeting allowance (if excess service or to compensate for meeting expenses) January Contributions

6 How to Determine Pensionable Salary Pensionable Salary Cap The maximum annual pensionable salary for 2016 is $329,400. Effective January 1, 2007, members pension benefits and contributions will be capped at a maximum annual rate of pay of six times the YMPE. The limit, introduced by the OTF and the Ontario government, applies to pension benefits provided under Teachers registered pension plan and the retirement compensation arrangement (RCA) combined. Based on the 2016 YMPE of $54,900, an employee will reach the pensionable salary limit in 2016 if he or she earns salary at an annual rate of $329,400 or more during the year. As the YMPE increases, the maximum annual rate will also increase. Reporting procedure If you have an employee earning more than six times the YMPE on an annual basis, provide us with a contract rate of six times the YMPE (e.g., $329,400 for 2016). To ensure members receive the maximum pensionable salary, we have determined that it would be more appropriate to cap the salary on a per diem basis for each reporting period (January to August and September to December). Therefore, we will adjust the last pay in each period to make the per diem correction. While this adjustment may create a contribution difference, please do not make any additional adjustments to correct the discrepancy. For employees ceasing employment mid-year, we will also make the necessary adjustment to the pensionable salary and required contributions, if their earnings exceed the maximum allowable on a school-year basis. January Contributions

7 CPP Integration Introduction CPP Exempt Important Mandatory vs. Voluntary Contributions For questions about their CPP pension, members should contact their local office of Human Resources Development Canada. The Teachers Pension Plan (TPP) is integrated with the Canada Pension Plan (CPP). As a result, most members contributions to the TPP are CPP liable, meaning their contributions are partially offset by the amount they contribute to CPP. When members turn 65, or begin receiving a CPP disability pension, their teachers pension is reduced to offset the pension they will receive from CPP. Some members are not required to contribute to CPP. They include those who: belong to a religious order and have taken a vow of poverty, have provided their employer and us with a CPP Notice of Entitlement, are receiving LTIP and/or a CPP disability pension, have Native Indian status and earn income on a reserve, were employed in a job-sharing position between September 1, 1982 to August 31, 1989, inclusive, or are 70 or older (CPP liable up to the end of the month member turns 70). If members are not required to contribute to the CPP, their contribution rate for all of their pensionable salary is the Over YMPE rate (see next page). If members are under age 65, working and receiving a CPP retirement pension, they must contribute to CPP (exceptions listed above). If they are between ages 65 and 70, working and receiving a CPP retirement pension, additional CPP contributions are voluntary. Please ensure you report the correct CPP liability status based on the information you have on file. For regular employment, mandatory and voluntary CPP contribution periods: report as CPP liable; and use the integrated contribution rate to calculate contributions based on the pay period information on which they are deducted and reported. While additional CPP contributions are voluntary for employees over the age of 65, contributions to Teachers remain mandatory. Members must provide you with a completed CPT30 form to elect to stop contributing to CPP (form available from the Canada Revenue Agency). We do not require a copy of this form. Reporting a CPP Change through PBR Please inform us if a member s CPP status changes. The effective date of the CPP status change is the first pay date affected by the change. For example, if the effective date of the CPP status change is October 1, 2014, change the status to non-liable the first paydate that occurs on or after October 1. January Contributions

8 How to Calculate Member Contributions Contribution Formula Current contribution formula The contribution rates are based on the Year s Maximum Pensionable Earnings (YMPE) as determined by the Canada Revenue Agency (CRA). Contributions to the plan are based on the following two-step formula: A = 11.5% x pensionable salary up to and including the YMPE for the year B = 13.1% x pensionable salary above the YMPE for the year A + B = member contributions Beginning January 1, 2012, contribution increases were phased in over three years: Year Up to YMPE Over YMPE % 12.4% % 12.75% % 13.1% Below is a chart summarizing contribution rates from 2005 to The third column is up to and including the YMPE. Contribution rates since 2005 Year YMPE Up to YMPE Over YMPE 2005 $41, % 8.9% 2006 $42, % 8.9% 2007 $43, % 10.9% 2008* $44, % 12.0% 2009 $46, % 12.0% 2010 $47, % 12.0% 2011 $48, % 12.0% * Member contributions in 2008 were subsidized by the OTF with a credit reserve from the pension negotiations. Once the YMPE is confirmed by CRA, we send you a pension bulletin informing you of the new contribution rate for the following calendar year. January Contributions

9 How to Calculate Member Contributions Contribution Formula, cont d. Historical contribution rates This chart shows historical contribution rates from 1969 to 1992, before the TPP moved to a blended two-step formula. YEARS Below YBE YBE to YMPE Over YMPE 69/01/01 75/08/31 6.0% 4.2% 6.0% 75/09/01 84/08/31 7.0% 5.2% 7.0% 84/09/01 89/12/31 7.9% 6.1% 7.9% 90/01/01 91/12/31 8.9% 7.1% 8.9% Full-time Member Working for More Than One Employer Important If members are employed on a full-time basis to work a full-time school year for an employer, they are not required to make contributions on any additional employment during the same school year. If you receive verification that a member is employed on a full-time basis for a fulltime school year by another employer, do not deduct contributions from the salary paid to the member unless the member directs you to do so. Occasional Teacher Receiving Payments Directly from WSIB Effective September 1, 2006, employees who are injured and receiving payments directly from the Workplace Safety and Insurance Board (WSIB) contribute to the plan as long as they continue to receive payments for loss of earnings (LOE) from the WSIB. For employees with irregular earnings, such as occasional teachers, you are required to collect contributions and report ongoing earnings and service credit during the claim period. Report the contribution as regular employment with salary and credit based on what the employee would have earned had they not been absent due to injury. Employers must follow the WSIB short-term average earnings policy when calculating the average lost earnings for employees with irregular earnings. This policy is used to establish the lost earnings for the first 12 weeks of a claim. The injury date is important for payroll to establish the average earnings before the incident. Average earnings should include paid vacation days. To calculate days lost, employers must obtain the average earnings for the four weeks prior to the injury. Count the weeks with available work days (excluding March and Christmas breaks) and then use total available days to establish the full time available. January Contributions

10 How to Calculate Member Contributions Occasional Teacher Receiving Payments Directly from WSIB, cont d. Summary of Reporting Requirements Determine the average days lost per week Obtain rate of pay at the time of the injury (including vacation pay) Obtain the length of time for the claim Calculate available days for the claim period Average days percentage x the total number of days in the claim period = days lost Days lost x daily rate = pensionable salary for claim (do not use the claim amount) Pensionable salary for the claim period x the contribution rate for the work period = contributions required Example Background Mariah is injured at work on April 20, 2010 Her daily rate of pay is $ She worked three days in the four weeks (18 available work days) before her injury (3/18 days = 17%) Mariah s claim period was 5 weeks (25 days) Calculations Service credit 25 days x 17% = 4.25 days Pensionable salary 4.25 days x $ = $ Contributions required $ x 10.4% = $95.52 Contact us The above example is a general one. For more complicated and/or unique situations, contact us for assistance. Re-employed Pensioner Re-employed pensioners are responsible for keeping track of the number of days they teach and notifying us if they plan to work after the month in which they exceed the limit. You are only required to deduct and remit contributions for those re-employed pensioners who advise you that they have notified us to suspend their pension for recalculation purposes. See Section 4, Membership Eligibility for a list of the eligibility requirements for pension recalculations, as well as details on the re-employment limit and additional reporting guidelines. January Contributions

11 Matching Member Contributions Introduction Members contributions are matched either by the Ministry of Education (the Ministry) or their employer. Generally, school board employees contributions are matched by the government and those working at a designated private school or organization have their contributions matched by their employer. Matched by the Ministry The Ministry matches contributions for members employed in any one of the following ways: by a board of education, as a teacher in a school operated by the Government of Ontario, as a teacher in a Ministry operated by the Government of Ontario, as a teacher in a school outside of Ontario under a teacher exchange system authorized by the Minister of Education, or as a teacher in a school or class operated by the Toronto and Region Conservation Authority. Matched by the Employer Employers match contributions for qualified members in all of the following situations: employment at a designated private school or designated organization, for purchased leaves of absence or breaks in service, for long-term income protection (LTIP) benefits and top-up amounts, during an absence member becomes employed on staff of a faculty of education of an Ontario university on or after January 1, 1990 to a maximum of five years, employed part-time or full-time on January 1, 1990 and remains employed parttime or full-time at a faculty of education of an Ontario university, and employed part-time or full-time continuously at the Ryerson Polytechnic University or a College of Applied Arts and Technology (CAATs) from September 1, 1984 to January 1, 1990 and continues to be employed part-time or full-time either at Ryerson or a CAATs. If your employees fall into any of the categories listed above, you are required to match their contributions. January Contributions

12 Matching Member Contributions Due Dates Ministry of Education Matching contributions from the Ministry of Education are due the first business day of each calendar year. The matching calculation includes the following: required member contributions made, purchases of employer-approved leaves and religious leaves plus interest paid, purchases of optional credit plus interest paid, changes to required contributions from prior years, and additional LTIP contributions (due to freeze on member rates since 2006). Employer Matching contributions from employers are due on the last business day of each month in which the member contribution was made/deducted. The amount must equal the contributions made during the month by or on behalf of those members for whom the employer is required to make contributions. The matching calculation includes the following: required member contributions made, purchases of leaves of absences or breaks in service, contributions for LTIP benefits and top-up amounts, and changes to required contributions from prior years. Interest Rates Important to all employers Interest for late employer matching contributions is based on the following: Start Date = date the payment was due End Date = day before payment is made Rate = Standard Interest + 4% The chart on page 5-14 shows the standard interest rates since January Contributions

13 How to Remit Due Date Send us information electronically Contributions and all supporting documentation are due by 12:00 p.m. on the last business day of the month in which the contributions were deducted from the members salaries. Electronically sending your monthly contributions is the best way to ensure you meet the payment due date and avoid late payment charges. You can do this by using the Royal Bank s National Direct Deposit Service (NDDS). National Direct Deposit Service (NDDS) To be able to submit your monthly remittance information online, you must be registered for TIM. Important The NDDS system enables you to transfer funds by telephone. NDDS users can also send us the required remittance back-up information through the Teacher Information Management (TIM) system. If you currently do not use NDDS, here s how you can enroll: 1. Contact your team leader and they will send you a Direct Deposit Service Enrollment Form. 2. Complete the form and fax it back to us at (416) or please send the fax to the attention of Swire Chin. We ll fax the completed form to the Royal Bank. 3. If your current account is not with the Royal Bank, notify your bank or financial institution of your enrolment with NDDS. 4. The Royal Bank will send you a package to confirm your enrolment and provide detailed instructions on how to use the system. This package will include your personal NDDS location code (i.e. identification number). If you use pre-encoded deposit slips to make your monthly remittances (also known as Method 1), you can destroy the remaining slips after you have received your personal NDDS location code and instruction package. You may wish to keep one in case you experience any problems using the system for the first time. Using NDDS Your package from the Royal Bank will include detailed instructions on how to use the system. They will provide you with the appropriate number to call based on your location. After you reach Royal Bank NDDS, please follow the series of prompts as specified on your instruction sheet. After you have confirmed the deposit amount, you will receive a four-digit confirmation number. Please ensure you record this number you will be asked to enter it when sending us back-up information. This will enable us to accurately match the contributions remitted with the back-up information provided. January Contributions

14 How to Remit Supporting Documentation Send information through TIM It is essential that applicable supporting information accompany all payments you send to us, and that you provide us with this information on the same day you transfer funds. Please send us the contribution information online by signing into TIM and going to Accounts (requires NDDS confirmation). Until all employers transition to TIM usage, we will continue to accept completed Contribution Remittance (0021) forms faxed to us at or When submitting a miscellaneous payment, add a comment under Additional Information on the remittance page to explain the payment. If you need to submit payments separately from your regular month-end remittance, use the Send an additional remittance option (Accounts > Remittance). Use this form only for rare exceptions. Interest Rates for Late Member Contributions Standard interest rates since 2006 Compounding interest If we don t receive payment of members contributions on the last business day of the month, interest is payable based on the following: Start Date = the day the payment is due End Date = day before payment is made Rate = Standard Interest + 4% The chart below shows the standard interest rates since 2006: Year Rate Interest is compounded annually each December 31, unless otherwise stated. January Contributions

15 How to Remit Interest Rates for Late Member Contributions, cont d. The chart below lists the various reasons why interest may be charged and who is responsible for paying it. TPA Reason Charged Payable Original Due Interest Interest Rate to to Date Start End Date Date ss. 20 late remittance of Employer TPP end of the month payment day before standard (3) member member was paid due date payment is + 4% contributions made ss. 20a member Member TPP date of notification payment day before standard (2) undercontributions due date payment is made ss. 23 late remittance of Employer TPP regular member payment day before standard (6) LTIP member contributions due due date payment is + 4% contributions end of the month made following the month LTIP payment is made to the member ss. 25 payment of Minister TPP first business day June 1 st of day before standard (4) Minister s matching following each two years payment is rate in contributions January 1 st prior to made effect on payment that due date June 1 st ss. 26 payment of Matching TPP last day of the payment day before standard (3) Employer matching employer month in which due date payment is + 4% contributions for the member made matching employers contribution was made ss. 27 return of TPP Member or n/a date day before standard contributions made Employer payment payment is in error or not received by returned permitted TPP ss. 28 Section 28 refunds, TPP Member n/a last day of day before standard (3), (5) return of excess and school year it is paid contributions Employer January Contributions

16 Discrepancy Process Introduction When processing a member transaction, we may need to question and change information for service occurring in a previously reconciled year (i.e., pensionable salary, CPP liability). When this happens, an employer contribution discrepancy (ECD) is created. Manage ECDs Online TIM tip When you sign-in to TIM, the homepage displays your total amount due and the overdue amount that is accruing interest: If both amounts are $0, there are currently no outstanding ECD payments for any of your employees. If an amount is shown, select more to view a detailed summary of your outstanding payments. You can immediately identify your total amount due and any overdue invoices that are accruing interest. Summary page The ECD summary page contains information similar to the details appearing on invoices. It breaks down the outstanding amounts by employee select the employee name for additional details. If you plan to pay all or a portion of your outstanding amount with your next remittance, enter the applicable amount(s). This total will appear as an ECD amount on your monthly remittance form. What You Will Receive If contribution discrepancies are created in a reconciled year, you may receive one or both of the following: Refund cheque and statement overpayments Invoice underpaid contributions or outstanding balances from previous invoices The invoices and statements clearly list all members with existing discrepancies and identify each of the outstanding balances service When we generate statements or invoices for 2008 reconciled service, our system is unable to factor in the employer only contribution rate increase that occurred in The contributions are being calculated at 9.6% (up to the YMPE) and 11.2% (above the YMPE) for both the member and employer. The employer portion should be calculated at 10.4% and 12.0% respectively (difference of 0.8%). January Contributions

17 Discrepancy Process What You Will Receive, cont d. If changes are made to 2008 reconciled service and it results in an ECD, we will send you two items. One will be the regular ECD statement or invoice (list of all members with existing discrepancies). The second item will be a separate statement or invoice that specifically identifies the 0.8% difference for 2008 reconciled service. Note that these invoices are not available in TIM. We will send two copies of each invoice one copy for your reference and if you don t send payment online, one to be returned with your payment. Please refer to pages 5-19 to 5-23 for samples of the regular ECD statement and invoice and itemized description of each item appearing on them. How to Pay Outstanding Balances Non-TIM users The best way to pay an outstanding ECD is to include your payment with your regular monthly contribution remittance. After you sign-in, all you have to do is select Remittance under Quick Links on the homepage (you can also go to Accounts > Remittance). If you plan to pay all or a portion of your outstanding amount with your next remittance, enter the applicable amount(s). This total will appear as an ECD amount on your monthly remittance form service When remitting payment for these additional required contributions, enter the amount under Misc. and add the comment payment for 2010 reconciled service. Here are a few things to remember if you re not using TIM to manage your ECDs online: Send us a cheque (post-dated to the due date) to clear the balance on the invoice. If you re not paying the entire amount owed, indicate the amount you have remitted for each member listed on the invoice. If you normally match contributions, the required amount listed on the invoice includes both the members and your matching portion. If you include payment with your regular monthly remittance, complete the appropriate section ( Prior year contributions or Other payments ) when sending us the Contribution Remittance form. Include one copy when sending us any outstanding amounts (by fax or mail). January Contributions

18 Discrepancy Process Due Date and Interest Charges For all payments made in arrears, standard interest plus 4% annum is charged from the original due date. The chart below identifies the historical interest rates for underpayment and overpayment of employer contributions. Years Overpayment Underpayment Historical interest rates November 1, 1966 to 5.06% 5.06% December 31, 1971 January 1, 1972 to 6.09% 6.09% August 31, 1984 September 1, 1984 to Annual Average Bank of Annual Average Bank of December 31, 1989 Canada Rate (B14006) Canada Rate (B14006) + 4% January 1, 1990 to Standard Rate Standard Rate + 4% present Settling Member Accounts Important The amount we bill, or refund, does not always result in an identical transaction with your employee. This may occur for a number of reasons. For example, the right amount may have been deducted from the member initially but not remitted because the discrepancy was never identified. In these situations, the employer makes up the difference today, or is due a return of contributions with interest. Please contact members directly to collect a balance owing or reimburse them for overpayments. If you re having difficulty settling a member s account, contact us and we will help expedite the settlement with the member. January Contributions

19 Discrepancy Process Sample Statement of Overpayment Statement of Overpayment 1 Date: November 17, Employer #: ANYWHERE BOARD ONTARIO 123 MAIN STREET P.O. BOX 100 MONCTON ON A1B 2C3 attn: Payroll Department 4 OVERPAYMENTS OverPay Reported Rea* Srv* Required Remitted Over Number SIN Name Date Cde Cde Salary Contrib Contrib Payment Interest 16 Balance MURPHY, DON REG 1, , Member Total: 1, THOMAS, JOY REG 26, , , , , , Member Total: 26, , , , , , Employer Total: 3, , , Total overpayment enclosed: 4, If you have any questions, please call Janet Robinson (416) * Service Codes REG Employment Service LTP LTIP January Contributions

20 Discrepancy Process Sample Invoice (page 1) Invoice Employer #: Date: November 15, 2005 ANYWHERE BOARD ONTARIO 21 Interest has been 123 MAIN STREET calculated to: December 31, 2005 P.0. BOX 100 MONCTON ON A1B 2C3 attn: Payroll Department PAYMENTS RECEIVED Invoice Payment Payment Number Received SIN Name Amount SMITH, JOHN 22, , Total payments received: 22, PRIOR BALANCES Invoice Invoice Amount Amount Number Date SIN Name Owing Interest Balance Remitted BROWN, TERESA 1, , JONES, BOB BLACK, JIM JOHNSON, EILEEN , , Balance past due: 2, If you have any questions, please call Janet Robinson (416) January Contributions

21 Discrepancy Process Sample Invoice (page 2) 32 5 Invoice Employer #: Date: November 15, 2005 ANYWHERE BOARD ONTARIO Interest has been 123 MAIN STREET calculated to: December 31, 2005 P.0. BOX 100 MONCTON ON A1B 2C4 attn: Payroll Department CURRENT BALANCES Invoice Reported Rea* Srv* Required Remitted Under Amount Number SIN Name Date Cde Cde Salary Contrib Contrib Payment Interest 35 Balance Remitted LEE, DOUG REG 25, , , , ,850.41CR 1,148.71CR REG 37, REG 25, , , , REG 37, REG 25, , , , Member Total: 151, , , , , Employer Total: 7, , Current invoice balance: 7, Total outstanding: 10, If you have any questions, please call Janet Robinson (416) * Service Codes REG Employment Service LTP LTIP January Contributions

22 Discrepancy Process Description of Statement and Invoice Reference List Date the date invoice or overpayment was issued. Employer Number the number assigned by the Ministry of Education to all organizations that employ members of the Teachers Pension Plan. Board name and address the name and address of the school board that is currently reporting, sent to the attention of the payroll department. Overpayments this section details changes made which result in amounts owing to the identified members. There will always be a cheque attached if this statement is issued. Overpayment/Invoice Number the reference number for all of the transactions listed on the current overpayment statement or the current invoice. Where prior balances exist, it will identify the invoice number on which the transaction originally appeared. SIN the Social Insurance Number of the member whose service record was adjusted. Name the name of the member whose service record was adjusted. Reported Date the date identifying the period in which the adjustment was applicable to (i.e would be the January to June reporting period for 1993). Reason Code the reason why the member s service record was adjusted. Service Code the employment type affected by the adjustment. Salary the salary used to determine the required contributions. Required Contributions the amount which the member should have contributed based on their adjusted service record. If you are an employer who matches contributions, this amount includes your matching portion. Remitted Contributions the amount actually reconciled for the member prior to the adjustment being made. Overpayment the amount which was overpaid for the identified member. Interest the interest accrued (standard interest rates) to the amount owing from the original reporting period. Balance the total amount owing for the identified member. Member total summary of member s transactions on current statement or invoice. Employer total summary of transactions on current statement or invoice. Total overpayment enclosed the amount of the cheque included with the statement. January Contributions

23 Description of Statement and Invoice Reference List, cont d Contact person the name of the Employer Information Service Analyst to contact if you have any questions about the statement or invoice. Interest has been calculated to date the date to which standard interest rates have been applied to outstanding amounts. Payments received this section details payments we ve received for previous outstanding amounts. Payment received the date we received any payments for prior balances. Payment amount allocated amounts previously received for identified members. Total payments received payments received for prior invoices/balances. Prior balances this section details outstanding amounts for identified members (previously billed). Invoice date the date original invoice was issued. Amount owing amount outstanding from previous month s invoice for identified member. Interest the interest accrued (standard interest rates plus 4%) to the amount owing from the original invoice due date. Amount remitted column for you to complete when returning a partial payment so we can allocate the correct amounts for each member. Balance past due total outstanding balance from prior invoices. Current balances this section identifies new adjustments and corresponding amounts owing. Underpayment the amount underpaid for the identified member due to the adjustments made to their service record. Interest the accrued interest (standard interest rate plus additional 4%) payable on the amount in arrears from the original contribution due date to the day prior to payment being made. CR when this appears beside a dollar amount, it indicates an overpayment credit has been applied against the existing underpayment balance for the identified member. Current invoice balance total amount owing for the new adjustments. Total outstanding the sum of the balance past due and the current invoice balance. January Contributions

24 Discrepancy Process Reason Codes Introduction Whenever a member s record is adjusted, we capture the reason for the change. The following is a numerical list of possible reason codes you may see on your invoice. Reference List Code Description 101 Missing service service and salary which was not previously reported was added to a member s record. 102 Occasional teacher not reported occasional service which was not previously reported was added to a member s record. 103 Service type change affecting contributions member is reported with one type of service and it was changed to another (i.e. regular to LTIP). 104 Double posted while reviewing data, we discovered the record was posted twice in error. 105 Regular salary adjusted we received information which required an adjustment to salary that was originally reported incorrectly. 115 Non-pensionable salary deleted salary which was originally thought to be pensionable was deleted (i.e. lump-sum vacation pay). 116 Delete ineligible service member doesn t hold valid qualifications (i.e. not qualified to teach) and is therefore ineligible to be a member of our plan. 122 Delete regular service service was reported in error or for the wrong period (i.e. non-pensionable or unqualified member). 125 Delete and add to the correct employer or member service was assigned to the wrong employer or member. 202 Rehab earnings reported in error rehab earnings paid while on LTIP were deleted. 204 LTIP salary adjusted LTIP salary was calculated incorrectly or included COLA increases. 205 Change of LTIP class code LTIP class was changed from 5 to 6 or vice versa. 206 Pre-LTIP salary adjusted pre-ltip salary was incorrectly reported. 207 Adding LTIP LTIP was approved retroactively or was not previously reported. 208 LTIP deleted LTIP benefits ended. 209 LTIP adjusted to include true-up amount adjustment was made to reflect payments on 10-month basis rather than 12-month basis. January Contributions

25 Discrepancy Process Reason Codes Reference List, cont d. 301 Embedded retro exists split was required to reallocate retroactive earnings into proper period. 302 Retro added retroactive payment was not previously reported. 303 Pay equity pay equity amounts were added or broken down for applicable years. 401 Maternity leave adjustment previously reported maternity leave was added or corrected. 501 Deferred salary leave salary was reported incorrectly for the X/Y plan. 502 Collapsed deferred salary leave X/Y amounts were added or broken down for applicable years. 503 CPP liable/exempt change service was changed from liable to exempt or vice versa. 505 Member on pension service for re-employed pensioners was deleted as they were employed for less than the maximum number of days allowed. January Contributions

26 Retirement Compensation Arrangement (RCA) Background The Income Tax Act (ITA) generally specifies that individuals are eligible to deduct, on an annual basis, a maximum registered pension plan contribution ($18,787 in 2016 not including past service contributions). In addition, individuals may generally receive a maximum annual pension per year of credited service from a Registered Pension Plan (RPP). The teachers pension plan is an RPP. For 2010 and beyond, the values for the defined benefit limit are indexed to the Average Industrial Wage (AIW). The chart below shows the values since 2013: Year Defined Benefit Limit 2013 $2, $2, $2, $2, Annual maximum for TPP The RCA is a trust fund created outside the teachers pension plan to hold the contributions and pay certain pension benefits which are in excess of the ITA limits. Under the RCA agreement, the level of contributions to the RPP and the RCA is determined by the plan s actuary. Our actuary reviews our contribution level and determines the maximum registered pension plan contributions to be made to the plan. Effective January 1, 2016, the maximum amount a member can contribute to the teachers pension plan is $14,500. This ensures an adequate amount of contributions continues to flow into the RCA. RCA and RPP Contributions Separated by TPP Important The ITA requires that accounting and financial reporting for the RCA be separate and distinct. We, the plan administrator, have guaranteed CRA that we will comply with legislation and ensure RPP and RCA funds will not be combined. To ensure contributions remain separated, we have set up a clearing account. We direct all employer remittances to this account so we can administer the appropriate allocation of contributions on your behalf. To facilitate the transfer, we must receive your monthly remittance and all supporting documentation by 12:00 p.m. on the last business day of the month. Please see pages 5-13 to 5-15 for instructions on how to remit. January Contributions