CAAT Pensionable Service Calculation (FT) Instructions and Examples

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Meredith Opal Tucker
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1 Pensionable Service Pensionable Service is the service reported to the CAAT Pension Plan, and is used in the calculation of pension benefits and Pension Adjustments (PAs) for T4 reporting. Pensionable Service is reported to CAAT Pension Plan annually as part of the DCT reporting, and is also calculated for terminations, retirements, and leaves. Pensionable Service must, by law, relate to the calendar year in which it is worked (as opposed to when earnings related to the worked period are paid). Pensionable Service Calculator The CAAT Pensionable Service Calculation Excel worksheet has been developed to assist employers with the transition to a new Pensionable Service calculation methodology. The spreadsheet can be used to perform Pensionable Service calculations as required, but is also intended as a reference tool for coding the calculation to payroll and HR systems. It indicates the required data elements and formulas for calculating Pensionable Service. The worksheet has been set up to be future-looking. It does not include Pensionable Service calculations for 2012 with the transitional rules. For 2012 Pensionable Service calculations please use the service calculator embedded in the PA and Contributions calculator on the CAAT Pension Plan website. Notes 1. If you are using Excel 2003, you may get #VALUE errors from some of the functions. If this happens, try going into ToolsAdd-ins and activating the Analysis ToolPak add-in. The NETWORKDAYS function (which calculates weekdays between two dates) is built in to Excel 2007 and newer versions, but is part of the Analysis ToolPak add-in in Excel You may be prompted to enable macros when opening the workbook. The spreadsheet includes and buttons as shortcuts. If macros are not enabled these buttons will not function, though the rest of the calculations in the spreadsheet will still work. Full-Time Calculation This worksheet is designed to be used for Full-Time employees who have less than a full year of service, such as: Mid-year hire Mid-year termination/retirement Unpurchased leaves (in the current year) Changes in employment status FT to OTRFT or vice versa Process: Input cells are yellow (data entry) and blue (dropdown list) Input employee name and ID (optional fields) Select the year from the dropdown Enter the Enrolment and/or Termination dates only if they are within the selected year Select the member s employee group (Administration, Faculty, or Support with a regular work day of 7, 7¼, 7½, or 8 hours) from the dropdown Pensionable Service Calculation Type is set to Workdays for Administration and Faculty employees, and Hours for Support employees Denominator for the Pensionable Service calculation: o For Pensionable Service calculations in Workdays, the denominator is the actual number of workdays (i.e. all weekdays, including statutory holidays) in the calendar year, which can be 260, 261, or 262 Page 1 of 7

2 o For Pensionable Service calculations in Hours, the denominator (full-year hours) is the actual number of workdays in the calendar year multiplied by the regular hours per day The worksheet has space for up to 30 unpaid leaves during the year: o 15 spaces for leaves input by start and end dates, and o 15 open-entry cells that can be used to record miscellaneous leaves of less than a full day (leaves of a full day or more should be input in the first 15 leaves, based on start and end dates); the open-entry cells each have a reference cell next to it so the user may record any desired information, e.g. the date/time of the partial-day leave For the 15 leaves based on dates, the user must input the start and end dates of the leave, and the worksheet calculates the length of the leave in Workdays or Hours, as applicable to the particular Pensionable Service calculation o The start and end date for a one day leave is the same. For example, if a member takes April 11, 2013 as a leave day, then in the leave calculator you would enter the leave Start Date as April 11, 2013 and the leave End Date as. The total of the (up to 15) calculated and (up to 15) open-entry leaves, in Workdays or Hours as applicable, is offset from the maximum Pensionable Service based on the enrolment/termination dates, to determine the Pensionable Service for the year Pensionable Service is not calculated if any warnings are displayed on the worksheet: o Missing year or employee group o Enrolment or Termination date outside the applicable year or end date before start date o Any leave outside the year (or outside the portion of the year encompassed by the enrolment and/or termination dates) o Any leave missing start or end date, or end date before start date o Overlapping leaves based on leave dates o Any open-entry leave equal to 1 Workday (or the number of Hours in a regular day for a Support staff) or more Members who change jobs within FT status If a member changes jobs but is Full-Time in both jobs, the FT worksheet can be used twice, for each portion of the year and each job, to calculate the total Pensionable Service for the year. See example #4 below. Maximum Pensionable Service Maximum Pensionable Service in the year is However, the Enrolment and/or Termination date fields are used to indicate that the member enrolled, terminated, or changed between FT and OTRFT status during the year, in which case the maximum Pensionable Service is restricted to the period of the year that the member is in the Plan and in that particular employment status. The maximum Pensionable Service is based on the number of workdays between the start date (January 1 st of the year or the date in the enrolment/status start date field) and end date (December 31 st of the year or the date in the termination/status end date field), regardless of whether the Pensionable Service calculation is based on Workdays or Hours. In either case, the portion of the year the member is in the Plan (or in the FT/OTRFT status) is represented by the number of workdays, and thus the maximum Pensionable Service is calculated on that basis. Page 2 of 7

3 Example Calculations Example #1 FT Faculty member with leaves In the first example the member is FT for all of 2013, enrolled prior to 2013, and did not terminate (so neither date is filled in). The member is a Faculty employee, so the Pensionable Service calculation is based on Workdays, of which there are 261 in The member has three unpaid leaves during the year 6 workdays (Friday to Friday) in February and the full month of November, which are input by dates, and a miscellaneous half-day in April input in the open-entry field for Partial-day Leave #1. See the screenshot below (with some of the unused leave rows hidden for space). The spreadsheet calculates the total service as /261 = years, since the three leaves total 27.5 work days and the calculation is based on 261 workdays in Jane Doe Employee ID/SIN Date of Termination/Last day of FT (if in 2013) Faculty Pensionable Service Calculation Type Workdays Leave Period Calculator Workdays in calendar year Leave Period(s) in Workdays Start Date End Date Work Days Hours Workdays of Leave #1 (linked to calculator) 6 Leave #1 1-Feb Feb Workdays of Leave #2 (linked to calculator) 21 Leave #2 1-Nov Nov Workdays of Leave #3 (linked to calculator) Leave #3 Workdays of Leave #4 (linked to calculator) Leave #4 Workdays of Leave #15 (linked to calculator) Reference Leave #15 Partial-day Leave #1 (input Workdays) 0.5 half-day April 15 Partial-day Leave #2 (input Workdays) Partial-day Leave #3 (input Workdays) Partial-day Leave #4 (input Workdays) Partial-day Leave #15 (input Workdays) Total Leave Workdays 27.5 Total Leaves (fraction of year) Maximum Pensionable Service Total Leaves (to offset) ( ) Total Page 3 of 7

4 Example #2 New hire, FT Administration member In this example the member is hired on February 4, 2013, and spends the duration of the year in the Plan with no leaves. The Date of Enrolment is filled in on the spreadsheet. The member is an Administration employee, so the Pensionable Service calculation is based on Workdays, of which there are 261 in There are 237 workdays from February 4 to December 31, so the maximum Pensionable Service is 237/261 = Since the member had no unpaid leaves, their is the maximum Pensionable Service, John Q. Public Employee ID/SIN Feb-2013 Date of Termination/Last day of FT (if in 2013) Administration Pensionable Service Calculation Type Workdays Leave Period Calculator Workdays in calendar year Leave Period(s) in Workdays Start Date End Date Work Days Hours Workdays of Leave #1 (linked to calculator) Leave #1 Workdays of Leave #2 (linked to calculator) Leave #2 Workdays of Leave #3 (linked to calculator) Leave #3 Workdays of Leave #4 (linked to calculator) Leave #4 Workdays of Leave #15 (linked to calculator) Reference Leave #15 Partial-day Leave #1 (input Workdays) Partial-day Leave #2 (input Workdays) Partial-day Leave #3 (input Workdays) Partial-day Leave #4 (input Workdays) Partial-day Leave #15 (input Workdays) Total Leave Workdays 0 Total Leaves (fraction of year) Maximum Pensionable Service (Based on enrolment and/or termination date) Total Leaves (to offset) Total Page 4 of 7

5 Example #3 FT Support member with leaves and termination In this example, a FT Support employee with an 8 hour regular workday joined the Plan prior to 2013, and terminates on June 30, The Pensionable Service calculation is based on Hours, with the full-year hours being 2088 (261 workdays in 2013 multiplied by 8 hours per day). The member took an unpaid leave for March Break week, input in the leave calculator based on the dates, and another half-day leave input in the open-entry cell for Partial-day Leave #1. The leave is input as starting on the Saturday before March Break week and ending on the Sunday after the week, but the worksheet only counts workdays of leave, so the leave is 5 days, or 40 hours at 8 hours per day. Strictly speaking, the leave should be input as March 11-15, but there is no difference in the calculation since only the 5 workdays are counted. There are 129 workdays in the period from January 1 to June 30, 2013, so with the two leaves totalling 44 hours (the 40-hour week, plus 4 hours for the half-day), the spreadsheet calculates the pensionable service as: The maximum pensionable service (129/261 = ) Less the leaves 44/2088 = = Joe Bloggs Employee ID/SIN Date of Termination/Last day of FT (if in 2013) 30-Jun-2013 Support (8 hrs/day) Pensionable Service Calculation Type Hours Leave Period Calculator Hours in calendar year workdays x 8 hours per day Leave Period(s) in Hours Start Date End Date Work Days Hours Hours of Leave #1 (linked to calculator) 40 Leave #1 9-Mar Mar Hours of Leave #2 (linked to calculator) Leave #2 Hours of Leave #3 (linked to calculator) Leave #3 Hours of Leave #4 (linked to calculator) Leave #4 Hours of Leave #15 (linked to calculator) Reference Leave #15 Partial-day Leave #1 (input Hours) 4 half-day unpaid January 23 Partial-day Leave #2 (input Hours) Partial-day Leave #3 (input Hours) Partial-day Leave #4 (input Hours) Partial-day Leave #15 (input Hours) Total Leave Hours 44 Total Leaves (fraction of year) Maximum Pensionable Service (Based on enrolment and/or termination date) Total Leaves (to offset) ( ) Total Page 5 of 7

6 Example #4 Support Member changes from one FT job to another FT job, with leaves In this example a Full-Time Support member changes jobs during the year, but is Full-Time in both positions. The two positions have different regular hours per day and the member has leaves, so the calculation can be separated into two pieces in order to handle hours being treated differently. The member enrolls in the Plan on March 18, 2013, working in a Support job with a regular workday of 7 hours until September 6, 2013, a Friday. As of the following Monday, September 9, they change to a job with a regular workday of 7½ hours and spend the balance of the year in that job. During the year, the member has a one-day unpaid leave in the first job in August, and one full day and two partial-day unpaid leaves in the second job in October. For the first job, there are 125 workdays in the period from March 18 to September 6, and the member takes one unpaid day, or 7 hours. The full year 2013 includes 261 workdays, so the full-year hours in this job are 261 x 7 = The Pensionable Service for the first job is calculated as 125/261 7/1827 = = In the second job, there are 82 workdays from September 9 to December 31. The member takes hours of leaves (one full day, one half-day, and 2 hours), and the full-year hours in this job are 261 x 7.5 = The Pensionable Service for the second job is calculated as 82/ / = = Thus, the member s total Pensionable Service for the two positions is = years. Employee ID/SIN F. T. Changer Mar-2013 Date of Termination/Last day of FT (if in 2013) 6-Sep-2013 Support (7 hrs/day) Pensionable Service Calculation Type Hours Leave Period Calculator Hours in calendar year workdays x 7 hours per day Leave Period(s) in Hours Start Date End Date Work Days Hours Hours of Leave #1 (linked to calculator) 7 Leave #1 12-Aug Aug Hours of Leave #2 (linked to calculator) Leave #2 Hours of Leave #3 (linked to calculator) Leave #3 Hours of Leave #4 (linked to calculator) Leave #4 Hours of Leave #15 (linked to calculator) Reference Leave #15 Partial-day Leave #1 (input Hours) Partial-day Leave #2 (input Hours) Partial-day Leave #3 (input Hours) Partial-day Leave #4 (input Hours) Partial-day Leave #15 (input Hours) Total Leave Hours 7 Total Leaves (fraction of year) Maximum Pensionable Service (Based on enrolment and/or termination date) Total Leaves (to offset) ( ) Total Page 6 of 7

7 F. T. Changer Employee ID/SIN Sep-2013 Date of Termination/Last day of FT (if in 2013) Support (7½ hrs/day) Pensionable Service Calculation Type Hours Leave Period Calculator Hours in calendar year workdays x 7.5 hours per day Leave Period(s) in Hours Start Date End Date Work Days Hours Hours of Leave #1 (linked to calculator) 7.5 Leave #1 10-Oct Oct Hours of Leave #2 (linked to calculator) Leave #2 Hours of Leave #3 (linked to calculator) Leave #3 Hours of Leave #4 (linked to calculator) Leave #4 Hours of Leave #15 (linked to calculator) Reference Leave #15 Partial-day Leave #1 (input Hours) 3.75 half-day leave Oct 24 Partial-day Leave #2 (input Hours) 2 2 hours leave Oct 25 Partial-day Leave #3 (input Hours) Partial-day Leave #4 (input Hours) Partial-day Leave #15 (input Hours) Total Leave Hours Total Leaves (fraction of year) Maximum Pensionable Service (Based on enrolment and/or termination date) Total Leaves (to offset) ( ) Total Page 7 of 7

Pensionable Service and Contribution Calculation for OTRFT Members

Pensionable Service and Contribution Calculation for OTRFT Members Methodology and Calculator Demos June 27, 2013 2 3 Agenda Pensionable Service (OTRFT Members) Contribution Calculation based on Annualization