2015 TRENT UNIVERSITY ONE-TIME RETIREMENT INCENTIVE PROGRAM EXEMPT AND OPSEU STAFF FAQ

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1 2015 TRENT UNIVERSITY ONE-TIME RETIREMENT INCENTIVE PROGRAM EXEMPT AND OPSEU STAFF FAQ On March 9, 2015 the University announced a One-Time Retirement Incentive Program, which is intended to help address the University s significant fiscal challenges in We have received a number of questions which we have addressed herein. Not every individual circumstance will be covered below. We encourage you to contact humanresources@trentu.ca and we will either contact you directly or address the broader concerns in subsequent communications. We appreciate your thoughtful feedback. ELIGIBILITY AND PROCESS 1. To whom does this Program apply? The Staff Program, communicated by the President s office on March 9, is open to ALL Exempt and OPSEU staff. 2. If I apply will my application be approved? Not necessarily. Once you indicate interest (see #3 below) and then apply, your request will be included by your manager as part of a budget proposal to be submitted to their respective VP for consideration. The VPs will consider all of the applications relative to the University s financial and strategic goals. After all the budget plans have been submitted and reviewed, the VPs will make a decision as to which applications will be approved by April 17, How and when do I express interest? Am I then committed to retiring? An expression of interest is not a commitment. An expression of interest is simply a request to receive more detailed information specific to your circumstance. This request should be ed or submitted in writing to Denise Fernandes in Human Resources by Friday March 13, and copied to your supervisor. s should be sent to denisefernandes@trentu.ca. Those expressing an interest will be sent a letter from Human Resources outlining their entitlement. The deadline for coming forward with interest has been set as March 13 only to assist department heads in the forecasting of their budget cuts. Budget plans are to be submitted to VPs by March 20 - hence the tight deadline.

2 4. Do I have to have 80 or 85 points to apply for consideration or be approved, and what do these numbers mean? No. Again anyone can apply regardless of age and years of service. The program was originally conceptualized as a Retirement Incentive Program, with the intent of giving an incentive to those employees who can retire WITHOUT a pension penalty, and had not yet decided when and if they were going to retire. Members, both OPSEU and Exempt, turning 60 in this calendar year and having 20 or more years of continuous service in the pension plan (80 factor), would be eligible for the incentive and an unreduced pension. In looking at our demographic we noticed that we had quite a few employees that were age 55 or older with 30 years or more of continuous service in the pension plan (85 factor). Although these members are not eligible for an unreduced pension in our current plan, the University decided that if interest was sufficient and the program met the University s financial objectives, we would explore a one-time opportunity to bridge these individuals to unreduced retirement, including the incentive. If approved this would mean that OPSEU and Exempt employees age 55 and older with 30 years of service will be eligible for the incentive and MAY be eligible for an unreduced pension. In the end, OPSEU asked that we open the program to everyone, understanding that although everyone could apply, not everyone would be approved, and those who left early might incur a pension penalty. Employees under age 55 or with those that do not reach their unreduced retirement date will be eligible for the incentive but will incur normal pension penalties. It should be noted that staff who have already committed to a retirement date are not eligible. 5. How will the University decide who is approved? The VPs will consider all applications and assess the restructuring plans submitted by university budget managers. Key criteria will be whether the applicant is in a position that can (1) be declared redundant or (2) form part of a larger restructuring initiative that will reduce costs. Other considerations may be the impact on the pension plan. 6. Should I submit an expression of interest if I think my position cannot be made redundant? Yes. If multiple applications are submitted from your work unit, it may allow your manager to restructure functions which result in a cost savings. In this case your application may be approved. 7. Am I eligible if I am 65 or older? Yes. You are eligible for the incentive if you are over age 65.

3 SEVERANCE ENTITLEMENT 8. What is the incentive, how is it calculated, and how do I know what I am entitled to? Section 11.4 Layoff of the OPSEU Collective Agreement, states that higher seniority members may volunteer to take the layoff. If they take the layoff, they would then receive notice and severance as outlined under Section Notice of layoff is defined as working notice, and the entitlement is 3 months of working notice for those with less than 5 years of seniority or 6 months of working notice for those with 5 or more years of seniority. As an incentive, approved employees would receive this notice as paid salary continuance or a lump sum, and will not have to work through the notice period. In addition approved members would get Enhanced Severance pay which is a payment of one week per year of service up to maximum of 13 weeks. For example, if I had 25.5 years of service, and my application was approved, I would receive: Notice: Enhanced Severance: Total: 26 weeks (= 6 months) 13 weeks (maximum) 39 weeks 9. What is salary continuance? How is it different from a lump sum? If approved, you may receive your notice and severance as either salary continuance OR a lump sum payment. Salary continuance means that instead of receiving your notice and severance as a lump sum on May 1, 2015, you will continue to receive your regular salary for the entitlement period. In the example above that would be until January 28, Your last day of work will be April 30, 2015, however you will continue to get pay, receive benefits and have normal deductions taken from your pay until the end of the severance period. Your retirement date from the Trent pension plan would be the 1 st day of the month following the end of your salary continuance period. In the example above, your retirement date from the Trent pension plan would be February 1, If you opt to receive a lump sum payment, you would receive a payment of all notice, severance, and vacation owing, in your regular May pay period and your benefits will cease one month after the 8 week statutory notice period, meaning employees opting for a lump sum payment would receive benefits until the end of July. Your retirement date for this scenario would be the first of the month following the 8 week statutory notice period. 10. Am I entitled to severance if I am over 65? Yes. 11. How will lieu time owing be handled? Approved lieu time will be paid out in the May pay period. The program will not allow for conversion to an extended salary continuance period.

4 12. Are Exempt staff eligible? How will their severance be calculated? Yes Exempt staff are eligible. Although Exempt staff are not included in the Collective Agreement, for equity, severance will be calculated in the same manner. 13. Are part-time employees eligible? Yes, but their entitlement will be pro-rated accordingly. BENEFITS AND VACATION 14. Will benefits continuation be included in the package? Yes. Those employees that elect salary continuance will receive Health and Dental Benefits for the salary continuance period. Long-Term Disability coverage, Employer provided Life Insurance, Optional Life Insurance and Survivor Income benefit will cease. Those who elect salary continuance will also continue to make pension contributions. For those who elect to take a lump sum, and start collecting their pension the first of the month following the statutory notice period, may opt to buy into the Retired Teachers Insurance Plan and may be eligible for the University Health Spending Account to offset the cost. 15. Am I eligible for the Health Spending Account? What is it? If you have 10 or more years of continuous service with the University on your early retirement date, you will be eligible for the health spending account. You will be able to obtain reimbursement of medical/dental and vision care expenses, incurred by you or your spouse until the earlier of the end of the month you reach age 65 or your date of death. If you are single at your early retirement date, you are eligible for $750 per plan year (July 1 to June 30). If you are married at your early retirement date, you are eligible for $1,500 per plan year (July 1 to June 30). For a member who retires in the second six months of the plan year, the amount for the plan year will be ½ of the full amount. In the plan year the retiree attains age 65, if the retiree attains age 65 in the first six months of the plan year, the amount for that plan year will be ½ of the full amount above. If the retiree attains age 65 in the second six months of the plan year, the amount for that plan year will be ½ of the full amount. 16. Am I eligible for Teachers Retirement Benefit Plan (RTIP)? How does it work? All retired Ontario education employees, their families and survivors are eligible. No medical evidence is required if you apply within 60 days of the end of your salary continuous date. Medical evidence is required for their Gold Elite plan only. RTIP offers five plans, each with a different prescription drug maximum, each with extended health care protection, including travel and the option to add dental coverage at any time. Monthly pre-authorized payment plan. Fast and convenient reimbursement through their online claim submission and direct deposit options. An RTIP booklet will be provided in your retirement package.

5 17. How will accrued vacation be handled? What about unused vacation prior to April 30? Any owed vacation will be paid out in your May 2015 pay, subject to approval by your supervisor. 18. How much will I get for financial advising? Upon receiving receipts, the University will reimburse interested employees up to $300 total for financial advising related to this program. Employees will need to fill out an expense reimbursement form and the University will reimburse them. 19. If I am approved for the program and retire, can I be re-employed by the University? Article 10.9 of the OPSEU Collective Agreement reads: Retirees will not be re-employed by the University except in a contract, temporary or on-call capacity and with the approval of the Union. Such approval shall not be unreasonably withheld. Employees who left the University under the Early Retirement or Career Change Incentive Programs shall not be re-employed in any capacity until after their normal retirement date. TIMING 20. Who do I contact if I am interested and when? Expressions of interest should be communicated to Denise Fernandes, in Human Resources, in writing, no later than March 13 and copied to your supervisor. Those expressing an interest will be sent a letter from Human Resources on March 20 outlining their specific entitlement. Once you have received the letter, you can either decline or confirm your interest in being considered for the program and have the VPs consider your application. You must submit your application to HR by March 30, again in writing by to denisefernandes@trentu.ca, or by returning your signed letter to Human Resources. 21. How will I know if I qualify, or if my request is approved? You will receive a letter from Human Resources confirming that your request has been approved after the Vice Presidents meet to finalize the budget on April 17, Can the end date be negotiated? The deadline for staff to accept the one-time retirement incentive will be April 30, This will also be the last day of work for staff accepting the incentive. At this time the program will be applied to all OPSEU and Exempt staff with the same timelines, with the last day of work being April 30. There may be exceptional circumstances and we encourage you to discuss this with your supervisor who may adjust and present their restructuring plan accordingly.

6 23. With OPSEU bargaining happening this spring will this offer be guaranteed? Once approved and signed off on, the offer is irrevocable for both parties. 24. How do I confirm my interest if I do not use ? Please submit a written request to Denise Fernandes in the Human Resources department no later than 4:00 PM on Friday March 13, 2015.