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JOINT COMMUNICATION
Multi-Employer/UNA Collective Agreement
Market Condition Lump Sum Payment
Resolution of Issues re: Pension and Group RRSP
September, 2008
There has been a resolution reached by the Multi-Employer/UNA Joint Committee (Joint Committee) regarding the last two outstanding issues related to the Market Condition Lump Sum (MCLS) Payment LOU, which include:
• Pensionability of the MCLS payments and retroactive Employee and Employer contributions to the LAPP; and
• Inclusion of the MCLS payment as regular earnings for the purpose of the Group RRSP provided in Article 29.05.
Background
• The MCLS payment was added to the 2007 Multi-Employer/UNA Collective Agreement (Collective Agreement) to attract and retain nurses. The lump sums are paid for each six month period of the Collective Agreement commencing in October, 2007 and concluding in March, 2010.
• Alberta Pension Administration Corporation (APA) has confirmed that the MCLS payment is pensionable for LAPP.
• Nurses can elect to participate in the Group RRSP. The Group RRSP provides for matching Employer contributions of a maximum of 2% of all “regular earnings”.
• The issue of whether the MCLS payment is “regular earnings” for the Group RRSP was grieved and scheduled for an arbitration hearing in December, 2008.
Resolution
The Joint Committee has had discussions and reached the following resolution to deal with both outstanding issues:
• LAPP contributions will be applied to future MCLS payments as required by the APA ruling on pensionability on a go-forward basis only. This means that Employers will have to deduct and remit Employer and Employee pension contributions on the MCLS payment beginning with the MCLS payment due for October 2008. There will be no retroactive LAPP contributions for the two MCLS payments (October, 2007 and March, 2008) already paid; and
• Beginning with the MCLS payment due for October 2008, the MCLS payments will be treated as regular earnings for the purposes of contributions to the Group RRSP. This means that Employees will be able to include the MCLS payment due for October 2008 and future MCLS payments in their “regular earnings” to determine their and the Employer's matching contributions to the Group RRSP in accordance with Article 29.05. In the event that an Employee has requested a standard percentage of regular earnings RRSP contribution amount, the same standard percentage Employee contribution amount and matching Employers contributions will apply to the MCLS payment for October 2008 and all future MCLS payments. There will be no retroactive Employee or Employer contributions and
the scheduled arbitration is cancelled.
Schedule of Payment Dates
The schedule of pay dates on which Employees will be receiving the next MCLS payment is attached as Appendix A.
If you have any questions regarding the resolution of this issue, please contact your applicable representative as follows:
For the Union:
David Harrigan
Director of Labour Relations
United Nurses of Alberta
1.800.252.9394
For the Employers:
Cory Galway
Senior Negotiator
HBA Services
403.281.8510
Appendix A
Market Condition Lump Sum Payment
Employer Schedule for October 2008 Payment
Employer |
Date of MCLS Payment |
Chinook Health |
October 24, 2008 |
Palliser Health Region |
November 10, 2008 |
Calgary Health Region |
October 31, 2008 |
David Thompson Health Region |
October 25, 2008 |
East Central Health |
November 10, 2008 |
Capital Health |
October 31, 2008 |
Aspen Regional Health |
October 29, 2008 |
Peace Country Health |
October 24, 2008 |
Northern Lights Health Region |
October 16, 2008 |
St. Michael's Health Centre, Lethbridge |
October 25, 2008 |
Mineral Springs Hospital, Banff |
October 24, 2008 |
Our Lady of the Rosary |
November 10, 2008 |
The Bethany Group |
November 10, 2008 |
Killam General Hospital |
November 10, 2008 |
Lamont Health Centre |
October 31, 2008 |
St. Mary's Hospital, Camrose |
November 10, 2008 |
Dr. Cooke Extended Care Centre |
October 24, 2008 |
St. Joseph's Gen Hosp, Vegreville |
November 10, 2008 |
Caritas Health Group |
October 23, 2008 |
Bonnyville Health Centre |
October 29, 2008 |
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