What it is
You agree to be paid less than your full salary for up to six school years. The Board holds back the difference, invests it, and pays it to you during a year off. It is your own money, deferred — not a grant and not a loan. The plan is set up under Article G.37 of the Collective Agreement, and the detail lives in Schedule A, attached at the bottom of this page.
How it works
- You apply by 31 March of the year before your deferrals start, using the Memorandum of Agreement (Schedule B) sent to the Superintendent of Schools.
- The Board decides by 15 May. Approval rests with the Board alone; if they say no, they must tell you why.
- You defer part of your salary — a percentage you choose, up to a third of your pay in any one year, for up to six school years. The Board holds the money and invests it.
- You take your year off, and the deferred money is paid back to you in instalments during the leave, no more often than monthly.
- You return to teaching at the end of the leave, to a position assigned under the agreement in force at the time.
The numbers and dates
| Apply by | 31 March of the year preceding the school year your deferrals begin |
| Decision by | 15 May, or another date agreed between the Board and the Union |
| Most you can defer | 33⅓% of your current compensation in any one year |
| How long you can defer | Up to six school years |
| Length of the leave | Twelve months, or not less than six months where the plan permits |
| Latest start of leave | No later than six years after your deferrals began |
| Interest | Paid to you each 31 December, into your account at the institution the Committee has chosen. Any interest still owing is paid when the leave ends. |
| Annual statement | From the Secretary-Treasurer by 31 July each year, showing what is being held for you and the interest earned |
| Administration costs | Borne by the Board |
If your plans change
| Postponing the leave | You may put it off for one year with the Committee's consent, asked for at least six months before the leave was due to start. |
| The Board postponing it | If no suitable replacement can be found, the Board may defer your leave by one school year. You can then stay in the plan or withdraw and be paid out in a lump sum within sixty days. |
| Pausing deferrals | You can suspend participation from the following 1 September. Money already held stays held and keeps earning interest until you take the leave or withdraw. You can rejoin the same way. |
| Withdrawing | With the Committee's consent, any time before 31 May in the year the leave was to be taken. You are paid out within sixty days. |
| Leaving the district | If you stop working for the Board you must withdraw, and are paid out within sixty days. |
| Death | The amount held is paid to the estate within thirty days of the Board being notified, subject to the usual clearances. |
Benefits and seniority
| Fringe benefits | As set out in the agreement in force at the time. Where you have to pay the cost of a benefit during the leave, the Board can pay it for you on request and deduct it from what it pays you. |
| Sick leave credits | As set out in the Collective Agreement |
| Pension | The Board makes the superannuation deductions required under the Pension (Teachers) Act |
| Seniority | Governed by a separate agreement between the Board and the Union |
The documents
Schedule A — the plan itself
The full policy: definitions, how application and approval work, how the money is held and paid, withdrawal, benefits and how the plan can be amended. This is the authority — everything above is a summary of it.
Worth knowing before you sign.
The plan is registered as a “prescribed plan or arrangement” under the
Income Tax Act, which is what lets the deferred salary be taxed when you
receive it rather than when it is earned. That status depends on the six-year
rule being kept, so the dates are not flexible in the way an ordinary leave is.
Deferring a third of your pay for several years is a significant financial
decision, and the plan document is written in legal language for a reason —
read Schedule A in full, and talk to the President before you commit.
Questions
| Contact | For |
|---|---|
| BVTU President lp54@bctf.ca |
Whether the plan is the right fit for you, and anything about how the Collective Agreement applies |
| SD54 Superintendent's office 250 877-6820 |
Where to send Schedule B, and the status of an application |
| SD54 Secretary-Treasurer 250 877-6820 |
Your annual statement, the amount held, and interest |