Reminder: November 30 is the last day employees aged 71 are eligible to contribute to the plan
Do you have employees turning 71 this year? There are a few things to consider.
Under the Income Tax Act and its regulations, an employee must start receiving their pension no later than the end of the year in which they turn 71. This means your 71-year-old employees must start collecting their pension no later than December 1 of the same year. It’s also your responsibility to ensure you don’t collect contributions from these employees after November 30.
Your employees aged 71 can keep working without interruption, but you must terminate their employment for pension purposes. Submit final salary, service and contributions up to November 30 to the plan on or shortly after November 30.
For example: You have an employee born in 1945 who will turn 71 in 2016. You must stop collecting contributions for this employee effective November 30, 2016, and your annual report must not include service, salary or contributions beyond November 30.
We send your employees a pension estimate and retirement application package in the year they turn 71. Please ensure we have their current contact information.
It’s easier to explain to plan members. Under the previous method, a day missed from work affected a member’s service differently, depending on the month. For example, missing a day in December affected a member’s pensionable service more than missing a day in January, even though the member earned the same amount of pensionable salary in each month. Missed pensionable service will now be calculated in a consistent way regardless of the month.
It allows for a seamless transition to modified work schedules. Your school might currently operate on a standard work schedule, but that could change in the future. With the new method, your payroll systems will be set up to handle the change, and calculations will be consistent for plan members who work part time in school districts with varying work schedules.
For teachers teaching on call (TTOC), pensionable service will better reflect time worked. Currently, each school district has a different number of maximum days available to work. What’s more, TTOCs are paid differently in each district, especially for portions of days. Using the new method, your payroll system will better align with how TTOCs are paid and the number of days available to work.
It’s time to calculate pensionable service in a new way and make your employer reporting experience even easier!
phone 250 356-9701 (Victoria) or 1 855 356-9701 (toll-free in BC)
Making a statement—updated financial statement guidelines
To comply with accounting standards, specific information about the pension plan must go into your financial statement notes—employer financial statement guidelines can help. Your accounting methods will determine which one to use based on the pension information you need. Find the guidelines on the Employer logon home page of the secure Employer site under Resources:
Want to host a pension information seminar at your workplace?
Is your staff interested in attending a pension seminar? We can come to you!
These free workplace seminars come with advantages for you and your staff. They are a great way for employees to gain knowledge about their pension and plan for retirement, without needing to leave town. And knowledgeable staff are more engaged and learn about the benefits of being in the plan.
Phone: 250 356-2466 (Victoria) or 1 877 558-5574 (toll-free in BC)
Fax: 250 953-0436
We look forward to working with you!
Highlights from the fall meeting
Highlights from the fall 2015 Employer Advisory Council and Small Employer Forum
In November 2015, the Employer Advisory Council and Small Employer Forum met to network, discuss common experiences and hear more about what the Pension Corporation is working on. Themes included communications, online employer reporting tools, website enhancements and member seminars. Check out the Employer Advisory Council and Small Employer Forum communiqués posted on the secure Employer site for the discussion details. Employers belonging to these groups are listed in the secure Employer site under Employer Consultation.
Interested in joining the council or forum? Your input is valuable! Share your ideas, provide feedback and network–all while having fun.
Employer Advisory Council—May 3, 2016 Small Employer Forum—fall 2016
For details about the council and forum, including how to become a member:
Go to the Employer Consultation portlet on the secure Employer website