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5. Contributions

Page

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

OverviewIntroduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

How to Determine Pensionable SalaryIntroduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Pensionable Salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Non-pensionable Salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Pensionable Salary Cap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

CPP IntegrationIntroduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7CPP Exempt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Mandatory vs. Voluntary Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Reporting a CPP Change through PBR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

How to Calculate Member ContributionsContribution Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Full-time Member Working for More Than One Employer . . . . . . . . . . . . . . . . . . . . . 9Occasional Teacher Receiving Payments Directly from WSIB. . . . . . . . . . . . . . . . . . . 9Re-employed Pensioner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Matching Member ContributionsIntroduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Matched by the Ministry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Matched by the Employer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Due Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Interest Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

How to RemitDue Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13National Direct Deposit Service (NDDS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Supporting Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Interest Rates for Late Member Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

January 2016 5•1 Contributions

5. Contributions

Page

Discrepancy ProcessIntroduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Manage ECDs Online . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16What You Will Receive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16How to Pay Outstanding Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Due Date and Interest Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Settling Member Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Sample – Statement of Overpayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Sample – Invoice (page 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Sample – Invoice (page 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Description of Statement and InvoiceReference List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Reason CodesIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Reference List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Retirement Compensation ArrangementBackground. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26RCA and RPP Contributions Separated by TPP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26



Once you have determined that an employee is eligible to be a member of our plan,you must deduct contributions from their pensionable salary and send them to us on amonthly basis.

This section provides you with detailed instructions on when and how to remit contri-butions to us. It covers the following areas:

• Pensionable vs. non-pensionable salary – we’ve included a checklist of commoncompensation elements – this will help you determine when to deduct contribu-tions on earnings and when to exclude earnings from pensionable salary.

• CPP integration – the teachers’ pension plan is integrated with the CanadaPension Plan (CPP). We tell you how this impacts our contribution formula.

• Calculating and remitting – we provide detailed instructions on how to calculateand send us contributions.

• Employer contributions – members’ contributions are matched either by the gov-ernment or their employer. We tell you when these matching contributions are dueand how interest is calculated for late payments.

• Discrepancy process – we send you contribution discrepancy invoices and/orstatements when underpayments and/or overpayments occur as a result of changesmade to members’ service records for a reconciled year. We guide you through thecontribution discrepancy process and describe how to manage your ECDs online.

• Retirement Compensation Arrangement (RCA) – the RCA is a trust fund createdby the pension board for contributions in excess of limits set by the Income TaxAct. Contributions are capped at a maximum annual rate of pay of six times theYear’s Maximum Pensionable Earnings (YIMPE). This limit applies to pension ben-efits provided under the teachers’ pension plan and RCA combined.

Introduction

Contributions

Overview


Generally, if members receive payment for employment in education, their salary isconsidered pensionable and contributions are required.

Pensionable salary is narrowly defined as the regular salary received in a schoolyear for employment in education. The following payments are also considered pensionable:

� salary members would have received had they not participated in a deferredsalary leave plan (i.e., X/Y plan)

� salary earned during a secondment arrangement, excluding any compensationnot eligible under our Plan

� salary relating to disability benefits which at least maintain the member’s pre-LTIP salary (see Section 11, Disability, for more details)

� payments for loss of earnings as a result of a Workplace Safety and InsuranceBoard claim, regardless of who pays the benefit

� retroactive payments for employment in education received after a school year orperiod to which it is applicable (includes payments made for retroactive contractsettlements)

� payments to contract employees for vacation when reported with service credit

� vacation payments for occasional teachers (usually included in their per diem orhourly rate)

� home instruction and marking allowance where employed by a school board andreported with service credit

� board and lodging when approved by Teachers’

� sabbatical leave, at the rate the member is paid, where a member works in analternative capacity (i.e., research)

� salary earned during a paid suspension as long as the payment is not related toretirement or termination of employment

� salary members would have earned had they not taken a mandatory unpaid dayor a short absence

Introduction

Contributions

How to Determine Pensionable Salary

Pensionable Salary

Contact us if you have any questionsconcerning:

• payment scenarionot outlined in thissection, or

• pensionable salaryprior to 1990.

You should not remit contributions for any portion of member’s earnings considerednon-pensionable. Non-pensionable earnings include:

� perquisites related to employment (e.g., car allowance, health club membership)

� payments to reimburse the member for expenses incurred during employment

� payments related to employment benefits

� lump sum payments for accumulated sick leave

� payments, whether made in a lump sum or ongoing, related to unused, accumu-lated vacation pay

� payments for Employment Insurance Supplemental Unemployment Benefit(SUB) plan

� payments related to retirement or termination of employment beyond statutoryrequirements (e.g., early retirement incentive plans, retirement gratuities, severance)

� reimbursements for LTIP premiums

� payments made after member’s death date not related to service

� Employment Insurance rebate reported with salary

� bonus for completing a course

� “service” gratuities based on hire date

� payments in lieu of medical or other benefits (including any under collectiveagreements, personal contracts, customized benefits packages where employeesopt out of certain benefits and convert the credit into cash, etc.)

� non-taxable board and lodging

� discretionary merit allowances (i.e., honourariums, performance-based incentive payments)

� meeting allowance (if excess service or to compensate for meeting expenses)


Non-pensionableSalary

Contributions


Contact us if youhave any questionsconcerning non-pensionable salaryprior to 1990.

Effective January 1, 2007, members’ pension benefits and contributions will becapped at a maximum annual rate of pay of six times the YMPE.

The limit, introduced by the OTF and the Ontario government, applies to pensionbenefits provided under Teachers’ registered pension plan and the retirement com-pensation arrangement (RCA) combined.

Based on the 2016 YMPE of $54,900, an employee will reach the pensionable salarylimit in 2016 if he or she earns salary at an annual rate of $329,400 or more duringthe year. As the YMPE increases, the maximum annual rate will also increase.

Reporting procedureIf you have an employee earning more than six times the YMPE on an annual basis,provide us with a contract rate of six times the YMPE (e.g., $329,400 for 2016).

To ensure members receive the maximum pensionable salary, we have determinedthat it would be more appropriate to cap the salary on a per diem basis for eachreporting period (January to August and September to December).

Therefore, we will adjust the last pay in each period to make the per diem correction.While this adjustment may create a contribution difference, please do not make anyadditional adjustments to correct the discrepancy.

For employees ceasing employment mid-year, we will also make the necessaryadjustment to the pensionable salary and required contributions, if their earningsexceed the maximum allowable on a school-year basis.


Pensionable Salary Cap

Contributions


The maximum an-nual pensionablesalary for 2016 is$329,400.

The Teachers’ Pension Plan (TPP) is integrated with the Canada Pension Plan (CPP).As a result, most members’ contributions to the TPP are CPP liable, meaning theircontributions are partially offset by the amount they contribute to CPP. When mem-bers turn 65, or begin receiving a CPP disability pension, their teachers’ pension isreduced to offset the pension they will receive from CPP.

Some members are not required to contribute to CPP. They include those who:• belong to a religious order and have taken a vow of poverty,

• have provided their employer and us with a CPP Notice of Entitlement,

• are receiving LTIP and/or a CPP disability pension,

• have Native Indian status and earn income on a reserve,

• were employed in a job-sharing position between September 1, 1982 to August 31, 1989, inclusive, or

• are 70 or older (CPP liable up to the end of the month member turns 70).

If members are not required to contribute to the CPP, their contribution rate for all oftheir pensionable salary is the “Over YMPE” rate (see next page).

If members are under age 65, working and receiving a CPP retirement pension, they mustcontribute to CPP (exceptions listed above). If they are between ages 65 and 70, workingand receiving a CPP retirement pension, additional CPP contributions are voluntary.

Please ensure you report the correct CPP liability status based on the information youhave on file. For regular employment, mandatory and voluntary CPP contributionperiods:• report as CPP liable; and

• use the integrated contribution rate to calculate contributions based on the payperiod information on which they are deducted and reported.

While additional CPP contributions are voluntary for employees over the age of 65,contributions to Teachers’ remain mandatory.

Members must provide you with a completed CPT30 form to elect to stop contribut-ing to CPP (form available from the Canada Revenue Agency). We do not require acopy of this form.

Please inform us if a member’s CPP status changes. The effective date of the CPPstatus change is the first pay date affected by the change. For example, if the effectivedate of the CPP status change is October 1, 2014, change the status to non-liable thefirst paydate that occurs on or after October 1.

Introduction

CPP Exempt

Contributions

CPP Integration

Mandatory vs.VoluntaryContributions

Important �

For questions abouttheir CPP pension,members shouldcontact their localoffice of HumanResourcesDevelopmentCanada.

Reporting a CPPChange through PBR



ContributionFormula

Contributions

How to Calculate Member Contributions

The contribution rates are based on the Year’s Maximum Pensionable Earnings(YMPE) as determined by the Canada Revenue Agency (CRA). Contributions to theplan are based on the following two-step formula:

Beginning January 1, 2012, contribution increases were phased in over three years:

Below is a chart summarizing contribution rates from 2005 to 2011. The third columnis up to and including the YMPE.

* Member contributions in 2008 were subsidized by the OTF with a credit reservefrom the 1998-2001 pension negotiations.

Once the YMPE is confirmed by CRA, we send you a pension bulletin informing youof the new contribution rate for the following calendar year.

A = 11.5% x pensionable salary up to and including the YMPE for the year

B = 13.1% x pensionable salary above the YMPE for the year

A + B = member contributions

Contribution ratessince 2005 �

Current contributionformula �

Year YMPE Up to YMPE Over YMPE

2005 $41,100 7.3% 8.9%

2006 $42,100 7.3% 8.9%

2007 $43,700 9.3% 10.9%

2008* $44,900 10.4% 12.0%

2009 $46,300 10.4% 12.0%

2010 $47,200 10.4% 12.0%

2011 $48,300 10.4% 12.0%

Year Up to YMPE Over YMPE

2012 10.8% 12.4%

2013 11.15% 12.75%

2014 11.5% 13.1%


ContributionFormula, cont’d.

Contributions


This chart shows historical contribution rates from 1969 to 1992, before the TPPmoved to a blended two-step formula.

If members are employed on a full-time basis to work a full-time school year for anemployer, they are not required to make contributions on any additional employmentduring the same school year.

If you receive verification that a member is employed on a full-time basis for a full-time school year by another employer, do not deduct contributions from the salarypaid to the member unless the member directs you to do so.

Effective September 1, 2006, employees who are injured and receiving payments direct-ly from the Workplace Safety and Insurance Board (WSIB) contribute to the plan aslong as they continue to receive payments for loss of earnings (LOE) from the WSIB.

For employees with irregular earnings, such as occasional teachers, you are required tocollect contributions and report ongoing earnings and service credit during the claimperiod. Report the contribution as regular employment with salary and credit based onwhat the employee would have earned had they not been absent due to injury.

Employers must follow the WSIB short-term average earnings policy when calculat-ing the average lost earnings for employees with irregular earnings. This policy isused to establish the lost earnings for the first 12 weeks of a claim.

The injury date is important for payroll to establish the average earnings before theincident. Average earnings should include paid vacation days.

To calculate days lost, employers must obtain the average earnings for the four weeksprior to the injury. Count the weeks with available work days (excluding March andChristmas breaks) and then use total available days to establish the full time available.

YEARS Below YBE YBE to YMPE Over YMPE

69/01/01 – 75/08/31 6.0% 4.2% 6.0%

75/09/01 – 84/08/31 7.0% 5.2% 7.0%

84/09/01 – 89/12/31 7.9% 6.1% 7.9%

90/01/01 – 91/12/31 8.9% 7.1% 8.9%

Historical contribu-tion rates �

Full-time MemberWorking for MoreThan One Employer

Important �

Occasional TeacherReceiving PaymentsDirectly from WSIB


Occasional TeacherReceiving PaymentsDirectly from WSIB,cont’d.

Contributions


Summary of Reporting Requirements• Determine the average days lost per week

• Obtain rate of pay at the time of the injury (including vacation pay)

• Obtain the length of time for the claim

• Calculate available days for the claim period

• Average days percentage x the total number of days in the claim period = days lost

• Days lost x daily rate = pensionable salary for claim (do not use the claim amount)

• Pensionable salary for the claim period x the contribution rate for the work period = contributions required

Example – Background• Mariah is injured at work on April 20, 2010

• Her daily rate of pay is $216.10

• She worked three days in the four weeks (18 available work days) before her injury (3/18 days = 17%)

• Mariah’s claim period was 5 weeks (25 days)

Calculations• Service credit – 25 days x 17% = 4.25 days

• Pensionable salary – 4.25 days x $216.10 = $918.43

• Contributions required – $918.43 x 10.4% = $95.52

The above example is a general one. For more complicated and/or unique situations,contact us for assistance.

Re-employed pensioners are responsible for keeping track of the number of days they teach and notifying us if they plan to work after the month in which they exceedthe limit.

You are only required to deduct and remit contributions for those re-employed pen-sioners who advise you that they have notified us to suspend their pension for recal-culation purposes.

See Section 4, Membership Eligibility for a list of the eligibility requirements forpension recalculations, as well as details on the re-employment limit and additionalreporting guidelines.

Re-employedPensioner

Contact us �

Members’ contributions are matched either by the Ministry of Education (theMinistry) or their employer. Generally, school board employees’ contributions arematched by the government and those working at a designated private school or organization have their contributions matched by their employer.

The Ministry matches contributions for members employed in any one of the following ways:

� by a board of education,

� as a teacher in a school operated by the Government of Ontario,

� as a teacher in a Ministry operated by the Government of Ontario,

� as a teacher in a school outside of Ontario under a teacher exchange systemauthorized by the Minister of Education, or

� as a teacher in a school or class operated by the Toronto and RegionConservation Authority.

Employers match contributions for qualified members in all of the following situations:

� employment at a designated private school or designated organization,

� for purchased leaves of absence or breaks in service,

� for long-term income protection (LTIP) benefits and top-up amounts,

� during an “absence” member becomes employed on staff of a faculty of education of an Ontario university on or after January 1, 1990 to a maximum of five years,

� employed part-time or full-time on January 1, 1990 and remains employed part-time or full-time at a faculty of education of an Ontario university, and

� employed part-time or full-time continuously at the Ryerson PolytechnicUniversity or a College of Applied Arts and Technology (CAATs) from September 1, 1984 to January 1, 1990 and continues to be employed part-time orfull-time either at Ryerson or a CAATs.

If your employees fall into any of the categories listed above, you are required tomatch their contributions.


Introduction

Contributions

Matching Member Contributions

Matched by theEmployer

Matched by the Ministry

Ministry of Education Matching contributions from the Ministry of Education are due the first business dayof each calendar year.

The matching calculation includes the following:

• required member contributions made,

• purchases of employer-approved leaves and religious leaves plus interest paid,

• purchases of optional credit plus interest paid,

• changes to required contributions from prior years, and

• additional LTIP contributions (due to freeze on member rates since 2006).

EmployerMatching contributions from employers are due on the last business day of eachmonth in which the member contribution was made/deducted.

The amount must equal the contributions made during the month by or on behalf ofthose members for whom the employer is required to make contributions.

The matching calculation includes the following:

• required member contributions made,

• purchases of leaves of absences or breaks in service,

• contributions for LTIP benefits and top-up amounts, and

• changes to required contributions from prior years.

Interest for late employer matching contributions is based on the following:

• Start Date = date the payment was due

• End Date = day before payment is made

• Rate = Standard Interest + 4%

The chart on page 5-14 shows the standard interest rates since 2006.


Due Dates

Contributions

Matching Member Contributions

Interest Rates

Important to allemployers �

Contributions and all supporting documentation are due by 12:00 p.m. on the lastbusiness day of the month in which the contributions were deducted from the mem-bers’ salaries.

Electronically sending your monthly contributions is the best way to ensure you meetthe payment due date and avoid late payment charges. You can do this by using theRoyal Bank’s National Direct Deposit Service (NDDS).

The NDDS system enables you to transfer funds by telephone. NDDS users can alsosend us the required remittance back-up information through the Teacher InformationManagement (TIM) system.

If you currently do not use NDDS, here’s how you can enroll:

1. Contact your team leader and they will send you a Direct Deposit ServiceEnrollment Form.

2. Complete the form and fax it back to us at (416) 730-3723 or 1-800-361-5289 –please send the fax to the attention of Swire Chin. We’ll fax the completed formto the Royal Bank.

3. If your current account is not with the Royal Bank, notify your bank or financialinstitution of your enrolment with NDDS.

4. The Royal Bank will send you a package to confirm your enrolment and providedetailed instructions on how to use the system. This package will include yourpersonal NDDS location code (i.e. identification number).

If you use pre-encoded deposit slips to make your monthly remittances (also knownas Method 1), you can destroy the remaining slips after you have received your per-sonal NDDS location code and instruction package. You may wish to keep one incase you experience any problems using the system for the first time.

Using NDDSYour package from the Royal Bank will include detailed instructions on how to usethe system. They will provide you with the appropriate number to call based on yourlocation. After you reach Royal Bank NDDS, please follow the series of prompts asspecified on your instruction sheet.

After you have confirmed the deposit amount, you will receive a four-digit confirma-tion number. Please ensure you record this number – you will be asked to enter itwhen sending us back-up information. This will enable us to accurately match thecontributions remitted with the back-up information provided.


Due Date

Contributions

How to Remit

National DirectDeposit Service(NDDS)

Send us informationelectronically �

Important �

To be able to sub-mit your monthlyremittance infor-mation online, youmust be registeredfor TIM.

It is essential that applicable supporting information accompany all payments yousend to us, and that you provide us with this information on the same day you transfer funds.

Please send us the contribution information online by signing into TIM and going to“Accounts” (requires NDDS confirmation). Until all employers transition to TIMusage, we will continue to accept completed Contribution Remittance (0021) formsfaxed to us at 1-800-361-5289 or 416-730-3723.

When submitting a miscellaneous payment, add a comment under AdditionalInformation on the remittance page to explain the payment.

If you need to submit payments separately from your regular month-end remittance,use the “Send an additional remittance” option (Accounts > Remittance). Use thisform only for rare exceptions.

If we don’t receive payment of members’ contributions on the last business day ofthe month, interest is payable based on the following:

• Start Date = the day the payment is due

• End Date = day before payment is made

• Rate = Standard Interest + 4%

The chart below shows the standard interest rates since 2006:

Year Rate

2006 2.48

2007 2.88

2008 3.03

2009 2.89

2010 1.90

2011 1.81

2012 1.75

2013 1.55

2014 1.51

2015 1.45

2016 1.29

Interest is compounded annually each December 31, unless otherwise stated.


SupportingDocumentation

Contributions

How to Remit

Interest Rates forLate MemberContributions

Standard interest ratessince 2006 �

Compounding interest �

Send informationthrough TIM �


Interest Rates for Late MemberContributions,cont’d.

The chart below lists the various reasons why interest may be charged and who isresponsible for paying it.

Contributions

How to Remit

TPA Reason Charged Payable Original Due Interest Interest Rateto to Date Start End Date

Date

ss. 20 late remittance of Employer TPP end of the month payment day before standard(3) member member was paid due date payment is + 4%

contributions made

ss. 20a member Member TPP date of notification payment day before standard (2) undercontributions due date payment is

made

ss. 23 late remittance of Employer TPP regular member payment day before standard (6) LTIP member contributions due due date payment is + 4%

contributions end of the month madefollowing themonth LTIP

payment is made tothe member

ss. 25 payment of Minister TPP first business day June 1st of day before standard(4) Minister’s matching following each two years payment is rate in

contributions January 1st prior to made effect onpayment that due date June 1st

ss. 26 payment of Matching TPP last day of the payment day before standard(3) Employer matching employer month in which due date payment is + 4%

contributions for the member made matching employers contribution

was made

ss. 27 return of TPP Member or n/a date day before standardcontributions made Employer payment payment isin error or not received by returnedpermitted TPP

ss. 28 Section 28 refunds, TPP Member n/a last day of day before standard(3), (5) return of excess and school year it is paid

contributions Employer


Introduction

Contributions

Discrepancy Process

When processing a member transaction, we may need to question and change infor-mation for service occurring in a previously reconciled year (i.e., pensionable salary,CPP liability). When this happens, an employer contribution discrepancy (ECD) iscreated.

When you sign-in to TIM, the homepage displays your total amount due and theoverdue amount that is accruing interest:

• If both amounts are $0, there are currently no outstanding ECD payments for anyof your employees.

• If an amount is shown, select “more” to view a detailed summary of your outstanding payments. You can immediately identify your total amount due andany overdue invoices that are accruing interest.

Summary pageThe ECD summary page contains information similar to the details appearing oninvoices. It breaks down the outstanding amounts by employee – select the employeename for additional details.

If you plan to pay all or a portion of your outstanding amount with your next remit-tance, enter the applicable amount(s). This total will appear as an ECD amount onyour monthly remittance form.

If contribution discrepancies are created in a reconciled year, you may receive one or bothof the following:

• Refund cheque and statement – overpayments

• Invoice – underpaid contributions or outstanding balances from previous invoices

The invoices and statements clearly list all members with existing discrepancies andidentify each of the outstanding balances.

2008 serviceWhen we generate statements or invoices for 2008 reconciled service, our system isunable to factor in the employer only contribution rate increase that occurred in 2008.The contributions are being calculated at 9.6% (up to the YMPE) and 11.2% (abovethe YMPE) for both the member and employer. The employer portion should be cal-culated at 10.4% and 12.0% respectively (difference of 0.8%).

Manage ECDs Online

What You WillReceive

TIM tip �


If changes are made to 2008 reconciled service and it results in an ECD, we will sendyou two items. One will be the regular ECD statement or invoice (list of all memberswith existing discrepancies). The second item will be a separate statement or invoicethat specifically identifies the 0.8% difference for 2008 reconciled service. Note thatthese invoices are not available in TIM.

We will send two copies of each invoice – one copy for your reference and if youdon’t send payment online, one to be returned with your payment.

Please refer to pages 5-19 to 5-23 for samples of the regular ECD statement andinvoice and itemized description of each item appearing on them.

The best way to pay an outstanding ECD is to include your payment with your regular monthly contribution remittance. After you sign-in, all you have to do isselect “Remittance” under “Quick Links” on the homepage (you can also go toAccounts > Remittance).

If you plan to pay all or a portion of your outstanding amount with your next remit-tance, enter the applicable amount(s). This total will appear as an ECD amount onyour monthly remittance form.

2010 serviceWhen remitting payment for these additional required contributions, enter theamount under “Misc.” and add the comment “payment for 2010 reconciled service”.

Here are a few things to remember if you’re not using TIM to manage your ECDs online:

• Send us a cheque (post-dated to the due date) to clear the balance on the invoice.

• If you’re not paying the entire amount owed, indicate the amount you have remitted for each member listed on the invoice.

• If you normally match contributions, the required amount listed on the invoiceincludes both the members’ and your matching portion.

• If you include payment with your regular monthly remittance, complete the appropriate section (“Prior year contributions” or “Other payments”) when sending us the Contribution Remittance form.

• Include one copy when sending us any outstanding amounts (by fax or mail).

Contributions

Discrepancy Process

What You WillReceive, cont’d.

Non-TIM users �

How to Pay OutstandingBalances


Due Date andInterest Charges

For all payments made in arrears, standard interest plus 4% annum is charged fromthe original due date. The chart below identifies the historical interest rates for under-payment and overpayment of employer contributions.

The amount we bill, or refund, does not always result in an identical transaction withyour employee. This may occur for a number of reasons.

For example, the right amount may have been deducted from the member initially butnot remitted because the discrepancy was never identified. In these situations, theemployer makes up the difference today, or is due a return of contributions with interest.

Please contact members directly to collect a balance owing or reimburse them foroverpayments. If you’re having difficulty settling a member’s account, contact us andwe will help expedite the settlement with the member.

Contributions

Discrepancy Process

Settling MemberAccounts

Years Overpayment Underpayment

November 1, 1966 to 5.06% 5.06%December 31, 1971

January 1, 1972 to 6.09% 6.09%August 31, 1984

September 1, 1984 to Annual Average Bank of Annual Average Bank of December 31, 1989 Canada Rate (B14006) Canada Rate (B14006) + 4%

January 1, 1990 to Standard Rate Standard Rate + 4%present

Important �

Historical interest rates �


Discrepancy Process

Sample – Statement of OverpaymentD

ate: Novem

ber 17, 2005E

mployer #: 12345

AN

YW

HE

RE

BO

AR

D O

NTA

RIO

123 MA

IN S

TR

EE

TP.O

. BO

X 100

MO

NC

TON

ON

A1B

2C3

attn: Payroll D

epartment

OV

ER

PAYM

EN

TS

OverP

ay R

eportedR

ea*S

rv*R

equiredR

emitted

Over

Num

ber S

INN

ame

Date

Cde

Cde

Salary

Contrib

Contrib

Paym

entInterest

Balance

0000321111-222-333

MU

RP

HY, D

ON

1992-09-01503

RE

G1,218.391,218.39

88.94506.60

417.66168.32

Mem

ber Total:1,218.39

88.94506.60

417.66168.32

585.98

222-333-444T

HO

MA

S, JO

Y1992-09-01

401R

EG

26,061.2026,061.20

2,319.455,232.86

2,913.411,174.08

Mem

ber Total:26,061.20

2,319.455,232.86

2,913.411,174.08

4,087.49

Em

ployer Total:3,331.07

1,342.404,673.47

Total overpayment enclosed:

4,673.47

If you have any questions, please call Janet Robinson (416) 730-5091

* Service C

odes

RE

G E

mploym

ent Service

LTP

LTIP

1

23

456

78

910

1112

1314

1516

18

20

17

19

Statem

ent ofO

verpayment

3


Discrepancy Process

Sample – Invoice (page 1)D

ate: Novem

ber 15, 2005E

mployer #: 12345

AN

YW

HE

RE

BO

AR

D O

NTA

RIO

Interest has been123 M

AIN

ST

RE

ET

calculated to: Decem

ber 31, 2005P.0. B

OX

100M

ON

CTO

N O

NA

1B 2C

3

attn: Payroll D

epartment

PAYM

EN

TS

RE

CE

IVE

D

InvoiceP

ayment

Paym

entN

umber

Received

SIN

Nam

eA

mount

00000191997-10-31

123-456-789 S

MIT

H, JO

HN

22,285.26

22,285.26

Total payments received:

22,285.26

PR

IOR

BA

LAN

CE

S

InvoiceInvoice

Am

ountA

mount

Num

berD

ateS

INN

ame

Ow

ingInterest

Balance

Rem

itted

00000371997-05-15

456-789-123B

RO

WN

, TE

RE

SA

1,118.204.42

1,122.620000142

1997-07-15789-123-456

JON

ES

, BO

B183.90

.73184.63

00001421997-07-15

321-456-789B

LAC

K, JIM

535.532.12

537.650000237

1997-09-15321-654-987

JOH

NS

ON

, EILE

EN

884.133.50

887.63

2,721.7610.77

2,732.53

Balance past due:

2,732.53


21

22

24

25

26

2728

2930

31

23

7 5

Invoice


Discrepancy Process

Sample – Invoice (page 2)D

ate: Novem

ber 15, 2005E

mployer #: 12345

AN

YW

HE

RE

BO

AR

D O

NTA

RIO

Interest has been123 M

AIN

ST

RE

ET

calculated to: Decem

ber 31, 2005P.0. B

OX

100M

ON

CTO

N O

NA

1B 2C

4

attn: Payroll D

epartment

CU

RR

EN

TB

ALA

NC

ES

InvoiceR

eported R

ea* S

rv*R

equiredR

emitted

Under

Am

ountN

umber

SIN

N

ame

Date

Cde

Cde

Salary

Contrib

Contrib

Paym

entInterest

Balance

Rem

itted

0000298111-222-333

LEE

, DO

UG

1992-09-01101

RE

G25,302.0025,302.00

2,251.885,102.29

2,850.41CR

1,148.71CR

1995-01-01101

RE

G37,815.48

1995-09-01101

RE

G25,302.0063,117.48

5,059.065,059.06

828.00

1996-01-01101

RE

G37,815.48

1996-09-01101

RE

G25,302.0063,117.48

5,051.065,051.06

464.86

Mem

ber Total:151,536.96 12,362.00

5,102.297,259.71

144.157,403.86

Em

ployer Total:7,259.71

144.157,403.86

Current invoice balance:

7,403.86

Total outstanding:10,136.39


* Service C

odes

RE

G E

mploym

ent Service

LTP

LTIP

32

3334

3637

35

35

5

Invoice


Reference List Date – the date invoice or overpayment was issued.

Employer Number – the number assigned by the Ministry of Education to allorganizations that employ members of the Teachers’ Pension Plan.

Board name and address – the name and address of the school board that is currently reporting, sent to the attention of the payroll department.

Overpayments – this section details changes made which result in amounts owing to the identified members. There will always be a cheque attached if this statement is issued.

Overpayment/Invoice Number – the reference number for all of the transactionslisted on the current overpayment statement or the current invoice. Where priorbalances exist, it will identify the invoice number on which the transaction origi-nally appeared.

SIN – the Social Insurance Number of the member whose service record was adjusted.

Name – the name of the member whose service record was adjusted.

Reported Date – the date identifying the period in which the adjustment was applicable to (i.e. 1993-01-01 would be the January to June reporting period for 1993).

Reason Code – the reason why the member’s service record was adjusted.

Service Code – the employment type affected by the adjustment.

Salary – the salary used to determine the required contributions.

Required Contributions – the amount which the member should have con-tributed based on their adjusted service record. If you are an employer who matches contributions, this amount includes your matching portion.

Remitted Contributions – the amount actually reconciled for the member prior to the adjustment being made.

Overpayment – the amount which was overpaid for the identified member.

Interest – the interest accrued (standard interest rates) to the amount owing from the original reporting period.

Balance – the total amount owing for the identified member.

Member total – summary of member’s transactions on current statement orinvoice.

Employer total – summary of transactions on current statement or invoice.

Total overpayment enclosed – the amount of the cheque included with the statement.

Discrepancy Process

Description of Statement and Invoice

1

2

3

4

5

6

7

8

9

10

11

13

14

15

16

17

18

19

12

Reference List, cont’d.

Contact person – the name of the Employer Information Service Analyst to contact if you have any questions about the statement or invoice.

Interest has been calculated to date – the date to which standard interest rates have been applied to outstanding amounts.

Payments received – this section details payments we’ve received for previousoutstanding amounts.

Payment received – the date we received any payments for prior balances.

Payment amount – allocated amounts previously received for identified members.

Total payments received – payments received for prior invoices/balances.

Prior balances – this section details outstanding amounts for identified members (previously billed).

Invoice date – the date original invoice was issued.

Amount owing – amount outstanding from previous month’s invoice for identified member.

Interest – the interest accrued (standard interest rates plus 4%) to the amount owing from the original invoice due date.

Amount remitted – column for you to complete when returning a partial paymentso we can allocate the correct amounts for each member.

Balance past due – total outstanding balance from prior invoices.

Current balances – this section identifies new adjustments and correspondingamounts owing.

Underpayment – the amount underpaid for the identified member due to the adjustments made to their service record.

Interest – the accrued interest (standard interest rate plus additional 4%) payable on the amount in arrears from the original contribution due date to theday prior to payment being made.

CR – when this appears beside a dollar amount, it indicates an overpayment credit has been applied against the existing underpayment balance for the identified member.

Current invoice balance – total amount owing for the new adjustments.

Total outstanding – the sum of the balance past due and the current invoice balance.

Contributions

Description of Statement and Invoice

20

21

22

23

24

25

26

27

28

29

30

32

33

34

35

36

37

31



Introduction Whenever a member’s record is adjusted, we capture the reason for the change. Thefollowing is a numerical list of possible reason codes you may see on your invoice.

Code Description

101 Missing service – service and salary which was not previously reported was added to a member’s record.

102 Occasional teacher not reported – occasional service which was not previously reported was added to a member’s record.

103 Service type change affecting contributions – member is reported with one type of service and it was changed to another (i.e. regular to LTIP).

104 Double posted – while reviewing data, we discovered the record was posted twice in error.

105 Regular salary adjusted – we received information which required an adjustment to salary that was originally reported incorrectly.

115 Non-pensionable salary deleted – salary which was originally thought to be pensionable was deleted (i.e. lump-sum vacation pay).

116 Delete ineligible service – member doesn’t hold valid qualifications (i.e. not qualified to teach) and is therefore ineligible to be a member of our plan.

122 Delete regular service – service was reported in error or for the wrong period(i.e. non-pensionable or unqualified member).

125 Delete and add to the correct employer or member – service was assigned tothe wrong employer or member.

202 Rehab earnings reported in error – rehab earnings paid while on LTIP were deleted.

204 LTIP salary adjusted – LTIP salary was calculated incorrectly or included COLA increases.

205 Change of LTIP class code – LTIP class was changed from 5 to 6 or vice versa.

206 Pre-LTIP salary adjusted – pre-LTIP salary was incorrectly reported.

207 Adding LTIP – LTIP was approved retroactively or was not previously reported.

208 LTIP deleted – LTIP benefits ended.

209 LTIP adjusted to include true-up amount – adjustment was made to reflect payments on 10-month basis rather than 12-month basis.

Discrepancy Process

Reason Codes

Reference List


Reference List, cont’d.

301 Embedded retro exists – split was required to reallocate retroactive earnings into proper period.

302 Retro added – retroactive payment was not previously reported.

303 Pay equity – pay equity amounts were added or broken down for applicable years.

401 Maternity leave adjustment – previously reported maternity leave was addedor corrected.

501 Deferred salary leave – salary was reported incorrectly for the X/Y plan.

502 Collapsed deferred salary leave – X/Y amounts were added or broken down for applicable years.

503 CPP liable/exempt change – service was changed from liable to exempt or vice versa.

505 Member on pension – service for re-employed pensioners was deleted as they were employed for less than the maximum number of days allowed.

Discrepancy Process

Reason Codes


Background The Income Tax Act (ITA) generally specifies that individuals are eligible to deduct,on an annual basis, a maximum registered pension plan contribution ($18,787 in2016 not including past service contributions). In addition, individuals may generallyreceive a maximum annual pension per year of credited service from a RegisteredPension Plan (RPP).

The teachers’ pension plan is an RPP. For 2010 and beyond, the values for thedefined benefit limit are indexed to the Average Industrial Wage (AIW). The chartbelow shows the values since 2013:

Year Defined Benefit Limit

2013 $2,696.67

2014 $2,770.00

2015 $2,818.89

2016 $2,890.00

The RCA is a trust fund created outside the teachers’ pension plan to hold the contri-butions and pay certain pension benefits which are in excess of the ITA limits. Underthe RCA agreement, the level of contributions to the RPP and the RCA is determinedby the plan’s actuary. Our actuary reviews our contribution level and determines themaximum registered pension plan contributions to be made to the plan.

Effective January 1, 2016, the maximum amount a member can contribute to theteachers’ pension plan is $14,500. This ensures an adequate amount of contributionscontinues to flow into the RCA.

The ITA requires that accounting and financial reporting for the RCA be separateand distinct. We, the plan administrator, have guaranteed CRA that we will complywith legislation and ensure RPP and RCA funds will not be combined.

To ensure contributions remain separated, we have set up a clearing account. Wedirect all employer remittances to this account so we can administer the appropriateallocation of contributions on your behalf.

To facilitate the transfer, we must receive your monthly remittance and all supportingdocumentation by 12:00 p.m. on the last business day of the month. Please see pages5-13 to 5-15 for instructions on how to remit.

Contributions

Retirement Compensation Arrangement (RCA)

Annual maximumfor TPP �

RCA and RPPContributionsSeparated by TPP

Important �

table of contents overview how to determine pensionable ...docs.otpp.com/hb_section5.pdf · please...

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