Policy 53 - Retirement Allowances | Administration and Governance

Approved Executive Committee of the Board of Governors X2007.3

RETIREMENT ALLOWANCES

PRINCIPLE

1. This policy defines the eligibility requirements and payment conditions governing support staff retirement allowances.

SCOPE OF POLICY

2. This policy applies to all non‑unionized support staff members holding a regular position at the time they retire. Other support staff members are governed either by their employment contract or by their collective agreement.

ELIGIBILITY

3. Clinicians hired in “geographic full‑time positions” are not eligible for retirement allowances.

4. Term employees (including those participating in the pension plan) are not eligible for retirement allowances.

5. Support staff members paid through research grants do not automatically receive a retirement allowance. They may be offered an allowance if the grant conditions permit and if the budget can cover the allowance amount.

6. Support staff members who are on long‑term disability leave at the time they retire are not eligible for retirement allowances.

7. Support staff members who are on unpaid leave at the time they retire are not eligible for retirement allowances.

DEFINITIONS

8. a) Standard salary of the position

The standard salary for the salary class to which the retiring employee's position belongs, based on the pay scale in effect as of May 1, 2003 (see Appendix A of this policy).

b) Multiplication factor

Figure equaling .004 for staff under 60 years old or not having reached “factor 90”
Figure equaling .006 for staff 60 and over or having reached “factor 90” between age 55 and 60

c) Factor 90

When adding the employee's age (expressed in years, months and days) and his or her years of contribution in the pension plan (expressed in years, months and days) gives a total of at least 90.

d) Number of years of service at the University

Total number of years of active service at the University of Ottawa (expressed in years, months and days). The total excludes pension‑credit years from other employers, years spent on unpaid leave and years of service previous to continuous service at the University.

e) Number of years of service remaining before normal retirement age

Number of years of service the employee has left before reaching age 65, that is, normal retirement age (expressed in years and months). This figure always equals 5 (and no more) for staff between the ages of 55 and 60; it then goes down progressively between the ages of 60 and 65, finally dropping to zero at age 65.

ALLOWANCE FORMULA

9. Eligible employees retiring between the ages of 55 and 65 receive a retirement allowance whose amount is determined according to the following formula:

[Standard salary of the position] x [multiplication factor] x [number of years of service at the University] x [number of years of service remaining before normal retirement age]

PROCESS

10. In compliance with Policy 9a), staff members who take one or more unpaid leaves while employed at the University have their number of years of service adjusted accordingly.

11. Retirement allowances are paid through faculty and service budgets.

12. According to the Income Tax Act, a portion of the allowance may be tax‑exempt.

13. To receive their retirement allowance, employees in salary classes I through 9 must give at least three months' notice of their departure, while employees in classes 10 through 17 must give at least six months' notice. The notice is irrevocable. That said, all employees are encouraged to provide the longest possible notice, to help their faculty or service with both financial and succession planning.

14. Retirement allowances are paid within one month of the employee's departure.

INTERPRETATION AND APPLICATION

15. The Director of the Human Resources Service is responsible for interpreting this policy. Faculty and service authorities are responsible for its application, together with the Director of Human Resources.

EXCEPTION

16. Any exceptions to this policy require written approval from the Administrative Committee.

Published January 16, 2007

(Human Resources Service)

APPENDIX A

SALARY STRUCTURE 2003-2004

35 HOURS/WEEK

Support Staff

GRADE	PTS	%	MINIMUM $	STANDARD $	MAXIMUM $	PTR 2%
1	92-108	90%	22,746	25,273	27,800	505
2	109-127	89%	23,948	26,908	29,598	538
3	128-147	88%	25,196	28,631	31,494	573
4	148-177	86%	26,311	30,595	33,654	612
5	178-209	85%	28,373	33,380	36,718	668
6	210-244	84%	30,605	36,435	40,078	729
7	245-286	83%	33,073	39,847	43,832	797
8	287-335	81%	35,552	43,891	48,280	878
9	336-399	80%	39,211	49,013	53,914	980
10	400-459	80%	43,815	54,768	60,245	1,095
11	460-540	80%	49,253	61,566	67,723	1,231
12	541-634	80%	55,444	69,305	76,235	1,386
13	635-745	80%	62,407	78,009	85,810	1,560
14	746-875	80%	69,679	87,099	95,809	1,742
15	876-1025	80%	76,989	96,236	105 859	1 925
16	1026-1200	80%	84,126	105,157	115 673	2 103
17	1201-1405	80%	90,023	112,528	123 781	2 251

APPENDIX A

SALARY STRUCTURE 2003-2004

36.25 HOURS/WEEK

Support Staff

GRADE	PTS	%	MINIMUM $	STANDARD $	MAXIMUM $	PTR 2%
1	92-108	90%	23 558	26 176	28 793	524
2	109-127	89%	24 803	27 869	30 655	557
3	128-147	88%	26 095	29 654	32 619	593
4	148-177	86%	27 251	31 687	34 856	634
5	178-209	85%	29 386	34 572	38 029	691
6	210-244	84%	31 698	37 736	41 509	755
7	245-286	83%	34 255	41 271	45 398	825
8	287-335	81%	36 822	45 459	50 005	909
9	336-399	80%	40 611	50 764	55 840	1 015
10	400-459	80%	45 380	56 724	62 397	1 134
11	460-540	80%	51 012	63 765	70 141	1 275
12	541-634	80%	57 424	71 780	78 958	1 436
13	635-745	80%	64 636	80 795	88 875	1 616
14	746-875	80%	72 168	90 210	99 231	1 804
15	876-1025	80%	79 738	99 673	109 640	1 993
16	1026-1200	80%	87 130	108 913	119 804	2 167
17	1201-1405	80%	93 238	116 547	128 202	2 331

APPENDIX A

SALARY STRUCTURE 2003-2004

37.5 HOURS/WEEK

Support Staff

GRADE	PTS	%	MINIMUM $	STANDARD $	MAXIMUM $	PTR 2%
1	92-108	90%	24 370	27 078	29 786	542
2	109-127	89%	25 658	28 830	31 713	577
3	128-147	88%	26 995	30 676	33 744	614
4	148-177	86%	28 191	32 780	36 058	656
5	178-209	85%	30 399	35 764	39 340	715
6	210-244	84%	32 791	39 037	42 941	781
7	245-286	83%	35 436	42 694	46 963	854
8	287-335	81%	38 091	47 026	51 729	941
9	336-399	80%	42 011	52 514	57 766	1 050
10	400-459	80%	46 944	58 680	64 548	1 174
11	460-540	80%	52 771	65 964	72 560	1 319
12	541-634	80%	59 404	74 255	81 681	1 485
13	635-745	80%	66 865	83 581	91 939	1 672
14	746-875	80%	74 656	93 320	102 652	1 866
15	876-1025	80%	82 488	103 110	113 421	2 062
16	1026-1200	80%	90 135	112 669	123 936	2 253
17	1201-1405	80%	96 453	120 566	132 622	2 411

APPENDIX A

SALARY STRUCTURE 2003-2004

40 HOURS/WEEK

Support Staff

GRADE	PTS	%	MINIMUM $	STANDARD $	MAXIMUM $	PTR 2%
1	92-108	90%	25 995	28 884	31 772	578
2	109-127	89%	27 369	30 752	33 827	615
3	128-147	88%	28 795	32 721	35 994	654
4	148-177	86%	30 070	34 965	38 462	699
5	178-209	85%	32 426	38 148	41 963	763
6	210-244	84%	34 977	41 640	45 804	833
7	245-286	83%	37 798	45 540	50 094	911
8	287-335	81%	40 631	50 161	55 178	1 003
9	336-399	80%	44 812	56 015	61 617	1 120
10	400-459	80%	50 074	62 592	68 852	1 252
11	460-540	80%	56 289	70 361	77 397	1 407
12	541-634	80%	63 364	79 205	87 126	1 584
13	635-745	80%	71 323	89 153	98 068	1 783
14	746-875	80%	79 633	99 542	109 496	1 991
15	876-1025	80%	87 987	109 984	120 982	2 200
16	1026-1200	80%	96 144	120 180	132 198	2 404
17	1201-1405	80%	102 883	128 604	141 464	2 572