Seasonal Leave with Income Averaging
What is it?
You may elect to take leave without pay to pursue personal projects or initiatives that are of interest to you.
As part of this option, your reduction in pay will be averaged over a period of time to ensure that you continue to receive some income while you are on leave.
For how long?
You may take between twenty (20) and sixty (60) working days as part of this option.
When can I take the time off?
The leave must be taken in one or two blocks of time within the following twelve (12) month period, subject to the business needs of your function/department.
Can I afford to take Seasonal Leave with Income Averaging?
Only you can determine if you can afford to take this option. The following example may assist you in determining the potential impact on your gross salary per pay period.
Catherine, who earns $41,500 annually, has decided to take 22 days of leave without pay (LWOP) under the Seasonal Leave with Income Averaging option. She has estimated that her gross reduction per pay will be $134.08 based upon the following calculations.
| Step 1: | 22 (# of LWOP days) | ÷ | 260 (# of working days per year) | = | 8.4% (Reduction on annual salary) |
| Step 2: | $41,500.00 (Annual salary) | x | 8.4% (Reduction annual salary) | = | $3,486.00 (Total gross reduction on annual salary) |
| Step 3: | $3,486.00 (Total gross reduction) | ÷ | 26 (# of pay periods) | = | $134.08 (Total gross reduction per pay period) |
How will this affect my pay?
Your salary will be reduced by the corresponding amount of your leave, and your remaining salary will be averaged out over an entire one-year period. This allows you to receive a pay cheque while you are on leave.
Your one-year income averaging period must begin sometime in the current fiscal year.
Will my payroll deductions change?
Throughout the one-year income averaging period, all mandatory payroll deductions and contributions to optional plans will continue as usual.
Return to Work
At the end of your leave, you will return to work in your position.
What about my benefit coverage? |
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|---|---|
| Pension | No change. Contributions: continue based on 100% salary rate. |
| Basic Life Insurance Plan (BLIP) | No change. Coverage and Premiums: continue based on 100% salary rate. |
| Long Term Disability Insurance (LTD) or Disability Insurance (DI) | No change. Coverage and Premiums: continue based on 100% salary rate. |
| Life and Accident Insurance (LAIP) (for Management/Exempt employees only) | No change. Coverage and Premiums: continue based on 100% salary rate. |
| Extended Health Care Plan (EHCP) | No change. Coverage and Premiums: continue. |
| Vision/Hearing & Dental Care | No change. Coverage: continues. |
| Provincial Health Care (BC and Alberta only) | No change. Coverage and Premiums: continue. |
| Vacation and Sick Leave | Accumulates during leave, cannot be used during leave. |
How are the premiums paid?Deductions from your pay cheques continue under the Seasonal Leave with Income Averaging option. You must already be a member of the above benefit plans in order to have coverage under this program. This chart applies only to the Work Options Program. |
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Additional Information
- The income averaging will begin the month following receipt by your Pay office of the approved application.
- Should you request maternity, parental leave, adoption or child care leave during the period of your leave, the Seasonal Leave with Income Averaging option will be suspended for the period of such leave and reinstated for completion upon the end of your leave.
Such a request may result in the rescheduling of the periods of leave to reflect operational requirements and relevant circumstances.
- During the approved leave, you may accept employment outside the Corporation provided such employment:
- is not with any third party, subsidiary or affiliated company; and,
- meets CPC Conflict of Interest guidelines or of any subsidiary or affiliated company. Such outside employment must not be with a competitor.
Questions and Answers
Can I take my vacation and my leave under the Seasonal Leave with Income Averaging option at the same time?
Yes, you may take your vacation leave first and your leave immediately afterwards, based on operational requirements.
Do I have to specify the start and end date of my leave period at the time I apply?
Yes, the Application Form requests the projected dates for the leave.
What happens if I have to change the start date of my leave?
Your leave start date can be rescheduled. It is important to remember, however, that approval of your rescheduled leave will be subject to the operational requirements of your function/department.
Do I get credit for a statutory holiday if it falls during my leave?
Yes. The leave would be extended by an equivalent amount of time.
The Corporation says that I will return to my position after my leave of absence. Does this assure me that my job is guaranteed upon my return?
If the duration of the leave is less than one year you will return to your position. However, you should be aware that during your absence, reorganization or downsizing activities may have occurred. Should your position be affected by such activities, your situation will be dealt with in accordance with the then current policy of the Corporation. Please note that this kind of situation may also happen while you’re at work; being on leave does not influence whether such activities will affect your position.
In the event that I take maternity leave, will my benefits be affected if I participate in the Seasonal Leave with Income Averaging option?
No, there will not be any impact on your maternity leave benefits. Your benefits will be calculated on 100% of your regular salary.