Leaves of absence
Leaves of absence – in terms of their treatment under the
pension plan – generally fall into one two different categories:
Maternity or parental leave
Since January 1, 1999, you have had the option to elect to make your
required contributions during a current period of maternity or parental leave
and, thereby, earn pension credits during that leave. If you elect to do that,
your employer will pay their share of contributions, unless a Collective Bargaining
Agreement or an employment contract establishes another way that the total
required contributions will be shared between you and your employer. In that
case, the terms of the agreement or contract, as applicable, will prevail.
Note: It is very important that you
consider carefully whether you will choose to contribute while you are on your
maternity or parental leave. Keep in mind that if you do not and then
decide later that you want to purchase that leave period through the past
service purchase program, you may do so; however, but only under the following
conditions:
-
you must be an active employee contributing to the Plan at the time you make
the purchase; and,
-
you must pay 100% of the actuarial cost of the service being purchased – your
employer does not share in the cost of this purchase.
Before making your decision you should ask – Is paying my
share of total current contributions now, financially better for me
than paying the entire actuarial cost later on? NSAHO Pension Plan
staff is not permitted to give you financial advice. Therefore, you may want to
get the advice of a financial planner who can assist you in answering that
question.
Once you make your decision, please contact your employer
and complete the option form that is required to document your decision – before
starting your maternity or parental leave.
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All other types of approved leaves of
absence
If you are on an approved leave with pay:
-
both you and your employer will continue to contribute to the Plan as if you
were at work;
-
your continuous service
will not be interrupted by the leave; and
-
your credited service during the leave
period will be based on the percentage of the leave period for which you and
your employer made required contributions.
If you are on an approved leave without pay, you will have
two options to consider at the start of your leave. You can:
-
Option 1 – choose to suspend your contributions until you return to work. (Tell
me more)
-
Option 2 – contribute during the leave period. (Tell
me more)
Once you decide on the option you want, please contact your
employer and complete the option form that is required to document your
decision – before commencing your leave.
Note: For Plan purposes, the duration of
an approved leave of absence without pay cannot be longer than two years.
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