Leave with Income Averaging, Pre-Retirement Transition Leave Allowed

Leave with Income Averaging and Pre-retirement Transition Leave
Further to a settlement mediated by the Public Service Staff Relations Board, our complaint of Treasury Board's decision to withhold from the Association's membership entitlement to Leave with Income Averaging (LWIA) and Pre-retirement Transition Leave (PRTL) was withdrawn.

Effective December 13, 1999, members have access to the above mentioned forms of leave.

LWIA is an arrangement that enables indeterminate employees who are not in surplus status at the start of the arrangement to reduce the number of weeks worked in a specific 12-month period by taking leave without pay for a period of between 5 weeks and 3 months. Although pay for participating employees is reduced and averaged out over the year to reflect the reduced time at work, pension and benefit coverages, as well as premiums or contributions, continue at pre-arrangement levels. Under this policy, employees are responsible for their share of premiums or contributions because pension and benefits coverage will continue at pre-arrangement levels. Changes to approved leave arrangements may be made only in rare and unforeseen circumstances, and must occur within the originally approved 12-month income averaging period. Cancellation of approved leave arrangements will be approved only in exceptional or unforeseen circumstances.

PRTL enables employees who are within two years of retirement to reduce the length of their work week by up to 40 per cent. Pay for participating employees is adjusted to reflect the shorter work week, but pension and benefits coverages, as well as premiums or contributions, continue at pre-arrangement levels. Employees may take PRTL for up to two years, but must agree to resign at the end of the leave period. Under this policy, employees are responsible for their share of premiums or contributions because pension and benefits coverage will continue at pre-arrangement levels. Pre-retirement transition leave is subject to managerial approval and discretion, based on operational feasibility. To be eligible for this type of leave, employees must be indeterminate; employees must not be surplus at the start of the leave arrangement; employees must be eligible for an unreduced pension at the start of the leave arrangement, or be within two years of becoming eligible for an unreduced pension (i.e. an employee who is 53 years of age with at least 28 years of pensionable service, or one who is 58 years old with at least 2 years of pensionable service at the time of retirement). Changes to approved leave arrangements may be made only in rare and unforeseen circumstances. Cancellation of approved leave arrangements will be approved only in exceptional or unforeseen circumstances.