RRSP OR TFSA SUPPLEMENT
United Nurses of Alberta’s new Provincial Collective Agreement contains an important provision in which the four employers have agreed to contribute to a supplemental pension plan for employees in the form a contribution to either a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA).
UNA strongly recommends that all members who are regular employees act to take advantage of this provision if they haven’t already done so.
It is a valuable benefit you cannot receive if you don’t take specific action to enroll. So if you are covered by the PCA and you don’t act, you will be going without a 2-per-cent retirement income supplement to your salary to which you are entitled under the contract. That’s like giving up pay that you’re owed!
According to Article 29.05 of the UNA Provincial Collective Agreement:
(a) the employer shall provide a supplemental pension plan in the form of a Registered Retirement Savings Plan (RRSP). Effective April 1, 2018 the Employer shall also provide a Tax-Free Savings Account (TFSA). Employees shall determine the allocation of contributions to either the RRSP or the TFSA. Employees may change their allocation effective April 1st each year.
(b) effective on the Employee’s date of enrollment, a Regular Employee shall have the right to contribute up to 2% of regular earnings into either the RRSP or TFSA: (i) Employees may contribute into the RRSP un til December 30th of the year the Employee turns 71. The employer shall match the Employee’s contributions into the RRSP; (ii) Employees may contribute into the TFSA. The Employer shall match the Employee’s contributions into the TFSA.
(c) a Regular Employee who, by virtue of their age, no longer qualify under article 29.05(b)(i), shall have the option of reallocating contributions to the TFSA as per 29.05 (b) (ii) or receive an additional 2% of their regular earnings. Employees may change their allocation between participating in the TFSA and receiving 2% of regular earnings effective April 1st each year.
(d) “earnings” as defined in article 29.05(b) above, will include WCB earnings until such time that the employee exhausts accrued sick leave credits and is deemed to be on sick leave without pay.
The agreement does require that employees contribute 2% of their salary for the employer to match, and employees need to enroll in the program for the employer to contribute this money.
But no UNA member should ever go without funds for their retirement that their Employer has agreed to contribute.
This supplemental pension is not available to temporary or casual employees.
Additional resources:
– Insite (https://insite.albertahealthservices.ca/hr/Page7317.aspx)
– Manulife (https://www.manulife-group-plans.ca/albertahealth/home.html?vanity=www.manulife.ca/ahs)
Please contact us should you have further questions or concerns.