Administrators > Administration Manual > Section 5 Leaves of Absence and Buybacks > Prepaid Leave

Prepaid Leave

Forms Checklist:

Leave of Absence (pdf) (Word)

Supporting Documents:

Cheque

Definition / Eligibility:

A Member who has received College approval to prepay the leave of absence by "banking" a percentage of their salary which will be paid while they are on leave. The contributions in years during which the salary is "banked" are based on the normal rate of pay, not the actual pay received. Therefore, no contributions will be made for the period of the leave of absence unless the Member chooses to purchase it as unpaid leave in which case the leave period is subject to the five year limit under the Income Tax Act.

College Responsibilities:

Tell Member before the start of their leave that they have to purchase their leave period if they want it to be Pensionable Service.
If the Member wants to purchase their leave period, complete the College's section of the Leave of Absence form.
See: Unpaid Leave of Absence.

CAAT Pension Plan Responsibilities:

Record contract.
After the funds are received, adjust the Member's pension records to include the leave, Pensionable Service, contributions and deemed earnings.

Member Responsibilities:

If purchasing the leave, sign and date Leave of Absence form and give it to College.
Pay cost of leave period in a lump sum to the College (cheques must be made payable to College).

Plan Text Reference: 4.04(3)

July 2008