DOUGLAS COLLEG
ARCHIVES

 

 

douglas college
Inter Office Memo Date: _January 27, 1986.

 

To:
From:
Re:

All College Employees
M.H. Morfey /M. Leslie

Survey - Salary Deferral Plan

A committee representing the faculty association and the College
has been holding exploratory discussions in connection with a deferred salary
program. A representative from the staff (BCGEU) will be participating
at the next meeting of the committee.

Before undertaking additional work in this regard, or incurring
consultant fees, the committee would appreciate an expression of interest
from faculty, staff and excluded employees.

A tentative outline of the key points of such a plan is as follows:
1. Purpose - to defer income (and taxes normally paid on this
income),

to provide for subsequent benefits in future years

i.e. - supplement pension income
- early retirement
- leaves of absence.

The income becomes taxable in the year the money is withdrawn
from the Plan.

 

2. Employee Participation - all full-time regular college
employees.
3. Contribution (deferral options) - a fixed dollar amount per

 

pay period, or a fixed percentage amount per pay period. It
is expected that a minimum contribution level will be
established.

4. Pension Plans - salary deferral plan will not affect employee's
contributions to the College Pension Plan or the Municipal
Superannuation Plan. However, such a plan may affect the
Canada Pension Plan (for 1986, the year's maximum pensionable
earnings limit is $25,800), and possibly RRSP's (contribution
limit of $3,500 or 20%.)

5. Opening Date - once a year on a selected anniversary date,
the plan will be open to admit new regular full time employees,
and to give existing members an opportunity to amend or
terminate their contribution schedules.

6. Investments - initially, it is expected that the trustee will
invest the deferred income funds in 90 day treasury bills,
or other guaranteed investment certificates. At a subsequent
time, a committee of participants could be authorized to broaden
the scope of the investment options.