NAV CANADA: An update on salary adjustments, retroactive pay & RRSPs

Our negotiator met with NAV CANADA to discuss when members will begin seeing salary adjustments and retroactive pay.

NAV CANADA has prepared an explanation as to what will happen with these payments and when members will begin to see it on their paycheques. We have received the following information from the employer concerning pay and RRSP transfers:

New Pay Rates

The collective agreement will run from January 1, 2018 until December 31, 2020 and provides for wage increases of 4% on January 1, 2018, 3% on January 1, 2019 and 1% on January 1, 2020.

The new rates will be implemented for the pay period of January 24, 2019 to February 6, 2019 and will be reflected on the employee’s direct deposit dated February 6, 2019.

Retroactive Adjustment for Wage Increases

The retroactive payment covering the period of January 1, 2018 to January 23, 2019 is currently being calculated and will be paid out in two payments: Retroactive Payment #1 covering November 1, 2018 to January 23, 2019 and Retroactive Payment #2 covering January 1, 2018 to October 31, 2018.

Employees Eligible for a Retroactive Payment

Current employees as of date of ratification of the new collective agreement, and former employees who have retired or died, and all employees in the bargaining unit whose employment ceased as a result of being declared surplus during the retroactive period since January 1, 2018.  No retroactive payments will be made to employees who have resigned or who have been terminated between January 1, 2018 and the ratification of the new collective agreement.

 ·      Employees eligible for a retroactive payment will receive two retroactive payments due to the transition to Workday:

  • Retroactive Payment # 1 - For the retroactive period covered by Workday, November 1, 2018 to January 23, 2019, retroactive pay will be included on the employee’s direct deposit dated February 6, 2019.  Workday will calculate this information and pay the employees automatically, including transferring any funds to the Sunlife Group RRSP/TSFA if an employee is already participating in the plan.  Employees should note Workday will recover amounts previously paid for basic pay, overtime and premiums and will repay these amounts at the new rates.  These negative and positive entries will appear on your payslip.  This is the only statement of the calculations that can be provided to employees for this payment.  If employees have questions about the calculations on the payslip, they can contact the HR Employee Centre at 1.888.774.4732 or by email at [email protected] .
  • Retroactive Payment # 2 - For the retroactive period covered by Oracle, January 1, 2018 to October 31, 2018, the date for retroactive pay is April 17, 2019.

 ·      Employees who retire between January 1, 2018 and February 6, 2019 may receive their first pension payment based on their old rates of pay. Retiree pension payments will be adjusted by May 1, 2019 along with a retroactive payment as required.

·      To assist those employees eligible for a retroactive payment in understanding the calculation of the “gross amount” of Retroactive Payment # 2, Payroll will provide a statement to each employee on April 17, 2019. This statement will provide a breakdown of their retroactive adjustment for the period of January 1, 2018 to October 31, 2018.

·      Retroactive payments are subject to the following deductions:

  • Income Tax
  • Canada/Quebec Pension plan
  • Employment Insurance
  • Québec Parental Insurance Plan
  • NAV CANADA Pension Plan
  • Long-Term Disability Plan

Other retroactive payments such as extra duty and leave payments are also subject to the above deductions with the exception of the NAV CANADA Pension Plan. 

NOTE: PSAC/UCTE will not be taking additional deductions for union dues.

RRSP Transfer

Employees eligible for a retroactive payment have the option of having their Retroactive Payment # 2 entitlements, or a portion thereof, transferred to the NAV CANADA Group RRSP.

For information on the RRSP transfer, see the attached document titled Request to Transfer Amount to NAV CANADA Group RRSP.

Employees who want to transfer all or a portion of the Retroactive Payment #2 entitlements can contact the HR Employee Centre after February 25, 2019 and request an approximate value of their Retroactive Payment #2.

Employees must complete and sign the attached form.  Signed RRSP transfer request forms must be emailed to the HR Employee Centre: [email protected].  The firm deadline for returning RRSP transfer request forms is March 15, 2019.  This will allow time for Sunlife to receive the applications and for the employees to complete their enrolment prior to Retroactive Payment # 2 being processed. 

For More Information

For more details or clarification with respect to the information provided in this bulletin, please contact the HR Employee Centre at 1.888.774.4732 or by email at [email protected].

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January 24, 2019