||Volume 17, No. 4, January/February 2005
Teachers’ Pension Plan: Day-one enrolment July 1, 2005
In June 2004, the Teachers’ Pension Board of Trustees amended the plan rules to require employers under the Teachers’ Pension Plan to enrol all eligible employees, including regular and casual employees. The trustees made the decision after an extensive survey of school districts indicated that the change would make it easier for the districts to administer the plan-enrolment rules. The rule change will also reduce employers’ liability for future enrolment arrears.
The rule change, coming into effect July 1, 2005, will mean the following for employees under the Teachers’ Pension Plan:
New employees hired on or after July 1, 2005—Employees employed in a less than half-time capacity must be immediately enrolled in the Teachers’ Pension Plan, and they will no longer be allowed to opt out of enrolling in the plan.
Existing employees as of July 1, 2005—Employees who had previously waived enrolment in the plan must also be enrolled effective July 1, 2005. Employers are not required to retroactively enrol those employees to their employment start date, and these employees are not eligible to purchase their prior non-contributory periods of service.
In January 2005, the plan will remind school districts of the enrolment rule change and of the timeline so that the districts can be ready to enrol affected employees in July 2005.
The change does not affect retired members, as they will still be able to choose not to contribute to the plan. As before, if they do choose not to contribute, they will continue to receive their pension as well as their regular pay without making pension contributions.
– Communications Branch, Teachers’ Pension Plan