Important Information for Treasurers

COMMUNICATION OF INFORMATION TO GSI

GSI needs to be informed, as quickly as possible, of changes in an employee’s circumstances. We encourage you to contact us by phone, fax or e-mail or include any change information on the bottom portion of the remittance form. 

We require notification for the following: 

• Change in treasurer
• New employees
• Resignation or termination of employees
• Sick leave, illness or disability
• Death of member, spouse or dependent child
• Change of beneficiary
• Addition of dependant
• Change in marital status
• Sabbatical or leave of absence
• Maternity or parental leave
• Change in salary or number of hours worked 

It is critical that GSI is informed immediately of any of the above items in order to ensure continuous and accurate coverage, and compliance with policy contracts and legislation. 

Please do not take any action with regard to stopping remittances to pension, group benefits or health and dental without first confirming with GSI.

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INVOICES AND PAYMENT DUE DATES

Preparing invoices

In 2006 we embarked on a major software upgrade which enabled us to create an invoice for pension contributions and benefit premiums, based on the enrollment and salary of the employees for each congregation.  Around the 20th of each month (a week earlier in December) we create and send out the invoices; either by e-mail (upon your instruction) or post.

Invoices should be reviewed carefully to ensure we have all the correct information.  If there are any changes please note them directly on the invoice and correct the totals.  All permanent salary changes should be accompanied by a signed salary calculation form. 

Fluctuating salary

If an employee has an hourly wage it is likely that the monthly ‘salary basis’ will change each month.  Therefore our system will always be behind one month and the invoice will have a second table on the lower half with the adjustment.  If the over or under payment from the previous month equals the adjustment then we have balanced to each other.

Please continue to cross out the incorrect amounts and write the correct amounts underneath.  Alternatively, if you know what the salary will be you can e-mail gsi@elcic.ca before the 20th of the month and we will update the system before we run the invoice. 

Voluntary pension contributions

Since voluntary pension contributions are optional and can change every month we are not able to include an amount on the invoice.  If there are voluntary pension contributions, please write then in next to the appropriate employee under the ‘Members’ voluntary payment’ column and update the totals.

Payment

We request that you return the invoice to us with your cheque in the envelope that is provided.  You may wish to make a copy for your records but it is important that we have the invoice returned to us (with any changes you may have made).  Payment is due on the 15th of the month following the month in which the contributions were deducted from the members’ salary. 

Pension contributions are recorded in member accounts as received on the date they arrive in our office.  If you wish to have the December contributions recorded in that calendar year they must be received by the last working day of December.  Otherwise the contribution will be recorded in the member’s statement in the following year.

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DEFINITIONS

Employee Definitions

Clergy is an ordained person on the ELCIC Roster, and for purposes of pension and benefits enrollment, this employee classification also includes Diaconal Ministers. 

Lay employees are those not on a Roster.  

Definition of "Salary"

The Salary Basis Calculation form will determine the salary basis that will be used for monthly pension and benefit remittances. 

For members where accommodations are provided: 

                        Monthly Cash Salary
+          30% of Monthly Cash Salary
+          Monthly Housing Equity Paid (where applicable)
            =          Monthly “Salary” 

For members where no accommodations are provided:                                   

                        Monthly Cash Salary
+          Housing Allowance Paid
            =          Monthly “Salary”  

Please note that Cash Salary means actual gross earnings including overtime, bonuses and vacation pay, but not including severance pay, and other taxable benefits such as car allowance, book allowance, utilities allowance, etc. 

Subsequent to meeting eligibility and enrolling in the Pension Plan, salary also includes compensation from interim positions, vacation relief, pulpit supply stipends etc.

Schedule of Canada Pension Plan Year’s Maximum Pensionable Earnings (“YMPE”)

The following schedule will be used to calculate eligibility.

Year	YMPE	25% of YMPE
2010	47,200	11,800
2009	46,300	11,575

 

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PENSION PLAN FOR CLERY AND LAY WORKERS OF THE ELCIC

The pension plan registration number is - No. 0533240

Employer Requirements

Who Participates in the Pension Plan?	Document Required
All ELCIC congregations	Participation Agreement
ELCIC affiliated organizations	Participation Agreement
Anglican diocese employing ELCIC clergy	Special Participation Agreement (ELCIC clergy in Anglican service)
Organizations not affiliated directly with the ELCIC but employing ELCIC clergy	Special Participation Agreement

These agreements must be completed, including all authorized signatures, and received by GSI prior to enrolling the employees.  The agreements can be obtained by contacting GSI.

Employee Eligibility and Enrollment

The Eligibility Form and the Salary Basis Calculation Form are to be completed by the employer.  All clergy and lay employees who meet the eligibility criteria are required to participate in the ELCIC Pension. Please ensure that new hires understand that participation is a condition of employment with the ELCIC; this will alleviate misunderstandings. 

New eligible employees are to complete the Pension Enrollment Form.  All completed forms should be returned to the GSI office promptly. 

Employee classification	Eligibility and Enrolment
Clergy – (Rostered persons, including Diaconal Ministers)	Must join the plan on their date of hire, if their salary is at least 25% of the YMPE.
Lay – working 30 hours or more per week	Must join the plan 90 days from their date of hire, if their salary is at least 25% of the YMPE.
Lay – working less than 30 hours per week in Manitoba	Must become members upon completion of 24 consecutive months in which they have earned at least 25% of YMPE.  They may join the plan 90 days from their date of hire, if their salary is at least 25% of the YMPE.
Lay – working less than 30 hours per week in excluding Manitoba	May join the plan 90 days from their date of hire, if their salary is at least 25% of the YMPE.

The Employer must ensure that an eligible lay employee (last row of table), who has waived joining the pension plan, is notified of their eligibility at least annually. 

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PENSION PLAN CONTRIBUTIONS

Member Contribution to Pension       5% of "Salary" 

Employer Matching Contribution to Pension on Behalf of Member        5% of "Salary"

Employer Supplemental Payment to Retiree Fund        6% of “Salary” as a supplemental contribution will be used to finance the unfunded liability that has emerged in the Retiree Fund.  Please do not include this amount in your employees’ pension adjustment or to calculate the amount of voluntary contributions allowed.

Please note that if pastoral services are provided by clergy not enrolled in the pension plan as they are retired (age 65+) or have been ordained or consecrated by another Church (eg. Anglican or United) or are otherwise not eligible to participate in the Pension Plan, the 6% of 'salary basis' is required.  If the 'salary basis' is a consistent monthly amount the Salary Basis Form can be completed and GSI will send an invoice.  If the amounts are random the employer may self assess and submit contributions monthly, quarterly or annually.

Member Voluntary Contributions to Pension        The ELCIC Pension Plan, in accordance with the maximum contributions allowed by CRA, can receive, by payroll deduction, a total yearly contribution of 18% of an employee's salary.  Voluntary employee contributions must also be in accordance with CRA's guidelines for Pension Plan/RRSP contributions. It is each member's responsibility to ensure that all extra contributions to a pension plan or RRSP are within their personal limits.

Contribution Maximum       Contributions are limited to 18% of a member’s salary to a maximum as follows:

Late Entry

Employees that must join the plan as defined above are entitled to the pension benefit from date of eligibility. It is important to enroll and submit all the documentation of enrollment on a timely basis immediately following eligibility.  If for some reason an employee is missed, remittances back to date of eligibility must be made until the employee is ‘caught up’ to where they would have been had they enrolled at date of eligibility.  These remittances are subject to the annual maximum of 18%.  Please contact the GSI office should this situation arise. 

Maintaining Membership in the Pension Plan

After an employee has met the eligibility requirements and is enrolled in the ELCIC Pension Plan, there is no minimum salary requirement to maintain membership in the ELCIC Pension Plan.  Legislation requires a member to continue contributing to the pension plan while employed with a participating employer even when earnings are reduced below 25% of YMPE subsequent to meeting eligibility initially.  This means that if a participating employer employs a pastor who has an account started in the Pension Plan, the employer must remit pension contributions regardless of the amount of compensation or the length of service of that pastor with that employer.  This includes interim positions, vacation relief, pulpit supply stipends, etc.   

Tax Information

Treasurers need to ensure that all contributions to the ELCIC Pension Plan are reported on a member’s T4.

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GROUP BENEFITS PLAN

This plan includes coverage for Life Insurance, Long Term Disability, Employee and Family Assistance Plan (EFAP) and Extended Health Care and Dental Care.

Employer Requirements

Who Participates in the Group Benefits?	Document Required
All ELCIC Congregations	Subscription Agreement
ELCIC Affiliated Organizations	Subscription Agreement
Anglican Diocese employing ELCIC Clergy	Special Subscription Agreement (ELCIC clergy in Anglican service)
Organizations not affiliated directly with the ELCIC but employing ELCIC Clergy	Special Subscription Agreement

These agreements must be completed including all authorized signatures and received by GSI prior to enrolling the employees.  These agreements can be obtained by contacting GSI. 

Employee Eligibility and Enrollment

Employee Classification	Eligibility and Enrollment
Clergy	Must join the plan on their date of hire, if their salary is at least 25% of the YMPE. Optional life is voluntary, and subject to medical evidence.
Lay Employees	Must join the plan 90 days from their date of hire, if their salary is at least 25% of the YMPE, and are working at least 20 hours per week.  Optional life is voluntary, and subject to medical evidence.

Each new employee must complete the Group Benefits Enrollment Form.   

Coverage Ends - on the earlier of employment termination date, or age 65 for life, disability and EFAP, and age 70 for health and dental.

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PREMIUM PAYMENTS

Life and Disability

Member contribution – Premium on optional life only
Employer contribution - Premiums are 3.25% of monthly “salary” effective January 1, 2009

Extended Health and Dental

The Health and Dental Plan is renewed on an annual basis and new rates come into effect on January 1st of each year.  These are rates are established based on the claims experience by province.  The applicable premium rate is mailed to the employer and the member.  A complete rate table will also be posted on the web site.  Cost sharing arrangements between employer and employee are determined by the synod.  Please contact your synod office for the current guidelines.

The first and final premium payments for Life, Disability and Extended Health and Dental are:

FIRST PAYMENT	Enrollment Date	Payment Required
	1st of month	Full monthly payment
	After 1st of month	No payment for that month, full payment in month following
FINAL PAYMENT	Termination Date	Payment Required
	Any day of the month	Full monthly payment

Please note the insurance carriers require that premiums be submitted on the above noted basis as they will not accept pro-rated premiums for a partial month worked.  However, benefits coverage starts on the enrollment date and ends on the termination date.

Late Entry

Employees are covered for benefits from date of eligibility.  It is important to enroll and submit all the documentation of enrollment on a timely basis immediately following eligibility.  Premiums must be submitted back to date of eligibility for all late enrollments.

Maintaining Membership in the Group Benefits Plan

After eligibility has been satisfied and the member is enrolled in group insurance, there is a requirement to maintain membership. If salary permanently reduces to less than 25% YMPE or if hours worked are permanently reduced to less than 20 hours per week for lay employees, then the member is no longer eligible and must withdraw from the plan.  GSI must be notified before remittances are discontinued.

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TAXABLE BENEFITS

The amount paid by an employer as premium to an employee’s benefit plan for life insurance coverage is a taxable benefit to the employee. This calculation and related deductions when calculating income tax and CPP should be made on a monthly basis. 

Example of how the calculation is made based on the 2010 rate

Let’s say the Salary Basis (see salary calculation form) is $40,000 

Basis life insurance coverage equals 3 times ($40,000 x 3 = $ 120,000) 

Calculation of monthly taxable benefit is: 
Employee life insurance                                $.265 x $120,000 / 1,000 =        $31.80 
Dependent life insurance (if applicable)                                                            $  4.00 
Total monthly taxable benefit                                                                           $35.80                                         

Please add tax of 8% in Ontario and 9% in Quebec 
Note:  this tax remains after the conversion to HST in Ontario.       

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LEAVES

When an employee is on a leave of absence, there are certain requirements for maintaining benefits that are dictated by federal or provincial legislation or specified in the ELCIC Pension Plan Text.  For easy reference, the chart on the following page summarizes those requirements.   Please advise GSI of any leaves.

Benefits During Periods of Leave

	Salary	Pension	Life, ADD&D, LTD & EFAP	Optional Life	Health and Dental
Employee Disabled Clergy – 1st 9 weeks Lay – Acc. sick time	Employer paid	Continues in usual manner	Employer paid note: life portion refunded when approved for LTD	Employee paid by payroll deduction	ee / er cost sharing as before
Employee Still Disabled 17 weeks EI (first 2 weeks are waiting period)	EI	Paid in usual cost share manner at employee option	Employer paid note: life portion refunded when approved for LTD	Employee paid by postdated cheques	If er paid 100% of premium then, continues to be paid by er, if cost shared, then continues in same ratio at option of ee
Employee Still Disabled after 181 days elimination	Co-operators on approval	Insured as part of LTD benefit	Life insured as part of LTD benefit	Life insured as part of LTD benefit	optional health employee paid, no dental
Maternity / Paternity Leave – Clergy or Lay	EI	Contributions possible but adverse tax implications may result, please seek advice	Employer paid based on last month salary worked	Employee paid by postdated cheques	If er paid 100% of premium then, continues to be paid by er, if cost shared, then continues in same ratio at option of ee
Paid Leave (paid sabbatical etc)	Employer paid	Continues in usual manner	Employer paid	Employee paid by payroll deduction	ee / er cost sharing as before
Fluctuating Salaries and Partial Paid Leave	Employer pays a fluctuating salary or  reduced salary	Continues based on actual salary earned in the month	Continues based on actual salary earned in the month The benefit will be paid based on last 12 months average.	Employee paid by payroll deduction	ee / er cost sharing as before
Summer Lay off and Unpaid Leave of Absence With a return to work date within 4 months (i.e. not a permanent termination)	No salary, but still considered an employee	If no salary then no contribution for that month	If no salary, then no premium for that month The benefit will be paid based on last 12 months average.	Employee paid post dated cheque	ee / er cost sharing as before
On Leave Without Call Unpaid Leave of more than 4 months	None	None	None	None	None

Note:
ee = employee,
er = employer,  
ADD & D = Accidental Death, Disease & Dismemberment,
LTD = Long Term Disability,
EFAP = Employee and Family Assistance Plan.

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