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THE LIFE & CAREER OF A SEASONAL HOURLY PAID EMPLOYEE

THE LIFE & CAREER OF A SEASONAL HOURLY PAID EMPLOYEE. Presented by MEBP MMAA Conference April 28, 2009. HIRE EMPLOYEE . John starts working on March 31, 2008 Hourly rate of pay - $14.00 Hours to be worked per week – 45 John is age 24 and single. FIRST YEAR.

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THE LIFE & CAREER OF A SEASONAL HOURLY PAID EMPLOYEE

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  1. THE LIFE & CAREER OF A SEASONAL HOURLY PAID EMPLOYEE Presented by MEBP MMAA Conference April 28, 2009

  2. HIRE EMPLOYEE • John starts working on March 31, 2008 • Hourly rate of pay - $14.00 • Hours to be worked per week – 45 • John is age 24 and single

  3. FIRST YEAR • John is laid off September 30, 2008 • Has worked 1,179 hours plus received 4% vacation pay each cheque • Has earned $17,166.24 • 1,179 hours x $14 = $16,506 • plus 4% = $17,166.24

  4. SECOND YEAR • John is recalled April 6, 2009 • Rate of pay is $14.50 per hour • 1st pay day is April 25 (cut-off date Apr 18) • Regular bi-weekly pay is $1,305 plus 4% Vac. Pay for a total of $1,357.20

  5. SECOND YEAR • 2008 CPP Maximum was $44,900 • ¼ of 2008 CPP Max is $11,225 • John earned $17,166.44 • 2009 CPP Maximum is $46,300 • ¼ of 2009 CPP Max is $11,575

  6. SECOND YEAR • John earned more than ¼ of CPP max in 2008 • Must track 2009 earnings to see when the $11,575 is reached

  7. SECOND YEAR

  8. SECOND YEAR • This is the first pay period that John reached 1/4 of CPP max (11,575)

  9. SECOND YEAR • MUST NOW JOIN MEBP • Pay day of August 14 had a cut-off date of August 7. • Entry date into MEBP Program is August 10 (first day of next pay period) (could be August 8)

  10. MEBP FORMS • Forms to be completed • Form #20 – Enrolment form – Pension & Disability Income Plans • Form #25 – Declaration of Spouse & Designation of Beneficiary • Form #71 – Enrolment Form – Group Insurance Plan • Form #78 – Application/Change Voluntary Accidental Insurance • Form #72 – Voluntary Life Insurance (optional)

  11. MEBP FORMS • Form #20 • You complete the Employer Number and Name on top • John completes Section 1 • Must provide Proof of Age • Drivers License not acceptable

  12. Form #20 (cont) • Section 2 – Privacy Statement • MUST be signed by John • Section 3 – Designation of Beneficiary (reminder that Form #25 must be completed)

  13. FORM #20 (cont) • Section 4 – Employment Information • Check the box indicating that John is Part-time, Seasonal or Temporary • Check the box indicating that participation is compulsory

  14. FORM #20 (cont.) • Employment Start Date – the date John starting working – March 31, 2008 • Plan Entry Date – August 10, 2009 • Rate of Pay - $14.50 (do not include Vac. Pay) • Frequency - Hourly

  15. FORM #20 (cont.) • Number of ‘Regular Full-time Hours – 45 • Frequency – Weekly • Basic Life Insurance Coverage at Plan Entry – Use Prior Year’s Earnings to Calculation Coverage - $17,166.74

  16. FORM #20 (cont.) • Insurance Coverage • Determine if John is applying for 1x or 2x coverage • If 1x, coverage is $17,000 • If 2x, coverage is $34,000 • If John is unionized, print the name of the union – ie. CUPE, Transit, IBEW, etc.

  17. FORM #20 (cont.) • You then confirm that you have reviewed John’s information – check to make sure all fields have been completed. • Check off A or B if applicable – John must have been actively at work immediately prior to his date of entry into the Program (if John was not at work immediately prior to his date of entry, a Form #17, Statement of Health, is required). • Date and sign the form

  18. FORM #25 • John must complete this form • Section A – Declaration as to whether or not the employee has a spouse and the name of that individual (no) • Section B – Declaration of Eligible Dependents (no)

  19. FORM #25 • Eligible dependents must be under age 19, OR • between age 19 and 25 and in full-time attendance at an educational institution, OR • have reached their 19th birthday and are physically or mentally handicapped and have been since age 19.

  20. FORM #25 • Section C – To be completed if there is no spouse or eligible dependents • May list all children • May list any person • If not completed, proceeds will be paid to the Estate • John names his parents, signs and dates form – signature must be witnessed

  21. FORM #71 • Group Insurance Enrolment Form • Section 1 – Basic – If John wants 1x salary coverage, he must cross out the 2x and write in 1x • Section 3 – must be completed ONLY if John does not want Family Life Insurance (since he is single, this section should be completed). If John told you he does not want the coverage, but does not complete this section, contributions are still required. Check this carefully.

  22. FORM #71 • Beneficiary Designation • Can name anyone • If no-one named, proceeds will be paid to the estate • If designating a minor(s), complete the reverse of the form to appoint a Trustee

  23. FORM #71 • John must date and sign form • John must also initial the top section on page 2 in ink. • Signature must be witnessed by someone who has not been designated as beneficiary

  24. FORM #78 • VOLUNTARY AD&D • John decides he wants $250,000 coverage (Employee Only Plan) • Names his parents as beneficiaries • Form must be dated, signed and the signature witnessed • John must initial the top section of page 2 in ink

  25. PAYROLL DEDUCTIONS • PENSION • $1,357.20 x 5.8% = $78.72 • DISABILITY INCOME PLAN • $1,357.20 x .05% = $6.79

  26. PAYROLL DEDUCTIONS • BASIC INSURANCE • Go to Insurance Deductions Table under ‘Contributions’ Tab in Manual • Bi-weekly deduction for $34,000 (2x) coverage is $2.67 (assuming employer pays 50%) • First deduction must be a double deduction so that insurance is pre-paid • Therefore the deduction is $2.67 x 2 = $5.34

  27. PAYROLL DEDUCTIONS • Voluntary AD&D • The contribution for Employee Only, $250,000 coverage is $5.00 per month (or $2.31 bi-weekly)

  28. REMITTANCE REPORT • PENSION PLAN • Employer must match employee contributions • DISABILITY INCOME PLAN • In this case, the employer matches • INSURANCE PLAN • In this case, the employer matches Basic

  29. REMITTANCE REPORT • Don’t forget to write in the number of employees contributing to the Voluntary Life, Family Life and Voluntary Accidental Insurance • MAKE SURE THE REMITTANCE ADDS UP CORRECTLY AND MATCHES THE AMOUNT OF THE CHEQUE • Mail to MEBP office before the 15th of the following month

  30. LAY-OFF • John is laid off October 9, 2009 • Make all usual deductions from last pay cheque • Pension & Disability Income contributions are NOT payable during lay-off period

  31. LAY-OFF • Make sure John completes Form #45 – Coverage During Lay-Off – indicating whether or not he wishes to continue his insurance coverage • CAN’T STRESS ENOUGH HOW IMPORTANT THIS IS

  32. LAY-OFF • If John should die or have an accident during the lay-off period and Form 45 was not completed, you could be liable for the insurance coverage • You are responsible for collecting and remitting the insurance contributions • Include them as employee & employer contributions on the Remittance Report • In the event of a claim we may request evidence that contributions have been made

  33. YEAR-END • Report only pensionable earnings and service since date of entry – August 10 • John was paid for 9 weeks (or 4.5 pay periods) since his date of entry

  34. YEAR-END • SERVICE CALCULATION • 4.5 pay periods @ 45 hours per week = 405 hours • Plus convert Vacation Pay into Hours • $234.90 / $14.50 = 16.2 hours • Total hours = 405 + 16.2 = 421.2

  35. YEAR-END • SERVICE CALCULATION (cont.) • If employee had worked all year at 45 hours, the maximum would have been 45 hours x 52 weeks = 2,340 To calculate service take hours worked plus vacation hours and divide by 2,340

  36. YEAR-END • SERVICE CALCULATION (cont.) • 421.2 / 2,340 = .1800 • Report Service as .1800

  37. YEAR-END • Add up earnings since date of entry • 4.5 pay periods @ $1,305 plus 4% vacation pay • = 1,305 x 4.5 = 5,872.50 • Plus 4% vacation pay • = 5,872.50 + 234.90 = 6,107.40

  38. YEAR-END • PENSION CONTRIBUTIONS • Pension contributions should have been $6,107.40 x 5.8% = $354.23 • Check to make sure that this is the actual amount deducted (don’t worry if it’s out a few cents due to rounding)

  39. YEAR-END • DISABILITY INCOME CONTRIBUTIONS • Report the total • Should be $6,107.40 x 1% = $61.07 • Check to make sure the deductions from John’s cheques totaled one-half or $30.54

  40. YEAR-END • BASIC INSURANCE • Enter the coverage amount (34) • Frequency – Enter B/W • Enter the bi-weekly contribution ($2.67) • Active Y or N – if John elected to continue his coverage while on lay-off, enter a Y (meaning that the coverage is active) • If John elected not to contribute while on lay-off, enter an N

  41. YEAR-END • Voluntary AD&D • Enter E (for Employee Only Plan) • Coverage – Enter 250 • Contribution – Enter $5.00 • Active @ Dec. 31 (if John decided to contribute, enter Y – if he decided not to continue his insurance while laid off, enter N)

  42. YEAR-END • FAMILY INSURANCE • John does not have Family Insurance, so the system has automatically put a Y in the field indicating that the Waiver was signed • Active @ Dec. 31 – Enter N (because no contributions are being paid)

  43. YEAR-END • Voluntary Life • John did not elect to be covered for Voluntary Life Insurance, so enter an N for Active @ Dec. 31

  44. RECALL • John is recalled on March 29, 2010 • Start all deductions immediately • Insurance coverage is based on $18,322 (his regular earnings in 2009) • If John did not continue his life insurance while laid off, deduct a double contribution from his first pay cheque

  45. MARRIAGE • John gets married in 2010 and moves away from his mom & dad’s home • Form Required – Form #30 • Enter John’s new mailing address • Change Marital Status from S to M • Provide the Spouse’s name, SIN and Birth Date • Enter the effective date of change (Date of marriage)

  46. MARRIAGE • Form #25 • A new Declaration of Spouse and Designation of Beneficiary must be completed • John can still name his parents in Section C if he wishes (in the event that his wife pre-deceases him or they die at the same time)

  47. MARRIAGE • Ask John if he wants to change the beneficiaries of his basic life and voluntary AD&D insurance • To change Insurance Beneficiaries for Basic Insurance – use Form #75

  48. MARRIAGE • Voluntary AD&D • To change beneficiaries, a new Form #78 must be completed • Ask John if he now would like Family Coverage for Voluntary AD&D • Remember to change the next payroll deduction to match the Family Coverage

  49. MARRIAGE • Family Insurance • Ask John if he now wants Family Insurance coverage – if he does, he must complete Form #72 • If the form is completed with 31 days from the date of marriage, no evidence of good health for the spouse is required • If after 31 days, complete Medical & Lifestyle Questionnaire

  50. LAY-OFF • John is laid off • Make sure he completes Form #45 indicating whether he wants to continue his group insurance coverage during lay-off • Must continue basic insurance in order to continue the other types of coverage

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