OPS Issue Sheet #4: LTIP takeaways – Cuts when you can least afford it
Thursday, January 15, 2015 – 7:30pm
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a) LTIP benefits to be increased to 70% from 66 2/3%, and
b) Employees to pay the employee portion of pension contributions including when supplementing a WSIB Award, and
c) Pension contributions and pension credits to be based on LTIP earnings, and
d) LTIP benefits and coverage cease when an employee reaches their earliest unreduced pension (i.e. Factor 90, 60/20 and age sixty-five (65)), and
e) LTIP benefits to be calculated at the date of disability, and
f) LTIP qualifying period moved up to 17 weeks from 26 weeks with a corresponding adjustment to Short Term Sickness Plan (STSP) credits available after the initial six days from 120 to 79
Yes, the Employer has offered to increase the LTIP benefits from the current 66 2/3 per cent to 70 per cent.
But only if we agree to all the other takeaways on sick leave!
Currently the Employer pays both the employee and employer portion of the pension contributions while you are on LTIP. But now they want you to pay the employee portion as well as pension contributions would be based on your LTIP earnings.
Despite the employer’s proposed increase of LTIP benefits to 70 per cent, you would still see an overall decrease of 4.9 per cent in your monthly LTIP income and forever have your pension entitlements reduced.
Even further, if you are on LTIP the employer wants to force you into taking early retirement if you reach your 90 factor or 60/20 factor before age 65. This would reduce your years of service and reduce your pension upon retirement.
Moving the LTIP qualifying period up to 17 weeks from the current 26 weeks makes no sense. Right now, it takes about three months to go through the process of applying for LTIP. With this proposed change, you would have to start the ball rolling about a month after you start your short term sick leave, even if you don’t know for certain if you will even need LTIP. It’s a waste of time and effort for everybody.
This is nothing more than an attack on our most vulnerable members. Please continue to support your Bargaining Teams as we fight off these dangerous and costly concessions.
Roxanne Barnes, Chair, Central/Unified Team
Tom O’Neill, Chair, Corrections Team
Warren (Smokey) Thomas, President