Leave of absence without pay
What happens if I take a leave of absence without pay?
You may be entitled to continue contributing to your DC pension during a leave of absence. There are two types of leave, legislated and non-legislated.
What is a legislated leave?
A legislated leave of absence is a leave defined under federal labour legislation. Examples are Maternity, Parental, Adoption, Compassionate Care and Disability/Sick leave.
What is a non-legislated leave?
A non-legislated leave of absence is a leave offered by Canada Post that is not found under federal labour legislation. It includes, but is not limited to, Care and Nurturing, Spousal Relocation, Elder Care, Military, Education and Personal leave.
What happens while I’m on a legislated leave of absence?
Legislated leave of absence
makes its base contribution on your behalf, and
makes matching contributions, if you choose to contribute for the leave period.
can continue to contribute for the maximum period provided for by law, if you are already making optional contributions.
|Note: Contributions will be based on your age and years of continuous service. The amount of the contributions will be calculated based on your pensionable earnings on the date you start your leave.||
Note: If you are making optional contributions, the percentage will remain the same during your leave period and upon your return.
You may change the percentage prior to going on leave or at the beginning of the leave. To do so, complete and return the Defined Contribution Pension Payroll Deduction Authorization form.
What happens while I’m on a non-legislated leave of absence or unauthorized leave?
Non-legislated leave of absence
does not make any contributions on your behalf, neither base contributions nor matching contributions.
cannot contribute to the Plan.
What happens to my contributions to the Voluntary Savings Plan (VSP) while I’m on a leave of absence?
If you are making contributions to the VSP by payroll deduction, those contributions will stop for the period while you are on leave without pay. If you want to continue contributing to your VSP while on leave, either through lump-sum transfers or pre-authorized payments from your personal bank account, contact the Canada Life Call Centre at 1-866-716-1313, between 8 a.m. and 8 p.m. ET.
What happens when I return from leave?
If you chose to continue your contributions to your DC pension for the period of legislated leave, your contributions accumulate during your absence. They will be recovered from your pay following your return to work over a period equal to twice the period of your leave, in addition to your regular optional contributions.
If you discontinued optional contributions to your DC pension for the period of legislated leave, or if you are returning from a non-legislated leave, you must complete and return the Defined Contribution Pension Payroll Deduction Authorization form to resume your contributions via payroll deduction.
Your VSP contributions will resume at the same payroll deduction percentage in effect prior to your leave.