Part 6: Additional Employer Information

Additional Employer Information

How To Determine Annual Base Hours

Base Hours are the hours that a full time employee would work in a given position or job. The minimum hours MEBP would consider a full time position is 6 hours per day, 5 days per week.

The base hours should be the same for all employees who do the same job/position. They do not change unless the employee moves to a different job/position that has different base hours or a decision is made to change the base hours for all employees in a particular job class.

The most commonly used base hours based on 26 pay periods are: 1820, 1885, 1950, 2080, 2340 and 2600. These hours may be slightly different for employers who pay employee on a semi-monthly or monthly basis or for employers who may have 27 pay periods.

Example 1:

An RM hired a part time Building Inspector. The employee works 4 hours each day, 5 days a week, all year round. The total pensionable hours for this employee are:
4 hrs. x 5 days x 52 weeks = 1040.

The RM also has a full time building inspector, this employee works 8 hours each day, 5 days a week, all year round. The total pensionable hours for this employee are:
8 hrs. x 5 days x 52 weeks = 2080

The Base Hours for this RM’s Building Inspector Position are 2080. Therefore, the base hours for both part time and full time building inspector is 2080.

Example 2:

A Village has hired a seasonal Arena Attendant. This employee works 8 hours each day, 5 days a week, from November to February. The employee worked for 8 weeks during November and December. The total pensionable hours for this employee are:
8 hrs. x 5 days x 8 weeks = 320

The Village does not have a full time Arena Attendant but if they did, the employee would work 7.25 hours each day, 5 days a week, all year round. Pensionable hours would be:
7.25 hrs. x 5 days x 52 weeks = 1885

The Base Hours for this Village’s Arena Attendant Position are 1885.

Example 3:

A Town has hired an employee to clear snow during the winter months and do road construction during the summer. The employee is classified as a Heavy Construction Worker, the full time hours required are 50 hours per week during the winter season and 40 hours per week during the summer road construction period. There were a total of 24 weeks where the employee worked 50 hours per week and 28 weeks at 40 hours per week. Pensionable hours would be:
(50 x 24) + (40 x 28) = 2320

The Base Hours for the Heavy Construction Worker job are 2340, as established by the Town for this position.

Example 4:

A RM has Maintenance Workers. A full time Maintenance Worker is required to work 10 hours per day, 5 days per week:
10 hrs x 5 days x 52 weeks = 2600.

The Base Hours for the Maintenance Worker Positions for this RM are 2600.

MEBP Pensionable Earnings List

TYPE Pensionable Earnings Pensionable Hours Required Pension Contribution Required
Accommodation Allowance NO NO NO
Acting Pay YES NO NO
Administration/Processing Fees NO NO NO
Banked Time - Lump Sum Pay Out of Unused Bank Time NO NO NO
Banked Time - paid as regular earnings YES YES YES
Banked Time - paid as a Lump Sum Payment NO NO NO
Bonus Payments of Any Type (Cash, Service, Vacation) NO NO NO
Cell Phone/Pager PayNONONO
HonorariumsNONONO
Maternity/Parental Leave Top Up PayNONONO
Meeting AllowanceNONONO
MileageNONONO
Northern Living AllowanceNONONO
On-call / After hours payNONONO
OvertimeNONONO
Pay issued to an employee who is called in to work while on lay off or leave of absenceYESYESYES
Pay in Lieu of NoticeYESYESYES
Regular Earnings YES YES YES
Retiring Allowance/Severance Pay - paid as a Lump Sum Payment NO NO NO
Retiring Allowance/Severance Pay - paid as a continuation of salary/payYESYESYES
Retro PayYESNOYES
Shift PremiumsYESNOYES
Sick Leave - Lump Sum Pay Out of unusedNONONO
Sick Time TakenYESYESYES
Statutory Holiday Pay - paid as regular earningsYESYESYES
Statutory Holiday Pay - paid as a Lump Sum Pay OutNONONO
Tool AllowanceNONONO
Vacation Pay paid as regular earnings during a period where the employee is on vacationYESYESYES
Vacation Pay paid as a percentage of earnings on each pay YESNOYES
Vacation Pay paid as a continuation of salary/pay to date of termination or retirementYESYESYES
Vacation Pay - Lump sum payment of current or accrued vacation paid during the year or at termination or retirementNONONO
Vacation Pay - Lump sum payment on death of employeeNONONO
Vehicle AllowanceNONONO
Workers' Compensation paid through employerYESYESYES
WCB Top Up Pay paid when employee is receiving payments directly from WCBNONONO

Vacation Pay Procedures

The type of vacation pay and how it is issued will determine:

if the vacation pay is considered to be "pensionable earnings",
if MEBP required contributions are to be deducted and,
if the vacation hours paid are to be reported as pensionable service.

1) Situations when vacation pay and vacation hours are pensionable

Vacation pay is considered to be "pensionable earnings" and MEBP required contributions are to be deducted and pensionable service reported when current or accrued vacation pay is issued in the following situations:

a) Vacation pay paid to an employee as regular earnings during a period when the employee is away from work due to a vacation period.

Example:

A full time employee is entitled to 3 weeks of paid vacation each year. The employee takes 1 week of vacation in February and 2 weeks in July. While on vacation the employee continues to receive his regular pensionable earnings and all required MEBP contributions are deducted. In December the employee retires.

Hourly Pay Rate = $25.24
Total Pensionable Hours Worked = 2080 includes 240 hours (80 x 3 pay periods) of vacation hours paid.
Base Hours = 2080
Pensionable Service = 1.0000 year
Pensionable Earnings = $52,500 includes $6,057.69 ($25.24 x 240) of vacation pay earnings.

b) Vacation pay paid to the employee as a continuation of pay or salary. If the accrued vacation is paid as pay or salary continuance, all MEBP contributions continue to be deducted and pensionable service that applies to the accrued vacation pay is required to be reported.

Example:

A part-time employee worked 950 hours and received pensionable earnings of $35,000. At retirement, the employee had accrued 100 hours of vacation pay. The employer and employee agreed that the 100 hours of accrued vacation pay would be paid out over 2 pay periods. The employee's last day at work was December 4, but she remained on payroll until December 18, receiving additional pensionable earnings of $3,684.

Total Pensionable Hours Worked = 950
Base Hours = 2080
Pensionable Service = 950/2080 = .4567
Pensionable Earnings = $35,000 + 3,684 = $38,684

2) Situation when vacation pay is pensionable, but vacation hours are not.

Vacation pay is considered to be "pensionable earnings" and MEBP required contributions are to be deducted from vacation pay, but the vacation hours are not to be included as pensionable service, when current or accrued vacation pay is issued in the following situation:

Vacation Pay Paid as a Percentage of Earnings

Pensionable hours are not required to be attached to vacation pay that is paid to the employee as a percentage of pay or salary in each pay period.

Example:
A seasonal employee works from September to April and is paid vacation pay of 6% on each pay. Her total pensionable earnings for the season were $23,604 and she worked a total of 1200 hours.

Hourly Pay Rate = $19.67
Total Pensionable Hours Worked = 1200 (no hours required to be reported for vacation pay)
Base Hours = 1950
Pensionable Service = .6154 year
Pensionable Earnings = $23,604 plus $1,416 (6% of $23,604) = $25,020.24

3) Situations when vacation pay and vacation hours are not pensionable.

Vacation pay is considered to be not pensionable when current or accrued vacation pay is issued in the following situations:

Vacation pay paid as a lump sum payment.

A lump sum payment(s) of current or accrued vacation pay is not considered to be pensionable earnings and MEBP contributions are not required to be deducted if the payment is issued during the year or at termination, retirement or death.

Example 1 - accrued vacation paid as a lump sum payment at termination
A full time employee worked 1700 hours and received pensionable earnings of $42,500. At termination the employee received a lum sum payment of 200 hours of vacation pay ($5,000) in the final pay period. The employee's base hours are 1820.

Total Pensionable Hours Worked = 1700
Base Hours = 1820
Pensionable Service = 1700/1820 = .9341 year
Pensionable Earnings = $42,500

Example 2 - accrued vacation paid in lieu of vacation
A part-time employee worked 1000 hours and received pensionable earnings of $33,000. During the year the employee requested that his accrued vacation pay be issued in a lump sum payment, in lieu of receiving it during the employee's vacation period. The employee received 100 hours of vacation pay.

Total Pensionable Hours Worked = 1000
Base Hours = 1950
Pensionable Service = 1000/1950 = .5128
Pensionable Earnings = $33,000

CPP Year Maximum Pensionable Earnings (YMPE)

Rate W/DIP

Pension Plan Only Rate

 Year

YMPE

 ¼ of YMPE

4.8%

4.9%

2000

$ 37,600

$ 9,400

$ 1,804.80

$ 1,842.40

2001

$ 38,300

$ 9,575

$ 1,838.40

$ 1,876.70

2002

$ 39,100

$ 9,775

$ 1,876.80

$ 1,915.90

5.3%

5.4%

2003

$ 39,900

$ 9,975

$ 2,114.70

$ 2,154.60

2004

$ 40,500

$ 10,125

$ 2,146.50

$ 2,187.00

2005

$ 41,100

$ 10,275

$ 2,178.30

$ 2,219.40

2006

$ 42,100

$ 10,525

$ 2,231.30

$ 2,273.40

2007

$ 43,700

$ 10,925

$ 2,316.10

$ 2,359.80

2008

$ 44,900

$ 11,225

$ 2,379.70

$ 2,424.60

5.8%

5.9%

2009

$46,300

$11,575

$2,685.40

$2,731.70

6.3%

6.4%

2010

$47,200

$11,800

$2,973.60

$3,020.80

2011

$48,300

$12,075

$3,042.90

$3,091.20

2012 to June 30

$50,100

$12,525

$3,156.30

$3.206.40

7.3%

7.4%

2012 from July 1

$50,100

$12,525

$3,657.30

$3,707.40

8.3%

8.4%

2013

$51,100

$12,775

 $4,241.30

$4,292.40

2014

$52,500

$13,125

$4,357.50

$4.410.00

2015

$53,600

$13,400

$4,448.80

$4,502.40

2016

$54,900

$13,725

$4,556.70

$4,611.60

2017

$55,300

$13,825

$4,589.90

$4,645.20

2018

$55,900

$13,975

$4,639.70

$4,695.60

2019

$57,400

$14,350

$4,764.20

$4,821.60

2020

$58,700

$14,675

$4,872.10

$4,930.8