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LETTER #8 – LETTER OF UNDERSTANDING RE: EMPLOYER COST SHARING FOR POST EMPLOYMENT NLTA GROUP INSURANCE PREMIUMS

January 30, 2020

Miriam Sheppard
Chief Negotiator
Newfoundland and Labrador Teachers’ Association
3 Kenmount Road
St. John’s, NL
A1B 1W1

Dear Ms. Sheppard: 

Re: Employer Cost Sharing for Post Employment NLTA Group Insurance Premiums 

The parties hereby confirm and acknowledge that:

1. Employees who are hired subsequent to the date of signing of the Collective Agreement (“Newly Hired Employees”) shall receive post-employment employer cost sharing of NLTA group insurance premiums in accordance with clause 5 of this Letter of Understanding.

2. Former employees who are rehired subsequent to the date of the signing of the Collective Agreement following resignation, retirement, termination, or layoff and who no longer have recall rights under the Collective Agreement, shall be considered to be Newly Hired Employees for the purpose of this Letter of Understanding.

3. Notwithstanding clause 2 above, former employees with service prior to the date of signing of the Collective Agreement who are hired subsequent to the date of signing of the Collective Agreement by another School Board or the same School Board within one hundred and twenty (120) calendar days of resignation, retirement or termination shall not be considered to be Newly Hired Employees for the purpose of this Letter of Understanding.

4. Excepting Newly Hired Employees who receive post-employment employer cost sharing of NLTA group insurance premiums in accordance with clause 5, the Employer’s share of the cost of NLTA group insurance premiums for employees shall be based on the lowest required premium rate as determined in accordance with Schedule J of the Collective Agreement.

5. The Employer’s share of the cost of post-employment NLTA group insurance premiums for Newly Hired Employees shall be calculated as follows for the purpose of the rate setting process established in Schedule J of the Collective Agreement:

Completed Years of Pensionable Service

Employee Share – Employer Share

5-19 years

85% – 15% of the lowest required premium rate as determined in accordance with Schedule J

20-24 years

70% – 30% of the lowest required premium rate as determined in accordance with Schedule J

25-29 years

55% – 45% of the lowest required premium rate as determined in accordance with Schedule J

30+ years

50% – 50% of the lowest required premium rate as determined in accordance with Schedule J

 

6. Nothing in this Letter of Understanding shall have the effect of disqualifying an employee’s or Newly Hired Employee’s eligible survivor(s) from participation in the NLTA Group Insurance Plan, provided however that the Employer’s share of the cost of post-employment NLTA group insurance premiums for eligible survivor(s) shall be the same as was the case for the deceased employee or deceased Newly Hired Employee.

7. This Letter of Understanding shall prevail where any term herein conflicts with a provision of the Collective Agreement, one of its Schedules, Letters or Memoranda of Agreement, including, without limitation, any practice, settlement of dispute, agreement or arbitration award arising from events prior to the date of signing of the Collective Agreement.

8. This Letter of Understanding may be executed in any number of counterparts, each of which will be considered an original of same, and which together will constitute one and the same instrument. A facsimile signature or an otherwise electronically reproduced signature of any party shall be deemed to be an original.

Yours truly,

Lisa Curran
Chief Negotiator
School Board Committee

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