Effective Date: May 1, 2015
Responsibility: Vice-President, People and Culture
Deferred Salary Leave Plan (DSLP): Leave plan which allows an eligible permanent employee to defer a portion of gross bi-weekly salary exclusively for the purpose of financing a planned period of leave.
Note: The DSLP is an employee benefit plan within the meaning of the definition in Subsection 248(1) of the Income Tax Act. The specific rules under which a DSLP must operate are contained in Regulation 6801 of the Income Tax Regulations and must be adhered to.
RULES AND PROCEDURES
NOTE: Governing policies and procedures for unionized employees found in the applicable collective agreements apply if they differ from this policy and its related instruments.
- To be eligible, an employee must have completed 2 years of service as a permanent employee, effective January 1st of the first year of participation in the DSLP.
- An employee on temporary assignment, whether within or outside a bargaining unit, is also entitled to apply if he/she meets the above requirements.
- The DSLP cannot be used for pre-retirement leave.
- A manager must approve an employee’s application for the DSLP. For authority level for approval, refer to Approvals for the Management of Human Resources.
- For an employee on temporary assignment, both the manager of the primary position and the manager of the secondary assignment must approve the application.
To apply, the employee must submit the DSLP form to the Shared Services Centre by September 30 and specify the date of the planned period of leave.
Note: Once the duration of the leave of absence is approved as outlined, the duration cannot be changed.
- An employee is entitled to re-apply for the DSLP after he/she has returned to active work at CBC/Radio-Canada for at least 12 months.
II. Salary Deferral Period
- The period of salary deferral must begin on January 1.
- Salary deferral must take place over a period of a least 2 years, but not greater than 5 years
- The maximum amount that can be deferred is 33 1/3% of the employee’s salary (i.e. base salary, including eligible additional remuneration and excluding overtime).
- Annual leave credits are earned during the period of salary deferral.
III. Planned period of leave
- The planned period of leave must be for a minimum of 6 consecutive months, to a maximum of 12 consecutive months, and immediately follow the salary deferral period.
- The amount of deferred salary being paid to the employee during the planned period of leave cannot exceed 100% of his/her salary.
- An employee who is eligible for a salary review, anniversary increase or any other negotiated increase will receive such salary adjustment (if applicable) effective the date of his/her return to work.
- No annual leave credits are accrued during the planned period ofleave.
- An employee cannot receive any salary from CBC/Radio-Canada while on the planned period of leave as per income tax regulations.
- As per income tax regulations, the employee must return to active employment with CBC/Radio-Canada for a period of time that is at least equal to the planned period of leave. No period of leave without pay is allowed immediately following the leave.
- For purposes of seniority, service continues to accrue during the period of salary deferral as well as the duration of the planned period of leave.
- The planned period of leave does not count for severance pay purposes.
IV. Administration of the DSLP
During the period of salary deferral, CBC/Radio-Canada continues to pay an employee his/her total salary every pay period. The requested percentage for salary deferral is deducted and the amount is held with an external Trustee.
The Trustee provides periodic reports and an annual summary detailing the principal amount accrued in the DSLP including any interest not yet paid out. Any investment income earned on the deferred portion of salary will be paid out each year by the Trustee as taxable employment income as per Income Tax Regulation 6801. A T4 for any interest paid will be issued each year.
During the planned period of leave, CBC/Radio-Canada places the employee on an unpaid leave of absence. The Trustee administers payment(s) to the employee during his/her planned period of leave.
V. Making Changes to the DSLP
- Changes to salary deferral amounts and deferral periods are permitted per the following table:
Type of Change
Deadline to Submit Written Request to Shared Services Centre
Change to amount of salary being deferred *
(of preceding year)
Change takes effect January 1.
Extension of salary deferral period *
(of preceding year)
The end date of the deferred salary period cannot exceed December 31 of the 5th year of salary deferral.
Changes to the salary deferral period may impact the original time period for leave.
Suspension of salary deferral
4 weeks before suspension is to take place
Deferral can be suspended for a maximum of 12 months; however, such action may limit the right to defer the leave.
Requests to delay planned period of leave cannot be accommodated where it would result in a salary deferral beyond the maximum 6 year limit provided for in the income tax regulations.
*With the exception of SCRC employees. Refer to Tools – Deferred Salary Leave Plan (DSLP) -Overview.
- Either the employee or the Corporation is entitled to request a one-time postponement of the planned period of leave in exceptional circumstances. The planned period of leave must be completed by December 31 of the 7th year of enrollment in the DSLP.
- An employee is not permitted to take his/her leave earlier than the date indicated on the application form.
- Any of the above changes that affect the start date of the planned period of leave must be approved in accordance with Approvals for the Management of Human Resources.
VI. Withdrawal from the DSLP
- An employee is entitled to withdraw from the DSLP in the following circumstances:
- Resignation or termination from the Corporation;
- Transfer to a non-regular position; or
- Demonstration of financial or other hardship.
- An employee must request withdrawal from the DSLP and, if accepted, the Trustee pays the employee all outstanding deferred funds. This amount is taxed and the Trustee issues a T4.
- Withdrawal from the DSLP is automatic upon an employee’s death.
- Deferred Salary Leave Plan (DSLP) – Overview
- Deferred Salary Leave Plan (DSLP) – FAQ
All questions pertaining to the application of these Rules and Procedures should be referred to the Shared Services Centre.
- Appendix A – Group Benefits and Pension Participation During Specific Leave Periods