Local 88 has been working with Service Canada and GM Payroll to determine if there is any effect to members collecting EI, SUB or IMP.
We will update the membership when more information is available.
The following is for members to be aware of when the bonus is to be paid, deadlines for election to other accounts, who to contact and how it may possibly affect them.
$2000 Inflation Protection Bonus will be paid to eligible members Dec 15th
(less any applicable deductions; EI, CPP, any deductions in arrears i.e.: health care payments)
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All previous Election to RRSP (or other) are NULL and VOID
Members must follow the process below for this bonus
and for each bonus going forward
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Options to members for this bonus
- Cash with deductions (this is the default if no action taken)
- Election of bonus to RRSP, Tax free Savings Account or Non-Registered Savings Plan through Canada Life
- TFSA contributions are made with after-tax dollars, but income earned is tax sheltered, the NRSP is a non-tax- sheltered account.
For these options, contributions must be made in dollar amounts not in a percentage. They must not exceed the net of the $2000 minus mandatory deductions if no other income is earned in the pay period.
** RRSP (or other) contributions are ALL OR NOTHING**
Example: (numbers are for illustration purposes only)
A member elects to put $1800 to RRSP
- EI on Bonus $85
- CPP on Bonus $200
- Other deductions $100
Net amount remaining to deduct the RRSP from = $1615
- In that situation not enough remains to cover $1800 request, so all money will be paid on regular pay as cash with appropriate deductions (including Income Tax)
- Election for Bonus to RRSP (or other) will NOT OCCUR in this situation
If you wish to participate in Election of Bonus to RRSP (or other) you must call Canada Life (1-800-724-3402) or Log into your online account. Between Nov 21-Dec 7, 2022 (no exceptions)
Members that do not currently have an account (RRSP,TFSA or NRSP) with Canada Life and wish to enroll are asked to contact Canada Life 1-800-724-3402
or online no later than December 1, 2022 for account(s) set up.
Below is the a link to the process for account set up with Canada Life
and also company memo with further details.
Be aware that the deadline for new enrollment in the memo states November 18.
This deadline has been extended to December 1, 2022.
The online sign up is said to be the most efficient but both online and calling will work.
