Below is a letter that was sent to GVTA members in September, 2013.  It explains the changes to TRAF contributions.

 
Dear GVTA Member:

You may have noticed that, despite a 2% increase and a tax break on Blue Cross premiums, your September net pay was not much higher your August net pay.  This is likely due to the fact that your TRAF contribution for September was much higher than it was in August.  This increase is due to the way TRAF contributions are now calculated.

In the past, monthly TRAF contributions have not varied.  However, from now on,  monthly TRAF contributions will be based on the time worked during the month.  Therefore, in August and July of 2014, there will be no TRAF contributions and the contributions from September until June will be correspondingly higher to make up for this. 

This also means that September to June TRAF contributions will vary  because the time worked in each month is different.  Because of Christmas holidays, for example, December TRAF contributions will be smaller than those in September.  

Overall, the total TRAF contributions for the year will be according to the formula we are accustomed too.  (See the table below.) 

Bottom line:      Months with holidays = Less TRAF contributions (More net pay)

                        Months without holidays = More TRAF contributions (Less net pay)

TRAF has implemented this because of teachers taking short, unpaid leaves and pensions needing to be recalculated.

Yours truly,

Dale Martens

GVTA President

TABLE:  TRAF CONTRIBUTIONS FORMULA

Year (Effective Sept. 1)       2012      2013     2014       2015

Salary up to YMPE               7.3%       7.8%     8.3%        8.8%

Salary above YMPE              8.9%       9.4%     9.9%     10.4%

YMPE = Yearly Maximum Pensionable Earnings under the Canada Pension Plan. ($51,100 in 2013).