The Vacation Purchase Plan (VPP) provides eligible employees with the opportunity to purchase 5 to 10 days of vacation on top of their current vacation allotment. While unpaid leaves already exist, they impact seniority / service accrual, vacation accrual, pension contributions and other benefits, whereas these consequences do not occur in the VPP.
The biggest benefit of the VPP is that the cost of the days off is spread throughout the entire year instead of occurring entirely in the pay period that the time off work is taken.
Effective April 1, 2020, VPP will again be offered to eligible full-time support and academic staff. All applications are subject to supervisory approval and will not be approved if you are ineligible or if operational needs cannot be met.
Employees who are not eligible for the VPP, or eligible employees who do not wish to participate in the plan, may have the opportunity to take from 1 to 10 days off without pay during the year under the Voluntary Days Off Program (VDOP) but the cost of those days will be deducted in the relevant pay period (i.e., not spread out evenly throughout the year).
NOTE: the combined total of days between VPP and VDOP cannot exceed 10 days per fiscal year.
Who is Eligible?
Full-time support staff who are in continuing positions (working full days, five days per week) whose appointments start on or before April 1 of the plan year and have no specified end date
Full-time employees in the Other Academics employment group whose appointment starts on or before April 1 of the plan year and ends on or after March 31
Post-doctoral fellows and research associates who are full time and whose appointment starts on or before April 1 of the plan year and ends on or after March 31
Note: All other eligible employees may still take from 1 to 10 days off in the year, but with the cost of the days being deducted in the relevant pay period.
Who is Not Eligible?
Employees in part-time appointments
Employees who start after April 1 of the plan year and or end before March 31
Employees on reduced appointments
Employees who have scheduled a leave of absence greater than one (1) month during the plan year, for example, maternity leave, or educational leave, or on sick leave prior to April 1 that extends into the plan year
Employees who have excessive vacation carry-over may not be approved
Application Process and Deadlines
February 21, 2020: Please fill out and submit the VPP form to your supervisor; supervisor to analyze applications, discuss plans with staff, approve or amend applications
March 6, 2020: Supervisor to submit Plan Forms to HR
April 1, 2020: HR will have processed the VPP forms; program to start
April 1, 2020 to March 31, 2021: duration of plan year. Each year, employees will need to submit a program application.
Deduction per pay period depends on the number of days you will take (5 through 10 days).
5 days: 1.923077, rounded to 1.92%
6 days: 2.307692 rounded to 2.30%
7 days: 2.692308 rounded to 2.69%
8 days: 3.076923 rounded to 3.07%
9 days: 3.461538 rounded to 3.46%
10 days: 3.846154 rounded to 3.84%
The deduction is applied to base compensation. The deduction will be in equal installments from April 1 to March 31 the following year
Deductions do not apply to overtime
Pensionable earnings, benefits coverage, service and vacation accrual are not affected by deductions
All Statutory, Canada Pension Plan, Employment Insurance and Tax deductions are calculated on salary less the % deductions.
An employee has been approved for 10 days in the VPP. They work 35 hours/week, 70 hours biweekly.
Their hourly rate is $25.00; or, $1750.00 biweekly – normal gross pay
70 hours x 3.84% = 2.68* hours deducted
2.68 x 25.00/hour) = $67.25 deducted from biweekly gross
$1750.00 – 67.25 = $1682.75 actual gross pay
*we round down with the calculation
Normal gross pay: $1750.00 biweekly Actual gross pay: $1682.75 biweekly
Pension contributions are based on $1750.00
Group benefits that calculate based on salary, such as Long Term Disability and life insurance are based on $1750.00 normal gross
Group benefits that calculate based on monthly premium, such as supplementary health and dental will not be impacted
Income tax, CPP, EI based on $1682.75 actual gross
Union dues (if applicable) based on $1682.75 actual gross
Questions? Please contact your HR Consultant or HR Help Desk at 204-474-9400.