Letter of Understanding # 20 Over Range Protocol

Master Agreement Between the Government of the Province of Alberta and the Alberta Union of Provincial Employees

LETTER OF UNDERSTANDING # 20
OVER RANGE PROTOCOL

BETWEEN:

THE CROWN IN RIGHT OF ALBERTA
(The Employer)

- and -

THE ALBERTA UNION OF PROVINCIAL EMPLOYEES
(The Union)

Employees who, as of October 23, 2018, are paid a salary in excess of the normal maximum salary effective on or before March 31 of each year, shall be entitled to receive additional remuneration in recognition of subsequent negotiated increases according to the conditions set out below. These provisions shall not apply to Employees whose salary becomes in excess of the normal maximum salary after October 23, 2018.

For the purposes of this document, the term "salary in excess of the normal maximum salary" shall mean:

In respect of an employee occupying a position allocated to a class assigned to any Subsidiary Agreement, a salary which is greater than the job rate or greater than the highest period of the grade assigned to the class for the appropriate year.

The method of calculating the amount of the increase and the method of payment in respect of employees whose salaries remain over range in relation to the normal and newly negotiated rates of pay in Subsidiary Agreements shall be as outlined below:

The normal bi-weekly maximum salary as at April 1 of the Collective Agreement year multiplied by 26.1, minus the normal bi-weekly maximum salary as at March 31 of the Collective Agreement year multiplied by 26.1, shall be known as the negotiated increase. The amount of the negotiated increase divided by four will be the amount of the lump sum payments paid quarterly in lieu of any increase to bi-weekly salary. The lump sum payments will be made on the bi-weekly pay periods that include June 30, September 30, December 31, and March 31.

The method of calculating the amount of the increase and the method of payment in respect of employees who were receiving excess salary and whose salaries have been surpassed by the newly negotiated normal maximum applicable to the classification to which their position is allocated shall be as set out below:

An employee whose salary is surpassed by the normal and newly negotiated maximum for the class shall have their salary advanced to the newly negotiated maximum effective April 1, of the Collective Agreement year; and employees whose salaries are increased to meet the newly negotiated normal maximum shall also receive a lump sum payment in accordance with the following formula:
Value of negotiated increase minus the value of the employee's adjustment, adjusted for any time lost without pay.

In the event that an employee whose salary is in excess of the normal maximum terminates, or is reclassified or promoted during the period and is no longer over range, the Employee shall be entitled to the prorated portion of the annual payment. The entitlement shall be calculated according to the formula set out below:

Number of Work Days from April 1 of the year to

Termination/ Promotion/ Reclassification__

261 Days

X Applicable Annual Payment calculated above

Lump sum payments or prorated portions thereof shall not be deemed to be salary for the calculation of any other entitlement or benefit. However, such payments shall be considered as salary for purposes of the Public Service Pension Plan.

All remuneration paid to employees pursuant to this Letter of Understanding shall be subject to any legally required deductions.

Dated this 27th day of January, 2022.

Letter of Understanding # 20 Over Range Protocol

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