Deferred Salary Leave

Abstract:

A Deferred Salary Leave Plan is a legislated process to defer a portion of salary and the related income tax to finance an unpaid leave of absence.

There are significant administration needs that must be coordinated among the teacher, the employing board of education, a banking institution and all benefits administrators. In addition, the Canada Revenue Agency, through the Income Tax Act and the Income Tax Regulations, places a number of stipulations on a DSLP that must be followed in order for the teacher to benefit from deferring income to the year of leave. Teachers also should check any provisions in their local collective bargaining agreement for specific conditions for a DSLP which may be unique to their plan.

This summary contains general information only. In the event of a discrepancy in interpretation, the applicable legislation or collective bargaining agreement is the final authority.