Common use of Surplus/Reserves Clause in Contracts

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together:

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible surpluses and available surpluses reserves remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA OSSTF ELHT will shall be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust ELHT 90 days after all Teachers’ Federations, Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions employee groups have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor teachers’ separate accounts account is the total OCEW OSSTF Teachers’ surpluses and Unifor eligible and available surpluses reserves multiplied by an amount equal to OCEW and Unifor OSSTF represented teachers’ employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible surpluses and available surpluses will reserves shall be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor Teachers’ separate accounts account is the total OCEW OSSTF teachers’ surpluses and Unifor eligible and available surpluses reserves (calculated in B.i B.i) above) multiplied by an amount equal to OCEW and Unifor OSSTF represented employeesteachers’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses and reserves are to be subtracted from the total surpluses and reserves. The share of the separately tracked surpluses and reserves is to be transferred to the OSSTF ELHT Teachers’ separate account as per the process described in section A above. ii. The remaining surpluses and reserves are then distributed based on the process described in section B above. The total surpluses and reserves amount to be allocated in sections A, B and C, shall be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and claims fluctuation reserve (CFR) shall remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. Once released, those reserves shall form part of the surplus available for distribution. School boards with deficits shall recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and ▇▇▇▇ shall be the responsibility of the school board. The school boards shall not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OSSTF ELHT is provided to school boards. Upon receipt by the OSSTF ELHT of all surplus amounts indicated in A, B, and C of this Memorandum of Understanding, OSSTF agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board- owned defined contribution plans. In the case of a dispute regarding surplus amounts, such dispute shall be forwarded to the Central Dispute Resolution committee.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and ▇▇▇▇. Any portion of the deficit remaining in excess of the CFR and ▇▇▇▇ will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. HISTORICAL APPENDIX OF CENTRAL TERMS – FOR REFERENCE ONLY‌ RE: Benefits‌‌‌ The parties agree that, once all Employees to whom this Memorandum of Settlement of the Central Terms applies become covered by the Employee Life and Health Trust contemplated by this Letter of Agreement (LOA), all references to life, health and dental benefits in the applicable local collective agreement shall be removed from that local agreement. The OCEW shall request inclusion into an education sector Employee Life and Health Trust (ELHT), (hereinafter, the “Trust”) within fifteen (15) days of central ratification. Should OCEW fail to reach agreement, consistent with the parameters contained herein, by February 29, 2016, the parties to this LOA will meet to consider other education sector Trust options in the Province of Ontario. The parties to this LOA agree to comply with the Trust’s requirements. If the Trust agrees to accept the request for inclusion, the provisions of the agreement between OCEW and the Trust shall be reflected in the participation agreement. The provisions contained herein shall be applicable to OCEW within the Trust. The Participation Date for OCEW shall be no earlier than September 1, 2016 and no later than August 31, 2017 and may vary by Board. The parties agree that there are a number of governance options, of which one governance option is set out in 1.0.0 below.

Surplus/Reserves. All eligible surpluses and available surpluses reserves remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA OSSTF ELHT will be allocated between the school board School Board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Teachers’ Federations, Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions employee groups have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor Education Workers’ separate accounts account is the total OCEW OSSTF/FEESO Education Workers’ surpluses and Unifor eligible and available surpluses reserves multiplied by an amount equal to OCEW and Unifor OSSTF/FEESO represented Education Workers’ employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards School Boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible surpluses and available surpluses reserves will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor Education Workers’ separate accounts account is the total OCEW OSSTF/FEESO Education Workers’ surpluses and Unifor eligible and available surpluses reserves (calculated in B.i B.i. above) multiplied by an amount equal to OCEW and Unifor OSSTF/FEESO represented employeesEducation Workers’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards School Boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses and reserves are to be subtracted from the total surpluses and reserves. The share of the separately tracked surpluses and reserves is to be transferred to the OSSTF ELHT Education Workers’ separate account as per the process described in section A above. ii. The remaining surpluses and reserves are then distributed based on the process described in section B above. The total surpluses and reserves amount to be allocated in sections A, B and C, will be based on the School Board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All School Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. Once released, those reserves will form part of the surplus available for distribution. School Boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the School Board. The School Boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OSSTF ELHT is provided to School Boards. Upon receipt by the OSSTF ELHT of all surplus amounts indicated in A, B, and C of this Memorandum of Understanding, OSSTF/FEESO agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. In the case of a dispute regarding surplus amounts, such dispute shall be forwarded to the Central Dispute Resolution committee.

Surplus/Reserves. All eligible surpluses and available surpluses reserves remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA OSSTF ELHT will shall be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust ELHT 90 days after all Teachers’ Federations, Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions employee groups have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor Teachers’ separate accounts account is the total OCEW OSSTF Teachers’ surpluses and Unifor eligible and available surpluses reserves multiplied by an amount equal to OCEW and Unifor OSSTF represented teachers’ employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible surpluses and available surpluses will reserves shall be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible surpluses and available surplus reserves to be transferred to the OECTA OSSTF ELHT - OCEW and Unifor Teachers’ separate accounts account is the total OCEW OSSTF teachers’ surpluses and Unifor eligible and available surpluses reserves (calculated in B.i B.i) above) multiplied by an amount equal to OCEW and Unifor OSSTF represented employeesteachers’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses and reserves are to be subtracted from the total surpluses and reserves. The share of the separately tracked surpluses and reserves is to be transferred to the OSSTF ELHT Teachers’ separate account as per the process described in section A above. ii. The remaining surpluses and reserves are then distributed based on the process described in section B above. The total surpluses and reserves amount to be allocated in sections A, B and C, shall be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) shall remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. Once released, those reserves shall form part of the surplus available for distribution. School boards with deficits shall recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and ▇▇▇▇ shall be the responsibility of the school board. The school boards shall not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OSSTF ELHT is provided to school boards. Upon receipt by the OSSTF ELHT of all surplus amounts indicated in A, B, and C of this Memorandum of Understanding, OSSTF agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board- owned defined contribution plans. In the case of a dispute regarding surplus amounts, such dispute shall be forwarded to the Central Dispute Resolution committee. The parties and the Crown acknowledge, as per the Ministry memo issued to school boards on February 2, 2021, titled Temporary Certificate of Qualification and Registration that individuals retained into positions covered by this Collective Agreement through the use of the temporary certificate will be represented by OSSTF and covered under the Collective Agreement. As disclosed on July 15, 2022, the Crown is exploring options to identify pathways for Indigenous Language Educators to be certified language teachers. Individuals who are certified under this new pathway and employed in positions covered by this collective agreement shall be represented by OSSTF and covered under this collective agreement. In accordance with the policy disclosure letter dated March 7, 2023, and the announcement on March 8, 2023, the Crown is in the process of developing an accelerated apprenticeship pathway starting in Grade 11 to help students enter the skilled trades faster. OPSBA and OSSTF shall be invited to participate in a consultation on this matter. Following the consultation, the Crown shall meet with OSSTF and OPSBA prior to the implementation of an accelerated apprenticeship pathway. OPSBA and OSSTF shall subsequently meet to discuss the implementation of the accelerated apprenticeship pathway and the collection of relevant data. Either Party may invite the Crown to participate. OPSBA agrees to communicate to school boards by November 30, 2023, regarding EI and SEB benefits, that by January 1, 2026, the obligation outlined in Memorandum 2018: B05 - Employment Insurance (EI) Waiting Period and Supplementary Employment Benefits shall be in place. Algoma DSB 235,626 242,695 249,369 255,604 128,479 132,333 135,972 139,372 Avon Maitland DSB 322,310 331,979 341,109 349,636 91,433 94,176 96,766 99,185 Bluewater DSB 290,621 299,339 307,571 315,260 51,055 52,587 54,033 55,384 DSB of Niagara 679,012 699,382 718,615 736,581 451,105 464,638 477,416 489,351 DSB Ontario North East 191,516 197,262 202,686 207,753 49,498 50,983 52,385 53,695 Durham DSB 1,213,424 1,249,827 1,284,197 1,316,302 569,129 586,203 602,324 617,382 Grand Erie DSB 506,071 521,253 535,588 548,978 311,431 320,774 329,596 337,835 Greater Essex County DSB 673,378 693,579 712,653 730,469 151,871 156,427 160,729 164,747 Halton DSB 1,007,055 1,037,267 1,065,792 1,092,437 583,376 600,877 617,401 632,836 ▇▇▇▇▇▇▇▇-▇▇▇▇▇▇▇▇▇ DSB 839,601 864,789 888,571 910,785 474,747 488,989 502,436 514,997 ▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇ ▇▇▇▇▇▇ DSB 298,327 307,277 315,727 323,620 90,279 92,988 95,545 97,933 Kawartha Pine Ridge DSB 580,218 597,624 614,059 629,410 299,279 308,257 316,734 324,653 Keewatin-▇▇▇▇▇▇▇▇ DSB 155,054 159,706 164,098 168,200 5,417 5,579 5,733 5,876 Lakehead DSB 191,472 197,216 202,640 207,705 131,633 135,582 139,310 142,793 Lambton Kent DSB 433,193 446,189 458,459 469,921 153,491 158,095 162,443 166,504 Limestone DSB 385,691 397,262 408,186 418,391 404,646 416,785 428,247 438,953 Near North DSB 220,973 227,602 233,861 239,708 100,475 103,490 106,336 108,994 Ottawa-Carleton DSB 1,242,514 1,279,789 1,314,984 1,347,858 1,119,628 1,153,216 1,184,930 1,214,553 Peel DSB 2,258,901 2,326,668 2,390,651 2,450,417 1,273,158 1,311,352 1,347,415 1,381,100 Rainbow DSB 286,996 295,606 303,735 311,328 110,326 113,635 116,760 119,679 Rainy River DSB 79,082 81,454 83,694 85,787 - - - - Renfrew County DSB 213,869 220,286 226,343 232,002 100,948 103,976 106,836 109,506 Simcoe County DSB 906,533 933,729 959,406 983,391 492,381 507,152 521,099 534,126 Superior-Greenstone DSB 55,795 57,469 59,050 60,526 293 302 310 318 Thames Valley DSB 1,282,937 1,321,425 1,357,764 1,391,708 943,046 971,338 998,049 1,023,001 Toronto DSB 4,033,782 4,154,796 4,269,052 4,375,779 4,354,866 4,485,512 4,608,864 4,724,085 Trillium Lakelands DSB 330,655 340,575 349,940 358,689 195,017 200,867 206,391 211,551 Upper Canada DSB 529,032 544,903 559,888 573,885 488,840 503,505 517,351 530,285 Upper Grand DSB 606,760 624,963 642,149 658,203 279,895 288,292 296,220 303,626 Waterloo Region DSB 1,054,893 1,086,540 1,116,420 1,144,330 313,739 323,151 332,038 340,339 York Region DSB 2,051,904 2,113,461 2,171,581 2,225,870 1,085,561 1,118,128 1,148,877 1,177,599 THE CROWN IN RIGHT OF ONTARIO, AS REPRESENTED BY THE MINISTER OF EDUCATION 1. The Parties, being parties to a Voluntary Binding Interest Arbitration Agreement executed on August 25, 2023 (the “VBIA Agreement”) as Appendix B to a Memorandum of Agreement of the same date, have reached an agreement on certain matters within the scope of central collective bargaining in respect of teachers’ bargaining units represented by the Federation (that is, all bargaining units described in subsection 10(4) of the School Boards Collective Bargaining Act, 2014). 2. The Parties agree that section 5 of the VBIA Agreement applies to the central table for teachers’ bargaining units. The Memorandum of Agreement dated October 25, 2023 shall form a full and final resolution of the matters within the scope of central bargaining, save for the following outstanding and unresolved matters to be determined by an interest arbitration board in accordance with Article 5b(ii) of the VBIA Agreement: a. Salary, Wages & Other Direct Compensation - including Daily Occasional Teachers

Surplus/Reserves. All eligible and available surpluses and reserves remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans benefitplans to the OECTA ETFO ELHT will be allocated between the school board School Board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Teachers’ Federations, Central Employee Workers’ unions or council of unions, Teachers’ Federations, ,and other unions employee groups have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus surpluses and reserves to be transferred to the OECTA ETFO ELHT - OCEW and Unifor Teachers’ separate accounts account is the total OCEW and Unifor thetotal ETFO Teachers’ eligible and available surpluses and reserves multiplied by an amount equal to OCEW and Unifor ETFO represented Teachers’ employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards School Boards to the ministry for the forthe 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses and reserves will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus surpluses and reserves to be transferred to the OECTA ETFO ELHT - OCEW and Unifor Teachers’ separate accounts account is the total OCEW and Unifor ETFO Teachers’ eligible and available surpluses and reserves (calculated in B.i B.i. above) multiplied by an amount equal to OCEW and Unifor ETFO represented employeesTeachers’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards School Boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses and reserves are to be subtracted from the total eligible and available surpluses and reserves. The share of the separately tracked surpluses and reserves is to be transferred to the ETFO ELHT Teachers’ separate account as per the process described in section A above. ii. The remaining eligible and available surpluses and reserves are then distributed based on the process described in section B above. The total surpluses and reserves amount to be allocated in sections A, B and C, will be based on the School Board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All School Board reserves for Incurred But Not Reported (“IBNR”) claims and CFR will remain with the existing carriers until those reserves are released by the carriers basedon the terms of existing contracts. School Boards with deficits will recover the amount from their CFR and ▇▇▇▇. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibilityof the School Board. The School Boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the ETFO ELHT is provided to School Boards. Upon receipt by the ETFO ELHT of all surplus amounts indicated in A, B, and C of this Memorandum of Understanding, ETFO agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. . For policies where employee groups were tracked separately: i. : The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. . For policies where multiple employee groups were pooled together: i. : The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. . For policies where employee groups were tracked separately and pooled together:: Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and ▇▇▇▇. Any portion of the deficit remaining in excess of the CFR and ▇▇▇▇ will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and ▇▇▇▇. Any portion of the deficit remaining in excess of the CFR and ▇▇▇▇ will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. The parties agree that, once all Employees to whom this Memorandum of Settlement of the Central Terms applies become covered by the Employee Life and Health Trust contemplated by this Letter of Agreement (LOA), all references to life, health and dental benefits in the applicable local collective agreement shall be removed from that local agreement. The OCEW shall request inclusion into an education sector Employee Life and Health Trust (ELHT), (hereinafter, the “Trust”) within fifteen (15) days of central ratification. Should OCEW fail to reach agreement, consistent with the parameters contained herein, by February 29, 2016, the parties to this LOA will meet to consider other education sector Trust options in the Province of Ontario. The parties to this LOA agree to comply with the Trust’s requirements. If the Trust agrees to accept the request for inclusion, the provisions of the agreement between OCEW and the Trust shall be reflected in the participation agreement. The provisions contained herein shall be applicable to OCEW within the Trust. The Participation Date for OCEW shall be no earlier than September 1, 2016 and no later than August 31, 2017 and may vary by Board. The parties agree that there are a number of governance options, of which one governance option is set out in 1.0.0 below.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-2014- 15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-co- share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-co- share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. The parties agree that, once all Employees to whom this Memorandum of Settlement of the Central Terms applies become covered by the Employee Life and Health Trust contemplated by this Letter of Agreement (LOA), all references to life, health and dental benefits in the applicable local collective agreement shall be removed from that local agreement. The OCEW shall request inclusion into an education sector Employee Life and Health Trust (ELHT), (hereinafter, the “Trust”) within fifteen (15) days of central ratification. Should OCEW fail to reach agreement, consistent with the parameters contained herein, by February 29, 2016, the parties to this LOA will meet to consider other education sector Trust options in the Province of Ontario. The parties to this LOA agree to comply with the Trust’s requirements. If the Trust agrees to accept the request for inclusion, the provisions of the agreement between OCEW and the Trust shall be reflected in the participation agreement. The provisions contained herein shall be applicable to OCEW within the Trust. The Participation Date for OCEW shall be no earlier than September 1, 2016 and no later than August 31, 2017 and may vary by Board. The parties agree that there are a number of governance options, of which one governance option is set out in 1.0.0 below.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-2014- 15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans. HISTORICAL APPENDIX OF CENTRAL TERMS – FOR REFERENCE ONLY‌ RE: Benefits‌‌‌ The parties agree that, once all Employees to whom this Memorandum of Settlement of the Central Terms applies become covered by the Employee Life and Health Trust contemplated by this Letter of Agreement (LOA), all references to life, health and dental benefits in the applicable local collective agreement shall be removed from that local agreement. The OCEW shall request inclusion into an education sector Employee Life and Health Trust (ELHT), (hereinafter, the “Trust”) within fifteen (15) days of central ratification. Should OCEW fail to reach agreement, consistent with the parameters contained herein, by February 29, 2016, the parties to this LOA will meet to consider other education sector Trust options in the Province of Ontario. The parties to this LOA agree to comply with the Trust’s requirements. If the Trust agrees to accept the request for inclusion, the provisions of the agreement between OCEW and the Trust shall be reflected in the participation agreement. The provisions contained herein shall be applicable to OCEW within the Trust. The Participation Date for OCEW shall be no earlier than September 1, 2016 and no later than August 31, 2017 and may vary by Board. The parties agree that there are a number of governance options, of which one governance option is set out in 1.0.0 below.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and ▇▇▇▇. Any portion of the deficit remaining in excess of the CFR and ▇▇▇▇ will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans.

Surplus/Reserves. All eligible and available surpluses remaining in board-owned defined benefit and board-owned defined contribution plans as a result of the transfer of OCEW and Unifor benefit plans to the OECTA ELHT will be allocated between the school board and the employees. The employees’ share is to be transferred to the applicable Trust 90 days after all Central Employee Workers’ unions or council of unions, Teachers’ Federations, and other unions have signed their respective Agreement on Central Terms or other agreements with this process. A. For policies where employee groups were tracked separately: i. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. B. For policies where multiple employee groups were pooled together: i. The total eligible and available surpluses will be allocated to each employee group based on the total paid premiums or claims costs of each group based on information provided to the ministry for the 2014-15 school year. ii. The share of the total eligible and available surplus to be transferred to the OECTA ELHT - OCEW and Unifor separate accounts is the total OCEW and Unifor eligible and available surpluses (calculated in B.i above) multiplied by an amount equal to OCEW and Unifor represented employees’ pro rata share of employee premiums based on the employees’ premiums based on the employees’ co-share payment (including chargebacks for employee premiums) of benefits as reported by school boards to the ministry for the 2014-15 school year. C. For policies where employee groups were tracked separately and pooled together: i. Separately tracked surpluses are to be subtracted from the total eligible and available surpluses. The share of the separately tracked surpluses is to be transferred to the OECTA ELHT – OCEW and Unifor separate accounts as per the process described in section A above. ii. The remaining eligible and available surpluses are then distributed based on the process described in section B above. The total surplus amount to be allocated in sections A, B and C, will be based on the school board’s final surplus balance as reported by the boards’ insurance carriers or, in the case of board-owned defined contribution plans, the boards’ financial systems. All school board reserves for Incurred But Not Reported (“IBNR”) claims and Claims Fluctuation Reserve (“CFR”) will remain with the existing carriers until those reserves are released by the carriers based on the terms of existing contracts. School boards with deficits will recover the amount from their CFR and IBNR. Any portion of the deficit remaining in excess of the CFR and IBNR will be the responsibility of the school board. The school boards will not make any withdrawal, of any monies, from any health care benefit plan reserve, surplus and/or deposit until direction by the ministry on the distribution of surpluses/reserves to the OECTA ELHT - OCEW and Unifor separate accounts is provided to school boards. Upon receipt by the OECTA ELHT – OCEW and Unifor separate accounts of all surplus amounts indicated in sections A, B, and C of this Memorandum of Understanding, OCEW agrees to withdraw all central and local grievances related to eligible and available surpluses remaining in board-owned defined benefit and board- owned defined contribution plans.