The agreement sets the stage for stability and sustainability for the next five years. It provides for a five-year term for collective agreements from September 1, 2007 to August 31, 2012. The agreement also provides for teacher pay increases related to salary, allowances, substitute pay and rates of pay. See Highlights of the Memorandum of Agreement in principle for more information on the agreement.
Government will permanently assume the $2.1 billion teachers’ portion of the pre-1992 unfunded pension liability. Had the existing funding structure remained, it would have cost taxpayers approximately $45 billion over the next 52 years to pay off the liability.
In order for the Memorandum of Agreement to come into effect on January 31, 2008, all 62 publicly-elected School Boards need to ratify new or revised collective agreements with the local Teacher Bargaining Unit by the deadline of January 31, 2008.