16. Interest on Retroactive Salary
The Division will pay interest on retroactive salary increases payable to employees covered by this Agreement. Such interest will be paid from the date the increase in salary is payable and on the gross amount of retroactive pay due less the amount of any statutory deduction for Canada Pension, Employment Insurance and Income Tax with respect to that pay and shall be calculated from the dates which the monies would have been due to the date of actual payment.
Interest shall be computed at the lesser of ten per centum (10%) per annum or the average rate at which the Division borrows funds during the twelve (12) month period preceding the calculation date.
If the Division has not borrowed funds during the preceding twelve (12) month period, then interest shall be computed at the lesser of ten per centum (10%) per annum or the rate equal to that paid by the Division Bank’s Non chequing Savings Account.