CD 2011-004

Subject: Changes to Struck Off Strength Codes for Retirement Purposes

April 20, 2011

1. Purpose

1.1. The purpose of this directive is to provide information to clients about the changes to the struck off strength (SOS) codes for retirement situations.

1.2. These changes are required following the centralization of the Pension Benefit Entitlements service as of April 11, 2011, to the Public Service Pension Centre in Shediac, New Brunswick.

2. Background

2.1. Prior to Release 2.0, compensation advisors were responsible for determining the pension entitlement of employees who terminate employment for retirement, and for using the appropriate code for the SOS transaction.

2.2. Retirement codes are currently linked to the pension entitlements:

• 13 - Illness
• 14 - Age (entitled to an immediate annuity)
• 15 - Elective (option for annual allowance or deferred annuity)

2.3. As the Pension Benefit Entitlements service is centralized to the Public Service Pension Centre, compensation advisors will no longer be responsible for establishing pension entitlements.

3. Policy

3.1. Pension benefit provisions, based on certain criteria, are described in the Public Service Superannuation Act (PSSA).

3.2. Responsibilities for the administration of government payroll, as well as the administration of the pension plan for federal public service employees, are under the Department of Public Works and Government Services Act.

3.3. On June 13, 2007, the Treasury Board Secretariat granted approval to proceed with the Centralization of Pension Services Delivery Project.

3.4. Because the SOS transaction remains linked to pension information, changes are required to the retirement SOS codes.

4. Procedures and Instructions

4.1. Upon implementation of the centralization of the Pension Benefit Entitlements service, only two SOS codes under retirement will be available.

• 13 - Illness
• 15 - Elective

Code 14 - Age (entitled to an immediate annuity) will be made obsolete as the compensation advisors will no longer be responsible for establishing the pension entitlements. The code will however remain in the Personnel-Pay Input Manual (PPIM) for historical purposes.

4.2. For all retirements, other then illness, code 15 (elective) must be used for the SOS transaction.

The title of code 15 remains "Elective", however the description will change to:

• Age 50 and over with two years or more of pensionable service.

4.3. Compensation advisors will continue to receive a copy of the notification form PWGSC-TPSGC 2012 from Health Canada indicating if retirement on the grounds of permanent disability is recommended or not.

When confirmation is received that retirement on the grounds of permanent disability is recommended, code 13 must be used for the SOS transaction.

4.4. This change only affects the SOS codes for retirement purposes. All other SOS codes (e.g. resignation [outside employment] and end of term) remain the same. The list of SOS codes used for the different termination situations are listed under field 48 of the PPIM Section 3-5-3.

4.5. The PPIM Section 3-5-3 will be updated to incorporate the relevant information contained in this directive.

5. Inquiries

5.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Reference(s): CJA 9001-15