CD 2013-002

Subject: Changes to the Terminable Allowance for the Research Group (RE)

February 18, 2013

1. Purpose

1.1. The purpose of this directive is to provide information on the modifications to the terminable allowance as described in the RE group's arbitral award rendered on November 7, 2012.

2. Policy

2.1. This arbitral award requires that each employee receives all pay adjustments within 120 calendar days from the date of signature. Consequently, as this provision forms part of the arbitral award, it must be implemented within the 120-day implementation period, which expires on March 6, 2013.

2.2. Effective November 7, 2012, the terminable allowance payable to all employees occupying a position in the Historical Research (HR) or the Defence Scientific Service (DS) groups is integrated into basic salary.

3. Procedures and Instructions

3.1. Effective November 7, 2012, the terminable allowance is integrated into the basic salary of employees occupying a position in the Historical Research (HR) or the Defence Scientific Service (DS) groups.

3.2. For employees who are currently receiving the terminable allowance, the compensation advisor will be required to recover the amounts overpaid. Since this could represent a significant amount, it is recommended that the amounts recovered be taken from the retroactivity payment.

3.3. The following sections provide instructions for processing the retroactivity, the recoveries and the procedures to stop the allowance.

3.3.1 Compensation advisors are responsible for processing all retroactivity by completing an "Entitlement Amend" (ENA 210 – Pay Action Code (PAC) 18A) transaction for dates prior to the signing date, and a "Revision" (REV – PAC 09) from the signing date. Please refer to the Pay Rate Implementation Bulletin (PRIB) PRIB 2013-002 for more details.

3.3.2. Compensation advisors are responsible of stopping the terminable allowance by completing an "Entitlement Stop" (ENS – PAC 18S) transaction with entitlement code 251, rate base 9 (Yearly), and the new rates effective November 7, 2012.

3.3.3. Compensation advisors are also required to process recoveries for every day that the allowance was paid in full following November 7, 2012, by completing an "Entitlement – one time recovery – closed period"  (ENR – PAC 18R) transaction. The calculation of the amount to be recovered is to be done manually by the compensation advisor based on the new rate of the allowance and the number of days the employee received the allowance between November 7, 2012 and the processing pay period.

3.4. The following table provides an example of the input requirements to process the retroactivity, stop the allowance and process the recoveries for full-time employees.

3.4.1. When completing the PAC 18R, the compensation advisor should enter "OV" in field 71. This will ensure that the recoveries are made directly from the supplementary revision payment and not from regular pay.

3.5. For pay input instructions, please refer to Personnel-Pay Input Manual (PPIM) sections PPIM 4-4-09, PPIM 4-4-18-4-1, PPIM 4-4-18-5-1, PPIM 4-4-18-5-2 and PPIM 5-9.

4. Inquiries

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

Reference(s): Entitlement Code 1G5, 9213-15