CD 2014-012

Subject: Isolated Posts and Government Housing Directive (IPGHD)

Date: September 15, 2014

1. Purpose

1.1. purpose of this directive is to inform compensation advisors of changes to the National Joint Council's (NJC) Isolated Posts and Government Housing Directive (IPGHD).

2. Policy

2.1. Revocation of the Environment Allowance (EA)

As a result of the EA classification review, the following locations no longer qualify as isolated posts and have been deleted from Appendix A - Classification of Isolated Posts of the IPGHD and added to Appendix G - Special Locations as of February 1, 2014:

  • Fort Nelson, BC
  • Toad River, BC

As indicated in the Information Notice - Revocation of Environment Allowance (EA) for Fort Nelson and Toad River, British Columbia (BC), departments must provide written notice to each employee affected by the change.

2.2. Change in Classifications for the Environment Allowance (EA) and Living Cost Differential (LCD)

The EA and LCD classifications of a number of locations have been revised effective February 1, 2014. Details of the locations affected by the EA changes can be found in the Information Notice - Change in Environment Allowance (EA) Classification Levels, while the details of the locations affected by the LCD changes can be found in the Information Notice - Living Cost Differential (LCD) Survey Results for the Manitoba Region.

2.3. Rate Adjustment

The National Joint Council IPGHD Committee has approved a rate adjustment for the EA, LCD, Shelter Cost Differential (SCD) and Meals or Ration (MR) effective August 1, 2014. Information and links to the appendices with the revised rates are available in the Annual Update t the Isolated Posts and Government Housing Directive - Appendices B, C, I, K-1 and K-2 notice.

2.4. The allowances of the IPGHD do not form part of salary and are not to be used in calculating the 4% vacation pay or the premium pay in lieu of statutory holidays for part-time employees.

2.5. All allowances under the IPGHD are subject to income tax deductions, Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) contributions, Employment Insurance (EI) and Quebec Parental Insurance Plan  (QPIP) deductions. However, they are not subject to the Public Service Pension Plan (PSPP) contributions.

2.6. Please note that, for part-time employees, the Regional Pay System (RPS) will automatically prorate the IPGHD allowances mentioned in this directive.

2.7. For partial months of eligibility, all allowances are to be calculated in the same manner as salaries, i.e. based on compensated days.

3. Procedures and Instructions

3.1.Revocation of the EA

3.1.1. When a location is revoked, compensation advisors are required to reduce the amount of the EA by $100 per month until the EA is reduced to zero, starting on the first day of the fourth calendar month after the employee receives written notice. Compensation advisors are to use an Entitlement Amend transaction (ENA - Pay Action Code (PAC) 18A) with entitlement code 297 to amend the amount of the EA. Compensation advisors are to use an Entitlement Stop transaction (ENS - PAC 18S) to stop the allowance.

For additional information, refer to section 2.7 "Deletion of a Location or Revocation of an Allowance" in Part II - Designation and Paymentsof the IPGHD.

3.2. EA Classification Level Adjustment

3.2.1. Compensation advisors are to process the adjustment by using an Entitlement Amend transaction test (ENA - PAC 18A) with entitlement code 297.

3.2.2. For situations where the EA classification level was reduced, the amount shall be decreased by:

  • One-half of the amount of the decrease on the first day of the fourth calendar month after the month in which written notice was received; and
  • The balance of the amount of the decrease on the first day of the 13th calendar month after the month in which written notice was received.

3.3. LCD Classification Adjustment

3.3.1. Compensation advisors are to process the adjustment by using an Entitlement Amend transaction (ENA - PAC 18A) with entitlement code 101.

3.3.2. For situations where the classification level was increased, the compensation advisor must process the Entitlement Amend transaction (ENA - PAC 18A) effective February 1, 2014.

3.3.3. For situations where there is a reduction in the LCD classification level, the amount shall be decreased effective on the first day of the fourth calendar month after the month in which written notice was received.

3.4. Amendments to the EA, LCD, SCD and MR Rates

Compensation advisors are required to amend the ongoing rate for the EA (entitlement code 297), the LCD (entitlement code 101) and the SCD (entitlement code 046) by completing an Entitlement Amend transaction (ENA - PAC 18A), effective August 1, 2014. To amend the MR (deduction code 519), they are required to complete a Deduction Amend transaction (DEA – PAC 16A), effective August 01, 2014.

The IPGHD has been amended to reflect these changes:

3.5. Please refer to Personnel-Pay Input Manual (PPIM) sections PPIM 14-6-2, PPIM 14-6-3, PPIM 4-4-18-5-1, PPIM 4-4-18-6-1, PPIM 4-4-16-3 and  PPIM 14-5-2 for instructions on the pay actions mentioned above.

4. Inquiries

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

Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): ENT 046, 101, 297, DED 519 and CJA 9010-2