ARCHIVED CD 1997-008
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March 20, 1997
SUBJECT: Retroactive Processing for Basic Pay - Struck Off Strength and Temporarily Struck Off Strength (Phase 1)
1.1 The purpose of this directive is to provide information concerning enhancements to the Regional Pay System (RPS) namely the payments of Termination Entitlements and Deductions.
1.2 Phase 2 is the automation of final adjustments of Basic Pay and Allowances on Temporarily Struck Off Strength (T-SOS) and Struck Off Strength (SOS) accounts.
2.1 The enhancements to the RPS are part of a larger undertaking known as the Compensation Productivity Initiative (CPI).
3.1 Effective April 1,1997, changes to the RPS will be implemented to reflect the enhanced processes and procedures described herein.
3.2 The changes addressed are:
- Creation of a supplementary payment without pay office intervention when termination entitlement transactions are reported by departments;
- Ability by departments to collect termination deductions from termination entitlement supplementary payment;
- Automation of "Entitlement Commence" transactions reported on inactive accounts SOS;
- Demands on Third Party -Statutory Set-offs;
- Cash receipts.
3.3 With the automation of Termination Entitlements departments are now responsible for:
- Reporting amounts being transferred to an Registered Retirement Savings Plan (RRSP);
- Forwarding the RRSP payment directly to the Financial Institution;
- Reporting applicable tax exemption amounts as per Taxation Waiver letters;
- Retaining all supporting documentation.
3.4 When an account is SOS, termination entitlement (e.g. Severance Pay) transactions reported by departments will automatically create a supplementary payment without pay office intervention. Communication between the pay office and departments will be essential to ensure that outstanding termination deductions (e.g. Superannuation deficiencies) or overpayments have been collected.
The reporting of termination entitlements will be the last opportunity for departments to collect outstanding termination deductions or overpayments.
4.1 Three new on-line screens have been created for departmental use. The new screens are: Termination Entitlements (TEC), Termination Deductions (TED) and Cash Receipts (CRT). A Job Aid is attached to provide you with input examples.
4.2. Termination Entitlements (TEC)
A new "Termination Entitlements (TEC)" screen has been created for departments to report termination entitlements, such as Separation Benefit. Pay Action Code 71 on Public Works and Government Services Canada (PWGSC) - TPSGC 7340-1 will be used for batch input.
NOTE: If the SOS reason is "Death in Service", the termination entitlements transactions will not process and a message will be produced advising the pay office that the "Pay action must be handled manually".
Refer to Appendix A (attached) for a list of the termination entitlements that have been automated and that are accepted on the TEC screen.
Termination entitlements listed in Appendix A are no longer to be reported via the "Entitlement Commence (ENC)" on-line screen or with a Pay Action Code (PAC) 18C on a DSS-MAS 2517T or 2549, for batch input. The RPS will reject these transactions if they are reported using the above mentioned types of input.
Termination entitlements listed in Appendix B (attached) are to be reported via the "Entitlement Commence (ENC)" on-line screen or with a PAC 18C on a DSS-MAS 2517T or 2549, as is the current process.
Departments are now responsible for reporting amounts transferred to an RRSP. Deduction code 582 (Transfer to RRSP) should be used on the TEC screen to transfer all or a portion of the termination entitlement to an RRSP. PAC 77 582 on a PWGSC-TPSGC 7340-1 should be used for batch input. The system will now generate an RRSP payment entitlement code 120 from the RRSP deduction amount.
NOTE: Please refer to Compensation Directive 1995-27 which details the specific documents required for transfers to an RRSP and Income Tax Waivers.
Two new codes have been created for use on the TEC screen. The amount reported for these codes will provide a tax exemption at source. The new codes are: «395 -Tax Exemption Supplementary (Federal)« and «396 - Tax Exemption Supplementary (Quebec)«. A PAC 71 395 or 396 on a PWGSC-TPSGC 7340-1 will be used for batch input for the termination entitlements listed in Appendix A. A PAC 18C 395 or 396 will be used for batch input for termination entitlements listed in Appendix B.
4.3. Payment to an RRSP
An RRSP payment will be issued and identified on the payroll register as entitlement code 120 with the employee's name and a notation "FOR DEPOSIT TO RRSP ACCOUNT ONLY" and forwarded to the Department.
Departments will be responsible for the distribution of the RRSP cheques to the Financial Institution as specified by the employee. Departments must ensure that the RRSP cheques are not released to the employee. If an account has more than one Financial Institution or RRSP plan number to which payments are to be transferred, departments will report a separate 582 transaction for each payment.
NOTE: Any portion payable in cash to the employee will be issued on a separate cheque payable to the employee.
The RRSP deduction code 582 will be the last deduction taken from the Retiring Allowances payment. Therefore, outstanding deductions (e.g. deficiencies, overpayments) to be collected from the supplementary payment may reduce the expected amount that was to be transferred to an RRSP.
4.4. Cancellation of an RRSP Payment
To cancel a payment that has been transferred to an RRSP, the department is now required to input two transactions. Refer to Section Personnel Pay-Input Manual (PPIM) 4-4-19 for complete instructions.
4.5. Termination Deductions (TED)
A new Termination Deductions (TED) screen has been created for departments to report termination deductions such as Superannuation Deficiencies (code 581) that will be collected from a Termination Entitlement. A PAC 77 on a PWGSC-TPSGC 7340-1 will be used for batch input.
Outstanding deficiencies that the pay office was unable to collect from final salary will now be reported by departments using the TED screen. Refer to Appendix C (attached) for a list of the termination deductions that are accepted on the TED screen.
The pay office is responsible for communicating to departments the amounts and applicable codes to collect outstanding termination deductions.
It is essential that departments receive this information prior to reporting the termination entitlements.
If the termination deductions are not or cannot be collected, departments are to forward a memo to Superannuation Directorate outlining the amounts of the outstanding deficiencies for Superannuation and Supplementary Death Benefit.
NOTE: If the total amount of the deductions, excluding code 582, exceeds the termination entitlement payment, resulting in a negative entitlement, then ail of the transactions will reject. The department must determine the deductions to exclude (in priority order) to allow the payment to process and then resubmit their transactions.
4.6. Cash Receipts (CRT)
A new Cash Receipt (CRT) screen has been created to give departments the facility to report the receipt of cash or personal cheque from the employee.
A PAC 20 on a DSS-MAS 2517T or 2549 will be used for batch input, as is the current process.
Departments are to retain on file the official receipt of monies received from the employee to liquidate or reduce the overpayment.
4.7. Third Party Demand - Statutory Set-offs
The Salary Recovery Sub-set (SRS) on-line screen has been expanded to include a new "FED TAX ARREARS" field which allows to view the outstanding amount for a Third Party Demand - Tax Arrears code 597.
If an account has outstanding deficiencies relating to taxation arrears they must be collected by the department.
4.8. Entitlement Commence on an Inactive Account (SOS)
When creating a PAC 18C or using screen ENC on an SOS account departments are no longer required to complete "retroactivity fields 67/68 (H/D/W IND / # of H/D/W)", unless specified in Compensation Directive 1996-039.
4.9. Edits, Rejects and Warnings
Any new rejects and warnings generated as a result of the initiative have been included in PPIM Section 7-3-3-2.
4.10 All input instructions for these new processes are included in Personnel-Pay Input Manual amendments number 48 (volumes 1,11,111) and number 41 (volumes IV, V) which are dated February 1997.
5.1 Any request for information regarding the foregoing should be addressed to your PWGSC Compensation Services Office.
Original Signed by
Government Operational Service
Reference : CJA 9020-40-2
TERMINATION ENTITLEMENTS THAT ARE TO BE REPORTED USING THE "TEC" ON LINE SCREEN OR A PAC 71 ON A PWGSC-TPSGC 7340-1 FOR BATCH INPUT
|054 - Severance Pay||280 - Severance Pay|
|108 - Retiring Allowance||051 - Retiring Allowance|
|250 - Separation Benefit||279 - Separation Benefit|
|363 - Retention Payment||364 - Retention Payment|
|365 - Turnkey Payment||366 - Turnkey Payment|
|367 - Contracting Out Pay||368 - Contracting Out Pay|
|369 - Civilian Reduction Program||370 - Civilian Reduction Program|
|371 - Age and Service Allowance-Eligible||372 - Age and Service Allowance-Non Eligible|
|373 - Early Departure Incentive||374 - Early Departure Incentive|
|385 - Alternative Delivery Initiative Lump Sum||386 - Alternative Delivery Initiative Lump Sum|
|387 - Alternative Delivery Initiative Pension Lump Sum||388 - Alternative Delivery Initiative Pension Lump Sum|
|389 - Alternative Delivery Initiative Salary Top-up allowance||390 - Alternative Delivery Initiative Salary Top-up allowance|
|391 - Additional Salary Top-up Allowance||392 - Additional Salary Top-up Allowance|
TERMINATION ENTITLEMENTS THAT ARE TO BE REPORTED USING
THE "ENC" ON LINE SCREEN OR A PAC 18C ON A DSS-MAS 2517T OR
2549. FOR BATCH INPUT
- 029 - Leave- Payment in Lieu
- 073 - Vacation Pay of 4%,6% or 8%
- 449 - Vacation Pay 4% - SOS - House of Commons
- 451 - Vacation Pay 6% - SOS - House of Commons
TERMINATION DEDUCTIONS THAT ARE TO BE REPORTED USING THE "TED" ON LINE SCREEN OR A PAC 77 ON A PWGSC-TPSGC 7340-1 FOR BATCH INPUT
- 577 - Supn arrears
- 581 - Supn current - defic - high rate
- 586 - Supn def - no match
- 587 - Supn current - defic - no match
- 590 - Death benefit defic
- 597 - Federal tax arrears
- 605 - Supn current - defic - low rate
- 610 - NC Disability ins def
- 611 - NC Long term dis def
- 631 - NC LTD-mngt-cat arrears
- 752 - Disability ins def
- 754 - Long term dis def
- 852 - LTD-mngt-cat arrears
- 876 - Retirement Compensation Arrangement (RCA) def no-match
- 879 - RCA current defic
- 880 - RCA arrears
- Date modified: