ARCHIVED CD 1999-005

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Appendix "A"

Appendix "B"
February 10, 1999

SUBJECT: Revised Work Force Adjustment Policies

1. PURPOSE

1.1 The purpose of this directive is to advise departments of the Work Force Adjustment (WFA) policies that are in effect and to introduce two new entitlement codes and a new leave without pay (LWOP) code to implement the new policies.

1.2 In this text, use of the masculine is generic and applies to both men and women.

2. BACKGROUND

2.1 As you are aware, the Early Retirement Incentive Program (ERI) ended on March 31, 1998, and the Early Departure Incentive Program (EDI) ended on June 23, 1998. The Workforce Adjustment Policies were therefore reviewed by Treasury Board, the National Joint Council and Bargaining Agents.

This Compensation Directive should be read in conjunction with Compensation Directive 1996-037 dated September 6, 1996, and Services Pay Directive 1989-143(39) dated November 9, 1989, as well as Work Force Adjustment Directive 1996 (for members of the Social Science Employees Association), Work Force Adjustment Directive 1998, Work Force Adjustment Appendix to the Public Service Alliance of Canada collective agreements and the Executive Employment Transition Policy.

3. POLICY

3.1 On June 23, 1998, the Treasury Board Secretariat, the National Joint Council and Bargaining Agents reached an agreement on amendments to the Work Force Adjustment Directive (WFAD) 1996. However, two bargaining agents, the Social Science Employees Association (SSEA) and the Public Service Alliance of Canada (PSAC) have opted out.

Therefore, the WFAD 1996, as amended on July 16, 1996, only applies to employees represented by SSEA. The WFA entitlements have remained the same.

The Work Force Adjustment Appendix (WFAA) to PSAC Collective Agreements which was agreed to by Treasury Board and PSAC on August 29, 1998, applies to employees represented by PSAC.

The WFAD 1998 that came into force on June 23, 1998, as amended on December 16, 1998, applies to members of the remaining bargaining agents.

The Executive Employment Transition Policy (EETP) that was effective from September 1, 1992, until March 31, 1995, was reinstated effective April 1, 1998. This policy applies to members of the Executive Group, and certain senior excluded levels of other occupational groups.

3.2 There are two new entitlement options and a new LWOP reason included in the WFAD 1998 and the WFAA.

3.2.1 The Transition Support Measure (TSM) is a cash payment, based on an employee's years of service in the Public Service (see Appendix A). Employees choosing this option must resign but will be considered to be laid-off for purposes of severance pay.

3.2.2 The Education Allowance is the TSM payment (see above) plus a separate payment of not more than $7000 for reimbursement of receipted expenses for tuition from a learning institution and costs of books and mandatory equipment.

Employees may resign from the public service but be considered to be laid-off for severance pay purposes on the date of their departure; or delay their departure date and go on LWOP for a maximum period of two years, while attending the learning institution. The TSM shall be paid in one or two lump-sum amounts over a maximum two-year period. During this period, employees may continue to be public service benefit plan members and contribute both employer and employee share to the benefits plans and the Public Service Superannuation Plan. At the end of the two-year leave without pay period, unless the employee has found alternate employment in the Public Service, the employee will be laid off in accordance with the Public Service Employment Act.

4. PROCEDURES/INSTRUCTIONS

4.1 The particulars of the new entitlement codes (also used for EETP since the policy came into force) payable under the WFAD 1998 and the WFAA are as follows:

4.1.1 Code 365 - TRANSITION SUPPORT MEASURE (TSM) OR PAYMENTS IN LIEU OF FOREGONE BENEFITS - ELIGIBLE

Code 365 is to be used to requisition that portion of the entitlement which is eligible to be transferred to a Registered Retirement Savings Plan (RRSP) or to a Registered Pension Plan (RPP).

Code 366 - Transition Support Measure (TSM) or Payments in Lieu of forgone Benefits - NON ELIGIBLE

Code 366 is to be used to requisition that portion of the entitlement which exceeds the established limits for transfer to an RRSP or to an RPP. This payment is subject to income tax deductions.

4.1.2 Code 367 - TSM EDUCATION ALLOWANCE OR COMPENSATION FOR PENSION REDUCTION - ELIGIBLE

Code 367 is to be used to requisition that portion of the TSM entitlement or compensation for pension reduction which is eligible to be transferred to an RRSP or to an RPP.

Code 368 - TSM EDUCATION ALLOWANCE OR COMPENSATION FOR PENSION REDUCTION - NON ELIGIBLE

Code 368 is to be used to requisition that portion of the TSM entitlement or compensation for pension reduction which exceeds the established limits for transfer to an RRSP or to a RPP. This payment is subject to income tax deductions.

Code 242 - TSM EDUCATION ALLOWANCE - LWOP

Code 242 is to be used to requisition that portion of the TSM entitlement when paid during the LWOP period. This allowance is not considered a retiring allowance; therefore, it is subject to income tax, Canada/Québec Pension Plan and Employment Insurance according to the Income Tax Act.

LEAVE WITHOUT PAY

Leave without Pay reason code "L - Other Reasons" is to be used for those employees who delay their departure date and opt for leave without pay for a maximum period of two years, while attending a learning institution.

Code 239 - REIMBURSEMENT OF TUITION FEES AND BOOKS With respect to the Education Allowance the current entitlement code 239 (tuition fees) is to be used for requesting the amount of not more than $7,000.

4.1.3 Full details of these payments are included in section 6.3 of the revised WFAD 1998 and the WFAA.

4.1.4 New entitlement codes 365, 366, 367 and 368 are operational in the Regional Pay System. The input requirements for these new codes are identical to current entitlement codes 054 (Severance Pay) and 051 (Retiring Allowance non-eligible).

New entitlement code 242 is operational in the Regional Pay System. The input requirements for this new code is lump sum with the effective from date being the start of continuous service date and the effective to date being the effective start date of the Temporarily Struck Off Strength (TSOS) period.

4.1.5 Current entitlement codes 108 (Retiring Allowance - Transferable) and 051 (Retiring Allowance Non-Transferable) are to be used for requesting pay in lieu of unfulfilled surplus period as provided for in sections 6.2 of the WFAD 1996, and, section 6.3 of the WFAD 1998 and the WFAA, as well as section 4.1.1 of the EETP.

The attached Appendix "B" provides a revised list of entitlement codes for payments made under the WFAD 1996, the WFAD 1998, the WFAA, the EETP. Also included are the EDI codes which may be necessary even though the program expired on June 23, 1998.

4.1.6 Care should be taken to ensure that the appropriate entitlement codes are utilized. The proper codes must be used whether or not the employee requests a transfer of funds to an RRSP or to an RPP.

4.1.7 If a new or separate line object is to be assigned by a department in the department's accounting records to identify payments made with codes 242, 365, 366, 367, or 368, the Financial and Reporting Products Directorate (address below) must be advised of the line object allocated in order that the pay expenditure control file may be updated accordingly.

Financial and Reporting Products Directorate
11-B-1, Phase III
Place du Portage
Hull, Quebec
KlA OS5

5. INQUIRIES

5.1 Any request for information regarding the foregoing should be addressed to your Public Works and Government Services Canada Compensation Office.

Original Signed by
P. Charko

P. Charko
Director General
Compensation Sector
Government Operational Service

Reference: CJA 9015-24
DEDENT 242, 365, 366, 367, 368

Appendix "A"

Years of Service in the Public Service	Transition Support Measure (TSM) (Payment in weeks'pay)
0	10
1	22
2	24
3	26
4	28
5	30
6	32
7	34
8	36
9	38
10	40
11	42
12	44
13	46
14	48
15	50
16	52
17	52
18	52
19	52
20	52
21	52
22	52
23	52
24	52
25	52
26	52
27	52
28	52
29	52
30	49
31	46
32	43
33	40
34	37
35	34
36	31
37	28
38	25
39	22
40	19
41	16
42	13
43	10
44	07
45	04

For indeterminate seasonal and part-time employees, the TSM will be pro-rated in the same manner as severance pay under the terms of the collective agreement.

Severance pay provisions of the collective agreement are in addition to the TSM.

Appendix "B"

LIST OF ENTITLEMENT CODES FOR PAYMENTS UNDER THE WFAD, WFAA, EETP, AND EDI POLICIES

Code	TITLE	CODE AUTHORITY	DESCRIPTION
051	Retiring Allowance Non-transferable	Section 6.2 and 7.6 of WFAD 1996; Section 6.3 of WFAD 1998 and WFAA Section 4.1.1 of EETP	Pay in lieu of unfulfilled surplus period Payment in lieu of notice
108	Retiring Allowance Eligible	Section 6.2 and 7.6 of WFAD 1996; Section 6.3 of WFAD 1998 and WFAA Section 4.1.1 of EETP	Pay in lieu of unfulfilled surplus period Payment in lieu of notice
242	Transition Support Measure (TSM) Education Allowance	Section 6.3 of WFAD 1998 and WFAA	The employee delayed the departure date and went on Leave without Pay while attending a learning institution. Transition Support Measure (TSM) cash payment, option c) plus an amount of not more than $7000 for tuition fees, books or equipment. If the TSM is paid after the LWOP period, meaning the employee has terminated employment use codes 367 or 368.
250	Separation Benefit or Alternative Lump Sum Payment Eligible	Section 6.3 of WFAD 1996 Section 4.3 of EETP	Separation benefit Alternative settlement of up to 15% of base salary
279	Separation Benefit or Alternative Lump Sum Payment Non-eligible	Section 6.3 of WFAD 1996 Section 4.3 of EETP	Separation benefit Alternative settlement of up to 15% of base salary
363	Retention Payment Transferable	Sections 6.4 to 6.7 and 7.6 of WFAD 1996; Section 6.4 and 7.6 of WFAD 1998 and WFAA	Retention payment: total facility closure, relocation of work units, and alternative delivery initiative
364	Retention Payment Non-transferable	Sections 6.4 to 6.7 and 7.6 of WFAD 1996; Section 6.4 and 7.6 of WFAD 1998 and WFAA	Retention payment: total facility closure, relocation of work units, and alternative delivery initiative
365	Transition Support Measure (TSM) or Payment in Lieu of Foregone Benefits Eligible	Section 6.3 of WFAD 1998 and WFAA Section 4.1.2 of EETP	Transition Support Measure cash payment, resignation option b) Payment in lieu of foregone benefits
366	Transition Support Measure (TSM) or Payment in Lieu of Foregone Benefits Non-eligible	Section 6.3 of WFAD 1998 and WFAA Section 4.1.2 of EETP	Transition Support Measure cash payment, resignation option b) Payment in lieu of foregone benefits
367	Transition Support Measure (TSM) Education Allowance or Compensation for Pension Reduction Eligible	Section 6.3 of WFAD 1998 and WFAA Section 4.1.3 of EETP	Transition Support Measure (TSM) cash payment, option c) plus an amount of not more than $7000 for tuition fees, books or equipment If the TSM is paid during the LWOP code 242 must be used. Up to 30% of salary for pension reduction
368	Transition Support Measure (TSM) Education Allowance or Compensation for Pension Reduction Non-eligible	Section 6.3 of WFAD 1998 and WFAA Section 4.1.3 of EETP	Transition Support Measure (TSM) cash payment, option c) plus an amount of not more than $7000 for tuition fees, books or equipment If the TSM is paid during the LWOP code 242 must be used. Up to 30% of salary for pension reduction
371	Age and years of service allowance under EDI Eligible	TB 823092 dated June 27, 1995 - Early Departure Incentive Program Order	Age and years of service allowance under the Early Departure Incentive Program
372	Age and years of service allowance under EDI Non-eligible	TB 823092 dated June 27, 1995 - Early Departure Incentive Program Order	Age and years of service allowance under the Early Departure Incentive Program
373	Payment under EDI Transferable	TB 823092 dated June 27, 1995 - Early Departure Incentive Program Order	Lump sum payment under the Early Departure Incentive Program other than age and service allowance and severance pay
374	Payment under EDI Non-transferable	TB 823092 dated June 27, 1995- Early Departure Incentive Program Order	Lump sum payment under the Early Departure Incentive Program other than age and years of service allowance and severance pay
385	ADI Lump Sum Transferable	Sections 7.7.1 and 7.7.4 of WFAD 1996, WFAD 1998 and WFAA	3 months pay to accept a type 2 job arrangement or 6 months pay to accept a type 3 job arrangement in an Alternative Delivery Initiative situation
386	ADI Lump Sum Non-transferable	Sections 7.7.1 and 7.7.4 of WFAD 1996, WFAD 1998 and WFAA	3 months pay to accept a type 2 job arrangement or 6 months pay to accept a type 3 job arrangement in an Alternative Delivery Initiative situation
387	ADI Pension Lump Sum Transferable	Section 7.7.3 of WFAD 1996, WFAD 1998 and WFAA	3 months pay to accept a type 1 or type 2 job arrangement in an Alternative Delivery Initiative situation where pension arrangements are below the prescribed standard
388	ADI Pension Lump Sum Non-transferable	Section 7.7.3 of WFAD 1996, WFAD 1998 and WFAA	3 months pay to accept a type 1 or type 2 job arrangement in an Alternative Delivery Initiative situation where pension arrangements are below the prescribed standard
389	ADI Salary Top-up allowance Transferable	Sections 7.7.1 and 7.7.4 of WFAD 1996, WFAD 1998 and WFAA	Lump sum payment to top-up salary offered in a type 2 or type 3 job arrangement in an Alternative Delivery Initiative situation
390	ADI Salary Top-up allowance Non-transferable	Sections 7.7.1 and 7.7.4 of WFAD 1996, WFAD 1998 and WFAA	Lump sum payment to top-up salary offered in a type 2 or type 3 job arrangement in an Alternative Delivery Initiative situation
391	ADI Additional Salary Top-up allowance Transferable	Section 7.7.2 of WFAD 1996, WFAD 1998 and WFAA	Additional 6 months of salary top-up allowance in a type 2 job arrangement where new salary falls below 80% of former salary
392	ADI Additional Salary Top-up allowance Non-transferable	Section 7.7.2 of WFAD 1996, WFAD 1998 and WFAA	Additional 6 months of salary top-up allowance in a type 2 job arrangement where new salary falls below 80% of former salary

• WFAD 1996 - Workforce Adjustment Directive 1996 (for members of Social Science Employees Association)
• WFAD 1998 - Workforce Adjustment Directive 1998
• WFAA - Workforce Adjustment Appendix to Public Service Alliance of Canada Collective Agreements
• EETP - Executive Employment Transition Policy
• EDI - Early Departure Incentive Program ADI - Alternative Delivery Initiatives