ARCHIVED CD 1999-028
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August 03, 1999
SUBJECT: Late Hour Premium - Change in Pensionability and Reporting Method
1.1 The purpose of this directive is to advise you of changes to the "Late Hour Premium", an allowance payable under the Translation Group (TR) collective agreement signed on July 9, 1998 and the Program and Administration Services (PAS) collective agreement signed on December 29, 1998.
1.2 Use of masculine is generic and applies to both men and women.
2.1 This directive should be read in conjunction with Compensation Directive 1999-006 dated February 22, 1999 entitled "New Collective Agreement - Program and Administration Services" and Compensation Directive 1998-020 dated September 11, 1998 entitled "Translation Group - Pay Supplements".
2.2 Previously, an employee entitled to the late hour premium was paid via lump sum payment with entitlement code "083 - Pay Supplement 4% or 7% / Late Hour Premium". This entitlement was determined as being subject to pension contributions.
Several payments have been issued to employees since the introduction of the Late Hour Premium under the Translation Group collective agreement signed July 9, 1998 and the Program and Administration Services collective agreement signed December 29, 1998.
3.1 Recently, a review on the eligibility of the "Late Hour Premium", being included as pensionable earnings was performed. The result of the review was that the "Late Hour Premium", as negotiated in the collective agreements, is not considered as part of salary for Public Service pension purposes. A refund of pension contributions will be required for any "Late Hour Premium" payments previously issued under code 083.
4.1. New Reporting Requirements
The description of entitlement code 083 will be amended to no longer include the Late Hour Premium. Entitlement code "083" remains to report the pay supplements listed in the TR collective agreement, Appendix A, Pay Notes 7 (a), (b), (c), and (g) as explained in Compensation Directive 1998-020, dated September 11, 1998.
Entitlement code 231 "Late Hour Premium" payable as an extra duty pay entitlement, was created and updated to the Regional Pay System on July 5, 1999. This entitlement code is to report the pay supplement listed in the TR collective agreement, Appendix A, Pay Notes 7 (h) and the PAS collective agreement article 25.12 (b) "Late Hour Premium".
Client Departments are to input the Late Hour Premium entitlement code 231 as an extra duty pay entitlement using the Electronic Data Processing (EDP) screen (on-line) or the DSS-MAS 2547 or Public Works and Government Services Canada (PWGSC)- Travaux publics et Services gouvernementaux Canada (TPSGC) 2548 Extra Duty Pay Input Form/Proforma (batch mode) with a rate code value of "X" for hourly, a rate amount of $7.00 and the number of hours to be paid.
The input procedures to be followed for entitlement code 231 are explained in the Personnel Pay Input Manual (PPIM, Sections 3-3-1 to 3-3-5 and 14-10-2-2.
Sections 2-6 and 9-5-2 of the PPIM will be amended to reflect the creation of the entitlement code 231 and amendments to entitlement code 083.
4.2. Refund of Pension Contributions
Client Departments are to request the pension contributions refunds for all "Late Hour Premium" payments issued under code 083 by reporting a DER (on-line) or a 16 R (batch mode) transaction with deduction code 581. The effective from and to dates would be the period of the entitlement paid under code 083 which is not subject to pension contributions and the rate amount would be the exact amount of pension contributions to be refunded. This transaction will create a message to the PWGSC, Compensation Services Office who will issue the refund with the next regular pay.
Client Departments are also responsible to update the Contributor, Salary Maintenance with the correct information.
PWGSC, Compensation Services Offices will update the Salary Service History with the correct information.
A hard copy listing of payments issued with entitlement code 083, in Pay Office, Department, Paylist and Personal Record Identifier order, is available to Departments by requesting a copy from the PWGSC, Compensation Services Office.
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: DEDENT 083 and 231
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