ARCHIVED CD 1999-031
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August 19, 1999SUBJECT: Computer Systems Administration Group - Terminable Allowance
1.1 The purpose of this directive is to provide you with information concerning the Computer Systems (CS) Administration Group's new Terminable Allowance as identified in ANNEX "E", in the memorandum of understanding between Treasury Board and the Professional Institute of the Public Service of Canada in respect to the Collective Agreement for the above mentioned group that was signed on June 11, 1999.
1.2 This information will also apply to agencies that have reached an identical agreement with their CS Administration Group.
1.3 In this text, use of the masculine is generic and applies to both men and women.
2.1 In an effort to resolve retention problems, the employer will provide a Terminable Allowance (TA) to incumbents of positions at the CS-01 through CS-05 levels for the performance of duties in the CS Group. Changes to the TA are included in the collective agreement signed on June 11, 1999.
3.1 The Public Service Staff Relations Act requires that each employee receives all pay adjustments within 90 calendar days of the signing of the collective agreement. Consequently, as this allowance forms part of the collective agreement, it must be paid within the 90-day implementation period which expires on September 9, 1999.
3.2 The Terminable Allowance (TA) is effective from May 1, 1999 to April 30, 2000.
In order to be entitled to the TA, the employee must be an active member of the CS group on or after the date of signing of the collective agreement. The employee must then have 10 days pay in the calendar month, in the CS group, in order to be eligible for the full month.
The intent of the TA is to retain CS employees on staff. Consequently, if the employee ceases to be a member of the bargaining unit prior to meeting the requirements for the allowance, then the employee forfeits the right to the allowance. There are no exceptions to this rule.
3.3 The amount of the TA payable is that amount specified for the level prescribed in the certificate of appointment of the employee's substantive position.
3.4 When an employee is required by the employer to perform the duties of a higher classification level within the CS bargaining unit in accordance with clause 47.05 of the CS Collective Agreement, the TA payable shall be proportionate to the time at each level.
3.5 Part-time employees shall be entitled to the Allowance on a pro-rata basis.
3.6 The TA specified does not form part of an employee's salary except for the purposes of the Public Service Superannuation Act.
4. PROCEDURES - INSTRUCTIONS
4.1 Entitlement code 229 (Terminable Allowance - Monthly) has been assigned for the purpose of making the TA payments. This is a monthly entitlement that covers the period from May 1, 1999 to April 30, 2000.
4.2 The TA shall be paid in accordance with the following rates:
|Level||Monthly Payment in respect of May 1999|| Monthly Payments in respect of
June 1999 to April 2000
|CS-01||$438 .00||$139 .00|
|CS-02||$557 .00||$176 .00|
|CS-03||$667 .00||$212 .00|
|CS-04||$782 .00||$248 .00|
|CS-05||$899 .00||$285 .00|
4.3 Initial Payment
An initial payment is to be made for the retroactive period from May 1, 1999 to August 31, 1999 inclusive. If the employee is active in the CS group on or after the signing date and has met the 10-day eligibility rule for each month, he will receive a payment for May to August. If the employee was no longer in the CS group prior to the signing date, he will not be eligible for any part of the payment even if he was a CS during the retroactive period. This payment will be created September 1, 1999.
Public Service Superannuation Act (PSSA) deficiencies will be collected from the first pay in September for any period of leave without pay from May 1, 1999 to August 31, 1999. The pension contributions will be calculated based on the pension status code present on the employee's master file on the actual production date of the retroactive payment.
4.4 Monthly Payments
Ongoing monthly entitlements are to be paid on a bi-weekly basis with the regular pay issue from the start date of September 2, 1999 (beginning of the 1st pay cycle period of September 1999) up to April 26, 2000 (the end date of the 2nd pay period of April, 2000). Payment will not be calculated and issued on the pay period plus (PP+). Automation of the payment will be effective the pay cycle 1 of September, 1999. The bi-weekly payment for every pay period except pay period plus (PP+), from September, 1999 to April, 2000 is to be calculated using the following formula: Monthly amount divided by two.
Entitlement code 229 is subject to Income Tax, Canada Pension Plan, Quebec Pension Plan, Employment Insurance, Disability/Long Term Disability (DI/LTD) Insurance, Public Service Superannuation Act (PSSA), Death Benefit and Public Service Management Insurance Plan. The TA is not to be used to compute the 4% gratuity and other entitlements such as premium pay in lieu of statutory holiday.
4.5 Employees with Ongoing Leave Without Pay (LWOP)
Employees on Pre-retirement Transition Leave (PRL) or for which there is an ongoing LWOP transaction and who meet the 10-day eligibility rule for the month are entitled to receive the TA payment.
4.6 Employees on Time Summary Reporting
Employees on Time Summary reporting will not be paid the TA automatically. Departments will determine the employees'eligibility and submit pay input to request the payment for the entire month if required. The entitlement code 229 will be available as of September 1, 1999. Because of the requirement to provide employees with all pay adjustments by September 9, 1999, departments are encouraged to submit pay input starting September 1, 1999.
4.7 Dual remuneration
There will be no automatic payment for employees on "dual remuneration". These employees will be handled the same as is currently done for the collective bargaining process (notification to the client department for possible manual adjustment).
4.8 Acting Pay
The TA payable is the amount specified in the above mentioned grid for the level prescribed in the certificate of appointment of the substantive position. However, when the employee is required to perform the duties at a higher classification level within the CS Group, the TA payable shall be proportionate to the time at each level. An employee would not receive the TA in a specific month if he is acting in a classification group other than the CS group and did not meet the 10-day eligibility rule as a CS for the month.
Part-time employees who meet the 10-day eligibility rule are entitled to the lump sum payment on a pro-rata basis. Part-time employees must have an assigned work week of 15 or more hours to be eligible for the TA payment for the month. The lump sum is paid in the same proportion as the assigned weekly hours of work (AWW field 33) compared with the normal weekly hours of work of full-time employees Scheduled Work Week (SWW) field 32). Therefore, the payment formula to calculate the lump sum payment for part-time employees is:
assigned work week X full-time payment amount standard work week
4.10 Supplementary Death Benefit (SDB)
As per the collective agreement criteria, May and June monthly amounts are not subject to SDB premiums because of the signing date of June 11, 1999. However, it must be noted that the July monthly amount is subject to SDB premiums.
The monthly TA amounts are pensionable and as such they are also subject to SDB. Monthly SDB premiums are to be calculated based on full annual salary which includes the monthly TA amount, annualized. The SDB coverage would remain at the higher rate even if the employee was not eligible in a particular month for reason of LWOP and therefore must be included in the recovery of SDB deficiencies process.
Monthly TA of $139.
$139.00 X 12 = $1,668.00
Add the amount of $1,668.00 to the annual salary on Master Employee Record (MER) (i.e. if salary on MER $34,492.00 add $1,668.00 for a total of $36,160.00)
For SDB coverage the annual salary of $36,160.00 is to be doubled and then rounded to the next $250.00 ($36,160.00 X 2 = $72,320.00 rounded to $72,500.00)
SDB premiums are $ .05 per $250.00 ($72,500. / $250.00 X $ .05)
4.11 Disability Insurance/Long Term Disability Insurance and Public Service Management Insurance Plan (DI/LTD and PSMIP)
With respect to DI/LTD and PSMIP coverage and premiums, the particulars are identical to SDB WITH THE EXCEPTION that the salary is not doubled.
4.12 Public Service Superannuation Act (PSSA)
PSSA contribution calculations are the same as for any other payment, meaning according to the employee's current PSSA pension status. However, if a payment is not effected in a particular month because an individual has not met the 10-day eligibility rule due to leave without pay in the CS group, PSSA deficiencies are to be calculated, based on the amount the employee would have received had he not been on leave without pay.
Based on the above, a PSSA calculation will have to be effected in accordance with the entitlement that would have been paid and must be included in the recovery of the PSSA deficiencies process.
If an employee does not meet the 10-day eligibility rule because he has moved to another group/classification, or Struck-off-strength (SOS) or Take-on-Strength (TOS) during the month and does not receive the TA in a specific month, no PSSA contributions are required regarding the TA payment in that specific month.
4.13 Ongoing Entitlement After Implementation
Departments will be responsible to commence, stop or input adjustments (recover / amend amounts) of the Terminable Allowance after implementation. These adjustments would include starting, amending and stopping the TA payments for employees in the CS group. As this is a monthly entitlement, and due to system limitations, it must be commenced in a cycle 1 pay with a start date of the first of the month. The TA will be automatically stopped after the 2nd pay cycle in April 2000.
5.1 Any request for information regarding the foregoing should be addressed to your Public Works and Government Services Canada Compensation Services Office.
Original Signed by
Government Operational Service
Reference: BUD 303
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