ARCHIVED CD 2007-020

This Web page has been archived on the Web.

November 23, 2007 (Revised December 24, 2007)

SUBJECT: Isolated Posts and Government Housing Directive

1. PURPOSE

| 1.1 The 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).

1.2 This directive should be read in conjunction with Compensation Directive 2007-021, entitled "Fixed Vacation Travel Assistance".

2. CANCELLATION

This directive supersedes the following compensation directives:

• 1989-053(27) dated June 12, 1989;
• 1997-048 dated December 29, 1997;
• 1998-021 dated October 22, 1998;
• 2000-003 dated January 24, 2000;
• 2001-007 dated February 14, 2001;
• 2001-026 dated November 28, 2001;
• 2002-031 dated December 12, 2002; and
• 2003-012 dated August 29, 2003.

3. POLICY

3.1. Environment Allowance (EA)

TBS has approved a rate increase, retroactive to August 1, 2007, for the EA (entitlement code 297).

| As a result of the EA classification review, the following locations no longer qualify as isolated posts, and have been deleted from Appendix A of the IPGHD:

• Chandler
• Gaspé (including Rivière-au-Renard)
• Grande-Rivière

Upon receipt of the TBS Information Bulletin on the new IPGHD, compensation advisors were to immediately send a written notice and accompanying NJC Communiqué to each employee working in these locations to explain the reasons why they no longer qualify as an isolated post.

3.2. Living Cost Differential (LCD)

TBS has approved a rate increase, retroactive to August 1, 2007, for the LCD (entitlement code 101). Please note that as a result of surveys conducted by Statistics Canada in Nunavut and Alberta, the LCD levels of a number of locations have been revised.

3.3. Special Accommodation Allowance (SAA)

The SAA (entitlement code 046) that pertains only to Yellowknife, is discontinued effective August 1, 2007, given that the Shelter Cost Differential (SCD) has now exceeded the SAA.

3.4. Shelter Cost Differential (SCD)

| TBS has adjusted the SCD rates retroactive to August 1, 2007. Please note that there is now a "single" rate of SCD for employees (with or without dependents) living in private accommodation at a location that qualifies for the SCD. Compensation advisors must continue to use entitlement code 046 for the SCD.

3.5. Fuel and Utilities Differential (F&UD)

TBS has also announced that effective October 1, 2006, the levels of a number of locations have been revised for the F&UD.

Within 60 days of receiving the notification from TBS, dated July 31, 2007, departments were to provide a written notice to each employee affected by the change.

Please note that the rates for this allowance remain the same.

3.6. Meals or Rations

TBS has approved a rate increase, retroactive to August 1, 2007, for meals or rations.

3.7. Leave Without Pay (LWOP) or Unauthorized Leave

Employees on maternity/parental LWOP who remain at the isolated post continue to be entitled to the allowances of the IPGHD at a rate of 93%.

Employees are not entitled to the allowances of the IPGHD for any period of LWOP for reasons other than maternity/parental or for periods of unauthorized leave.

For more details on the effects of leave on the IPGHD allowances and special circumstances, refer to the IPGHD sections 1.14 and 1.19.

4. PROCEDURES/INSTRUCTIONS

4.1. Environment Allowance (EA) and the Living Cost Differential (LCD)

Compensation advisors are required to amend the ongoing rate and pay the retroactivity for the EA (entitlement code 297) and the LCD (entitlement code 101) by completing an "Entitlement Amend" (ENA - PAC 18A) transaction, effective August 1, 2007. Please refer to the Personnel-Pay Input Manual (PPIM) sections 14-6-2 and 4-4-18-5-1 for instructions.

The EA and LCD rates can be found in Appendix B and Appendix C of the IPGHD.

4.2. Phase Out Process for the Environment Allowance (EA)

| When a location is revoked, compensation advisors are required to decrease the amount of the EA by $100 per month until the EA is reduced to zero, starting on the first of the fourth calendar month after the employee receives written notice.

Please note that each employee (and their dependents) located in Gaspé (including Rivière-au-Renard), Chandler, and Grande-Rivière, will retain the entitlement to the Vacation Travel Assistance (VTA) benefit only for any year for which an EA amount is payable.

Example of the phase out process:

An employee with dependents located in Gaspé who is paid an EA of $3,247 per annum received his notice on August 10, 2007. At a reduction rate of $100 per month, the EA should be reduced to zero in 33 months.

|

1. The EA (entitlement code 297) will be amended effective December 1, 2007, to an amount of $ 3,147 per annum (December 1: $3,147; January 1: $3,047 and so on and so forth at a rate of $100 less per month).
2. Effective December 1, 2008, the EA will be further reduced to $1,947 (January 1: $1,847, February 1: $1,747 and and so on and so forth at a rate of $100 less per month).
3. Effective December 1, 2009, the EA will be amended to$747 per annum, but will only be paid over 8 months, from December 1, 2009 to July 31, 2010 (January 1: $647, February 1: $547 and and so on and so forth at a rate of $100 less per month).
4. Effective September 1, 2010, the EA will cease. The compensation advisor will need to process an "Entitlement Stop" (ENS - PAC 18S) transaction.

Please refer to PPIM sections 14-6-3 and 4-4-18-6-1 for instructions.

For additional information, refer to the IPGHD Section 2.7 "Deletion of a Location or Revocation of an Allowance ".

4.3. Special Accommodation Allowance (SAA)/Shelter Cost Differential (SCD)

The SAA has been discontinued and the entitlement code 046 has been renamed to SCD. Therefore, compensation advisors may use code 046 to process any changes in rate for the SCD, using the "Entitlement Amend" (ENA - PAC 18A) transaction, effective August 1, 2007 (refer to PPIM sections 14-6-2 and 4-4-18-5-1 for instructions).

Please refer to the the IPGHD, Appendix K-1 for the Private Accommodation qualifying locations and rates and Apendix K-2 for the Government Housing qualifying locations and rates.

4.4. Fuel and Utilities Differential (F&UD)

The F&UD levels of a number of locations have been revised, but the rates remain the same. Employees in locations that have been revised must receive written notification by September 29, 2007.

The total amount of the reduction in the F&UD resulting from a reduction in the classification shall be effective on the first day of the fourth calendar month after the month in which written notice was received. Compensation advisors must process any changes in rate for the F&UD (entitlement code 102), using the "Entitlement Amend" (ENA - PAC 18A) transaction.

For more detailed information, please consult the IPGHD Appendix A for the levels and Appendix D for the rates.

4.5. Meals or Rations

Compensation advisors are required to amend the deduction code 519 by completing a "Deduction Amend" (DEA - PAC 16A) transaction to revise an ongoing rate for meals or rations. The effective date of the transaction will be the first of the month following the employee's receipt of the written notice, or the effective date of the change, whichever is the later (refer to PPIM sections 14-5-2 and/or 4-4-16-3).

The rates for meals or rations can be found in Appendix I of the IPGHD.

4.6. Maternity/Parental LWOP

Employees on maternity/parental LWOP who remain at the isolated post continue to be entitled to the allowances of the IPGHD at a rate of 93%.

Compensation advisors are required to process the payment for each allowance separately by completing an "Entitlement Adjustment" (EAJ - PAC 71) transaction with the applicable entitlement code, on a biweekly basis (refer to PPIM sections 14-6-5 and/or 4-4-71).

4.7 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.

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

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

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

4.11 The Deduction/Entitlement Control File was updated on August 31, 2007, to reflect the revised hourly and annual rate maximums, retroactive to August 1, 2007.

5. INQUIRIES

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

Original Signed by
Brigitte Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): ENT 046, 101, 102, 297, DED 519 and CJA 9010-2