ARCHIVED CD 2008-015

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| July 22, 2008 (Revised April 6, 2009)

SUBJECT: New and Modified Allowances for the Financial Management (FI) Group

1. PURPOSE

1.1 The purpose of this directive is to provide information on the new and modified allowances included in the Financial Management (FI) group's collective agreement. This agreement between the Treasury Board and the Association of Canadian Financial Officers was signed on June 6, 2008, and will expire on November 6, 2009.

1.2 An information notice to employees concerning the signing bonus for the FI group has been included with this Compensation Directive.

2. BACKGROUND

2.1 The new collective agreement for the FI group provides for the following allowances:

2.2. Signing Bonus

A signing bonus in the amount of $500 is payable to all eligible employees (Union members) in the FI group (Bargaining Unit Designator (BUD) 30400) on June 6, 2008.

2.3 Chief Financial Officer (CFO) Model Transitional Allowance

A CFO Transitional Allowance is payable to all employees occupying a position at the FI-01 through FI-04 levels who have reached the maximum rate of pay for their level.

2.4. Professional Allowance

A Professional Allowance in order to reimburse an employee for his annual membership fees.

3. POLICY

3.1 The Public Service Labour Relations Act (PSLRA) requires that each employee receives all pay adjustments within 90 calendar days of the signing of the collective agreement. Consequently, as these provisions form part of the collective agreement, they must be paid within the 90-day implementation period which expires on September 4, 2008.

3.2 These allowances do not form part of the employee's salary and are not to be used in calculating the 4% gratuity or premium pay in lieu of statutory holidays.

3.3. Signing Bonus

A signing bonus in the amount of $500 is payable to all active and temporarily struck off strength (T-SOS) employees (Union members) in the FI group (BUD 30400) on the date of signing of the collective agreement. This includes indeterminate and term employees appointed for a period equal to or greater than three months, as well as employees acting in FI positions. Casual employees, term employees appointed for a period of less than three months and excluded employees will not receive the signing bonus.

3.3.1. Part-time

Part-time employees are eligible to receive the total amount of the signing bonus (not prorated).

3.3.2. Acting Pay

The signing bonus is payable to FI employees acting in another occupational group or excluded position for less than four months, and to all other employees acting in an FI position for four months or more on the date of signing.

3.3.3. Salary Protection

The signing bonus will be payable to employees in a salary protection situation based on the position they occupy on the date of the signing of the collective agreement.

3.3.4. Dual Employment

Employees occupying two FI positions and who are on leave without pay (LWOP) from one of the positions will receive the signing bonus once.

3.3.5. Dual Remuneration

Employees receiving dual remuneration from occupying two FI positions will be paid the signing bonus once.


3.4. CFO Model Transitional Allowance

Treasury Board will maintain the CFO Transitional Allowance for employees in the FI group. Effective November 7, 2007 to November 6, 2008, the CFO Transitional Allowance is to be paid to employees who are at the maximum of the FI-01 through FI-04 levels, at the rate of 2% of the maximum rate of pay for the FI-01 and FI-02, 3% for the FI-03 and 4% for the FI-04.

Effective November 7, 2008, this allowance is to be maintained for employees who are at the maximum of the FI-03 and FI-04 levels, at the rate of 1% for the FI-03 and 2% for the FI-04.

Part-time employees are entitled to this allowance on a prorated basis.

3.4.1 In order to be entitled to the CFO Transitional Allowance, the employee must be a member of the FI group on or after the date of signing of the collective agreement, and have reached the maximum rate of pay for his level. The employee must also have received at least 10 days pay in the calendar month in order to be eligible for the allowance for the full month. Because of the 10-day eligibility rule, this allowance will be paid through the Regional Pay System (RPS) as a monthly allowance.

3.4.2 Eligible employees on pre-retirement transition leave (PRL), leave with income averaging (LIA) 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 CFO Transitional Allowance payment for the full month.

3.4.3. Acting Pay

When an employee in receipt of the CFO Transitional Allowance is required by the Employer to perform the duties of a higher classification level within the FI bargaining unit, the Transitional Allowance of the substantive position shall continue until such time as the requirements to receive the Transitional Allowance for the acting position are met.

3.4.4 An employee whose substantive position is not in the FI group, and who is required to perform the duties at a higher classification level within the FI group and is paid at the maximum pay rate in this group, will be entitled to receive the CFO Transitional Allowance for the full month provided he meets the 10-day eligibility rule as an acting FI for the month. However, if the employee is not at the maximum pay rate in the FI group, he will not be entitled to the CFO Transitional Allowance.

3.5. Professional Allowance

Upon proof of payment, employees in the FI group will continue to be reimbursed for their professional membership fees in accordance with the conditions contained in the FI collective agreement.

3.5.1 The Professional Allowance has been increased to a maximum of $1,250 for membership fees that are not a requirement for the continuation of the performance of the duties of an employee's position, but are paid to any of the associations referred in the Standards for Selection and Assessment for the FI Group. For more details and conditions concerning this allowance, please refer to the FI collective agreement.

4. PROCEDURES/INSTRUCTIONS

4.1. Signing Bonus

The signing bonus is subject to income tax, payroll tax, the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP), the Employment Insurance (EI) and the Quebec Parental Insurance Plan (QPIP) deductions.

4.1.1 Consolidated Systems Control Division (CSCD) will automatically process the signing bonus (Entitlement code 360) on July 23, 2008, for employees in the FI group. Please note that all applicable pay frequencies (7A, 7B and 7C) will be processed on that date.

4.1.2 The signing bonus payment will be deposited directly into the employees' bank accounts.

Compensation advisors are responsible to intercept the signing bonus payments for casual employees, term employees appointed for less than three months and excluded employees. Due to the short timeline for direct deposit intercepts, compensation advisors are required to make every possible attempt to initiate the intercepts prior to the payment due date. Please note that intercepts may be processed up to three business days prior to the due date. For pay input instructions, please refer to section 7-5-1 of the Personnel-Pay Input Manual (PPIM) .

4.1.3 Please note that a "No Payment" report will be produced for employees in dual employment/dual remuneration situations. Compensation advisors will be responsible for processing these payments manually.

4.2. CFO Model Transitional Allowance

The existing entitlement code 229 "Monthly Terminable Allowance or Chief Financial Officer Transitional Allowance" will continue to be used to pay the CFO Transitional Allowance.

4.2.1 The Transitional Allowance shall be paid in accordance with the following rates:

Effective Date Level Maximum Rate Monthly Allowance Amount
November 7, 2007 FI-01 2% of $63,197 $105.33
November 7, 2007 FI-02 2% of $74,392 $123.99
November 7, 2007 FI-03 3% of $89,451 $223.63
November 7, 2007 FI-04 4% of $100,044 $333.48


 
Effective Date Level Maximum Rate Monthly Allowance Amount
November 7, 2008 FI-03 1% of $93,339 $77.78
November 7, 2008 FI-04 2% of $104,392 $173.99

4.2.2 For employees already receiving the CFO Transitional Allowance, compensation advisors will be responsible for revising the ongoing rate and adjusting the retroactivity of the allowance by completing an "Entitlement Amend" (ENA - Pay Action Code (PAC) 18A) transaction with entitlement code 229, rate base 6.

The following demonstrates the data input to amend the ongoing rate and process the retroactive payment of the CFO Transitional Allowance:

PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18A 229 01 11 07 1 30 11 07 2 6 New rate N 1 Former Rate
18A 229 01 12 07 1 31 12 07 2 6 New rate     Former Rate
71 229 (EAJ) 01 12 07 1 26 12 07 2 0 Lump sum difference between new rate and former rate for 18 days      
71 229 (EAJ) 27 12 07 1 31 12 07 2 0 Lump sum difference between new rate and former rate for 3 days      
18A 229 01 01 08 1 open 6 New rate N Number of months up to the current pay period Former rate
Second Update effective November 7, 2008 (FI-01 and FI-02 levels only) 1
PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18S 229 07 11 08 1     Applicable rate      
71 229 (EAJ) 01 11 08 1 06 11 08 2 0 Lump sum amount for 4 days (monthly rate ÷ 20 days x 4 days)      
Second Update effective November 7, 2008 (FI-03 and FI-04 levels only) 1
PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18A 229 07 11 08 1 open 6 New rate     Former rate
The following transaction must be processed in the same update
PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
71 229 (EAJ) 01 11 08 1 06 11 08 2 0 Lump sum difference between new rate and former rate for 4 days      

| 1 Effective November 7, 2008, the CFO Transitional Allowance is to be maintained only for employees who are at the maximum of the FI-03 and FI-04 levels. Please refer to Appendix A for instructions on how to amend the payment of the CFO Transitional Allowance when an effective date of November 1, 2008, was used to stop the allowance (levels FI-01 and FI-02) or to update the monthly rate (levels FI-03 and FI-04) for the Second Update, effective November 7, 2008.

4.2.3 To commence the CFO Transitional Allowance for the first time, the compensation advisor must complete an Entitlement Commence (ENC - PAC 18C) transaction, with entitlement code 229, rate base 6 and a monthly rate. The system will divide the monthly rate in two equal amounts and pay one amount with each regular biweekly pay (excluding pay period plus). The "from date" is always the first day of the month, and the "to date" is left blank for ongoing payments. For a closed period, the "to date" is the end of the month.

To ensure that the salary/service history (SSH) and the Contributor System reflect the correct data, and that the public service pension plan contributions are deducted at the applicable rate, the data input must be done as follows:


7C Pay Accounts

The following demonstrates the data input to commence the entitlement for a full-time FI-03 employee who has reached the maximum pay scale for his group before November 2007, has met the 10-day eligibility rule for each month, and is paid on a 7C cycle.

PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18C 229 01 11 07 1 30 11 07 2 6 223.63 N 1  
18C 229 01 12 07 1 31 12 07 2 6 223.63 X    
71 229 (EAJ) 01 12 07 1 26 12 07 2 0 191.68 ($223.63 ÷ 21 X 18 days = $191.68)      
71 229 (EAJ) 27 12 07 1 31 12 07 2 0 31.95 ($223.63 ÷ 21 days X 3 days = $31.95)      
18C 229 01 01 08 1 open 6 223.63 N (number of months up to the current pay period)  
Second Update effective November 7, 2008
PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18A 229 07 11 08 1 open 6 77.78     223.63
The following transaction must be processed in the same update
PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
71 229 (EAJ) 01 11 08 1 06 11 08 2 0 Lump sum difference between new rate and former rate for 4 days      

7A and 7B Pay Accounts

The following demonstrates the data input to commence the entitlement for a full-time FI-03 employee who has reached the maximum pay scale for his group before November 2007, has met the 10-day eligibility rule for each month, and is paid on a 7A or 7B cycle.

PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18C 229 01 11 07 1 30 11 07 2 6 223.63 N 1  
18C 229 01 12 07 1 31 12 07 2 6 223.63 X    
71 229 (EAJ) 01 12 07 1 12 12 07 2 0 85.19 ($223.63 ÷ 21 X 8 days = $85.19)      
71 229 (EAJ) 13 12 07 1 31 12 07 2 0 138.44 ($223.63 ÷ 21 X 13 days = $138.44)      
18C 229 01 01 08 1 open 6 223.63 N (number of months up to the current pay period)  
Second Update effective November 7, 2008
PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18A 229 07 11 08 1 open 6 77.78     223.63
The following transaction must be processed in the same update
PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
71 229 (EAJ) 01 11 08 1 06 11 08 2 0 Lump sum difference between new rate and former rate for 4 days      

4.2.4 The ongoing entitlement for a part-time employee will be automatically prorated by the system. Therefore, the full amount of the allowance must be entered for both full time and part-time employees on the 18C/A 229 transaction.

4.2.5 An employee who meets the 10-day eligibility rule during the month of November 2007 will be entitled to the CFO Transitional Allowance at the higher rate for the full month.

4.2.6 The CFO Transitional Allowance is subject to income tax, payroll tax, CPP, QPP, EI, QPIP, Disability Insurance (DI), Long-term Disability (LTD) Insurance, public service pension plan, Supplementary Death Benefit Plan (SDBP), and Public Service Management Insurance Plan (PSMIP) deductions.

4.2.7 Part-time employees who meet the 10-day eligibility rule are entitled to the CFO Transitional Allowance on a prorated basis. The 10-day rule specifies that, in order for a part-time employee to be eligible for the CFO Transitional Allowance, he must be paid for twice his assigned work week in a month. If a part-time employee meets this rule, he is to receive a prorated payment based on his assigned work week. Therefore, the payment formula to calculate the allowance for part-time employees is:

assigned work week X full-time monthly payment amount
_________________________________________________

standard work week

4.2.8 For pay input instructions, please refer to PPIM Section 4-4-18-3-1, 4-4-18-3-2, 4-4-18-5-1, 4-4-18-5-2, 4-4-18-6-1, 4-4-71 and 5-9.


4.3. Professional Allowance

Compensation advisors are responsible for reporting this lump sum payment by completing an "Entitlement Commence" (ENC - PAC 18C) transaction with entitlement code 034 (Membership Fees), rate base 0.

4.3.1 Please refer to PPIM Section 4-4-18-3-1 for pay input requirements.

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
B. Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): ENT 229, BUD 30400


Appendix A

Chief Financial Officer (CFO) Transitional Allowance stopped on November 1, 2008, for FI-01 and FI-02 employees

If an Entitlement Stop (ENS - PAC 18S) 229 transaction with an effective date of November 1, 2008, was input to stop the allowance for an FI-01 or FI-02, proceed as follows to process the payment for the period of November 1 to November 6, 2008:

PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18C 229 01 11 08 1 06 11 08 2 0 Lump sum amount for 4 days (monthly rate ÷ 20 days X 4 days)      

The monthly rate for the CFO Transitional Allowance was updated (reduced) with an effective date of November 1, 2008, for FI-03 and FI-04 employees

If an Entitlement Amend (ENA - PAC 18A) 229 transaction with an effective date of November 1, 2008, was input to update the monthly rate of the allowance for an FI-03 or FI-04, proceed as follows to process the payment for the period of November 1 to November 6, 2008:

PAC Effective From Effective To Rate Base Rate Amount Field 67 Field 68 From Rate (Field 69)
18A 229 01 11 08 1 open 6 New rate (higher rate)     Former rate (lower rate)
18A 229 07 11 08 1 open 6 New rate (lower rate)     Former rate (higher rate)
71 229 (EAJ) 01 11 08 1 06 11 08 2 0 Lump sum payment between new rate and former rate for 4 days