ARCHIVED CD 2009-004

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March 5, 2009

SUBJECT: Miscellaneous Staffing Action (MSA) Transactions and Automation of Basic and Acting Pay Salary Adjustments

1. PURPOSE

1.1. The purpose of this directive is to provide you with information concerning changes to the Regional Pay System (RPS).

2. BACKGROUND

2.1. As part of Public Works and Government Services Canada's (PWGSC) stewardship role, a data correction project was put in place to validate the accuracy of information entered by departments and data residing in PWGSC systems.

In 2005, a team was assembled to review the accuracy of pension data by comparing pensionable salary and service to contributions received. The review helped PWGSC identify the most common data input errors and the importance of improving data integrity. Consequently, to assist departments, PWGSC is enhancing its communication products and where feasible, automating processes and adding more built in edits into the RPS.

3. POLICY

3.1. Rehabilitation leave

When an employee returns to work under an approved rehabilitation program and is temporarily working reduced hours because of illness, he can choose not to pay his current superannuation contributions until he resumes his regular scheduled hours of work.

Under this option, a pay action code (PAC) 05/MSA transaction is required, effective the date the employee returns to work under the rehabilitation program, to modify the pension type code to "62" to ensure that this period of employment stays pensionable, without having superannuation contributions (or deficiencies) deducted at source during the rehabilitation period.

In addition to indicating the appropriate pension type code for employees participating in an approved rehabilitation program, a PAC 12/STC (Status Change) transaction is also required to modify the Disability Insurance (DI), the Long Term Disability Insurance (LTD) and the Supplementary Death Benefit (SDB) indicator.

When the employee resumes his regular scheduled hours of work, a PAC 05/MSA transaction is required to revert the pension type code from "62" to the original code effective the same date that was initially reported to temporarily suspend the current superannuation deduction and the DI, the LTD and the SDB indicator must also be modified to reinstate the premium deductions.

Educational leave

When an employee takes a period of educational leave and is entitled to an Educational Leave Allowance in lieu of regular pay, he can also choose to pay his superannuation contributions upon his return to duty.

Under this option, a PAC 05/MSA transaction is required, effective the date the Educational Leave Allowance commences, to modify the pension type code to "62" and a PAC 12/STC transaction is also required to modify the DI, the LTD and the SDB indicator.

When the employee returns to duty, a PAC 05/MSA transaction is required to revert the pension type code from "62" to the original code effective the same date that was initially reported to temporarily suspend the current superannuation deduction. The DI, the LTD and the SDB indicator must also be modified to reinstate the premium and contribution deduction.

Currently, in some rehabilitation and educational leave cases, the "effective from" date entered on the MSA transaction to revert the pension type code to the original code often reflects the first day of the current pay processing period or the date the employee returns to work (from Educational Leave) instead of the "effective from" date initially reported to temporarily suspend the current superannuation deductions at source. In addition, the "effective from" date entered on the STA transaction to change the DI, the LTD and the SDB indicator often reflects the first day of the current month or is sometimes omitted.

As a result, the amount of pension contributions and DI, LTD, and SDB premiums collected are incorrect and additional work is needed from the compensation advisors and the pay offices to correct errors and collect the required pension contributions after the fact.

Processing Basic and Acting Pay Salary Changes Effective in the Current Pay Period

When various salary change transactions are processed in the RPS and the effective date of the change falls in the current pay processing period other than on the first day of that pay period, a second transaction must also be processed to either recover a period of non-entitlement or to issue a supplementary payment.

The salary recovery or supplementary payment transaction is initiated by the compensation advisor or by the pay office. In both cases, this creates additional work and there is a possibility that the entitlements will not be recovered or that the payment will not be issued.

4. PROCEDURES/INSTRUCTIONS

4.1. Prior to inputting the appropriate pension contributions, the DI, the LTD and the SDB premium codes into the RPS when an employee on rehabilitation or educational leave resumes his regular scheduled hours of work, the compensation advisors should ensure that the proper "effective from" dates are determined and that the RPS reflects the correct data relating to the DI, the LTD and the SDB.

4.1.1. To ensure compliance to this rule, new edit controls will be added to the RPS on March 3, 2009.

4.1.2. The warning message PB/PDWG9 "Verify DB DI/LTD eligibility codes /Verifier les codes admissibilite PD & AI/AILD" will be generated when the transaction type is PAC 05/MSA and the pension type code is "62" or when reverting back from "62" to its original pension type code (01, 02, 03, 04, 10, 13, 18 or 19).

4.1.3. The warning message PD/PBWJ1 "VERIFY EFF DATE FOR PENSION STATUS CHANGE / VERIFIER DATE VIG. POUR CHANG. SIT. PENSION" will be generated when the transaction type is PAC 05/MSA and the pension type code is 01, 02, 03, 04, 10, 13, 18 or 19 and the current value in field 39 on the master file is "62" or "66".

4.2. REGIONAL PAY SYSTEM CHANGES

4.2.1. Processing Basic and Acting Salary Changes Effective in the Current Pay Period

Modifications to fields have been made to ACT, MSA, PRO, INC, REV, CNV, RBP and DEM screens to take into account the automation of salary adjustments.

When the date of the change is effective in the current pay period, it is mandatory that fields 67 and 68 be filled. Message 214 "HRS/DAYS/WKS NUMBER & INDICATOR MUST BOTH BE FILLED / NOMBRE ET INDICATEUR DE H/J/S DOIVENT TOUT DEUX ETRE REMPLI" will be produced if these fields are not filled.

In addition, field 69 has been added to the RBP and DEM screens and therefore, it is mandatory that it be filled.

Also, the message Q46 "FORMER RATE AMOUNT DOES NOT MATCH SAL/SER LINE/ANCIEN TAUX MONTANT NE CORRESPOND PAS LIGNE SAL/SER" will be produced if the value entered in field 69 does not match the corresponding rate on the Salary/Service History.

4.2.2. The system will automatically generate the appropriate salary adjustment transaction, based on data present on the transaction for fields 66, 67, 68 and 69.

To INCREASE the basic salary rate, a PAC 18R/ENR is generated to recover the salary overpaid from the next regular pay process.

To DECREASE the basic salary rate, a PAC 71/SUE is generated to pay the salary adjustment as a supplementary payment.

Note: For transactions reported as a "CLOSED" period, no salary adjustment will be generated and the current process will continue.

Example 1:

• PRO 22/09/08 1 9 F66 = 60,000.00 F67 = 'D' F68 ='2' 
• F69 = 50,000.00
• In this example, the employee's account would be overpaid by the difference between $60,000.00 and $50,000.00 from 18/09/08 1 to 19/09/08 2 (2 days).

An automatic salary recovery transaction would be generated as follows:

• F60 = 18
• F61 = R
• F62 = 001
• F63 = 18/09/08 1
• F64 = 19/09/08 2
• F65 = 9
• F66 = 10,000.000
• F67 = D
• F68 = 2

Example 2:

• RBP 001 20/09/08 1 9 F66 = 50,000.00 F67 = 'D' 
• F68 = '2' F69 = 60,000.00
• In this example the employee would be underpaid by the difference between $60,000.00 and $50,000.00 from 18/09/08 1 to 19/09/08 2 (2 days).

An automatic salary payment transaction would be generated as follows:

• F60 = 71
• F62 = 182
• F63 = 18/09/08 1
• F64 = 19/09/08 2
• F65 = 9
• F66 = 10,000.000
• F67 = D
• F68 = 2

4.2.3. Exceptions

There will be no salary adjustment generated for the following accounts:

• Account in "leave with income averaging" or "pre-retirement leave" status
• Account in "temporarily struck-off strength" or "struck-off strength" status
• Account in "pending struck-off strength" status
• Current account cycle (cycle 7A)
• Monthly account cycle (cycle 6C)
• Accounts where there is a change in the "assigned work week and/or standard work week"
• Account where the adjustment period overlaps two calendar years

In these cases, the PAC18R/ENR or PAC71/SUE transaction must not be generated and the current process applies.

5. PAY OFFICE RESPONSIBILITIES

5.1. When a transaction is processed in the RPS to change an employee's salary, the system will generate the applicable salary adjustment to either collect the salary overpayment or pay the salary entitlement on a lump sum basis on the next regular pay.

5.1.1. As a result of this change, pay and pension agents will no longer need to process these transactions. The requirements identified apply to changes in basic and acting pay only as reported to RPS via MSAs 001/002, PRO, DEM, INC 001/002, REV 001/002, CNV 001/002, RBP (acting pay only) and ACT, for 7B/7C accounts in active (X) status.

Exceptions:

In all situations where the salary adjustment overlaps two calendar years, a notification message NA5 "SAL.ADJ.OVERLAPPING CALENDAR YEARS - ACTION MANUALLY / RAJ. SAL. CHEVAUCHES ANNEES CIVILES -INT.MAN.REQUISE " will be produced to the Pay Office for their action.

Note: The Personnel-Pay Input Manual (PPIM) will be updated to incorporate the changes contained in this compensation directive.

6. INQUIRIES

6.1. Any inquiries on the information contained in this document should be addressed to your PWGSC Compensation Services Office.

Original Signed by
T. Labelle

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): CJA 9001-01