CD 2006-016

August 17, 2006 (Revised January 22, 2007)

SUBJECT: Lump Sum Payment for the Correctional Services (CX) Group

1. PURPOSE

1.1 The purpose of this directive is to provide information regarding a lump sum payment in lieu of retroactivity for overtime and other premiums and allowances that are payable to employees in the Correctional Services (CX) group, as a result of a letter of agreement signed on June 26, 2006.

2. BACKGROUND

2.1 The letter of agreement between the Treasury Board of Canada and the Union of Canadian Correctional Officers (UCCO) indicates that the retroactive calculation set up in Section 49.03 of the CX collective agreement will exclude overtime, allowances and bonuses, and a lump sum in the amount of $2,800 in lieu of retroactivity for overtime and other premiums and allowances will be paid to all employees in the CX group (Bargaining Unit Designator [BUD] codes 60100 and 65100).

3. POLICY

3.1 Effective June 26, 2006, a lump sum in the amount of $2,800 shall be paid to members of the CX group represented by the UCCO, for the period from June 1, 2002, to the date the collective agreement was signed on June 26, 2006.

3.2 Employees with a substantive position in the CX group but who were appointed to the group or left the group after June 1, 2002, shall be paid on a pro rata basis for this lump sum amount.

3.3 A part-time employee will be eligible for this lump sum payment prorated to their weekly hours of work versus the normal hours of work for full-time employees.

3.4 The Public Service Labour Relations Act (PSLRA) requires that collective agreements be implemented within 90 calendar days after the date of their signature. Consequently, all pay adjustments, including the lump sum payment described above, must be received no later than September 24, 2006.

4. PROCEDURES/INSTRUCTIONS

4.1 Compensation advisors will be responsible for ensuring that payment of this lump sum amount is received by all eligible employees no later than September 24, 2006, using the existing entitlement code 088.

| NOTE: Days of Leave Without Pay (LWOP) do not reduce the amount of the lump sum payment.

4.2 The proration for those employees appointed to or who have left the CX group after June 1, 2002, and for the part-time employees is calculated as follows:

• The full period (from June 1, 2002, to June 26, 2006) for the lump sum payment is 1060 days (not including June 26, 2006).
• Prorating is calculated as: $2,800 divided by 1060, then times the number of days the employee is on strength during the full period.

Example :

| If an employee was appointed on January 3, 2006 and worked full time, he is entitled to this lump sum retroactive payment: $2,800 / 1,060 X 124 working days = $327.55 (January 3, 2006, to June 25, 2006)

4.3 This lump sum payment is subject to the following:

• Federal/Provincial Income TaxFederal/Provincial Income Tax
• Employment Insurance
• Canada Pension Plan/Quebec Pension Plan

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
Acting Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): BUDs 60100 and 65100, ENT 088