CD 2008-018

• | Annex A - Organization Codes (Revised October 3, 2008)
• Annex B - Descriptions and Procedures for Paper Forms

September 22, 2008

SUBJECT: Canada Savings Bonds Campaign 2008-2009

1. PURPOSE

1.1 The purpose of this directive is to provide information concerning payroll deductions for the upcoming Canada Savings Bonds (CSB) Campaign.

This directive applies to all departments and organizations participating in the CSB campaign Payroll Savings Program.

1.2 A notice of information to employees concerning the CSB campaign has been included with this directive and will also be posted in the "Who are you? - Public Service Employee" page of the Compensation Sector Web site.

2. CANCELLATION

2.1 This document supersedes Compensation Directive 2007-016 dated October 2, 2007.

3. BACKGROUND

3.1 The CSB Payroll Savings Program allows public service employees to contribute to CSB plans through regular payroll deductions. These deductions are continuous and employees can make changes to their deductions during the yearly October campaign. Again this year, all departments and organizations will be participating in the e-campaign.

4. POLICY

4.1 Deductions are forwarded to the Bank of Canada every two weeks, and are put towards the employee's CSB plan(s). The interest starts accruing as soon as the Bank of Canada receives these payments.

4.2 Once a year, in January, purchasers will receive a statement from the Bank of Canada documenting their CSB purchase(s), interest earned and any transactions conducted during that year. Purchasers will also be able to verify their account at any time during the year by going on-line at CSB Online Services or by calling the Bank of Canada's toll free number 1-877-899-3599.

4.3 Existing and new payroll deductions are taken from all pay periods, including the pay period plus (PP+).

4.4 For the Payroll Savings Program, CSBs may be registered in the following manner:

• in the purchaser's name only,
• in the purchaser's name together with the name of another individual, whether adult or minor; and
• in the name of an individual, other than the purchaser, whether adult or minor.

4.5 Registered Retirement Savings Plan (RRSP) Option

4.5.1 The RRSP option allows employees to purchase CSBs to be held in the Canada Retirement Savings Plan (Canada RSP). The minimum purchase for CSBs with the RRSP option is $20 per biweekly pay.

Employees who already own compound interest CSBs can transfer all or part of them to the Canada RSP ($500 minimum per series and subject to the limits prescribed by the Canada Revenue Agency (CRA)). This can be done by calling the Bank of Canada at its toll free number, 1-877-899-3599.

4.5.2 Statements of account will be issued by the Trustee of the Canada RSP on a semi-annual basis, on June 30 and December 31.

Please note that the purchaser cannot view his RSP accounts on the CSB Online Services Web site, but can ask for an update by calling the Bank of Canada's toll free number 1-877-899-3599.

4.5.3 Employees making CSB contributions to the Canada RSP will receive two RRSP tax receipts each year. One receipt will be for contributions made up to and including December 31 of the current tax filing year, and the other receipt will be for contributions made during the 60 days (or as otherwise determined by the Minister of the CRA) after the end of the current tax filing year.

4.5.4 It is important to note that the employee's deduction amounts are not transferred directly to a CSB RRSP account. The deduction amounts are first remitted to the Bank of Canada, which then transfers the deduction amounts into the employees' RRSP accounts. The CSB RRSP contributions will not be tax deductible at source, and will not affect how deductions are forwarded to the Bank of Canada.

If employees wish to have the CSB RRSP portion of their deduction amount exempted from federal income tax (or from Quebec income tax for employees who both work and reside in Quebec), they must obtain a letter of authorization from the CRA (or the Ministère du Revenu du Québec (MRQ)). Please refer to Compensation Directive 2002-020 entitled "Reducing Source Deductions of Income Tax" for details.

5. PROCEDURES/INSTRUCTIONS

5.1 The Organization Identification Number has been created so that the Bank of Canada can identify each purchaser's department or agency. Please refer to Annex A - Organization Codes (Revised October 3, 2008) for a list of these numbers and other references applicable to the CSB campaign.

5.2 Employees who are satisfied with their current CSB deductions don't require any further action for the new campaign. Accordingly, their CSB deductions will continue to be ongoing.

5.3 Paper Application Forms

5.3.1 Although all departments and organizations are now participating in the e-campaign, employees who do not have Internet access or who have a disability that prevents them from using the Web site may request a paper application form from their campaign director. The procedures for the completion and processing of paper forms are included in Annex B - Descriptions and Procedures for Paper Forms.

5.4 E-campaign Web Site

5.4.1 To open a new plan or make changes to existing plans, employees must log in to the CSB e-campaign Web site at CSB Online Services during the campaign and follow the on-line instructions. Employees will be able to log in to the CSB e-campaign site and complete their CSB transactions from October 1, 2008 to October 31, 2008.

5.4.2 The campaign directors of each department and organization will provide their employees with an employer code to access the CSB e-campaign Web site. Employees must log in using the employer code for the department or organization through which they are being paid. Employees who have already used the Web site will also require their client ID and password to access the site. Once logged in, employees must provide their current pay office and paylist numbers. This information can be found in the upper left corner of their most recent payment statement (pay stub).

5.4.3 The e-campaign Web site contains the procedures for purchasing new CSB plans and making changes to existing plans. Each screen will guide the employee to the next step in the process. The e-campaign Web site also has a link to "Frequently Asked Questions" for employees who require more information.

For each on-line application, employees must indicate if the purchase is for themselves, for themselves and someone else, or for someone else such as their spouse or children. After each completed application, employees will have the option to purchase other CSB plans or to terminate the on-line session.

5.4.4 All changes will be made effective for the first pay in December 2008.

5.4.5 At the conclusion of the campaign (October 31, 2008) the Bank of Canada will complete a bulk transfer to Public Works and Government Services Canada (PWGSC) of the CSB deduction information received from employees using the e-campaign Web site during the campaign period. This information will be processed through the Regional Pay System (RPS) on November 20, 2008. Any rejects or error messages from the RPS will then be forwarded to the appropriate department in the regular manner via the error analysis report. Compensation advisors will have until the close-out date of the first pay period of December 2008 to complete their corrections. The close-out date for on-line clients is November 26, 2008.

5.4.6 Should a compensation advisor be unable to correct a rejected CSB transaction before the close-out date of the first pay period in December (the close-out date for on-line clients is November 26, 2008) the affected employee will be allowed to request that the compensation advisor increase the remaining deductions to compensate for any missed deduction amounts (see Section 5.6 below).

5.4.7 Details regarding reject and error messages as well as the corrective action to be taken can be found in the Personnel-Pay Input Manual (PPIM) at ppim-7-3-3-1.

5.5 Decreasing CSB Deductions Outside the Campaign Period

5.5.1 Once the campaign period has ended, employees may still request a decrease in their CSB deductions by writing or sending an e-mail to their compensation advisors. If they also wish to revise the individual amounts allocated to each of their CSB plans, they should contact the Bank of Canada at its toll free number 1-877-899-3599. Unless otherwise advised, the Bank of Canada will prorate the new total deduction amount across all of the employees' CSB plans, including their CSB RRSP plans.

5.6 Deductions Not Withheld

5.6.1 Should one or more deductions be missed during the year, employees may submit a request to their compensation advisor, in writing or by e-mail, to amend their deductions to an amount that will make up the difference in their yearly CSB deductions. Employees should ensure that this amended amount does not cause the total yearly deduction to exceed an amount equal to the purchase amount on record for the year.

5.7 Deduction Cancellations

5.7.1 If at any time employees wish to cancel their existing deduction, they should submit a request to their compensation advisor, in writing or by e-mail. The compensation advisor will then take the necessary action to cancel the deduction in the RPS.

5.8 CSB Redemptions

5.8.1 If employees also wish to cancel their CSB plan(s), they should contact the Bank of Canada at its toll free number 1-877-899-3599 for further information concerning the redemption of their plans.

5.8.2 To cash a CSB from an RRSP, employees should contact the Trustee of the Canada RSP in writing at the address shown below.

Canada Savings Bonds
Registered Products
P.O. Box 2390, Station D
Ottawa ON K1P 1K8

Redemption payments from the RRSP can be made by cheque or by direct deposit.

5.9 Restarting a Cancelled Deduction

5.9.1 At the discretion of departments and organizations, employees may request that their deduction be restarted outside of the campaign period. To make such a request, employees must have an active CSB plan (or plans). The new deduction amount requested must not exceed an amount equal to the employees' purchase amount on record for the year.

5.10 Deduction Transfers from Pay to Pension

5.10.1 CSB payroll savings application forms are no longer available to pensioners. Consequently, transferring a CSB deduction from pay is the only way employees may have a CSB deduction from their pension. Personnel offices are asked to remind employees of this restriction when completing the form "Deduction from Annuity or Annual Allowance" (PWGSC-TPSGC 1422).

If employees wish to transfer their CSB deduction, their compensation advisors should indicate the appropriate amount on line 5 of the form. Employees should ensure that this amount does not cause their total yearly deduction to exceed an amount equal to their purchase amount on record for the year.

Further information regarding this issue can be found in Compensation Directive 2003-014.

6. INQUIRIES

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

6.2 General information concerning the CSB campaign can be found at the following Web site address: About Canada Savings Bonds. Any individual inquiries concerning existing CSB plans should be directed to the Bank of Canada at its toll free number, 1-877-899-3599.

Original Signed by
B. Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): CJA 1065-2-1

Annex A

Organization Codes

Organization Codes

Departmental Code for the Regional Pay System	Title of Organization	Organization Identification Number
ACO	Atlantic Canada Opportunities Agency	31926
AGR	Department of Agriculture and Agri-Food	31993
AHS	Public Health Agency of Canada	37820
APT	Canadian Artists and Producers Professional Relations Tribunal	32032
ATN	Canadian Transportation Agency	31943
AUD	Office of the Auditor General of Canada	31931
BAL	Library and Archives of Canada	31962
BCO	Canadian International Trade Tribunal	31939
BSF	Canada Border Services Agency	37813
CAJ	Courts Administration Services	31977
CAP	Parks Canada Agency	32068
CCC	Canadian Commercial Corporation	32039
CCF	Canadian Firearms Centre	37132
CDC	Canadian Dairy Commission	32042
CEO	Office of the Chief Electoral Officer	31945
CES	Canada School of Public Service	31933
CFC	Financial Transactions and Reports Analysis Centre of Canada	33024
CGC	Canadian Grain Commission	32047
CIC	Canadian Intergovernmental Conference Secretariat	31936
CLR	Canada Industrial Relations Board	31932
COL	Office of the Commissioner of Official Languages	31949
COP	Copyright Board	32057
CPM	Military Police Complaints Commission	32995
CRI	Canadian Institutes of Health Research	31961
CSA	Canadian Space Agency	31942
CSD	Department of Human Resources and Skills Development	32002
CSE	Communications Security Establishment	32051
CSN	Canadian Nuclear Safety Commission	31928
CST	NAFTA Secretariat -- Canadian Section	32041
CSW	Office of the Co-ordinator Status of Women	31989
DFO	Department of Fisheries and Oceans	31998
DND	Department of National Defence - Civilians	32012
DOE	Department of the Environment	31997
DUS	Department of Industry	32005
DVA	Department of Veterans Affairs	32010
ENR	National Energy Board	31964
ETH	Office of the Ethics Commissioner	37866
EXT	Department of Foreign Affairs and International Trade	31952
FCG	Canadian Forces Grievances Board	32994
FDC	Telefilm Canada	32036
FIN	Department of Finance	31988
FJA	Office of the Commissioner for Federal Judicial Affairs	31947
FNA	Financial Consumer Agency of Canada	34350
FRD	Economic Development Agency of Canada for the Regions of Quebec	31948
GGS	Office of the Governor General's Secretary	31953
HER	Heritage Canada	32040
HOC	House of Commons	31954
HRC	Canadian Human Rights Commission	31935
HRH	Public Service Human Resource Management Agency of Canada	37172
IAN	Department of Indian and Northern Affairs	32004
ICA	Canadian Food Inspection Agency	31996
IDA	Canadian International Development Agency	31938
IHR	International Centre for Human Rights and Democratic Development	32031
IJC	International Joint Commission	31958
IMC	Department of Citizenship and Immigration	31944
INF	Office of Infrastructure of Canada	36262
| INT	Office of the Public Sector Integrity Commissioner	39283
IOG	Indian Oil and Gas Canada	32035
IPC	Offices of the Information and Privacy Commissioners	31978
IRA	Office of Indian Residential Schools Resolution of Canada	37881
IRB	Immigration and Refugee Board	31955
JUS	Department of Justice	31960
LIB	Library of Parliament	31959
LOB	Office of the Commissioner of Lobbying	38746
MHI	Hazardous Materials Information Review Commission	32037
MOT	Department of Transport	32009
MPA	House of Commons (Members)	32045
NAR	Canada Revenue Agency	32014
NBC	National Battlefields Commission	32048
NEE	National Round Table on the Environment and the Economy	32049
NFB	National Film Board	31966
NPB	National Parole Board	32001
NRC	National Research Council of Canada	31973
NSE	Natural Sciences and Engineering Research Council	32055
OCC	Canadian Centre for Occupational Health and Safety	32050
PAA	Atlantic Pilotage Authority	32053
PAL	Laurentian Pilotage Authority	32056
PAY	Canadian Security Intelligence Service	32169
PCH	Department of Canadian Heritage	31934
PCO	Privy Council Office	31984
PEN	Correctional Service of Canada	32058
POL	Canadian Polar Commission	32062
PPD	Office of the Director of Public Prosecutions	38089
PPT	Passport Office	36261
| PRT	Registry of the Public Servants Disclosure Protection Tribunal	39284
PSC	Public Service Commission	31985
PSP	Department of Public Safety and Emergency Preparedness	32015
PTP	Human Rights Tribunal	34268
PXR	Patented Medicine Prices Review Board	32061
RAP	Assisted Human Reproduction Agency of Canada	38089
RCM	Royal Canadian Mounted Police (Public Service employees - Regional Pay System)	31927
RCMP	Royal Canadian Mounted Police (Civilian and Regular members - GEAC System only)	32003
RCT	Registry of the Competition Tribunal	32059
REH	Department of Social Development (Department of Human Resources Development)	37133
RLT	Public Service Labour Relations Board	31981
RSN	Department of Natural Resources	31974
RTC	Canadian Radio-television and Telecommunications Commission	31940
SEN	Senate	31979
SHC	Department of Health	32069
SIF	Office of the Superintendent of Financial Institutions	31980
SOL	Department of Solicitor General	32015
SSH	Social Sciences and Humanities Research Council	31982
STC	Statistics Canada	31987
SUC	Office of the Registrar of the Supreme Court of Canada	31975
SVC	Department of Public Works and Government Services Canada	32013
SYT	Statistical Survey Operations	37879
TAT	Civil Aviation Tribunal	32034
TBD	Treasury Board (Secretariat)	31950
TSB	Canadian Transportation Accident Investigation and Safety Board	31986
TSD	Public Service Staffing Tribunal	37687
WCO	Department of Western Economic Diversification	31991
N/A	Payroll Service Provider PWGSC (Regular - for remittances only)	32064

References for Pension Deduction

Pension Plan Code	Pension Plan	Organization Identification Number
CFSP	Canadian Forces Superannuation Plan	32066
MPRP	Members of Parliament Retirement Plan - House of Commons	32167
PSSP	Public Service Superannuation Plan	32063
RCMPSP	Royal Canadian Mounted Police Superannuation Plan	32067

Annex B

DESCRIPTIONS AND PROCEDURES FOR PAPER FORMS

Payroll Deduction Change Form

Completion of a Payroll Deduction Change form is required whenever employees who are already on the Canada Savings Bonds (CSB) Payroll Savings Program wish to increase their current total CSB deduction amount for the first pay in December.

This CSB form is a generic form created for all employers and is not specifically designed for the Public Service. Therefore, despite being designated as optional on the form, the campaign director will ensure that the employee is instructed to complete the Organization Information section. The Employee Number section must be completed using the employee's Personal Record Identifier (PRI).

Employees who are completing a Payroll Deduction Change form should contact the Bank of Canada at its toll free number 1-877-899-3599 if they wish to revise the individual amount allocated to each of their CSB plans. If not otherwise advised, the Bank of Canada will prorate the new total CSB deduction amount across all of the employee's CSB plans.

The Payroll Deduction Change form cannot be used as a substitute for the CSB Retirement Savings Plan (RSP) application form. Employees wishing to open a new registered retirement savings plan (RRSP) by purchasing a CSB, or by converting an existing CSB, must complete a CSB RSP application form.

The campaign director will forward the Payroll Deduction Change forms to the compensation advisor for processing. The compensation advisor will enter the employee's amended deduction amount in the Regional Pay System (RPS) effective for the first pay in December 2008. The change form will be retained in the department and should not be forwarded to the Bank of Canada. The Bank of Canada will be notified of the change in deduction amount upon receipt of the next remittance.

Unless otherwise negotiated, the deadline for the receipt of change forms by the compensation advisor is October 31, 2008.

CSB Application Form

Completion of a CSB application form is required whenever employees are opening a new CSB plan, for themselves, for themselves and someone else, or for someone else such as their spouse or child.

If the employees wish to open a CSB RRSP, they should fill out the CSB RSP application form instead. This year, such a purchase can only be made in the purchaser's name.

The campaign director will ensure that all employees completing a form are instructed to include their departmental code and paylist number in the Organization Information section of the form and to indicate their PRI in the Employee Number section of the form. The CSB application form is designed so that the Employee Number section of the form is blacked out on the copy identified for the Bank of Canada.

The campaign director must also ensure that the correct Organization Identification Number appears in the appropriate boxes on all application forms forwarded to the Bank of Canada. The Organization Identification Number has been created to enable the Bank of Canada to identify each purchaser's department or organization. Whenever an employee is transferred, the Organization Identification Number will be automatically changed in the RPS, and the Bank of Canada will be notified with the next remittance. Please refer to Annex A - Organization Codes (Revised October 3, 2008) for a list of these numbers.

The CSB application form is a 4-part form: the employee will retain the top "Employee's Copy", one of the "Employer's/Employee's Copy" and the terms and conditions from the CSB application form. The campaign director will forward the "Bank of Canada Copy" directly to the Bank of Canada and the other "Employer's/Employee's Copy" to the compensation advisor for processing.

The campaign director will ensure that all CSB application forms from the same employee are attached together before forwarding the appropriate copies to the Bank of Canada and the compensation advisor.

It should be noted that employees with an existing deduction who are completing additional application forms also have to complete a Payroll Deduction Change form indicating their total amended payroll deduction. The campaign director will ensure that this change form is attached to the copy of the CSB application form(s) forwarded to the compensation advisor. A copy of the Payroll Deduction Change form should not be attached to the Bank of Canada copy of the CSB application form(s).

A facsimile or photocopy of an application form will not be accepted as valid, nor will application forms from previous campaigns. A new application form must be completed if an employee's original application is lost.

The deadline for the receipt of CSB application forms by the Bank of Canada and the compensation advisor is October 31, 2008.

CSB RSP Application Forms

Completion of a CSB RSP application form is required whenever employees are opening a CSB RRSP, for themselves or for another person.

The completion of the CSB RSP application form is the same as the CSB application form.

For information concerning the RRSP option for Canada Savings Bonds, employees may visit the CSB Web site at About Canada Savings Bonds or contact the Bank of Canada at its toll free number 1-877-899-3599.