CD 2009-012

June 10, 2009

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 2007-020, entitled "Isolated Posts and Government Housing Directive" and Treasury Board Secretariat (TBS) Information Notice 2009-04-16, entitled "Amendments to the Isolated Posts and Government Housing Directive - Appendices A, B, C, K-1, K-2, M".

2. POLICY

2.1 Environment Allowance (EA)

The Treasury Board Secretariat (TBS) has approved a rate increase for the EA (entitlement code 297), retroactive to August 1, 2008.

As a result of the EA classification review, newly designated locations in Ontario and British Columbia have been added to the isolated posts list.

2.2 Living Cost Differential (LCD)

TBS has approved a rate increase for the LCD (entitlement code 101), retroactive to August 1, 2008. Please note that, as a result of surveys conducted by Statistics Canada, the LCD levels of a number of locations have been revised.

2.3 Shelter Cost Differential (SCD)

TBS has adjusted the SCD (entitlement code 046) rates, retroactive to August 1, 2008.

TBS has also amended the fuel and utilities charges formula.

2.4 Fuel and Utilities Differential (F&UD)

TBS has also announced that, effective October 1, 2007, the F&UD (entitlement code 102) levels of a number of locations have been revised.

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

Exception

Please refer to the exceptions provided in the Treasury Board Secretariat (TBS) Information Notice 2009-04-16.

3. PROCEDURES/INSTRUCTIONS

3.1 EA, LCD and SCD

Compensation advisors are required to amend the ongoing rate and pay the retroactivity for the EA (entitlement code 297), the LCD (entitlement code 101) and the SCD (entitlement code 046) by completing an "Entitlement Amend" (ENA - PAC 18A) transaction, effective August 1, 2008. 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.

3.2 F&UD

The F&UD levels of a number of locations have been revised, but the rates remain the same.

Exception

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

Departments are required to calculate the difference between the revised dollar amounts of the F&UD versus the amount that was previously published in Appendix A, and pay that difference for each employee in the affected location according to the length of their service in that location. Compensation advisors are required to report the lump sum rate by completing an "Entitlement Commence" (ENC - PAC 18C) transaction, effective from February 1 to October 1, 2007. Please refer to the Personnel-Pay Input Manual (PPIM) sections 14-6-1 and 4-4-18-3-1 for instructions.

Departments must keep track of the above amounts as they will be required to report to TBS the totals paid out to affected employees.

3.3 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.

3.4 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 contributions.

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

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

4. INQUIRIES

4.1 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 046, 101, 102, 297 and CJA 9010-2