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PPIM 4-4-16-1

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Section: PAY ACTION CODE 16

Subsection: DEDUCTIONS - COMMENCE (PAC Modifier "C")

DEFINITION

To start a deduction from an employee's pay. (A PAC 16 is NOT required for those deductions automatically calculated from data in the status fields.)

COMPLETE MANDATORY fields (PWGSC TPSGC 2517-1 Publiservice). SEE NOTES for explanation.

FIELDS NOTES
01 Mandatory.
05 Mandatory.
06 Mandatory.
09 Mandatory.
10 Mandatory.
11 Mandatory.
12 Mandatory.

INPUT the employee's Personal Record Identifier (PRI). USE a leading zero to fill all nine spaces.

13 Mandatory.
14 Mandatory.
15 Mandatory.
18 LEAVE blank.
60 Mandatory.

INPUT PAC "16".

61 Mandatory.

INPUT Modifier "C" (Commence).

62 Mandatory.

INPUT the appropriate deduction code. REFER to PPIM 9-5-4.

63 Mandatory.

INPUT the EFFECTIVE FROM, AM/PM date, i.e. the first day of a month or the first day of a pay period or the true effective date (as in the case of a percentage deduction such as rent) applicable to the type of deduction being requested. SEE the Remarks that follow.

64 INPUT an EFFECTIVE TO, AM/PM date if the deduction is for a fixed period. This date MUST be the last day of the month if the deduction is authorized on a monthly basis or the last day of the pay period if the deduction is authorized on a pay period basis. If the deduction is a continuing one with NO termination date, LEAVE blank.
65 INPUT the Rate Base appropriate to the deduction code being used, taking note of the following:
  • With the exception of Medicare, the Public Service Dental Care Plan (PSDCP) and the Public Service Health Care Plan (PSHCP), REPORT deductions for a closed period in the past as a lump sum, Rate Base "0".
  • For Deduction Code 740 (Maintenance of dependents - Full assignment) LEAVE blank. REFER to Section PPIM 9-5-4.
66 INPUT the amount applicable to the deduction. For deduction codes 852, 854 and 856 INPUT 0.000 in the amount field. LEAVE blank for Deduction Code 740 (Maintenance of dependents - Full assignment) which is calculated by the pay office. For union dues, REFER to Section PPIM 5-4.
67 INPUT an "X", if applicable, to override the automated generation of arrears deductions for union dues, parking and insurances (current codes only). REFER to Section PPIM 9-5-4 for the list of applicable codes.
69 INPUT the employer share amount for deduction codes 739, 852, 854, 856, 969 and 976. INPUT the employer share amount for deduction codes 690, 692, 703 and 708 only when the amount in Field 66 is 0.000.
| 71 INPUT the Contract or Reference number, if applicable. REFER to Section PPIM 9-5-4 which lists each deduction code and the requirements for reference numbers in Field 71; for the Public Service Management Insurance Plan (PSMIP) reference number, REFER to Section PPIM 5-8; For the Public Service Health Care Plan (PSHCP), refer to remark 9.
72 INPUT remarks as appropriate to clarify - or LEAVE blank.

Note: INPUT the information in free form text (FFT) when working with the On-Line Pay System.

73 Mandatory.
74 Mandatory.
75 Mandatory.
76 Mandatory.

REMARKS

  1. FUTURE DATES.

    The following instructions apply when reporting a future EFFECTIVE FROM date to commence a deduction, using a PAC 16:

    The rule when submitting a PAC 16 (commence), effective at a future date, is that it:

    • should NOT be input on the same form as pay actions with current effective dates; and it
    • should be submitted to the pay office on a separate form, timed to arrive when the pay office is processing the pay period during which the EFFECTIVE FROM, AM/PM date occurs.
  2. ARREARS.

    When a deduction is started with an EFFECTIVE FROM date which is prior to the pay period currently being processed, the premium will be in arrears. If rate changes have occurred in the arrears period, a PAC 16A for each change of rate must also be reported. ENSURE that the rate reported is valid for the dates input. The total amount of arrears will be calculated by the pay office and recovered as follows:

    • Except for union dues, parking and insurances, the arrears will be recovered by the pay office as a lump sum UNLESS a "rate of recovery" is reported in Field 72. Arrears are recovered from regular pay only and NOT from supplementary payments.

      Note 1: Arrears deductions for union dues (PAC 17C) will be automatically generated by the system when the EFFECTIVE FROM date on the PAC 16C is equal to or greater than February 1, 1992, and the override indicator (Field 67) is left blank. Arrears will not be generated for full months of leave without pay (LWOP) and in these situations, the system will produce message W22 "Arrears adjustment not generated for LWOP period". Recovery of the arrears will be done on a one to one basis (i.e. one current and one arrears) and will be spread over the same number of months as the number of premiums in arrears. REFER to Section PPIM 9-5-4 for the list of codes. When the EFFECTIVE FROM date on the PAC 16C is prior to February 1, 1992, the PAC 17C is not generated and the system produces message W17 "No retroactive adjustment generated - Man. adj. may be required".

      For the Public Service Alliance of Canada (PSAC), the compensation advisor is to START the deduction of dues effective the first of the next month and INFORM PSAC of the arrears situation and any other details which could be helpful in calculating arrears.

      For the Union of Canadian Correctional Officers (UCCO) National and the Association of Justice Counsel (AJC), the compensation advisor is to START the deduction of dues effective the first of the next month and is also responsible for collecting arrears by calculating and inputting the deductions - arrears (DAR) PAC 17C 650, 658, 659 or 5C7, one month arrears at a time until all arrears have been recovered, as per instructions in Section PPIM 4-4-17-1. The compensation advisor must USE the current pay period to avoid an edit that will be produced to the pay office and to avoid double recovery.

      Note 2: Arrears deductions for parking and insurances (PAC 17C) will be automatically generated by the system when the EFFECTIVE FROM date on the PAC 16C is equal to or greater than February 1, 1992, and the override indicator (Field 67) is left blank. Recovery of the arrears will be done on a lump sum basis from the subsequent pay cycle applicable to the deduction code, except for rate base "0" which will be collected from the next pay cycle. In situations where the recovery of the arrears as a lump sum amount would cause hardship to the employee, the override arrears indicator can be used.

      The department is responsible for initiating the recovery process. Arrears adjustment will not be generated for a full month of LWOP except for the following insurance deduction codes and LWOP reason codes:

      DEDENT CODES LWOP REASON CODES
      976 B, C, D, E, K, Q, R, S, T, 1, 7, 8
      703 (when employee share is 0.00 only) B, C, D, E, K, Q, R, S, T, 1, 5, 7, 8 (full period) F, G, L, U, V, 3, 4, 6 (first three consecutive months only)
      720, 721, 854, 856 All LWOP codes

      When arrears are not generated, the system will produce message W22 "Arrears adjustment not generated for LWOP period". REFER to Section PPIM 9-5-4 for the list of codes. When the EFFECTIVE FROM date on the PAC 16C is prior to February 1, 1992, the PAC 17C is not generated and the system produces message W17 "No retroactive adjustment generated - Man. adj. may be required".

      Note 3: Arrears override indicator. The override indicator on a PAC 16C may be used for any situation where the automatic generation of arrears by the system is to be suspended (e.g. on a transfer-in). When the override indicator (Field 67) is completed with the value "X", the system commences the deduction, does not generate any arrears recovery pay action and produces message W17 "No retroactive adjustment generated - Man. adj. may be required".

      Note 4: Arrears - Multiple rates. When more than one premium rate is applicable for the retroactive period, a separate PAC 16C - PAC 16A MUST BE REPORTED for each period of the different rate. The override indicator MUST BE USED on the PAC 16C for union dues, parking and insurances and on the PAC 16A for parking and insurances only (cannot override union dues on PAC 16A). A PAC 17C MUST BE REPORTED to collect the arrears for the PAC 16C - PAC 16A reported.

  3. PRORATED DEDUCTIONS - PARTIAL MONTHS OR PAY PERIODS.

    1. When commencing a prorated deduction, such as rent, and charges are effective on a date other than the first day of the month or the pay period, proceed as follows:
      • CALCULATE the total amount to be deducted for the initial partial period;
      • REPORT a PAC 16C effective from the first day of the initial month or pay period, as applicable, and ENTER the calculated amount in Field 66.

      For example, for a charge of $240.00 per month (Rent - Married Quarters) effective April 16, 2006, REPORT the following:

      PAY ACTION MODIFIER ENTITLEMENT / DEDUCTION EFFECTIVE DATE FROM - AM/PM EFFECTIVE DATE TO - AM/PM RATE BASE RATE / AMOUNT CODING / NUMBER / STATUS / OTHER
      16 C 511 0104061 blank 6 120.00 (3 character alpha code, if applicable - REFER to Section PPIM 9-5-4)

      Total rent due for initial month 15 x 240.00 / 30

    2. A separate pay action must then be submitted to amend the rate to the full amount effective the first of the following month or pay period. Using the example given in 3. a. above, the pay line of the second pay action would be:

      Full deduction from May 1, 2006.

      PAY ACTION MODIFIER ENTITLEMENT / DEDUCTION EFFECTIVE DATE FROM - AM/PM EFFECTIVE DATE TO - AM/PM RATE BASE RATE / AMOUNT CODING / NUMBER / STATUS / OTHER
      16 A 511 0105061 blank 6 240.00 (3 character alpha code, if applicable)
    3. When reporting a prorated deduction (on struck off strength (SOS) or temporarily struck off strength (T-SOS)), the PAC 16C closed period must be input prior to or with the PAC 02 or PAC 13 and the EFFECTIVE TO date must be prior to the SOS or T-SOS date. REFER to Section PPIM 5-13 for a list of prorated deductions.
  4. MULTIPLE DEDUCTIONS.

    Do NOT submit the same deduction code twice, on the same input form, for the same employee except for codes 5D7, 5D8, 548, 552, 553, 577, 578, 713, 734, 735, 758, 759, 777, 778, 779, 780, 781, 782, 790, 855, 857, 872, 880, 881, 915 and 917 where multiple deductions are permitted.

  5. ALBERTA HEALTH CARE - EMPLOYEE'S PREMIUM - ARREARS.

    The Alberta Health Care Insurance Plan (AHCIP) produces a computer listing of those AHCIP members owing premiums from service with another employer. This list is sent to the "new" employer through pay office channels. Departments are responsible for collecting these arrears even though the deficiency was incurred prior to employment by the department. TO COLLECT THESE ARREARS, USE a lump sum amount; or if over a specified period, PROCEED as follows:

    • INPUT a PAC 16C683 in the appropriate pay period;
    • INPUT in Field 63 the first day of the month that the deduction is to commence;
    • INPUT in Field 64 the last day of the month in which the arrears will be completely collected;
    • INPUT in Field 65, Rate Base "6"; and
    • INPUT in Field 66 the monthly amount to be taken - to correspond with fields 63 and 64.
  6. PSMIP OPTIONAL COVERAGES.

    When premium deductions for optional PSMIP coverages (Basic Life Insurance, Supplementary Life Insurance, Accidental Death and Dismemberment Insurance, Dependants'Insurance) are started, the DI / LTD Code (Field 47) should be amended to reflect eligibility status under the LTD.

  7. WHEN RECOVERING FINANCIAL PENALTIES:

    "MONTHLY" PENALTIES (Except SUPPLEMENTARY PAY PERIOD (PP+)) INPUT:

    • Code 542/UD - Recovery of Financial Penalties - Current Fiscal Year (Cycle Code 7).

    "PER PAY" PENALTIES (Including SUPPLEMENTARY PAY PERIOD (PP+)) INPUT:

    • Code 817/UD - Recovery of Financial Penalties - Current Fiscal Year (Cycle Code 8).
  8. THE PUBLIC SERVICE SUPERANNUATION ACCOUNT (PSSA OR PSSA 1) AND THE PUBLIC SERVICE PENSION FUND (PSPF OR PSSA 2)

    EFFECTIVE April 1, 2000.

    When inputting a PAC 16C for PSSA (PSSA 1) or PSPF (PSSA2) LWOP deficiencies or for past service elections, the compensation advisors in the departments must give special consideration to the deduction codes used (SEE the table of deduction codes below). If the election was signed BEFORE April 1, 2000, or the LWOP deficiencies are for a period prior to April 1, 2000, departments MUST use PSSA1 deduction codes. If the election was signed on or after April 1, 2000, regardless of the elective period, PSSA2 deduction codes MUST be used. If the deficiency is for a period of LWOP on or after April 1, 2000, the PSSA2 deduction codes MUST be used. For the "EFFECTIVE DATE" of a past service (election) pay action reported as a result of a transfer-in (PAC 04), the true effective date of the election must be used. REFER to Remark 2 in Section PPIM 4-4-04-1.

      PSSA 1 DEDUCTION CODES PSSA 2 DEDUCTION CODES
    LWOP Deficiencies 581, 586, 587, 605, 876, 879 561, 563, 760, 761, 762, 763, 783, 784
    Past Service Elections 577, 578, 880, 881 758, 759, 777, 778, 779, 780, 781, 782
  9. | THE PUBLIC SERVICE HEALTH CARE PLAN (PSHCP).

    If the employee is a former PSHCP member, enter the certificate number in F71, columns 1-7. If the employee is applying to become a new member, leave the certificate number field blank and the system will assign the certificate number. The PSHCP "effective coverage start date" must also be reported in F71, columns 10-17 (DD MM YY, e.g. 01 05 10).

Last Update: June 2010