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Section: PAY ACTION CODE 18
Subsection: ENTITLEMENT - LEAVE WITH INCOME AVERAGING (LIA) (PAC Modifier "C")
Leave with income averaging (LIA) is a flexible working arrangement which allows indeterminate employees, whose employer is Treasury Board, as set out under Part 1, Schedule 1 of the Public Service Labour Relations Act, to take blocks of leave without pay (LWOP) of between 5 weeks and 3 months, within a 12-month period and continue to receive a prorated salary over the same 12-month period that the LIA covers. The reduced salary may be calculated with the LIA calculator at Virtual Pay Site.
The maximum number of blocks in a 12-month period is two with a maximum period of absence not exceeding 3 months. A block of LIA-LWOP may require two PAC 15C306 if the 5-year maximum pensionable limit is encountered during that period; therefore three PAC 15C306 could be reported when applicable.
COMPLETE MANDATORY fields (PWGSC-TPSGC 2517-1 ). SEE NOTES for explanation.
INPUT the employee's Personal Record Identifier (PRI). USE a leading zero to fill all nine spaces.
INPUT PAC "18".
INPUT Modifier "C" (Commence).
INPUT Entitlement Code "306".
INPUT the EFFECTIVE FROM, AM/PM date which is the first day the LIA period will start. Must be the first day of the current pay period.
INPUT the EFFECTIVE TO, AM/PM date. This will be a date in the future and will be the last day of the final pay period in which the reduced salary reported in Field 69 will be paid (e.g. 7C would be the last day of the 26th pay period).
INPUT the appropriate rate base to be used with the reduced salary in Field 69. The reduced salary rate base must be identical to the basic salary rate base.
COMPLETE to show the reduced salary to be paid to the employee for the 12-month LIA period. This is the basic salary minus the LIA-LWOP periods.
INPUT Option "1" or "2".
ENTER "1" if the employee is to pay PSSA 1/2 on full salary or "2" if the employee has reached the 5-year pensionable LWOP maximum (LIA-LWOP reason code "W") and is to pay PSSA 1/2 on reduced salary.
|72||INPUT remarks as appropriate to clarify or LEAVE blank.
Note: PUT the information in free form text (FFT) when working with the On-Line Pay System.
These fields on the MER are used by the Regional Pay System (RPS) to identify what salary is to be used to pay the employee (the reduced salary) and when the LIA block leave is to be stopped automatically. REFER to Section PPIM 7-3-4 for field description.
REPORT a PAC 15C306 for each period of LIA-LWOP at the same time as the PAC 18C306, otherwise the PAC 18C306 will be rejected with message 390 "No PAC15C306 Received - Transaction Rejected" (REFER to Section PPIM 4-4-15-5-1).
When submitting a PAC 18C306 transaction, the originator must determine if the employee is receiving an entitlement which must also be reduced and reported at the same time with a PAC 18A (REFER to Section PPIM 4-4-18-5-2).
No supplementary payment will be issued automatically, when a PAC 05, 06, 08, 09, 10 or a PAC 18C002 is received by the RPS while the employee is on LIA. A message will be forwarded to the pay office advising them to do the adjustment manually if retroactivity is required.
If a PAC 02 is received while the employee is on LIA, the system will initiate the same action as when a PAC 18S306 is received (REFER to Section PPIM 4-4-18-7-3).
When the date on the MER in Field 116 "Leave Arrangement End Date" is equal to a date in the current pay period (pay will be issued based on the reduced rate) a report will go to the Department stating that the LIA period is terminated. A copy of the MER will be produced with message W2512 "LIA period is over".
The information on the MER WILL REMAIN UNCHANGED UNTIL IMMEDIATELY PRIOR TO processing the next regular pay issue. At that time Field 114 will be zero-filled, Field 116 will be blanked and the value in Field 113 will be changed from a "1" to a "4" or a "2" to a "5" (REFER to Section PPIM 7-3-4 for fields descriptions).
On the payroll register the salary will be identified as entitlement code 306. If the employee is paid via Time Summary input, it will appear as code 001.
On the cheque stub, the salary will be identified as "LEAVE INCOME AVERAG/CONGÉ ÉTALEMENT REV". If the employee is paid via Time Summary input, it will appear as "BASIC PAY/TRAIT DE BASE".
The PAC 15C306 will determine if union dues are required for a specific month (REFER to Section PPIM 4-4-15-5-1).
Employment insurance (EI) and Parental Insurance Plan (PIP) premiums will be calculated based on the full salary but will not be deducted during the LWOP period. (SEE Section PPIM 4-4-15-5-1).
Superannuation (PSSA), Death Benefit (DB), Disability Insurance/Long-Term Disability (DI/LTD), EI and PIP will be calculated on the basic or reduced salary as per the table below. However, Federal Tax, Provincial Tax and Canada Pension Plan/Quebec Pension Plan (CPP/QPP) deductions will be based on reduced salary.
The new LIA period will commence in the pay period immediately following the end of the existing LIA arrangement. A LIA Amend (PAC 18A306) is required to commence the new LIA period using the NEW "Effective From" and Effective To" dates. The LIA reduced salary is calculated based on the new LIA period. Field 67 (H/D/W IND) and Field 68 (NUM H/D/W) should be blank. The reduced rate may be calculated with the LIA calculator at Virtual Pay Site . A PAC 15C306 must be reported at the same time with the new LIA-LWOP dates. Reduced entitlements due to the new LIA period must also be amended with a PAC 18A (REFER to Section PPIM 4-4-18-5-2).
The LIA period will be established based on 26 pay periods.
A PAC 18C306 does not update the "Salary/Service History Update" Program; Salary/Service is updated with the true effective date of the LIA-LWOP (PAC 15C306) that is created at the same time as the PAC 18C306.
Last Update: April 2012