Subject: Isolated Posts and Government Housing Directive
September 2, 2011
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 the Treasury Board Secretariat (TBS) Information Notices entitled " Living Cost Differential (LCD) Survey Results for the Nunavut region and designation of a new isolated post " and " Annual Update to the Isolated Posts and Government Housing Directive - Appendices B, C, I, K-1 and K-2".
2.1. Environment Allowance (EA)
The TBS has approved a rate increase for the EA (entitlement code 297), effective August 1, 2011.
2.2. Living Cost Differential (LCD)
TBS has approved a rate increase for the LCD (entitlement code 101), effective August 1, 2011.
TBS has also announced that, effective July 1, 2011, the LCD levels of a number of locations have been revised.
2.3. Shelter Cost Differential (SCD)
TBS has approved a rate increase for the SCD (entitlement code 046), effective August 1, 2011.
2.4. Meals and Rations (MR)
TBS has approved a rate increase for the MR (entitlement code 519), effective August 1, 2011.
2.5. New Location
The newly designated location of Kegaska, Quebec, has been added to the list of isolated posts. All allowances and benefits for this location were effective as of July 1, 2011.
Please consult the IPGHD Appendix A - Classification of Isolated Posts for more details.
3. Procedures and Instructions
3.1. EA, LCD, SCD and MR Rates
Compensation advisors are required to amend the ongoing rate and pay the entitlements for the EA (entitlement code 297), the LCD (entitlement code 101), the SCD (entitlement code 046) and the MR (entitlement code 519) by completing an ("Entitlement Amend" (ENA) - Pay Action Code (PAC) 18A) transaction, effective August 1, 2011. Please refer to the Personnel-Pay Input Manual (PPIM) sections PPIM 14-6-2 and PPIM 4-4-18-5-1 for instructions.
The EA , LCD and SCD rates can be found in Appendix B - Environment Allowance, Appendix C - Living Cost Differential, Appendix K-1 - Shelter Cost Differential (SCD) - Qualifying Locations - Private Accommodation, Appendix K-2 - Shelter Cost Differential (SCD) - Qualifying Locations - Government Housing and Appendix I - Meals or Rations of the IPGHD.
3.2. Classification of Isolated Posts
The LCD levels of a number of locations have been revised.
Within 60 days of receiving the information notice from the TBS, departments shall provide a written notice (email is considered an acceptable written notice) to each employee affected by any decrease or revocation to an allowance, as stated in Section 2.12 of the Isolated Posts and Government Housing Directive (IPGHD). The total amount of the reduction in the LCD resulting from a reduction in the classification shall be effective on the first day of the fourth calendar month after the month in which the written notice was received. Compensation advisors must process any changes in rate for the LCD (entitlement code 101), using the "Entitlement Amend" (ENA - PAC 18A) transaction.
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.
4.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Reference(s): ENT 046, 101, 102, 297, 519 and CJA 9010-2
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