Subject: Changes to the Regional Pay System to Issue Payments for Salary Revisions, Temporarily Struck Off Strength and Struck Off Strength by Direct Deposit
September 12, 2012
1.1. The purpose of this directive is to provide client departments and pay offices with information on the changes made to the Regional Pay System (RPS) effective October 23, 2012 concerning the direct deposit (DD) process.
2.1. In accordance with the 2012 Federal Budget, Public Works and Government Services Canada (PWGSC) announced in April 2012 that the Government of Canada will increase the use of direct deposit by slowly phasing out federal government cheques.
2.2. Currently, some processes in the RPS are designed to issue payments by paper cheque. PWGSC has reviewed those processes and found that certain payments can be issued via direct deposit.
2.3. The new process is expected to further reduce the volume of paper cheques and the associated processing costs, as well as reduce the costs related to the administration of pay.
3.1. In accordance with the Treasury Board (TB) Directive on Terms and Conditions of Employment, direct deposit is offered on a voluntary basis to employees who were on strength prior to September 1, 1992. On or after September 1, 1992, DD is mandatory for all persons newly appointed in the Public Service on an indeterminate basis or for a specified period where the term is greater than, or is extended beyond, six months. It is strongly recommended that all employees, regardless of their status, subscribe to direct deposit.
3.2. The direct deposit of supplementary payments is mandatory in the same manner as the direct deposit of regular payments.
3.3. Revision payments, temporarily struck off strength (T-SOS) payments and struck off strength (SOS) payments have been identified as payments that can be issued via direct deposit.
3.4. Only employees who are receiving their payments via direct deposit will be impacted by this change. Employees who are receiving their payments via cheque will continue to receive these types of payments by cheque.
4.1. Revision Payments
4.1.1. Currently, revision payments covering a retroactive period (Entitlement codes 201, 211, 212 and 213) are issued by cheque regardless of the information in field 951 (DD Indicator Regular Pay) or field 980 (DD Indicator Supplementary Pay) of the employee's master employee record (MER).
4.1.2. Effective October 23, 2012, the RPS will issue retroactive revision payments according to the employees' DD indicators. Therefore, employees who receive their payments by direct deposit will also receive their revision payments by direct deposit.
4.1.3. These changes also apply to salary revisions automatically processed by the RPS.
4.1.4. Compensation advisors will be able to verify the revision payments by using the payroll register or the regular revision report.
4.1.5. It will be possible to cancel payments via the intercept and recall processes currently in place in the RPS. More details on those processes can be found in ARCHIVED CD 2008-008 and Personal-Pay Input Manual (PPIM) sections PPIM 7-5-1, PPIM 18-10-7, PPIM 18-10-7-1 and PPIM 18-10-7-2.
4.2. Temporarily Struck Off Strength (T-SOS) Payments
4.2.1. Currently, supplementary payments are issued by cheque to all employees who are in T-SOS status. Once a T-SOS transaction (Pay Action Code 13 TSO) is processed, the employee's DD Indicator in the RPS becomes or remains DD Indicator "2" so that all payments to the employee are issued by cheque.
4.2.2. Effective October 23, 2012, when a compensation advisor processes a T-SOS transaction (PAC 13 TSO) the RPS will automatically change the DD indicator to a "1" (Direct Deposit with a pay stub) for employees who suppressed the print of their pay stub (DD indicator "4").
However, the RPS will not change the indicator for employees who have 1 (direct deposit with a pay stub) or 2 (cheque) as their DD indicator. As a result employees who are already receiving their payments via direct deposit will continue to do so while in T-SOS status.
4.2.3. The employee will be responsible of suppressing the print of their pay stubs once they are re-taken on strength.
4.2.4. All employees will be responsible for advising their compensation services of any change in their bank account information while in T-SOS status. Compensation advisors will be able to change the bank account information of a T-SOS employee by processing a direct deposit change (PAC 12 -DFT). If required, compensation advisors will also be able to change the DD Indicator for T-SOS employees. Instructions can be found in PPIM 4-4-12-2 and PPIM 14-12-1.
4.2.5. In the event that the Standard Payment System (SPS) cannot process a payment to an employee's bank account for any reason, a system-generated transaction will be sent to the RPS to change the DD Indicator to a "2" for both regular and supplementary payments. Compensation advisors will be responsible of resuming direct deposit once they receive the appropriate bank account information.
4.3. Struck Off Strength (SOS) Payments
4.3.1. Currently, upon completion of an SOS transaction in the RPS, the last payment and any subsequent payments are paid by cheque.
4.3.2. Effective October 23, 2012, when a compensation advisor processes an SOS transaction (PAC 02 SOS) the RPS will automatically change the DD indicator to a "1" (direct deposit with a pay stub) for employees who suppressed the print of their pay stub (DD indicator "4"). However, the RPS will not change the indicator for employees who have "1" (direct deposit with a pay stub) or "2" (cheque) as their DD indicator.
4.3.3. Death in service and termination payments issued to a Registered Retirement Saving Plan (RRSP) will continue to be paid by cheques. Other termination payments will be paid based on the employees DD indicator.
4.3.4. Employees will be responsible to notify their compensation services of any change in their bank account information. The compensation advisors will be responsible to remind their employees.
4.3.5. The changes to the RPS will also allow compensation advisors to change both the DD Indicator and the bank account information for SOS employees by processing a direct deposit change (PAC 12 -DFT). Instructions can be found in the PPIM 4-4-12-2 and PPIM 14-12-1.
4.3.6. In the event that the Standard Payment System (SPS) cannot process a payment to an employee's bank account for any reason, a system-generated transaction will be sent to the RPS to change the DD Indicator to a "2" for both regular and supplementary payments. Compensation advisors will be responsible of resuming direct deposit once they receive the appropriate bank account information.
5.1. Any inquiries on the information contained in this directive should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Reference(s): CJA 9015-6
- Date modified: