ARCHIVED CD 2000-001
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January 10, 2000
SUBJECT: Pay Equity Adjustment Reports - Clerical and Regulatory (CR), Stenographic and Typing (ST), Data Processing (DA), Hospital Services (HS), Library Science (LS) and Educational Support (EU) Groups
1.1 The purpose of this directive is to provide information on the Pay Equity adjustments as agreed to between the Treasury Board Secretariat (TBS) and the Public Service Alliance of Canada (PSAC) on October 29, 1999, and approved by the Canadian Human Rights Tribunal (CHRT) on November 16, 1999. This agreement affects the Clerical and Regulatory (CR), LS, EU, DA, Secretarial, ST and HS groups. This directive will also provide information on the reports created to assist departments to manage and verify payments for the Pay Equity adjustments.
1.2 This directive must be read in conjunction with the Compensation Directive 1997-041 dated December 5, 1997, entitled "Equalization Adjustment - CR, ST, DA, HS, LS and EU Groups".
1.3 In this text, use of masculine is generic and applies to both men and women.
2.1 TBS authorized payment of a Pay Equity adjustment for employees in the CR, LS, EU, DA, ST and HS groups in departments and agencies listed under Schedule 1, Part 1 of the Public Service Staff Relations Act(PSSRA) based on the Tribunal ruling rendered on July 29, 1998.
2.2 In December 1997, Public Works and Government Services Canada (PWGSC) produced several reports for both active and inactive accounts to facilitate the work in the departments. These reports are being reproduced in January 2000 to facilitate the preparatory work required by the departments to accurately process the Pay Equity adjustments as defined in the final agreement.
The following is a list of the reports that are described in section 4 of this directive:
- 1985-89 Pay Equity Account Report
- Pay Equity Account Select Report
- No Master Account Report
- Dual Remuneration Report
- Educational Leave Report
3.1 This directive briefly describes the various types of payments (see section 3.2) that have been included in the agreement, the changes to the criteria for eligibility (see section 3.3), and the PWGSC reports (see section 4) that will be used in the preparation and processing of the Pay Equity adjustments. Further instructions and details on these payments as well as the processing schedule will be included in a Compensation Directive (CD) that is scheduled for publication in January 2000.
3.2. Pay Equity Adjustments
Different types of adjustments have been included in the Pay Equity agreement as follows:
- Retroactive Pay Equity Adjustment
- Revised Basic Salary and Stopping Ongoing Equalization Allowance
- Separation Benefit Adjustments
- 5% Lump Sum Payment in Lieu
A brief description of each type of adjustment follows.
3.2.1. Retroactive Pay Equity Adjustment
The retroactive Pay Equity adjustments included in this agreement have been divided into two types of payments. The first retroactive Pay Equity adjustment covers the period from March 8, 1985, to March 31, 1994, and will be subject to superannuation, if applicable, but is not considered to form part of the rate of pay for promotion, lateral transfer, acting pay calculations and the payment of salary based entitlements including overtime.
The second retroactive Pay Equity adjustment covers the period from April 1, 1994, to July 29, 1998, and is subject to superannuation, if applicable, and is considered to form part of the rate of pay for promotion, lateral transfer, acting pay calculations and overtime (codes 260, 261, 262, 263, 040, 049, 147).
Departments will be required to recalculate the above mentioned transactions with an effective date of April 1, 1994, or later and report additional adjustments as per the procedures in a subsequent CD.
Departments will also be required to recalculate all salary based transactions with an effective date of July 29, 1998, or later to reflect the new basic salary rates and report additional adjustments as per the procedures that will be outlined in a subsequent CD.
3.2.2. Ongoing Equalization Allowance
The ongoing Equalization Allowance that is currently paid with the regular pay under entitlement code 144 for employees in the affected groups is to be stopped effective July 29, 1998. All employees currently in one of the affected groups will have their basic rate of pay revised to include the Pay Equity adjustment amount as specified in the agreement as well as any ongoing Equalization Allowance. The process and scheduling of the change to basic pay rate and the stopping of the ongoing Equalization Allowance, entitlement code 144, for employees in the affected groups will be described in a subsequent CD.
3.2.3. Separation Benefits
Employees who were Struck-off Strength (SOS) prior to July 29, 1998, are entitled to a Separation Benefits based on the SOS reason for the number of weeks as listed in the table included in the agreement.
Severance payments and termination allowances paid to former employees that were SOS on or after July 29, 1998, must be recalculated and additional transactions must be reported by departments to adjust the amounts previously paid to reflect the revised basic rate of pay. Further details regarding the processing of these adjustments will be included in a subsequent CD.
3.2.4. 5% Lump Sum Payment in Lieu
The agreement includes a 5% Lump Sum Payment in Lieu that is to be calculated and paid on all Pay Equity adjustment amounts owing for the retroactive period from March 8, 1985, to March 31, 1994. This lump sum is in lieu of recalculation of acting, promotion and overtime that may have occurred during this period. The 5% will be automatically calculated by the system and added to every retroactive Pay Equity adjustment where the effective to date is prior to April 1, 1994.
The 5% Lump Sum Payment amount will also be automatically calculated on Pay Equity overpayments that may be reported by departments with an effective to date prior to April 1, 1994. Further details on this adjustment will be included in a subsequent directive that will be published in January 2000.
The Pay Equity agreement includes the calculation and payment of interest on all of the retroactive amounts owing. Currently, the interest is tentatively scheduled for processing in the late fall of 2000. Further instructions on this process will be published as details are confirmed.
Employees must meet the following requirements based on the agreement between TBS and PSAC to be eligible for a Pay Equity adjustment:
- Employed by a TBS department or agency listed in Schedule 1, Part 1 of the PSSRA;
- Service in one of the following affected groups during the retroactive period, i.e. CR, LS, EU, DA, ST and HS groups.
The following eligibility criteria have changed from the original requirements as described below.
3.3.1 Leave Without Pay (LWOP)
Pay Equity adjustment amounts must be reduced by periods of LWOP.
EXCEPTION: LWOP - Maternity reason code "K". Paid maternity leave is to be considered as service and the adjustment must include this period in the calculations. Paid maternity leave refers to the maternity benefits paid for a maximum of 17 weeks of leave. Maternity leave that extends beyond 17 weeks or where benefits were not paid is to be considered as LWOP and will reduce the Pay Equity adjustment to be paid.
Employees who were acting (code 002) in one of the affected groups during the retroactive period, whether or not their substantive is in one of the affected groups, are eligible to the Pay Equity adjustment based on their acting classification.
Employees who were in one of the affected groups during the retroactive period, but who were acting (code 002) outside of one of the affected groups are not eligible to the Pay Equity adjustment during the period in which they were acting.
Employees whose Assigned Work Week (AWW) is less than the Standard Work Week (SWW) for the classification are to be paid the Pay Equity adjustment prorated to the number of hours worked in one of the affected groups during the retroactive period.
188.8.131.52 Disability Insurance (DI) and Long Term Disability (LTD)
The insurer will be responsible to adjust the DI and LTD benefits according to information supplied by the departments as per the Pay Equity agreement approved by the CHRT on November 16, 1999. Further instructions on these benefits will follow.
184.108.40.206. Death Benefits (DB)
For employees who are SOS after December 1, 1999, the DB payable is to be calculated on the revised basic rate of pay including the Pay Equity adjustment.
3.4. DB, DI and LTD Premiums
DB, DI and LTD monthly premiums are to be calculated on the revised rate of pay including the Pay Equity adjustment effective the month of December 1999. Since the revised rates of pay will not be updated for December 1999, arrears will need to be calculated and recovered for the months missed until the regular pay is adjusted. Detailed instructions along with the schedule for update to regular pay will be included in a subsequent CD.
The annual Pay Equity adjustments are listed in Appendix A - Pay Equity Rates. These amounts must be paid based on the time employed, less the LWOP, prorated to the hours worked in one of the affected groups. Employees are to be paid the entitlement for the retroactive period where their actual classification reflects service in one of the affected groups, either acting or substantive (see section 3.3.2).
All salary based allowances such as overtime (codes 260, 261, 262, 263), Paid Compensatory Time (code 040), Adjustments to Compensatory Leave Earned at a Higher Rate (code 147) and Additional Hours for Part-time Employees (code 049) are to be adjusted as part of the Pay Equity retroactivity effective from April 1, 1994.
4.1 The system will automatically produce reports, including those previously produced in December 1997, by Bargaining Unit Designator (BUD) code to help departments manage and verify retroactive payments that will be produced by the system.
The reports, as listed below, will be produced and sent to the employee's most recent employing department according to the Paylist Address Control file.
- 1985-89 Pay Equity Account Report (section 4.1.1)
- Pay Equity Account Select Report (section 4.1.2)
- No Master Account Report (section 4.1.3)
- Dual Remuneration Report (section 4.1.4)
- Educational Leave Report (section 4.1.5)
A description of the various reports being produced in January 2000 follows.
4.1.1. 1985-89 Pay Equity Account Report (Appendix B)
The system will produce this report by BUD code to identify accounts with service during the period from March 8, 1985, to March 31, 1989, in one of the affected groups.
4.1.2. Pay Equity Account Select Report (Appendix C)
Lists will be produced by BUD code to identify accounts with service and/or employment periods after April 1, 1989, including LWOP records in one of the affected groups. This report can be used to verify the accuracy of the historical information that will be used to produce the automated payment.
4.1.3. No Master Account Report (Appendix D)
This report will be produced by BUD code to identify affected accounts where no Master Employee Record (MER) exists on the Regional Pay System (RPS).
Departments are required to create a TOS transaction, using employee type X, and an SOS transaction for these accounts, with each action carried out in different updates, to create the employee's account in the RPS. The TOS and SOS transactions must be processed prior to the Pay Equity adjustment and in the same pay period (PP) to ensure that no regular pay cheque is produced.
4.1.4. Dual Remuneration Report (Appendix E)
This report lists the affected accounts by BUD with dual employment, where an employee is on extended LWOP with one department and appointed to a secondary position in the same or different Department or Pay Office (PO).
These reports will be forwarded to both departments for further adjustments to the Pay Equity payment where applicable.
If dual employment is identified, the substantive department will be required to communicate with the secondary department to determine the employee's entitlement according to the criteria listed above. Refer to Section 5-10 of the Personnel-Pay Input Manual (PPIM) for a definition of dual employment.
If the employee has since returned to work with the substantive department and was a contributor with the secondary department, a refund of superannuation using a PAC 77R (batch) or an SDR screen (on-line) may be required since this will be charged on the period of LWOP with the substantive department as well.
The substantive department will be responsible to advise the PO of any action that is to be taken.
4.1.5. Educational Leave Report (Appendix F)
A list of all occurrences of Educational Allowance (code 077) for accounts during the retroactive period will be produced and forwarded to departments to ensure that these periods of LWOP are not included in the calculation of the retroactivity. Departments will also be responsible for reporting the revised Educational Allowance for employees in the affected groups.
4.2. Pro forma
Pro forma will be produced by BUD code and distributed according to the employee's current location. Departments should take note that a maximum of 200 lines per account per RPS update exists; therefore, the number of lines entered in one run should be controlled.
If this maximum is exceeded, the payment will reject to the PO for further action which may delay the payment. Subsequently, the retroactivity lines will be reentered by the PO in different updates and more than one cheque will be issued for the period reported.
For part-time accounts the retroactivity should be reported in hours by the department with a maximum of 999.99 hours per line. The RPS will reject any transaction where this maximum is exceeded to the originator.
4.2.1. Pay Equity 1985-89 Input (Appendix G)
Pro forma will be produced on January 14, 2000 for the reporting of the retroactive period from March 8, 1985, to March 31, 1989, for all affected employees.
These pro forma are bing provided for reference purposes only and are not to be used as input. Input procedures will be included in a subsequent CD.
4.2.2. Pay Equity 1985-1998 Input 7A (Appendix H)
Pro forma will also be produced and distributed to the most current employer on January 14, 2000, for employees with arrears service (7A) from April 1, 1989, to date.
These pro forma are bing provided for reference purposes only and are not to be used as input. Input procedures will be included in a subsequent CD.
4.2.3. Defunct Departments
For employees who were SOS during the retroactive period with a department that no longer exists, cheques will be produced under the defunct department's acronym and sent to the responsible department as appointed by TBS. A list of the defunct departments and the parent organizations responsible for these accounts can be found at the following addresses:
- Internet - The Public Sector Equitable Compensation Act -- Internet
- GENet - The Public Sector Equitable Compensation Act
Since security is no longer in place for defunct departments, on-line access will not be available for these accounts. Input must be done via batch mode.
4.2.4. Transfers to Separate Employers/Agencies
Where an employee was transferred to an organization or agency outside of PSSRA 1.1 using Transfer in and Transfer out transactions, the Treasury Board department personnel will receive a reject message U63 (SOS Account Has Transfer Information). For these cases the department will be required to input a TOS transaction using employee type X and an SOS transaction in different updates, but in the same pay period (PP).
Once these transactions have processed, the Treasury Board department personnel will be required to re-input the rejected transactions.
Where the transfer process was accomplished with a TOS and an SOS, the payment will be issued by the TBS department.
220.127.116.11. Exceptions - Canada Customs and Revenue Agency and Parks Canada
Since the above noted became agencies outside PSSRA 1.1 after July 29, 1998, the employees are to be considered employed under PSSRA 1.1 and the Pay Equity adjustment agreement applies to them as well. In these instances, the Pay Equity adjustments owing from the effective date of becoming an agency to date will not be automatically produced at the same time as other TBS employees. Further details will be included in a subsequent CD.
5.1 Any request for information regarding the foregoing should be addressed to your PWGSC Compensation Services Office.
Original Signed by
Government Operational Service
Appendix A - Pay Equity Rates
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