ARCHIVED CD 2000-008
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Note This document has been modified. The changes are identified by a vertical line "|". Revision (|)
- | Appendix A - List of New Deduction Codes (Revised February 16, 2009)
- Appendix B - Pension Benefits Report - Pension Benefits Division Act
March 21, 2000
SUBJECT: Bill C-78--Implementation of the PSPF effective April 1, 2000
1.1 The purpose of this Compensation Directive is to provide you with information regarding the implementation of the Public Service Pension Fund (PSPF) and the various changes required to accommodate the new pension fund under the Public Service Superannuation Act (PSSA). System enhancements are also identified as part of this directive.
This Directive should be read in conjunction with Superannuation Administration Manual (SAM) Special Bulletin 1999-05 dated April 20, 1999.
1.2 In this text, use of the masculine is generic and applies to both men and women.
2.1 Bill C-78 provides for the creation of a new pension fund whereby plan contributions will be invested in the financial markets.
As a result, contributions and benefits must be identified as PSSA Account or PSPF separately, accurately and in greater detail.
Bill C-78 does not apply to members of the following pension plans:
- Lieutenant-Governors Superannuation Act, Diplomatic Service (Special) Superannuation Act,
- Teachers Superannuation Act, Judges Act or Tax Review Board Act and
- Members of Parliament Retirement Allowances Act.
3.1 In order to facilitate the implementation, current contributions to the Public Service Superannuation (PSS) Account will cease and will be credited to the PSPF effective March 30, 2000, for Current accounts (7C) and Arrears paid accounts (7A or 7B) and effective April 1, 2000, for Monthly paid accounts (6C). Theses dates will be referred to as the "effective date" hereunder.
PSS Account may be referenced as Fund 1 or PSSA 1. PSPF may be referenced as Fund 2 or PSSA 2. Employees with 35 years of service will continue to contribute at a rate of 1%. Contributions required prior to the effective date will be remitted to the PSS Account. Contributions required on or after the effective date will be remitted to PSPF.
Employees in Operational Service will continue to pay the additional premiums required for Operational Service (i.e. 1.25% for Correctional Service Canada (CSC) and 2% for Air Traffic Controllers (ATC)).
Contributions for Leave Without Pay (LWOP) deficiencies where the LWOP occurred prior to the effective date will be paid into the PSS Account. Deficiencies for LWOP where the LWOP occurred after the effective date will be credited to the PSPF.
Contributions for past service elections, reciprocal transfer agreements (RTAs), pension transfer agreements (PTAs) or pension surrenders, where the election, transfer or surrender was made prior to April 1, 2000, will be credited to the PSS Account. Contributions for past service elections, RTAs, PTAs or pension surrenders, where the election, transfer or surrender was made on or after April 1, 2000, will be credited to the PSPF.
Elections made on or after April 1, 2000, (PSPF) must also be broken down to display elections at the single rate and elections at the double rate. New deductions codes have been created for this purpose and are displayed in Appendix A of this directive.
Where an individual elected not to count his LWOP, and later signs an election to count the leave period which is dated on or after April 1, 2000, the service will be credited to PSPF.
Contributions, including retroactive contribution recovery and/or adjustments in respect of PSS Account service will be credited to that account.
Benefits accrued prior to the effective date will be charged to the PSS Account. Benefits accrued on or after the effective date will be charged to the PSPF. Retirement Compensation Arrangements (RCA) benefits will continue to be charged to the RCA Account.
All benefit entitlements such as: Returns of Contributions (ROCs); Pension Payments; Transfer Values (TVs); Pension Benefit Division Payments and Survivor Benefits must be clearly identified for accounting purposes as relating to PSS Account or PSPF. Although PSSA 1 and PSPF Funds are identified separately, one blended payment will be issued to the recipient.
The Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) reduction has to be apportioned between the two funds based on the CPP/QPP service attributable to each.
Where an employee has part-time service, part-time benefits, will require a separate "adjusted average" for the PSS Account and the PSPF.
Instructions are provided in the subsections outlined below.
4.1. PAY SYSTEMS
4.1.1. THE REGIONAL PAY SYSTEM (RPS) AND ON-LINE INPUT
The RPS screens have been modified to reflect the PSSA 1 and PSSA 2 Funds. New codes have been created for LWOP deficiencies and elections. All PSSA 1 and PSSA 2 codes are outlined in Appendix A.
Payments and recoveries of superannuable entitlements such as bilingual bonus, acting pay, etc. (refer to SAM 2.8.5) which overlap PSSA 1 and PSSA 2 periods must be split so that contributions can be credited to the appropriate Fund.
As of March 27, 2000 , two separate transactions will be required for all transactions when the period of retroactivity overlaps the effective date (7A/B/C is March 30, 2000, and 6C is April 1, 2000). The first is a closed "PSSA 1 period" with an effective "to date" which corresponds to the end date of the pay period prior to the date of the changeover; the second is a separate entry for the PSSA 2 period starting on the effective date. The edits in the on-line system will not allow the input of overlapping periods.
| When reporting a promotion with an effective date prior to Coming Into Force (CIF) for all 7A, part-time or irregular shift accounts where the Pension Type code equals 01, 02, 03, 04, 10, 13 or 18, the number of hours/days/weeks indicator must be left blank. If the hours/days/weeks indicator is completed, the transaction will reject with message "PD130 H/D/W MUST BE BLANK FOR THIS EMPLOYEE TYPE".
| The Pay Action Code (PAC) 06 will update the employee's master employee record and the Pay Office will issue supplementary payments in accordance with the Fund 1/Fund 2 breakdown.
| When reporting a PAC 05 for a full time employee (Employee Types: A, B, C, D, M, K, P, L, R or X) and the "former rate/amount" is different from the new "rate amount" (ex: a lateral transfer) and where the "effective from date" is prior to CIF for the new Fund, then the effective "to date" must be present and equal to the last day of the pay period prior to CIF. A separate PAC 05 is required to report the period effective from the CIF date (open ended).
Pay actions which do not require an end date, such as Temporarily struck-off strength (T-SOS), revert to basic pay, do not require a split as the RPS will automatically credit the contributions to either PSSA 1 or PSSA 2.
Ongoing entitlements and recoveries already in effect do not need to be adjusted. The RPS will automatically credit the ongoing entitlements, recoveries or adjustments to PSSA 2 on the effective date of the pay period of the changeover.
When reporting a superannuable entitlement which overlap PSSA 1 and PSSA 2 and to which the 10-day eligibility rule applies, payment must be provided for the full month, if the employee works 10 days in that month. However, for contribution purposes, the Compensation Advisor must report the entitlement with an end date of March 29, 2000. Since these entitlements are only effective the first of a month, the Compensation Advisor must issue a supplementary payment for March 30 to 31, 2000, and recommence the entitlement effective April 1, 2000. The Compensation Advisor must then advise the Pay Office by Fax to update the Salary/Service History for the period from March 30 to 31, 2000, (see Example 3).
- Example 1: Reporting of a superannuable entitlement with no retroactivity
Acting Pay effective March 30, 2000, reported in Pay Period 08 (7C)
18C002 30 03 00 1 (open end date) PSSA 2
Acting Pay effective April 1, 2000 reported in Pay Period 04 (6C)
18C002 01 04 00 1 (open end date) PSSA 2
No split is required as the transaction is reported in the Pay Period during which the changeover to PSSA 2 occurs, and the effective from date is equal to the Pay Period start date.
- Example 2: Reporting of a superannuable entitlement with retroactivity overlapping the date of the changeover
Acting Pay reported in Pay Period 09 (7C)
18C002 17 02 00 1 to 29 03 00 2 -- 30 days (PSSA 1 final Pay Period)
18C002 30 03 00 1 to 12 04 00 2 --10 days (PSSA 2 - Pay Period 08 in which changeover occurs)
Acting Pay reported in Pay Period 04 (6C)
18C002 17 02 00 1 to 31 03 00 2 -- 32 days (PSSA 1 final Pay Period)
18C002 01 04 00 1 to 14 04 00 2 -- 10 days (PSSA 2 - PP04 in which the changeover occurs)
As the transaction reported overlaps the date of the changeover from PSSA 1 to PSSA 2, the transactions must be split so that the pension contributions can be credited to the correct Fund.
- Example 3: Reporting of a superannuable entitlement overlapping the date of the changeover which can only commence on the First of the month
18C141 01 03 00 1 to 29 03 00 2 -- 21 days (PSSA 1 final pay period)
71C141 30 03 00 1 to 31 03 00 2 -- 2 days (PSSA 2 - EAJ)
18C141 01 04 00 1 (open ended) (PSSA 2)
Although the transaction end date is March 29, 2000, the 10-day eligibility rule applies and payment must be made for the full month. The adjustment will be made by the Compensation Advisor by using the EAJ screen for the missing two days (March 30 and March 31, 2000). Following notification from the Compensation Advisor by Fax, the Pay Office will manually update the Salary/Service with the entitlement for the period from March 30, 2000, to March 31, 2000.
- Example 4: Reporting a recovery of a superannuable entitlement
18S144 effective 16 03 00 1 reported in Pay Period 09 (7C)
18R144 16 03 00 1 to 29 03 00 2 -- Rate base "0" amount $38.10 (PSSA 1)
18R144 30 03 00 1 to 12 04 00 2 -- Rate base "0" amount $38.10 (PSSA 2)
When the recovery period overlaps the changeover date, the amount of the recovery that is credited to the PSSA 1 must be calculated and reported separately. A separate transaction is required for the period after the changeover.
- Example 5: Reporting of periods of LWOP
15C301 28 03 00 1 to 29 03 00 2 -- 2 days reason "A"
15C301 30 03 00 1 to 31 03 00 2 -- 2 days reason "A"
LWOP which is not pensionable such as Strike (M) must also be reported separately as it reduces superannuable earnings in the period for which it is being reported.
It is recognized that the requirement to separate transactions will temporarily increase the workload for the first few pay periods. However, over time, the requirement to separate transactions will diminish as the period of retroactivity will form part of the PSPF in the majority of cases.
4.1.2. Retaken on strength (RE-TOS) CALCULATING SYSTEM
Version 2.3.1 of the RE-TOS Calculating System must be used in order to calculate LWOP deficiencies. The deficiencies will automatically be calculated and attributed to PSSA 1 or PSSA 2 based on the period of the LWOP. RE-TOS will also provide the deduction codes required for PSSA 1 periods and the new deduction codes required for PSSA 2 periods (Appendix A).
Example: 7C Account
- Period of single rate LWOP: from February 1, 2000, to April 30, 2000
- Period of double rate LWOP: from May 1, 2000, to May 31, 2001
- 01 02 00 1 to 29 03 00 2 -- Single Rate low (PSSA 1 - deduction code 581)
- 30 03 00 1 to 30 04 00 2 -- Single Rate low (PSSA 2 - deduction code 760)
- 01 05 00 1 to 31 05 01 2 -- Double Rate high (PSSA 2 - deduction code 763)
LWOP deficiencies, paid while the employee is still on leave, must be clearly identified as PSSA 1 or PSSA 2 when remitted to the Superannuation Directorate.
The PWGSC-TPSGC 2480 "Election Not to Count Leave Without Pay as Pensionable Service" must reflect deficiencies paid credited to each Fund. The amended form will be available shortly and you will be notified via Forms Advice when they are ready. Until the amended forms are available, the Pay Office will be required to note deficiencies separately.
The PWGSC-TPSGC 2481 "Statement of Option - Leave Without Pay" will remain unchanged.
It will not be necessary for the employee to complete separate forms for PSSA 1 and PSSA 2.
4.1.3. LIFE TO DATE CONTRIBUTIONS
The "TO-DATE" displayed on the "Superannuation Sub-Set Screen (SSS)" field will only include PSSA 1 contributions.
Effective April 1, 2000, the total contributions "To date" will be managed by the Contributor System on a daily basis. This information will be displayed in the Contributor Inquiry Section.
4.2. PENSION SYSTEMS
4.2.1. CONTRIBUTOR INQUIRY SYSTEM
The Contributor Inquiry has been amended to reflect Fund 1 and Fund 2 information. The Summary screens will provide the total benefit credited under both Funds. Separate Screens have been created to display the breakdown between Fund 1 and Fund 2.
|Contributions Summary||CON||Revised||Contains all Fund 1, Fund 2, RCA 1, RCA 2 and interest applicable to each Fund.|
|PSSA Contributions||CNP||New||Provides details of Fund 1 and Fund 2 contributions as well as interest. Linked to the Contributions Summary screen.|
|RCA Contributions||CNR||New||Provides Fund 1 and Fund 2, RCA contributions, if applicable, and interest. Linked to the Contributions Summary screen.|
|SOS Summary||SOS||Revised||Displays all SOS records. Highlighted SOS records will display payment details.|
|SOS Details||SOD||New||When selected, displays the lump sum detail for Fund 1, Fund 2, RCA 1, RCA 2 and interest attributed to each.|
|PSSA Fund 2: $ XXXX.XX||$XXX.XX|
|PSSA Fund 1: $ XXXX.XX||$XXX.XX|
|RCA Fund 2: $ XXXX.XX||$XXX.XX|
|RCA Fund 1: $ XXXX.XX||$XXX.XX|
The Entitlement Summary Screen (SUM) will now display the Adjusted PSSA Average, the Adjusted RCA Average and the Adjusted CPP/QPP Average salaries for part-time employees. This screen will only display information when a SUBMIT for benefit has been processed.
The Element Help (F4) function key will provide guidance to the users on the completion of the new and revised screens. The Page Help (F3) function key will not provide any details after April 1, 2000.
4.2.2 PENSION SUPPORT SYSTEM (PSS)
The PSS will automatically calculate Fund 1 and Fund 2 benefit information. The Summary screens will provide the total benefit credited under both Funds. Separate screens have been created to display the breakdown between Fund 1 and Fund 2.
|Pension Calculation Summary||CAL||Revised||Displays total benefits accrued under Fund 1 and Fund 2.|
|Pension Calculation Fund 1||CL1||New||Displays Fund 1 information.|
|Pension Calculation Fund 2||CL2||New||Displays Fund 2 information.|
|Transfer Value Calc Summary||TVC||revised||Displays Fund 1 and Fund 2 combined values.|
|Transfer Value Calc Fund 1||TC1||New||Displays Fund 1 value.|
|Transfer Value Calc Fund 2||TC2||New||Displays Fund 2 value.|
It is important to note that elections that are in progress (deductions commenced but not yet finalized by the Superannuation Directorate) may be included in pension calculations in the Elective Service area. A message will be displayed advising that the Election in Progress is included as part of the calculation.
The Page Help (F3) function key and the Element Help (F4) function key have been updated to provide guidance to users on the completion of the new and revised screens.
4.2.3 ESTIMATES OF COST
There will be no change in procedures. Compensations Advisors will not be required to separate the period for estimation as the date of the election determines the Fund to which the service and contributions will be credited.
Estimates will provide lump sum payments and monthly instalment costs at the single and the double rates.
Estimates that are processed by the Superannuation Directorate will be displayed on a revised PWGSC-TPSCG 2057 "Estimate of Cost for Elective Pensionable Service". Separate estimates will be provided for each period of service with the appropriate cost either at single or at double rate.
The Estimate of Cost Calculation Screen (CAL) has been modified to display the Assigned Work Week (AWW) and Scheduled Work Week (SWW).
When an employee completes an election on or after April 1, 2000, Compensation Advisors must ensure that the new deduction codes for PSSA 2 at the single or double rate are used when starting the monthly deductions. The codes are listed in Appendix A .
Lump sum payments for periods of elective service must clearly reflect the correct Fund and the breakdown by single and double rate.
The PWGSC-TPSGC 2097 "Elective Service Notice" will now display the SWW and the AWW as well as the monthly deduction requirement at single and double rate. Based on the date of election either Fund 1 or Fund 2 will be displayed.
The PWGSC-TPSGC 2092 "Election to Surrender Benefits" has been revised and should be used for all surrenders made on or after April 1, 2000. This will ensure the allocation of the funds to the proper pension account.
4.2.5 PENSION BENEFITS DIVISION SYSTEM (PBDS)
The PBDS will automatically calculate Fund 1 and Fund 2 benefit information.
|Contribution Calculation||CON||Revised||Used to calculate contributions to be divided. Contributions can now be captured quarterly for non-vested employees.|
|Special Process||CSP||New||Used for part-time employees to calculate Fund 1 and Fund 2. This screen will also be used by the Superannuation Directorate for special cases.|
|ATC and CSC||CAC||New||Used for ATC and CSC employees with operational service.|
|Fund information||CFU||New||Provides pension division information by Fund 1, Fund 2, Operational Fund 1 and Operational Fund 2.|
|Pension Division Request||CAR||Revised||The cohabitation period will be broken down into Fund 1 and Fund 2 (system generated). This screen will also show the date on which the employee reached 35 years of pensionable service, if applicable.|
|Service Calculation||CSR||Revised||Service information must be entered by Fund (PSSA1/PSSA2, RCA1/2 and RTA) and broken down between elective service and non elective service.|
|Calculation||CCA||Revised||Displays a blended calculation.|
|Pension Benefit Report||CP1||Revised||Now provides breakdown of contributions and displays elective service/LWOP, RTA/ CFSA / RCMP , and non-elective service.|
The Page Help (F3) function keys and the Element Help (F4) function keys have been updated to provide guidance to the users on the completion of the new and revised screens.
Section 12.4 has been added to form ADM 270E "Pension Benefits Report (Pension Benefits Division Act)". This form is being revised but will not be available until late spring. In the interim, a revised copy is attached in Appendix B of this directive.
The Pension Benefits Division Act (PBDA) User Guide has been revised and will available on April 1, 2000, at the following address: Internet - PBDS Table of Contents.
The PWGSC-TPSGC 2055 "PBDA Information Request Worksheet" will also be revised. In the interim, the Superannuation Directorate will accept the current version of the form.
The Pension Division System has been enhanced and now calculates an accurate division calculation where the employee has part-time service and/or Operational Services (Correctional Service or Air Traffic Control). Such requests should therefore no longer be sent to the Superannuation Directorate.
Where an estimate for pension division includes RCA salary in excess of the PSSA salary threshold, the Pension Division System now splits the payment between PSSA 1, PSSA 2, RCA 1 and RCA 2.
4.2.6. ANNUITANT SYSTEM
The Annuitant System is used by the Superannuation Directorate to issue payments to annuitants and survivors. Although Fund 1 and Fund 2 benefits are managed separately, one blended payment will be issued to annuitants or their survivors.
4.3. STATEMENT OF EARNINGS
For the purposes of reporting contributions on payment stubs, contributions will be combined as one value and displayed in the "Superannuation" box of the Statement of Earnings.
4.4. INCOME TAX REPORTING
There are no changes to income tax reporting as the combined value of both Funds will be reported as one value.
The following manuals will be updated to reflect all Pension Reform changes:
- Superannuation Administration Manual (SAM)
- Personnel Pay Input Manual (PPIM)
- Pension Support System (PSS)
- Superannuation Procedures Manual for Personnel Offices serviced by the Regional Pay System (PER)
- Superannuation Procedures Manual for Public Service Corporations (PSC)
The amended forms must be ordered from the appropriate Printing Plant in the usual manner or may be obtained electronically.
5.1 Any request for information regarding the foregoing should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
Government Operational Service
|NAME||PSSA 1 CODE||PSSA 2 CODE|
|PSSA Fund ROC||177||286|
|PSSA Fund ROC Interest||178||287|
|RCA ROC Interest||382||294|
|PSSA Election Single Rate Current||577||758|
|PSSA Election Single Rate Arrears||578||777|
|| PSSA Election Double Rate Current||579||759|
|| PSSA Election Double Rate Arrears||579||778|
|PSSA LWOP Deficiencies Single Rate High||581||761
|PSSA LWOP Deficiencies Double Rate High||586||763
|PSSA LWOP Deficiencies Double Rate Low||587||762
|PSSA LWOP Deficiencies Single Rate Low||605||760
|RCA LWOP Deficiencies Double Rate||876||784
|RCA LWOP Deficiencies Single Rate||879||783
|RCA Elections Single Rate Current||880||779
|RCA Elections Single Rate Arrears||881||780
|| RCA Elections Double Rate Current||877||781
|| RCA Elections Double Rate Arrears||877||782
|| PSSA Superannuation Repayment CFSA||560||591
|| PSSA Superannuation Repayment RCMPSA||562||592
- Date modified: