ARCHIVED CD 2000-014

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May 2, 2000

SUBJECT: Recruitment and Retention Allowance--Change in Pensionability of the Lump Sum Payment


1.1. The purpose of this directive is to advise you of the change to the lump sum payment of the Recruitment and Retention Allowance paid as a result of the collective agreement for the Aircraft Operations Group (AO) signed on December 6, 1999.

1.2 In this text, use of masculine is generic and applies to both men and women.


2.1 This directive should be read in conjunction with Compensation Directive 2000-005 dated February 18, 2000, entitled "Aircraft Operations Group--Recruitment and Retention Allowance."

2.2. When the AO Group collective agreement was signed, it was deemed that the lump sum portion of the Recruitment and Retention Allowance was subject to pension contributions.


3.1. A review of the pensionability of the lump sum ($750), Recruitment and Retention Allowance, paid to employees on February 22, 2000, was performed. It was determined that the lump sum amount is not to be considered as part of salary for Public Service Pension purposes and therefore a refund of the pension contributions will be required.

Please note that the on going payments issued under entitlement code 234 are pensionable and therefore require no pension refund.


4.1. Refund of Pension Contributions

Public Works and Government Services Canada (PWGSC) Compensation Services Offices (Pay Offices) will refund the pension contributions for all ($750) lump sum payments issued under entitlement code 234 . The superannuable gross element will need to reflect the amended amount. The Compensation Services Offices are also responsible for amending the salary/service history to reflect the correct information.

Compensation Advisors in client departments are responsible for updating the Contributor Salary Maintenance with the correct information.

A hard copy listing of the accounts that received payments under entitlement code 234 will be sent to the Compensation Services Offices. Please ensure that the refund of pension contributions is on the $750 lump sum payment only.


5.1. Any request for information regarding the foregoing should be addressed to your PWGSC Compensation Services Office.

Original Signed by
G. Blacker

R. Jolicoeur
Director General
Compensation Sector
Government Operational Service

Reference: Bargaining Unit Designator (BUD) 401
ENT 234