ARCHIVED CD 2001-011

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April 4, 2001 (Revised September 27, 2001)

(Revised January 11, 2002)

SUBJECT: Financial Framework Release 3 -- Introduction of New Public Service Pension Fund Codes -- Legacy Systems

1. PURPOSE

1.1 The purpose of this directive is to describe changes to the Contributor System and the Regional Pay System (RPS), including the RE-Take-on-Strength (TOS) System. It is also to describe the introduction of eight new Deduction/Entitlement (DEDENT) codes required to support the new reporting and reconciliation criteria for the Superannuation Fund 2 as identified by the Pension Reform Project.

1.2 Public Service Superannuation Account (PSSA) is referenced as Fund 1 or PSSA 1. Public Service Pension Fund (PSPF) is referenced as Fund 2 or PSSA 2. Retirement Compensation Arrangement (RCA) is referenced as RCA 1 or RCA 2.

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

2. BACKGROUND

2.1 Fund 2, created in April 2000, was modelled after the existing Fund 1 codes. The new codes, identifying Fund 2 contributions, are in production (see Section 4 of this directive for the list of codes). The introduction of eight new codes will enable Public Works and Government Services Canada (PWGSC) to ensure that contributions have been accurately taken and accounted for according to salary-service.

3. POLICY

3.1 The RPS and Contributor System have been changed effective at the time of the first update of the year 2001. The new programs were put into production on December 15, 2000.

3.2. Supplementary Payments

The supplementary Calculate routine of the RPS will continue to calculate deductions at either the high rate or low rate depending on whether or not the pension low maximum has been reached, using existing codes 761 or 760, respectively, for current year payments.

For payments that are retroactive to a previous year, three new generated PSSA 2 deduction codes have been introduced as follows:

• PSSA 2--Retroactive Low Rate-P/Y (Code 565);
• PSSA 2-Retroactive High Rate-P/Y(Code 569);
• RCA 2--Retroactive Rate-P/Y (Code 604).

For these payments, where the effective date is before January 1, 2000, or Pay Period (PP) is Year 1, Year 2 or Year 3, the process of checking elements M930, M931 and M932 to determine if the previous year(s) maximum low rate has been reached remains the same. When the Superannuation calculation is performed at a low or high rate, as applicable, Master Employee Record (MER) element M711 is updated and the Allowances/Deductions (A/D) portion of the register file reflects the appropriate generated DEDENT code.

3.3 Leave without Pay (LWOP) and Non-Payables

Two new PSSA 2 codes have been created to calculate retroactive Leave Without Pay (LWOP) periods applicable to non-payable codes 202 and 270 as follows:

• PSSA 2--Retroactive LWOP Low Rate (Code 574);
• | PSSA 2--Retroactive LWOP High Rate (Code 580);

|  Code 574 will be generated when calculating retroactive (current and previous years) PSSA 2 for non-payable code 202. Code 580 will be generated when calculating high rate portion for non-payable code 270.

3.4 RE-TOS Calculation System

The RE-TOS Calculation System is being changed to generate the new PSSA 2 Current LWOP Deficiencies Low and High Rate codes 561 and 563, respectively, and RCA 2 LWOP Deficiencies code 585 to be used by the Pay and Pension Agent for input into the RPS. These changes will not be put into effect until the end of March 2001. Until that time, please input these new codes in place of codes 760, 761 and 783 respectively, which are produced with the current version of the RE-TOS Calculation System.

3.5 Contributor System

The Contributor System Contribution and Interest processes have been modified to accept the new DEDENT codes that are passed via the RPS Financial Information System (FIS) payment files.

The On-line Contribution Maintenance application used by the Superannuation Directorate to correct rejects will also accept input using the new DEDENT codes.

The new contribution transactions will update the Life-to-Date totals in both the PSSA 2 and RCA 2.

As well, the new transactions will be used to support new contribution accounting and reconciliation processes between the Contributor System and the Common Departmental Financial System (CDFS).

4. PROCEDURES/INSTRUCTIONS

4.1 The new DEDENT codes introduced for PSSA 2 and RCA 2 are as follows:

• PSSA 2--LWOP Deficiencies Single Rate Low (Code 561);
• PSSA 2--LWOP Deficiencies Single Rate High (Code 563);
• RCA 2--LWOP Deficiencies Single Rate (Code 585);
• RCA 2--Retroactive Rate-P/Y (Code 604);
• PSSA 2--Retroactive Low Rate-P/Y (Code 565);
• PSSA 2--Retroactive High Rate-P/Y (Code 569);
• | PSSA 2--Retroactive LWOP Low Rate (Code 574);
• | PSSA 2--Retroactive LWOP High Rate (Code 580).

5. INQUIRIES

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
R. Jolicoeur

R. Jolicoeur
Director General
Compensation Sector
Government Operational Service