ARCHIVED CD 2004-011

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July 13, 2004

SUBJECT: New Deduction Code for Foreign Service Posting Loans


1.1 The purpose of this directive is to provide compensation advisors with information regarding a new deduction code for the reimbursement of Foreign Service Posting Loans - Biweekly.

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


2.1 Foreign Affairs Canada (FAC) and International Trade Canada (ITCan) have completed a new posting loan system that enables the deduction of posting loan repayments on a biweekly basis including the pay period plus (PP+), as directed under the Foreign Service Directives (FSD) 10 - June 2001. At present posting loan deductions are processed in the Regional Pay System (RPS) on a semi-monthly basis.


3.1 Under FSD Section 10.08, where a posting loan has been granted in accordance with FSD Section 10.02, the loan shall be repaid in equal biweekly installments of blended principal and interest. Foreign Service Posting Loans for employees who took a posting loan after April 1, 2004, are to have their loan repayments deducted on a biweekly basis. Until advised otherwise by FAC and ITCan, the existing Foreign Service Posting Loans will continue to be deducted on a semi-monthly basis.

3.2 A new deduction code 5A2 "Foreign Service Posting Loan - Biweekly" has been established in the RPS for loan repayments to be collected on a biweekly basis, including the PP+.


4.1 The new deduction code 5A2 "Foreign Service Posting Loan - Biweekly" will be in effect for the first pay of July 2004 (Pay Period 13).

Compensation advisors are to use the new code for employees who took a posting loan after April 1, 2004.

Compensation advisors are to start the deductions using a rate base "7" with the effective date as the first day of the pay period.


5.1 Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Original Signed by
P. Laviolette

R. Jolicoeur
Director General
Compensation Sector
Finance, Accounting, Banking and Compensation

Reference(s): CJA DED 5A2