ARCHIVED CD 2006-008

This Web page has been archived on the Web.

April 26, 2006

SUBJECT: New Entitlement code - Functional Supervisory Differential

1. PURPOSE

1.1 The purpose of this directive is to provide information on the new Functional Supervisory Differential allowance described in the Veterinary Medicine (VM) group collective agreement, Bargaining Unit Designator (BUD) code 99517, signed on November 15, 2005, between the Canadian Food Inspection Agency (CFIA) and the Professional Institute of the Public Service of Canada (PIPSC).

2. BACKGROUND

2.1 Article G3.01 in the VM collective agreement states that, effective January 1, 2006, when an employee classified at the VM-01 level is assigned functional supervisory responsibilities on the evening or night shift, during which time there is no VM-02 supervisor on site, that employee will receive a functional supervisory differential for all hours worked, including overtime hours, at a rate of 4% of his straight time hourly rate of pay.

3. POLICY

3.1 The Functional Supervisory Differential allowance is a lump sum amount payable to an employee classified at the VM-01 level who is subject to the VM collective agreement and is assigned functional supervisory responsibilities on the evening or night shift, during which time there is no VM-02 supervisor on site.

3.2 This allowance is considered to form part of the salary for pension purposes for hours worked during the normal work day, however, the allowance is not considered to form part of the salary for pay purposes. Consequently, the allowance must be reported separately for regular hours worked, which are subject to pension, and for overtime hours worked, which are not subject to pension. Two new entitlement codes have been created for reporting purposes. The allowance is not subject to the 10 working days eligibility rule.

3.3 Entitlements related to pay situations (such as promotions or acting pay) will not be recalculated. This allowance is not to be used in calculating the 4% vacation pay or the premium pay in lieu of statutory holidays for part-time employees.

4. PROCEDURES/INSTRUCTIONS

4.1 Code 1B6 - Functional Supervisory Differential - Superannuable

4.2 Effective April 4, 2006, entitlement code 1B6 "Func. Sup. Diff." will be available in both the Regional Pay System (RPS) and the Contributor System (CS). This entitlement code is used to report the allowance payable relative to the employee's scheduled hours of work only.

4.3 The CFIA is responsible for reporting this allowance for all eligible employees at the VM-01 level, using the ENC screen with entitlement code 1B6 and rate base 0. The amount to be reported is 4% of the employee's straight time hourly rate of pay for each regular hour worked.

4.4 Entitlement code 1B6 is subject to the following deductions:

• Federal/Provincial Income Tax
• Employment Insurance (EI)
• Quebec Parental Insurance Plan (QPIP)
• Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)
• Disability Insurance Plan (DI) and Long-term Disability Insurance Plan (LTD)
• Public Service Pension Plan (PSPP)
• Supplementary Death Benefit Plan (SDBP)

4.5 Code 1B8 - Functional Supervisory Differential - Non-superannuable

4.6 Effective April 4, 2006, entitlement code 1B8 "Func. Sup. Diff. NSUP" will be created in both the RPS and CS. This entitlement code is to be used to pay the portion of the Functional Supervisory Differential relative to overtime hours worked. The CFIA will report this allowance for overtime hours worked using the ENC screen with entitlement code 1B8 and rate base 0. The amount to be reported is 4% of the employee's straight time hourly rate of pay for each hour of overtime worked.

4.7 The new entitlement code 1B8 is subject to the following deductions:

• Federal/Provincial Income Tax
• Employment Insurance (EI)
• Quebec Parental Insurance Plan (QPIP)
• Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)

4.8 Please refer to sections 3-3-3, 4-4-18-3-1, 4-4-18-3-2, 14-6 and 14-10-2 of the Personnel-Pay Input Manual (PPIM) for pay input requirements.

4.9 The PPIM will be updated to incorporate the relative information contained in this directive.

5. INQUIRIES

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
Tom Meyers

Brigitte Fortin
Acting Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): ENT codes 1 B6 and 1 B8