ARCHIVED CD 2008-006
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March 17, 2008
SUBJECT: New Entitlement Code -- Lump Sum Payment - Executive Recruitment
1.1 The purpose of this directive is to provide information regarding the new Executive (EX group) recruitment lump sum payment described in the Directive on Executive Compensation, effective July 16, 2007. This directive is available at the following Treasury Board Secretariat (TBS) Web sites:
2.1 Appendix B in the Directive on Executive Compensation states that, effective July 16, 2007, in order to facilitate the recruitment and retention of employees in executive positions, deputy heads can authorize a one-time lump sum payment on appointment, payable at the beginning of the executive's second year in the core public administration and after successful completion of agreed-upon commitments.
3.1 The lump sum is payable to employees in executive positions classified in one of the following Bargaining Unit Designators (BUD), groups and levels:
- BUD 10200 - Executive (EX) group,
- levels 1 to 5; and BUD 22900 - Defence Scientific Service (DS) group,
- levels 7A, 7B, and 08.
3.2 The lump sum is established within the following two limits:
- 10% of the salary maximum of the position for EX-01, EX-02, EX-03, DS-7A, DS-7B,
- 15% of the salary maximum of the position for EX-04, EX-05, DS-08.
3.3 A part-time employee will be eligible for this lump sum payment prorated to their weekly hours of work versus the normal hours of work for full-time employees.
3.4 This payment is not considered part of salary for pay purposes. As a result, entitlements related to pay situations (such as promotions or acting pay) will not be recalculated. This payment is not to be used in calculating the 4% gratuity or premium pay in lieu of statutory holidays. This entitlement is not subject to the 10 working days per month eligibility rule.
4.1 The New entitlement code 1D3 "Lump Sum Payment - EX Recruitment" was created in the Regional Pay System (RPS) on December 21, 2007.
4.2 This lump sum payment is subject to the following deductions:
- Federal/Provincial Income Tax
- Employment Insurance (EI) premiums
- Quebec Parental Insurance Plan (QPIP) contributions
- Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions
- Contributions in accordance with the Public Service Superannuation Act (PSSA)
4.3 The compensation advisor is responsible for reporting this one-time payment by completing an "Entitlement Commence" (ENC - Pay Action Code (PAC)18C) transaction with entitlement code 1D3, rate base 0.
4.5 The PPIM will be updated to incorporate the relative information contained in this directive.
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
Accounting, Banking and Compensation
Reference(s): ENT 1D3
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