ARCHIVED CD 2009-010
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April 27, 2009
SUBJECT: New Compensation Web Application and New Training Module for Leave with Income Averaging
1.1 The purpose of this directive is to provide information regarding the new Compensation Web Application (CWA) and the new training module to assist compensation advisors (CAs) and pay and pension agents (PPAs) in the processing of leave with income averaging (LIA) arrangements.
The 2009-2010 training calendar for Public Works and Government Services Canada (PWGSC) Compensation Sector will offer a three-day LIA course (PA-15) focusing on the administration of various simple and complex LIA cases.
A new LIA Web module, available as of April 30, 2009, explains step-by-step how to start, change or stop a LIA arrangement. Reference material, reporting requirements, forms, and case samples for full and part-time employees are available for each of these three activities. An enhanced "Gross-to-Net Calculator for Regular Pay" provides salary reduction and entitlement estimates, as well as net pay calculations for full and part-time employees, and is accessible through the existing CWA.
2.1 The LIA option was first introduced in 1995 as part of the Program Review and subsequently expired on June 22, 1998. It was later reintroduced and approved by Treasury Board ministers on February 1, 1999.
Employees on LIA are on leave without pay (LWOP) for a minimum of 5 weeks and a maximum of 3 months, over a specific 12-month period. Participating employees' salary entitlements are reduced accordingly and averaged over the full 12 months (26 pay periods). Nevertheless, pension and benefit coverages, as well as premiums or contributions remain unchanged.
LIA agreements have grown in popularity in recent years, as more and more employees seek out flexible work arrangements to help them achieve a better balance between their personal and professional responsibilities. LIA arrangements are subject to managerial approval and operational requirements.
3.1 The policy on LIA is available on the Treasury Board Web site.
4.1 The LIA training module will be offered as part of the 2009-2010 training calendar. The three-day session will cover many of the complex situations that arise in the administration of LIA.
4.2 The new LIA Web module is activity event driven, and provides step-by-step explanations of the process to follow when starting, changing, or stopping LIA arrangements. Reporting requirements for data input, responsibilities between CAs and PPAs , frequently asked questions, case samples, and links to relevant existing documents, including the Personnel-Pay Input Manual (PPIM), are available and easily accessible.
4.3 The secure "Gross-to-Net Calculator for Regular Pay" Web site has been enhanced to calculate LIA reduced salaries, amendments to reduced salaries, and net pay. As is the case with other CWA , estimates are calculated using actual employee data lending an additional measure of confidence to the employee's decision making process.
4.4 CWA users can access this new tool via the PWGSC-TPSGC Compensation Sector Web site . To begin, on the Welcome page, select "Compensation Advisor" below the "Information For" menu on the right hand side of the screen, then select "Compensation Tools", and click on "Continue". This will open the Welcome page for Secure Applications and Key Management Services (SAKMS) Authentication Service where you will be prompted to enter your CWA user ID and password. Next, enter your Top Secret Security (TSS) user ID and password for on-line Regional Pay System (RPS) and click on "Submit". A list of CWA to which you have access will appear. From this list, select "Gross-to-Net Regular Pay Estimate Calculator" and enter the employee's Personal Record Identifier (PRI) for whom you are performing the LIA estimate.
4.5 When the "Gross-to-Net Calculator for Regular Pay" screen opens, select "Leave With Income Averaging" from the left side menu and enter the employee's PRI. Next, enter the start and end dates of the LIA period and the approved period(s) of LWOP. Note that pre-populated data from the RPS can be overwritten if making changes to existing LIA arrangements (e.g. revision, promotion, acting pay, etc.).
4.6 Once the information is entered and verified, select the "Calculation" button and the reduced salary will be displayed, including a verification calculation which can be printed and provided to the employee to confirm he will receive the entitlements that are due for the overall LIA period.
4.7 Select the RPS "View" button to see an image of the On-line Pay input screen with the proposed LIA arrangement information. When the time comes to create the LIA transaction, this image will help users identify the correct data input fields in the RPS.
4.8 The "Estimate" button located at the bottom of the screen performs a gross-to-net pay calculation, which can be used by employees for planning purposes. The calculator draws from the reduced salary and entitlements, as well as deductions resident on the RPS to derive the estimate.
5.1 Please direct any questions regarding the information contained in this document to your PWGSC Compensation Services Office.
Original Signed by
Accounting, Banking and Compensation
Reference(s): CJA 9001-1
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