Chapter 3-2 - Salary Administration Policy for certain non-Management Category Senior Excluded Levels
(Publié aussi en français sous le titre Chapitre 3-2 - Politique sur l'administration des traitements de certain niveaux supérieurs exclus non compris dans la catégorie de la gestion)
Table of Contents
Policy objective	1
Policy statement	1
Application	1
Exclusions	2
Policy requirements	2
Monitoring	2
References	3
Enquiries	3
Appendix A	4
Appendix B	11

Policy objective
To ensure the accurate and consistent administration of salaries for certain non‑Management Category senior excluded employees, including incentives to recognize and reward individuals in relation to their peers and subordinates.
Policy statement
It is government policy to pay certain senior excluded non‑Management Category employees according to their assessed level of performance.  The salary administration plan (appendix A) provides the means to achieve this.  Its chief provisions are the following:
•	to base cash compensation on a salary range for each group and level with a minimum and a job rate (maximum);
•	individuals may progress through the salary range by a series of variable increases related to the employee's assessed level of performance;
•	performance awards may be awarded to those whose salaries have reached the job rate and whose performance is superior or outstanding in a given year;
•	expenditures on salary administration must be controlled through a departmental performance increase budget.
Application
This policy applies to employees in the Public Service as specified in Part I of Schedule I of the Public Service Staff Relations Act who are not subject to a collective agreement and who are classified in the following groups and levels:
Group	Level	
Administrative Services	7 & 8	
Computer Systems Administration	5	
Financial Administration	4, 6 & 7	
Information Services	6	
Organization and Methods	6	
Personnel Administration	6	
Program Administration	7	
Purchasing and Supply	6 & 7	
Translation	4 & 5	
Welfare Programmes	7	
Exclusions
Employees affected by the Regulations respecting pay on reclassification or conversion (Chapter 1‑10) whose salary is protected at a group and level not mentioned above are not subject to this plan.  The relevant terms and conditions of employment apply to determine their appropriate salaries.
Employees absent on leave without pay are eligible for salary range adjustments according to their group and level, but they are not eligible for in‑range performance increases or performance awards under this plan.
These employees are not to be included in the calculation of departmental performance budgets, or the percentage who are rated above fully satisfactory.
Policy requirements
Deputy heads must implement and adhere to the salary administration plan (appendix A) in their departments.
They must:
•	ensure that salaries are administered according to the plan, based upon each employee's performance review and appraisal report;
•	provide all information, training, advice and guidance required to implement and administer the plan;
•	obtain prior written approval from the Treasury Board Secretariat when it is believed that the salary administration plan guidelines should be exceeded.
Monitoring
Departments are to submit reports to the Treasury Board Secretariat (TBS) on their application of the provisions of the plan in the format prescribed in appendix B, by July 15 of each year.
The following performance indicators will be used to evaluate departments' adherence to the plan:
•	the number of employees rated above fully satisfactory must remain within 30% of the total population administered under this plan;
•	the performance increase fund expenditure must not exceed the applicable percentage of payroll;
•	performance awards are granted only to employees who have attained the job rate and are rated superior or outstanding; and
•	in‑range increases and performance awards do not exceed the percentage guidelines for each level of performance.
Reports on the administration of the plan will be monitored by the TBS and will be used in the assessment of departmental personnel administration practices.
References
Financial Administration Act, Section 11(2)(d).
This policy replaces chapter 1‑2, appendix K of PMM volume 8.
Enquiries
Enquiries about this policy should be referred to the responsible officers in departmental headquarters who in turn may direct questions regarding policy interpretations to:
Compensation and Human Resources Policy — Executive Group
General Personnel Policy Development and Compensation Division
Personnel Policy Branch
Treasury Board Secretariat

Appendix A
Salary Administration Plan for Certain Non‑Management Category Senior Excluded Levels
1.	Purpose
This appendix presents guidelines for the consistent application of the salary administration plan throughout the Public Service.
2.	Definitions
Acting pay:  the rate that an employee should be paid for a temporary assignment to a higher classification level position (rémunération provisoire);
exceptional performance budget:  funds for allocation to employees whose performance is assessed as superior or outstanding and who are eligible for an in‑range increase and/or a performance award (budget pour rendement supérieur et exceptionnel);
in‑range increase:  an increase in salary based on assessed level of performance, that results in an upward positioning in the range (not exceeding the job rate) (augmentation à l'intérieur de l'échelle);
job rate:  the maximum rate of pay available to a qualified employee whose performance in the job is at least fully satisfactory (taux normal);
payroll:  the sum of salaries paid to employees subject to this plan, in a particular department or agency (masse salariale);
performance award:  a bonus payable to an employee whose salary has reached the job rate of the applicable salary range and whose assessed level of performance is superior or outstanding.  It is payable in a lump sum and must be re‑earned each year (prime au rendement);
retroactive period:  the period commencing on the effective date of the retroactive upward revision in remuneration and ending on the day approval is given (période de rétroactivité).
3.	Payment of retroactive remuneration
A retroactive upward revision in remuneration shall apply to employees, former employees or, in the case of death, the estates of former employees who were employed in the Public Service during the retroactive period.
Remuneration shall be paid in an amount equal to what would have been paid had the revision been implemented on the effective date.
The Employer must advise the employee or the former employee of the retroactive revision by registered mail to the last known address.  The employee or, in the case of death, the former employee's representatives shall have thirty (30) days from the date of receipt of this letter to request in writing a retroactive payment.
4.	Salary range revisions
The salary ranges for each of the affected groups and levels consist of a minimum and a job rate (maximum) with movement through the salary range based solely on assessed performance.  Salary ranges may be adjusted periodically pursuant to a decision of the Treasury Board.
4.1	Salary treatment for "unsatisfactory" performance
Unless otherwise advised, departments will not apply any range revision to the salary of an employee whose performance is assessed as "unsatisfactory".
4.2	Salary treatment for "satisfactory" performance
An employee whose performance is assessed as "satisfactory" will not progress beyond a rate of pay which is 96% of the applicable job rate.  In the event that application of the full range adjustment would produce a salary greater than 96% of the job rate, an adjustment smaller than the full amount should be given so as to reposition the employee's salary at the appropriate point in the range within a reasonable period of time.
4.3	Employees on leave without pay
An employee who is granted leave without pay for any period remains an employee.
The salary of an employee on such leave should be adjusted from time to time.  Normally, adjustments will occur when salary range revisions are approved for the applicable group and level.  Unless otherwise specified by the TBS, the employees will be accorded the same treatment as if rated fully satisfactory.  However, these employees will not be counted in the total population for purposes of calculating the payroll or the percentage of the population rated above fully satisfactory.
All periods of leave without pay count towards pensionable service and contributions must be made in respect of such leave.  Contributions should be based on the salary calculated as indicated.
4.4	Employees receiving acting pay
While in receipt of acting pay, an employee is eligible to receive revisions to the salary range of the acting level.
Employees in receipt of acting pay remain subject to the non‑pay terms and conditions of employment governing their substantive level position.
5.	Rate of pay on appointment
The rate of pay on appointment to a position to which this plan applies shall be established in accordance with the promotion, transfer or demotion rules as applicable.  The rate of pay on appointment will be at least the minimum of the performance pay range of the relevant occupational group.
5.1	Rate of pay on promotion
The rate of pay on promotion is determined by adding 4% of the maximum rate of the performance pay range for the higher level to the pay received immediately prior to the promotion.  However, where a collective agreement exists for the level of the appointment, the rate of pay shall not be less than would have been paid had the employee been subject to the collective agreement.
5.2	Acting pay
An employee who accepts a temporary assignment to a position classified in a group and level subject to this plan may receive a temporary salary increase of four percent of the job rate of the acting level.  When four percent of the job rate of the acting level does not bring the employee's acting salary to the range minimum, the employee shall be paid at the range minimum.
While receiving acting pay, an employee whose substantive rate of pay is below the range maximum continues to be eligible to receive increments (lock‑step structures) or in‑range increases (performance pay ranges), as well as any salary range revisions for the substantive level.  When an increment or in‑range increase to the employee's substantive salary occurs, the acting rate of pay shall be recalculated and any resulting increase paid to the employee.
The qualifying period to receive acting pay is determined by the collective agreement or terms and conditions of employment applicable to the employee's substantive group and level.
6.	Performance pay administration
In‑range increases and performance awards are to be administered on April 1 of each year.
Expenditures on in‑range increases and performance awards are controlled by a departmental budget which may not be exceeded.
6.1	In‑range increases
As a general guide, in‑range increases up to the job rate, as a percentage of the employee's salary, may be granted annually for assessed performance as follows:
Outstanding	up to 8%	
Superior	up to 6%	
Fully satisfactory	up to 4%	
Satisfactory	up to 2%	

Under no circumstances should an in‑range performance increase be authorized for an employee whose performance has been assessed as "unsatisfactory".
6.2	Performance awards
A performance award (bonus) may be granted to an employee whose performance has been assessed as superior or outstanding, whose salary is already at the job rate or has just reached the job rate by the application of an in‑range increase, and who is on strength on March 31st and April 1st.  These lump sums must be re‑earned each year.
Increases are to be limited to:
Outstanding performance
during the year	up to 8%
of salary
	
Superior performance
during the year	up to 6%
of salary	
The maximum permissible amount for the awards should not be automatically granted.  Consideration must be given to factors such as the salary relationship with immediate supervisors or subordinates and, the number of consecutive years of above fully satisfactory performance.
6.3	Combined application of in‑range increase and performance award
Some employees assessed as superior or outstanding will reach their job rate with in‑range increases which are less than the amounts permissible under the guidelines (paragraph 6.1).  In these cases, deputy heads may grant a performance award in addition to the in‑range increase.  The combination of the two amounts may not exceed 6% of salary for superior performance and 8% of salary for outstanding performance.
6.4	Performance pay while receiving acting pay
An employee who is receiving acting pay for a temporary assignment to a group and level covered by this plan is eligible for performance pay at the higher level when the following criteria are met:
•	the substantive rate of pay has reached the range maximum and the employee is no longer eligible for increments or in‑range performance increases in the substantive level; or an increment or in‑range performance increase in the substantive level does not result in a change to the acting rate of pay; and
•	performance of the higher level duties is assessed as fully satisfactory or better;
•	the employee is on strength in the acting situation on March 31st and April 1st; and
•	there are sufficient funds in the performance budget to award a performance increase.
The commencement date of the acting assignment will not affect an employee's eligibility for performance pay when these conditions are met.  Prorating the performance increase, based on the length of time in the acting assignment, is an option.
Employees in acting status who are eligible for performance pay are to be included in the calculation of the department's budget and the percentage of the population who are rated superior and outstanding.
6.4.1	Ineligible employees
When an increment or an in‑range performance increase in the substantive rate of pay results in a salary increase on recalculation of the acting pay, the employee is not eligible for performance pay under this plan, and should not be included in the calculation of the budget or the ratings distribution.
6.5	Limitations
Under no circumstances are the in‑range increases and performance awards paid under this plan to exceed the maximums available for the evaluated level of performance.  Likewise, departments may not exceed their aggregate exceptional performance budget.
6.6	Exceptional performance budget
This fund is calculated by the Treasury Board Secretariat based on the rule that departments rate no more than 30% of their employees above fully satisfactory.  It is limited to the following percentages of the department's total payroll for employees subject to this plan on March 31st:
Number of
Employees	Percentage of
payroll
(%)	
1	8	
2	4	
3	2.7	
4	3.5	
5	2.8	
6	2.3	
7	2.9	
8	2.5	
9	2.2	
10	2	
11	2.4	
12	2.2	
13	2	
14	2.3	
15	2.1	
16	2	
17	2.2	
18	2.1	
19	2	
20 +	1.9	
The distribution of the money available is the responsibility of the deputy head.  There is no requirement that all or any portion of the fund be awarded.
6.7	Salary‑related benefits
A performance award will be included as part of salary for the period in respect of which it was paid.  Any such award paid in the year of retirement, but related to the year prior to retirement, will be fully counted in the calculation of the six‑year average salary for pension purposes.  However, it will not be reflected in the level of coverage under salary‑related benefits such as Supplementary death benefit and insurances.
Performance awards will also not be considered part of salary for the purposes of termination benefits such as severance pay and cash‑out of vacation leave, or for salary calculations related to promotion or transfer.
7.	Authorization
The deputy head is authorized to determine increases in salary and to make performance awards within the guidelines prescribed in this plan unless otherwise directed by the Treasury Board Secretariat.
On those occasions when the circumstances of an individual case are so exceptional that a department believes the salary administration plan guidelines should be exceeded, the deputy head must obtain prior written approval from the Treasury Board Secretariat.
8.	Confidentiality
As a matter of government policy, disclosure is restricted to information on the salary ranges.  The specific salary paid to an individual in a performance pay plan may be disclosed only to those public servants whose work requires access to such information.

Appendix B 
	Departmental Reporting Format
The Treasury Board Secretariat will monitor the application of the performance increases after implementation.  Departments are to provide reports on their application of plan to the Compensation and Human Resources Policy Unit — Management Category, Treasury Board Secretariat.  The reports should be on a floppy disk in d‑Base III format, with file structure and contents as follows:
Field Name	Type	Width	Dec	Contents	
DEPT	Character	 3		Department	
SIN	Character	10		SIN	
GRP_LVL	Character	 8		Group and level, e.g. AS7, FI4, OM6	
JOB_RAT	Numeric	 9		March 31st job rate	
MAR_SAL	Numeric	 9		Employee's March 31st salary	
PERF_RAT	Numeric	 1		Performance rating:
Outstanding = 5
Superior = 4
Fully satisfactory  = 3
Satisfactory = 2
Unsatisfactory = 1
Unable to assess = 0	
MERIT_D	Numeric	10	2	In‑range increase in dollars	
MERIT_P	Numeric	 5	2	In‑range increase as a percentage of March 31st salary	
BONUS_D	Numeric	10	2	Performance award in dollars	
BONUS_P	Numeric	 5	2	Performance award as a percentage of March 31st salary	
TOT_INC	Numeric	 5	2	Total increase:  in‑range plus performance award, as a percentage of March 31st salary	
SAL_MERIT	Numeric	 9		Salary after in‑range merit increase