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DATE: January 10, 2001
TO: Executives
Dear Sir or Madam:
As Secretary of the Treasury Board, I am pleased to announce the publication of the Third
Report of the Advisory Committee on Senior Level Retention and Compensation.
The Advisory Committee was established in 1997 to advise the President of the Treasury Board on the retention and compensation
of Executives and on the overall human resource management framework for Executives, Deputy Ministers and Governor-in-Council
appointees. The work of this Committee has influenced recent improvements to the management of human resources in the federal
public service. For example, the Committee's First and Second Reports set forth the principles of the current compensation policy
and compensation structure for senior officials.
The Report addresses both long-standing and emerging human resources management challenges facing the federal public service,
potentially significant loss of experienced senior public servants through retirements over the coming decade. The Third Report
makes a compelling business case for bold action to sustain the health of the executive cadre. Notably, the Report recommends that
an integrated long-term human resource strategy be established for the public service. Further highlights of the report are:
- Increased salary rates for Deputy Ministers, members of the Executive Group, and Governor-in-Council appointees. The Report
recommends salary range increases of 8.7 % by April 1, 2001. (The Treasury Board has approved phasing in the
increase as follows: 8 % effective April 1, 2000, with the remaining 0.7 % taken into account when future
increases are considered.)
- Improvements to the already established framework for total compensation (base salary plus variable pay) such as annual
benchmarking to the private sector.
- Removal of expenditure ceilings associated with the Performance Management Program to increase the effectiveness of the
program. (The Treasury Board has approved a budget of 7% of annual executive payroll for fiscal year 2000-2001; however,
departments will be now permitted to make awards in excess of their budgeted amounts by absorbing additional costs from their
existing operating budgets.)
- Closer linking of the individual Performance Agreements to business planning, with a sharper focus on individual
accountability and consistency of application among all departments and agencies.
- Creation of a new DM 04 level.
- Review of the GIC classification and compensation.
- A feasibility study for an Executive flexible benefits program (Phase III of the project).
- Increased vacation entitlement to six weeks after twenty-eight years of service for Executives, Deputy Ministers and
Governor-in-Council appointees effective April 1, 2000.
The Treasury Board has accepted the majority of the recommendations of the Third Report and will study others further. In
addition, the Treasury Board will renew the mandate of the Advisory Committee for an additional three years. Since the Chair, Mr.
Strong, stepped down as Chair of the Committee this year, a new Chair will be selected in the near future. As a result, the
Advisory Committee will continue its valuable work on the human resources management of senior personnel.
Instructions for implementing the approved salary increase will be sent under separate cover.
Any calls from the media concerning the Third Report should be forwarded to Edison Stewart, Chief, Media Relations,
Communications and Executive Services, Treasury Board, at (613) 941-0255.
Printed copies of the Third Report have been sent to each Head of Human Resources for all Deputy Ministers, Executives and
Governor-in-Council appointees. Please contact the Distribution Centre at (613) 995-2855 if additional printed copies of the
Third Report are required.
- Yours sincerely,
Frank Claydon
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