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DATE: April 5, 2001
TO: Heads of Human Resources
SUBJECT: Salary Administration Instructions for the Performance Management
Program for the Executive Group
I am writing to advise you that the Salary
Administration Instructions for the Performance Management Program (PMP) for the
Executive (EX) Group for fiscal year 2000-2001 will soon be available on the
Treasury Board Secretariat website.
These instructions are designed to assist you in administering the policies
that govern the payment of performance related pay awards under PMP for the EX
Group. They include guidelines, information on reporting to the Treasury Board
Secretariat and a number of examples of the calculation of performance awards
(in-range salary movement and at risk lump sum payments) for executives in
normal circumstances, special circumstances and acting pay situations.
Beginning with fiscal year 2000-2001 and beyond, there is no longer any
departmental budgetary limitation for either in-range salary movement or for at
risk lump sum payments. The Treasury Board has accepted the recommendation of
the Third Report of the Advisory Committee on Senior Level Retention and
Compensation of the removal of departmental budget caps for at risk performance
awards. Departmental budgets for lump sum performance awards have accordingly
been increased to 7% of Executive payroll for FY 2000/01 onwards. Total awards
in excess of the 7% departmental allocation must be absorbed by the departments
from existing reference levels.
The 2000/01 cycle was the first year of full implementation of the PMP.
Therefore, potential lump sum amounts for at risk performance pay in 2000/ 01
are not restricted to half payouts as in 1999-2000 but can be for the full
percentage available for the level:
10% for EX 1-3;
15% for EX 4-5 and DM 1;
20% for DM 2 and DM 3; and
25% for DM 4.
Through its consultations with the Deputy Minister and Executive
Services/Human Resources communities this year on the PMP program, the Treasury
Board Secretariat has identified a number of issues concerning the salary
administration policy as it relates to PMP. We will be reviewing the Salary
Administration Policy for the Executive Group in the new fiscal year and will be
studying these issues at that time.
Marcel Nouvet
Chief Human Resources Officer
Human Resources Branch
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