Other Related Documents

PROTECTED (when completed)

Paylist:

PRI:

Date

Name
Street
City
Province
Postal code

Dear INSERT APPROPRIATE NAME:

SUBJECT : Taken on Strength - Full-time - Executive Employee Hired for an Indeterminate Period

The following information is provided to clarify your specific terms and conditions of employment.

To better serve you, we would appreciate that you include your Personal Record Identifier (PRI) and your Paylist Number (both are indicated above) on correspondence to this office.

Bi-weekly Pay

Salary will be paid to you on a current bi-weekly basis. The salary you are due will be paid at the end of that same two-week period. Each pay period begins on a Thursday and ends two weeks later on Wednesday (pay day). Your first regular pay will be due on INSERT DATE.

Direct Deposit

Given that your salary will be deposited directly into your bank account, you will need to complete the "Direct Deposit Enrolment Request" form and send it to me, along with a "voided" blank cheque.

Performance Pay

As an executive, you will now be subject to the Performance Management Program (PMP) for Executives. The following is a general overview of the plan and is not intended to be exhaustive. It is important to keep in mind that Treasury Board may change the plan from year to year or may decide not to authorize performance pay at all for a given year. The plan provides for three types of cash compensation, which do not necessarily occur at the same time, but are all affected by your personal performance assessment.

Elements of Executive Cash Compensation

1) In-range increase: for achievement of Ongoing Commitments:

This is an increase in your base salary which results in progression through the base salary range quoted in the section above until your base salary reaches the maximum (job rate).

This in-range increase is based on your performance rating in regards to the achievement of Ongoing Commitments (eg. Surpassed, met all, met most, or did not meet).

Executives who receive a performance rating of surpassed, met all, or met most can be awarded a percentage increase in base salary, as determined by the deputy head.

The Treasury Board provides directives on the PMP which include suggested percentage increases for the various performance ratings of Ongoing Commitments. In-range increases counts for both pension and insurances.

2) Variable Pay for achievement of Key Commitments

This lump sum payment payable in respect of an executive's achievement of Key Commitments, irrespective of whether the executive has reached the maximum of the salary range or not. However, to be eligible for these awards, the executive must first have a performance rating of surpassed, met all, or met most for Ongoing Commitments.

Lump-sum performance awards are pensionable. This benefit does not count for insurances.

3) Economic Increases:

An economic increase is an increase authorized by Treasury Board for the Executive Group, which revises the ranges (minimum and maximum) for each of the executive levels. Employees who have received an assessment of surpassed, met all, or met most, will usually receive the same percentage increase used to revise the range maximum. Your economic increase can never result in a higher rate of pay than the range maximum.

The economic increase is not associated with the percentage awarded for Ongoing and Key Commitments. However, performance can impact on your entitlement to the economic increase. Executives who receive a performance assessment of 'Did not meet most' are not entitled to any announced economic increases.

Eligibility

With a few minor exceptions, to be eligible for a performance award, Executives must be on strength and in an executive position on March 31st and April 1st of a given year.

Leave without pay, or other special situations can impact on your eligibility to receive performance pay in a given year. Each special situation is studied carefully before including or deleting a participant's name from the list of eligible executives.

Deductions from pay

The following deductions are mandatory:

Federal Income Tax
Québec Provincial Income Tax
Canada Pension Plan (CPP)
Québec Pension Plan (QPP)
Employment Insurance (EI)
Québec Parental Insurance Plan (QPIP)
Public Service Superannuation (PSSA)
Supplementary Death Benefit (SDB)
Disability Insurance (Industrial Alliance)
Sales tax based on province of residence

Income Tax

Income tax deductions are based on your province of work.

The calculation for federal income tax deductions at source is determined in accordance with the regulations as set out by the Canada Revenue Agency.

The Québec provincial income tax deductions at source are determined in accordance with the regulations as set out by the Ministère du revenu du Québec.

Canada OR Québec Pension Plan (CPP OR QPP)

Deductions will be calculated on pensionable earnings, as defined by CPP OR QPP.

Employment Insurance (EI)

Deductions are calculated on insurable earnings, as defined by EI.

Public Service Superannuation (PSSA)

Contributions to the plan are required at the rate of 4.3% of your pensionable salary, up to the Yearly Maximum Pensionable Earnings (YMPE) ($00,000.00), and 7.8% of your pensionable salary in excess of this amount. Since the YMPE is subject to change, the maximum contributions may change each year.

As your annual salary is in excess of $000.00, you will contribute to the PSSA with respect to the portion of your salary below this amount and to the Retirement Compensation Arrangement (RCA) with respect to the portion of your salary above this amount, at a rate of contributions of 7.8%.

Elective Service

If you have prior periods of employment in the Public Service or with other employers, you may be able to count this service as pensionable under the PSSA.  For additional information on this option, refer to the Service Buy Back Information Package available at the following address: http://compensation.pwgsc.gc.ca/pen-ben/buyback_pkg-e.jsp

Pension Transfer Agreements (PTA)

If you were a participant under your former employer's pension plan, you may be able to transfer this service under the terms of a Pension Transfer Agreement.  For additional information on this option, refer to the Pension Portability Information Package available at the following address: http://compensation.pwgsc.gc.ca/pen-ben/portability_pkg-e.jsp 

For additional information on PSSA, refer to "Your Pension Plan" available at the following address: http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/Pensions/ypp_e.asp

The following legal documents are required (as applicable) for PSSA purposes:

Birth certificate(s) – you, your spouse and dependants
Death certificate – your spouse
Marriage Certificate and/or Divorce Decree

Please notify this office as soon as possible if you are unable to provide the appropriate documents.

Supplementary Death Benefit Plan (SDB)

This plan, for which participation is mandatory, provides for a life insurance equal to twice your annual salary rounded to the next multiple of $1,000.00. Premiums are calculated at 15 cents per $1,000.00 of coverage.

You must designate a beneficiary by completing form "Naming or Substitution of Beneficiary".

Dental Care Plan (DCP)

Participation in this employer-paid plan is mandatory while you are actively at work, enrolment is automatic. Your coverage is subject to a three-month waiting period and will become effective on INSERT DATE.

For Québec residents, the premium paid by the employer is a taxable benefit for provincial income tax and QPP purposes.

For further information on this plan, please refer to the DCP "Dental Care Plan" booklet available at the following address:

http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/TB_866/dental_e.asp

Medical Services Plan of British Columbia IF APPLICABLE

Group coverage under this plan is available. To have monthly contributions deducted from your pay, please complete and sign the enclosed form.

The contributions are:

Alberta Health Insurance Plan IF APPLICABLE

Group coverage under this plan is available. To have monthly contributions deducted from your pay, please complete and sign the enclosed form.

The contributions are:

Sales Tax

For Québec residents, a provincial sales tax of 9% is charged on insurance contributions.

OR

For Ontario residents, a provincial sales tax of 8% is charged on insurance contributions.

Public Service Health Care Plan (PSHCP)

You are eligible for Level III (Family) employer-paid coverage under the PSHCP. Overage dependants (age 21 to 25) must meet certain conditions to be covered. Your employer-paid coverage is effective on INSERT DATE.

For detailed information about coverage, please refer to the "Public Service Health Care Plan" booklet available at the following address:

http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/TB_862/pshcpb-rssfpp_e.asp

In general, benefits are as follows:

(a) The Extended Health Provision provides coverage for 80% of eligible expenses (minus co-insurance).

(b) The Hospital Expense Benefit (level III) provides a maximum reimbursement of $220.00 per day towards a private or semi-private accommodation in a hospital (minus co-insurance).

The employer pays a premium of $81.73 per month plus applicable sales tax.

Contributions paid on your behalf for PSHCP are considered a taxable benefit for the calculation of Québec Income Tax and QPP premiums, including the 9% Québec Sales Tax. The additional amounts of Income Tax and QPP premiums will be deducted at source and shown on your Relevé 1.

Public Service Management Insurance Plan (PSMIP)

You are entitled to employer-paid life insurance coverage under the PSMIP with the exception of the supplementary coverage. Your coverage is effective on INSERT DATE.

Basic Coverage

Your coverage is equal to two times your annual salary adjusted to the nearest multiple of $1,000.00. Your coverage equals $ 000,000.00

Supplementary Coverage

The employer does not pay this optional coverage equal to your annual salary adjusted to the nearest multiple of $1,000.00. The monthly premium, based on your age, sex and salary, is $00.00.

Accidental Death & Dismemberment (AD & D) Coverage

Your coverage is equal to $250,000.00 (10 units at $25,000.00 each).

Dependants' Insurance

This insurance provides life insurance and AD & D coverage for your dependants in the amount of $5,000.00 for your spouse and $2,500.00 for each dependent child. This insurance is without cost to you.

Taxable Premiums (Federal only)

Employer-paid premiums for basic life insurance and dependants' life insurance coverage are a taxable benefit to the employee. This taxable benefit will be included in your total income, as well as shown in a separate box on your T4.

Opting Out

If you do not wish to take advantage of the employer-paid life insurance coverage you must complete a waiver form. Should you later decide to have the employer-paid coverage re-instated, please note that there will be a five-year waiting period.

Long Term Disability (LTD)

This mandatory plan provides a disability income of 70% of your adjusted annual salary, should you become totally disabled. Premiums are paid by the employer but are not considered a taxable benefit. Your LTD benefits are outlined under the Public Service Management Insurance Plan-Executive Plan. The booklet is available at the following address:

http://www.tbs-sct.gc.ca/Pubs_pol/hrpubs/TB_863/psmipex_e.asp

Post-Retirement Life Insurance (PRLI)

The PRLI also forms part of the PSMIP. It provides life insurance for senior managers who retire with an immediate continuing pension benefit (reduced or unreduced) under the Public Service Superannuation Act (PSSA).

Upon termination of employment details of the PRLI will be provided.

Québec Income Tax and QPP premiums

Premiums paid on your behalf for PSMIP are considered a taxable benefit for the calculation of Québec Income Tax and QPP premiums, including the 9% Québec Sales Tax. The additional amounts of Income Tax and QPP premiums will be deducted at source and shown on your Relevé 1.

For Québec residents, the contribution paid by the employer is a taxable benefit for provincial income tax and QPP purposes.

Should you wish to participate in this plan, an application is required. You will not be subject to a waiting period, if our office receives your application within 60 days of your date of appointment and coverage will be effective the first of the month following the date it is received.

For further information on this plan, please refer to the PSHCP "Public Service Health Care Plan" booklet available at the following address:
http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/TB_862/pshcpb-rssfpp_e.asp

Other Optional Payroll Deductions

The following deductions may be taken from your pay depending on the time of year or arrangements made with the various organizations:

Canada Savings Bonds (beginning in December)
Credit Union (apply through the Credit Union)
Recreational Association (RA) (apply through the RA in Ottawa)
Government of Canada Workplace Charitable Campaign (beginning in January)
Parking (apply through Facilities Management)
Fonds de solidarité FTQ
Association of Professional Executives of the Public Service of Canada (APEX)
Transit Pass Program.

Parking

The employer pays 50% of the monthly rate charged for Crown parking facilities or the monthly rate charged for commercial facilities (limited to a maximum of the equivalent Crown rate).

The employer-paid portion is a taxable benefit and will be reported on your income tax statements.

Vacation Leave

For information on the administration of vacation leave for Executives, please refer to the attached document entitled Terms and Conditions of Employment for Executives.

Your permitted vacation leave maximum accumulation for the current fiscal year is 00.00 days (or 000.00 hours). Your yearly accrual will be 00.00 days (or 000.00 hours).

Sick Leave

You will earn sick leave credits at the rate of one and one-quarter (1 1/4) days for each month that you are entitled to at least 10 days or 75/80 hours pay. Please refer to the Terms and Conditions of Employment for more details on the administration of sick leave.

Other Leave Situations

Please refer to the Terms and Conditions of Employment for Executivesfor details on the administration of other leave available at the following address:

Termination of Employment

In the event that you terminate employment voluntarily, you must advise your manager, in writing, of your resignation as well as the reason for resignation (i.e. outside employment, personal reasons, return to school, etc.). Your manager, in turn, must acknowledge your resignation in writing for the termination of employment to be legal and forward the appropriate signed documents to this office as soon as possible.

Miscellaneous

Please advise us, in writing, of changes to your status.

Should you require additional information, do not hesitate to contact me at (###) ###-#### or by e-mail INSERT E-MAIL ADDRESS.

Sincerely,

Compensation and Benefits Advisor

c.c. Employee file

The following sample of your pay stub (whether attached to a cheque or a direct deposit statement) also includes a brief explanation of individual fields.

The grey shading on your regular pay stub reports cumulative totals throughout the year (does not appear on supplementary cheques.)

1. Pay Office number (08 = Halifax, 25 = Montreal, 34 = Toronto, 36 = Ottawa, 62 = Edmonton, 66 = Vancouver)

2. Departmental acronym

3. Your paylist number

4. Your Personal Record Identifier (PRI)

5. Your name and initials

6. Gross pay

7. Total deductions found in sections 9-15 and 18-29

8. Net pay

9. Federal Income Tax

10. Québec Provincial Income Tax

11. Superannuation (PSSA)

12. Canada or Québec Pension Plans

13. Employment Insurance

14. Supplementary Death Benefit

15. Disability Insurance

16. Province of Work (income tax is deducted based on province of work) [10 = NF, 11 = PE, 12 = NS, 13 = NB, 24 = QC, 35 = ON, 46 = MB, 47 = SK, 48 = AB, 59 = BC, 60 = YK, 61 = NT]

17. Work Week - the number of hours you work in a week.

18. Provincial Health Insurance (BC, Alberta)

19. Public Service Health Care Plan (PSHCP)

20. Charitable Donations

21. Canada Savings Bonds

22. No longer in use

23. Credit Union

24. Association/Union Dues

25. Taxable Allowance Benefits - employer paid benefits for reporting on your T4

26. This area describes the period covered by a payment followed by the name of the entitlement being paid. Also, certain deductions (example: PSMIP, parking) and other information will appear in this section (example: Québec Taxable Benefits - this is the amount added to your gross pay to arrive at the deduction for Québec provincial income tax and Québec Pension Plan premiums). Your deduction adjustment (when applicable) will appear in this area

27. Used to describe the number of units or hours being paid for certain entitlements (usually overtime).

28. The rate used for the entitlement or deduction.

29. The actual amount paid or deducted.