|
|
P. Charko
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1 |
PURPOSE
|
1.1 |
The purpose of this section is to provide the policy and pay input
procedures for the new work arrangement called Pre-retirement Transition Leave
(PRL). |
1.2 |
This directive must be read in conjunction with Treasury Board
Information Package "Know your Options".
|
2 |
POLICY
|
2.1 |
The Pre-retirement Transition Leave program is available to
indeterminate employees in a department for whom the Treasury Board is the
employer, as set out in Part 1 of Schedule 1 of the Public Service Staff
Relations Act.
|
2.2 |
Pre-retirement Transition Leave is a new leave program which
allows indeterminate employees, who are within two years of becoming eligible
for an unreduced pension, to reduce their work week by up to forty
percent.
|
2.3 |
Employees may take Pre-retirement Leave for up to two years, but
must agree to resign at the end of the leave period.
|
2.4 |
Employees must complete the Pre-retirement Transition Leave
request form and obtain approval from their respective manager. Upon approval,
the manager will forward the form to their Compensation Specialist for pay
processing.
|
2.5 |
Departments are responsible to establish their own lead time for
pay input processing. Timely processing is critical in order to avoid salary
overpayments and their subsequent recovery action from a reduced salary.
|
2.6 |
As outlined in the Treasury Board document "Know Your
Options", this leave arrangement can be altered under exceptional
circumstances only. Therefore, employees should be informed of the following
pay implications before proceeding with this leave arrangement:
|
- | The employee's salary and salary related allowances will be reduced during the transition period to account for the shorter work week. |
- | The existing Leave Without Pay (LWOP) regulations and policies governing the entitlement to salary and allowances will apply. |
- | Canada/Quebec Pension Plan contributions will be based on the reduced salaries. |
- | Public Service Superannuation Plan (PSSA) and Insurance plan (SDB, DI, LTD) contributions will be based on the employee's full salary. |
- |
All voluntary deductions (i.e. Credit Union, Canada Savings Bonds)
will continue to be collected only where there are sufficient
funds. |
3 |
PROCEDURES / INSTRUCTIONS |
3.1 |
Departments are responsible to calculate and report a reduced
basic salary and if applicable, a reduced rate for each affected
allowance. |
CALCULATING REDUCED SALARIES
|
3.2 |
The formula for calculating reduced salaries and allowances is as
follows: |
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Step 1 | ||||||||||
Number of reduced/non entitled days x salary = Salary
reduction number of paid days in a year |
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NOTE:
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Number of paid days per year
Division factors such as 26.088 cannot be used in this formula to establish the reduced salary rate. |
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Step 2 Salary minus amount of salary reduction = reduced salary To assist departments, an example of how to calculate and report reduced basic salary and allowances is contained in Appendix "A" of this directive. |
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CHANGES TO ON-LINE PAY REPORTING |
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3.3 |
There is a new screen called Pre-retirement Transition Leave
(PRL). This screen is to be used by Departments to report a commence, amend or
stop action of: |
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3.4 |
The entitlement commence and amend screens (ENC and ENA) are
modified to permit the reporting of reduced allowance rates and to report the
PRL leave status indicator with each rate. |
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3.5 |
The on-line inquiry screens are modified to reflect PRL
transactions and elements. |
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CHANGES TO INPUT PROCEDURES FOR DSS 25l7T/ 2549
REPORTING |
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3.6 |
A PAC 18C/A/S 346 is to be used to report: |
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3.7 |
The PAC 18C and PAC 18A procedures for entitlements are modified
to permit departments to report a reduced allowance rate in field 69 and the
PRL leave status indicator in field 70 for each allowance affected by
PRL. |
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3.8 |
Pay input reporting instructions for both on-line and DSS
2517T/2549 are contained in Appendix "B" of this
directive. |
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CHANGE TO THE REGIONAL PAY SYSTEM |
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3.9 |
The Regional Pay System has been modified to include new elements
and fields on the Master Employee Record (MER) and new processes that will
calculate and issue reduced salary payments during the PRL period. These
changes will be operational effective November 1st, 1995. |
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3.10 |
The following sections describe the changes to the pay
system. |
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3. 11 |
There are new pay account elements and fields on the MER to record
reduced salary and allowances as follows: |
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Element 113 - Leave Status Indicator To record the leave status of the pay account. |
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Status Code |
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3 |
- Employee is on PRL. |
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6 |
- Employee is no longer on PRL (automatically imposed by the pay
system). |
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Element 114 - Reduced Salary To record the reduced basic salary. The above pay elements 113 and 114 will be used to issue a reduced basic salary, during the time the employee is on Pre-retirement Transition Leave. Element 115 - PRL Hours To record the number of reduced hours per week. Element 116 - End of Leave Date To record the end date of the PRL. PAC 18 - Field 69 on the MER To record the reduced allowance rate. The reduced allowance rate(s) entered on the PAC 18C/A or ENA/ENC transactions will be entered in field 69 of the existing allowance line, as posted on the Master Employee Record (MER). This rate will be used instead of the full allowance rate during the time the employee is on PRL. PAC 18 - Field 70 on the MER To record the leave status indicator on each reduced allowance rate. The values for this field are the same as described for element 113. This indicator must be entered by the department in field 70 on the PAC18C/A or ENC/ENA for each reduced allowance rate reported. |
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3.12 |
Three months prior to the end of the Pre-retirement Transition
Leave period, the pay system will produce a notification report to alert
departments that the end date of the leave is approaching and that further pay
input is required (PAC 02). The notification report will continue to be
produced monthly until the end date is reached.
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3.13 |
Upon processing of a PAC 02, the pay system will automatically
reinstate the pay account to full salary, including all affected allowances. If
no pay action is done, the system will continue to issue pay based on the
reduced salaries until such time as a PAC 02 is processed. |
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CHANGES DURING PRL
|
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3.14 |
The following sections describe the procedures that departments
are to follow in the event there are pay changes during the PRL transition
period.
Changes to PRL Reduced Hours The department must recalculate the reduced salary and allowances, if applicable, and report changes to the reduced rates using the PRL pay actions. Cancellation of PRL The department reports a PAC 18S 346 or a stop action on the PRL on-line screen. Upon processing of the pay transaction the pay system will automatically reinstate the pay account to full salary and status, including affected allowances. Changes to Basic Salary The department follows normal procedures and reports the full salary and full former rate, for any retroactivity, using the appropriate pay action (i.e. promotion). The department must also recalculate and report the amended reduced basic salary using the PRL pay actions. Supplementary payments cannot be automatically issued for changes to full or reduced basic salary. The pay office is responsible for any retroactive payments or adjustments. Changes to Allowances If the change affects reduced allowance rates, then the department will recalculate the allowance rate and report via a PAC 18A/ENA, the full rate (field 66), the amended reduced allowance rate (field 69) and the PRL status indicator (field 70). In this case, supplementary payments cannot be issued automatically. The pay office is responsible for any retroactive payments or adjustments. If there are changes to an on-going allowance rate, that does not have a reduced allowance rate, the department reports the full allowance rate and full former rate for retroactivity purposes. The PRL leave status indicator (field 70) is not to be completed. In this circumstance, supplementary payments will be automatically issued. One-Time Entitlements Departments should report the full salary/allowance rate including the full former rate for any retroactivity (i.e. overtime, LWOP). For these types of pay transactions, supplementary payments will be automatically issued. Changes in Employee Status In situations where there are any changes in employee status (i.e. TSOS, SOS), please refer to the existing Treasury Board policy and if applicable, follow the above procedures for amending or cancelling the leave arrangement. |
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PAY OFFICE RESPONSIBILITY
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3.15 |
The pay office will be responsible to make all retroactive salary
adjustments to the pay account upon the processing of PRL pay related
transactions.
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4 . |
APPENDICES |
APPENDIX "VII-A-1"
PRE-RETIREMENT TRANSITION LEAVE
CALCULATION OF REDUCED SALARY
FULL TIME
Example |
|
Annual Salary | $ 33,092.00 |
Pay Equity Allowance | $ 994.00 |
Bi-weekly Paid Account (7c) | 26 pay periods x 10 days = 260 paid days per year |
Scheduled Work Week | 37.50 |
Assigned Work Week | 37.50 |
Pre-retirement Transition Leave Period | October 16, 1995 to March 31, 1997 |
Number of PTL Reduced Hours Per Week | 15 hours |
Number of PTL Reduced Days Per Week |
15 hours = 2 days x 52 weeks = 104 days per year |
Formula |
|||
Step | |||
1
|
Number of reduced days (or non entitlement) per year x salary | = amount of salary reduction | |
number of paid days per year |
|
||
2 |
Salary minus amount of salary reduction = reduced
salary |
||
Reduced Basic Salary Calculation |
|||
104 reduced days x $33,092.00 = | $13,236.80 | ||
$33,092.00 - $13,236.80 = | $19,855.20 | ||
Reduced Basic Salary = | $19,855.20 | ||
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Verification of Calculation |
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Salary due for the year: | |||
156 days @ $33,092.00 = $19,788.22 | |||
Salary to be paid by the pay system: | |||
260 days @ $19,855.20 = $19,788.22 |
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Reduced Allowance Calculation |
|||
104 non-entitled days x $994.00 = $397.60 | |||
260 | |||
$994.00 - $397.60 = $596.40 | |||
Reduced Allowance Rate = $596.40 |
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Verification of Calculation |
|||
Allowance due for the year: | |||
156 days @ $ 994.00 = $ 594.38 | |||
Allowance to be paid by the pay system: | |||
260 days @ $ 596.40 = $ 594.38 |
PART-TIME |
|
Example |
|
Annual Salary | $33,092.00 |
Pay Equity Allowance | $ 994.00 |
Bi-weekly Paid Account (7c) | 26 pay periods x 6 days = 156 paid days per year |
Scheduled Work Week | 37.5 |
Assigned Work Week | 22.50 (3 days per week) |
Pre-retirement Transition Leave Period | October 16, 1995 to March 31, 1997 |
Number of PTL Reduced Hours Per Week | 7.5 hours |
Number of PTL Reduced Days Per Week |
7.5 hours = 1 day x 52 weeks = 52 days per year |
Formula |
||
Step | ||
1 | Number of reduced days (or non entitlement) per year x salary | = amount of salary reduction |
number of paid days per year |
||
2 |
Salary minus amount of salary reduction = reduced
salary |
|
Reduced Basic Salary Calculation |
||
52 reduced days x $33.092.00 = $11,030.67 | ||
156 |
||
$33,092.00-$11,030.67 = $22,061.33 |
||
Reduced Basic Salary = $22,061.33 | ||
Note: The pay system will further pro-rate this reduced salary rate based on the assigned work week as shown in the following verification. |
PART-TIME |
Verification of Calculation |
Salary due for the year: |
4 days x 26 pay periods = 104 days |
104 days @ $33,092.00 = $13,192.15 |
Salary paid by the pay system: |
6 days x 26 pay periods = 156 days |
156 days @ $22,061.33 = $13,192.15 |
Reduced Allowance Calculation |
52 non-entitled days x $994.00 = $331.33 |
156 |
$994.00-$331.33 = $662.67 |
Reduced allowance rate $662.67 |
Note: The pay system will further pro-rate this reduced
allowance rate based on the assigned work week as shown in the following
verification. Please refer to the Personnel-Pay Input Manual section 9-5-2 page
24, for the list of allowances pro-rated by the pay system. For all other
allowances not automatically pro-rated by the pay system, the departments must
further calculate the reduced rate to account for the assigned work
week. |
Verification of Calculation |
Allowance due for the year: |
4 days x 26 pay periods = 104 days |
104 days @ $994.00 = $396.26 |
Allowance paid by the pay system: |
6 days x 26 pay periods = 156 days |
156 days @ $662.67 = $396.26 |
APPENDIX "VII-B-1"
EXAMPLE
REPORTING PRE-RETIREMENT TRANSITION LEAVE
REDUCED BASIC SALARY
PDPRL01D-001(701) | PUBLIC WORKS AND GOV. SERVICES CANADA |
95/09/14 |
PAY | PRE-RET TRANSITION LEAVE | ACCOUNT MAINTENANCE |
> NEXT < | PAYCYC:7C | PP:21 | 051095/181095 |
CUTOFF041095 |
0303/ 52 764 591 | L AMYOTTE | 82 DSS SEQ: | /000000 |
*** ENTER THE TRANSITION PERIOD AND
THE REDUCED SALARY***
MODIFIER:C | EFF FR:16 10 95 1 | EFF TO: 31 03 97 2 |
RATE BASE: 9 |
REDUCED RATE: 19855.200 |
*** ENTER THE REDUCED WORK WEEK HOURS ***
HI/D/W IND:H | NUM H/D/W: 15.00 |
*** USE THE ENTITLEMENT AMEND SCREEN TO REDUCE ON-GOING
ENTITLEMENTS***
APPENDIX "VII-B-2"
EXAMPLE
REPORTING PRE-RETIREMENT TRANSITION LEAVE
REDUCED BASIC SALARY
PDENA15D-001(701) | PUBLIC WORKS AND GOV. SERVICES CANADA | 95/09/14 |
PAY | ENTITLEMENT AMEND | ACCOUNT MAINTENANCE |
> NEXT < | PAYCYC:7C | PP:21 | 051095 / 181095 | CUT OFF 041095 |
0303 / 52 764 591 | L AMYOTTE |
82 AGR SEQ:
|
/000000 | |
ENT CD: 144 | EFF FR: 16 10 95 1 | EFF TO: | ||
RATE BASE: 9 | RATE: 994.000 | FRM RATE: 596.400 | ||
POS NUM: | POS CLASS: | |||
ACCNT CDNG: |
***LEAVE WITH INCOME AVERAGING / PRE-RETIREMENT
TRANSITION LEAVE
IF APPLICABLE, ENTER THE CORRECT CODE ("1",
"2" OR "3"): 3
*** COMPLETE FOR CLOSED PERIOD IN PAST OR FOR RETRO PERIOD-EFF FR
DATE TO CURRENT PAY PERIOD START DATE
Hl/D/W IND: | NUM H/D/W: .00 |
***COMPLETE (A) IF ENT CD 070 ENTERED / COMPLETE
(B) IF ENT CD 080 ENTERED
(A) SUPV GRID: | (13)ITD GRID: |
Note: Please refer to the Personnel-Pay
Input Manual (PPIM) section 9-5-2 page 24 , for the list of allowances
pro-rated by the pay system based on assigned work week. For these allowances,
the department reports the reduced allowance rate and the pay system will
automatically pro-rate the reduced allowance rate based on the employee's
assigned work week. For all other allowances not pro-rated by the pay system,
the departments must further calculate the rate to account for the assigned
work week and then report the reduced rate.
LEAVE WITH INCOME AVERAGING
(LIA)
TABLE OF CONTENTS
1 PURPOSE
2 POLICY
3 PROCEDURES/INSTRUCTIONS
4 APPENDICES
VIII. LEAVE WITH INCOME AVERAGING (LIA)
1 |
PURPOSE |
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1.1 |
The purpose of this section is to provide the policy and pay input
procedures for the new work arrangement called Leave with Income Averaging
(LIA). |
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1.2 |
This directive must be read in conjunction with the latest
Treasury Board "Know Your Options" document. |
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2 |
POLICY |
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2.1 |
The Leave with Income Averaging option is available to employees
of departments for whom Treasury Board is the employer as set out under Part 1,
Schedule 1 of the Public Service Staff Relations Act. |
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2.2 |
Leave with Income Averaging is a new leave program which allows
indeterminate employees to take blocks of leave without pay (LWOP) of between 5
weeks and 3 months, within a 12 month period, and continue to receive a
pro-rated salary over the same 12 month period that the LIA covers. The maximum
number of "blocks" is two blocks in a 12 month period, and the
maximum period of absence in a 12 month period is 3 months. |
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2.3 |
The employee's salary during the 12 month period of the LIA will
be averaged to account for the period(s) of LWOP chosen. For example, an
employee who chooses a 3 month period of LWOP will receive salary at a rate of
approximately 75 % for the 12 month period covering the LIA. |
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2.4 |
The public Service Superannuation Plan, Insurance coverage and
contributions will be based on the employee's full salaries. The employee may
choose to pay full PSSA and Supplementary Death Benefit (SDB) contributions
from the reduced salary during the twelve month period or pay PSSA/SDB
contributions based on the reduced salary and defer the recovery of PSSA and
SDB deficiencies until return to duty from the period of LWOP. |
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2.5 |
Employees must complete a LIA request form and forward it to their
manager for approval. Upon approval, the manager forwards the form to their
Compensation Specialist for pay processing.
|
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2.6 |
Departments are responsible for establishing their own lead time
for pay input processing. Timely processing is critical in order to
avoid delays to the income averaging period. |
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2.7 |
As outlined in the Treasury Board document "Know Your
Options", LIA arrangements can only be altered under exceptional
circumstances. Therefore, employees should be made aware of the following pay
implications before proceeding with this arrangement: |
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- | Salary and affected allowances will be reduced over a twelve month averaging period to account for the period(s) of LWOP. | ||||||||
- | The existing LWOP regulations and policies governing the entitlement to salaries and allowances will apply. | ||||||||
- | Canada/Quebec Pension Plan deductions will be calculated based on the reduced salary. | ||||||||
- | Unemployment insurance premiums will be calculated based on the full salary but will not be deducted during the LWOP period. | ||||||||
- | Public Service Superannuation Plan (PSSA) and Supplementary Death Benefit (SDB) coverage will be based on the employee's full salary. However, the employee may choose to pay the required contributions as follows: | ||||||||
Option 1 The employee can continue to pay PSSA and SDB contributions from the reduced salary but based on the unreduced salary rates. This will minimize fluctuations in net pay. |
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Option 2 The employee can opt to contribute to PSSA and SDB based on the reduced salary. On return to duty, the deficiency recoveries between the reduced and unreduced salary rates will then be collected. That is, the PSSA and SDB deficiencies will be recovered on return to duty immediately following the period of LWOP (NOT AT THE END OF THE AVERAGING PERIOD). Recovery will be made over twice the period of the actual leave. This method will result in fluctuations in the net pay during the period the deficiencies are collected. |
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- | All other Insurance Plan contributions (Disability Insurance, Public Service Management Insurance Plan, etc.) will continue to be deducted at the normal rate. | ||||||||
- | Union dues will be deducted at the full monthly rate except when the employee is on leave without pay for the entire calendar month. | ||||||||
- | All other voluntary deductions (i.e. Credit Union, Canada Savings Bonds) will continue to be collected only where there are sufficient funds. | ||||||||
2.8 | The LIA period is to be administered as follows: | ||||||||
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3 |
PROCEDURES I INSTRUCTIONS |
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3.1 |
Departments will be responsible to calculate and report a reduced
basic salary and if applicable, a reduced rate for each affected allowance.
At the same time that the reduced salary and allowances are reported,
Departments must also report the leave with income averaging period and
report the actual dates of the future leave without pay
period(s). |
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CALCULATING REDUCED SALARIES |
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3.2 |
The formula for calculating reduced salaries and allowances is as
follows: |
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Step 1 |
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Number of days of LWOP (or non entitlement) x salary =
salary reduction number of paid days per year |
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NOTE: Number of paid days per year Division factors such as 26.088 cannot be used in this formula to establish the reduced salary rate. |
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Step 2 Salary minus amount of salary reduction = reduced salary To assist departments, instructions on how to calculate the reduced salary and allowances are contained in Appendix "A" of this directive. |
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CHANGES TO THE ON-LINE PAY REPORTING |
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3.3 |
There is a new screen called Leave Income Averaging (LIA). This
screen will be used by departments to report a commence, amend or stop action
of the following: |
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|
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3.4 |
There is a new reduction of earnings screen called Leave with
Income Averaging - LWOP (LIW). This screen will be used to report a commence or
stop action of the following: |
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|
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3.5 |
The entitlement commence and amend screens (ENC and ENA) are
modified to permit the reporting of reduced allowance rates for LIA and the
PSSA/SDB option/leave status indicator. |
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3.6 |
The on-line inquiry screens are modified to reflect LIA
transactions and status elements. |
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CHANGES TO INPUT PROCEDURES FOR DSS 2517T/ 2549
REPORTING |
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3.7 |
A PAC 18C/A/S 306 will be used to report: |
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|
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3.8 |
PAC 15C/S 306 will be used to report: |
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|
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3.9 |
The PAC 18C and PAC 18A procedures for entitlements are modified
to permit departments to report a reduced allowance rate in field 69 and the
PSSA/SDB leave status indicator in field 70 for each allowance affected by
LIA. |
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3.10 |
Detailed pay input reporting instructions for both on-line and DSS
2517T/2549 reporting are contained in Appendix "B" of this
directive. |
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CHANGES TO THE REGIONAL PAY SYSTEM |
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3.11 |
The Regional Pay System has been modified to include new elements
and fields on the Master Employee Record (MER) and new processes to calculate
and issue pay based on the reduced salaries during the LIA period. These
changes will be operational November 1st 1995. The following sections describe
the changes to the pay system. |
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3.12 |
The following new pay account elements and fields have been
included on the Master Employee Record to record reduced salary and
allowances. |
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Element 113 - Leave Status Indicator To record the leave status of the pay account and the chosen option for PSSA and SDB contributions as follows: |
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Leave status code
|
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Element 114 - Reduced Salary To record the reduced basic salary while the employee is on LIA. Elements 113 and 114 will be used instead of the regular elements to pay a basic reduced salary and to determine PSSA/SDB contributions during the time the employee is on LIA. |
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Element 116 - End of Leave Date To record the end date of the income averaging period. |
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PAC 18 - Field 69 on the MER To record the reduced allowance rate. The reduced allowance rate(s) entered on the PAC 18C/A or ENA/ENC transactions will be entered in field 69 of the existing allowance line as posted on the Master Employee Record. This rate will be used instead of the full allowance rate during the time the employee is on LIA. |
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PAC 18 - Field 70 on the MER To record the leave status indicator on each reduced allowance rate. The values for this field are the same as described for element 113. This indicator is to be entered by the department in field 70 on a PAC 18C/A or ENC/ENA transactions for each reduced allowance rate reported. |
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3.13 |
When the department reports the PAC 15C 306/LIW action(s), this
LWOP record automatically controls the stop and commence of unemployment
insurance premiums and union dues deductions during the periods of
leave. The PAC 15C 306 will appear on the MER for control purposes only. It will not reduce salary. |
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3.14 |
When PSSA/SDB option 2 applies, the pay system will produce, at
the end of each period of LWOP, a notification report to the pay office for
collection of PSSA and SDB deficiencies |
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3.15 |
At the end of the LIA period, the pay system will: |
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|
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CHANGES DURING LIA |
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3.16 |
The following sections describe the procedures that departments
are to follow in the event there are pay changes during the LIA
arrangement. |
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Changes to LIA LWOP dates The department will report a stop and start of the LWOP periods using the new LIW on-line screen or a PAC 15S/C. If required, the department must recalculate the reduced salary and allowances and report an amended reduced salary and allowances using the applicable LIA pay actions. |
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Cancellation of LIA arrangement The department reports a PAC 18S 306 or a stop action on the LIA on-line screen. Upon processing of the pay transaction, the pay system will automatically reinstate the pay account to full salary and status, including affected allowances. A notification report is produced to departments and pay offices for verification of the pay account. |
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Changes to Basic Salary If there are changes to the basic salary during the LIA period (i.e. promotion), the department reports the full salary, and full former rate for retroactivity purposes, using the appropriate pay action (i.e. PAC 06 - promotion). At the same time, the department must also recalculate the reduced salary and report the amended reduced salary using the LIA pay transactions. Supplementary payments cannot be automatically issued for changes to full or reduced basic salary. The pay office is responsible for any retroactive payments or adjustments. Examples of calculations of changes to basic salary are provided in Appendix "C" of this directive. |
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Changes to Allowances If the change affects reduced allowance rates, then the department will recalculate the reduced rate and report via a PAC 18A/ENA, the full rate (field 66), the amended reduced allowance rate (field 69) and the LIA status code (field 70). In this case, supplementary payments cannot be issued automatically. The pay office is responsible for the retroactive payment or adjustment. If there are changes to an on-going allowance rate, that does not affect the reduced allowance rate, the department reports the full allowance rate and the full former rate for retroactivity purposes. The LIA status code is not to be reported. In this circumstance, supplementary payments will be automatically issued. |
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One-Time Entitlements Departments should report the full entitlement rate and the full rate as a former rate for any retroactivity (i.e. overtime, LWOP) . For these types of transactions, supplementary payments can be automatically issued. |
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Changes in Employee Status In situations where there are any changes to employee status (i.e. TSOS, SOS), please refer to existing Treasury Board policies and if applicable, follow the procedures for amending salaries or canceling the LIA arrangement. |
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PAY OFFICES RESPONSIBILITY |
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3.17 |
Pay offices will be responsible for the following
actions: |
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|
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4 | APPENDICES |
APPENDIX "VIII-A-1"
LEAVE WITH INCOME AVERAGING
CALCULATION OF REDUCED SALARY
FULL TIME
Example
Annual Salary | $33,092 .00 |
Bilingual Bonus | $ 800.00 |
Bi-weekly Paid Account (7c) | 26 pay periods x 10 days = 260 paid days per year |
Scheduled Work Week | 37.50 |
Assigned Work Week | 37.50 |
Leave Period | January 8, 1996 to March 1, 1996 (40 Days) |
Days of LWOP | Basic Salary - 40 Days |
Day of Non-entitlement | Bilingual Bonus - 44 days |
LIA Period | November 16, 1995 - November 13, 1996 |
PSSA/SDB Option |
Option 1 - PSSA/SDB on full salary
|
Formula |
|
Step |
|
1. |
Number of days of LWOP (or non entitlement) per year x
salary = amount of salary reduction number of paid days per year |
2. |
Salary minus amount of salary reduction = reduced
salary |
Reduced Basic Salary Calculation |
|
40 days of LWOP x $33.092.00 = $5,091.08 260 |
|
$33,092.00-$5,091.08 = $28,000.92 |
|
Reduced Basic Salary = $28,000.92 |
Verification of Calculation |
||
Salary due for the LIA period: |
||
16/11/95 to 07/01/96 | 37 days @ $33,092.00 = | $ 4,693.36 |
08/01/96 to 01/03/96 | 40 days @ $ 0.00 = | $ 0.00. |
02/03/96 to 13/11/96 | 183 days @ $33,092.00 = | $23.213.11 |
Total | $27,906.47 | |
Salary to be paid by the pay system during the LIA period: | ||
16/11/95 to 13/11/96 | 260 days @ $28,000.92 = |
$27,906.47 |
Reduced Allowance Calculation
44 days of non-entitlement x $800.00 =
$135.38 |
||
$800.00-$135.38 = $664.62 |
||
Reduced Allowance Rate = $664.62 |
||
Verification of Calculation Allowance due for the LIA period: |
||
16/11/95 to 31/12/95 | 32 days @ $800.00 = | $ 98.14 |
01/01/96 to 29/02/96 | 44 days @ $ 0.00 = | $ 0.00 |
01/03/96 to 13/11/96 | 184 days @ $800.00 = | $564.24 |
Total | $662.38 | |
Allowance to be paid by the pay system during LIA: | ||
16/11/95 to 13/11/96 | 260 days @ $664.62 = | $662.38 |
PART TIME
Example
Annual Salary | $33,092 .00 |
Bilingual Bonus | $800.00 |
Bi-weekly Paid Account (7c) | 26 pay periods x 6 days = 156 paid days per year |
Scheduled Work Week | 37.5 |
Assigned Work Week | 22.50 (3 days a week M/W/F) |
Leave Period | January 8, 1996 to March 1, 1996 (40 Days) |
Days of LWOP | Basic Salary - 24 days (AWW) |
Days of Non-entitlement | Bilingual Bonus - 26 days (AWW) |
LIA Period | November 16, 1995 - November 13, 1996 |
PSSA/SDB Option | Option 1 - PSSA/SDB on full salary |
Formula |
|
Step | |
1. |
Number of days of LWOP (or non entitlement) per year x
salary = amount of salary reduction number of paid days per year |
2. |
Salary minus amount of salary reduction = reduced
salary |
Reduced Basic Salary Calculation |
24 days of LWOP x $33.092.00 = $5,091.08 156 |
$33,092.00-$5,091.08 = $28,000.92 |
Reduced Basic Salary = $28,000.92 |
Note: The pay system will further pro-rate this reduced
salary rate based on the assigned work week as shown in the following
verification.
Verification of Calculation |
||
Salary due for the LIA period: |
||
16/11/95 to 07/01/96 | 22 days @ $33,092.00 = | $ 2,790.65 |
08/01/96 to 01/03/96 | 24days @ $ 0.00 = | $ 0.00 |
02/03/96 to 13/11/96 | 110 days @ $33,092.00 = | $13,953.23 |
Total | $16,743.88 | |
Salary to be paid by the pay system during the LIA period: | ||
16/11/95 to 13/11/96 | 156 days @ $28,000.92 = |
$16,743.88 |
Reduced Allowance Calculation |
|
26 non-entitled days x $800.00 = | $133.33 |
156 |
|
$800.00 - $133.33 = |
$666.67 |
Reduced Allowance Rate = | $666.67 |
Note: The pay system will further pro-rate this reduced
allowance rate based on the assigned work week as shown in the following
verification. Please refer to the Personnel-Pay Input Manual section 9-5-2
page 24, for the list of allowances pro-rated by the pay system. For all
other allowances not automatically pro-rated by the pay system, the departments
must further calculate the reduced rate to account for the assigned work
week.
Verification of Calculation |
||
Allowance due for the LIA period: | ||
16/11/95 to 31/12/95 | 19 days @ $800.00 = | $ 58.26 |
01/01/96 to 29/02/96 | 26 days @ 0.00 = | $ 0.00 |
01/03/96 to 13/11/96 | 111days @ $800.00 = | $340.39 |
Total | $398.65 | |
Allowance to be paid by the pay system during the LIA period : | ||
16/11/95 to 13/11/96 | 156 days @ $666.67 = | $398.65 |
APPENDIX "VIII-B-1"
EXAMPLE
REPORTING LEAVE WITH INCOME AVERAGING
REDUCED BASIC SALARY
PDLIA01D-001(701) | PUBLIC WORKS AND GOV. SERVICES CANADA | 95/09/14 | |
PAY | LEAVE WITH INC AVERAGING | ACCOUNT MAINTENANCE | |
>NEXT | < PAY CYC:7C | PP:24 161195/291195 | CUT OFF 151195 |
0303/ 52 764 591 | K AMYOTTE | 82 DSS SEQ: | /000000 |
*** ENTER THE LIA PERIOD AND THE REDUCED SALARY*** | |||
MODIFIER:C | EFF FR:16 11 95 1 | EFF TO:13 11 96 2 | |
RATE BASE: 9 | REDUCED RATE: 28000.920 |
***ENTER '1' IF THE EMPLOYEE IS
OPTING FOR PSSA ON FULL SALARY OR '2' ***
IF EMPLOYEE ELECTS TO
PAY DEFICIENCIES ON RETURN TO DUTY: 1
***TRANSFER TO LIW(LWOP FOR LEAVE WITH INCOME AVERAGING) SCREEN
*** TO ENTER THE LEAVE WITHOUT PAY
***USE THE ENTITLEMENT AMEND SCREEN TO REDUCE ON-GOING
ENTITLEMENTS***
APPENDIX "VIII-B-2"
EXAMPLE
REPORTING LEAVE WITH INCOME AVERAGING
LWOP PERIOD
PDLIW01D-001(701) | PUBLIC WORKS AND GOV. SERVICES CANADA | 95/09/14 | |
PAY | LEAVE WITH INC AV. LWOP | ACCOUNT MAINTENANCE | |
NEXT | PAY CYC:7C | PP:24 161195 / 291195 | CUT OFF 151195 |
0303 / 52 764 591 | K AMYOTTE | 82 DSS SEQ: | /000000 |
*** ENTER THE PERIOD OF LEAVE WITHOUT PAY*** | |||
MODIFIER: C | EFF FR: 08 01 96 1 | EFF TO: 01 03 96 2 | |
H/D/W IND: D | NUM H/D/W: 40.00 | ||
NUMBER OF NON-Ul-HOURS - FIRST PAY PERIOD: 22.50 LAST PAY
PERIOD: 52.50 |
*** USE THE ENTITLEMENT AMEND SCREEN TO REDUCE ON-GOING
ENTITLEMENTS***
Notes:
1. Unemployment Insurance premiums
In the above example, the lwop period is from January 8 to March
1,1996 inclusive.
The first pay period of the leave is from December 28,1995 to
January 10,1996.
Therefore, there are 22.50 hours (7.5 hours x 3 days) in this pay
period that are not to be counted in the calculation of UI premiums. The last
pay period of the leave is from February 22,1996 to March 6,1996. Therefore,
there are 52.50 (7.5 x 7 days) in this pay period that are not to be counted in
the calculation of UI premiums.
2. If required, refresh this screen and report the second
period of lwop.
APPENDIX "VIII-B-3"
EXAMPLE
REPORTING LEAVE WITH INCOME AVERAGING
REDUCED ALLOWANCE RATE
PDENA15D-001(701) | PUBLIC WORKS AND GOV. SERVICES CANADA | 95/09/14 | |
PAY | ENTITLEMENT AMEND | ACCOUNT MAINTENANCE | |
NEXT | PAY CYC:7C | PP:24 161195 / 291195 | CUTOFF 151195 |
0303 / 52 764 591 | K AMYOTTE | 82 DSS SEQ: | / 000000 |
ENTCD:141 | EFF FR:16 11 95 1 | EFF TO: | |
RATE BASE: 9 | RATE: 800.000 | FRM RATE: 664.620 | |
POS NUM: | POS CLASS: | ||
ACCNT CDNG: | |||
*** LEAVE WITH INCOME AVERAGING / PRE-RETIREMENT TRANSITION LEAVE | |||
IF APPLICABLE, ENTER THE CORRECT CODE ('1', '2' OR '3'): 1 | |||
*** COMPLETE FOR CLOSED PERIOD IN PAST OR FOR RETRO PERIOD-EFF FR DATE | |||
TO CURRENT PAY PERIOD START DATE | |||
H/D/W IND: | NUM H/D/W: .00 | ||
*** COMPLETE (A) IF ENT CD 070 ENTERED / COMPLETE (B) IF ENT CD 080 ENTERED | |||
(A) SUPV GRID: | (B)ITD GRID: |
Note:
Please refer to the Personnel-Pay Input Manual (PPIM) section
9-5-2 page 24, for the list of allowances pro-rated by the pay system
based on the assigned work week. For these allowances, the department reports
the reduced allowance rate and the pay system will automatically pro-rate the
reduced allowance rate based on the employee's assigned work week. For all
other allowances not pro-rated by the pay system, the departments must further
calculate the rate to account for the assigned work week and then report the
reduced rate.
APPENDIX "VIII-C-1"
CHANGES TO SALARY
Substantive Basic Salary: | $33,092.00 |
Reduced Salary: | $24,819.00 |
Scheduled Work Week: | 37.50 |
Assigned Work Week: | 37.50 |
Leave Period: | June 1, 1996 to August 31, 1996 |
LIA period: | November 16, 1995 to November 13, 1996 |
Promoted | @ $38079.00 effective March 1, 1996 |
Recalculate the Reduced Salary:
Step 1. Calculate the salary due for the LIA period. |
||
16/11/95 - 29/02/96 | 76 Days @ $33,092.00 | $ 9,640.42 |
01/03/96 - 13/11/96 | 119 Days @ $38,079.00 | $17,369.68 |
Total | $27,010.10 |
Step 2. Calculate the LIA reduced salary received prior to the promotion date. |
||
16/11/95 - 29/02/96 |
76 Days @ $24,819.00
|
$7,230.31 |
Step 3.
Determine balance of salary due. |
|
Salary Due | $27,010.10 |
Less Salary Received | -$ 7,230.31 |
Balance of Salary | $19,779.79 |
Step 4.
Calculate the amended reduced salary rate. |
||||
Balance of Salary Due x Daily Factor Remaining number of days from date of salary change to end of LIA period $19,779.79 x 260.88 =$28,044.30 184 |
Report pay action for the basic salary rate | PAC 06 A 001 | 01/03/96 | $38,079.00 |
Report pay action for the reduced salary rate | PAC 18 A 346 | 01/03/96 | $28,044.30 |
Verification | ||
SALARY PAID DURING LIA PAY PERIODS WITH ABOVE
ACTION: |
||
16/11/95 - 29/02/96 | 76 days @ $24,819.00 | $ 7,230.31 |
01/03/96 - 13/11/96 | 184 days @ $28,044.30 | $19,779.79 |
TOTAL | $27,010.10 | |
SALARY DUE DURING THE LIA PERIOD: | ||
16/11/95 - 29/02/96 | 76 days @ $33,092.00 | $ 9,640.42 |
01/03/96 - 31/05/96 | 66 days @ $38,079.00 | $ 9,633.61 |
01/06/96 - 31/08/96 | 65 days @ $ 0.00 | $ 0.00 |
01/09/96 - 13/11/96 | 53 days @ $38,079.00 | $ 7,736.07 |
TOTAL | $27,010.1 |
APPENDIX "VIII-C-2"
CHANGES TO SALARY
Employee Information: | |
Substantive Basic Salary: | $33,092.00 |
Reduced Salary: | $24,819.00 |
Scheduled Work Week: | 37.5 |
Assigned Work Week: | 37.5 |
Leave Period: | June 1, 1996 to August 31, 1996 |
LIA period: | November 16, 1995 to November 13, 1996 |
Acting Pay | @ $38079.00 effective March 1 to October 31, 1996 inclusive. |
Action Required:
|
Pay Input Transaction |
Salary | |
Basic | Reduced | ||
Step 1.
Report the full acting pay salary. Amend reduced salary to include the acting pay salary (original reduced salary + difference between substantive rate and acting rate ... $4,987.00.) |
18C 002 01/03/96 18A 306 01/03/96 |
$38,079.00 |
$29,806 .00 |
Step 2. Revert the acting rate to the original reduced salary for the period of LWOP. |
18A 306 01/06/96 |
$24,819.00 |
|
Step 3. Report the acting rate to the reduced salary on return to duty. |
18A 306 01/09/96 |
$29,806.00 |
|
Step 4.
Revert to the substantive basic salary rate. Revert the reduced salary to the original reduced rate. |
18C 001 01/11/96 18A 306 01/11/96 |
$33,092.00 |
$24,819.00 |
Verification | ||
SALARY PAID DURING LIA PAY PERIODS WITH ABOVE
ACTION: |
||
16/11/95 - 29/02/96 | 76 days @ $24,819.00 | $ 7,230.31 |
01/03/96 - 13/05/96 | 66 days @ $29,806.00 | $ 7,540.62 |
01/06/96 - 31/08/96 | 65 days @ $24,819.00 | $ 6,183.82 |
01/09/96 - 31/10/96 | 44 days @ $29,806.00 | $ 5,027.08 |
01/11/96 - 13/11/96 | 9 days @ $24,819.00 | $ 856.22 |
TOTAL | $26,838.05 | |
SALARY DUE DURING THE LIA PERIOD: | ||
16/11/95 - 29/02/96 | 76 days @ $33,092.00 | $ 9,640.42 |
01/03/96 - 31/05/96 | 66 days @ $38,079.00 | $ 9,633.61 |
01/06/96 - 31/08/96 | 65 days @ $ 0.00 | $ 0.00 |
01/09/96 - 13/11/96 | 53 days @ $38,079.00 | $ 6,422.40 |
01/11/96 - 13/11/96 | 9 days @ $33,092.00 | $ 1,141.63 |
TOTAL | $26,838.05 |
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