1
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PURPOSE
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1.1
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The purpose of this Compensation Directive is to provide you with information
concerning two entitlement codes which have been identified for the payment of
the age and service allowance under the Early Departure Incentive
Program.
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1.2
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For additional information concerning the Early Departure Incentive Program,
please refer to Compensation Directive 1995-019 dated May 18, 1-995 entitled
Budget February 1995 Provisions.
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2
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POLICY
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2.1
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Under the Early Departure Incentive Program, eligible employees are entitled to
receive an Age and Service allowance (capped at the difference between
severance entitlement and the maximum allowable payment) if age plus years of
continuous employment equals:
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50 - 54 = 1 week of regular pay 55 - 59 = 2 weeks of regular
pay 60 - 64 = 3 weeks of regular pay 65 - 69 = 4
weeks of regular pay 70 - 74 = 5 weeks of regular
pay 75 + = 6 weeks of regular pay
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3
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PROCEDURES/INSTRUCTIONS
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3.1
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Effective immediately, departments must use the following entitlement codes:
Age and years of service allowance (371 transferable and 372 non transferable)
in order to request a payment in cases where the age and service allowance is
payable. You are reminded that the entitlement codes "Early Departure
Incentive" (code 373 transferable and 374 non transferable) are to be used
for the other portion of the lump sum payment payable under the EDI
program.3.2
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3.2
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Please note that the title and authority will be amended shortly in the
Personnel-Pay lnput Manual (PPIM 9-5-2). These entitlement codes should be
completed as per the present instructions, i.e. Field 65 and
Remarks.
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3.3
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The rate of income tax to be withheld at source on these payments are the rates
for lump-sum payments i.e., the same rates used for payment of retiring
allowances and returns of superannuation contributions.
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3.4
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For further information concerning the determination of the limits for the
transfer of funds to an RRSP or to a RPP, refer to Services Pay Directive
1990-097 (49) dated September 28, 1990.
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3.5
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Care should be taken to ensure that the appropriate entitlement codes are
utilized. The proper codes must be used whether or not the employee requests a
transfer of funds to a RRSP or to a RPP.
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3.6
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If a new or separate line object is to be assigned in the department's
accounting records to identify payments made with codes 371 and 372, the
Financial Products Branch (address below) must be advised on the line object
allocated in order that the Pay Expenditure Control file may be updated
accordingly.
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Manager Financial and Reporting Products
Directorate Departmental Products Sector
Government Operational Service 10B1, Phase III, Place du
Portage Hull, Québec K1A
0S5
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4
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INQUIRIES
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4.1
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Any request for information regarding the foregoing should be addressed to your
PWGSC Client Services Centre as per Compensation Directive 1994-039 dated
October 6, 1994.
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P. Charko
Director General
Compensation Sector
Government Operational Service
Reference: CJA 9032-40, Ent. 371 and 372