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1999-005-e.html
COMPENSATION DIRECTIVE: 1999-005
Appendix "A"
Appendix "B"
February 10, 1999
SUBJECT: Revised Work Force Adjustment Policies
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1
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PURPOSE
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1.1
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The purpose of this directive is to advise departments of the Work Force
Adjustment (WFA) policies that are in effect and to introduce two new
entitlement codes and a new leave without pay (LWOP) code to implement the new
policies.
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1.2
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In this text, use of the masculine is generic and applies to both men and
women.
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2
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BACKGROUND
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2.1
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As you are aware, the Early Retirement Incentive Program (ERI) ended on March
31, 1998, and the Early Departure Incentive Program (EDI) ended on June 23,
1998. The Workforce Adjustment Policies were therefore reviewed by Treasury
Board, the National Joint Council and Bargaining Agents.
This Compensation Directive should be read in conjunction with
Compensation Directive
1996-037
dated September 6, 1996, and Services Pay Directive 1989-143(39) dated November
9, 1989, as well as Work Force Adjustment Directive 1996 (for members of the
Social Science Employees Association), Work Force Adjustment Directive 1998,
Work Force Adjustment Appendix to the Public Service Alliance of Canada
collective agreements and the Executive Employment Transition
Policy.
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3
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POLICY
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3.1
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On June 23, 1998, the Treasury Board Secretariat, the National Joint Council
and Bargaining Agents reached an agreement on amendments to the Work Force
Adjustment Directive 1996 (WFAD 1996). However, two bargaining agents, the
Social Science Employees Association (SSEA) and the Public Service Alliance of
Canada (PSAC) have opted out. Therefore, the
WFAD 1996, as amended on July 16, 1996, only applies to employees represented
by SSEA. The WFA entitlements have remained the same.
The Work Force Adjustment Appendix (WFAA) to PSAC Collective
Agreements which was agreed to by Treasury Board and PSAC on August 29, 1998,
applies to employees represented by PSAC. The
WFAD 1998 that came into force on June 23, 1998, as amended on December 16,
1998, applies to members of the remaining bargaining agents.
The Executive Employment Transition Policy (EETP) that was
effective from September 1, 1992, until March 31, 1995, was reinstated
effective April 1, 1998. This policy applies to members of the Executive Group,
and certain senior excluded levels of other occupational groups.
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3.2
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There are two new entitlement options and a new LWOP reason included in the
WFAD 1998 and the WFAA.
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3.2.1
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The Transition Support Measure (TSM) is a cash payment, based on an employee's
years of service in the Public Service (see Appendix A). Employees choosing
this option must resign but will be considered to be laid-off for purposes of
severance pay.
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3.2.2
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The Education Allowance is the TSM payment (see above) plus a separate payment
of not more than $7000 for reimbursement of receipted expenses for tuition from
a learning institution and costs of books and mandatory
equipment. Employees may resign from the public
service but be considered to be laid-off for severance pay purposes on the date
of their departure; or delay their departure date and go on LWOP for a maximum
period of two years, while attending the learning institution. The TSM shall be
paid in one or two lump-sum amounts over a maximum two-year period. During this
period, employees may continue to be public service benefit plan members and
contribute both employer and employee share to the benefits plans and the
Public Service Superannuation Plan. At the end of the two-year leave without
pay period, unless the employee has found alternate employment in the Public
Service, the employee will be laid off in accordance with the Public Service
Employment Act.
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4
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PROCEDURES/INSTRUCTIONS
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4.1
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The particulars of the new entitlement codes (also used for EETP since the
policy came into force) payable under the WFAD 1998 and the WFAA are as
follows:
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4.1.1
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Code 365 - TRANSITION SUPPORT MEASURE (TSM) OR PAYMENTS IN LIEU OF FOREGONE
BENEFITS - ELIGIBLE Code 365 is to be used
to requisition that portion of the entitlement which is eligible to be
transferred to a Registered Retirement Savings Plan (RRSP) or to a Registered
Pension Plan (RPP). Code 366 - Transition
Support Measure (TSM) or Payments in Lieu of forgone Benefits - NON
ELIGIBLE Code 366 is to be used to
requisition that portion of the entitlement which exceeds the established
limits for transfer to an RRSP or to an RPP. This payment is subject to income
tax deductions.
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4.1.2
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Code 367 - TSM EDUCATION ALLOWANCE OR COMPENSATION FOR PENSION REDUCTION -
ELIGIBLE Code 367 is to be used to
requisition that portion of the TSM entitlement or compensation for pension
reduction which is eligible to be transferred to an RRSP or to an RPP.
Code 368 - TSM EDUCATION ALLOWANCE OR
COMPENSATION FOR PENSION REDUCTION - NON ELIGIBLE
Code 368 is to be used to requisition that portion of the TSM
entitlement or compensation for pension reduction which exceeds the established
limits for transfer to an RRSP or to a RPP. This payment is subject to income
tax deductions. Code 242 - TSM EDUCATION
ALLOWANCE - LWOP Code 242 is to be used to
requisition that portion of the TSM entitlement when paid during the LWOP
period. This allowance is not considered a retiring allowance; therefore, it is
subject to income tax, Canada/Québec Pension Plan and Employment
Insurance according to the Income Tax Act.
LEAVE WITHOUT PAY
Leave without Pay reason code "L - Other Reasons" is to be used for
those employees who delay their departure date and opt for leave without pay
for a maximum period of two years, while attending a learning institution.
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Code 239 - REIMBURSEMENT OF TUITION FEES AND BOOKS
With respect to the Education Allowance the current entitlement code 239
(tuition fees) is to be used for requesting the amount of not more than
$7,000.
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4.1.3
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Full details of these payments are included in section 6.3 of the revised WFAD
1998 and the WFAA.
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4.1.4
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New entitlement codes 365, 366, 367 and 368 are operational in the Regional Pay
System. The input requirements for these new codes are identical to current
entitlement codes 054 (Severance Pay) and 051 (Retiring Allowance
non-eligible). New entitlement code 242 is
operational in the Regional Pay System. The input requirements for this new
code is lump sum with the effective from date being the start of continuous
service date and the effective to date being the effective start date of the
TSOS period.
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4.1.5
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Current entitlement codes 108 (Retiring Allowance - Transferable) and 051
(Retiring Allowance Non-Transferable) are to be used for requesting pay in lieu
of unfulfilled surplus period as provided for in sections 6.2 of the WFAD 1996,
and, section 6.3 of the WFAD 1998 and the WFAA, as well as section 4.1.1 of the
EETP.
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The attached Appendix "B" provides a revised list of entitlement
codes for payments made under the WFAD 1996, the WFAD 1998, the WFAA, the EETP.
Also included are the EDI codes which may be necessary even though the program
expired on June 23, 1998.
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4.1.6
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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 an RRSP or to an RPP.
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4.1.7
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If a new or separate line object is to be assigned by a department in the
department's accounting records to identify payments made with codes 242, 365,
366, 367, or 368, the Financial and Reporting Products Directorate (address
below) must be advised of the line object allocated in order that the pay
expenditure control file may be updated accordingly.
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Financial and Reporting Products Directorate 11-B-1, Phase
III Place du Portage Hull, Quebec KlA OS5
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5
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INQUIRIES
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5.1
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Any request for information regarding the foregoing should be addressed to your
Public Works and Government Services Canada Compensation Office.
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Original Signed by P. Charko
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P. Charko Director
General Compensation Sector Government
Operational Service
Reference: CJA 9015-24 DEDENT 242, 365, 366,
367, 368
Appendix "A"
Years of Service in the Public Service
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Transition Support Measure (TSM) (Payment in weeks' pay)
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0
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10
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1
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22
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2
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24
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3
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26
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4
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28
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5
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30
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6
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32
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7
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34
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8
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36
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9
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38
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10
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40
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11
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42
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12
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44
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13
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46
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14
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48
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15
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50
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16
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52
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17
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52
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18
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52
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19
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52
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20
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52
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21
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52
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22
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52
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23
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52
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24
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52
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25
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52
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26
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52
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27
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52
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28
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52
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29
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52
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30
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49
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31
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46
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32
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43
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33
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40
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34
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37
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35
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34
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36
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31
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37
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28
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38
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25
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39
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22
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40
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19
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41
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16
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42
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13
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43
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10
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44
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07
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45
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04
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For indeterminate seasonal and part-time employees, the TSM will be
pro-rated in the same manner as severance pay under the terms of the collective
agreement.
Severance pay provisions of the collective agreement are in addition to the
TSM.
Appendix "B"
LIST OF ENTITLEMENT CODES FOR PAYMENTS UNDER THE WFAD, WFAA,
EETP, AND EDI POLICIES
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TITLE
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CODE AUTHORITY
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DESCRIPTION
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051
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Retiring Allowance
Non-transferable
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Section 6.2 and 7.6 of WFAD 1996; Section 6.3 of WFAD 1998 and WFAA
Section 4.1.1 of EETP
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Pay in lieu of unfulfilled surplus period
Payment in lieu of notice
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108
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Retiring Allowance Eligible
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Section 6.2 and 7.6 of WFAD 1996; Section 6.3 of WFAD 1998 and WFAA
Section 4.1.1 of EETP
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Pay in lieu of unfulfilled surplus period
Payment in lieu of notice
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242
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Transition Support Measure (TSM) Education Allowance
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Section 6.3 of WFAD 1998 and WFAA
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The employee delayed the departure date and went on Leave without
Pay while attending a learning institution. Transition Support Measure (TSM)
cash payment, option c) plus an amount of not more than $7000 for tuition fees,
books or equipment. If the TSM is paid after the LWOP period, meaning the
employee has terminated employment use codes 367 or 368.
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250
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Separation Benefit or Alternative
Lump Sum Payment Eligible
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Section 6.3 of WFAD 1996
Section 4.3 of EETP
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Separation benefit Alternative
settlement of up to 15% of base salary
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279
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Separation Benefit or Alternative
Lump Sum Payment Non-eligible
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Section 6.3 of WFAD 1996
Section 4.3 of EETP
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Separation benefit Alternative
settlement of up to 15% of base salary
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363
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Retention Payment
Transferable
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Sections 6.4 to 6.7 and 7.6 of WFAD 1996; Section
6.4 and 7.6 of WFAD 1998 and WFAA
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Retention payment: total facility closure, relocation of work
units, and alternative delivery initiative
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364
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Retention Payment
Non-transferable
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Sections 6.4 to 6.7 and 7.6 of WFAD 1996; Section
6.4 and 7.6 of WFAD 1998 and WFAA
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Retention payment: total facility closure, relocation of work
units, and alternative delivery initiative
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365
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Transition Support Measure (TSM) or
Payment in Lieu of Foregone Benefits
Eligible
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Section 6.3 of WFAD 1998 and WFAA
Section 4.1.2 of EETP
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Transition Support Measure cash payment, resignation option
b) Payment in lieu of foregone benefits
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366
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Transition Support Measure (TSM) or
Payment in Lieu of Foregone Benefits
Non-eligible
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Section 6.3 of WFAD 1998 and WFAA
Section 4.1.2 of EETP
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Transition Support Measure cash payment, resignation option
b) Payment in lieu of foregone benefits
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367
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Transition Support Measure (TSM) Education Allowance or
Compensation for Pension Reduction
Eligible
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Section 6.3 of WFAD 1998 and WFAA
Section 4.1.3 of EETP
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Transition Support Measure (TSM) cash payment, option c) plus an
amount of not more than $7000 for tuition fees, books or equipment If the TSM
is paid during the LWOP code 242 must be used.
Up to 30% of salary for pension reduction
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368
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Transition Support Measure (TSM) Education Allowance or
Compensation for Pension
Reduction Non-eligible
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Section 6.3 of WFAD 1998 and WFAA
Section 4.1.3 of EETP
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Transition Support Measure (TSM) cash payment, option c) plus an
amount of not more than $7000 for tuition fees, books or equipment If the TSM
is paid during the LWOP code 242 must be used.
Up to 30% of salary for pension reduction
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371
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Age and years of service allowance under EDI
Eligible
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TB 823092 dated June 27, 1995 - Early Departure Incentive Program
Order
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Age and years of service allowance under the Early Departure
Incentive Program
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372
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Age and years of service allowance under EDI
Non-eligible
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TB 823092 dated June 27, 1995 - Early Departure Incentive Program
Order
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Age and years of service allowance under the Early Departure
Incentive Program
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373
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Payment under EDI
Transferable
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TB 823092 dated June 27, 1995 - Early Departure Incentive Program
Order
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Lump sum payment under the Early Departure Incentive Program other
than age and service allowance and severance pay
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374
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Payment under EDI
Non-transferable
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TB 823092 dated June 27, 1995- Early Departure Incentive Program
Order
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Lump sum payment under the Early Departure Incentive Program other
than age and years of service allowance and severance pay
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385
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ADI Lump Sum Transferable
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Sections 7.7.1 and 7.7.4 of WFAD 1996, WFAD 1998 and WFAA
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3 months pay to accept a type 2 job arrangement or 6 months pay to
accept a type 3 job arrangement in an Alternative Delivery Initiative
situation
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386
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ADI Lump Sum
Non-transferable
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Sections 7.7.1 and 7.7.4 of WFAD 1996, WFAD 1998 and WFAA
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3 months pay to accept a type 2 job arrangement or 6 months pay to
accept a type 3 job arrangement in an Alternative Delivery Initiative
situation
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387
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ADI Pension Lump Sum
Transferable
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Section 7.7.3 of WFAD 1996, WFAD 1998 and WFAA
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3 months pay to accept a type 1 or type 2 job arrangement in an
Alternative Delivery Initiative situation where pension arrangements are below
the prescribed standard
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388
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ADI Pension Lump Sum
Non-transferable
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Section 7.7.3 of WFAD 1996, WFAD 1998 and WFAA
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3 months pay to accept a type 1 or type 2 job arrangement in an
Alternative Delivery Initiative situation where pension arrangements are below
the prescribed standard
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389
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ADI Salary Top-up allowance
Transferable
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Sections 7.7.1 and 7.7.4 of WFAD 1996, WFAD 1998 and WFAA
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Lump sum payment to top-up salary offered in a type 2 or type 3
job arrangement in an Alternative Delivery Initiative situation
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390
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ADI Salary Top-up allowance
Non-transferable
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Sections 7.7.1 and 7.7.4 of WFAD 1996, WFAD 1998 and WFAA
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Lump sum payment to top-up salary offered in a type 2 or type 3
job arrangement in an Alternative Delivery Initiative situation
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391
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ADI Additional Salary Top-up allowance
Transferable
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Section 7.7.2 of WFAD 1996, WFAD 1998 and WFAA
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Additional 6 months of salary top-up allowance in a type 2 job
arrangement where new salary falls below 80% of former salary
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392
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ADI Additional Salary Top-up allowance
Non-transferable
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Section 7.7.2 of WFAD 1996, WFAD 1998 and WFAA
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Additional 6 months of salary top-up allowance in a type 2 job
arrangement where new salary falls below 80% of former salary
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WFAD 1996 - Workforce Adjustment Directive 1996 (for members of Social
Science Employees Association) WFAD 1998 - Workforce Adjustment
Directive 1998 WFAA - Workforce Adjustment Appendix to Public
Service Alliance of Canada Collective Agreements EETP -
Executive Employment Transition Policy EDI - Early Departure
Incentive Program ADI - Alternative Delivery Initiatives
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