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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 clients of the procedures and codes
to be used to report adjustments (revision) to Retiring Allowances (severance
pay and/or Work Force Adjustment [WFA] lump sums or Executive Employment
Transition Policy [EETP]) for former employees who are now re-employed and in
active or Temporarily struck-off-strength (T-SOS) status in the same department
and same Pay Office (PO).
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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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With the new round of collective agreements, adjustments to retiring allowances
are to be paid to former eligible employees. If these employees have since been
re-employed in the same department and PO, the Regional Pay System (RPS) does
not permit the reporting of the adjustments using the existing codes. The
existing codes can only be used for Struck-off-strength (SOS)
accounts.
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2.2
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Previously these accounts were reported manually and PO's produced manual
cheques as per the departments' requests. With the implementation of the
Standard Payment System in June 1998, the facility to produce manual cheques
was eliminated therefore new procedures are required.
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3
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POLICY
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3.1
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Former employees whose SOS date is after the effective date of a new collective
agreement for their group are entitled to adjustments to the retiring
allowances that were originally paid to them.
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4
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PROCEDURES/INSTRUCTIONS
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4.1
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Two new entitlement codes have been created to pay these adjustments to
retiring allowances for former SOS employees who have since been re-employed in
the same department and PO. These codes will be in production on March 1,
1999.
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4.2
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The two new entitlement codes are:
369 - Retiring Allowances -
Adjustment / eligible (RA - Adj. eligible)
370 - Retiring
Allowances - Adjustment / non-eligible (RA - Adj. non-eligible)
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4.3
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These codes are to be reported as lump sum using the from and to dates of the
service for which the allowance is to be paid using an "EAJ" On-line
screen. (For non On-line clients reference should be made to a PAC 71) As these
payments are subject to lump sum income tax, "SS" must be inserted in
the Pay Period field of the transaction.
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4.4
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Deductions from the payment for amounts to be transferred to an RRSP are to be
reported using the "TED" On-line screen (for non On-line clients
reference should be made to a PAC 77) with the deduction code 582. If a tax
waiver is received to reduce the amount of tax withheld from the payment, this
amount is to be reported using the "EAJ" On-line screen (for non
On-line clients reference should be made to a PAC 71) with entitlement code(s)
395 and/or 396 as applicable. Both of these transactions must also reflect
"SS" in the Pay Period field to ensure processing as a group. No
other deductions may be input with these payments.
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4.5
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These transactions will automatically update the T4A/Relevé 1 elements
appropriately.
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4.6
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If a new or separate line object is to be assigned by a department in its
accounting records to identify payments made with codes 369 or 370, the
Financial and Reporting Products Directorate Client Liaison Officer (address
below) must be advised of the line object allocated in order for the pay
expenditure control file to be updated accordingly.
Financial and Reporting Products Directorate
11B1, Phase III
Place du Portage
Hull,
Quebec
K1A 0S5
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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 Services
Office.
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[Print Version]