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1 |
PURPOSE
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1.1 |
The purpose of this directive is to describe
changes to the Contributor System and the Regional Pay System (RPS), including
the RE-TOS System. It is also to describe the introduction of eight new
Deduction/Entitlement (DEDENT) codes required to support the new reporting
and reconciliation criteria for the Superannuation Fund 2 as identified
by the Pension Reform Project. |
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1.2 |
Public Service Superannuation Account (PSSA)
is referenced as Fund 1 or PSSA 1. Public Service Pension Fund (PSPF) is
referenced as Fund 2 or PSSA 2. Retirement Compensation Arrangement (RCA)
is referenced as RCA 1 or RCA 2. |
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1.3 |
In this text, use of the masculine is generic
and applies to both men and women.
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2 |
BACKGROUND
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2.1 |
Fund 2, created in April 2000, was modelled
after the existing Fund 1 codes. The new codes, identifying Fund 2 contributions,
are in production (see Section 4 of this directive for the list of codes).
The introduction of eight new codes will enable Public Works and Government
Services Canada (PWGSC) to ensure that contributions have been accurately
taken and accounted for according to salary-service.
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3 |
POLICY
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3.1 |
The RPS and Contributor System have been changed
effective at the time of the first update of the year 2001. The new programs
were put into production on December 15, 2000. |
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3.2 |
Supplementary Payments |
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The supplementary Calculate routine of the RPS
will continue to calculate deductions at either the high rate or low rate
depending on whether or not the pension low maximum has been reached, using
existing codes 761 or 760, respectively, for current year payments. |
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For payments that are retroactive to a previous
year, three new generated PSSA 2 deduction codes have been introduced as
follows: |
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PSSA 2--Retroactive Low Rate-P/Y (Code 565);
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PSSA 2-Retroactive High Rate-P/Y(Code 569); |
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RCA 2--Retroactive Rate-P/Y (Code 604). |
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For these payments, where the effective date
is before January 1, 2000, or Pay Period (PP) is Year 1, Year 2 or Year
3, the process of checking elements M930, M931 and M932 to determine if
the previous year(s) maximum low rate has been reached remains the same.
When the Superannuation calculation is performed at a low or high rate,
as applicable, Master Employee Record (MER) element M711 is updated and
the Allowances/Deductions (A/D) portion of the register file reflects the
appropriate generated DEDENT code. |
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3.3 |
Leave without Pay (LWOP) and Non-Payables
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Two new PSSA 2 codes have been created to calculate
retroactive LWOP periods applicable to non-payable codes 202 and 270 as
follows: |
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PSSA 2--Retroactive LWOP Low Rate (Code 574);
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PSSA 2--Retroactive LWOP High Rate
(Code 580); |
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Code 574 will be generated when calculating
retroactive (current and previous years) PSSA 2 for non-payable code 202.
Code 580 will be generated when calculating high rate portion
for non-payable code 270. |
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3.3 |
Leave without Pay (LWOP) and Non-Payables |
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Two new PSSA 2 codes have been created to calculate
retroactive LWOP periods applicable to non-payable codes 202 and 270 as
follows: |
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PSSA 2--Retroactive LWOP Low Rate (Code 574); |
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PSSA 2--Retroactive LWOP x 2 (Code 580); |
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Code 574 will be generated when calculating
retroactive (current and previous years) PSSA 2 for non-payable code 202.
Code 580 will be generated when calculating the doubled portion for non-payable
code 270. |
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3.4 |
RE-TOS Calculation System |
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The RE-TOS Calculation System is being changed
to generate the new PSSA 2 Current LWOP Deficiencies Low and High Rate codes
561 and 563, respectively, and RCA 2 LWOP Deficiencies code 585 to be used
by the Pay and Pension Agent for input into the RPS. These changes will
not be put into effect until the end of March 2001. Until that time, please
input these new codes in place of codes 760, 761 and 783 respectively, which
are produced with the current version of the RE-TOS Calculation System.
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3.5 |
Contributor System |
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The Contributor System Contribution and Interest
processes have been modified to accept the new DEDENT codes that are passed
via the RPS Financial Information System (FIS) payment files. |
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The On-line Contribution Maintenance application
used by the Superannuation Directorate to correct rejects will also accept
input using the new DEDENT codes. |
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The new contribution transactions will update
the Life-to-Date totals in both the PSSA 2 and RCA 2. |
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As well, the new transactions will be used to
support new contribution accounting and reconciliation processes between
the Contributor System and the Common Departmental Financial System (CDFS).
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4 |
PROCEDURES/INSTRUCTIONS
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4.1 |
The new DEDENT codes introduced for PSSA 2 and
RCA 2 are as follows: |
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PSSA 2--LWOP Deficiencies Single Rate Low (Code
561); |
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PSSA 2--LWOP Deficiencies Single Rate High (Code
563); |
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RCA 2--LWOP Deficiencies Single Rate (Code 585);
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RCA 2--Retroactive Rate-P/Y (Code 604); |
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PSSA 2--Retroactive Low Rate-P/Y (Code 565);
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PSSA 2--Retroactive High Rate-P/Y (Code 569);
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PSSA 2--Retroactive LWOP Low Rate
(Code 574); |
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PSSA 2--Retroactive LWOP High Rate (Code
580).
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4.1 |
The new DEDENT codes introduced for PSSA 2 and
RCA 2 are as follows: |
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PSSA 2--LWOP Deficiencies Single Rate Low (Code
561); |
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PSSA 2--LWOP Deficiencies Single Rate High (Code
563); |
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RCA 2--LWOP Deficiencies Single Rate (Code 585); |
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RCA 2--Retroactive Rate-P/Y (Code 604); |
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PSSA 2--Retroactive Low Rate-P/Y (Code 565); |
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PSSA 2--Retroactive High Rate-P/Y (Code 569); |
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PSSA 2--Retroactive LWOP Low Rate (Code 574); |
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PSSA 2--Retroactive LWOP x 2 (Code 580).
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5 |
INQUIRIES
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5.1 |
Any request for information regarding the foregoing
should be addressed to your Public Works and Government Services Canada
(PWGSC) Compensation Services Office. |
R. Jolicoeur
Director General
Compensation Sector
Government Operational Service