COMPENSATION DIRECTIVE: 2002-010

SUBJECT:

New and Modified Allowances for the Health Services Group (SH)

PURPOSE

The purpose of this directive is to provide information on the new and modified allowances described in the Health Services (SH) Group's collective agreement signed on December 24, 2001. This new agreement is available on the following Treasury Board Secretariat (TBS) Web site:

Internet: http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/coll_agre/siglist_e.html

In this text, use of the masculine is generic and applies to both men and women.

BACKGROUND

The employer (Treasury Board) is offering various allowances to certain employees within the SH Group. Please refer to the following appendices of the collective agreement for more information: Educational Allowance (Appendix B); Terminable Allowances (Appendix C, D, J, K, L and M); Retention Allowance (Appendix F); Expanded Professional Role Allowance (Appendix G) and the Nurse in Charge Allowance (Appendix H).

POLICY

General Policy

These new and modified allowances are effective January 1, 2002, except for the Education Allowance (Appendix B) which is effective October 1, 2000.

These allowances are not considered part of salary (except for the Education Allowance), and as a result, entitlements related to pay situations (such as promotions or acting pay) will not be recalculated. These allowances are not to be used in calculating 4% gratuity or other entitlements such as premium pay in lieu of statutory holidays.

The Public Service Staff Relations Act (PSSRA) requires that collective agreements be implemented within 90 days after the date of their signature. Consequently, all pay adjustments, including these allowances, shall be received by March 24, 2002.

These allowances shall not be paid to a person who ceased to be a member of the bargaining unit prior to the signature of this agreement.

Education Allowance -- Appendix B

This existing allowance has modifications to various rate amounts as indicated in the collective agreement in Appendix 'B'. Note: This allowance is effective October 1, 2000.

Terminable Allowances -- Appendices C, D, J.

These existing terminable allowances apply to certain employees of the MD group under the SH agreement as described in the above appendices.

These allowances are now daily amounts to be paid biweekly including pay period plus (PP+). An employee is no longer required to work ten (10) days in a month in order to be entitled to these allowances for that month.

A part-time employee will be paid the daily amount divided by seven decimal five (7.5) for each hour paid at his hourly rate of pay.

An employee will not be entitled to this allowance for periods of leave without pay or when he is under suspension.

Retention Allowance -- Appendix F

This existing allowance now applies to NU-CHN's permanently assigned to nursing stations situated in remote and isolated locations.

This also applies to the NU-CHN-5 Practice Consultants whose regular duties of their position requires them to utilize the skills of the expanded scope of practice while working with nurses employed in these communities.

An employee can only become eligible for this allowance after he has received ten (10) days pay per calendar month for twelve (12) months continuously or discontinuously.

Only full-time indeterminate employees and those hired for a term of twelve (12) months or more are eligible for this allowance.

This existing allowance is now a daily amount to be paid biweekly including PP+. An employee is no longer required to work ten (10) days in a month in order to be entitled to the allowance for that month.

An employee on shift work will be paid the daily amount divided by 7.5 for each hour of his shift for which he is paid.

Employees who are on a non standard shift cycle will be paid based on the average number of hours per week over a complete shift cycle.

An employee will not be entitled to this allowance for periods of leave without pay or when he is under suspension.

Expanded Professional Role Allowance -- Appendix G

Recently, a review of the eligibility of this allowance as being included as a non pensionable allowance was performed. The result is that this allowance should be subject to pension and insurance deductions retroactive to the previous collective agreement signed on March 27, 2000. The recovery procedures for the retroactive pension contributions and insurance premiums will be communicated in a future Compensation Directive.

This entitlement provides the Health Canada NU-CHN-2, NU-CHN-3 and NU-CHN-4 employees in nursing stations that are situated in remote and isolated locations with a daily allowance for the performance of an expanded professional role.

This entitlement also provides the NU-CHN-5 Practice Consultants whose regular duties of their position requires them to use the skills of the expanded scope of practice while working with nurses employed in these communities.

Employees of the NU-CHN group who are currently in receipt of this allowance at the time of signing and have not successfully completed an approved clinical skills training program are required to attend the first available course.

If an employee refuses to attend the course without an acceptable reason, he will cease to be entitled to the allowance. Once the employee completes the course, he will become eligible for the allowance.

The employer will ensure that the nurses required to perform the expanded role will have access to the clinical skills training program within one year of their appointment.

This existing allowance is now a daily amount to be paid biweekly including PP+. An employee is no longer required to work ten (10) days in a month to be entitled to the allowance for that month.

An employee on shift work will be paid the daily amount divided by 7.5 for each hour of his shift for which he is paid.

Employees who are on a non standard shift cycle will be paid based on the average number of hours per week over a complete shift cycle.

An employee will not be entitled to this allowance for periods of leave without pay or when he is under suspension.

Nurse in Charge Allowance -- Appendix H

Recently, a review of the eligibility of this allowance as being included as a non pensionable allowance was performed. The result is that this allowance should be subject to pension and insurance deductions retroactive to the previous collective agreement signed on March 27, 2000. The procedures for the recovery of these deductions will be communicated in a future Compensation Directive.

This allowance is to recognize the role of the Nurse-in-Charge for the performance of the duties within the Health Services Group. Please note this allowance is no longer restricted to nurses situated in remote and isolated communities.

This existing allowance is now a daily amount to be paid biweekly including PP+. An employee is no longer required to work ten days in a month to be entitled to the allowance for that month.

An employee on shift work will be paid the daily amount divided by 7.5 for each hour of his shift for which he is paid.

Employees who are on a non standard shift cycle will be paid based on the average number of hours per week over a complete shift cycle.

An employee will not be entitled to an allowance for periods of leave without pay or when he is under suspension.

A part-time employee shall be paid the daily amount divided by 7.5 for each hour paid at his hourly rate of pay.

Terminable Allowance -- Appendix K

This new allowance applies to employees who perform the duties at the MD-MOF-1 through MD-MOF-4 levels in Correctional Services Canada for the performance of the MD duties.

This daily allowance is to be paid biweekly including PP+. An employee is not required to work ten (10) days in a month to be entitled to the allowance for that month.

A part-time employee shall be paid the daily amount divided by 7.5 for each hour paid at his hourly rate of pay.

An employee will not be entitled to an allowance for periods of leave without pay or when he is under suspension.

Terminable Allowance -- Appendix L

This new allowance applies to employees who perform the duties at the NU-HOS-1 through NU-HOS-6 levels in Correctional Services Canada for the performance of NU duties.

This daily allowance is to be paid biweekly including PP+. An employee is not required to work ten days in a month to be entitled to the allowance for that month.

A part-time employee shall be paid the daily amount divided by 7.5 for each hour paid at his hourly rate of pay.

An employee on shift work will be paid the daily amount divided by 7.5 for each hour of his shift for which he is paid.

Employees who are on a non standard shift cycle will be paid based on the average number of hours per week over a complete shift cycle.

An employee will not be entitled to an allowance for periods of leave without pay or when he is under suspension.

Terminable Allowance -- Appendix M

This new allowance applies to psychologists (PS) at the Personnel Psychology Center of the Public Service Commission for the performance of PS duties.

This daily allowance is to be paid biweekly including PP+. An employee is not required to work ten (10) days in a month to be entitled to the allowance for that month.

A part-time employee will be paid the daily amount divided by 7.5 for each hour paid at his hourly rate of pay.

An employee will not be entitled to this allowance for periods of leave without pay or when he is under suspension.

PROCEDURES/INSTRUCTIONS

The examples listed below may not apply to all employees depending on their individual situations and may vary as a result of the implementation dates within the Regional Pay System and the Deduction Entitlement Control File. The production dates will be confirmed via Broadcast Message. Please note that the Pay Office will not make any adjustments to these allowances for the implementation of this particular collective agreement. The Compensation Advisors will be required to create the pay transactions listed below for the same pay period. Please note that these input procedures are an exception but are necessary to implement the change from a monthly to a daily allowance. All future pay transactions should be input using the instructions in the Personnel-Pay Input Manual (PPIM).

Terminable Allowances -- Appendices C, D, J

These Terminable Allowances are currently paid to eligible employees of the SH group using entitlement code 229. As a result of the changes negotiated with this new collective agreement, the entitlement code 227 will now be used to pay these allowances effective January 1, 2002. In order to implement these changes retroactively, please see the example below.

This example is using the implementation pay period of PP 07, 2002, and an employee at the MD-MOF-01 level (Appendix C). In this case, it is required to:

• Stop entitlement code 229 effective January 1, 2002;

• Commence entitlement code 227 effective January 1, 2002, with a daily amount of $53.09, overriding the automated retroactivity with an 'X' in the hour-week-day (HWD) indicator.

  The following adjustment is required as a result of the change from a monthly to a daily allowance:

• Recover entitlement code 229 with a lump sum amount of $14.32 for the period of January 1, 2002, to March 13, 2002. In this example, the employee received $1110.00 per month for two and a half months ($2775.00) and is due $53.09 for 52 days ($2760.68).

Retention Allowance -- Appendix F

This allowance is currently paid using entitlement code 188. The Compensation Advisor will be responsible to amend the current allowance with the new rate amounts. Please see the example below.

This example is using the implementation pay period of PP 07, 2002, and a NU-CHN employee.

• Amend entitlement code 188 effective January 1, 2002, with a daily amount of $17.25.

  The following adjustment is required as a result of the change from a monthly to a daily allowance.

• Recover Entitlement code 188 with a lump sum amount of $40.50 for the period of January 1, 2002, to March 13, 2002. The employee received $ 375.00 per month for two and a half months ($937.50) and is due $17.25 for 52 days ($897.00).

Expanded Professional Role Allowance -- Appendix G

This allowance is currently paid using entitlement code 024. The Compensation Advisor will be responsible to input the required pay transactions. In order to ensure that the pension contributions and insurance premiums are deducted, the process below is necessary. The retroactive pension contributions and insurance premiums (effective October 1999) will be implemented at a future date.

This example is using the implementation pay period of PP 06, 2002, and a NU-CHN employee.

The following adjustment is required as a result of the change from a monthly to a daily allowance.

• Recover Entitlement code 024 with a lump sum amount of $34.00 for the period of January 1, 2002, to February 27, 2002. The employee received $500.00 per month for two months ($1000.00) and is due $23.00 for 42 days ($966.00).

Nurse in Charge Allowance -- Appendix H

This allowance is currently paid using entitlement code 026. The Compensation Advisor will be responsible to input the required pay transactions. In order to ensure that the pension contributions and insurance premiums are deducted, the process below is necessary. The retroactive pension contributions and insurance premiums (effective October 1999) will be implemented at a future date.

This example is using the implementation pay period of PP 06, 2002, and a NU-CHN employee.

The following adjustment is required as a result of the change from a monthly to a daily allowance.

• Create a supplementary payment for entitlement 026 for the period of January 1, 2002, to February 27, 2002, with a lump sum amount of $460.00. The employee received $250.00 per month for two months ($500.00) and is due $23.00 for 42 days ($966.00).

Terminable Allowance -- Appendices K, L, M.

These new daily allowances are to be paid using the existing entitlement code 227.

Compensation Advisors are responsible to commence the allowance for all eligible employees.

These new allowances are subject to the following:

• Federal/ Provincial Income Tax

• Employment Insurance

• Quebec/Canada Pension Plan

• Disability Insurance and Long Term Disability

• Public Service Superannuation Plan

• Supplementary Death Benefit Plan

Please refer to section 4-4-18, 9-5-2 and 14-6 of the Personnel Pay Input Manual (PPIM) for pay input requirements at the following web site:

Internet: http://www.pwgsc.gc.ca/compensation/ppim/ppim-toc-e.html

The PPIM will be updated March 12, 2002, to incorporate the relative information contained in this Compensation Directive.

INQUIRIES

Any request for information regarding these new allowances should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.