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1 |
PURPOSE |
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1.1 |
The purpose of this directive is to remind
compensation advisors of the appropriate remittance procedures related
to payments made by employees on leave without pay (LWOP). The policy and
procedures apply to the following: |
the Public Service Health Care Plan (PSHCP); |
the Dental Care Plan (DCP); |
the Disability Insurance (DI) Plan; |
the Long-term Disability (LTD) Insurance Plan; |
the provincial health care plans; and |
the Blue Cross. |
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1.2 |
In this text, use of the masculine
is generic and applies to both men and women.
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2. |
CANCELLATION |
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2.1 |
This document supersedes Compensation Directive
1996-011 dated February 29,1996, and 1996-018 dated April 4, 1996.
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3 |
POLICY |
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3.1 |
PSHCP |
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Members proceeding on authorized LWOP or on
seasonal/sessional layoff, may continue their coverage and that of their
dependant(s) by paying in advance the required PSHCP contributions directly
to their compensation advisor. If the leave is for a period of up to three
months, the payment of the contributions must be made in advance for the
entire period. If the leave is for a period longer than three months, the
payment of the contributions can be made to cover the entire leave period
or the member may choose to pay one or several months in advance, as long
as the first payment covers a minimum of three months. The compensation
advisor will forward the payment to the Payroll Accounting Division
(PAD) for processing. |
The PAD must receive the payment, at
least one month in advance of the month of coverage for which the payment
is intended. Otherwise, the payment will be returned to the department
concerned and the coverage will lapse for this employee. |
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3.1.1 |
DCP |
Employer-paid coverage will cease at the end
of the first three months of LWOP for any reason other than those listed
in the rule portion of Section 5.5.1 of
the Insurance Administration Manual (IAM). Members may continue their coverage
and that of their dependant(s) beyond the initial three months, by paying
in advance the total required contribution, on a monthly or a quarterly
basis, directly to their compensation advisor. The compensation advisor will
forward the payment to the PAD for processing. Cheques extending beyond
a quarterly period will not be accepted by the PAD. |
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The PAD must receive the payment, at
least one month in advance of the month of coverage for which the payment
is intended. Otherwise, the payment will be returned to the department
concerned and the coverage will lapse for this employee. |
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3.1.2 |
DI and LTD |
DI and LTD arrears of contributions, for individuals
returning to duty from periods of authorized LWOP listed in the rule portion
of sections 3.9.1 (DI)
and 4.18.1 (LTD)
of the IAM, will be recovered by monthly deductions over a period equal
to the period of authorized LWOP. |
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It is not feasible to accept DI or LTD contribution
payments in advance or in a lump sum while on authorized LWOP, since DI
and LTD contribution rates change whenever the member's salary changes.
Doing so would result in an administrative burden for all concerned. |
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A member who becomes entitled to disability
benefits while on LWOP, will not be required to pay contributions for DI
or LTD. Therefore, no DI nor LTD contribution arrears are to be taken upon
the employee's return to work. The compensation advisor must advise
the appropriate pay office (PO) to ensure that arrears of contributions
are not withheld. |
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The PAD will only accept DI and LTD
payments for employees who have been struck off strength (SOS). All other
payments will be returned to the department concerned. |
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3.1.2.1 |
DI |
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Only members on LWOP to serve with either an employee
association or a credit union are to pay their DI contributions
directly to the insurance carrier at the following address: |
| |
SunLife du Canada
1155 Metcalfe Street, P.O. Box 12500, Station CV
Montreal, QC H3C 5T6 |
|
Please refer to Section 3.9.3 (DI)
of the IAM. |
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3.1.2.2 |
LTD |
Only members on LWOP to serve with either an employee
association or a credit union are to pay their LTD contributions
directly to the insurance carrier at the following address: |
The National Life Assurance Company of Canada
Group Life and Disability Claims Department (PSMIP)
522 University Avenue
Toronto, ON M5G 1Y7 |
Telephone: 1 800 977-2117 |
Please refer to Section 4.18.3 (LTD)
of the IAM. |
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3.1.3 |
PROVINCIAL AND TERRITORIAL HEALTH CARE PLANS |
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3.1.3.1 |
Full Month |
The government contributions for provincial
and territorial health care plans for employees residing in contribution
levying jurisdictions are not payable in respect of any full calendar
month of LWOP. In order to maintain coverage, members must arrange
to pay the required full contribution directly to the provincial
authorities for any full calendar month of LWOP. |
Alberta Health and Wellness
P.O. Box 1360 Station Main
Edmonton, AB T5J 2N3 |
Telephone number: (780) 427-1432 |
BC Medical Services Plan
Ministry of Health
Group Operations Department
P.O. Box 9140,
Victoria, BC V8X 9E5 |
Telephone number: (605) 669-4211 |
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3.1.3.2 |
Partial Month |
A member who proceeds on authorized LWOP or
on seasonal/sessional layoff in the midst of a month, where there is insufficient
salary remaining in that portion of the month from which the required contributions
would normally be deducted, must remit his contribution payment to his
compensation advisor. The compensation advisor will forward the
employee's payment directly to the PAD, who will send the employee's contributions
and the corresponding government share to the provincial authorities. Similarly,
a member struck off strength (SOS) in the midst of a month, where there
is insufficient salary remaining in that portion of the month from which
the required contributions would normally be deducted, must also remit
his contribution payment to his compensation advisor. Employees must arrange
to pay the required contributions for all subsequent month(s) directly
to the provincial authorities. |
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3.1.4 |
QUEBEC BLUE CROSS and BLUE CROSS ATLANTIC CANADA |
In order to maintain coverage under these plans,
while on LWOP, employees must remit their contribution payments directly
to the appropriate insurer at the following address: |
Quebec Blue Cross
550 Sherbrooke St. West
Montreal, QC H3A 1B9 |
Blue Cross of Atlantic Canada
1874 Brunswick St.
Halifax, NS B3J 2G7
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4 |
PROCEDURES/INSTRUCTIONS |
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4.1 |
PSHCP and DCP |
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4.1.1 |
PSHCP |
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Compensation advisors must
complete the "Contribution Remittance for Period of LWOP - Public Service
Health Care Plan (PSCHP)" (PWGSC-TPSGC
2278 [ PDF
335k
]) form. The compensation advisor remits copy 1 of this form, along
with the employee's personal cheque or money order payable to the Receiver
General for Canada, directly to the PAD at the following address. |
Public Works and Government Services Canada
Pay Operations and Services Management
Payroll Accounting Division
1451 Coldrey Ave.
Ottawa, ON K1A 0S5 |
For additional information please refer
to "PSHCP-
Continuous Coverage While in Eligible Capacity" in Section 2-13-1 of
the IAM. |
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4.1.2 |
DCP |
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Compensation advisors must
complete the "Remittance of Dental Care Plan (DCP) Contributions for
a Period of Leave Without Pay" (PWGSC-TPSGC
2278-1 [ PDF
355k
]) form and forward copy 1 of this form, along with the employee's
personal cheque, or a money order payable to the Receiver General for
Canada, to the PAD at the address identified above in 3.1.1 for
PSHCP. |
For additional information please refer
to "Leave
Without Pay - When Employer-Paid Coverage is Suspended" in Section 5-5-2 of
the IAM. |
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4.2 |
DI and LTD |
Where the employee is SOS after a period of
LWOP, the compensation advisor must ensure that contributions
owing for DI or LTD are paid by the employee in a lump sum payment by
cheque or money order payable to the Receiver General for Canada and
are sent to the PAD. Deficiencies owing can also be taken from salary
or salary related payments. The cheques are to be sent to the PAD accompanied
by a "Transmittal Note and Receipt" (GC44) form that clearly identifies
the individual. The following information must be transmitted directly
to the PAD: |
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the date and the reason of the SOS;
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the period being paid and the monthly contribution rate applicable
(i.e. employee's share or employee's and employer's shares);
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the Personal Record Identifier (PRI);
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the department's full address; and
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the compensation advisor's telephone number and mailing address.
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4.2.1 |
DI - On LWOP and On Return to Duty |
Compensation advisors should refer to
Section 3-9-4 of
the IAM for detailed procedures. |
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4.2.2 |
LTD - On LWOP and On Return
to Duty |
Compensation advisors should
refer to Section 4-18-3 of
the IAM for detailed procedures. |
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4.3 |
Separate cheques, or postal or bank money orders
must be issued for each individual plan (PSHCP, DCP, DI and LTD) and sent
directly to the PAD with the appropriate remittance form. |
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Under no circumstances will PAD accept post
dated cheques. These cheques will be returned to departments.
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5 |
INQUIRIES |
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5.1 |
Any inquiries on the information
contained in this document should be addressed to your Public Works and
Government Services Canada (PWGSC) Compensation Services Office. |