COMPENSATION DIRECTIVE: 2003-012

1

PURPOSE

1.1

The purpose of this directive is to inform compensation advisors of changes to the Treasury Board Secretariat's (TBS) Isolated Posts and Government Housing Directive.

1.2

This directive should be read in conjunction with Compensation Directive 1989-053(27) dated June 12, 1989, entitled "Special Accommodation Allowance".

1.3

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

2

POLICY

2.1

TBS has approved a rate increase, retroactive to August 1, 2003, for the Environment Allowance (entitlement code 297) and the Living Cost Differential (entitlement code 101). TBS has also introduced a new Shelter Cost Differential Allowance, retroactive to August 1, 2003.

2.2

Shelter Cost Differential

The Shelter Cost Differential Allowance (SCD) will be paid to all employees (including term, casual and part-time) living in private accommodation in qualifying isolated post locations for any period of time. Employees must also be entitled to the Environment Allowance under the Isolated Posts and Government Housing Directive. Please refer to the following TBS Web site for qualifying isolated post locations:

http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/ipgh-dpill
/ipghdm_e.asp

Employees who live in government housing at these locations (with the exception of Yellowknife) are not currently eligible to receive the SCD.

2.3

The pay system will automatically prorate the SCD allowance for part-time employees.

2.4

For partial months of eligibility, the SCD allowance is to be calculated in the same manner as salaries, i.e. based on compensation days.

2.5

Employees shall not be entitled to the SCD allowance in respect of any period during which they are

a) granted leave without pay pursuant to an appropriate governing authority, or

b) absent from duty without leave.

Exceptions to this can be found in sub-sections 1.20.4 and 1.20.5 of the Isolated Posts and Government Housing Directive.

3

PROCEDURES/INSTRUCTIONS

3.1

Environment Allowance and the Living Cost Differential

Compensation advisors are required to amend the ongoing rate and pay the retroactivity for the Environment Allowance and the Living Cost Differential by completing an "Entitlement -- Amend" transaction. Please refer to sections 14-6-2 and 4-4-18-5-1 of the Personnel-Pay Input Manual (PPIM), for instructions.

3.2

Shelter Cost Differential Allowance

Compensation advisors may use the existing pay code (046 -- Special Accommodation Allowance) to process this new transaction. Please refer to sections 14-6-1 and 4-4-18-3-1 of the PPIM, for instructions. For additional information, please refer to the TBS Information Notice at the following site:

http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/ipgh-dpill/
inysaa-inyisfl_e.asp

This allowance is subject to tax, Canada Pension Plan (CPP)/Quebec Pension Plan (QPP), and Employment Insurance (EI) but is not subject to superannuation. It is not to be included in salary for the calculation of the 4% vacation pay.

3.3

Rates

|

These new rates are available under Appendix B (Environment Allowance), Appendix C (Living Cost Differential) and Appendix M (Shelter Cost Differential) of the TBS directive at the following TBS site:

http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/ipgh-dpill/
ipghdpart1-1_e.asp#Rates

3.4

Shelter Cost Differential Allowance/Special Accommodation Allowance (Yellowknife Only)

Effective August 1, 2003, employees in private or government housing in Yellowknife only, will be entitled to either the Special Accommodation Allowance or the new Shelter Cost Differential Allowance, or a combination of both. These rates are available at the following TBS site:

http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/ipgh-dpill/
inysaa-inyisfl_e.asp

The Deduction/Entitlement Control File was updated on August 8, 2003, to reflect the revised hourly and annual rate maximums, effective August 1, 2003.

4

INQUIRIES

4.1

Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.