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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
during or after a period of leave without pay (LWOP). The policy and procedures
apply to the following: |
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the Public Service Superannuation Account (PSSA), |
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the Public Service Pension Fund (PSPF), |
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the Retirement Compensation Arrangements Account (RCAA), and |
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the Supplementary Death Benefit Account (SDBA). |
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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 |
POLICY |
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2.1 |
PSSA, PSPF, RCAA and SDBA |
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Contributions to the PSSA, the PSPF, the RCAA and the SDBA, in respect
of a period LWOP, may be remitted in one of the following ways: |
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a) in a lump sum amount within 30 days of the employee's return to duty; |
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b) by deductions from salary in equal instalments over a period equal
to twice the period of LWOP for the PSSA, the PSPF and the RCAA; |
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c) in equal instalments over a period equal to twice the period of LWOP
for the SDBA; |
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d) in a combination of a lump sum amount (payable within 30 days of the
employee's return to duty) and instalments; or |
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e) in payments during the period of LWOP. |
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Upon return to duty, if the employee chooses to pay in a lump sum, the
payment must be received within 30 days of return to duty; otherwise recovery
must commence from his salary. At any time following the commencement of
the recovery, the contributor can still make a payment for all or part
of the balance of deficiencies owing. |
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Payments of contributions for the PSSA, the PSPF, the RCAA and the SDBA
can be made at any time during the period of LWOP. |
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In cases where the contributor was on loan from the Government of Canada,
the LWOP contributions must be paid to the Superannuation Directorate by
one of the following options: |
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a) annually in advance, |
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b) quarterly in advance, or |
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c) in a lump sum payment paid in advance, calculated for the expected
period of absence. When the regulations require that contributions be paid
in advance, and they are not paid upon return to duty (or not fully paid
on return to duty) recovery of any deficiencies upon return to duty are
to be made over a period equal to the period of leave. |
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2.2 |
Elective Service |
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It is important to note that payments must be made by those employees
who have ongoing elections. Failure to send payments for elections will
result in default payments. Payments in default are subject to interest
charges unless the default payment is paid within 30 days from the date
on which the payment was due.
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3 |
PROCEDURES/INSTRUCTIONS |
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3.1 |
PSSA, PSPF, RCAA, Elective Service and SDBA |
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3.1.1 |
When making payments to cover deficiencies to the PSSA, the PSPF, the
RCAA, the SDBA and for elective service, cheques, postal or bank money
orders are payable to the Receiver General for Canada and should be forwarded
to the compensation advisor. Please note that payments of premiums
for insurance plans such as the Public Service Health Care Plan (PSHCP),
the Dental Care Plan (DCP), the Disability Insurance (DI) Plan or the Long-term
Disability (LTD) Insurance Plan must be done on separate cheques and are
not to be forwarded to the Superannuation Directorate. |
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Upon receipt of a payment, compensation advisors must
complete the "Superannuation Remittance for Employees on Leave Without
Pay" (PWGSC-TPSGC
4005 [ PDF
757k
])) form. When completing this form, compensation advisors must indicate
the LWOP period and the period covered by the amount received. Compensation advisors
must also provide the breakdown of the payment in order to identify the amounts
that are to be applied to the PSSA, the PSPF, the RCAA, the SDBA and the purchase
of elective service. Copy 1 of the PWGSC-TPSGC 4005 form should be sent to the
Superannuation Directorate with the cheque, postal or bank money order using
the following address: |
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Superannuation Directorate
Public Works and Government Services Canada
P.O. Box 5010
Shediac NB E4P 9B4 |
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Before sending the cheque, postal or bank money order and the completed
form to the Superannuation Directorate, using the Regional Pay System (RPS),
the compensation advisors must create a "Cash Receipt Transaction" (CRT)
as per Section 4-4-20 of
the Personnel-Pay Input Manual (PPIM) using the appropriate PSSA, PSPF,
RCAA, elective service or SDBA deduction codes applicable to the payment.
This will serve as notification to Public Works and Government Services
Canada (PWGSC) regional pay offices that the payment was made. |
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3.2 |
Lump Sum Payments by Way of Direct
Transfer of Funds from a Registered Retirement Savings Plan (RRSP) |
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3.2.1 |
An employee may transfer funds from his RRSP
to pay for his PSSA, PSPF, and elective service deficiencies by having
his financial institution complete the Canada Customs and Revenue Agency
(CCRA) T2033 form, Direct Transfer Under Paragraph 146(16)(a) or 146.3(2)(e).
The T2033 form is available from the CCRA Web site at the following address: |
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http://www.cra-arc.gc.ca/E/pbg/tf/t2033/t2033-04e.pdf (
PDF ) |
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3.2.2 |
The employee must inform his compensation advisor
if he chooses this option. Compensation advisors must remind the employee
to ensure that the financial institution completes Part C of Area 1 of
the T2033 form by checking off the last box. The CCRA registration number
to use is 0288795, and the name of the plan is Public Service Superannuation.
The T2033 form must indicate that the transfer of funds is for payment
of LWOP deficiencies. Once the T2033 form has been completed, the financial
institution must send the funds and the form to the Accounting Section
of the Superannuation Directorate at the address provided earlier in this
directive. Some financial institutions may have their own forms. These
forms must be compliant with paragraph 146(16)(a) or 146.3(2)(e) of the Income
Tax Act (ITA). |
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Compensation advisors are to advise employees
who chose this option to provide them with a copy of the form used for
the direct transfer which will indicate the amount of funds being transferred
to the Superannuation Directorate. The copy will serve as confirmation
of the direct transfer of funds from an RRSP as well as the amount being
transferred. Compensation advisors are to use this information to complete
and forward the PWGSC-TPSGC
4005 ( PDF
127k
) form to the Superannuation Directorate. A CRT transaction is also
required. |
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3.2.3 |
It is important as well that compensation
advisors inform employees that for payments of SDBA and RCAA deficiencies,
only cheques, postal or bank money orders will be accepted. Payments
of deficiencies for the RCAA and SDBA do not qualify under the ITA for
transfer from an RRSP. This means that employees cannot transfer funds
from their RRSP in order to pay for contributions for the RCAA or premiums
for the SDBA.
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4 |
Regional Pay Office (RPO) |
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4.1 |
Using the RPS, the RPO will update the Free
Form Text (FFT) screen with the data from the CRT transaction created by
the compensation advisor and will also use this data when they calculate
the contributor's LWOP deficiencies and/or election arrears at the end
of the period of LWOP. If there are any remaining deficiencies, the RPO
will proceed with the necessary recovery. On the other hand, if no CRT
transactions have been created, the RPO will calculate and recover the
deficiencies for the full period of LWOP.
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5 |
Superannuation Directorate |
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5.1 |
Upon receipt of payments to the PSSA, the PSPF,
the RCAA, the SDBA and ongoing election remittances for periods of LWOP,
the Superannuation Directorate will update the contributions
on the Contributor System. If payments are received directly from employees
without the PWGSC-TPSGC
4005 ( PDF
127k
) form, the Superannuation Directorate will notify client departments
and request that the form be completed. The Superannuation Directorate will
also issue receipts to those employees who have made direct payments.
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6 |
INQUIRIES |
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6.1 |
Any inquiries on the information contained
in this document should be addressed to your PWGSC Compensation Services
Office. |
R. Jolicoeur
Director General
Compensation Sector
Accounting, Banking and Compensation
[Print Version]