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COMPENSATION DIRECTIVE: 2004-012

July 13, 2004 (Revised April 19, 2005)

SUBJECT: Automated Retroactivity and Adjustments to Extra Duty Pay for Collective Agreements

  1 PURPOSE
  1.1 The purpose of this directive is to reiterate the Regional Pay System's (RPS) automation of retroactive payments and adjustments to Extra Duty Pay (EDP) resulting from the signing of collective agreements.
| 1.2 In this text use of the masculine is generic and applies to both men and women.


  2 CANCELLATION
  2.1 This directive cancels Compensation Directive 1999-041 dated November 30, 1999, Compensation Directive 2000-034 dated November 22, 2000, and Compensation Directive 2003-003 dated March 24, 2003.


  3 BACKGROUND
  3.1 This directive amalgamates previous compensation directives that were published on automated retroactive payments and adjustments to EDP resulting from the signing of collective agreements. This directive also includes new information regarding RPS enhancements to the percentage based revision program.


  4 POLICY
  4.1 The retroactive period for the purpose of a collective agreement refers to the period commencing on the effective date of the revision in rates of pay and ending on the day prior to the signing date of the collective agreement.
| The Public Service Labour Relations Act (PSLRA) states that retroactive payments due as a result of a settlement must be made within 90 days following the signing date of the collective agreement unless otherwise specified in the relevant collective agreement.
  The period from the signing date to the implementation date of the new rates of pay on the regular pay will be considered as retroactive pay adjustments.
  4.2 Where an employee becomes entitled to Disability Insurance (DI) or Long-term Disability Insurance (LTD) benefits on or after March 1, 1993, retroactive salary increases will be applied provided the effective date of the increase is prior to the date benefits commence.
  4.3 In the case of a retroactive change of salary, the Supplementary Death Benefits (SDB), DI and LTD premiums will change the first of the month following the month in which the collective agreement was signed.
  5 PROCEDURES/INSTRUCTIONS
  5.1 The following entitlement codes are used to identify the retroactive period for basic pay and EDP adjustments as the result of a new collective agreement.
  001 Basic pay: from the signing date of the collective agreement to the end of the pay period prior to the permanent line update.
  002 Acting pay / Acting appointment: from the signing date of the collective agreement to the end of the pay period prior to the permanent line update or as applicable.
  210 Adjustment of regular pay - Retroactive revision - Current fiscal year: from the effective date in the current fiscal year or April 1, whichever is later, to the date prior to the signing of the collective agreement.
  211 Adjustment of regular pay - Retroactive revision - Prior fiscal year: from the effective date to the date prior to the signing date of the collective agreement in the previous fiscal year.
    212 Adjustment of regular pay - Retroactive revision - Prior fiscal year 2: from the effective date to the date prior to the signing date of the collective agreement in the second previous fiscal year.
  213 Adjustment of regular pay - Retroactive revision - Prior fiscal year 3: from the effective date to the date prior to the signing date of the collective agreement in the third previous fiscal year.
  214 Adjustment of regular pay - Retroactive revision - Non superannuable: from the effective date to the date prior to the signing of the collective agreement.
  220 Retroactive overtime - Current fiscal year
    221 Retroactive overtime - Prior fiscal year 1
  222 Retroactive overtime - Prior fiscal year 2
  223 Retroactive overtime - Prior fiscal year 3
  5.2 Automated Process - EDP
  5.2.1 To produce EDP retroactive payments, Public Works and Government Services Canada (PWGSC) will utilize the data retrieved from the Extra Duty Pay Summary (XDP screen) portion of the Salary Service History (SSH) file. The overtime codes that are currently being updated to the XDP screen portion of the SSH and that will be affected by this automated process are:
  009 Call back pay
  040 Overtime accumulated--Compensatory leave paid in cash
  043 Premium pay for work on a holiday
  050 Reporting pay
  064 Stand-by - First rate
  065 Stand-by - Second rate
  072 Travel on day of rest--Designated holiday
  086 Schedule or shift change premium
  089 Travel on a normal working day
  092 Premium for lieu day
  257 Overtime--Payment of second consecutive holiday (Bargaining Unit Designator [BUD] codes 228, 408)
  258 Overtime--First half hour of overtime (BUD 228, 408)
  260 Overtime--On a regular working day
  261 Overtime--On first day of rest
  262 Overtime--On second or subsequent day of rest
  263 Overtime--On a statutory holiday
  268 Overtime--While on training
  5.2.2 The retroactivity adjustment payments to EDP entitlements will be combined and records will be split by fiscal year and paid using the following codes:
  220 Current fiscal year
  221 Prior fiscal year 1
  222 Prior fiscal year 2
  223 Prior fiscal year 3
  The process will utilize the rate of pay identified in the pay record that corresponds to the XDP record in the SSH as the "old" rate of pay. This rate will be matched on the Pay Rates Control File (PRCF) to identify the "new" rate of pay. The automated retroactive payment will be calculated using the difference between these two rates of pay multiplied by the number of hours at the rate identified on the corresponding XDP record in the SSH.
  5.3 Automated Process - Basic Pay
  5.3.1 PWGSC utilizes data retrieved from the RPS' master file and the SSH file to produce automatic retroactive payments for basic pay.
  5.3.2 The Consolidated System Control Division (CSCD) of PWGSC will update the RPS on the same day for all master files. The CSCD will only process a bulk update for a BUD group that has a population of 25 or more active and temporarily struck off strength (T-SOS) accounts within any given pay office (PO).
  5.3.3 Clients should refer to the Pay Rate Implementation Bulletin (PRIB) on the Compensation Sector Web site at the following address for additional information on the pay processing procedures for the BUD group.

http://www.pwgsc.gc.ca/compensation/prib/prib-toc-e.html
  5.3.4 The CSCD of PWGSC will update the permanent basic pay lines and automate retroactivity for all employees based on the following four options:
 
  • for salaries within steps only, excluding employees with a pay rate code of 2 (appointed above maximum rate), 7 (appointed below minimum rate) or 8 (salary protected);
 
  • for salaries within steps and/or salaries within ranges, excluding employees with a pay rate code of 2 (appointed above maximum rate), 5 (subject to performance pay and excluded from collective bargaining), 7 (appointed below minimum rate), 8 (salary protected) or 9 (salary maintenance);
 
  • for salaries within steps and/or salaries within ranges, regardless of pay rate code; or
 
  • for employees paid within ranges with a pay rate code of 5 only (subject to performance pay and excluded from collective bargaining).
  Exceptions to automation are listed in Section 5.4 of this directive.
  5.3.5 To calculate the revised salary within the minimum/maximum range, the percentage increase program can accommodate the following different rounding practices:
 
  • to the nearest cent ($0.01);
 
  • to the nearest ten cents ($0.10);
 
  • to the nearest dollar ($1.00);
 
  • to the nearest ten dollars ($10.00);
 
  • to the nearest multiple of one hundred dollars ($100.00);
 
  • to the nearest multiple of two hundred and fifty dollars ($250.00) or
 
  • to the next multiple of five dollars ($5.00)
  Default rounding practices are in place for annual, hourly, weekly, and monthly salaries. Annual salaries will be rounded to the nearest dollar ($1.00). Hourly, weekly, or monthly salaries will be rounded to the nearest cent ($0.01).
  A different rounding practice can be applied to a specific BUD code, classification, and level. This information must be communicated prior to the automated salary revision. For example, in BUD code 94101, AS-ADL-00 annual salaries could be rounded to the nearest dollar ($1.00), and the AS-ADM-08 annual salaries could be rounded to the nearest multiple of one hundred dollars ($100.00).
  The RPS will accept a percentage formula with a maximum number of four decimal places. For example, the system will accept a percentage factor of 2.5555% , but will not accept 2.55555% .
  5.3.6 All retroactive payments for current and former employees will be issued from the employee's most current location.
| Employees moving between Schedule I - Part 1 and Schedule I - Part 2 of the PSLRA will be treated as struck off strength (SOS) and taken on strength (TOS) employees.
  5.3.7 Situations of acting pay/acting appointment as well as other salary changes will be paid by the automated retroactive process for the affected BUDs.
| 5.3.8 If an employee is currently a contributor to a pension plan, pension contributions will be withheld based on the employee's current contributory status (Field 39). The RPS will search the SSH data base for any change in pension eligibility during the retroactive period and will not collect pension contributions for the period when there is a non-contributor status in Field 39.
| If an employee is currently a non-contributor (value in Field 39 is greater than 50), no pension contributions are to be withheld from the retroactive payment, even if the employee was a contributor sometime in the retroactive period.
| If there is any change of contributor status during the period of retroactivity, or the employee has attained 35 years of pensionable service, a notification will be produced and sent to the PO for subsequent adjustment of pension contributions.
  Leave without pay (LWOP) deficiencies will be calculated at the rate determined by the reason code reported for each LWOP period. Pension deficiencies will be collected to the fullest extent possible from the supplementary payment issued. If these deficiencies exceed the employees entitlement for the retroactive payment, the PO will then become responsible for collecting them.
  Employees who are on LWOP during the entire period of retroactivity will have their deficiencies collected when they are retaken on strength (RE-TOS). No additional input will be required.
  5.3.9 Automatic retroactivity for 7A accounts will be paid based on time summaries in the SSH. If the "Effective from" date of the retroactive period is not the start date of a pay period and the hours that were previously reported on the time summary were not divided to reflect the termination of the collective agreement, the system will average the reported hours over a 10-day period and multiply by the number of days of the new collective agreement in that pay period.
  Example:

Collective agreement expiry date: January 24, 2004
Time summary for that pay period: January 15 to January 28, 2004
Hours reported for that period: 45
45 hours / 10 = 4.5 hours per day
January 24 to January 28, 2004: 3 days x 4.5 hours = 13.5 hours
The automatic retroactivity payment will amount to 13.5 hours under the new collective agreement.
  5.3.10 For part-time employees, the system assumes that the hours are averaged out over a 5-day period (e.g. for an employee with an assigned work week of 30 hours, the system assumes that the employee works 6 hours per day). Using the previous example in Section 5.3.9, the automatic retroactivity payment would be based on 18 hours (6 hours per day x 3 days) under the new collective agreement.
  5.3.11 If the employees have non-standard work weeks, the system will assume that the employees work a regular work week for retroactive purposes.
  5.3.12 Warning Messages
  Payments will be generated by CSCD for all eligible employees that meet the automated process requirements. However, under the following conditions, a warning message will be produced advising that the payment must be verified and a possible adjustment may be required:
 
  • If the non-standard work week indicator equals "3" for any portion of the retroactive period.
 
  • If the "Effective from" and/or the "Effective to" date is not the start date of a pay period for part-time employees.
 
  • If there is a change in rate or a change in the assigned work week that is not effective the start of a pay period for part-time employees.
 
  • If the employee has a period of leave with income averaging (LIA), pre-retirement transition leave (PRL) or an ongoing LWOP and the "Effective from" date of the retroactive periods is not the start of a pay period.
 
  • If in the case of a 7A account, the start date of the retroactive period is not the start date of a pay period and the hours reported were not split for the end of the previous collective agreement.
 
  • If in the case of a part-time employee with a period of LWOP that either starts prior to the effective date of the retroactivity and ends during the retroactive period or starts during the retroactive period and ends after the end date.
  5.4 Exceptions to Automation
  5.4.1 Exceptions - Basic Pay and Allowances
  The RPS will not automate the retroactive adjustments for employees in the conditions identified below.
  Currently T-SOS with Reason Code Y
  The permanent line of basic pay will be changed by the revision process but departments must pay the retroactivity.
  SOS due to death in service
  The permanent line for basic pay must be modified using the revision process as described in the Personnel-Pay Input Manual (PPIM) Section 4-4-09. The department must also report the change in salary for termination payments and for the month of death entitlement.
  Restructure of pay rates
| Departments are responsible for inputting the pay transaction to modify the employee's salary when a collective agreement includes a restructure of pay rates such as an additional step in the pay rate scale. Exceptions to this rule will be issued by means of a broadcast message and/or PRIB from pay offices to the departments, as applicable. The permanent line for basic pay must be modified using the revision process as described in PPIM Section 4-4-09.
  Dual remuneration if paid by entitlement codes 027 and/or 232
  If the dual remuneration is paid by entitlement codes 027 and/or 232, the department will be responsible for the retroactive adjustments to these entitlements.
  Educational leave allowance (Entitlement Code 077)
  The permanent line for salary must be modified using the revision process as described in PPIM Section 4-4-18-3-1.
  Allowances
  Departments will be responsible for the retroactive adjustments of any allowances that must be revised due to changes in salary (e.g. vacation pay, severance pay, supervisory differential, additional hours worked, etc.).
    LIA
    Accounts that are currently on LIA and the recovery period has not ended will not be automated. It will be up to the department to make any necessary adjustments.
|   PRL
|   Accounts that are currently on PRL will not be automated. It will be up to the department to make any necessary adjustments.
  5.4.2 Exceptions - EDP
  EDP retroactive adjustments will not be automated if any of the following conditions are met:
  Change during retroactive period
  Either the BUD code, classification, pay zone, rate base or rate amount has changed during the retroactive period covered by the EDP line, or the "Effective from" date of the pay line is equal to or less than the "Effective from" date of the EDP line and the "Effective to" date of the pay line is less than the "Effective to" date of the EDP line.
  No matching date
  The "Effective from" or "Effective to" dates of the EDP line overlap the corresponding period or the "Effective from" date of the pay line is greater than the "Effective from" date of the EDP line and equal to or less than the "Effective to" date of the EDP line.
  Note: If the EDP line overlaps the collective agreement, the EDP adjustments will not be automated and compensation advisors should create two EDP transactions for the adjustments. For example, if the collective agreement is effective on March 15, 2004, for EDP payment during the period of March 1 to 31, 2004, compensation advisors should create one EDP transaction covering the period of March 1 to 14, 2004, and another EDP transaction covering the period of March 15 to 31, 2004 in order to make proper EDP adjustments.
  Duplication of entitlement period
  If multiple EDP lines exist with the same entitlement code and the same "Effective from" and "Effective to" dates, then only the first line will be automated and the remaining lines will be posted to the "No Payment" Report. Please refer to Section 5.6 of this directive.
  Pay rate code
  The old rate of pay on the EDP line cannot be matched with the rates existing on the Pay Rate Control File (PRCF).
| Employee on LIA
| Accounts that are currently on LIA and the recovery period has not ended will not be automated. It will be up to the department to make any necessary adjustments.
| Employee on PRL
| Accounts that are currently on PRL will not be automated. It will be up to the department to make any necessary adjustments.
  Pending T-SOS/SOS
  The account is pending because the employee is T-SOS or is SOS.
  5.5 Input Requirements - Manual Adjustments
  5.5.1 When processing an adjustment to pay part-time hours and/or allowances for an employee who changed part-time hours during the period of retroactivity, Field 71 must be completed as follows, left justified: "WW/Standard Work Week/Assigned Work Week/FLD34".
  The system will then prorate the days identified for this transaction.
  Example:
    Scheduled Work Week = 37.50
Assigned Work Week = 30.00
  (To override the current information on the Master Employee Record (MER) for a specific period, Field 71 must be filled.)
  Field 71 = WW375030001
The resulting payment will be prorated based on the Assigned Work Week/Scheduled Work Week.
  Note: The "1" at the end of "WW375030001" represents the value of Field 34. Field 71 must also be used when reporting a closed period for an employee when Field 32 is not equal to Field 33. This is to indicate the scheduled hours of work, the assigned hours of work, and the non-standard work week indicator preceded by WW (left justified):
  Position 1-2: WW (constant)
  Position 3-6: scheduled hours of work (e.g. 37.50)
  Position 7-10: assigned hours of work (e.g. 30.00)
  Position 11: non-standard work week indicator 1, 2 or 3 (REFER to PPIM Section 3-5-3, Field 34).
  5.5.2 If the revised pay rates are implemented later than the second pay of the month following the collective agreement signing date, adjustments to SDB, DI and LTD premiums are to be input using current procedures via on-line input (DEC screen) or batch (16C on a DSS-MAS 2517T or a PWGSC-TPSGC 2549 form). It should be noted that the adjustment will be withheld from regular pay.
  5.5.3 If a retroactive period is to be reported in hours, the total amount of hours reported per transaction cannot exceed 999.99.
  5.6 Reports
  5.6.1 Departments will receive two reports for employees in the affected BUD: a "Retroactive Payment" Report and a Collective Bargaining "No Payment" Report. These reports will be issued in the same time frame as the payments.
  5.6.2 There could be situations where no payments were received for accounts that appear on the "Retroactive Payment" Report. In these cases an additional report (an Error Analysis Report) will be issued.
  5.6.3 The "Retroactive Payment" Report will list all accounts by PO, department, paylist, alphabetical order and Personal Record Identifier (PRI) when an automated payment has been produced. The Collective Bargaining Retroactive "No Payment" Report will list all accounts by PO, department, paylist, alphabetical order and PRI when no payment has been produced. This report will also list one of the following reasons:
 
  • No master account found on SSH
 
  • LWOP for the entire retroactive period
|
  • Accounts currently on LIA; recovery period still ongoing
|
  • Accounts currently on PRL
 
  • SOS due to death in service
 
  • No matching rate (depending on which option is selected to automate retroactivity)
    • Salary in range
    • Employees receiving performance pay
    • Salary protected
 
  • T-SOS Reason Code Y
  5.6.4 Revised EDP lines will appear on the "Extra Duty Pay Revision Payment Report". EDP lines that are not revised will appear on the "Extra Duty Pay Revision No Payment Report". The "EDP No Payment Report" will list one of the following reasons:
 
  • No matching rate
 
  • No matching date
 
  • Change during retroactive period
 
  • Pay rate code
 
  • Employee on LIA
|
  • Employee on PRL
 
  • SOS due to death in service
 
  • Pending T-SOS/SOS
  6 INQUIRIES
    Any inquiries on the information contained in this document should be addressed to your PWGSC Compensation Services Office.

Original Signed by
P. Laviolette

R. Jolicoeur
Director General
Compensation Sector
Finance, Accounting, Banking and Compensation

Reference(s): CJA 3060-5


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Maintained by the Compensation Sector
Last Updated: 2005-08-08
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