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COMPENSATION DIRECTIVE: 2004-016

August 11, 2004

SUBJECT: New Deduction Codes for Union Dues Arrears

  1 PURPOSE
  1.1 The purpose of this directive is to provide client departments with information regarding new Regional Pay System (RPS) deduction codes for certain union dues arrears.
  1.2 In this text, use of the masculine is generic and applies to both men and women.


  2 BACKGROUND
  2.1 Treasury Board Secretariat (TBS) has requested the creation of more union dues arrears codes to ensure that all the bargaining agents have their own union dues arrears deductions codes in the RPS. Currently, eight out of the sixteen bargaining agents do not have an arrears code for union dues deductions. The new arrears codes will enable compensation advisors to collect union dues for previous periods where the employee was under a different bargaining unit.
    Union dues arrears codes will be created for the following eight bargaining agents (the current deduction code for the union dues are listed on the left):
    632 Canadian Association of Professional Employees (CAPE)
    643 Canadian Air Traffic Control Association
    638 Professional Association of Foreign Service Officers
    646 Canadian Merchant Service Guild
    645 Federal Government Dockyards Trades and Labour Council (East and West)
    642 Professional Institute of the Public Service of Canada
    652 Canadian Federal Pilots Association
    635 Council of Graphic Arts Unions of the Public Service of Canada


  3 POLICY
  3.1 The new union dues arrears codes will be created as follows:
    5A4 Canadian Association of Professional Employees Arrears
    5A5 Canadian Air Traffic Control Association Arrears
    5A6 Professional Association of Foreign Service Officers Arrears
    5A7 Canadian Merchant Service Guild Arrears
    5A8 Federal Government Dockyards Trades and Labour Council (East and West) Arrears
    5A9 Professional Institute of the Public Service of Canada Arrears
    5B1 Canadian Federal Pilots Association Arrears
    5B2 Council of Graphic Arts Unions of the Public Service of Canada Arrears
  3.2 The profile for each arrears deduction code listed in Section 3.1 is the same as that of the current deduction code for each bargaining agent. For example, the profile for code 5A4 (CAPE Arrears) is the same as that of code 632 (CAPE).
  3.3 Union dues arrears deductions are tax deductible at source and upon tax filing at year end. These deductions will be reported on the employee's T4 in Box 44, union dues, and on his Relevé 1 in Box F, union dues.


  4 PROCEDURES/INSTRUCTIONS
  4.1 These new deduction codes will become effective on August 13, 2004.
  4.2 Union dues arrears deductions are to be input using the online Deductions Arrears (DAR) screen with a rate base of "6" (monthly), and will be collected from the second pay of the month. Compensation advisors will input the precalculated monthly amount for each deduction. When more than one month is owing, the recovery period must be spread over the same number of months as the number of deduction premiums that are to be recovered using rate base "6".
  4.3 When a Deduction Commence transaction for union dues is input with an effective date in the past, the arrears codes will be automatically generated by the RPS.
  4.4 For additional information regarding union dues deductions, compensation advisors should refer to the Personnel Pay Input Manual (PPIM) sections 5-4, 4-4-16-1, 4-4-17-1, 14-5-1, and 14-5-5.


  5 INQUIRIES
  5.1 Any inquiries on the information contained in this directive should be addressed to your PWGSC Compensation Services Office.



Original Signed by
R. Jolicoeur


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


Reference(s): DED 5A4, 5A5, 5A6, 5A7,
5A8, 5A9, 5B1, and 5B2