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COMPENSATION DIRECTIVE: 2006-016
August 17, 2006
| SUBJECT: |
Lump Sum Payment for the
Correctional Services (CX) Group |
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1 |
PURPOSE
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1.1 |
The purpose of this directive is
to provide information regarding a lump sum payment in lieu of retroactivity
for overtime and other premiums and allowances that are payable to employees
in the Correctional Services (CX) group, as a result of a letter of agreement
signed on June 26, 2006.
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2 |
BACKGROUND
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2.1 |
The letter of agreement between
the Treasury Board of Canada and the Union of Canadian Correctional Officers
(UCCO) indicates that the retroactive calculation set up in Section 49.03
of the CX collective agreement will exclude overtime, allowances and bonuses,
and a lump sum in the amount of $2,800 in lieu of retroactivity for overtime
and other premiums and allowances will be paid to all employees in the CX
group (Bargaining Unit Designator [BUD] codes 60100 and 65100).
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3 |
POLICY
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3.1 |
Effective June 26, 2006, a lump
sum in the amount of $2,800 shall be paid to members of the CX group represented
by the UCCO, for the period from June 1, 2002, to the date the collective
agreement was signed on June 26, 2006. |
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3.2 |
Employees with a substantive position
in the CX group but who were appointed to the group or left the group after
June 1, 2002, shall be paid on a pro rata basis for this lump sum amount.
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3.3 |
A part-time employee will be eligible
for this lump sum payment prorated to their weekly hours of work versus
the normal hours of work for full-time employees. |
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3.4 |
The Public Service Labour Relations
Act (PSLRA) requires that collective agreements be implemented within 90
calendar days after the date of their signature. Consequently, all pay adjustments,
including the lump sum payment described above, must be received no later
than September 24, 2006.
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4 |
PROCEDURES/INSTRUCTIONS
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4.1 |
Compensation advisors will be responsible
for ensuring that payment of this lump sum amount is received by all eligible
employees no later than September 24, 2006, using the existing entitlement
code 088. |
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4.2
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The proration for those employees
appointed to or who have left the CX group after June 1, 2002, and for the
part-time employees is calculated as follows: |
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The full period (from June 1, 2002,
to June 26, 2006) for the lump sum payment is 1060 days (not including June
26, 2006). |
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Prorating is calculated as: $2,800
divided by 1060, then times the number of days the employee is on strength
during the full period (excluding the number of days of leave without pay
(LWOP) during the full period). |
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Example 1: |
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If an employee was appointed on
January 3, 2006, worked full time without any LWOP, he is entitled to this
lump sum retroactive payment: $2,800 / 1,060 X 124 working days = $327.55
(January 3, 2006, to June 25, 2006) |
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Example 2: |
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If the employee was appointed on
January 3, 2006, worked full time, and took 4 weeks of LWOP, he is entitled
to this lump sum retroactive payment: $2,800/1,060 X 104 working days =
$274.72 (January 03, 2006, to June 25, 2006, excluding the 20 days of LWOP). |
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4.3 |
This lump sum payment is subject
to the following: |
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- Federal/Provincial Income Tax
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- Canada Pension Plan/Quebec Pension Plan
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5
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INQUIRIES
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5.1
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Any inquiries on
the information contained in this document should be addressed to your Public
Works and Government Services Canada (PWGSC) Compensation Services Office.
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Original Signed by
B. Fortin |
Brigitte Fortin
Acting Director General
Compensation Sector
Accounting, Banking and Compensation
Reference(s): BUDs 60100 and 65100, ENT 088
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