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COMPENSATION DIRECTIVE: 2006-024

September 28, 2006

SUBJECT: New Entitlement Codes - Instructor Allowance and Institutional Emergency Response Team Allowance

  1 PURPOSE
  1.1 The purpose of this directive is to provide information on the new Instructor Allowance and the new Institutional Emergency Response Team Allowance described in the Correctional Services (CX) group collective agreement, Bargaining Unit Designator (BUD) codes 60100 and 65100, signed on June 26, 2006.


  2 BACKGROUND
  2.1 Article 43.05 in the CX collective agreement states that, effective June 26, 2006, an employee who acts as an instructor shall receive an allowance equal to two dollars and fifty cents ($2.50) per hour, for each hour or part of an hour.
  2.2 Article 43.06 in the CX collective agreement states that, effective June 26, 2006, an employee who is a member of the Emergency Response Team shall receive an allowance of two dollars and fifty cents ($2.50) per hour, for each hour or part of an hour as soon as he is called up as a member of the emergency team. This allowance shall likewise apply during all training periods provided to emergency team member employees.


  3 POLICY
  3.1 The Instructor Allowance is an hourly amount payable to employees of the CX group who perform duties of an instructor and who are subject to the CX collective agreement as well as excluded CX-03 and CX-04 employees.
  3.2 The Institutional Emergency Response Team Allowance is an hourly amount payable to employees of the CX group who are subject to the CX collective agreement as well as excluded CX-03 and CX-04 employees and is payable as soon as the employee is called up as a member of the emergency response team.
  3.3 These allowances are considered to form part of salary for pension purposes for hours worked during the normal work day, however, these allowances are not considered to form part of salary for pay purposes (e.g. calculation of a promotion). Consequently, the allowance must be reported separately for regular hours worked, which are subject to pension, and for overtime hours worked, which are not subject to pension. Four new entitlement codes (1C3, 1C4, 1C5 and 1C6), have been created for reporting purposes. These allowances are not subject to the 10 working days eligibility rule.
    To ensure that the correct code is used, the compensation advisor must ensure that the duly authorized supporting documents clearly indicate the hours that fall within the employee's normal scheduled hours of work and the hours that fall outside of his normal scheduled hours of work.
  3.4 Entitlements related to situations such as promotions or acting pay will not be recalculated. These allowances are not to be used in calculating the 4% vacation pay or the premium pay in lieu of statutory holidays for part-time employees.


  4 PROCEDURES/INSTRUCTIONS
  4.1 Code 1C3 - Instructor Allowance - Pensionable
  4.1.1 Effective September 19, 2006, entitlement code 1C3 "Instructor Allowance - Pensionable" will be available in the Regional Pay System (RPS). This entitlement code is to be used to report the allowance payable relative to the employee's normal scheduled hours of work only.
  4.1.2 The compensation advisor is responsible for reporting this allowance for all eligible employees in the CX group using the ENC screen (PAC 18) with entitlement code 1C3, rate base 1, rate/amount $2.50 and the number of hours or part of an hour to be paid.
  4.1.3 Amounts related to entitlement code 1C3 are subject to the following deductions:
  • Federal/Provincial Income Tax
  • Employment Insurance (EI)
  • Quebec Parental Insurance Plan (QPIP)
  • Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)
  • Disability Insurance Plan (DI) and Long-term Disability Insurance Plan (LTD)
  • Public Service Pension Plan (PSPP)
  • Supplementary Death Benefit Plan (SDBP)
  4.2 Code 1C5 - Instructor Allowance - Non-pensionable
  4.2.1 Effective September 19, 2006, entitlement code 1C5 "Instructor Allowance - Non-pensionable" will be available in the RPS. This entitlement code is to be used to report the allowance payable relative to overtime hours worked.
  4.2.2 The compensation advisor is responsible for reporting this allowance for all eligible employees in the CX group using the ENC screen (PAC 18) with entitlement code 1C5, rate base 1, rate/amount $2.50 and the number of hours or part of an hour to be paid.
  4.2.3 Amounts related to entitlement code 1C5 are subject to the following deductions:
  • Federal/Provincial Income Tax
  • Employment Insurance (EI)
  • Quebec Parental Insurance Plan (QPIP)
  • Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)
  4.3 Code 1C4 - Institutional Emergency Response Team Allowance - Pensionable
  4.3.1 Effective September 19, 2006, entitlement code 1C4 "Institutional Emergency Response Team Allowance - Pensionable" will be available in RPS. This entitlement code is to be used to report the allowance payable relative to the employee's normal scheduled hours of work only.
  4.3.2 The compensation advisor is responsible for reporting this allowance for all eligible employees in the CX group using the ENC screen (PAC 18) with entitlement code 1C4, rate base 1, rate/amount $2.50 and the number of hours or part of an hour to be paid.
  4.3.3 Amounts related to entitlement code 1C4 are subject to the following deductions:
  • Federal/Provincial Income Tax
  • Employment Insurance (EI)
  • Quebec Parental Insurance Plan (QPIP)
  • Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)
  • Disability Insurance Plan (DI) and Long-term Disability Insurance Plan (LTD)
  • Public Service Pension Plan (PSPP)
  • Supplementary Death Benefit Plan (SDBP)
  4.4 Code 1C6 - Institutional Emergency Response Team Allowance - Non-pensionable
  4.4.1 Effective September 19, 2006, entitlement code 1C6 "Institutional Emergency Response Team Allowance - Non-pensionable" will be available in the RPS. This entitlement code is to be used to report the allowance payable relative to overtime hours worked.
  4.4.2 The compensation advisor is responsible for reporting this allowance for all eligible employees in the CX group using the ENC screen (PAC 18) with entitlement code 1C6, rate base 1, rate/amount $2.50 and the number of hours or part of an hour to be paid.
  4.4.3 Amounts related to entitlement code 1C6 are subject to the following deductions:
  • Federal/Provincial Income Tax
  • Employment Insurance (EI)
  • Quebec Parental Insurance Plan (QPIP)
  • Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)
  4.5 The Personnel-Pay Input Manual (PPIM) will be updated to incorporate the relative information contained in this directive.


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

Original Signed by
B. Fortin

Brigitte Fortin
Acting Director General
Compensation Sector
Accounting, Banking and Compensation



Reference(s): ENT 1C3, 1C4, 1C5, 1C6