COMPENSATION DIRECTIVE: 2006-025

September 28, 2006

Information Notice to Employees

Annex A (Revised October 3, 2006) (Revised December 4, 2006)
Annex B

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

Reference(s): CJA CJA 1065-2-1

Annex B

Descriptions and procedures for paper forms Payroll Deduction Change Form

Completion of a Payroll Deduction Change form is required whenever employees who are already on the Canada Savings Bonds (CSB) Payroll Savings Program wish to increase their current total CSB deduction amount for the first pay in December.

This CSB form is a generic form created for all employers and is not specifically designed for the Public Service. Therefore, despite being designated as optional on the form, the campaign director will ensure that the employee is instructed to complete the Organization Information section. The Employee Number section must be completed using the employee's Personal Record Identifier (PRI).

Employees who are completing a Payroll Deduction Change form should contact the Bank of Canada at its toll free number (1 877 899-3599) if they wish to revise the individual amount allocated to each of their CSB plans. If not otherwise advised, the Bank of Canada will prorate the new total CSB deduction amount across all of the employee's CSB plans.

The Payroll Deduction Change form cannot be used as a substitute for the CSB Retirement Savings Plan (RSP) application form. Employees wishing to open a new registered retirement savings plan (RRSP) by purchasing a CSB, or by converting an existing CSB, must complete a CSB RSP application form.

The campaign director will forward the Payroll Deduction Change forms to the compensation advisor for processing. The compensation advisor will enter the employee's amended deduction amount in the RPS effective for the first pay in December 2006. The change form will be retained in the department and should not be forwarded to the Bank of Canada. The Bank of Canada will be notified of the change in deduction amount upon receipt of the next remittance.

Unless otherwise negotiated, the deadline for the receipt of change forms by the compensation advisor is October 31, 2006.

CSB Application Form

Completion of a CSB application form is required whenever employees are opening a new CSB plan, for themselves, for themselves and someone else, or for someone else such as their spouse or child.

If the employees wish to open a CSB RRSP, they should fill out the CSB RSP application form instead. This year, such a purchase can only be made in the purchaser's name.

The campaign director will ensure that all employees completing a form are instructed to include their departmental code and paylist number in the Organization Information section of the form and to indicate their PRI in the Employee Number section of the form. The CSB application form is designed so that the Employee Number section of the form is blacked out on the copy identified for the Bank of Canada.

The campaign director must also ensure that the correct Organization Identification Number appears in the appropriate boxes on all application forms forwarded to the Bank of Canada. The Organization Identification Number has been created to enable the Bank of Canada to identify each purchaser's department or organization. Whenever an employee is transferred, the Organization Identification Number will be automatically changed in the RPS, and the Bank of Canada will be notified with the next remittance. Please refer to Annex A for a list of these numbers.

The CSB application form is a 4-part form: the employee will retain the top "Employee's Copy", one of the "Employer's/Employee's Copy" and the terms and conditions from the CSB application form. The campaign director will forward the "Bank of Canada Copy" directly to the Bank of Canada and the other "Employer's/Employee's Copy" to the compensation advisor for processing.

The campaign director will ensure that all CSB application forms from the same employee are attached together before forwarding the appropriate copies to the Bank of Canada and the compensation advisor.

It should be noted that employees with an existing deduction who are completing additional application forms also have to complete a Payroll Deduction Change form indicating their total amended payroll deduction. The campaign director will ensure that this change form is attached to the copy of the CSB application form(s) forwarded to the compensation advisor. A copy of the Payroll Deduction Change form should not be attached to the Bank of Canada copy of the CSB application form(s).

A facsimile or photocopy of an application form will not be accepted as valid, nor will application forms from previous campaigns. A new application form must be completed if an employee's original application is lost.

The deadline for the receipt of CSB application forms by the Bank of Canada and the compensation advisor is October 31, 2006.

CSB RSP Application Forms

Completion of a CSB RSP application form is required whenever employees are opening a CSB RRSP, for themselves or for another person.

The completion of the CSB RSP application form is the same as the CSB application form.

For information concerning the RRSP option for Canada Savings Bonds, employees may visit the CSB Web site at www.csb.gc.ca or contact the Bank of Canada at its toll free number (1 877 899-3599).

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