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1 |
PURPOSE |
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1.2 |
The purpose of this Bulletin is to advise Personnel and Pay Offices regarding changes to the elective service notice DSS 2097. |
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1.2 |
The revised notice will make it easier for Personnel Offices to identify the different types of elective service for purposes of reporting past service contributions for income Tax purposes. |
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2 |
POLICY |
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2.1 |
The Tax deductibility of past service contributions is described in Services Pay Directive 1992-008(04). |
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2.2 |
Occasionally, Personnel Offices have experienced some difficulty in determining how contributions should be identified when completing the notice to Revenue Canada. Attached for your information is a copy of this notice (Appendix A). |
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2.3 |
The amended DSS 2097 wwill clearly indicate the contributions attributable to each type of elective service. The past service arrears have been identified as contributions required in respect of service "while a contributor, while not a contributor and post 1989 service". There is also an identification of RCA arrears, however, this area wil not be used until the Retirement Compensation Arrangements have been introduced as part of pension reform. |
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2.4 |
The change to the DSS 2097 does not change the Regional Pay procedures at this time. Pay Offices should continue to deduct the "TOTAL MONTHLY CONTRIBUTION" reported. There are no separate pay codes to identify the different types of arrears on Regional Pay System. |
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3 |
PROCEDURES |
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3.1 |
Attached is a copy of the amended DSS 2097. (Appendix B). The monthly deduction for elections processed on or after June 28, 1993 will be identified as " while a contributor, while not a contributor, and post 1989 arrears". The total deduction is the monthly amount to be deducted for the past service. |
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3.2 |
Using the amended DSS 2097, Personnel will be able to easily determine the percentage of contributions attributable to each type of service. EXAMPLE:
| while a contributor: |
$23.07 |
| while not a contributor: |
$15.62 |
| post December 31, 1989: |
$37.49 |
| TOTAL: |
$76.18 |
| Contributions deducted in 1993: |
$76.18 x 7 months = $533.26 |
| To be reported to Revenue Canada: |
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| while a contributor: |
30% ($23.07/76.18) |
| while not a contributor: |
21% ($15.62/76.18) |
| post December 31, 1989: |
49% ($37.49/76.18) |
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3.3 |
In addition, the "ELI" screen on the Contributor System has also been amended to reflect the appropriate breakdown of past service contributions into the fields. Offices with access to the on-line Contributor System will be able to obtain the appropriate past service breakdowns from the on-line screen. |
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3.4 |
Where the election was processed prior to June 28, 1993, the ELI screen should not be used to determine the breakdown for tax purposes, as the screen may not indicate the proper breakdown. Personnel should continue to follow the instructions contained in SPD 1992(008)(04) for these elections. Note: The ELI screen for elections processed prior to June 28 will indicate all arrears as "old/while". |
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3.5 |
Where an election is amended and a new DSS 2097 issued, the correct breakdown should be indicated on the DSS 2097. If the appropriate breakdown is not shown, Personnel should refer to the SPD to determine the tax breakdown. |
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4 |
INQUIRIES |
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4.1 |
Inquiries regarding the content of this Bulletin should be directed to Marg Bambrick (819) 956-2058, or Adèle Gervais (819) 956-2096 of the Compensation Advisory Group. |
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4.2 |
Inquiries relating to individual cases should be directed to Superannuation Branch at (506) 533-5700 for English calls and (506) 533-5767 for French calls. |
| Re: |
Name: ____________________________________ |
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S.I.N. _____________________________________ |
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Date of Election: ____________________________ |
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PAST SERVICE CONTRIBUTIONS PAID IN THE 19__ TAXATION YEAR (AS INDICATED ON THE T4, T4A SLIPS OR RELEVES 1 OR 2): $ _______________ |
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| A - |
For election made prior to March 28, 1988 |
| ( ) |
Of the total contributions in respect of past service, _______ % represents contributions for a period while this employee was a contributor under the Public Service Superannuation Act and ______ % represents contributions for a period while he/she was not a contributor under the PSSA. |
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| B - |
For Election made on or after March 28, 1988 |
| ( ) |
Of the total contributions in respect of past service, ______ % represents contributions for a period (prior to 01-01-90) while this employee was a contributor under a Pension Plan, and ______ % represents contributions for a period (prior to 01-01-90) while he/she was not a contributor to any Pension Plan; another ______ % represents contributions for service which occurred after 31-12-89. There is no requirement for the "while/while not split" in respect of the contributions for service after 31-12-89. |
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________________________ |
_____________________ |
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DATE |
SIGNATURE OF
PERSONNEL OFFICER |
