1997-001-e.html

PURPOSE

BACKGROUND

This has the effect of requiring that, where the contributor has elected to pay by monthly instalments, the first past service election payment is due and payable at the end of the month in which the election is received by the employing Department or Agency.

The past service arrears deductions were effective from the date of receipt by either the PWGSC Pay Office or Superannuation Directorate, as applicable.

This new process should also serve to reduce the problem of deductions being in default.

POLICY

It is important to note that the employing Department or Agency is to accept all elections, even those that have not been received within the prescribed time (refer to Superannuation Administration Manual (SAM) Section 3.5.2). The Superannuation Directorate will determine the validity of these elections and finalize them accordingly.

The office receiving the election not to count LWOP as pensionable service must forward the appropriate copy of the election to Superannuation Directorate within 60 days of receipt.

Clients Serviced by the Regional Pay System

i) receive the past service election on behalf of the Minister of PWGSC;

ii) complete Part C of the PWGSC-TPSGC 2006 immediately upon receipt (refer to Section A of this Bulletin);

iii) commence the past service arrears deduction (refer to Section C of this Bulletin). It is important to commence the past service arrears deduction immediately upon receipt of the PWGSC-TPSGC 2006 in order to prevent defaults.

The form must continue to be sent to the Pay Office for the recalculation of the LWOP deficiencies and related adjustments to the employee's account.

Clients not Serviced by the Regional Pay System

PROCEDURES/INSTRUCTIONS

INQUIRIES

Part A - Completed by Personnel

Part B - Completed by the Employee

Part C - Completed by Personnel

- date of receipt by Personnel Office, Registration Number if form sent by registered mail, and initials of Compensation Specialist;

Note: This field should be completed immediately upon receipt of the election. It is important to note that even if the information required in some fields is not readily available, the "date of receipt" field is to be completed on the actual day that the election was received by the Personnel Office.

- employee's current classification and level;

- the "Date of most recent occasion of becoming a contributor";

- the "Date of this election" is the date that the election was signed by the employee;

- the "FTE Salary Rate" and the "FTE Allowance Rate" are the authorized full-time equivalent salary rates both on the most recent occasion of becoming a contributor and at the date the election was signed;

Note: Do not report non-pensionable allowances.

When certifying salary at either date, salary and allowances authorized after that date must not be included.

Elections made by full-time and part-time employees will be based on the full-time equivalent salary. Elections made by grandfathered full-time employees will be based on the salary received, not the full-time equivalent salary of the position.

- Column "U" is used to indicate whether the salary or allowance rate is Hourly, Daily, Weekly, Monthly, or Annually;

- "Standard work week" and "Assigned work week";
(Until the form is amended, please indicate the Assigned work week within the same box as the Standard work week.)

- "Deductions started effective from" is the month for which the first deduction was taken, including any arrears.

Example

Note: If the contributor elected to pay in a lump sum, indicate "N/A" in this portion of Part C. The lump sum payment must be received by Superannuation Directorate within 30 days of the date of the election. (Refer to SAM 3.5.4.)

- "Certified by", "Date", "Telephone No.", and "Facsimile No.".

- Distribute the copies of the PWGSC-TPSGC 2006 as follows:

White Copy - Superannuation Directorate
Canary Copy - Pay Office
Pink Copy - Personnel File

- The original White Copy of the PWGSC-TPSGC 2006 is to be forwarded to Superannuation Directorate within 60 days of receipt by the Personnel Office.

- For Departments and Agencies serviced by the RPS, the Pay Office will retain the Canary copy of the PWGSC-TPSGC 2006 on file for record purposes and for assistance when certifying arrears payments on a PWGSC-TPSGC 2386 (Certification Notice - Pension Support System), if necessary.

In cases where the PWGSC-TPSGC 2006 is not received by the employing Department or Agency within the prescribed time (refer to SAM 3.4.1), commence the past service arrears deduction and forward the PWGSC-TPSGC 2006 to Superannuation Directorate. Attach a letter from the contributor which clearly outlines the circumstances surrounding the making of the election and explains why the election was not forwarded within the prescribed time.

In cases where the employee forwards the PWGSC-TPSGC 2006 directly to Superannuation Directorate, the Directorate will forward a memo to the appropriate Personnel Office advising the Compensation Specialist to commence the monthly arrears deduction at a specified monthly rate.

Departments and Agencies serviced by the RPS will forward the PWGSC-TPSGC 2480 to the Pay Office for the recalculation of the LWOP deficiencies and related adjustments to the employee's account.

Corporations and Agencies not serviced by the RPS will verify the account for the recalculation of the LWOP deficiencies and any related adjustments.

The Canary Copy of the PWGSC-TPSGC 2480 must be forwarded to the Superannuation Directorate within 60 days of receipt.

COMMENCEMENT OF PAST SERVICE ARREARS DEDUCTION AND RECOVERY OF UP TO ONE MONTH'S DEFICIENCY

Note: Codes 577, 578, 880, and 881 are monthly deductions which are recovered from the 2nd cycle pay cheque of each month.

To commence the deduction at the specified monthly rate, enter a 16C 577 (or 880) on a PWGSC-TPSGC 2549 or via the DEC Screen, using a Rate Base "6" and Reference Number "1" for a first election, Reference Number "2" for a second election, etc. The "Effective To" date should always be blank. (The "Effective To" date is known only once the PWGSC-TPSGC 2097 is received by the Pay Office.)

Note: In cases where the employee requests that the election deduction be commenced at the minimum monthly rate, the Compensation Specialist is to use the rate specified by the estimate of cost calculation. It may be necessary for the Compensation Specialist to prepare the estimate for this purpose.

To collect the deficiency, enter a 17C 578 (or 881) on a PWGSC-TPSGC 2549 or via the DAR Screen, using a Rate Base "0", and the same Reference Number as used to commence the 577 (or 880) deduction. The "Effective From" date is the first of the month for which the deduction is being recovered, the "Effective To" date is the last of that month.

Example 1

PWGSC-TPSGC 2006 was received at Personnel Office 8/10/96. When actioning the form, the Compensation Specialist is working for Pay Period 24/96 (2nd cycle of November 1996).

Enter a 16C 577 effective 1/10/96 (The first of the month in respect of which a deduction will be taken.)

Enter a 17C 578 effective 01/10/96 to 31/10/96 (One month's deficiency.)

Example 2

PWGSC-TPSGC 2006 was received at Personnel Office 14/01/97. When actioning the form, the Compensation Specialist is working for Pay Period 5/97 (1st cycle of March 1997).

Enter a 16C 577 effective 01/02/97 (The first of the month in respect of which a deduction will be taken.)

Enter a 17C 578 effective 01/02/97 to 28/02/97 (One month's deficiency.)

Do not recover a deduction for the month of January 1997.

Note: When Superannuation Directorate processes the election, the "Date of Receipt" at the Personnel Office, and the "Deductions started effective from" date will be verified. Any deficiency will be taken into consideration in the computation of the election repayment amount and period.