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OUTLINE
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Procedures for accounting for premiums
paid for coverage under the Public Service Management Insurance Plan (PSMIP)
and the Long Term Disability Insurance (LTD). The PAO clerk is responsible
to remit the deductions to the applicable agency, calculate the government
share for applicable transactions, charge Treasury Board (TB) with government
share and calculate applicable Québec sales tax.
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PSMIP and LTD deductions are reported
to Department 079 under the following coding:
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| 079 CODING
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TITLE
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| 079-PO-000-750
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PSMIP
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| 079-PO-000-753
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LTD--PSMIP
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| 079-PO-000-754
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LTD--PSMIP DEFICIENCIES
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| 079-PO-000-766
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PSMIP--SM REBATE
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| 079-PO-000-810
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LTD--NO QUE SALES TAX
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| 079-PO-000-811
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PSMIP--NO QUE SALES TAX
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| 079-PO-000-851
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LTD MANAGEMENT
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| 079-PO-000-852
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LTD MANAGEMENT ARREARS
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PO = Pay office number
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UNDERWRITER AND GROUP POLICY NUMBER :
National Life Assurance Company of Canada is the underwriter for PSMIP and
LTD. The Group Policy number is G68-1400.
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EMPLOYER'S SHARE PSMIP FREE COVERAGE--The
employer pays the share of premiums, when the first digit of the reference
number is 5 or 7, as shown below:
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Executive Group (EX)--5 and 7.
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ADDITIONAL COVERAGE--Executive officers
may supplement their free insurance coverage by paying premiums using regular
deduction tables.
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NO EMPLOYER'S SHARE--Employees pay all
of the premiums when the first digit of the reference number is 4, as shown
below:
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Managerial and Confidential Group 4
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PSMIP DEDUCTION--REPORTS PROGRAM PAP42--Program
PAP42 produces monthly PSMIP deduction reports for deductions taken with
code 750 (IQ) as follows:
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PSMIP REGISTER: Sorted by department,
PRI and provides a breakdown of premiums by:
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-
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basic insurance;
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-
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supplementary insurance;
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-
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number and cost of AD and D units;
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-
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dependents insurance;
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-
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total premiums (excluding LTD);
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-
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employer's cost of free coverage;
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-
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Québec Sales Tax on taxable benefits
for Québec Residents.
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PROCEDURES
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PSMIP DEDUCTION ARREARS REPORT: Shows
premiums deducted only. The PAO clerk will proceed as follows:
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PAO Clerk
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- IDENTIFY deductions with contract numbers starting with "5";
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- CALCULATE ER's share from E-mails or advice (advise COD of
718 update);
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- NOTATE ER's share on PSMIP manual transaction sheets.
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| NOTE :
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Regional pay offices and COD
will E-Mail details of arrears processed for EXECUTIVES for government
share calculation.
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TWO SUMMARY REPORTS: To show the total
premium:
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paid by non-executives contributors;
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paid by employer for free coverage;
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also premiums paid by employee for supplementary
options;
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PSMIP EXECUTIVE REFUNDS 766--A listing
(IX) is produced at month end for all automated refunds of PSMIP for refunds.
The PAO clerk will proceed as follows:
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- IDENTIFY deductions with contract numbers starting with "5";
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- CALCULATE ER's share from E-mails or advice (advise COD of
718 update);
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- CALCULATE Québec Sales Tax on ER's share for any Québec
residents;
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- NOTATE ER's share on PSMIP 766 refunds transaction sheet (Appendix
"C").
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| NOTE :
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Regional pay offices and COD
will E-Mail details of arrears processed for EXECUTIVES for government
share calculation.
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LTD--At month end two listings are created
for LTD deductions PP for 753 and IF for 754. The listing details the total
deduction amount and the amount of government share calculated for the current
month.
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LTD MANAGEMENT--At month end two listings
are created for LTD Management deductions PY for 851 and PZ for 852. The
listing details the total ER's share calculated for the current month.
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RECONCILING PSMIP AND LTD--To prepare
for reconcile and remittance of PSMIP and LTD GATHER all month end
listings for each pay office and proceed as follows:
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PAP42 Summary Report;
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IQ listing for PSMIP 750
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IX listing for PSMIP 766;
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PP listing for LTD current;
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IF listing for LTD arrears;
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PY listing for LTD Management current;
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PZ listing for LTD Management arrears;
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all manual transaction sheets completed
during the current month.
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STEP 1: From the PSMIP Deduction summary report
COMPLETE Appendix "A" for each
pay office to IDENTIFY any rejects that may have occurred in the
current month for PSMIP.
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If PAP42 does not balance to IQ listing LOCATE
rejects in the PAP42 current deduction report. Rejects will be indicated
by an asterisk * in the far right hand column. E-MAIL applicable
pay office to correct rejects.
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STEP 2: PRINT the Common Departmental
Financial System (CDFS) reports for each pay office for allotment 325--deduction
code 750 and COMPLETE Appendix "B"
for each pay office.
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STEP 3: From LTD listings PP and IF COMPLETE
Appendix "D" for each listing for each
office.
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STEP 4: From LTD Management listings PZ/852
and PY/851 NOTATE applicable ER's share amounts on Appendix
"E".
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APPENDIX "A"
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PSMIP BALANCE SHEET ( IQ LISTING TO PAP42
SUMMARY)
ACCOUNTING MONTH ___________ PAY OFFICE _________________
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| PAP42 SUMMARY
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| PSMIP PREMIUM
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| FREE EXECUTIVE BENEFITS PREMIUM
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| PSMIP DEDUCTION ARREARS
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| TOTAL
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| IQ LISTING
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| DIFFERENCE
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* Any difference should equal rejects
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IF THE PAP42 SUMMARY REPORT AND THE IQ LISTING
DO NOT BALANCE:
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- IDENTIFY rejects on the PAP42 current deduction listing (these
accounts will have 0.00 premiums)
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- IDENTIFY the premium amounts from the IQ listings for those
rejected accounts.
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- TOTAL premiums for rejected accounts, this amount should equal
the difference between the IQ listing and PAP42.
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- SEND an E-Mail to the appropriate pay office identifying the
rejects for their correction.
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APPENDIX "B"
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PSMIP LEDGER BALANCE SHEET
ACCOUNTING MONTH_______________ PAY OFFICE____________
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| TOTAL IQ LISTING
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| *MANUAL REFUNDS
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| *MANUAL ARREARS
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| TOTAL REMIT EE'S
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* AMOUNTS FROM MANUAL TRANSACTION SHEETS EE's
SHARE
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| FREE EXECUTIVE BENEFIT
PREMIUM PAP42
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| *MANUAL TRANSACTIONS
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| ** PSMIP 766 REFUNDS ( - )
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| TOTAL REMIT ER'S
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| LESS CROWNS
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| IS TO TREASURY BOARD
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| CDFS LEDGER (750)
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| REMIT EE'S
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| REMIT ER'S
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| IS TO TREASURY BOARD
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| TOTAL
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APPENDIX "C"
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PSMIP 766 REFUNDS ADJUSTMENT FORM
ACCOUNTING MONTH ____________ PAY OFFICE _____________
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| NAME
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PRI
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DEPT
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P/L
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CHARGE TB
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QST
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*U/D ELE 718
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| TOTAL
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COD UPDATE ELEMENT 718 FOR * AMOUNTS
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APPENDIX "D"
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LTD REMITTANCE SHEET
325- ______ (753/PP OR 754/IF)
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| EE SHARE (PP or IF listing)
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| MANUAL TRANSACTIONS
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| TOTAL EE
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| ER SHARE
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| MANUAL TRANSACTIONS
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| TOTAL ER
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| TOTAL EE SHARE
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| TOTAL ER SHARE
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| TOTAL REMITTANCE
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IS TO TREASURY BOARD
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| TOTAL ER SHARE
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| LESS CROWNS:
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| TOTAL IS TO TB
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| CDFS 754 OR 753 TOTAL Credit
(CR)
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| TOTAL REMITTANCE Debit (DR)
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| IS TO TREASURY BOARD (CR)
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| DIFFERENCE
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ON COMPLETION OF APPENDIX "A" AND
"D"--The PAO clerk will proceed as follows to complete remittances
and charge government to TB:
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PAO Clerk
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- WRAP UP all pay offices by completing Appendix "E"
as follows:
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- PSMIP: INDICATE total EE's Appendix "B" for each
pay office;
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- PSMIP FREE EXECUTIVE: INDICATE total ER's from Appendix "B"
for each pay office;
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- LTD: INDICATE total remittance from Appendix "D"
for 753;
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- LTD DEFICIENCIES: INDICATE total remittance form Appendix
"D" for 754;
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- PSMIP REFUND: INDICATE total deductions from all IX listing
(766);
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- LTD MAN CURRENT: INDICATE total from PY listing for each
pay office;
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- LTD MAN ARREARS: INDICATE total from PZ listing for each
pay office.
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ON COMPLETION OF APPENDIX "E"
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- LOG ON to CDFS Accounts Payable screen;
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- CREATE remittance for all pay offices;
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- ENTER one line for financial coding bloc (FCB) for each deduction,
by pay office;
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- NOTATE CDFS ID number on control log sheet;
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- CREATE accounts payable interdepartmental settlement (IS) creditor
to charge the employer's share to Treasury Board (TB);
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- NOTATE CDFS ID number on the control log sheet;
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- PASS control log sheet to PAO QC clerk for approval.
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ON RETURN OF APPROVED DOCUMENTS--
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- FORWARD applicable listings, manual transaction sheets and
Appendix "D" to National Life.
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APPENDIX "E"
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Group Accounting Section
National Life Assurance Company of Canada
522 University Avenue, 6th Floor,
Toronto (Ontario)
M5G 1Y7
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Dear Sir/Madam:
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P.S.M.I.P. and L.T.D. REMITTANCE--ALL PAY OFFICES
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Please find enclosed a cheque in the amount
of $__________, representing P.S.M.I.P. and L.T.D. deductions recovered
from employees. This amount covers all paid transactions by all pay offices
during the month of ____________.
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VANCOUVER
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EDMONTON
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COD
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HOC
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| PSMIP
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| PSMIP EXECUTIVE
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| LTD
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| LTD DEFICIENCIES
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| PSMIP REFUNDS
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| LTD MAN CURRENT
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| LTD MAN ARREAR
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| TOTAL
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TORONTO
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MONTREAL
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HALIFAX
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| PSMIP
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| PSMIP EXECUTIVE
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| LTD
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| LTD DEFICIENCIES
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| PSMIP REFUNDS
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| LTD MAN CURRENT
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| LTD MAN ARREAR
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| TOTAL
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