Leave Income Averaging Do's and Don'ts (LIA)

Retroactive Revisions:

1.   DO:

Make any necessary adjustments for reporting the retroactivity and updating the permanent basic pay lines for accounts that are currently on LIA (the recovery period has not ended).

2.   DON'T:

Manually revise accounts that have a completed LIA arrangement within the retroactive period of the collective agreement. It is irrelevant at present, since the full salary will be revised to the new full salary retroactively and all Leave Without Pay (LWOP) of LIA (LIW) periods will be deducted and treated like any other LWOP. The Supplementary Death Benefits Plan (SDBP) contributions under the Public Service Superannuation Act (PSSA) will also be adjusted accordingly.

3.   DO:

To revise an account of an employee that is currently on LIA, create an Entitlement-Amend (ENA) (s) 210 or 211 transaction as per the Personnel Pay Input Manual (PPIM) 5-9 and Compensation Directive 2004-012 for all of the applicable retroactive period. Input only the number of days of the retroactive period for which the employee was on full salary (do not include the days on the LIA period). Create a Revision (REV) transaction 001 or 002 open period, if applicable, with the effective date of signing of the collective agreement, indicating full salary in order to update the permanent full salary line. Calculate the reduce salary based on the new rate of pay as indicated in the Compensation Directive 1995-047 and create an LIA amend(s) 306 with the new reduced salary. The "effective to" date of the LIA amend(s) 306 transactions must be the end of the original LIA period. The Pay Office (PO) will create the supplementary payment for the retroactive period of LIA.

4.   DO:

Ensure that, when you are paying the Table 1, 2, 3, and 5 revisions manually, all cheques dated for the 2001 tax year are in recipients' hands in the 2001 tax year.

OTHER LIA ISSUES:

Back to Back LIA Arrangements:

1.   DO:

An amend 306 (18A 306) in order to start a LIA period immediately following the end of an existing LIA arrangement. The Regional Pay System (RPS) does not drop the LIA end date from the Master Employee Record (MER) until after the pay period in which you would have to do a LIA commence (18C306) for the subsequent LIA, has closed.

Change in Salary:

2.   DO:

After completing the LIA amend (18A306) to indicate a change in the reduced salary, wait till the PO intervenes to issue the supplementary cheque and to make any adjustments required. The PO service levels require a payment no later that five (5) working days after the ENA 306 is in History in the Transaction Data Base (TDB). Paying the difference manually causes pension and statutory deduction adjustments to be missed.

LWOP for Various Reasons During LIA:

3.   DO:

Recover all LWOP taken while on LIA at the pre-arrangement salary rate.