Special Advice to Crown Corporations and Others 2021-001

Background

New provisions in the Public Service Superannuation Regulations (PSSR) for certain types of Leave without pay (LWOP) came into force (CIF) on June 10, 2021. This legislation aligns the PSSR with new leave options in the Canada Labour Code and Employment Insurance Act.

What is new

Certain exemptions to the “transition to double deficiency rate after the first three months” rule in the PSSR for caregiving related leave without pay have been updated. As of June 10, 2021, employees who take parental or compassionate caregiving leave without pay are now only required to pay their share of the pension contributions for the given timeframes, if they choose to count their LWOP as pensionable. No changes to the LWOP codes have been made yet. Until system changes are implemented to address the regulations, continue to use the LWOP codes previously designated for each leave type.

• Compassionate care-giving leave: Where a contributor is entitled to leave which is taken during a period for which an unemployment benefit is payable to the contributor under section 23.1, 23.2 or 23.3 of the Employment Insurance Act
• Compassionate care-giving, parental, leave for death or disappearance of a child (applicable only to contributors to whom the Canada Labour Code applies): the leave that is a leave provided for under Division VII of Part III of the Canada Labour Code—if the contributor is entitled to that leave under that Act—and the deputy head of the employing department certifies to the Minister that the leave is one provided for under that Division
• Parental leave within 78-weeks: When a contributor on leave without pay in order to care for their newborn child or a child placed with them for the purpose of adoption, and the leave is taken during a period for which an unemployment benefit may be payable to them under section 23 of the Employment Insurance Act

Application

The new legislation should be applied on a “going forward” basis. This means that changes can only be reflected in new or continuous leaves as of June 10, 2021.

Entering the Leave in the Data Capture Tool

No changes to the LWOP codes have been made yet. Until system changes are implemented to address the regulations, continue to use the LWOP codes previously designated for each leave type.

Pension Centre will manually adjust the costing, based on the from and to dates and the type of leave, to reflect single rate Public Service Superannuation Act (PSSA) up to the maximum timeframes reflected below.

• 78 weeks of Maternity/Parental related leave
• 63 weeks of Parental related leave
• 28 weeks of Compassionate care leave
• 37 weeks of family caregiving for critical illness of child
• 17 weeks family caregiving for critical illness of adult
• 104 weeks of leave for Death and Disappearance of a child

Interim Process: Identification of different leave types for caregiving and compassionate leaves for Pension Centre

The same code is used in Data Capture Tool (DCT) for the following leave types: compassionate care leave, caregiving for critical illness leave and leave for death and disappearance of a child. To ensure that the LWOP pension contributions are correctly calculated upon an employees return to work from leave without pay for compassionate caregiving purposes, notification must be sent to Pension Centre for those specific leave types.

1. Use the Leave Application and Absence Report form (GC-178-E) and complete the text box that requests “For all other leave types requested, give reasons here and/or quote article and sub-article of applicable agreement” with the relevant reference to which compassionate caregiving leave the employee has been approved for
2. Fill out other basic identifying information, such as:
   • Employee Name (first and last)
   • Personal record identifier (PRI) and Paylist
   • Department
   • LWOP to and from dates
3. Ensure the form is signed by the approving manager
4. Submit the Leave Application and Absence Report form (GC-178-E) to the Pension Centre: tpsgc.dgrgpmatimageriepension-rgpbmatpensionimaging.pwgsc@tpsgc-pwgsc.gc.ca

Revoking Election not to Count Leave without pay as Pensionable Service (PWGSC-TPSGC 2480)

Contributors who were on parental or compassionate caregiving leave on June 10, 2021 and had previously elected not to count their service (i.e., their Election not to Count Leave Without Pay as Pensionable Service (PWGSC-TPSGC 2480) form was completed and received by or before June 10, 2021) will have an opportunity to revoke that decision based on these new regulations until December 10, 2021.

Should a contributor wish to revoke their 2480, the Pension Centre will be the point of contact for the employee. An employee in this situation does not need to complete a specific form, but does need to provide their direction to the Pension Centre in writing (by fax, email or mail). The revocation will apply to the entire period in respect of which the election was made.

Pension Centre will notify Compensation that the employee has decided to revoke their 2480. Until it is determined whether new LWOP codes will be developed, Compensation should use the previously utilized LWOP codes.