ARCHIVED Work Procedures for Compensation Advisors and Pay Offices
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Service Purchase - Work Procedures for Compensation Advisors, Pay Offices and Public Service Pension Centre
Effective February 16, 2009, the provision of services with respect to the Service Purchase process to plan members will be the responsibility of the Public Service Pension Centre (Pension Centre) located in Shediac, New Brunswick. A centre of expertise has been established with the responsibility of providing individualized and general information to plan members and prospective plan members regarding service purchase.
A chart outlining the roles and responsibilities of all stakeholders involved in the service purchase process has been included with this Superannuation Administration Manual (SAM) Special Bulletin. The following is an outline of the new process.
Throughout all Service Purchase documents, reference is made to compensation advisors and pay offices. Compensation advisors include individuals in departments, Crown corporations and agencies and pay offices include regional and non-regional pay offices (offices providing pay services to employers not serviced by the Regional Pay System) unless otherwise specified.
The service entitled "Service Purchase" is the provision of information to plan members covering all aspects of the service purchase process, including the types of service available for buyback, the provision of cost estimates, impact of additional service on future pension benefits, accepting payments for service buyback, calculating balances owing and service paid to date on elections, and general information on income tax implications.
Service Purchase includes the buying back of prior contributory and non-contributory federal Public Service, service with an outside employer, transfers, surrenders, and buybacks within the Canadian Forces (CF) and the Royal Canadian Mounted Police (RCMP) pension plans and transfer value reinstatements.
Transitional Implementation Guidelines
It is expected that organizations will complete all Service Purchase work received (requests for information and estimates of costs) prior to each organization's implementation date, i.e. on December 15, 2008, January 19, 2009 or February 16, 2009. To ensure that current work received prior to the implementation date is completed, the "Estimate of cost" Application of the Estimate and Election (ESTEL) System and the Personal Computer (PC) Application "Estimate of Service Paid to Date" tool will be available until April 19, 2009.
All requests for information or estimates received and election forms signed on or after December 15, 2008, January 19, 2009 or February 16, 2009, dependent upon your organization's implementation date, must be forwarded to the Pension Centre.
Request for Service Purchase Information
Compensation Advisors
Compensation advisors receiving a request for service purchase information will suggest that plan members visit the Pension and Benefits Web portal for general information and provide the Pension Centre contact information. We ask that compensation advisors encourage plan members, using the telephone system, to select the appropriate service option to ensure prompt assistance by a pension expert. If they do not select an option and press "0" to reach an operator, they may experience longer delays.
| A Service Buyback Package is available on the Your Public Service Pension and Benefits Web portal. The package provides plan members information on making the decision to purchase prior service, explains the administrative process and provides all necessary forms.
| The Contact Information includes the Pension and Benefits Web portal address, a global email address, a toll free telephone number, a facsimile number and a mailing address, and is available on the Your Public Service Pension and Benefits Web portal.
Pension Centre
The Public Service Pension Centre of expertise will provide the requested information and promote the use of the Web portal. The Pension Centre will also provide a support function to help members navigate through the service purchase information and provide explanations if necessary.
"Estimate of cost" Application of the ESTEL System
Compensation Advisors
Plan members requesting estimates of cost will be invited to visit the "Your Public Service Pension and Benefits" Web portal and will be provided with the Pension Centre contact information.
Compensation advisors will no longer be responsible to calculate and provide estimates of cost to plan members. Effective April 20, 2009, the compensation community will no longer have access to the Estimate Application of the ESTEL System.
Pension Centre
Effective February 16, 2009, the Pension Centre will be responsible to provide plan members estimates of cost and forms related to service purchase. Information given will include the impact of the potential service on future pension benefits. The Pension Centre will provide service buyback estimates to plan members immediately based on information readily available.
Election Forms
- Election Form For Elective Pensionable Service (Public Works and Government Services Canada (PWGSC)- Travaux publics et Services gouvernementaux Canada (TPSGC) 2006)
- Election To Surrender Benefits (PWGSC-TPSGC 2092)
- Election Form For Transfer Value Service (PWGSC-TPSGC 2005)
- Election Form For Elevtive Pensionable Service (PWGSC-TPSGC 3006)
Compensation Advisors
Compensation advisors will provide plan members with the Pension Centre contact information and advise that the election forms must be mailed to the address indicated on the forms. It is recommended that the forms be sent by registered mail.
For election forms signed on or after February 16, 2009, compensation advisors must not accept nor forward these forms on behalf of plan members. Organizations that accept or forward forms could become liable should any additional costs resulting from delays be charged to plan members.
Compensation advisors will not receive a copy of the "Election Form For Elective Pensionable Service" (PWGSC-TPSGC 2006), the "Election To Surrender Benefits" form (PWGSC-TPSGC 2092), the "Election Form For Transfer Value Service" (PWGSC-TPSGC 2005) nor the new "Election Form For Elective Pensionable Service" (PWGSC-TPSGC 3006).
Employing departments and agencies will remain responsible for receiving the "Election not to Count Leave Without Pay as Pensionable Service" forms (PWGSC-TPSGC 2480 
) until the centralization of leave without pay.
Compensation advisors are no longer required to provide plan members with an election tax deductibility explanation letter for income tax purposes.
Pension Centre
Effective February 16, 2009, the Pension Centre will be responsible to receive election forms on behalf of the Minister of Public Works and Government Services Canada (PWGSC) including the new "Election Form For Elective Pensionable Service" (PWGSC-TPSGC 3006). An acknowledgement letter including election deduction details and a tax deductibility explanation letter for income tax purposes will be sent to plan members upon receipt of signed election forms.
Pay Offices
Pay offices will no longer receive a copy of the "Election Form For Elective Pensionable Service" (PWGSC-TPSGC 2006) or the new "Election Form For Elective Pensionable Service" (PWGSC-TPSGC 3006).
Evidence of Medical Examination (PWGSC-TPSGC 2081 )/Occupational Health Assessment Report (HC/SC 3312)
Compensation Advisors
Compensation advisors will no longer be responsible for providing medical forms for elections nor will they receive copies of the forms.
Pension Centre
The Pension Centre will provide medical forms for elections to plan members when necessary.
Service Buyback Deductions, Refunds and Defaults
Compensation Advisors
For election deduction inquiries, compensation advisors will inform plan members to access the Compensation Web Applications or view their pay stub to verify if deductions have been commenced, amended or stopped. If necessary, compensation advisors will inform plan members whether action has been taken to commence, amend, stop and/or refund election deductions. If plan members require more detailed information, they will be directed to contact the Pension Centre.
| Deductions: For elections signed on or after February 16, 2009, compensation advisors will continue to be responsible for commencing election deductions. Since they will no longer receive the election form, they will be advised to start deductions via the "Notice to Start Service Buyback Deductions" (PWGSC-TPSGC 2270), which will be sent by facsimile. Immediate action to start the deductions should be taken upon receipt of the form. Compensation advisors will still be required to identify whether an election deduction is being taken from salary.
Note: Compensation advisors are reminded of the importance of the use of the proper election deduction codes ensuring superannuation funds are apportioned correctly and avoiding incorrect defaults. Reference should be made to the following chart listing the different election types.
Description of Election Types
| Election Type | Signed prior to April 1, 2000 Fund 1 | Signed on or after April 1, 2000 Fund 2 |
|---|---|---|
| Public Service Superannuation Act (PSSA) Elections Single Rate Current | X | |
| PSSA Elections Single Rate Arrears | X | |
| PSSA Elections Double Rate Current | X | |
| PSSA Elections Double Rate Arrears | X | |
| Retirement Compensation Arrangement(RCA) Elections Single Rate Current | X | |
| RCA Elections Single Rate Arrears | X | |
| RCA Elections Double Rate Current | X | |
| RCA Elections Double Rate Arrears | X | |
| PSSA 2 Elections Single Rate Current | X | |
| PSSA 2 Elections Single Rate Arrears | X | |
| PSSA 2 Elections Double Rate Current | X | |
| PSSA 2 Elections Double Rate Arrears | X | |
| RCA 2 Elections Single Rate Current | X | |
| RCA 2 Elections Single Rate Arrears | X | |
| RCA 2 Elections Double Rate Current | X | |
| RCA 2 Elections Double Rate Arrears | X |
On transfers, the receiving organization will remain responsible to commence election deductions. To start an election deduction on a transfer-in using the Regional Pay System, the true effective date of the election must be used (refer to the Personnel-Pay Input Manual (PPIM) PPIM 4-4-04-1).
Refunds: Election refunds will continue to be issued in the same manner, either on regular pay or supplementary pay cheques depending on the situation. Compensation advisors continue to be responsible for the release of these cheques.
Pension Centre
The Pension Centre will continue to notify the pay office to amend, cease and refund election deductions. The pension COE will respond to client inquiries regarding service buyback deductions, refunds, and defaults.
| Deductions: Effective February 16, 2009, the Pension Centre will be responsible to send the "Notice to Start Service Buyback Deductions" (PWGSC-TPSGC 2270) by facsimile to the compensation advisorupon receipt of a signed Election Form for Elective Pensionable Service.
Refunds: In the majority of cases, the Pension Centre will continue to refund plan members on behalf of Crown corporations.
Defaults: Requests to resolve complex default issues will be forwarded to pay office via facsimile or memorandum.
Pay Offices
Deductions:
- Pay offices will continue to amend, cease, and refund election deductions.
- Defaults: Since December 15, 2008, pay offices have been recovering defaults of $150 or less (instead of less than $150) without the Pension Centre approval for all regional pay accounts.
Since December 15, 2008, regional pay offices, using the "Default Notice" (PWGSC-TPSGC 1871), have been reporting election defaults for Fund 1 elections payments up to September 30, 2003 only, for all regional pay accounts. There is no longer a requirement to report Fund 1 elections defaults for payments after September 30, 2003, and/or any Fund 2 defaults.
There are no changes to non-regional pay office procedures on reporting of election payment defaults using the "Default Notice" (PWGSC-TPSGC 1871).
Termination/Retirement Information PWGSC-TPSGC 2386 Pay Offices
Since December 15, 2008, when completing the "Termination/Retirement Information" (PWGSC-TPSGC 2386), Part 2A "Service Buyback(s)", regional pay offices are required to report payments for Fund 1 service buybacks up to September 30, 2003 only, for all regional pay accounts. There is no longer a requirement to report Fund 1 elections payments after September 30, 2003, and/or Fund 2 payments.
Non-regional pay offices must report service buybacks on the form "Termination/Retirement Information" (PWGSC-TPSGC 2386) until April 2011.
Notice of Election to Repay Pension of Canadian Forces, RCMP or Members of Parliament" (PWGSC-TPSGC 2221 )
Compensation Advisors
Compensation advisors will no longer receive a copy of the "Notice of Election to Repay Pension of Canadian Forces, RCMP or Members of Parliament" (PWGSC-TPSGC 2221 ).
Pension Centre
The "Notice of Election to Repay Pension of Canadian Forces, RCMP or Members of Parliament" (PWGSC-TPSGC 2221 ) will be sent directly to plan members.
Pay Offices
Pay offices will continue to be responsible to receive the "Notice of Election to Repay Pension of Canadian Forces, RCMP or Members of Parliament" (PWGSC-TPSGC 2221 ), and to commence the monthly deduction indicated on the form.
Certification of Salary, Service, and Leave Without Pay
Compensation Advisors
Compensation advisors will complete necessary certification documents when requested by the Pension Centre. The certifications will be completed and sent to the Pension Centre within 60 calendar days. If unable to locate files at former departments, pay offices or archives within the prescribed time, compensation advisors will advise the Pension Centre via facsimile of the unavailability of documents required to certify service. As functionalities of the new pension system are introduced, the requests for certification of salary, service, and leave without pay records will reduce.
Pension Centre
When the Pension Centre receives a signed election form from a plan member, a request will be sent to the compensation advisor to certify salary, service and leave without pay, as required.
Service Buyback Notice (PWGSC-TPSGC 2097)
Compensation Advisors
Compensation advisors will continue to receive a copy of "Service Buyback Notice" (PWGSC-TPSGC 2097).
Pension Centre
Effective February 16, 2009, the Pension Centre will send the "Service Buyback Notice" (PWGSC-TPSGC 2097) directly to plan members with a copy to compensation advisors.
Pay Offices
Pay offices will continue to receive a copy of the "Service Buyback Notice" (PWGSC-TPSGC 2097).
Application For Certification of a Provisional Past Service Pension Adjustment (PWGSC-TPSGC 2468)
Compensation Advisors
Compensation advisors will no longer receive a copy of the "Application For Certification of a Provisional Past Service Pension Adjustment" (PWGSC-TPSGC 2468).
Pension Centre
The Pension Centre will send the "Application For Certification of a Provisional Past Service Pension Adjustment" (PWGSC-TPSGC 2468) directly to plan members.
Election Payments
Compensation Advisors
Compensation advisors will no longer be responsible for forwarding elective service payments.
| Note: Compensation advisors who have in their possession any post-dated cheques for service buyback payments from plan members on leave without pay, should immediately forward them to the Pension Centre using the same process. The compensation advisor will notify the plan member that future service buyback payments should be sent directly to the Pension Centre using the new "Payment Transmittal Form" (PWGSC-TPSGC 570 ).
| [Content that is no longer valid has been deleted.]
Pension Centre
Effective February 16, 2009, the Pension Centre will be responsible for receiving all election payments.
| [Content that is no longer valid has been deleted.]
Request For Estimate of Elective Service Paid to Date (PWGSC-TPSGC 2030)
Compensation Advisors
Election balance owing
For election balance owing requests received on or after February 16, 2009, compensation advisors are no longer responsible to provide an estimate to plan members. Access to the PC Application "Estimate of Service Paid to Date" tool will be removed April 20, 2009. Applications previously saved should be deleted. Compensation advisors will refer plan members to the Pension Centre for balance owing information.
In the case of a resignation or retirement, if a plan member wishes to use termination payments towards the cost of elective service, the plan member will contact the Pension Centre to receive the balance owing information. The plan member must then provide specific direction to the compensation advisor for recovery action.
When a plan member wishes to use non-eligible retiring allowances or other termination payments towards the cost of elective service, compensation advisors will request from Pension Centre a copy of the plan member's tax deductibility explanation letter for income tax purposes. This information is required to establish the amount of non-eligible payments that can be automatically tax sheltered. Refer to the Section 4.4 of Compensation Directive (CD 2006-002) for details.
Pension Centre
Election balance owing - Information to plan members
Effective February 16, 2009, the Pension Centre will be responsible for providing all calculations of balances owing on elections to plan members within 60 calendar days.
Transfer Value Reinstatement - Control Notice
Compensation Advisors
Compensation advisors will no longer receive the Control Notice number 0932. It is no longer necessary to advise re-employed plan members who received a transfer value payment, that they may buy back this service.
Pension Centre
The Pension Centre will advise re-employed plan members of the one-time opportunity to reinstate a prior period of pensionable service for which they received a transfer value.
Service Standards
Compensation Advisors
Certifications of salary, service and leave without pay requests received from the Pension Centre will be completed and returned within 60 calendar days.
Compensation advisors will commence election deductions immediately upon receipt of the "Notice to Start Service Buyback" (PWGSC-TPSGC 2270).
Pension Centre
Estimates of costs and necessary forms for service purchase are provided immediately based on information available.
An acknowledgement letter will be sent to plan members upon receipt of a signed election form.
The "Notice to Start Service Buyback Deductions" (PWGSC-TPSGC 2270) will be sent to the compensation advisor by facsimile upon receipt of a signed Election Form for Elective Pensionable Service.
Information on balance owing will be provided to plan members within 60 calendar days.
Pay Offices
Upon receipt of the "Service Buyback Notice" PWGSC-TPSGC 2097), pay offices will amend, stop and/or refund election deductions within 10 working days.
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