CD 2011-007

Subject: New Rates for the Chief Financial Officer (CFO) Transitional Allowance

May 27, 2011

1. Purpose

1.1. The purpose of this directive is to provide information on the new rates for the CFO Transitional Allowance included in the Financial Management (FI) group's collective agreement. This agreement, between the Treasury Board and the Association of Canadian Financial Officers, was signed on March 3, 2011, and will expire on November 6, 2011.

2. Policy

2.1. This collective agreement requires that each employee receives all pay adjustments within 90 calendar days from the date of signature. Consequently, as this provision forms part of the collective agreement, it must be implemented within the 90-day implementation period which expires on June 1, 2011.

2.2. The CFO Transitional Allowance is payable to all employees occupying a position at the FI-03 and FI-04 levels who have reached the maximum rate of pay for their level.

2.3. The allowance is maintained at 1% of the maximum rate of pay for the FI-03 level and 2% of the maximum rate of pay for the FI-04 level.

2.4. This allowance does not form part of the employee's salary and is not to be used in calculating the 4% gratuity or premium pay in lieu of statutory holidays.

2.5. Part Time

Part-time employees are entitled to this allowance on a prorated basis.

2.6. In order to be entitled to the CFO Transitional Allowance, the employee must be a member of the FI group, on or after the date of signing of the collective agreement, and have reached the maximum rate of pay for his level. In addition, the employee must have received at least 10 days pay in the calendar month in order to be eligible for the Transitional Allowance for the full month.

2.7. Eligible employees on pre-retirement transition leave (PRL), leave with income averaging (LIA) or for which there is an ongoing leave without pay (LWOP) transaction, who also meet the 10-day eligibility rule for the month, are entitled to receive the CFO Transitional Allowance payment for the full month.

2.8. Acting Pay

When an FI-03 employee, in receipt of the CFO Transitional Allowance, is required by the employer to perform duties at an FI-04 level, the Transitional Allowance of the substantive position shall continue until such time as the requirements to receive the Transitional Allowance for the acting position are met.

2.8.1. Employees whose substantive position is not in the FI group, but are required to perform duties at an FI-03 or FI-04 level within the FI group, will be entitled to receive the CFO Transitional Allowance provided they meet the eligibility criteria.

3. Procedures and Instructions

3.1. The existing entitlement code 229 "Monthly Terminable Allowance / Chief Financial Officer Transitional Allowance", will continue to be used to pay the CFO Transitional Allowance.

3.2. The Transitional Allowance shall be paid in accordance with the following rates:

Presenting the new rates for the Chief Financial Officer Transitional Allowance effective November 7, 2009.
Effective Date	Level	Maximum Rate	Monthly Allowance
7-Nov-09	FI-03	1% of $94,739	$78.95
7-Nov-09	FI-04	2% of $105,958	$176.60

Presenting the new rates for the Chief Financial Officer Transitional Allowance effective November 7, 2010.
Effective Date	Level	Maximum Rate	Monthly Allowance
7-11-10	FI-03	1% of $96,160	$80.13
7-11-10	FI-04	2% of $107,547	$179.25

3.3 For employees already receiving the CFO Transitional Allowance, Compensation Advisors will be responsible for revising the ongoing rate and adjusting the retroactivity of the allowance by completing an "Entitlement Amend" (Entitlement - Amend (ENA) - Pay Action Code (PAC) 18A) transaction with entitlement code 229, rate base 6 (monthly).

The following table provides instructions on how to amend the ongoing rate and process the retroactive payment of the CFO Transitional Allowance:

New monthly rate effective November 7, 2009
PAC	Effective From	Effective To	Rate Base	Rate Amount	Field 67	Field 68	From Rate (Field 69)
18A 229	01-11-09	30-11-09	6	New Rate	N	1	Former Rate
18A 229	01-12-09	31-12-09	6	New Rate			Former Rate
71 229 (EAJ)	01-12-09	23-12-09	0	Lump sum difference between new rate and old rate for 17 days
71 229 (EAJ)	24-12-09	31-12-09	0	Lump sum difference between new rate and old rate for 6 days
18A 229	01-01-10	31-10-10	6	New Rate	N	10	Former Rate

New monthly rate effective November 7, 2010
PAC	Effective From	Effective To	Rate Base	Rate Amount	Field 67	Field 68	From Rate (Field 69)
18A 229	01-11-10	30-11-10	6	Applicable rate	N	1	Former Rate
18A 229	01-12-10	31-12-10	6	Applicable rate			Former Rate
71 229 (EAJ)	01-12-10	22-12-10	0	Lump sum difference between new rate and old rate for 16 days
71 229 (EAJ)	23-12-10	31-12-10	0	Lump sum difference between new rate and old rate for 7 days
18A 229	01-01-11		6	New Rate	N	Number of months to current pay period	Former Rate

3.4 To commence the CFO Transitional Allowance for the first time, the Compensation Advisor must complete an "Entitlement Commence" (ENC - PAC 18C) transaction, with entitlement code 229, rate base 6 and a monthly rate. The system will divide the monthly rate in two equal amounts and pay one amount with each regular biweekly pay (excluding pay period plus). The "from date" is always the first day of the month, and the "to date" is left blank for ongoing payments. For a closed period, the "to date" is the end of the month. To ensure that the salary/service history (SSH) reflects the correct data and that the Public Service Pension Plan (PSPP) contributions are deducted at the applicable rate, the data input must be done as follows:

7C Account

The following table provides instructions on how to commence the entitlement for a full-time FI-03 employee who has reached the maximum pay scale for his group before November 2009, has met the 10-day eligibility rule for each month, and is paid on a 7C cycle.

Table presents the input requirements for new payments of the Chief Financial Officer Transitional Allowance for 7C Accounts effective November 7, 2009.
PAC	Effective From	Effective To	Rate Base	Rate Amount	Field 67	Field 68
18C 229	01-11-09	30-11-09	6	$78.95	N	1
18C 229	01-12-09	31-12-09	6	$78.95
71 229 (EAJ)	01-12-09	23-12-09	0	$58.35 ($78.95 / 23 days X 17 days)
71 229 (EAJ)	24-12-09	31-12-09	0	$20.60 ($78.95 / 23 days X 6 days)
18C 229	01-01-10	31-10-10	6	$78.95	N	10

Table presenting the continuation of the input requirements for new payments of the Chief Financial Officer Transitional Allowance for 7C Accounts effective November 7, 2010
PAC	Effective From	Effective To	Rate Base	Rate Amount	Field 67	Field 68
18C 229	01-11-10	30-11-10	6	$80.13	N	1
18C 229	01-12-10	31-12-10	6	$80.13
71 229 (EAJ)	01-12-10	22-12-10	0	$55.74 ($80.13 / 23 days X 16 days)
71 229 (EAJ)	23-12-10	31-12-10	0	$24.39 ($80.13 / 23 days X 7 days)
18C 229	01-01-11		6	$80.13	N	Number of months to current pay period

3.5. 7A and 7B Accounts

Table presenting the input requirements for new payments of the Chief Financial Officer Transitional Allowance for 7A and 7B Accounts effective November 7, 2009.
PAC	Effective From	Effective To	Rate Base	Rate Amount	Field 67	Field 68
18C 229	01-11-09	30-11- 09	6	$78.95	N	1
18C 229	01-12-09	31-12-09	6	$78.95
71 229 (EAJ)	01-12-09	09-12-09	0	$24.03 ($78.95 / 23 days X 7 days)
71 229 (EAJ)	10-12-09	31-12-09	0	$54.92 (78.95$ / 23 days X 16 days)
18C 229	01-01-10	31-10-10	6	$78.95	N	10

Table presenting the continuation of the input requirements for new payments of the Chief Financial Officer Transitional Allowance for 7A and 7B Accounts effective November 7, 2010.
PAC	Effective From	Effective To	Rate Base	Rate Amount	Field 67	Field 68
18C 229	01-11-10	30-11-10	6	$80.13	N	1
18C 229	01-12-10	31-12-10	6	$80.13
71 229 (EAJ)	01-12-10	08-12-10	0	$20.90 ($80.13 / 23 days X 6 days)
71 229 (EAJ)	09-12-10	31-12-10	0	$59.23 ($80.13 / 23 days X 17 days)
18C 229	01-01-11		6	$80.13	N	Number of months to current pay period

3.6. The ongoing entitlement for a part-time employee will be automatically prorated by the system. Therefore, the full amount of the allowance must be entered for both full time and part-time employees on the 18C/A 229 transaction.

3.7. Although the new rates for the Transitional Allowance are effective on November 7, 2009, and November 7, 2010, an employee who has met the 10-day eligibility rule during these months will be entitled to receive the allowance at the higher rate for the full month.

3.8. The CFO Transitional Allowance is subject to income tax, payroll tax, CPP, QPP, EI, QPIP, Disability Insurance (DI), Long-Term Disability (LTD) Insurance, public service pension plan, Supplementary Death Benefit Plan (SDBP), and Public Service Management Insurance Plan (PSMIP) deductions.

3.9. Part-time employees who meet the 10-day eligibility rule are entitled to the CFO Transitional Allowance on a prorated basis. The 10-day rule specifies that, in order for part-time employees to be eligible for the CFO Transitional Allowance, they must be paid for twice the assigned work week in a month. For example, if the assigned work week is 22.5 hours per week, they must be paid for 45 hours in a month to meet the rule. If part-time employees meet this rule, they are to receive a prorated payment based on the assigned work week. Therefore, the payment formula to calculate the allowance for part-time employees is:

assigned work week X

full-time monthly payment amount

standard work week

3.10. For pay input instructions, please refer to PPIM sections PPIM 4-4-18-3-1, PPIM 4-4-18-3-2, PPIM 4-4-18-5-1, PPIM 4-4-18-5-2, PPIM 4-4-18-6-1, PPIM 4-4-71 and PPIM 5-9.

4. Inquiries

4.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Original Signed by
Carrie E. Roussin

Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): Ent 229