ARCHIVED CD 1996-037

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• Appendix "A" - LIST OF ENTITLEMENT CODES FOR PAYMENTS UNDER THE Work Force Adjustment Directive (WFAD), Executive Employment Transition Policy (EETP), CRP AND Early Departure Incentive (EDI) POLICIES

September 6, 1996

Ottawa, Canada
K1A 0S5

SUBJECT: Revised Work Force Adjustment Directive Alternative Delivery Initiatives

1. PURPOSE

1.1 The purpose of this directive is to introduce 8 new entitlement codes and 3 new reason for leaving codes relating to the Alternative Delivery initiatives (ADI) provisions under the revised Work Force Adjustment Directive (WFAD).

2. BACKGROUND/POLICY

2.1 The revised Work Force Adjustment Directive is effective on July 16, 1996 and has been amended to address Alternative Delivery initiatives.

2.2 An Alternative Delivery initiative is the transfer of any work, undertaking or business of the Public Service to any body or corporation that is a separate employer or that is outside the Public Service.

2.3 The amount of the ADI lump sum payment is dependent on the type of transitional employment arrangements. The employment arrangements are categorized into three types: type 1 for full continuity, type 2 for substantial continuity and type 3 for lesser continuity. For the qualifying criteria relating to the various transitional employment arrangements, refer to section 7.2.2 of the revised WFAD.

3. PROCEDURES/INSTRUCTIONS

3.1 The particulars of the new entitlement codes associated with the Alternative Delivery initiatives are as follows:

• Code 385 ADI LUMP SUM - TRANSFERABLE
• Code 386 ADI LUMP SUM - NON TRANSFERABLE

The corresponding payment provisions are 3 months pay to accept a type 2 job arrangement or 6 months pay to accept a type 3 job arrangement in an Alternative Delivery initiative situation.

Code 385 is to be used to requisition that portion of the benefit which is eligible to be transferred to a Registered Retirement Savings Plan (Registered Retirement Savings Plan (RRSP) ) or to a Registered Pension Plan ( Registered Pension Plan (RPP) ). This payment is subject to Income Tax and Unemployment Insurance deductions. Please note that if this payment is transferred to an RRSP or to an RPP it would not be subject to income tax.

Code 386 is to be used to requisition that portion of the benefit which exceeds the established limits and is not eligible to be transferred to an RRSP or to an RPP and will therefore, automatically be designated as non-eligible on the T4A. This payment is subject to Income Tax and Unemployment Insurance deductions.

Full details of these payments are included in sections 7.7.1 and 7.7.4 of the revised WFAD.

• Code 387 ADI PENSION LUMP SUM - TRANSFERABLE
• Code 388 ADI PENSION LUMP SUM - NON TRANSFERABLE

The corresponding payment provisions are three (3) months pay to accept a type 1 or a type 2 job arrangement in an Alternative Delivery initiative situation where pension arrangements are below the prescribed standard.

Code 387 is to be used to requisition that portion of the benefit which is eligible to be transferred to an RRSP or to an RPP. This payment is subject to Income Tax and Unemployment Insurance deductions. Please note that if this payment is transferred to an RRSP or to an RPP it would not be subject to income tax.

Code 388 is to be used to requisition that portion of the benefit which exceeds the established limits and is not eligible to be transferred to an RRSP or to an RPP and will therefore, automatically be designated as non-eligible on the T4A. This payment is subject to Income Tax and Unemployment Insurance deductions.

Full details of these payments are included in section 7.7.3 of the revised WFAD.

• Code 389 ADI SALARY TOP-UP ALLOWANCE - TRANSFERABLE
• Code 390 ADI SALARY TOP-UP ALLOWANCE - NON TRANSFERABLE

The corresponding payment provisions are a lump sum payment to top-up salary offered in a type 2 or type 3 job arrangement in an Alternative Delivery initiative situation.

Code 389 is to be used to requisition that portion of the benefit which is eligible to be transferred to an RRSP or to an RPP. This payment is subject to Income Tax and Unemployment Insurance deductions. Please note that if this payment is transferred to an RRSP or to an RPP it would not be subject to income tax.

Code 390 is to be used to requisition that portion of the benefit which exceeds the established limits and is not eligible to be transferred to an RRSP or to an RPP and will therefore, automatically be designated as non-eligible on the T4A. This payment is subject to Income Tax and Unemployment Insurance deductions.

Full details of these payments are included in section 7.7.1 and 7.7.4 of the revised WFAD.

• Code 391 ADI ADDITIONAL SALARY TOP-UP ALLOWANCE - TRANSFERABLE
• Code 392 ADI ADDITIONAL SALARY TOP-UP ALLOWANCE - NON TRANSFERABLE

The corresponding payment provisions are an additional 6 months of salary top-up allowance in a type 2 job arrangement where new salary falls below 80% of former salary.

Code 391 is to be used to requisition that portion of the benefit which is eligible to be transferred to an RRSP or to an RPP. This payment is subject to Income Tax and Unemployment Insurance deductions. Please note that if this payment is transferred to an RRSP or to an RPP it would not be subject to income tax.

Code 392 is to be used to requisition that portion of the benefit which exceeds the established limits and is not eligible to be transferred to an RRSP or to an RPP and will therefore, automatically be designated as non-eligible on the T4A. This payment is subject to Income Tax and Unemployment Insurance deductions.

Full details of these payments are included in section 7.7.2 of the revised WFAD.

3.2 New entitlement codes 385, 386, 387, 388, 389, 390, 391 and 392 were updated to the Entitlement and Deduction Control file as of August 14, 1996. The input requirements for these new codes are identical to current entitlement codes 250 and 279. Please note that pending completion of programming to ensure that the ADI entitlement codes are fully operational in the Regional Pay System, interim processes have been identified. Refer to section 4 of this directive for inherent particulars.

3.3 Current entitlement codes 108 (Retiring Allowance - Transferable) and 051 (Retiring Allowance Non-Transferable) are to be used for requesting pay in lieu of unfulfilled surplus period as provided for in sections 6.2 and 7.6 of the revised WFAD.

3.4 Current entitlement codes 250 (Separation Benefit - Transferable) and 279 (Separation Benefit Non-Transferable) are to be used for requesting the separation benefit payment as provided for in section 6.3 of the revised WFAD directive.

3.5 The particulars of entitlement codes 108, 051, 250 and 279 are contained in Services Pay Directive 1989-143(49) dated November 9, 1989. This directive also provides the particulars of entitlement codes 054 (Severance Pay - Transferable) and 280 (Severance Pay Non-Transferable).

3.6 For further information concerning the determination of the limits for the transfer of funds to an RRSP or to an RPP, refer to Compensation Directive 1995-027 dated July 12, 1995.

3.7 Care should be taken to ensure that the appropriate entitlement codes are utilized. The proper codes must be used whether or not the employee requests a transfer of funds to an RRSP or to an RPP.

3.8 If a new or separate line object is to be assigned by a department in the department's accounting records to identify payments made with codes 385, 386, 387, 388, 389, 390, 391 or 392, the Financial and Reporting Products Directorate (address below) must be advised of the line object allocated in order that the pay expenditure control file may be updated accordingly.

Financial and Reporting
Products Directorate
11-B-1, Phase III
Place du Portage
Hull, Quebec
KlA OS5

3.9 The attached Appendix "A" provides a revised list of entitlement codes for payments under the Work Force Adjustment Directive, the Executive Employment Transition Policy, the Civilian Reduction Program and the Early Departure Incentive Program.

3.10 The particulars of the new reason for leaving codes associated with the Alternative Delivery initiatives are as follows:

• Code 47
  ADI Termination - accept or refuse a type 1 job arrangement.
• Code 48
  ADI Termination - accept or refuse a type 2 job arrangement.
• Code 49
  ADI Termination - accept a type 3 job arrangement.

3.11 The above reason for leaving codes are operational in the Regional Pay System and must be used for all terminations related to an Alternative Delivery initiative situation.

4. INTERIM PROCESSES

4.1 Pending completion of programming, the input of the new ADI entitlement codes by departmental clients MUST BE DONE VIA BATCH INPUT MODE . We will advise you once programming is complete so on-line input may be resumed.

4.2 The batch input received from the clients with the new ADI entitlement codes will be intercepted and handled manually by the Pay Office clerk. This temporary procedure is necessary to ensure the correct calculation and update of the applicable gratuity taxes and unemployment insurance deductions for payment and statement of remuneration purposes.

5. INQUIRIES

5.1 p Any request for information regarding the foregoing should be addressed to your Public Works and Government Services Canada (PWGSC) Client Services Centre.

Original Signed by
P. Charko

P. Charko
Director General
Compensation Sector
Government Operational Service

Reference: CJA 9015-24, Allowance file

Appendix "A"

LIST OF ENTITLEMENT CODES FOR PAYMENTS UNDER THE WFAD, EETP, CRP AND EDI POLICIES

• Workforce Adjustment Directive (WFAD)
• Executive Employment Transition Policy (EETP)
• Civilian Reduction Program (CRP)
• Early Departure Incentive Program (EDI)

CODE	TITLE	AUTHORITY	DESCRIPTION
051	Retiring Allowance Non-Transferable	Section 6.2 and 7.6 of WFAD Section 4.1.1 of EETP	Pay in lieu of unfulfilled surplus period Payment in lieu of notice
108	Retiring Allowance Transferable	Section 6.2 and 7.6 of WFAD Section 4.1.1 of EETP	Pay in lieu of unfulfilled surplus period Payment in lieu of notice
250	Separation Benefit or Alternative Lump Sum Payment or CRP Departure Allowance Transferable	Section 6.3 of WFAD Section 4.3 of EETP Budget Act 1994	Separation benefit Alternative settlement of up to 15% of base salary Civilian Reduction Program - departure allowance
279	Separation Benefit or Alternative Lump Sum Payment or CRP Departure Allowance Non-Transferable	Section 6.3 of WFAD Section 4.3 of EETP Budget Act 1994	Separation benefit Alternative settlement of up to 15% of base salary Civilian Reduction Program - departure allowance
363	Retention Payment Transferable	Sections 6.4 to 6.7 incl., and 7.6 of WFAD	Retention payment: total facility closure, relocation of work units, and alternative delivery initiative
364	Retention Payment Non-Transferable	Sections 6.4 to 6.7 incl., and 7.6 of WFAD	Retention payment: total facility closure, relocation of work units, and alternative delivery initiative
365	Turnkey Payment or Payment in Lieu of Foregone Benefits Transferable	Section 7.8 of FORMER WFAD dated in 1991 Section 4.1.2 of EETP	Turnkey payment in a devolution situation for employees declared surplus under former WFAD. Payment in lieu of foregone benefits
366	Turnkey Payment or Payment in Lieu of Foregone Benefits Non-Transferable	Section 7.8 of FORMER WFAD dated in 1991 Section 4.1.2 of EETP	Turnkey payment in a devolution situation for employees declared surplus under former WFAD Payment in lieu of foregone benefits
367	Contracting Out Payment or Compensation for Pension Reduction Transferable	Section 8 of FORMER WFAD dated in 1991 Section 4.1.3 of EETP	Special provisions regarding contracting out for employees declared surplus under former WFAD Up to 30% of salary for pension reduction
368	Contracting Out Payment or Compensation for Pension Reduction Non-Transferable	Section 8 of FORMER WFAD dated in 1991 Section 4.1.3 of EETP	Special provisions regarding contracting out for employees declared surplus under former WFAD Up to 30% of salary for pension reduction
369	Civilian Reduction Program - Lump Sum Transferable	Budget Act 1994	Lump sum equivalent to 12 months pay under the Civilian Reduction Program
370	Civilian Reduction Program - Lump Sum Non-Transferable	Budget Act 1994	Lump sum equivalent to 12 months pay under the Civilian Reduction Program
371	Civilian Reduction Program - Supplement or Age and years of service allowance under EDI Transferable	Budget Act 1994 TB 823092 dated June 27, 1995 - Early Departure Incentive Program Order	Supplement under the Civilian Reduction Program based on years of continuous employment and age Age and years of service allowance under the Early Departure Incentive Program
372	Civilian Reduction Program - Supplement or Age and years of service allowance under EDI Non-Transferable	Budget Act 1994 TB 823092 dated June 27, 1995 - Early Departure Incentive Program Order	Supplement under the Civilian Reduction Program based on years of continuous employment and age Age and years of service allowance under the Early Departure Incentive Program
373	Payment under EDI Transferable	TB 823092 dated June 27, 1995 - Early Departure Incentive Program Order	Lump sum payment under the Early Departure Incentive Program other than age and service allowance and severance pay
374	Payment under EDI Non-Transferable	TB 823092 dated June 27, 1995- Early Departure Incentive Program Order	Lump sum payment under the Early Departure Incentive Program other than age and years of service allowance and severance pay
385	ADI Lump Sum Transferable	Sections 7.7.1 and 7.7.4 of WFAD	3 months pay to accept a type 2 job arrangement or 6 months pay to accept a type 3 job arrangement in an Alternative Delivery Initiative situation
386	ADI Lump Sum Non-Transferable	Sections 7.7.1 and 7.7.4 of WFAD	3 months pay to accept a type 2 job arrangement or 6 months pay to a accept a type 3 job arrangement in an Alternative Delivery Initiative situation
387	ADI Pension Lump Sum Transferable	Section 7.7.3 of WFAD	3 months pay to accept a type 1 or type 2 job arrangement in an Alternative Delivery Initiative situation where pension arrangements are below the prescribed standard
388	ADI Pension Lump Sum Non-Transferable	Section 7.7.3 of WFAD	3 months pay to accept a type 1 or type 2 job arrangement in an Alternative Delivery Initiative situation where pension arrangements are below the prescribed standard
389	ADI Salary Top-up allowance Transferable	Sections 7.7.1 and 7.7.4 of WFAD	Lump sum payment to top-up salary offered in a type 2 or type 3 job arrangement in an Alternative Delivery Initiative situation
390	ADI Salary Top-up allowance Non-Transferable	Sections 7.7.1 and 7.7.4 of WFAD	Lump sum payment to top-up salary offered in a type 2 or type 3 job arrangement in an Alternative Delivery Initiative situation
391	ADI Additional Salary Top-up allowance Transferable	Section 7.7.2 of WFAD	Additional 6 months of salary top-up allowance in a type 2 job arrangement where new salary falls below 80% of former salary
392	ADI Additional Salary Top-up allowance Non-Transferable	Section 7.7.2 of WFAD	Additional 6 months of salary top-up allowance in a type 2 job arrangement where new salary falls below 80% of former salary