ARCHIVED CD 1999-035

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October 12, 1999 (Revised November 17, 2004)

SUBJECT: Terminable Allowance--New and Ongoing usage

1. PURPOSE

1.1 The purpose of this directive is to provide you with information concerning the new Terminable Allowance (TA) entitlement (code 229) currently in use by the Computer Sciences Group (CS) that will also be used for certain employees who occupy positions in the Primary Products Inspection (PI) Group and the Technical Inspection (TI) Group.

1.2 In this text, use of the masculine is generic and applies to both men and women.

2. BACKGROUND

2.1 The new entitlement code 229 was introduced as a result of the new collective agreement for the CS Group and was made available to the PI and the TI Groups in an effort to reduce the transactions required to implement the TA allowance.

2.2 This Compensation Directive should be read in conjunction with Compensation Directives 1999-024 dated May 27, 1999 and 1999-031 dated August 19, 1999.

3. POLICY

3.1 The TA paid with the entitlement code 229 is available for client input for the CS, PI and TI groups effective September 1, 1999.

3.2 The new TA is a monthly entitlement that is to be paid with every regular pay except the pay period plus (PP+).

4. PROCEDURES/INSTRUCTIONS

4.1. Start entitlement

To start the entitlement, an Entitlement Commence (ENC) 229 is to be used, with a rate base 6 and the monthly rate. The system will divide the payment in two and only pay half the amount with the regular pay cheque. The "from date" is always the first 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.

Should you wish to prevent the creation of automated retroactive payments, the X should be included in the H/D/W indicator. If you wish to pay retroactivity, please include "N" in the H/D/W indicator and the number of monthly payments owing. The following provides examples of the above mentioned:

Example 1:

An employee is Taken on Strength (TOS) in PP 22/99 as a full time CS-2 effective October 12. CS-2 monthly entitlement is $176.00. The TA entitlement will be created as follows:

ENC 229

From: 01 10 99 1

To: (blank)

Rate Base: 6

Rate: $176.00

H/D/W Indicator: N

Number H/D/W: .5

Since you are working in PP 22/99 (cycle 2 October) and this employee is entitled to payment for the full month, inserting the .5 in the H/D/W number, will create a payment of $88.00 for the period of October 1 to October 15.

Example 2:

If the employee was TOS effective October 18, and the TOS is done in PP 23/99 (cycle 1 November) the TA entitlement would be created as follows:

ENC 229

From: 01 10 99 1

To: (blank)

Rate Base: 6

Rate: $176.00

H/D/W Indicator: N

Number H/D/W: .5

This will create a retroactive payment of $176.00 for the month of October.

Please note that transactions using entitlement code 229 will now be accepted in all pay cycles.

4.2. Acting Pay

If the employee meets the requirement for acting pay at a higher level within the same group, the TA must be prorated at each level. To amend the entitlement, an Entitlement Amend (ENA) 229 is to be used. In order for the salary service history to be updated correctly, it is necessary to use rate base 6.

If the acting is for a closed period in the past the ENA 229 is reported with a rate base 6 and the monthly rate reflects the total amount owing for the month. The from rate is the amount that was received.

If the employee's substantive position is not eligible for the TA but the acting is in one of the affected groups and the employee meets the 10-day rule, then the entitlement is for the entire month.

Example 1:

Acting pay at the CS-5 level for a CS-4 for the period of September 13 to 17 (5 working days) reported in PP21/99 (cycle 1 October). The employee received $248.00 for the month of September as a CS-4. CS-5 monthly entitlement is $285.00

September = 22 days
CS-4 = Sept. 01 to 12 and Sept. 18 to 30 = 17 days
$248.00 ÷ 22 days = $11.27 x 17 days = $191.59
CS-5 = Sept. 13 to 17 = 5 days
$285.00 ÷ 22 days = $12.95 x 5 days = $64.75
$191.59 + $ 64.75 = $256.34

The correct entitlement for the month is $256.34. The transaction should be input as follows:

ENC 229

From: 01 10 99 1

To: 30 09 99 2

Rate Base: 6

Rate: 256.41 Fr. Rate: 248.00

H/D/W Indicator: N

No. H/D/W: 1.

Example 2:

Acting Pay at the CS-3 level for a CS-1 for period from August 16, 1999 to November 5, 1999 reported PP19/99 (cycle 1 September). The CS-1 entitlement is $139.00 per month. CS-3 entitlement is $212.00 per month.

August = 22 days
CS-1 = August 1 to 15 = 10 days
$139.00 ÷ 22 days = $6.32 x 10 days = $63.20
CS-3 = August 16 to 31 = 12 days
$212.00 ÷ 22 days = $9.64 x 12 days = $115.68
$63.20 + $115.68 = $178.88

The correct entitlement for August is $178.82, for September and October the entitlement is $212.00 for each month. The entitlement amend for August will be for a closed period, for September it will be for an open period. Transactions input in PP19/99:

ENC 229

From: 01 08 99 1

To: 31 08 99 2

Rate Base: 6

Rate: 178.88 Fr. Rate: 139.00

H/D/W Indicator: N

No. H/D/W: 1.

ENC 229

From: 01 09 99 1

To: (blank)

Rate Base: 6

Rate: 212.00

The following indicates to process to determine the employee's entitlement for the month of November:

November = 22 days
CS-3 = November 1 to 5 = 5 days
$212.00 ÷ 22 days = $9.64 x 5 days = $48.20
CS-1 = November 6 to 30 = 17 days
$139.00 ÷ 22 days = $6.32 x 17 days = $107.44
$48.20 + $107.44 = $155.64

ENC 229

From: 01 08 99 1

To: 31 08 99 2

 

Rate Base: 6

Rate: 178.88 Fr. Rate: 139.00

 

H/D/W Indicator: N

No. H/D/W: 1.

ENC 229

From: 01 09 99 1

To: (blank)

 

Rate Base: 6

Rate: 212.00

This entitlement recovery will collect the overpayment of the TA for the acting period.

ENC 229

From: 01 12 99 1

To: (blank)

Rate Base: 6

Rate: $139.00

In PP25/99 (cycle 1 December) the entitlement amend for November will be reported as a closed period and the entitlement amend for December will be for an open period.

Example 3:

Employee's substantive position is a PM . Documentation received August 20 appointing the employee to an acting position (acting more than 4 months) OR promoted effective September 13, 1999 to a CS. That employee would be eligible for all of September and therefore an ENC 229 from September 1, 1999, open period would be done. If this entitlement is created in PP19/99 (cycle 1 September) then this is all that is necessary. If this entitlement is created after PP19/99, then depending on the amount of retroactivity, H/D/W indicator would be N and the amount of missed payments is inserted (.5, 1.0, 1.5, 2, etc.) in number of H/D/W.

PP 19/99
ENC 229

From: 01 09 99 1

Rate Base 6 Rate: 212.00

PP 19/99
ENC 229

From: 01 09 99 1

Rate Base 6 Rate: 212.00

H/D/W Ind.: N

No. H/D/W: .5

4.3. Promotion

All employees promoted to a CS position shall be entitled to the TA payment if he meets the 10-day eligibility rule in the CS classification.

From outside the CS group

An employee is promoted from a CR -5 to a CS-1 on September 20. There is no entitlement for TA because the employee did not meet the 10-day eligibility rule as a CS for the month of September.

From within the CS group

An employee is promoted from a CS-1 to a CS-2 on September 20. The employee received 13 days pay as a CS-1 and 9 days pay as a CS-2. The employee met the 10-day eligibility rule for September as a CS. He would receive the full CS-2 TA for the month of September.

4.4. Re-Taken on Strength (RE-TOS)

When an employee is RE-TOS during the month an entitlement adjustment (EAJ) must be done to create a payment for the amount due. If the RE-TOS is created for the second regular pay of the month, then an EAJ 229, with the "from" date of the 1st and a "to" date of the 15th is created, with a rate base 6, monthly amount, H/D/W indicator "N" and number of H/D/W of .5. If the transaction is created for the first regular pay of the following month, then an EAJ 229, with the "from" date of the 1st of the previous month and a "to" date of the last day of the previous month is created, with a rate base 6, monthly amount, H/D/W indicator "N" and number of H/D/W of 1.

Example 1:

CS-1 employee that currently has ENC 229 on the master is RE-TOS in PP25/99 with an effective date of November 15. An EAJ must be done to create a payment for November.

EAJ 229

From: 01 11 99 1

To: 30 11 99 2

 

Rate Base: 6

Rate: $ 139.00

 

H/D/W Ind.: N

Number H/D/W: .1

Example 2:

CS-1 employee that currently has ENC 229 on the master is RE-TOS in PP24/99 with an effective date of November 8. An EAJ must be done to create a payment for the cycle 1 November regular pay.

EAJ 229

From: 01 11 99 1

To: 15 11 99 2

Rate Base: 6

Rate: $ 139.00

H/D/W Ind.: N

Number H/D/W: .5

4.5. Entitlement Stop

If an employee is no longer eligible to the entitlement then it must be stopped effective the first of the month.

Example 1:

CS-1 promoted to AS-3 effective October 4, 1999 in PP21/99. Employee does not have 10-day as a CS in the month of October therefore the TA must be stopped effective October 1, 1999.

ENS 229

From: 01 10 99 1

Rate: 176.00

Example 2:

CS-1 promoted to AS-3 effective October 4, 1999 in PP22/99. Employee does not have 10 days as a CS in the month of October therefore the TA must be stopped effective October 1, 1999. Also the payment that was received in cycle 1 October must be recovered.

ENS 229

From: 01 10 99 1

Rate: 176.00

ENR 229

From: 01 10 99 1

To: 15 10 99 2

Rate Base: 0

Rate: 88.00

4.6. Overpayment

If there is an overpayment of the entitlement because the employee is no longer eligible, a recovery action must be taken. Except in acting situations, the employee will either be eligible for the entire month or not eligible at all. When an employee is no longer eligible, the entitlement must be recovered for the whole month. If the employee has received a partial payment for the month, a partial recovery must be taken.

Example 1:

A CS-2 employee is promoted out of the CS Group effective October 12, 1999. The promotion is entered in cycle 2 October therefore the payment received in cycle 1 October must be recovered.

ENS 229

From: 01 10 99 1

Rate: 176.00

ENR 229

From: 01 10 99 1

To: 31 10 99 2

 

Rate Base: 0

Rate: 88.00

Example 2:

If the employee had been promoted on October 14, 1999 with the promotion entered in cycle 1 November the transaction would have been as follows:

ENS 229

From: 01 10 99 1

Rate: 176.00

ENR 229

From: 01 10 99 1

To: 31 10 99 2

Rate Base: 0

Rate: 176.00

If there is an overpayment of the entitlement because the employee was acting in a position and reverted to the substantive lower position, refer to (Acting Pay) of this Directive, example 2 in Section 4.2.

4.7. Leave with income averaging (LIA)

Leave with income averaging for TA will be treated in a similar manner as the bilingual bonus identified in Compensation Directive 1995-047 dated October 31, 1995, Appendix "VIII-B-3". Since the TA is a monthly deduction, it must be input with a rate base 6 and terminated on April 30, 2000.

Example:

The employee is on LIA for 1 year from November 1, 1999 to October 31, 2000. The employee is entitled to a TA of $139.00 per month. There are 6 months of payments from November 1, 1999 to April 30, 2000. The employee is not eligible for TA for the months of November and December because of leave. Therefore the allowance must be amended as follows :

$139.00 x 6 months = $834.00 (November to April)
$139.00 x 2 months = $278.00 (November and December)
$834.00 - $278.00 = $556.00 total TA due divided by 6 = $92.67 per month :

ENA 229

From: 01 11 99 1

To: 30 04 00 2

Rate Base: 0

Rate: 139.00 From Rate: 92.67

Note: Field 70 must be completed

4.8. Irregularities

4.8.1. Part-time employees

Employees with an assigned work week of less than 15 hours were incorrectly excluded from the automated TA payments. The 10-day rule specifies that in order for a part-time employee to be eligible for the TA, they must be paid for twice their assigned work week in a month. If a part-time employee meets that rule for the month, they are to receive a prorated payment based on their assigned work week and departments must enter the transactions.

Assigned work week X full time payment amount standard work week

4.8.2. TA for PI Group and the TI Group

It must be noted that, unless Treasury Board advises that this entitlement is to continue, this entitlement must be stopped in Pay Period 01, 2000 effective January 1, 2000 for employees in the PI and TI Groups.

4.8.3. Employees that are unrepresented due to their tenure

Employees that were identified in the system as Employee Type Code K, L, P, R, E, F or M (in Zone 31) were excluded from receiving payments. This was done in order to permit departments to confirm their eligibility prior to making the payments. If these employees qualify for the payments, departments are to make the retroactive payments and start the entitlement.

4.8.4. Incorrect retroactive payments

Employees that were part-time and T- SOS on the payment date received a retroactive TA payment for the entire period as a full time employee. Please ensure that if these employees received that cheque, that recoveries are now being taken or will be taken when the employee returns to work.

5. INQUIRIES

5.1 Any request for information regarding the foregoing should be addressed to your Public Works and Government Services Canada Compensation Services Office.

Original Signed by
B. Bartley

B. Bartley
A/Director General
Compensation Sector
Government Operational Service

Reference: ENT 229