ARCHIVED CD 2007-005

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February 5, 2007 (Revised March 27, 2007)

SUBJECT: Financial Management (FI) Group -- Chief Financial Officer (CFO) Model Transitional Allowance

1. PURPOSE

1.1 The purpose of this directive is to provide information regarding the Chief Financial Officer (CFO) Transitional Allowance for certain employees in the Financial Management (FI) Group, as identified in Appendix "B", in the memorandum of understanding between Treasury Board and the Association of Canadian Financial Officers in respect to the FI group Collective Agreement signed on December 22, 2006.

This directive is also to inform compensation advisors that the title of entitlement code 229, which will be used to pay this allowance, has been changed to "Monthly Terminable Allowance or Chief Financial Officer Transitional Allowance" (shown as " Termnbl or Tran All " in the Regional Pay System).

2. BACKGROUND

2.1 In order to compensate for specific responsibilities associated with the implementation of the CFO Model during the period of transition, the employer will provide a CFO Transitional Allowance, payable to all employees occupying a position at the FI-01 through FI-04 levels who have reached the maximum rate of pay for their level.

3. POLICY

3.1 The Public Service Labour Relations Act (PSLRA) requires that each employee receives all pay adjustments within 90 calendar days of the signing of the collective agreement. Consequently, as this allowance forms part of the collective agreement, it must be paid within the 90-day implementation period which expires on March 22, 2007.

3.2 The CFO Transitional Allowance is effective from November 7, 2005 to November 6, 2007. This allowance is to be paid to employees who are at the maximum of the FI-01 through FI-04 levels, at the rate of 2% of the maximum pay rate for the FI-01 and FI-02, 3% for the FI-03 and 4% for the FI-04.

3.3 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. The employee must also have received at least 10 days pay in the calendar month in order to be eligible for the allowance for the full month. Because of the 10-day eligibility rule, the CFO Transitional Allowance will be paid through the Regional Pay System (RPS) as a monthly allowance.

3.4 The amount of the CFO Transitional Allowance payable is the amount specified for the level prescribed in the certificate of appointment of the employee's substantive position.

3.5 When an employee is required by the employer to perform the duties of a higher classification level within the FI bargaining unit, and performs these duties at the maximum rate of pay, the CFO Transitional Allowance payable shall be proportionate to the time at each level.

3.6 Part-time employees shall be entitled to the allowance on a prorated basis.

3.7 The CFO Transitional Allowance does not form part of salary and is not to be used in calculating the 4% vacation pay or the premium pay in lieu of statutory holidays for part-time employees.

4. PROCEDURES/INSTRUCTIONS

4.1 Entitlement code 229 will be used for the purpose of making the CFO Transitional Allowance payments. For this reason, the title of entitlement code 229 has been changed to " Termnbl or Tran All ".

4.2 The CFO Transitional Allowance shall be paid in accordance with the following rates:

Effective Date	Level	Maximum Rate	Monthly Allowance Amount
November 7, 2005	FI-01	2% of $60,269	$100.45
November 7, 2005	FI-02	2% of $70,945	$118.24
November 7, 2005	FI-03	3% of $85,307	$213.27
November 7, 2005	FI-04	4 % of $95,410	$318.03

Effective Date	Level	Maximum Rate	Monthly Allowance Amount
November 7, 2006	FI-01	2% of $61,776	$102.96
November 7, 2006	FI-02	2% of $72,719	$121.20
November 7, 2006	FI-03	3% of $87,440	$218.60
November 7, 2006	FI-04	4% of $97,795	$325.98

4.3. Input Instructions

To start the entitlement, an Entitlement Commence (ENC - PAC 18C) 229 transaction is to be used, with a rate base "6" and the monthly rate. The system will divide the monthly payment in two equal amounts and pay one amount with each regular biweekly pay (excluding pay period plus). 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.

To ensure that the salary/service history (SSH) and the Contributory System reflect 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 Pay Accounts

The following demonstrates the data input for a full-time FI-01 employee who has reached the maximum pay scale for his group before November 2005, has met the 10-day eligibility rule for each month and is paid on a 7C cycle.

PAC	Effective From	Effective To	Rate Base	Rate Amount	Field 67	Field 68	From Rate (Field 69)
18C 229	01 11 05 1	30 11 05 2	6	100.45	N	1.00
18C 229	01 12 05 1	31 12 05 2	6	100.45	X
71 229 (EAJ)	01 12 05 1	28 12 05 2	0	91.32 ($100.45 ÷ 22 X 20 days = $91.32)
71 229 (EAJ)	29 12 05 1	31 12 05 2	0	9.13 ($100.45 ÷ 22 X 2 days = $9.13)
18C 229	01 01 06 1	30 11 06 2	6	100.45	N	11.00
Second Update
| 18A 229	01 11 06 1	30 11 06 2	6	102.96	N	1.00	100.45
18C 229	01 12 06 1	31 12 06 2	6	102.96	X
71 229 (EAJ)	01 12 06 1	27 12 06 2	0	93.15 ($102.96 ÷ 21 X 19 days = $93.15)
71 229 (EAJ)	28 12 06 1	31 12 06 2	0	9.81 ($102.96 ÷ 21 X 2 days = $9.81)
18C 229	01 01 07 1	open	6	102.96	N	(number of months up to the current pay period)

7A/B Pay Accounts

The following demonstrates the data input for a full-time FI-01 employee who has reached the maximum pay scale for his group before November 2005, has met the 10-day eligibility rule for each month and is paid on a 7A/B cycle.

PAC	Effective From	Effective To	Rate Base	Rate Amount	Field 67	Field 68	From Rate (Field 69)
18C 229	01 11 05 1	30 11 05 2	6	100.45	N	1.00
18C 229	01 12 05 1	31 12 05 2	6	100.45	X
71 229 (EAJ)	01 12 05 1	14 12 05 2	0	45.66 ($100.45 ÷ 22 X 10 days = $45.66)
71 229 (EAJ)	15 12 05 1	31 12 05 2	0	54.79 ($100.45 ÷ 22 X 12 days = $54.79)
18C 229	01 01 06 1	30 11 06 2	6	100.45	N	11.00
Second Update
| 18A 229	01 11 06 1	30 11 06 2	6	102.96	N	1.00	100.45
18C 229	01 12 06 1	31 12 06 2	6	102.96	X
71 229 (EAJ)	01 12 06 1	13 12 06 2	0	44.13 ($102.96 ÷ 21 X 9 days = $44.13)
71 229 (EAJ)	14 12 06 1	31 12 06 2	0	58.83 ($102.96 ÷ 21 X 12 days = $58.83)
18C 229	01 01 07 1	open	6	102.96	N	(number of months up to the current pay period)

NOTE 1: 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 open 18C 229 transaction for the ongoing entitlement.

| NOTE 2: An employee, who meets the 10-day eligibility rule during the month of November, will be entitled to the CFO Transitional Allowance at the higher rate for the full month.

4.4 Entitlement code 229 is subject to deductions of income tax, Canada Pension Plan (CPP), Quebec Pension Plan (QPP), Employment Insurance (EI), Quebec Parental Insurance Plan (QPIP), Disability Insurance (DI), Long-term Disability (LTD) Insurance, Public Service Pension Plan (PSPP), Supplementary Death Benefit (SDB) and Public Service Management Insurance Plan (PSMIP).

4.5 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 and who meet the 10-day eligibility rule for the month are entitled to receive the CFO Transitional Allowance payment for the full month.

4.6. Acting Pay

If an employee's substantive position, within the FI group, is at the maximum rate of pay for his level and he is required to perform the duties at a higher classification level within the FI group for which the rate of pay is not at the maximum pay scale, the CFO Transitional Allowance will cease on the first of the month in which the employee does not meet the 10-day eligibility rule in his substantive position. This same rule applies if the employee is required to perform the duties at a higher classification level in a group other than the FI group.

An employee whose substantive position is not in the FI group and is required to perform the duties at a higher classification level within the FI group and is paid at the maximum pay rate in the FI group, will be entitled to receive the CFO Transitional Allowance for the full month provided he meets the 10-day eligibility rule as an acting FI for the month. However, if the employee is not at the maximum pay rate in the FI group, he will not be entitled to the CFO Transitional Allowance.

4.7. Part-time

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 a part-time employee to be eligible for the CFO Transitional Allowance, he must be paid for twice his assigned work week in a month. If a part-time employee meets these rules for the month, he is to receive a prorated payment based on his 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

5. INQUIRIES

5.1 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
B. Fortin

Brigitte Fortin
Acting Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): ENT 229