ARCHIVED CD 2008-011

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May 7, 2008

SUBJECT: New Classification and Bargaining Unit Designator (BUD) Code -- Audit Committee Members (AM)
Employer -- Treasury Board

1. PURPOSE

1.1 The purpose of this directive is to provide information regarding a new classification that has been created in the Regional Pay System (RPS) for the Audit Committee Members (AM) appointed by the Treasury Board (TB).

2. BACKGROUND

2.1 The Federal Accountability Act received Royal Assent on December 12, 2006, and this resulted in amendments to the Financial Administration Act (FAA) which impacted the appointment of audit committee members who do not occupy a position within the federal public administration.

2.2 The Terms and Conditions of Appointment for TB Audit Committee Members came into effect on June 7, 2007.

Additional information is provided in the Directive on Departmental Audit Committees available at the following Treasury Board Secretariat (TBS) Web site address:

Archived [2009-07-01] - Directive on Departmental Audit Committees

2.3 To accommodate the payments to the AMs, the BUD code 70200 has been created in the RPS.

3. POLICY

3.1 Under the Terms and Conditions of Appointment, AMs are retained by means of a TB Appointment Order. Appointees are not considered "employees" for the purposes of the Public Service Labour Relations Act (PSLRA).

3.2 As indicated in Part I, section 1.8, of the Terms and Conditions of Appointment, remuneration is to be paid on a per diem basis in accordance with schedules 1 and 2, unless otherwise stated.

3.3 Appointees are to be paid for the days actually spent performing the AM duties and responsibilities. Appointees are not to be paid in excess of the annual number of days of service established by the Terms and Conditions of Appointment, unless approved in writing by the responsible deputy head.

3.4 As per Part IV of the Terms and Conditions of Appointment, a day is defined as 7.5 hours. If time worked is more or less than a day, the per diem rate is to be prorated unless otherwise stated.

4. PROCEDURES/INSTRUCTIONS

4.1 The TBS will issue an information notice to advise the departments when the time summary form titled "Request for payment to Audit Committee Members" will be made available via the TBS Web Site.

4.2. Data Entry

AMs are to be paid via the RPS on a 7A Pay Cycle. For taken on strength (TOS) purposes, compensation advisors are to calculate the annual salary by converting the per diem amount to an annual rate.

Example (Tier I)

Regular member

Per diem rate of $1,500 X 260.88 days per year = annual salary of $391,320.

Chair

Per diem rate of $1,800 X 260.88 days per year = annual salary of $469,584.

4.3 To input the TOS transaction, the following data should be entered:

• Field 26 - Bargaining Status code "69"
• Field 30 - Authority Code "3"
• Field 31 - Employee Type code "M"
• Field 37 - Death Benefit Eligibility code "2" (Non-participant)
• Field 39 - Pension Type code "59"
• Field 47 - Disability Insurance/Long-term Disability Insusrance (DI/LTD) code "3" (Non-participant)
• Field 65 - Rate Base code "9"

Refer to the Personnel-Pay Input Manual (PPIM) Section 14-8-1 for additional instructions on the pay input requirements.

4.4 The remuneration will be subject to the following mandatory deductions to be withheld at source:

• Federal/Provincial Income Tax
• Employment Insurance (EI) premiums
• Quebec Parental Insurance Plan (QPIP) contributions
• Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions

4.5. PAY OFFICE RESPONSIBILITIES

There are no new responsibilities to be assigned to the pay offices as a result of this new classification. Current pay office procedures remain in effect.

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
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): BUD 70200