Instructions for the administration of performance awards for non-executives acting in executive positions

The following four (4) situations are addressed in the section:

Non-executive subject to performance pay in the substantive position when

  A) The substantive salary is not at the salary maximum of the substantive position

  B) The substantive salary is at the salary maximum of the substantive position

Non-executive not subject to performance pay in the substantive position when

  C) The substantive salary is not at the salary maximum of the substantive position

  D) The substantive salary is at the salary maximum of the substantive position

A non-executive subject to performance pay in the substantive position

  A) The substantive salary is not at the salary maximum of the substantive position

Ongoing commitments

The percentage associated with the rating for the achievement of ongoing commitments is translated into a rating and performance pay percentage appropriate to the substantive group and level, based on the substantive position’s performance pay plan. For example, an assessment of Level 3 may translate into an assessment of Fully Satisfactory.

The substantive performance pay percentage is applied to the salary of the substantive position to determine a new substantive salary.

The acting rate of pay is recalculated based on this new substantive salary and the employee receives this salary for the period he/she continues to act.

If the application above generates a lump sum payment under the substantive position performance pay plan, this lump sum is not paid out, but its value is recorded for future use when the acting assignment ends until it is used in the section on Lump sums at the end of acting assignments, below.

If the recalculation of the substantive salary does not result in a revised acting salary, the acting rate of pay is recalculated based on the original percentage award for the achievement of ongoing commitments as if the individual were an EX, and this percentage is applied to the old acting salary to determine what the new acting salary will be for the period the employee continues to act.

Key commitments

If the performance rating for the achievement of Key Commitments is Level 2 or better, the employee is eligible for a lump sum performance award in relation to the achievement of Key Commitments during the acting assignment. The lump sum performance award is based on the employee’s acting salary, prior to the application of any increase to the substantive base salary resulting from the achievement of ongoing commitments.

  B) The substantive salary is at the salary maximum of the substantive position

Ongoing commitments

The percentage associated with the rating for the achievement of ongoing commitments is translated into a rating and performance pay percentage appropriate to the substantive group and level, based on the substantive position’s performance pay plan. For example, an assessment of Level 3 may translate into assessment of Fully Satisfactory.

The substantive performance pay percentage will generate a lump sum payment under the substantive position performance pay plan. This lump sum is not paid out, but its value is recorded for future use when the acting assignment ends, until it is used in the section on Lump sums at the end of acting assignments, below.

The acting rate of pay is recalculated based on the original percentage award for the achievement of ongoing commitments as if the individual were an EX, and this percentage is applied to the old acting salary to determine what the new acting salary will be for the period the employee continues to act.

Key commitments

If the performance rating for the achievement of Key Commitments is Level 2 or better, the employee is eligible for a lump sum performance award in relation to the achievement of Key Commitments during the acting assignment. The lump sum performance award is based on the employee’s acting salary, prior to the application of any increase to the substantive base salary resulting from the achievement of ongoing commitments.

Lump sums at the end of acting assignments

At the end of the acting assignment, it will be necessary to determine if any lump sum amounts are owed to the employee (this is why we keep track of the lump sum that would have been paid under the substantive performance pay plan). Determine what amount the revised executive position acting salary generated for the period the employee continued to act, e.g. a $4,000 annual salary increase will generate $1,000 of income if the employee only continued to act for 3 additional months, e.g. April – June. To determine whether a lump sum payment is due to the employee upon the termination of the acting, take the lump sum payment that would have been generated in the substantive performance pay plan and subtract the sum of money the new acting salary generated plus the lump sum awarded under the PMP. This determines whether, on termination of the acting, the employee is owed a lump sum amount. For example:

Lump sum which would have been payable in the substantive position performance pay plan = $3,500

Revised acting salary generated $4,000 annually, for 3 months = $1,000

PMP lump sum award paid = $ 2,000

On termination of acting, employee receives $3,500 – ($1,000 + $2,000) = $ 500

A non-executive not subject to performance pay in the substantive position

  C) The substantive salary is not at the salary maximum of the substantive position

Ongoing commitments

No in-range movement is applied on April 1st. Rather, the substantive salary is revised on the employee’s substantive position increment date.

The acting salary is then recalculated based on the new substantive salary, as of the employee’s substantive position increment date.

If the recalculation of the substantive salary (above) does not result in a revised acting salary, then the percentage award for the achievement of ongoing commitments is based on and applied to the acting salary to determine the new acting salary, as of the employee’s substantive position increment date.

Key commitments

The lump sum performance award is based on the employee's acting salary prior to the application of any increase to the substantive base salary resulting from the achievement of ongoing commitments.

  D) The substantive salary is at the salary maximum of the substantive position

Ongoing commitments

The percentage award for the achievement of ongoing commitments is based on and applied to the acting salary to determine the new acting salary as of April 1st.

Key commitments

The lump sum performance award is based on the employee’s acting salary prior to the application of any increase to the substantive base salary resulting from the achievement of ongoing commitments.