Performance Pay MD DS

To: Jim Judd/DND, David J. Nicholson/DVA,
Ole M. Ingstrup/PEN, David A. Dodge/SHC

Dear:

I am pleased to advise you that the Treasury Board has approved the continuation of performance pay in respect of the 1997-98 fiscal year for excluded employees in the Medicine Group, Medical Officer and Medical Specialist sub-groups (MD-MOF-4 and 5, and MD-MSP-3) and the Defence Scientific Service Group (DS-7A, -7B, and 8), effective April 1, 1998. These adjustments represent no increase in the existing ranges and no increase in total anticipated compensation costs.

Performance pay will be applied within the existing salary ranges and subject to the Executive Group salary administration plan as amended and announced in the letter from the Chief Human Resources Officer dated April 8, 1998 addressed to Heads of Human Resources. These changes limit performance pay budgets to 4% of your departmental payroll for these two groups as of March 31, 1998 and restrict performance awards, that is salary increases and lump sum payments combined, to a maximum of 10% of the individual's salary.

The attached policy framework provides significant flexibility to recognize performance and apply performance pay. You are encouraged to use this flexibility to acknowledge the efforts and accomplishments of your employees. As well, the policy continues to require that deputy heads apply rigorous standards of assessment in identifying those members of their management team whose performance stands out above the norm.

A copy of this framework has also been sent to your Director of Human Resources. I am attaching a copy of the French version of this letter for the use of your French-speaking officers.

Enclosures