The Public Service's Post-Employment Regime
D. Explanatory grid
The following page contains a grid that shows graphically how the various periods of restriction apply.
The Public Service's post-employment regime
Employees who leave the Public Service are basically free to enter into whatever employment or contractual arrangements they choose, subject to the Conflict of Interest Guidelines. However, the situations below involve either the reimbursement of lumpsum payment, fee reduction, or both.
SITUATION
A person becomes an employee of an organization covered by the Public Sector Compensation Act, Schedule I or II.
EMPLOYEE RECEIVES EMPLOYEE RECEIVES PENSION EMPLOYEE RECEIVES
LUMPSUM PAYMENT BOTH A CASH OUT AND A
(CASH OUT)[1] PENSION
During the "window The individual's pension The combined restrictions
period",[2] pro rata and Early Retirement listed in the two previous
reimbursement or recovery Incentive (ERI) benefits, columns at left apply.
of the cash out. if applicable, are
suspended if the recipient
For example, if you becomes reemployed as a
received 40 weeks of cash contributor under the
out and were reappointed Public Service
22 weeks after Superannuation Act (PSSA).
termination, you would ERI waivers will not be
have to pay back the reinstated when the
remaining 18 weeks.[3] individual subsequently
leaves the Public Service
unless as a result of a
further surplus
declaration.
SITUATION
A person enters into a contract for personal services with an organization covered by the Public Sector Compensation Act, Schedule I or II.
EMPLOYEE RECEIVES EMPLOYEE RECEIVES PENSION EMPLOYEE RECEIVES
LUMPSUM PAYMENT BOTH A CASH OUT AND A
(CASH OUT) PENSION
Contract income is limited Fee reduction for 52 weeks 1. During the "window
to $5,000 during the under the current rules period," fee reduction on
"window period." [4] for noncompetitive a dollar for dollar basis
personal services for contract income
contracts after the exceeding $5,000.
"window period" has
expired. In essence, the 2. After that period, a
contract fee is set so fee reduction applies for
that a former employee's a further 52 weeks under
pension payment plus the the formula in the column
contract fee cannot exceed at left.
his or her former salary.
[1] This excludes severance pay, but includes the separation benefit and any lump-sum payment under the Early Departure Incentive, National Defence Civilian Reduction Program, Executive Employment Transition Policy and the Work Force Adjustment Directive (WFAD). [Return]
[2] The "window period" is the number of weeks covered by the lump-sum portion of the departure incentive and the years and service allowance. [Return]
[3] For those whose lump sum payment was a pay-in-lieu under the WFAD, reimbursement comes into effect only if appointed to an organization within Schedule I, Part I of the Public Service Staff Relations Act [Return]
[4] Any personal services contract that
would allow the recipient to receive more than $5,000 during the
"window period" requires Treasury Board approval. [Return]
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