Pay Equity Lump Sum Payment Procedures for Employment Insurance, Insurance Plans, and Retroactive Salary

Employment Insurance

This bulletin confirms that the pay equity lump sum payment in the amount of $4,000 is not considered earnings for Employment Insurance (EI) benefit purposes.

Consequently, the lump sum payment will have no impact for members receiving EI benefits and Departments are not required to issue Records of Employment for members on leave without pay or terminated.

Insurance Plans

This bulletin confirms that the lump sum payment has no impact on the Disability / Long Term Disability (DI/LTD) insurance plans or the Supplementary Death Benefit Plan (SDB). Since the payment is a one-time lump sum payment, it will not be reflected in the level of coverage for salary-related benefits such as the DI/LTD or SDB insurances.

Retroactive salary

This also confirms that the employer should not issue Records of Employment to former employees due to the signing of collective agreements.

Employees who have received Employment Insurance (EI) benefits during the retroactive period should get in touch with their local Human Resources and Skills Development Canada office with their retroactive pay stub as they may be entitled to a recalculation of their EI rate.

Employees currently receiving EI benefits have to declare the retroactive payment on their weekly reporting card even if it will not be deducted from their benefits.

Departmental Compensation and Labour Relations managers should direct any questions to their appropriate corporate officials who, if need be, can contact the Pay Administration Section.