ARCHIVED - Policy on Acting Pay for Executives

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Policy on Acting Pay for Executives

Table of Contents

Policy objective

Policy statement

Application

Policy requirements

Exclusions

Appendix A - Pay administration guidelines: Acting pay for executives

1. Policy objective

To compensate executives who are required, for a substantial period of time, to perform all or a significant part of the duties of an executive position which is classified at a higher level in the Executive Group.

2. Policy statement

It is government policy that:

­    Executives at levels EX-1 to EX-3 may be compensated for the increased level of responsibility, when they are asked to perform all or a significant part of the duties of a higher level position on a continuing basis.

­    Acting pay for executives recognises that there is a link between the level of a position, and the level of compensation of the person performing its duties, i.e. an individual asked to perform all or a significant part of the duties of a higher level position is compensated for the additional responsibility.

­    Acting pay will apply after a person has been performing all or a significant part of the duties of a higher level position for three months.

­    Acting pay may only extend beyond 12 months with the prior written approval of the Chief Human Resources Officer (CHRO), Treasury Board of Canada Secretariat (TBS).

3. Application

This policy applies to all departments and other portions of the Public Service listed in Part I, Schedule I of the Public Service Staff Relations Act.

In organisations or those parts of organisations where rotational pools, developmental programs and/or appointment-to-level prevail, deputy heads may elect not to implement this policy on acting pay for executives acting in these environments.

This policy takes effect on April 1, 1998, and is not retroactive beyond that date. People who have been in acting assignments for a period greater than 3 months as of this date may begin to receive acting pay effective April 1, 1998.

4. Policy requirements

(a)    Deputy heads may award acting pay to members of the Executive Group at levels EX-1 to EX-3, when these individuals are asked to perform all or a significant part of the duties of a position classified at a higher executive level, for a period exceeding 3 (three) months.

(b)    After the expiry of the qualifying period (three months) acting pay will become retroactive to the date on which the assignment commenced.

(c)    Acting pay for assuming responsibilities at a higher level will result in a salary increase of at least 5 (five) %.

(d)    Deputy heads must seek prior written approval of the CHRO, TBS if the acting pay situation is to exceed a 12 (twelve) month duration.

(e)    Individuals at the EX-3 level may be awarded acting pay when required to perform the duties of an EX-4 level position, when this requirement extends beyond the period of 3 (three) months.

5. Exclusions

(a)    Executives at the EX-4 and EX-5 level will not be subject to this policy. Acting pay is inconsistent with the Appointment to Level regime being implemented as part of the Collective Management of the Assistant Deputy Ministers (ADMs).

(b)    Executive participants in the Accelerated Executive Development Program (AEXDP) are not eligible for acting pay, as their assignment is undertaken within 'performance against the goals of the developmental program is reflected in their continuing participation in the program (i.e. promotion to the next level at the successful conclusion of each assignment), and through the awarding of "pay at risk".

(c)    Notwithstanding the policy requirements (i.e. three month vestibule) of the policy on Acting Pay for Executives, non-executive employees required to perform the duties of an executive position remain subject to the terms and conditions of their respective collective agreements in terms of the eligibility and qualifying period, and acting pay shall be determined in accordance with Section 46 of the Public Service Terms and Conditions of Employment Regulations.

Questions on the application of this policy may be directed to Executive and Excluded Groups Compensation, Human Resources Management Division, TBS.

Appendix A – Pay administration guidelines:
Acting pay for executives

1. General

When a deputy head requires a member of the Executive (EX) Group whose substantive level is from EX-1 to EX-3 to perform temporarily the duties of a higher classification level in the Executive Group the employee shall be paid acting pay in accordance with these provisions.

The instructions for acting pay that appear in Section 46 of the Public Service Terms and Condition of Employment Regulation, do not apply to members of the Executive Group. However they continue to apply to employees in other occupational groups and levels who temporarily perform the duties of a position in the Executive Group.

2. Qualifying or vestibule period

After an executive has performed higher level executive duties for a minimum period of three (3) months, he is eligible for acting pay at the higher level retroactive to the date the acting assignment commenced.

If an executive performing higher level executive duties is asked to act in a yet higher executive position without resuming the duties of the substantive position, he will be eligible for acting pay after completing a further 3-month qualifying period at the yet higher level. At the end of this 3-month period the acting pay at the yet higher level will be retroactive to the date that the yet higher assignment commenced.

No executive will receive acting pay for any period prior to the coming into effect of the acting pay policy on April 1, 1998.

3. Determination of acting pay rate

3.1 Initial acting assignment

An executive performing higher level executive duties for a temporary period will be paid a rate of pay that is 5% greater than his substantive rate of pay, or at least the minimum of the range of the higher EX level.

3.2 Acting in another, yet higher level

An executive receiving acting pay in a higher level executive position who assumes the duties of a yet higher executive position temporarily without first resuming the duties of the substantive position is eligible for acting pay at the higher level on completion of a new 3-month qualifying period.

The rate of pay for acting in the yet higher executive position will be 5% greater 'substantive rate of pay, or at least the minimum of the range of the yet higher level. The acting pay rate while acting in the yet higher executive position will not be less than the rate of pay the employee was receiving in the initial, lower acting assignment.

If the acting assignment at the yet higher level ceases and the employee resumes temporarily the duties of the original, lower level acting assignment, he will be paid a rate of pay that is not less than the pay rate he was receiving formerly in the original acting assignment.

3.3 Acting where there is non-coincidence of position and employee level

Current staffing authorities allow a deputy head to appoint or deploy an executive to a 'own substantive level. When the deputy head assigns an executive to perform temporarily the duties of a position whose substantive incumbent is classified at a level higher than the level of the position, the rate of pay for the acting executive will be determined on the basis of the level of the position, not of the substantive incumbent. Using the example of an EX-3 occupying an EX-2 position, an EX-1 acting in the position will be paid a rate that is 5% greater than his current base salary, or the minimum of the EX-2 salary range, whichever is greater.

4. Performance pay for Executives on acting assignment

Acting assignments for executives will normally be limited to 12 months. Therefore performance pay for an executive in an acting assignment will be calculated on and applied 'substantive level salary in accordance with the performance pay provisions of the EX Group salary administration plan. The performance assessment should 'success in the higher level duties during the temporary period.

If an executive has been acting for less than a year on the date when performance pay is effective, the performance appraisal and the performance award will relate to the substantive level. The performance award, calculated as a percentage of the 'pay rate in his substantive level, will be applied to his substantive base salary and the acting rate of pay will be recalculated.

Since acting assignments for executives are not expected to last beyond 12 months, the matter of performance pay for that circumstance has not been addressed in these guidelines. Should such a situation arise, departments should consult officials of the Human Resources Branch, Treasury Board of Canada Secretariat (TBS) for direction.

5. "At risk" pay for Executives on acting assignment

Treasury Board Secretariat will introduce a new concept of performance pay, to be implemented gradually with full implementation in the year 2000-2001. Departments will be given instructions for applying "at risk" in each of the transition years when TBS provides guidelines on setting objectives and establishing criteria for making payments under the new "at risk" pay scheme.

6. Salary range revisions for Executives on acting assignment

When EX Group salary ranges are revised upwards from time to time, executives on acting assignments will be entitled to revisions to the salary applicable to the substantive level, to be determined in accordance with the EX Group salary administration plan.

Following adjustments to the pay rate of the substantive level, the acting pay rate will be recalculated from the new base salary.

7. Enquiries

Departments should contact staff of the Executive and Excluded Groups Section, Human Resources Branch, TBS for any questions about the determination of pay rates for executives on acting assignment.