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DATE: July 10, 2001

TO: Directors of Human Resources

SUBJECT: Performance Pay for Non-Executive Employees Excluded from Collective Bargaining

I am pleased to advise you that, by TB 829060, dated June 7, 2001, the Treasury Board has approved the application of performance pay for fiscal year 2000-2001.

Senior excluded employees in the Administrative Services (AS-7 & AS-8), Financial Administration (FI-4), Information Services (IS-6), Personnel Administration (PE-6), Purchasing and Supply (PG-6), Translation (TR-4 & TR-5), and Welfare Programmes (WP-7) will have their performance pay administered in accordance with the Performance Pay Provisions of the Salary Administration Plan for Certain Non-Management Category Senior Excluded Levels, as amended below.

Employees in the Mediation-Conciliation Officer Sub-Group of the Programme Administration Group (PM-MCO) will have their performance pay administered in accordance with the Performance Pay Provisions of the Salary Administration Plan - Mediation-Conciliation Officer Sub-Group.

Employees in the Career Assignment Program Group (CA) will have their performance pay administered in accordance with the Performance Pay Provisions of the Salary Administration Plan - Career Assignment Program Group. See attached instructions.

Employees in the Medicine Group Medical Officer and Medical Specialist sub-groups (MD-MOF-4 and 5, and MD-MSP-3) will have their performance pay administered in accordance with the Executive Group Salary Administration Plan. The 30 per cent quota for employees rated above "fully satisfactory" has been eliminated. However, it is strongly recommended that the principle be maintained as a guideline. The departmental budget for performance awards for 2000-2001 in these sub-groups will be limited to 4.4 per cent.

Performance review and employee appraisal is in respect of the fiscal year 2000-2001 and any performance payments are associated with that period.

Global performance ratings should be used to assist in the decision process for the determination of individual performance awards.

Performance pay is to be calculated on individual salaries in effect on March31, 2001 and implemented effective April1, 2001.

The following changes have been approved in respect of the Performance Pay Provisions of the Salary Administration Plan for Certain Non-Management Category Senior Excluded Levels:

1. The 30 per cent performance guideline on the number of employees rated superior and outstanding has been eliminated. However, it is strongly recommended that the principle be maintained as a guideline.

2. Performance awards for employees whose salaries are already at the job rate or have just reached the job rate by the application of an in-range increase are authorised for employees whose performance has been assessed as at least fully satisfactory.

3. The introduction of a performance pay budget calculated to be 5percent of your Non-Management Category Senior Excluded Level groups' payroll as at March 31st, 2001.

Departments with fewer than 20 employees in the Non-Management Category Senior Excluded Level groups should consult Annex "A" for the percentage to use when determining the size of their performance pay budgets.

In-range increases up to the job rate, as a percentage of the employee's salary, may be granted for levels of assessed performance as follows:

Outstanding up to 8%
Superior up to 6%
Fully Satisfactory up to 4%
Satisfactory up to 2%

To be eligible for a performance related award an employee must be on strength on both March 31, 2001 and April 1, 2001, except, employees who are on leave without pay. Anyone who has left the Public Service prior to April1,2001 is not entitled to receive any performance awards.

Employees who have been absent on leave without pay for the entire fiscal year 2000-2001 are not eligible for any performance pay award. Their salaries are not to be included in the calculation of the budget.

Employees absent on leave without pay for a part of the fiscal year may be eligible for performance awards if they have been on strength for long enough to permit a meaningful evaluation of performance. Any pay awards granted in these circumstances should be prorated for the time the individual has been on payroll. For budget purposes, the annual salary of these individuals as of March 31, 2001 should be included in budget calculations.

Where performance has been assessed as "unsatisfactory", or where there is no performance rating (i.e., "unable to assess"), the individual should not receive performance pay.

The maximum permissible amount for awards should not be automatically granted. Consideration must be given to factors such as the salary relationship with immediate supervisors or subordinates and the number of consecutive years of performance at fully satisfactory or above.

Where an employee assessed as fully satisfactory or above reaches the job rate through an in-range increase which is less than the amounts permissible under the guidelines, the deputy head may grant a performance award in addition to the in-range increase. The combination of in-range increase and performance award may not exceed 4 per cent of salary for fully satisfactory performance, 6 per cent of salary for superior performance and 8per cent of salary for outstanding performance.

The instructions for the Law Group will be sent separately.

You may contact Daniel Mnard at (613) 946-6184, Larkin Bradbury at (613) 957-2400 or Norris Charles at (613) 952-3292 of Executive and Excluded Groups, if you require further information.

Gary Dingledine
Assistant Secretary
Human Resources Management Division

Attachments


Annex A

5% PERFORMANCE PAY BUDGETS: SMALL DEPARTMENTS

Number of Employees

Performance Budget (%)

1

8,0

2

6,0

3

5,3

4

5,0

5

5,0

6

5,3

7

5,1

8

5,0

9

5,3

10

5,2

11

5,1

12

5,3

13

5,2

14

5,1

15

5,2

16

5,2

17

5,2

18

5,2

19

5,1


Career Assignment Program - Performance Pay Instructions

April 1, 2001 (in respect of 2000/2001 performance cycle)

The application of performance pay for the Career Assignment Programme (CA) group for 2000/2001 remains unchanged from last year's application. Highlights of the policy are provided below to assist in the application of performance pay for this cycle. Full details of performance pay administration are found in the Career Assignment Programme Group Salary Administration Plan.

Section 8 Performance Pay Administration

Lump Sum awards are effective April 1, 2001, calculated on the rate of pay effective March 31, 2001. CA performance pay takes the form of lump sum awards and does not affect rates of pay. The rate of pay for a CA employee will only change on promotion from a CA-01 to a CA-02 position or when an economic increase is provided. Lump sum awards should be rounded to the nearest dollar.

Appointments to the CA Group may occur at any time in the year, therefore, deputy heads or their delegates may apply pro-rated performance awards. In the employee's first year of the program, a pro-rated award may be provided if the employee has been in the CA group for a minimum of 3 months.

If multiple assignments exist in a performance assessment cycle, departments should provide a global assessment that gives consideration to performance & progress against the personalized learning plan (PLP) in all assignments in a given cycle.

An employee on second language training for 6 months or more during any performance review period may will be rated "fully satisfactory" for the period of second language training.

CA employees who are on leave without pay on March 31 & April 1 are eligible to receive performance pay in respect of the period of the performance cycle that they worked, given that a sufficient period of employment exists to conduct an adequate assessment of performance. The award should be prorated to reflect the portion of the year that the employee worked. Employees in part-time positions who otherwise meet the eligibility requirements should also receive a prorated award.

Departmental budget limits remain in effect and range from 5 - 10% of the CA payroll depending on the size of the CA population specific to each department.

The Graduation Award is provided in recognition of successful completion of the Career Assignment Program as determined in accordance with the CAP Policy. The award is provided at the time of the employee's exit from the program and the CA group. The award is paid as a lump sum which is not considered salary for the purpose of calculation of salary on appointment to a subsequent position. The value of the award is $3,200.


Performance Pay Instructions - Career Assignment Program Group (CA) - April 1, 2001

Examples - Calculation of Performance Awards

Calculation of Performance Award Where Multiple Assignments are present in a Performance Review Period.

Example One

An employee in a CA-01 position completes a 1.5-month assignment in "work group 1", a 4-month assignment in "work group 2"while the manager is on self-funded leave and a 7.5-month assignment in "work group 3".

The employee is on strength occupying a CA position on March 31, 2001, and April 1, 2001.

The third assignment is of the longest duration. The overall evaluation will be based primarily on the performance rating received for assignment #3 with additional consideration of performance in the 2 previous other assignments in the performance cycle.

The performance evaluation of assignment #3 is "Fully Satisfactory".

The global assessment with consideration of the previous other assignments is "Fully Satisfactory".

The percentage awarded is 5%.

The rate of pay on March 31, 2001 is $63,600.

The award is $3,180 and is paid as a lump sum.

Example Two

An employee in a CA-01 position completes 3 assignments, each of 4 months duration. The assignments are in distinct work groups and the employee is performing a distinct function in each assignment.

The employee is on strength and occupying a CA position on March 31, 2001 and April1, 2001.

No one assignment is of greater length than the others. A global assessment considering all assignments is required.

The performance evaluation of assignment #1 is "Fully Satisfactory".

The performance evaluation of assignment #2 is "Outstanding".

The performance evaluation of assignment #3 is "Fully Satisfactory".

The global performance evaluation rating is determined to be "Superior".

The percentage awarded is 6.5%.

The rate of pay on March 31, 2001 is $70,030.

The award is $4,552 and is paid as a lump sum.


Calculation of Performance Award When Promotion to CA-02 level occurs during Performance Review Period + Successfully Completes the CA Program.

Example One

A CA-01 is receiving an annual salary of $66,700. They are promoted to a CA-02 position effective June 30, 2000. The calculated new rate is $69,978 (increase $66,700 by 4% of CA-02 maximum: $81,957 x 4% = $ 3,278). The rate after rounding up to the next highest $100 is $70,000 effective June 30, 2000.

The CA-02 assignment is of longer duration (9 months) and will be the primary consideration used to determine the performance award.

The performance rating for the CA-02 assignment is "Fully Satisfactory"

The global assessment with consideration of the previous assignment is "Fully Satisfactory."

The percentage awarded is 6%.

The rate of pay on March 31, 2001 is $70,000.

The award is $4,200 and is paid as a lump sum.

The employee is deployed to a subsequent position on August 30, 2001.

If the Deputy Head deems that the employee has successfully completed the CA program, the Graduation Award is provided.

The value of the Graduation Award is $3,200 and is paid as a lump sum award.

Example Two

A CA-01 is receiving an annual salary of $57,421. They are promoted to a CA-02 position effective January 15, 2001. The calculated new rate ($57,421 + $3,278 = $60,699) is below the minimum CA-02 rate. The rate on appointment to the CA-02 position is the minimum rate of $67,390 (no rounding applied).

The CA-01 assignment is of longer duration (9.5 months) and will be the primary consideration used to determine the performance award.

The performance rating for the CA-01 assignment is "Outstanding"

The global assessment with consideration of the previous both assignments is "Outstanding"

The rate of pay on March 31, 2001 is $67,390.

The percentage awarded is 8.5%.

The award is $5,728 and is paid as a lump sum.

Qualifying Period

An employeeCA-02 is appointed from another group to a CA-02 position in the program on January 31, 2001. They are on strength March 31, 2001, and April 1, 2001. The rate of pay on March 31, 2001 is $68,500.

An employee must be in the CA program for a minimum of 3 months to be eligible for performance pay. T his employee is notdoes no eligible for performance pay.

Pro-Rated Awards

Example One

A CA-01 is appointed to a position in the program on August July 1, 2000.

They have been in the position for 9 months.

Their salary on March 31, 2001 is $57,600.

Their performance evaluation is "Fully Satisfactory".

The percentage awarded is 4.5%.

The value of the award for a full year is $2,592. This amount pro-rated by at 75% (9 of 12 months is three-quarters of the year) is $1,944 and is paid as a lump sum.

Example Two

A CA-02 is on leave without pay on March 31, 2001 and April 1, 2001.

The leave without pay commenced on October 1, 2000 and the employee is scheduled to return to work on May 1, 2001.

The employee received a rating of "Fully Satisfactory" for the time in the position (April 1 to September 30 - 6 months).

A prorated lump sum may be provided.

The percentage awarded is 6%.

The rate of pay that would have been effective on December 31, 2000, had the employee been at work was $72,350.

The full value of the award is $4,341.

The pro-rated value of the award (half of the year) is $2,171.

Departmental Reporting Format

Departments are to provide reports on their application of the plan to the Human Resources Development and Renewal, Strategic Planning and Analysis Division, Human Resources Branch, Treasury Board of Canada Secretariat. The reports should be on a floppy disk in Excel or ASCII format, with file structure and contents as shown below.

Field Name

Contents

Example

DEPT

Department

ABC

PRI

PRI

12345678

NAME

Family Name

CAPPER

INITIAL

Initial of first name

A

GRP_LVL

Group and level, e.g. CA-01

CA01

MAR_SAL

Employee's March31st salary

$62,200

PERF_RAT

Performance rating:

Outstanding = OUT
Superior = SUP
Fully satisfactory = FS
Satisfactory = SAT
Unsatisfactory = UNS
Unable to assess = UTA

SUP

PERF_P

Performance award as a percentage of March31st salary

7%

PERF_D

Performance award in dollars

$4,354

Departments are required to report the results of performance pay application for the CA group to Treasury Board Secretariat by July 30, 2001.


PERFORMANCE PAY 2000-2001

MD-MOF-4 and 5, MD-MSP-3

NOTE

The following performance pay provisions apply to persons classified as and holding positions in occupational groups paid under the provisions of the Executive Group Salary Administration Plan (i.e. MD-MOF-4 and 5, MD-MSP-3) effective April1,2001.

Application

Performance review and employee appraisal is in respect of the fiscal year 2000-2001 and any performance payments are associated with that period.

Global performance ratings should be used to assist in the decision process for the determination of individual awards.

Performance Pay Plan - Main Features

Except for changes mentioned, the Performance Pay provisions of the Executive Group Salary Administration Plan (Section 6) continue to apply.

The Departmental performance pay budget in respect of the 2000-2001 fiscal year is limited to 4.4 per cent of the departmental group payroll as at March31, 2001. Only members of the group on strength March 31, 2001 and April 1, 2001, except, employees who are on leave without pay are eligible for the purposes of this exercise.

Departments with fewer than 20 members in the affected groups should consult Annex "B" for the percentage to be used when determining the size of their performance pay budget.

Performance awards are limited to a maximum of 10 per cent of an individual's salary (including a combination of in-range salary increase and lump sum payments). Performance must be at least fully satisfactory to be eligible for any salary increase or lump sum award.

Performance awards for those paid below the job rate are to be applied as base salary increases within the current salary ranges. When the calculation of a performance award results in a salary that would exceed the current job rate, the difference is to be paid as a one-time lump sum.

When performance has been evaluated as "less than "fully satisfactory" or if there is no performance rating (i.e. "unable to assess"), the individual is not eligible for any performance award, either as a base salary increase within the range or as a lump sum.

Performance awards for the 2000-2001 fiscal year are to be calculated on the individual salaries in effect on

March 31, 2001 and are to be implemented effective April 1, 2001.

Employees who have been absent on leave without pay for the full fiscal year and have not returned to work by March 31, 2001 are not eligible for any performance increase. They are not to be included in the calculation of the budget.

Employees who have been on leave without pay for a part of the fiscal year may be eligible for a performance increase if they have been on strength for long enough to permit a meaningful evaluation of performance. Any performance pay should be prorated for the time they have been back on payroll.

Performance awards for those whose salary is already at the job rate are paid as a one-time lump sum. These lump sums are to be treated as pensionable income for the 2000-2001 fiscal year.