Download performance pay 2000-2001

Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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 March 31, 2001 and
implemented effective April 1, 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:
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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 5 per cent 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
Superior
Fully Satisfactory
Satisfactory
up to 8%
up to 6%
up to 4%
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 April 1, 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.
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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 8 per cent of salary for outstanding
performance.
The instructions for the Law Group will be sent separately.
You may contact Daniel Ménard 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
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
Annex A
5% PERFORMANCE PAY BUDGETS: SMALL DEPARTMENTS
July 10, 2001
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
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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
http://publiservice.tbs-sct.gc.ca/pubs_pol/hrpubs/compensation/sacapg_e.html .
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 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 .
http://publiservice.tbs-sct.gc.ca/Pubs_pol/hrpubs/TB_856/cap_e.html . The award is provided at
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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.
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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" 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 other assignments in the performance cycle.
The performance evaluation of assignment #3 is "Fully Satisfactory".
The global assessment with consideration of the 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 April 1, 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".
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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.
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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 both assignments is "Outstanding"
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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.
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
Qualifying Period
An employee 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. This employee is not eligible for performance pay.
Pro-Rated Awards
Example One
A CA-01 is appointed to a position in the program on 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 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.
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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 March 31st salary
$62,200
PERF_RAT
Performance rating:
SUP
Outstanding = OUT
Superior = SUP
Fully satisfactory = FS
Satisfactory = SAT
Unsatisfactory = UNS
Unable to assess = UTA
PERF_P
Performance award as a percentage of 7%
March 31st salary
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.
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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 April 1, 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 March 31, 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.
July 10, 2001
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Treasury Board of Canada Secretariat
Performance Pay for Non-Executive Employees Excluded from Collective Bargaining
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.
July 10, 2001
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