ARCHIVED - Law (LA) 214

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**Appendix "A"

LA - Law Group (BUD 21402) Annual Rates of Pay (in dollars)

Table Legend

• $) Effective May 10, 2005
• X) Effective May 10, 2006 - Pay Restructure
• A) Effective May 10, 2006
• B) Effective May 10, 2007
• C) Effective May 10, 2008
• D) Effective May 10, 2009
• Y) Arbitral Award Effective November 1, 2009 - Pay Restructure
• E) Effective May 10, 2010

Lock Step Structure (BUD 21402)

Pay Increment Administration

1. The pay increment shall be to the next higher rate in the scale of rates.
2. Until October 31, 2009, the pay increment period for all lawyers paid in the LA-1 scale is six (6) months.
3. Until October 31, 2009, the pay increment period is twelve (12) months for all lawyers paid in the LA-2(I) and LA-2(II) scales. Thereafter, the in range movement will be governed by the relevant performance pay regime.

Pay Adjustment Administration

1. Effective May 10, 2006, prior to any other pay revision which occurs on that date, a lawyer shall be paid in the "X" line at the rate of pay which is immediately below the lawyer's rate of pay as of May 9, 2006.
2. Effective May 10, 2006, a lawyer shall be paid in the "A" scale of rates at the rate of pay which is immediately below the lawyer's rate in the "X" scale of rates.
3. Effective May 10, 2007, a lawyer shall be paid in the "B" scale of rates at the rate of pay which is immediately below the lawyer's rate in the "A" scale of rates.
4. Effective May 10, 2008, a lawyer shall be paid in the "C" scale of rates at the rate of pay which is immediately below the lawyer's rate in the "B" scale of rates.
5. Effective May 10, 2009, a lawyer shall be paid in the "D" scale of rates at the rate of pay which is immediately below the lawyer's rate in the "C" scale of rates.
6. Effective November 1, 2009 a lawyer shall be moved from the lock step pay structure in "D" scale to the pay range structure in "Y" range, with the move resulting in no change to the lawyer's rate of pay.
7. Effective May 10, 2010 a lawyer shall be paid in the "E" range at a rate of pay one point five per cent (1.5%) higher than in "Y" range, rounded to the nearest one dollar, subject to the range limits shown on line E.
8. No lawyer shall be paid less than the minimum of his/her respective salary range, unless that lawyer's performance is assessed as "unsatisfactory" in which case the lawyer will remain at his/her current rate of pay which could be less than the minimum of the range.

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**Appendix "A"

LA - Law Group Annual Rates of Pay (BUD 21400 and 21401) (in dollars)

Table Legend

• $) Effective May 10, 2005
• X) Effective May 10, 2006 - Pay Restructure
• A) Effective May 10, 2006
• B) Effective May 10, 2007
• C) Effective May 10, 2008
• D) Effective May 10, 2009
• E) Effective May 10, 2010
• (Arbitral Award - October 23, 2009)

I - All regions except Toronto (21400)

II - Toronto (21401)

Pay Range Structure – (BUD 21400 and 21401)

Pay Notes

1. Effective May 10, 2006, prior to any other pay revision which occurs on that date, a lawyer shall be paid in the "X" line at the rate of pay which is immediately below the lawyer's rate of pay as of May 9, 2006, with the move resulting in no change to the lawyer's rate of pay.
2. Effective May 10, 2006, lawyers at the LA-DEV to LA-3C levels (either National or Toronto rates) shall be paid at a rate of pay two point five per cent (2.5%) higher than in "X" range, rounded to the nearest one dollar, subject to the range limits shown on line "A".
3. Effective May 10, 2007, lawyers at the LA-DEV to LA-3C levels (either National or Toronto rates) shall be paid at a rate of pay two point three per cent (2.3%) higher than in "A" range, rounded to the nearest one dollar, subject to the range limits shown on line "B".
4. Effective May 10, 2008, lawyers at the LA-DEV to LA-3C levels (either National or Toronto rates) shall be paid at a rate of pay one point five per cent (1.5%) higher than in "B" range, rounded to the nearest one dollar, subject to the range limits shown on line "C".
5. Effective May 10, 2009, lawyers at the LA-DEV to LA-3C levels (either National or Toronto rates) shall be paid at a rate of pay one point five per cent (1.5%) higher than in "C" range, rounded to the nearest one dollar, subject to the range limits shown on line "D".
6. Effective May 10, 2010, lawyers at the LA-DEV to LA-3C levels (either National or Toronto rates) shall be paid at a rate of pay one point five per cent (1.5%) higher than in "D" range, rounded to the nearest one dollar, subject to the range limits shown on line "E".
7. Rates of pay for Articling Students are to be administered in accordance with the LA-DEV rates shown for the applicable effective date.
   • For the purpose of the LA-DEV rates, the term articling student means a person who has a Bachelor in Common Law (LL.B), a Bachelor in Civil Law (LL.L), or a Juris Doctor (J.D.) designation, is eligible for membership at the Bar of one of the Provinces or Territories of Canada upon completion of licensing requirements which traditionally includes articling, Bar Admission course, and licensing exams; and has been appointed for a specified period under the Public Service Employment Act.
   • The Employer will recover a partial or full amount of the salary paid to the employee while attending a bar admission program if the employee:
     • subsequently resigns prior to the completion of the licensing requirements;
     • upon being called to the Bar, declines an offer of employment with the Department and accepts employment elsewhere, or
     • upon being called to the Bar and offered a position post-articles, fails to work a minimum amount of time equivalent to the time paid to attend Bar Admission course and licensing exams.
8. (8) No lawyer shall be paid less than the minimum of his/her respective salary range, unless that lawyer's performance is assessed as "unsatisfactory" in which case the lawyer will remain at his/her current rate of pay which could be less than the minimum of the range.

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Appendix "B"

Performance Pay Plan for Lawyers at the LA-1, LA-2A and LA-2B Levels

The following performance pay plan in effect on May 9, 2006 applies to lawyers at the LA-1, LA-2A and LA-2B levels, for the duration of the Law group arbitral award, as issued on October 23, 2009 (Arbitral award dated October 23, 2009, provision effective November 1, 2009)

Part 1

1.0 Policy objective

1.1 To ensure the accurate and consistent administration of performance pay for certain non-Management Category senior excluded employees, including incentives to recognize and reward individuals in relation to their peers and subordinates.

2.0 Policy statement

2.1 It is government policy to pay certain senior excluded non-Management Category employees according to their assessed level of performance. This policy provides the means to achieve this. Its chief provisions are the following:

2.1.1 individuals may progress through the salary range by a series of variable increases related to the employee's assessed level of performance;

2.1.2 performance awards may be awarded to those whose salaries have reached the job rate and whose performance is fully satisfactory, superior or outstanding in a given year;

2.1.3 expenditures on salary administration must be controlled through a departmental performance increase budget.

3.0 Application

3.1 This policy applies to the core public administration and other sections of the federal public administration as defined in Schedules I and IV of the Financial Administration Act.

Group	Level
Administrative Services	AS-7 & 8
Economics	ES-8
Financial Administration	FI-4
Information Services	IS-6
Law Group	LA-1 & 2A & 2B
Personnel Administration	PE-6
Program Administration	PM-MCO 1 to 4
Purchasing and Supply	PG-6
Translation	TR-4 & 5
Welfare Programmes	WP-7

4.0 Exclusions

4.1 Employees affected by the Regulations respecting pay on reclassification or conversion whose salary is protected at a group and level not mentioned above are not subject to this plan. The relevant terms and conditions of employment apply to determine their appropriate salaries.

4.2 Employees absent on leave without pay are eligible for in-range performance increases or performance awards under this plan.

5.0 Policy requirements

5.1 Deputy Ministers/Deputy Heads must implement and adhere to the performance pay administration plan in their departments.

5.2 They must:

5.2.1 ensure that performance pay is administered according to the plan, based upon each employee's performance review and appraisal report;

5.2.2 provide all information, training, advice and guidance required to implement and administer the plan.

6.0 Monitoring

6.1 The following performance indicators will be used to evaluate departments' adherence to the plan:

6.1.1 performance awards are granted only to employees who have attained the job rate and are rated fully satisfactory, superior or outstanding;

6.1.2 in-range increases and performance awards do not exceed the percentage guidelines for each level of performance; and

6.1.3 performance increase expenditure does not exceed the approved target of five per cent (5%).

7.0 References

7.1 Financial Administration Act, Section 11(2)(d).

8.0 Enquiries

8.1 Enquiries about this policy should be referred to the responsible officers in departmental headquarters who in turn may direct questions regarding policy interpretations to:

Excluded Groups
Compensation Directorate
Compensation and Labour Relations
Treasury Board Secretariat

Part 2

Performance Pay Administration Plan for Certain Non-Management Category Senior Excluded Levels

1.0 Purpose

1.1 This appendix presents guidelines for the consistent application of the performance pay administration plan throughout the public service.

2.0 Definitions

2.1 "Acting pay" (rémunération d'intérim) means the rate that an employee should be paid for a temporary assignment to a higher classification level position.

2.2 "In-range increase" (augmentation à l'intérieur de l'échelle) means an increase in salary based on assessed level of performance, that results in an upward positioning in the range (not exceeding the job rate).

2.3 "job rate" (taux normal) means the maximum rate of pay available to a qualified employee whose performance in the job is at least fully satisfactory.

2.4 "payroll" (masse salariale) means the sum of salaries paid to employees subject to this plan, in a particular department or agency.

2.5 "performance award" (prime de rendement) means a bonus payable to an employee whose salary has reached the job rate of the applicable salary range and whose assessed level of performance is fully satisfactory, superior or outstanding. It is payable in a lump sum and must be re-earned each year.

2.6 "retroactive period" (période de rétroactivité) means the period commencing on the effective date of the retroactive upward revision in remuneration and ending on the day approval is given.

3.0 Performance Pay Administration

3.1 In-range increases and performance awards are to be administered on April 1 of each year or on a date prescribed by the Treasury Board.

3.2 Expenditures on in-range increases and performance awards are controlled by a departmental budget, which may not be exceeded.

4.0 In-range increases

4.1 As a general guide, in-range increases up to the job rate, as a percentage of the employee's salary, may be granted annually for assessed performance as follows:

• Outstanding - up to 10%
• uperior - up to 7%
• Fully Satisfactory - up to 5%
• Satisfactory - 0%
• Unsatisfactory - 0%
• Unable to assess - 0%

4.2 Under no circumstances should an in-range performance increase be authorised for an employee whose performance has been assessed as "unsatisfactory".

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

4.4 The Departmental performance pay budget is limited to five per cent (5%) of the departmental group payroll as at March 31. Only members of the group on strength March 31 and on April 1 in a position listed in paragraph 3.1 of this policy are eligible for the purposes of this exercise. Members of the group on leave without pay or on a maternity leave / paternal leave who would not normally be considered to be on strength, are, for purposes of this policy, deemed to be eligible.

4.5 Performance awards are limited to a maximum of ten per cent (10%) 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 lump sum award.

4.6 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.

4.7 Employees on full-time language training are deemed to be on strength and are eligible for payment under this plan.

4.8 Small departments, that is, those with fewer than twenty (20) eligible employees, must apply the following limitations to their budget calculations:

No. of employees	Performance budget (%)
1	10.0
2	7.0
3	6.0
4	6.3
5	5.8
6	5.5
7	5.7
8	5.5
9	5.3
10	5.2
11	5.4
12	5.3
13	5.2
14	5.3
15	5.2
16	5.1
17	5.2
18	5.2
19	5.1

Note: These figures represent a percentage of the total senior excluded non-Management Category employees' payroll on March 31 of each year.

5.0 Performance awards

5.1 A performance award (bonus) may be granted to an employee whose performance has been assessed as fully satisfactory, superior or outstanding, and whose salary is already at the job rate or has just reached the job rate by the application of an in-range increase, and who is on strength on March 31st and April 1st. These lump sums must be re-earned each year.

5.2 Increases are to be limited to:

• Outstanding performance - up to 10% of salary
• Superior performance - up to 7% of salary
• Fully Satisfactory performance - up to 5% of salary

5.3 The maximum permissible amount for the 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 above fully satisfactory performance.

6.0 Exceptions

6.1 Law Group (LA-1)

6.1.1 At the discretion of the Deputy Minister, the performance of legal officers at the LA-1 level may be reviewed on a semi-annual basis and in-range increase for performance granted consistent with the rates set out below. Performance awards (lump sum payments) are only paid out once a year.

7.0 Combined application of in-range increase and performance award

7.1 Some employees assessed as fully satisfactory, superior or outstanding will reach their job rate with in-range increases which are less than the amounts permissible under the guidelines. In these cases, deputy heads may grant a performance award in addition to the in-range increase. The combination of the two (2) amounts may not exceed the amounts permissible under the guidelines ten per cent (10%) of salary for outstanding performance, seven per cent (7%) of salary for superior performance and five per cent (5%) of salary for fully satisfactory performance.

8.0 Performance Pay for Employees on Leave without Pay

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

8.2 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.

9.0 Performance pay while receiving acting pay

9.1 An employee who is receiving acting pay for a temporary assignment to a group and level covered by this plan is eligible for performance pay at the higher level when the following criteria are met:

9.1.1 The substantive rate of pay has reached the range maximum and the employee is no longer eligible for increments or in-range performance increases in the substantive level; or an increment or in-range performance increase in the substantive level does not result in a change to the acting rate of pay and performance of the higher level duties is assessed as fully satisfactory or better;

9.1.2 An employee on strength and in an acting situation on March 31st and in a position listed in paragraph 3.1 of this policy on April 1, is eligible for the purposes of this exercise. Members of the group on leave without pay or on a maternity leave / paternal leave who would not normally be considered to be on strength, are, for purposes of this policy, deemed to be eligible.

9.1.3 There are sufficient funds in the performance budget to award a performance increase.

9.2 The commencement date of the acting assignment will not affect an employee's eligibility for performance pay when these conditions are met. Prorating the performance increase, based on the length of time in the acting assignment, is an option.

9.3 Employees in acting status who are eligible for performance pay are to be included in the calculation of the department's budget.

10.0 Ineligible employees

10.1 If within the review period an increment or an in-range performance increase in the substantive rate of pay results in a salary increase on recalculation of the acting pay, the employee is not eligible for performance pay under this plan, and should not be included in the calculation of the budget.

11.0 Limitations

11.1 Under no circumstances are the in-range increases and performance awards paid under this plan to exceed the maxima available for the evaluated level of performance. Likewise, departments may not exceed their aggregate exceptional performance budget.

12.0 Salary-related benefits

12.1 A performance award will be included as part of salary for the period in respect of which it was paid. Any such award paid in the year of retirement, but related to the year prior to retirement, will be fully counted in the calculation of the five-year average salary for pension purposes. However, it will not be reflected in the level of coverage under salary-related benefits such as Supplementary death benefit and insurances.

12.2 Performance awards will also not be considered part of salary for the purposes of termination benefits such as severance pay and cash-out of vacation leave, or for salary calculations related to promotion or transfer.

13.0 Authorization

13.1 The Deputy Minister / Deputy Head is authorized to determine increases in salary and to make performance awards within the guidelines prescribed in this plan unless otherwise directed by the Treasury Board Secretariat.

13.2 On those occasions when the circumstances of an individual case are so exceptional that a department believes the salary administration plan guidelines should be exceeded, the Deputy Minister must obtain prior written approval from the Treasury Board Secretariat.

14.0 Confidentiality

14.1 As a matter of government policy, disclosure is restricted to information on the salary ranges. The specific salary paid to an individual in a performance pay plan may be disclosed only to those public servants whose work requires access to such information.

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Appendix "C"

Performance Pay Plan for Lawyers at the LA-3 Levels

The following performance pay plan in effect on May 9, 2006 applies to lawyers at the LA-3 levels, for the duration of the Law group arbitral award, as issued on October 23, 2009 (Arbitral award dated October 23, 2009, provision effective November 1, 2009)

Directives for the Performance Management Program (PMP) for the Executive Group

Effective April 1, 2004

Table of Contents

• Preamble
• Effective Date
• Application
• Program Objectives
• Guiding Principles for the PMP
• Required Elements of the PMP
• Signed Performance Agreements
• Ongoing Commitments
• Key Commitments
• Performance Measures
• Format
• Review of Performance and Performance Agreements
• Deputy Head Attestation
• Assessment and Assessment Criteria
• Performance Descriptions
  • Level 4 (former Exceeded, Surpassed)
  • Level 3 (former Met All, Succeeded, Met)
  • Level 2 (former Met Most)
  • Level 1 Did Not Meet
  • Level 0 Unable to Assess
• Compensation Effects of Performance Assessment
• Base Salary and In-Range Movement
• At-Risk Pay and Bonuses
• Budget
• Reporting
• Performance Cycle
• Consequences for Non-Compliance with Requirements
• Accountabilities and Roles
• Enquiries
• Annex A: Sample Template
• Annex B: Sample Letter of Attestation
• Annex C: Annual PMP Report

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Preamble

Note: Instructions for the administration of Performance Awards are found in the Salary Administration Policy for the Executive Group.

In its 1998 report the Advisory Committee on Senior Level Retention and Compensation recommended the implementation of a Performance Management Program for the Executive (EX) Group both as a management tool to support the achievement of business results and as the tool to be used in determining changes in the compensation of executives.

Performance management is the process of planning, managing, improving, developing, supporting, assessing and rewarding performance; it is linked to other key Human Resources initiatives that take place in departments and agencies, such as: human resources planning (including succession planning), career management and training and development.

The PMP is:

• A key component of an effective human resource strategy for the attraction, retention and compensation of senior managers in the federal public service;
• A key management tool to:
  • Link individual accountability at all levels to the strategies and business priorities of the government;
  • Communicate expectations and priorities related to business planning and the application of leadership competencies;
  • Ensure that executives follow through on commitments and accountabilities;
  • Support organizational results-based planning and performance measurement, reporting and accountability;
  • Ensure that executives understand corporate priorities and how they are expected to contribute to the achievement of these priorities;
  • Support individual development in public service leadership competencies; and,
  • Support horizontal initiatives within departments as well as between departments and agencies, jurisdictions, and levels of government or external stakeholders through recognition of such teamwork in the performance agreements of individual executives.
• A critical component of total compensation for the EX Group, recognizing that compensation given to members of the Executive Group should reflect their performance.

Effective Date

The effective date of these directives is April 1, 2004.

Application

These Directives apply to public service organizations employing members of the occupational groups and levels identified in the Salary Administration Policy for Executives.

Program Objectives

The objectives of the Performance Management Program (PMP) for the Executive Group are to:

• Support a management regime that is based on values and ethics and clearly defined leadership competencies;
• Encourage excellence in performance by recognizing and rewarding the achievement of results that are linked to business plans and/or corporate priorities and the demonstration of public service leadership competencies, values and ethics; and,
• Provide a framework within which a consistent and equitable approach to managing performance can be applied.

Guiding Principles for the PMP

The principles of respect and fairness govern the exercise of authority in managing the performance of executives. These principles mean that it is recognized and respected that employees are entitled to:

• A clear idea of what is expected of them;
• Regular feedback concerning their performance; and,
• Learning and development opportunities to help them improve their performance.

The PMP for Executives is a tool for a consistent and equitable approach to performance management and assessment and is designed to support objective evaluation and differentiation of levels of performance across the EX Group.

Required Elements of the PMP

Signed Performance Agreements

The Performance Management Program requires that every person in the organization who is being paid as an EX have a written performance agreement.

The performance agreement:

• Demonstrates the link between an organization's business plans and priorities and an individual's commitments. The process to develop performance agreements must be integrated with the annual departmental business planning cycle; and,
• Documents the mutual understanding between the executive and his/her supervisor of the what (results) and the how (leadership competencies) that will be used to assess the performance of the executive for the performance cycle.

The starting points for deciding what commitments should be included in performance agreements each year are:

• Priorities of the government;
• Priorities of the Clerk of the Privy Council as Head of the public service;
• Priorities and plans of individual departments and agencies; and,
• Individual development needs, which may include the development of leadership competencies.

Assistant Deputy Head performance agreements, as the main linkage between individual executives and the business plans of each organization, should demonstrate alignment with corporate plans, and include uniformity in certain ongoing commitments, defining what might be called the broad executive management agenda for the organization.

The performance agreements for each successive level of executive should demonstrate cascading of commitments – that is, each commitment is an operationalization of the supervisor's commitments, within the realm of each executive's responsibilities.

The performance agreement between the executive and his/her supervisor must include the following mandatory components to be considered valid:

1. Ongoing Commitments*
2. Key Commitments*
3. Performance measures of successful achievement of the commitments and leadership competencies
4. A written assessment of actual results achieved during the performance cycle and the level of leadership competency demonstrated
5. The signatures of the executive and the supervisor when the commitments are approved.

* In situations where the job consists solely of a special project or assignment, there are normally only Ongoing Commitments. Exceptions could be considered when the assignment is of such scope and complexity to warrant the development of Key Commitments as well.

Performance agreements are subject to revision throughout the performance cycle, dictated by such factors as changed priorities and feedback. An executive may have several performance agreements throughout a performance cycle, for example, if the executive changes jobs or takes on a new assignment or if the supervisor changes. Each revision or new agreement must be signed.

It is a best practice that each performance agreement include a personal learning plan that identifies training and development commitments along with the resources that will be provided to support the learning plan.

Ongoing Commitments

• Ongoing Commitments are the principal results that the executive is expected to accomplish so that the department can achieve its business mandate. They are linked to the departmental business plans and/or priorities, and are reflective of the position description.
• Ongoing Commitments are part of the continuing responsibilities of the position that do not normally change from year to year. They should reflect a balanced representation of core accountabilities such as: financial management (budget), human resources management, business planning, policy development and operational program delivery and, self-development.
• Ongoing Commitments should be Specific (clearly stated), Measurable, Achievable (through influence and control), Results-based and Timely (SMART). Within the performance cycle the executive undertakes to achieve specified results for each Ongoing Commitment.
• Executives may document a personal learning plan, which may include the development of leadership competencies, in their performance agreements as an Ongoing Commitment.
• A minimum of four (4) and a maximum of seven (7) Ongoing Commitments should be established per performance cycle.

Key Commitments

• Key Commitments are areas of focus over and above ongoing commitments for the performance cycle. They may reflect change initiatives linked to business plans, corporate departmental priorities or public service priorities identified by the Clerk of the Privy Council as Head of the public service. They are intended to be challenging but achievable with effort.
• Normally Key Commitments change from year to year.
• At least one (1) Key Commitment and a maximum of three (3) Key Commitments should be established per performance cycle.

Performance Measures

• Performance measures describe how an observer would know that the results have been achieved within the performance cycle and define standards for expected level of achievement of these results.
• The first step in defining performance measures is the establishment of SMART (Specific (clearly stated), Measurable, Achievable (through influence and control), Results-based and Timely) commitments.
• The choice of a performance measure implies that quantifiable data/information indicating performance achievement will be available and that efforts will be made to obtain the information defined in the measure.
• If feasible, performance measures should also describe what characterizes levels of performance that are above expectations.
• Performance measures should be established at the start of the performance cycle when commitments are established and can be adjusted during the performance cycle. There should be 1-3 measures per Ongoing and Key Commitment.
• Performance measures should be assessed to ensure they are measuring the right results.

Format

There is no set format requirement for the performance agreement; departments and agencies have the flexibility to develop an agreement template or system that best suits the organization's business planning and results reporting requirements. Minimum requirements of a performance agreement include:

• Parties involved
• Signature block
• Date of performance cycle
• Ongoing Commitments and performance measures
• Key Commitments and performance measures
• Results achieved (completed at the end of the performance cycle)
• Narrative assessment (completed at the end of the performance cycle)
• A statement about Privacy of Information
• In addition, to clearly identify linkages to corporate priorities and the Clerk's priorities, a simple checklist is recommended

Annex A to these Directives shows a sample performance agreement that meets the minimum requirements.

Review of Performance and Performance Agreements

Performance agreements should be periodically reviewed by the executive and his/her supervisor and adjusted as required. In the event of significant changes, commitments and the related performance measures can be adjusted.

At the end of the performance cycle each individual is assessed on the "Results Achieved" based on the measures set for commitments. The results are documented on the performance agreement with the appropriate Summary Ratings for ongoing commitments and key commitments. The demonstration of leadership competencies in the achievement of all commitments should be taken into consideration when applying the assessment rating. Finally, an overall narrative assessment of performance with suggested career development action plans should also be documented.

The Performance Management Program also requires that the deputy head have in place in the organization a review mechanism or mechanisms, such as a review committee, to ensure equity and consistency in performance assessment ratings of all executives across the organization for the performance cycle.

Deputy Head Attestation

Prior to authorizing the issuing of payments for a performance cycle, the deputy head must, prior to June 30, send a letter to the Office of the Chief Human Resources Officer for Canada (the Employer) personally attesting that:

• Each employee subject to the PMP has a signed performance agreement; and,
• The department has a review mechanism to review the performance of each executive for equity and consistency.

The letter of attestation should also provide information about the overall expenditure for lump sum payments, as a percentage of executive payroll. A sample letter of attestation, which may be sent to the Employer by FAX is in Annex B.

The Employer will authorize payment when all of the above requirements have been met.

Assessment and Assessment Criteria

Each department and agency is responsible for developing performance assessment standards that respond to the organization's specific needs. Deputy heads are responsible for communicating these standards, including clear information on what makes some commitments more challenging, or important or critical to the organization's mission than others.

Assessment must include, at a minimum:

• An assessment of each individual's performance against commitments, including assessment of how the results were achieved, based on the leadership competencies;
• One-on-one performance discussions with each executive, including constructive feedback and identification of, and support for development and learning opportunities; and,
• Vertical and horizontal cross-organization review of performance assessments to ensure consistency and fairness.

Performance Descriptions

The performance level descriptions below are to be used to assess performance against commitments. Levels 2 to 4 may be further sub-divided, provided that definitions are developed to describe the expected level of performance and communicated to executives. Other titles may be substituted provided they are cross-referenced to the four levels for reporting purposes.

Note that for 2004-2005 fiscal, leadership competencies that must be considered in assessing performance refer to those related to valuing and managing people. In 2005-2006 the revised leadership competencies all refer to valuing and managing people.

Level 4 (former Exceeded, Surpassed)

This performance level and results achieved can be characterized by the following statements:

• Delivered on all commitments and exceeded expectations in the delivery of major commitments
• Consistently delivers results that provide exceptional value to stakeholders and the organization
• In delivering commitments, is seen as an organizational role model in demonstrating the departmental/leadership competencies.

Level 3 (former Met All, Succeeded, Met)

This performance level and results achieved can be characterized by the following statements:

• Delivered on all commitments
• A strong contributor to stakeholder and organizational successes
• In delivering commitments, clearly demonstrated the departmental/leadership competencies.

Level 2 (former Met Most)

This performance level and results achieved can be characterized by the following statements:

• Delivered on the most important commitments but not necessarily on all commitments
• Performance results indicate a need for development in some areas
• In delivering commitments, demonstrated a need to show improvement in the departmental/leadership competencies.

Level 1 Did Not Meet

This performance level and results achieved can be characterized by one or more of the following statements:

• Delivered on some but did not deliver on one or more of the most important commitments
  or
• Performance results fall below expected standards
  or
• In delivering commitments, had ongoing difficulty in demonstrating the departmental/leadership competencies.

Note: Individuals who receive a 'Did Not Meet' assessment should receive appropriate follow-up that addresses performance issues.

Level 0 Unable to Assess

Individuals who are 'Unable to Assess' are eligible for salary range increases, but no in-range movement or lump sum performance pay.

An individual is considered 'Unable to Assess' when there has been insufficient opportunity (e.g. fewer than three (3) months) to allow for the achievement of performance commitments. This does not mean that the individual has not established a performance agreement, just that there has been insufficient opportunity for achievement against the commitments. There are 4 situations where Unable to Assess could apply for both Ongoing and Key Commitments:

1. New to the public service
2. Newly appointed to the group from another occupational group
3. Non-EX acting in an EX position for fewer than three months
4. Employee absent from the job for a significant period of the performance cycle, e.g. leave without pay or sick leave.

There are two situations where executives might be considered Unable to Assess for Key Commitments only:

1. Executives on language training have only one Ongoing Commitment for the duration of the language training – attendance at language training in order to meet the language requirements of the position, and must be considered to have met ongoing commitments. Since there are no Key Commitments for the period of training, they receive an Unable to Assess rating for Key Commitments in that period.
2. Situations where no Key Commitments were established for the performance cycle, for example, an employee whose job consists of a single project or assignment to accomplish for the performance cycle.

Note on distribution of assessment levels: It is recognized that a normal distribution would result in five per cent (5%) of the population assessed at level 1.

Compensation Effects of Performance Assessment

The performance assessment and resulting compensation effects should take place within sixty days of the end of the performance cycle.

Performance awards include in-range movement and lump sums.

No performance award may be authorized in the absence of a signed performance agreement.

Deputy heads have flexibility to provide performance awards that are appropriate to their organizational priorities and requirements provided these awards are within the PMP Directives.

In determining the percentage of in-range movement and lump sums, deputy heads should take into account the importance and impact of results achieved. The focus should be equally on what was accomplished and how it was done.

Base Salary and In-Range Movement

The executive earns a base salary for the accomplishment of Ongoing Commitments.

The achievement of Ongoing Commitments and how the results were achieved (demonstration of leadership competencies) affect progression through the salary range for the position (in-range movement) which should vary with assessed performance.

At-Risk Pay and Bonuses

Over and above the base salary, executives have opportunities to earn at-risk pay and bonuses based on the achievement of key commitments.

A prerequisite for access to at-risk pay and bonuses is that expectations for the achievement of ongoing commitments have been met.

The achievement of Key Commitments and how the results were achieved (demonstration of leadership competencies) affect the amount of lump sum performance awards, defined as at-risk pay and bonuses.

At-risk pay is defined as any lump sum performance award for:

• EX-1 to EX-3 – up to seven per cent (7%) of base salary
• EX-4 and EX-5 – up to ten per cent (10%) of base salary

A bonus is defined as any lump sum performance award for:

• EX-1 to EX-3 – up to an additional three per cent (3%) of base salary
• EX-4 and EX-5 – up to an additional five per cent (5%) of base salary

Only those who receive full seven per cent (7%) (EX-1 to EX-3) or ten per cent (10%) (EX-4 and EX-5) are eligible for a bonus.

At-risk pay and bonuses must be re-earned each year, and do not increase an individual's base salary.

Budget

The budget for at-risk pay and bonuses is part of the annual departmental reference levels, totaling seven percent (7%) of the March 31^st payroll for members of the occupational groups and levels to which the provisions of the PMP apply.

Departments may exceed the budget where results warrant, and when the excess can be found from existing reference levels.

Organizations with fewer than ten executives should follow the budget guidelines below:

Number of Executives	Number of Surpassed Ratings	Budget for at-risk pay and bonuses as a % of March 31 Payroll
1	1	10.0%
2	1	8.5%
3	1	8.0%
4	1	7.7%
5	1	7.6%
6	1	7.5%
7	2	7.4%
8	2	7.3%
9	2	7.3%
10	2	7.0%

Reporting

Annually, departments and agencies must submit to the PSHRMAC:

1. PMP Report: The Requirements of this report are in Annex C.
2. Monitoring and Evaluation Framework Scorecard: the requirements consist of annual and triennial reports in a scorecard format. Triennial elements are reported on a rotating schedule so that in any year, one-third of departments and agencies are reporting. The Employer will advise departments and agencies as to the timing of these reports and provide training and support. This reporting requirement begins with the 2005–2006 fiscal year.
3. Quality Review of Performance Agreements: upon request, departments and agencies must submit copies of performance agreements for review.

Performance Cycle

The PMP performance cycle is the fiscal year from April 1st to March 31st.

Consequences for Non-Compliance with Requirements

Non-compliance with the required elements of the Performance Management Program may result in a citing of the department or agency in the President of PSHRMAC's annual report to Parliament on human resources management. In some cases, the consequences may be a modification or withdrawal of delegation of authority and/or recovery of amounts paid.

Accountabilities and Roles

The following table highlights some of the roles of key players accountable for the PMP for executives.

Who	What
Clerk of the Privy Council	Establishes broad public service corporate priorities in consultation with Deputy Ministers. Establishes personal performance agreements with Deputy Ministers. With the Committee of Senior Officials and the Deputy Minister community, champions the leadership competencies for the Public Service of Canada and ensures their alignment with the current and future needs of the public service.
Office of the Chief Human Resources Officer of Canada (the Employer)	Establishes the PMP Directives. Provides instructions for the administration of compensation and the requirements for departmental reports on the PMP. Develops an integrated implementation strategy for the public service leadership competencies. Annually gives approval, to each deputy head who has attested that the PMP program requirements have been met, to pay performance awards to employees subject to the PMP. Develops and delivers PMP learning sessions in consultation with departments. Monitors and evaluates the health and effectiveness of the PMP.
Deputy Head	Plans, manages, and accounts for the performance of each executive. Develops and communicates performance assessment criteria and standards that respond to the department or agency's specific needs. Establishes performance agreements with direct reports based on public service corporate priorities and departmental business plans and public service leadership competencies. Assesses the actual results achieved by direct reports at the completion of the assignment or business cycle and provides feedback. Implements the annual departmental performance management program within the PMP description and directives. Implements effective and efficient processes to meet the requirement to ensure equity and consistency in the application of the PMP. Such processes must include a review mechanism and may include: Simplified and streamlined planning and assessment processes A format for performance agreements that supports departmental business planning requirements Implements effective performance assessment programs and processes. Periodically and when required by the Employer evaluates the administration of the PMP to ensure the organization complies with the PMP Directives. Annually submits a letter to the Employer personally attesting that the PMP program requirements have been met for that performance cycle in order to receive authorization to pay in-range salary movement, at-risk pay and bonuses to those subject to the PMP. Submits a report to the Employer on the application of in-range salary movement, at-risk pay and bonuses by June 30 annually. Keeps copies of signed performance agreements for the purpose of audit by the Employer.

The following describes roles for other players that reflect expectations for the effective management of the program.

Who	What
Assistant Deputy Minister (ADM)	Develops business plan for area of responsibility. Establishes ongoing/key commitments, performance measures and interdependencies with deputy head. Signs his or her own performance agreement. Establishes and signs individual performance agreements with direct reports. Assesses the actual results achieved by direct reports at the completion of the assignment or business cycle, and provides feedback. Communicates priorities with direct reports.
Director General / Director	Develops business plan for area of responsibility. Develops Establishes ongoing/key commitments, performance measures and interdependencies with supervisor. Signs the performance agreement. Establishes individual performance agreements with direct reports. Assesses the actual results achieved by direct reports at the completion of the assignment or business cycle, and provides feedback/business plan for area of responsibility. Communicates priorities with direct reports.
Head of Human Resources / Head of Departmental Business Planning	Advises senior management on the PMP framework/business planning process and performance management process requirements. Provides advice and guidance to senior management on the leadership competencies and their uses. Develops and implements the departmental performance management training strategy for executives and incorporates PMP training into departmental EX orientation/ training. Implements the Salary Administration Policy for the Executive Group and these Directives.

Enquiries

Comments and questions related to these directives should be referred to responsible officers in departmental headquarters who in turn may direct question to the Office of the Chief Human Resources Officer.

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Annex A Sample Template

Between:  ___________________________ And:  ___________________________ Signature: ______________Date:_________							Performance Agreement (year – year)	Reviews of this agreement were conducted on the following dates: Mid-term: _____ Change of Supervisor: _____ Change of Assignment: _____
Checklist for Alignment						Ongoing Commitments (4 to 7 commitments)
Priorities of the Clerk of the Privy Council					Corporate Priorities(May be sub-divided)	Commitment	Performance Measures(1 to 3 per commitment)	Results Achieved(for each commitment)
						Human Resources Management:
						Financial Management:
						Business accountabilities of the position: 1 2 3 4

Checklist or Alignment						Key Commitments(1 to 3)
Priorities of the Clerk of the Privy Council					Corporate Priorities(May be sub-divided)	Commitment	Performance Measures (1 to 3 per commitment)	Results Achieved (for each commitment)

Evaluation Narrative Assessment: Ongoing Commitments Rating: __________ Key Commitments Rating:   __________	I have read this assessment: Signatures: Executive: _____________Date_______ Supervisor: ______________Date_______
Personal information will be protected under the provisions of the Privacy Act and will be stored in Standard Bank, Performance Reviews and Employee Appraisals PSE 912. This document may be used by the Employer for audit or program evaluation purposes.

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Annex B Sample Letter of Attestation

FAX this letter to (613) 943-5205

(Date)

Office of the Chief Human Resources Officer
C/O Executive Management Policies Directorate
Ottawa, Ontario

Dear Ms. Chartrand,

This letter is to attest that all requirements of the Performance Management Program for Executives for (name of the Department or Agency) for (fiscal year) have been met: all executives have signed performance agreements and our organization has in place a review mechanism to ensure equity and consistency in the performance assessment of all executives.

Our planned expenditure for at-risk pay and bonuses as a percentage of the executive payroll is ( % ).

As all requirements of the PMP have been met, I request your authorization to proceed with payments to executives.

Yours sincerely,

Signature

(Please provide a fax number for the Agency's reply)

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Annex C Annual PMP Report

This report must be submitted annually, by June 30, for all groups and levels covered by the Salary Administration Policy for the Executive group. An Excel spreadsheet in electronic format is preferred.

The PMP Report should be sent, under Protected status, to:

Office of the Chief Human Resources Officer
C/O Executive Management Policies Directorate
Ottawa ON K1A 0R5

The data requirements for the Annual PMP Report are as follows:

Field name	Width	Contents
Dept	3	Department
PRI	8	Personal Record Identifier
FName	20	Employee family name
INIT	3	Employee Initials
Gender	1	1 Male 2 Female
LOC	1	Geographic Location of the position: 1 Headquarters (HQ) 2 Location other than HQ
Class	6	Employee Group and Level (Acting status should be shown by placing an A/ in front the Group and Level, e.g. A/EX-1)
JRate	6	March 31 job rate (range maximum)
March 31 Salary	6	Employee's salary at March 31
OCG Level	1	Ongoing Commitments Assessment Level: 4 3 2 1 0
Base Salary Increase	6	Dollar amount of base salary increase (in-range movement)
Revised Salary	6	Revised base salary after in-range movement
Final Salary April 1	6	Revised base salary after in-range movement and any rounding
KC Level * The Unable to Assess rating Must be used if the rating for Ongoing Commitments was Unable to Assess	1	Key Commitments Assessment Level: 4 3 2 1 0
KC Lump Sum	6	Dollar amount of lump sum in relation to Key Commitments
UTA Reason	1	Reason for the Unable to Assess Rating 1 New EX in PS 2 New EX from another PS group 3 Non-EX acting as EX less than 3 months 4 EX absent from position for a significant period of the cycle, e.g. language training, on LWOP or sick leave 5 Unable to Assess for Key Commitments Only: EX on language training for the entire cycle (must be combined with Met All for Ongoing Commitments) 6 Other Unable to Assess for Key Commitments Only: No Key Commitments were established
Performance Pay Category (New for 2004-2005)	1	1 No At-Risk Pay 2 At-Risk Pay 3 Bonus
Comments		As appropriate

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Appendix "D"

Office Space

The parties will consult, at the national level or such other level as they may agree, on the subject of appropriate office accommodation, having regard (i) to the responsibilities assigned to the members of the bargaining unit, particularly their professional obligation to maintain confidentiality and to protect solicitor-client privilege, and (ii) to the context of the federal public service.

They will meet within one hundred and fifty (150) days of the issuing of this Award to begin the discussions (Arbitral award dated October 23, 2009, provision effective November 1, 2009)

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