1.1 This directive takes effect on July 16, 2007.
1.2 It replaces the following:
1.3 Transitional measures are as follows:
Interchange Canada agreements that were signed prior to July 16, 2007 are not affected by this directive.
2.1 This directive applies to the core public administration as defined in section 11 of the Financial Administration Act unless excluded through specific acts, regulations or Orders in Council.
2.2 Specifically, this directive applies to excluded positions in the following groups and levels:
2.3 For the purpose of this directive, the term:
3.1 The Performance Management Program (PMP) for executives is an essential component in the effective management of a department. This Directive describes the requirements for the PMP to:
3.2 This directive is issued pursuant to a delegation of the Treasury Board to the President of the Public Service Human Resources Management Agency of Canada (PSHRMAC) authorized by s. 6(4.1) of the Financial Administration Act.
3.3 This directive is to be read in conjunction with the Policy on the Management of Executives and the Directive on Executive Compensation.
3.4 Treasury Board has delegated authority to the President of the Public Service Human Resources Agency of Canada to make technical amendments to this directive
4.1 Definitions to be used in the interpretation of this directive are attached in Appendix A.
5.1.1 Employees being paid as executives are to have valid performance agreements.
5.1.2 Requirements for performance agreements are provided in Appendix B of this directive.
5.2.1 Executives are to be managed and assessed according to the Values and Ethics Code for the Public Service and the requirements provided in Appendix C.
5.3.1 Individual executive cash compensation is determined in recognition that compensation is a reflection of performance and contribution.
5.3.2 Requirements for the determination of performance awards are provided in Appendix D.
5.4.1 Prior to issuing payments of performance awards, departments send a letter of attestation to the President of PSHRMAC by June 30 attesting that:
5.4.2 Only deputy heads can sign the letter of attestation.
5.5.1 Departmental reference levels are established to include an amount for in-range movement. In addition, the reference levels include a budget for lump sum performance awards as a percentage of the March 31 payroll for executives, as published from time to time by PSHRMAC.
5.5.2 The budget for lump sum performance awards is based only on the salaries of those who were being paid as executives on March 31 of the fiscal year and those who died or retired during the fiscal year. Detailed instructions on which salaries are to be included in this budget can be found in Appendix D of this directive.
5.5.3 The budget for lump sum performance awards cannot be exceeded except in exceptional circumstances, such as where an outstanding result or outcome achieved by the organization warrants a larger expenditure, and when the excess can be found from existing reference levels. When these exceptional circumstances indicate a need to exceed the budget, the reason is to be substantiated in the letter of attestation.
5.6.1 Authorizing deputy heads to proceed with payment of performance awards when the requirements in section 5.4 have been met.
5.6.2 Providing supporting tools, templates and training materials to departments on the subject of PMP.
Monitoring and reporting requirements are as described in section 6.3 of the Policy on the Management of Executives.
Detailed instructions for reporting on the PMP can be found in Appendix E.
Consequences of non-compliance with this directive or inconsistency in its application are described in section 7 of the Policy on the Management of Executives.
N/A
9.1 Other Relevant Legislation and Regulations:
N/A
9.2 Related Policy Instruments and Publications:
Please direct enquiries about this directive to your departmental headquarters. For interpretation of this directive, departmental headquarters should contact:
Executive Management Policies Directorate
Public Service Human Resources Management Agency of Canada
Ottawa, Ontario K1A 0R3
E-mail: TLNCorres/CorresLRL@hrma-agrh.gc.ca
Web Site: http://www.psagency-agencefp.gc.ca
Telephone: 613-947-2845
Fax: 613-943-5205
Casual worker (employé occasionnel) – a person employed on a casual basis pursuant to the Public Service Employment Act. The period of employment of a casual worker may not exceed ninety (90) working days in one calendar year in any particular department or other organization.
Continuous employment (emploi continu) – one or more periods of service in the public service, as defined in the Public Service Superannuation Act, with allowable breaks only as provided for in the terms and conditions of employment applicable to the employee.
Demotion (rétrogradation) – the placement of an employee in a position that has a lower maximum rate of pay than the maximum rate of pay applicable to the employee's former position for reasons of discipline, unsatisfactory performance and reasons other than breaches of discipline or misconduct.
Deployment (mutation) – the movement of an employee from one position to another position made pursuant to the Public Service Employment Act.
Deputy head (administrateur général) – for purposes of Schedule I of the Financial Administration Act, the deputy minister, and for purposes of Schedule IV, the chief executive officer or the person who occupies such a position.
Executive (cadre supérieur) – an employee appointed to the Executive Group (EX 01 to EX 05 levels). For purposes of this directive, employees who are classified in the following groups and levels are considered to be executive equivalents: Defence Scientific Service (DS) Group, levels 7A, 7B and 8, Medical Officer (MD-MOF) Group, levels 4 and 5, and Medical Specialist (MD-MSP) Group, level 3.
Executive group, EX group (groupe de la direction, Groupe EX) – the occupational group as defined in the Canada Gazette, Part 1, March 27, 1999.
In-range salary movement (progression à l'intérieur de l'échelle salariale) – an increase in annual salary within the minimum and maximum applicable to the employee's group and level.
Job (emploi) – a unique position, or a number of positions that are similar or identical and whose work is described by one work description.
Lay-off (mise en disponibilité) – the termination of employment in the core public administration pursuant to the Public Service Employment Act.
Lower classification level (niveau de classification inférieur) – a position with a lower maximum rate of pay than the previous position to which the employee is assigned to perform the duties, i.e. a difference of $1.00 or more for annual rates and $0.01 or more for hourly rates.
Lump sum performance award (prime au rendement) – a performance award for the achievement of key commitments (at-risk pay and bonus).
Notice period (période de préavis) – the period commencing with the formal notification of the executive's surplus situation and the actual termination date of employment.
Position (poste) – the work requirements assigned by the respective manager that can be performed by one person.
Public service (fonction publique) – as defined in section 11 (1) of the Financial Administration Act.
Reclassification (reclassification) – a change to either or both the occupational group and level of a position resulting from significant change in the work. A reclassification may be upward or downward.
Resignation (démission) – the voluntary separation of an employee other than at the end of a specified term for reasons other than retirement or lay-off.
Retirement (retraite) – the voluntary separation of an employee entitling the employee to benefits under the Public Service Superannuation Act.
Retroactive period (période de rétroactivité) – the period commencing on the effective date of implementation of the revision of rates of pay. Where no effective date of implementation is noted, the retroactive period ends on the day prior to the date formal notification of the revision is issued to departments.
Salary (salaire) – the fixed recurring portion of an employee's cash compensation received for the performance of the regular duties of a position, exclusive of allowances, performance awards or other compensation or gratuities.
Salary maintenance (maintien du traitement) – the treatment under the Directive on Career Transitionfor Executives given to the total compensation of an executive who is appointed to a position with a lower salary maximum while on surplus status,
or,
– the treatment under the Directive on Executive Compensation given to the total compensation of an executive who is appointed to an executive position which has a lower salary maximum than the salary the employee received in the former position.
Salary protection for executives (protection salariale pour les cadres supérieurs) – the treatment given to the total compensation of an employee whose position has been reclassified or converted to a level with a lower salary maximum.
Secondment (détachement) – an arrangement where an employee makes a lateral or downward move to another department to temporarily perform the functions of an existing position or to take on a special project, after which he or she returns to the home department. A secondment cannot change tenure or be a promotion.
Separation (cessation d'emploi) – a severance of the relationship between employer and employee, whether voluntary (e.g. resignation) or involuntary (e.g. owing to illness, accident, disability, discharge or termination for disciplinary reasons).
Service (service) – the continuous and discontinuous employment with any organization that is subject to the Financial Administration Act or continuous and discontinuous employment with any organization for which the individual was a contributor under the Public Service Superannuation Act.
Substantive position (poste d'attache) – the position to which an employee has been appointed or deployed, or from which an employee is being appointed or deployed in accordance with the Public Service Employment Act.
Surplus status (statut d'employé excédentaire) – an indeterminate employee is in surplus status from the date he or she is declared surplus or notified that his or her position will become surplus, until:
This appendix sets out the requirements for executive performance agreements for section 5 of the Directive on the Performance Management Program (PMP) for Executives.
Performance agreements are to demonstrate alignment with:
To be considered valid for the purpose of performance awards, performance agreements are to include the following:
2.1 Ongoing Commitments
2.2 Key Commitments
2.3 Performance Measures
2.4 Development
Performance agreements are used to identify individual development priorities for executives, including the development of Key Leadership Competencies.
2.5 Mid-year review of performance agreements
Departments can develop customized templates for performance agreements, provided the templates contain, as a minimum:
"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 can be used by the Public Service Human Resources Agency of Canada for audit or program evaluation purposes".
This appendix sets out the requirements for the management and assessment of executive performance for section 5 of the Directive on the Performance Management Program for Executives.
Management of performance includes, as a minimum:
2.1 Assessment of performance includes, as a minimum:
2.2 There is to be a normal distribution of performance ratings.
2.3 Assessment of executive performance is to be equitable and consistent, with differentiation made between levels of performance.
2.4 A written assessment of performance that takes place within sixty (60) days of the end of the fiscal year.
3.1 The performance level descriptions below are to be used to assess and rate performance of Ongoing and Key Commitments.
This performance level and results achieved are characterized by the following statements:
This performance level and results achieved are characterized by the following statements:
This performance level and results achieved are characterized by the following statements:
This performance level and results achieved are characterized by one or more of the following statements:
Departments are responsible for ensuring that an action plan to address performance issues is developed for executives who receive a Level 1 assessment.
Performance is considered unable to be assessed when there has been insufficient opportunity to allow for the achievement of performance commitments. This does not mean that the executive has not established a performance agreement, just that there has been insufficient opportunity for achievement against the commitments.
There are four situations where a Level 0 rating could apply for both Ongoing and Key Commitments:
There are four situations where a Level 0 rating applies for Key Commitments only:
This appendix sets out the requirements for the administration of performance awards as per section 5 of the Directive on the Performance Management Program (PMP) for Executives.
To be eligible for a performance award, executives must:
The table below summarizes the treatment for lump sum performance awards for executives in a variety of circumstances and the budget implications (assuming other requirements of the PMP have been met):
Circumstance | Lump sum performance awards | Budget calculation implications | |
1 | Executives who are employed in the core public administration on April 1, including executives on Interchange Canada assignments to organizations outside the core public administration | Eligible | March 31 salary is used to calculate the departmental budget for lump sum performance awards. |
2 | Executives who worked part of the fiscal year, on leave without pay on April 1 | Eligible Prorated | March 31 salary is used for purposes of calculation of the departmental budget for lump sum performance awards. |
3 | Non-executive actors whose acting assignment ended prior to the end of the fiscal year (March 31) | Eligible Prorated | The acting executive's March 31 salary is not used for purposes of calculation of the departmental budget for lump sum performance awards. |
4 | Executives who died prior to the end of the fiscal year (March 31) | Eligible Prorated | March 31 salary is used for purposes of calculation of the departmental budget for lump sum performance awards. |
5 | Executives who retired prior to the end of the fiscal year (March 31). | ||
6 | Executives in surplus status whose employment ends prior to the end of the fiscal year (March 31) | Eligible Prorated. | The executive's March 31 salary is not used for purposes of calculation of the departmental budget for lump sum performance awards. |
7 | Executives who have left the core public administration prior to April 1 for any other reason | Not eligible | Not applicable |
9.1 General
9.2 In-range movement for the achievement of Ongoing Commitments when receiving acting pay
9.3 Lump sum performance awards for the achievement of Key Commitments when receiving acting pay
11.1 Retirement or death
11.2 Language training
11.3 Interchange Canada assignments
11.3.1 Interchange Canada assignment to organizations outside the core public administration
11.3.2 Interchange Canada assignment from outside the core public administration
11.4 Leave without pay (LWOP)
A performance agreement is not required for the portion of the fiscal year during which an executive is on leave without pay.
11.4.1 Leave without pay for the ENTIRE fiscal year
11.4.2 Leave without pay for PART of the fiscal year
11.5 Salary maintenance status
11.5.1 Surplus executives who are on salary maintenance after being appointed to an executive position with a lower maximum salary than the salary they were receiving in their previous position
and
non-executives appointed to an executive position with a maximum salary lower than the salary they were receiving in their previous position:
11.5.2 For executives on salary maintenance after having been declared surplus under the Directive on Career Transition for Executives and who are subsequently appointed to a lower level non-executive position while their salary is above the salary maximum of this lower level position:
11.6 Salary protection status
11.7 Secondment within the core public administration
11.8 Special projects, special deployments or special assignments
11.9 Surplus status under the Directive on Career Transition for Executives during the notice period (priority status)
11.10 Casual status
11.11 Specified period appointments (terms)
11.12 Promotion or reclassification during the fiscal year
11.12.1 Promotion
11.12.2 Reclassification
11.13 Part-time work
This Appendix sets out the reporting requirements for Section 6 of the Directive on the Performance Management Program (PMP) for Executives.
This report is submitted annually, by June 30, for all groups and levels covered by the Directive on thePerformance Management Program (PMP) for Executives. An EXCEL spreadsheet in electronic format is the preferred reporting format.
The PMP Report should be sent, under PROTECTED B status, to the senior analyst responsible for the PMP at:
The Leadership Network
PSHRMAC
122 Bank Street
Ottawa ON K1A 0R3
The data requirements for the Annual PMP Report are as follows:
Field name | Width | Contents |
MIN CODE | 3 letters | Department or agency's ministerial code (e.g. TBS, FIN) |
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) |
CLASS | 6 | Employee Group and Level Example: EX-01, EX-02, etc. (Acting status should be shown by placing an A/ in front the Group and Level, e.g. A/EX-01) |
JRATE | 6 | March 31 salary range maximum The maximum of the salary range for the position No dollar signs |
MARCH 31 SALARY | 6 | Employee's base salary at March 31 No dollar signs |
OGC RATING | 1 | Ongoing Commitments Assessment Level: 4, 3, 2, 1, 0 |
BASE SALARY INCREASE | 6 | Actual amount of the increase to base salary (in-range movement) No dollar signs |
FINAL SALARY APRIL 1 | 6 | Revised base salary after in-range movement and any rounding No dollar signs |
KC RATING | 1 | Key Commitments Assessment Level: 4, 3, 2, 1, 0 Note: The Unable to Assess rating MUST be used if the rating for Ongoing Commitments was Unable to Assess |
KC LUMP SUM | 6 | Actual amount of lump sum performance award. Provide only one amount for the lump sum by adding at-risk and bonus together. (Do not include in-range movement in this figure.) No dollar signs |
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 fiscal year (e.g. language training, on LWOP or sick leave) 5 Unable to Assess for Key Commitments Only: EX on language training for the entire fiscal year (must be combined with Met All for Ongoing Commitments) 6 No Key Commitments were established (Use for Key Commitments only) |
PERFORMANCE PAY CATEGORY | 1 | 1 No At-Risk Pay 2 At-Risk Pay 3 Bonus |
Complete this section only for those in the position less than a full year (e.g. actors, retirement during the year, newly hired) | ||
Start Date | 6 | Start date in position dd mm yy |
End date | 6 | Last day worked in position dd mm yy |
Days Worked | 3 | Number of days worked between start and end dates |
Substantive | 4 | Group and Level for the substantive position Example: PE-6 |
Complete this section only for employees who were seconded to other departments on March 31 | ||
SEC MIN CODE | 3 letters | The three-letter code for the department to which the employee was seconded |
REP MIN CODE | 3 letters | The three-letter code for the department that is reporting on this employee |
COMMENTS |
| As appropriate (e.g. leave with pay) |
The PMP Scorecard consists of the annual and triennial reporting elements listed below. Information on how to complete the scorecards is provided to departments annually. All departments are required to complete annual scorecards by September 30. PSHRMAC will notify departments that are required to complete the triennial scorecard.
Annual reporting elements consist of:
Triennial reporting elements consist of: