ARCHIVED - Performance pay and Salary revisions for the Excluded Law Group

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September 23, 1998

Address

Dear Salutation:

I am pleased to inform you that the Treasury Board has approved the application of performance pay for the Excluded Law Group in respect of fiscal years 1996-97 and 1997-98. The Ministers also approved salary range adjustments effective July 1, 1997 and April 1, 1998 for LA Developmental, LA-1, LA-2A and LA-2B levels and effective April 1, 1998 for LA-3A, LA-3B and LA-3C levels.

For fiscal year 1996-97, performance pay is to be applied to salaries in effect on June 30, 1997 and for fiscal year 1997-98, performance pay is to be applied to salaries in effect on March 31, 1998. Performance pay is to be applied prior to calculating individual salaries within the new salary ranges.

The LA Developmental, LA-1, LA-2A and LA-2B levels will be subject to the Excluded Law Group Salary Administration Plan. The plan has been modified to provide you with greater flexibility in managing your internal performance evaluation process. Employees assessed as "fully satisfactory" are now eligible for performance awards.

Levels LA-3A, LA-3B and LA-3C will be subject to the Executive Group Salary Administration Plan. This plan has also been modified to provide you with additional flexibility. The 30% quota for employees rated above "fully satisfactory" has been eliminated.

Complete details will be provided to your Director of Human Resources under separate cover. Detailed requirements on performance pay administration will also be provided to your Director of Human Resources. If your officials have any questions on the application of performance pay, please have them contact Executive and Excluded Groups, Human Resources Branch, Treasury Board Secretariat.

A copy of this letter is also being sent to your Director of Human Resources. I am enclosing a copy of the French version of this letter for the use of your French-speaking officers.

Enclosures

Recipients:
Annex A B C D E F
Memo

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Recipients

To Deputy Ministers, Heads of Agencies and Dir. of Human Resources of the following 26 departments:

1. Canada Labour Relations Board (CLR)
2. Canadian Artist & Producers Professional Relations Tribunal (APT)
3. Canadian Heritage (PCH)
4. Canadian International Trade Tribunal (BCO)
5. Canadian Radio-Television and Telecommunication (RTC)
6. Canadian Transportation Agency (ATN)
7. Commissioner of Official Languages (COL)
8. Competition Tribunal, Registry (RCT)
9. Elections Canada (CEO)
10. Federal Court (FCT)
11. Federal Judicial Affairs (FJA)
12. Human Rights Commission (HRC)
13. Immigration & Refugee Board (IRB)
14. Industry Canada (DUS)/Industrie Canada
15. Information & Privacy Commissioners (IPC) - 2 letters
16. Justice (JUS)
17. Patented Medicine Prices Review Board (PXR)
18. Privy Council Office (PCO)/Bureau du Conseil privé
19. Public Works and Government Services (SVC)
20. Revenue Canada(NAR)
21. Solicitor General (SOL)
22. Supreme Court (SUC)
23. Transport Canada (MOT)
24. Transportation & Safety Board (TSB)
25. Treasury Board Secretariat (TBD)
26. Veterans Affairs (DVA)

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ANNEX A

RATES OF PAY FOR EXCLUDED LAWYERS
A = Exclusion Rates - Effective June 1 1992 - June 30 1997
B = Exclusion Rates - Effective July 1 1997 - March 31 1998
C = Exclusion Rates - Effective April 1 1998 - March 31 1999
LA DEV	A	22890	to	33790
	B	23350	to	34470
	C	23820	to	35155
All Regions Except Toronto
LA 1	A	42400	to	60200
	B	43250	to	61700 1
	C	44115	to	62935
LA 2A	A	60200	to	84300
	B	61405	to	85990
	C	62635	to	87710
LA 2B	A	76400	to	93200
	B	77930	to	95065
	C	79490	to	96970
LA 3A	A	82800	to	105000
	B	82800	to	105000
	C	86975	to	110295
LA 3B	A	95000	to	115900
	B	95000	to	115900
	C	100985	to	123205
LA 3C	A	105700	to	128900
	B	105700	to	128900
	C	114910	to	140130
Toronto Regional Rates
LA 1	A	47548	to	60230
	B	43250	to	61700 1
	C	44115	to	62935
LA 2A	A	68504	to	100959
	B	61405	to	101970
	C	62635	to	102990
LA 2B	A	83549	to	111570
	B	84385	to	112690
	C	85230	to	113820
LA 3A	A	93411	to	121481
	B	93411	to	121481
	C	95765	to	124545
LA 3B	A	101614	to	122673
	B	101614	to	122673
	C	104815	to	126540

Pay Note 1

For employees at the LA 1 rate the increase to the maximum of the range is approximately 2.5%. However no employee will receive an economic increase greater than 2%. The range increase is higher than 2% in order that the maximum of the excluded LA 1 pay range be equal to the represented LA 1.

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ANNEX B

Salary Administration Instructions
July 1, 1997

Law (LA) Group

Lawyers Excluded from Collective Bargaining
at LA Developmental, LA-1, LA-2A and LA-2B levels

A. GENERAL

1. This document presents instructions for the administration of performance pay for 1996-97 and 1997-98 and for the determination of individual salaries within the new salary ranges approved by Treasury Board for members of the Law Group at LA Developmental,
   LA-1, LA-2A and LA-2B levels effective July 1, 1997 and April 1, 1998.
2. The Law Group Salary Administration Plan (Treasury Board Compensation Manual, volume, chapter 3-1) shall apply to lawyers at levels LA Developmental, LA-1, LA-2A and LA-2B and remains valid other than when exceptions are specified in these instructions. Departments will need to refer to both documents to ensure that all aspects of each case are addressed within the appropriate policy framework.
3. Annex "A" provides the new salary ranges effective July 1, 1997 and April 1, 1998, for the lawyers excluded from collective bargaining. The national rate percentage increase for both years is 2% for each level. For employees at the LA-1 level, the increase to the maximum of the range is approximately 2.5%. However, no employee will receive an economic increase greater than 2%. The range increase is higher than 2% in order that the maximum of the excluded LA-1 pay range be equal to the represented LA-1 job rate. The rate of increase for the Toronto rates of pay at the LA-2A and LA-2B levels is 1% for each year.

B. PERFORMANCE PAY FOR FISCAL YEAR 1996-97 and 1997-98
      (Law Group Salary Administration Plan, section 6)

4. Performance pay is in respect of the fiscal period from April 1, 1996 to March 31, 1997 and April 1, 1997 to March 31, 1998. Performance awards, i.e. increases to base salary within the range and/or lump sum payments above the job rate (salary maximum), are to be based on the rate of pay that the individual is receiving as of June 30, 1997 for performance pay for
   1996-97 and March 31, 1998 for performance pay for 1997-98. In no circumstance is a performance award to be applied to a salary that has been revised within the new salary ranges that become effective on July 1, 1997 and April 1, 1998. The LA-1 level is subject to semi-annual increases and the effective dates of the increases are July 1, 1997, January 1, 1998, July 1, 1998 and January 1, 1999.
5. In the following section on performance pay, all references to individual salaries, salary ranges and job rates (maximums) mean those in effect on June 30, 1997, prior to implementation of the new salary ranges on July 1, 1997 and March 31, 1998, prior to implementation of the new salary ranges on April 1, 1998.

Policy Framework for Performance Awards

6. Performance awards may range from 0 to 10% but they may not exceed 10% of individual salary. Deputy heads have full discretion to make a performance award up to the maximum of 10% when an individual's performance has been assessed as at least "fully satisfactory".
7. 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 may be paid as a one-time lump sum.
8. When the individual salary is already at the current job rate, the entire performance award for those employees assessed as at least "fully satisfactory" is to be paid as a one-time lump sum.
9. When performance has been evaluated as less than "satisfactory", the individual is not eligible for any performance award, either as a base salary increase within the range or as a lump sum.
10. Performance awards for the 1996-97 fiscal period are to be calculated on the individual salaries in effect on June 30, 1997 and are to be implemented effective July 1, 1997 before calculating salary revisions within the new ranges. (See notes 4 and 5 for level LA-1)
11. Performance awards for the 1997-98 fiscal period are to be calculated on the individual salaries in effect on March 31, 1998 and are to be implemented effective April 1, 1998 before calculating salary revisions within the new ranges. (See notes 4 and 5 for level LA-1)
12. Performance review and employee appraisal are in respect of the fiscal years April 1, 1996 to March 31, 1997 and April 1, 1997 to March 31, 1998. Performance-related increases to base salary and lump sum payments are to be associated with the 1996-97 and 1997-98 fiscal periods respectively for pension purposes.

C. IMPLEMENTATION OF NEW SALARY STRUCTURES ON July 1, 1997 and APRIL 1, 1998
    (Law Group Salary Administration Plan, section 4)

13. Salary range revisions are to be applied to the new base salaries after performance pay increases have been determined.
14. As a general rule, individuals should receive the full amount of the percentage increase applicable to the job rate for his or her level, provided that performance for the fiscal period in question has been assessed as "fully satisfactory" or better (see Annex "A").
15. For example, an LA-1 who has a "fully satisfactory" or a "superior" rating and whose salary is at the old job rate of $60,200 will receive a 2% increase. The individual's salary will be adjusted to $61,404 effective July 1, 1997. (Note: while the increase to the maximum of the LA-1 range is approximately 2.5%, no employee will receive an economic increase greater than 2%. The range increase is higher than 2% in order that the maximum of the excluded LA-1 pay range be equal to the represented LA-1.)
16. An LA-1 earning a salary of $56,588, will receive the full 2% range increase to produce a new salary of $57,720 effective July 1, 1997.

Salary Range Revisions for Lawyers on Leave Without Pay (LWOP)

17. The salaries of lawyers on LWOP should be recalculated, for record purposes only. Departments should calculate the new salaries as if the lawyer had received a "fully satisfactory" performance evaluation and was therefore entitled to receive the full percentage increase.
18. In the case of an LA-2A who was earning $82,000 before proceeding on LWOP, the application of the 2% increase will produce a new salary of $83,640. If the employee returns to Public Service employment following the period of LWOP, he or she will be paid at the new salary.

D. ROUNDING SALARY CALCULATIONS

19. Note that all final salary calculations in the examples in Annex "F" reflect a practice of rounding to the nearest multiple of $100. There have been numerous requests for Treasury Board Secretariat to provide direction to departments on the rounding practice to use when calculating salary revisions. In the interests of ensuring consistency across the Public Service, departments should adopt this approach.
20. Rounding is to be applied once only. After applying any performance-related in-range increase to the base salary through the performance pay exercise and having then calculated the salary to reflect the new salary range structure, the final salary figure should be rounded to the nearest multiple of $100. This application is evident in the examples in Annex "F".

E. REPORTING REQUIREMENTS

Reports on the application of performance pay and salary range revisions are to be sent, by November 30, 1998, to the following address:

Reports are to be submitted in the specified format noted in Annex "D", either in Excel, or as a flat ASCII file. You may refer enquiries to the Executive and Excluded Groups section at (613) 952-3278 or (613) 957-2400.

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ANNEX C

Salary Administration Instructions
July 1, 1997 and April 1, 1998

Law (LA) Group

Lawyers Excluded from Collective Bargaining
at LA-3A, LA-3B, and LA-3C levels

A. GENERAL

1. This document presents instructions for the administration of performance pay for 1996-97 and 1997-98 and for the determination of individual salaries within the new salary ranges approved by Treasury Board for members of the Law Group at levels LA-3A, LA-3B and LA-3C effective April 1, 1998.
2. The Executive Group Salary Administration Plan (Treasury Board Manual, Executive Group volume, chapter 4-2) shall apply to lawyers at levels LA-3A, LA-3B and
   LA-3C and remains valid other than when exceptions are specified in these instructions. Departments will need to refer to both documents to ensure that all aspects of each case are addressed within the appropriate policy framework.
3. Annex "A" provides the new salary ranges effective April 1, 1998, for the lawyers excluded from collective bargaining. The percentage increase for level LA-3A is 5.04%, for LA-3B is 6.30% and for LA-3C is 8.71%. For positions subject to the Toronto Regional Rates the percentage increase is half the national rate.

4. Examples of the combined impact of performance pay and salary range revisions on individual salaries are provided. These examples should be read carefully and in conjunction with the following instructions to ensure clear understanding of the procedures that are to be followed.

B. PERFORMANCE PAY FOR FISCAL YEAR 1996-97 and 1997-98
    (Executive Group Salary Administration Plan, section 6)

5. Performance pay is in respect of the fiscal period from April 1, 1996 to March 31, 1997 and April 1, 1997 to March 31, 1998. Performance awards, i.e. increases to base salary within the range and/or lump sum payments above the job rate (salary maximum), are to be based on the rate of pay that the individual is receiving as of June 30, 1997 for performance pay for 1996-97 and as of March 31, 1998 for performance pay for 1997-98. In no circumstance is a performance award to be applied to a salary that has been revised within the new salary ranges that become effective on April 1, 1998.
6. In the following section on performance pay, all references to individual salaries, salary ranges and job rates (maximums) mean those in effect on June 30, 1997 and March 31, 1998, prior to implementation of the new salary ranges on April 1, 1998.
7. A lawyer must be on strength on both June 30, 1997 and July 1, 1997 to be eligible to receive a performance award for 1996-97. Anyone who has left the Public Service prior to July 1, 1997 will not receive performance pay.
8. A lawyer must be on strength on both March 31, 1998 and April 1, 1998 to be eligible to receive a performance award for 1997-98. Anyone who has left the Public Service prior to April 1, 1998 will not receive performance pay.

Budgets for Performance Pay

9. Departmental budgets for performance awards in respect of the 1997-98 fiscal year are limited to four percent (4%) of the departmental LA-3A, LA-3B and LA 3C levels payroll as of March 31, 1998. Note that this is a change from 1996-97 when the limit on performance pay budgets remains at 5% of payroll.
10. Departments with fewer than 20 lawyers at these levels should consult the tables in Annex "E" for the percentage to use when determining the size of their performance pay budgets in each of the two fiscal years.

Policy Framework for Performance Awards

11. Performance awards may range from 0 to 10% but they may not exceed 10% of individual salary. Deputy heads have full discretion to make a performance award up to the maximum of 10% when an individual's performance has been assessed as at least "fully satisfactory", and provided that the overall budget limit is respected.
12. 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.
13. When the individual salary is already at the current job rate, the entire performance award is to be paid as a one-time lump sum.
14. 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.
15. Performance awards for the 1996-97 fiscal period are to be calculated on the individual salaries in effect on June 30, 1997 and are to be implemented effective July 1, 1997 before calculating salary revisions within the new ranges.
16. Performance review and employee appraisal is in respect of the fiscal year April 1, 1996 to March 31, 1997. Performance-related increases to base salary and lump sum payments are to be associated with the 1996-97 fiscal period for pension purposes.
17. Performance awards for the 1997-98 fiscal period are to be calculated on the individual salaries in effect on March 31, 1998 and are to be implemented effective April 1, 1998 before calculating salary revisions within the new ranges.
18. Performance review and employee appraisal is in respect of the fiscal year April 1, 1997 to March 31, 1998. Performance-related increases to base salary and lump sum payments are to be associated with the 1997-98 fiscal period for pension purposes.

Performance Pay for Lawyers on Leave Without Pay (LWOP)

19. Lawyers who have been absent on LWOP for the full fiscal year and have not returned to work by June 30, 1997 for purposes of performance pay for 1996-97 and/or March 31, 1998 for purposes of performance pay for 1997-98 are not eligible for any performance increase. They are not to be included in the calculation of the budget.
20. Lawyers absent for a part of the fiscal year who have returned to work by June 30, 1997 and/or March 31, 1998 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 pro rated for the time they have been back on the payroll.

C. IMPLEMENTATION OF NEW SALARY STRUCTURES ON APRIL 1, 1998
     (Executive Group Salary Administration Plan, section 4)

21. Salary range revisions are to be applied to the new base salaries after performance pay increases have been determined.
22. As a general rule, provided that performance for the 1997-98 fiscal period has been assessed as "fully satisfactory" or better, an individual will receive the full amount of the percentage increase for his or her level (see Annex "A").
23. For example, an LA-3A who has a "fully satisfactory" or a "superior" rating and whose salary is at the old job rate of $105,000 will receive the full 5.04% increase that has been applied to the job rate. The individual's salary will be adjusted to the new job rate of $110,295 effective April 1, 1998.
24. An LA-3A paid at $98,700, will also receive the full 5.04% range increase to produce a new salary of $103,674 on April 1, 1998.

Salary Treatment for "Satisfactory" Performance or "Unable to Assess"

25. When an individual's performance for 1997-98 has been assessed as "satisfactory" or "unable to assess", the deputy head may increase the salary by up to, but not more than 3% of the lawyer's current rate of pay.

Salary Treatment for "Unsatisfactory" Performance

26. Where performance has been assessed as "unsatisfactory", the individual shall not receive any salary increase. For example, an LA-3A with an "unsatisfactory" rating who is earning $105,000 on March 31, 1998 will continue to be paid at that salary after April 1, 1998.

Salary below New Range Minimum

27. If the performance rating is "unsatisfactory" and the individual's current (March 31, 1998) salary is below the new range minimum applicable to his or her level, the individual will remain at that rate of pay. For example, an LA-3A earning $82,800 will continue to be paid at that salary although it is less than the new LA-3A minimum of $86,975.
28. Similarly, a lawyer who receives a salary adjustment of 3% with a performance rating of "satisfactory" may have a new salary that is below the range minimum. An LA-3A who is earning $82,800 on March 31, 1998 and whose rating is "satisfactory" may receive a salary increase up to 3%. The full 3% would produce a new salary of
    $85,284 effective April 1, 1998, which is below the new LA-3A minimum of $86,975.

Salary Range Revisions for Lawyers on Leave without Pay (LWOP)

29. The salaries of lawyers on LWOP should be recalculated, for record purposes only. Departments should calculate the new salaries as if the lawyer had received a "fully satisfactory" performance evaluation.
30. In the case of an LA-3A earning $99,750 before proceeding on LWOP, the application of the 5.04% increase will produce a new salary of $104,780. If the employee returns to Public Service employment following the period of LWOP, he or she will be paid at the new salary.

D ROUNDING SALARY CALCULATIONS

31. Note that all final salary calculations in the examples in Annex "F" reflect a practice of rounding to the nearest multiple of $100. There have been numerous requests for Treasury Board Secretariat to provide direction to departments on the rounding practice to use when calculating salary revisions. In the interests of ensuring consistency across the Public Service, departments should adopt this approach.
32. Rounding is to be applied once only. After applying any performance-related in-range increase to base salary through the performance pay exercise and having then calculated the salary to reflect the new salary range structure, the final salary figure should be rounded to the nearest multiple of $100. This application is evident in the examples in Annex "F".

E. REPORTING REQUIREMENTS

Reports on the application of performance pay and salary range revisions are to be sent, by November 30, 1998, to the following address:

Reports are to be submitted in the specified format noted in Annex "D", either in Excel, or as a flat ASCII file. You may refer enquiries to the Executive and Excluded Groups section at (613) 952-3278 or (613) 957-2400.

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ANNEX D

REPORTING FORMAT

Field name		Width	Contents	Example
DEPT		3	Department	TBS
PRI		8	Personal Record Identifier	78376587
FNAME		20	Employee family name	Martin
INIT		3	Employee Initials	JS
CLASS		4	Employee Group and Level	LA3A
JRATE		6	March 31 job rate (range maximum)	105000
MARCH 31, 1998 SALARY		6	Employee's salary at March 31, 1998	85000
RATING			Performance rating:
	1		Outstanding:                                5	3
			Superior:                                     4
			Fully Satisfactory:                        3
			Satisfactory:                                2
			Unsatisfactory:                            1
			Unable to assess:                        0
PERF BASE INC $	6		Performance award applied as base salary increase, in $	4250
PERF LUMP SUM $	6		Performance award applied as a lump sum amount, in $	0000
REVISED SALARY	6		New base salary after performance pay	89250
RANGE REVISION $	6		Salary range increase, in $	4498
FINAL SALARY APRIL 1, 1998	6		Revised base salary after range revision (rounded to nearest $100)	93700

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ANNEX E

PERFORMANCE PAY BUDGETS: SMALL DEPARTMENTS

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ANNEX F

EXAMPLES

 

 

 

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MEMO

DATE:  September 24, 1998

To:  Directors of Human Resources

SUBJECT:  Performance pay and Salary revisions for the Excluded Law Group

The Treasury Board has approved the application of performance pay for fiscal year 1996-97 effective July 1, 1997 and 1997-98, effective April 1, 1998 for the Excluded Law Group.

The Treasury Board has also approved salary range revisions for LA Developmental, LA-1, LA-2A, and LA-2B levels effective July 1, 1997 and April 1, 1998 and for levels LA-3A, LA-3B and LA-3C effective April 1, 1998.

Performance review and employee appraisals are in respect of fiscal years 1996-97 and
1997-98. Performance payments are associated with those periods.

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

The new salary ranges for the Excluded Law Group can be found at Annex "A".

For instructions regarding performance pay and salary range revisions for LA Developmental, LA-1, LA-2A and LA-2B levels see Annex "B".

For instructions regarding performance pay and salary range revisions for LA-3A, LA-3B and LA-3C levels see Annex "C".

You may contact the staff of Executive and Excluded Groups at 952-3278 or 957-2400 if you require further information.

 

À signé l'original/Original signed by

 

Cheryl Fraser
Assistant Secretary
Human Resources Management Division
Human Resources Branch

Enclosures