Salary Administration Policy - Management Trainee Group
(Publié aussi en français sous le titre Politique sur l’administration des traitements – Groupe des stagiaires en gestion)
Table of Contents
Policy objective	1
Policy statement	1
Application	2
Policy requirements	2
Monitoring	2
References	3
Enquiries	3
Appendix A – Management Trainee Salary Administration Plan	4
Appendix B – Salary Determination Tables (MM)	11
Appendix C – Terms and Conditions for Pre-Entry Language Trainees of the Management Trainee Program	12
Appendix D – Transportation, Temporary Accommodation, and Relocation Guidelines for Pre‑Entry Language Trainees of the Management Trainee Program:	17

Policy objective
To provide consistent salary administration for members of the Management Trainee Program
To support the program’s goals of:
–	offering management training to recent university graduates, leading to positions at the EX-minus-2 level, after successful completion of a five-year program; and
–	ensuring a pool of highly qualified middle managers from which senior management positions can be filled in the future.
Policy statement
On appointment, Management Trainees shall be paid at the rate for a Management Trainee-1 Level (MM-1); while in the program, participants are expected to earn promotion to the MM-2 and MM-3 levels at months 18 and 36 respectively, as well as qualify for an increment 12 months following promotion to the MM‑3 level.  All pay increases shall be subject to successful achievement of defined performance goals, as developed and assessed by departments.  In addition, participants must demonstrate specific competencies as defined by the Treasury Board Secretariat, and verified by departments and duly authorised promotion boards.  The salary administration plan (Appendix A) provides the means to achieve this; its chief provisions are:
–	the salary component of the Management Trainee Group compensation plan is based on an overall range with a minimum and maximum rate (Appendix B, table 2); within this overall range there are four pay rates; one for each of levels 1 and 2, and two for level 3.  Individual rates will be adjusted by the Treasury Board Secretariat whenever the overall range is modified;
–	trainees’ promotions and increments depend on achieving performance ratings of “fully satisfactory” or better, for each assignment; in addition, promotions will also depend on demonstrated competencies as defined in the MM selection standard, and verified by the trainee’s supervisor and promotion board; trainees who are progressing successfully in the program, will receive respective promotion and performance increases on the 18th and 36th month from time of appointment to the MM Group, and at the 12th month following promotion to the MM‑3 level;
–	trainees who are evaluated as less than “fully satisfactory”, may not proceed for promotional assessment; they also forfeit their performance increment if the evaluation is for the period between months 36 and 48; a trainee who gets a second evaluation of “satisfactory” or less, or fails to win promotion, must leave the program;
–	on termination of the program, an employee’s pay rate shall be subject to the relevant pay plan for the group and level of appointment, but with reference to this plan as prescribed in Appendix A.
NOTE:
All Management Trainees must have “CBC” level proficiency in the second official language before appointment to the Program.
Their terms and conditions are specified in Appendix C.
Application
This plan applies to members of the Management Trainee Group, former members at the time of their transitional appointment to another group in the Public Service, and those undertaking official language training in preparation for entry to this program.
Policy requirements
Deputy heads must implement the salary administration plan (Appendix A) by:
–	ensuring that the salaries of Management trainees are administered according to the plan, based upon each employee’s performance review and appraisal report, and promotion board decision;
–	providing all information, training advice and guidance required to implement and administer the plan;
–	obtaining prior written approval from the Treasury Board Secretariat when he or she believes that the salary administration plan guidelines should be exceeded.
Monitoring
Treasury Board Secretariat will regularly collect departmental salary administration data directly from the compensation system.  This will be used to assess the level of consistency in applying performance pay and salary range provisions of the plan.  Data will be screened by an exceptions identification program.  Departments will then be asked to investigate abnormal payments and, if appropriate, make the necessary corrections through changes to the trainee’s compensation file.
The following performance indicators will be used to evaluate departments’ adherence to the Plan:
–	promotion pay and the increment is granted only to participants whose performance for the foregoing year’s assignment is “fully satisfactory” or better, have been found qualified by a promotion board, and who are not receiving a holding rate of pay; and
–	participants do not exceed the rate for their respective level or time in the program.
The administration of the Plan will be monitored by the Treasury Board Secretariat and will be used in the assessment of departmental personnel administration practices.
References
Financial Administration Act, section 11(2)(d).
Enquiries
Enquiries about this policy should be referred to the responsible officers in departmental headquarters who in turn may direct questions regarding policy interpretation to:
	Canadian Forces, RCMP, Management Trainees and Students
	Classification and Excluded Groups Division
	Human Resources Branch
	Treasury Board Secretariat

Appendix A – Management Trainee Salary Administration Plan
1.	Purpose
This appendix presents guidelines for the consistent application of the Management trainee salary administration plan.
2.	Definitions
Holding rate (taux maintenu) – a special rate of pay exceeding the job rate for the number of successfully completed training years which may be paid to employees on transfer to the MM group.
job rate (taux normal) – the maximum rate of pay over a period of time available to a qualified employee whose performance in the job is at least “fully satisfactory”.
performance award (prime de rendement) – an increase in salary based on a fully satisfactory or better level of performance that results in upward positioning in the range (not to exceed the job rate).
promotion award (prime de promotion) – an increase in salary based on formally assessed level of management skills and performance that results in movement to the next training level (not to exceed the job rate).
Public Service (Fonction publique) – the departments and agencies listed in Part I, Schedule I of the Public Service Staff Relations Act.
relevant occupational group (groupe professionnel pertinent) –  means the occupational group to which the trainee is expected to graduate at the successful conclusion of the program.
retroactive period (période de rétroactivité) – the period commencing on the effective date of the retroactive upward revision in remuneration and ending on the date the revision is approved by the Treasury Board.
substantive range maximum (taux maximal du poste de titularisation) – the salary range maximum for the position to which an employee has been appointed under the Public Service Employment Act.
3.	Salary ranges
This salary plan consists of three ranges,  (Appendix B, Table 2).  These are defined as follows:
3.1	Entry and Training
The MM-1 rate equates to that of the maximum of the PM-1.  It accommodates university graduates appointed from outside the Public Service.
The MM2 and MM3 rates equate to the PM-2 through PM-4 level.  This range accommodates internal recruits and provides recognition for successful completion of training and development goals during a participant’s time in the program.  Participants are not to exceed this range, during their time in the program.
3.2	Attained
For those participants exiting before successful completion of this program, the “attained range” equates to the current range for the equivalent PM level achieved at the time of the participant’s exit as shown in Appendix B, Table 3.  As an example, if a participant departs during the fourth year of the program after “fully satisfactory” or better achievement for the preceding three years, the “attained range” will equate to that of a PM-3.
3.3	Graduate
This range equates to that of the PM-5.  It is to be used only when a participant has successfully completed the program and is ready for transition to a managerial position, normally classified at the EX-minus-2 level, as determined by the Treasury Board Secretariat.
4.	Salary range revisions
The timing and amount of salary range revisions for the MM Group will parallel those for the PM Group.  Departments will apply these revisions when notified by the Treasury Board Secretariat.
5.	Payment of retroactive remuneration
A retroactive upward revision in remuneration shall apply to employees, former employees, or in the case of death, the estates of former employees who were employed in the Public Service during the retroactive period.
Remuneration shall be paid in an amount equal to what would have been paid had the revision been implemented on the effective date.
The employer must advise the employee or the former employee of the retroactive revision by registered mail to the last known address.  The former employee, or in the case of death, the former employee’s representatives shall have thirty (30) days from the date of receipt of this letter to request in writing a retroactive payment.
6.	Employees on leave without pay
6.1	Salary Adjustment
A management trainee who is granted leave without pay for any period remains in the Program.
The salary of a trainee on such leave should be adjusted from time to time to preserve the trainee’s position in the salary range at the time the absence began.  Adjustments will occur when directions are given for revisions to the Management trainee salary ranges by the Treasury Board Secretariat.
6.2	Program Extension
Effective September 1, 1996, all leave of more than sixty consecutive working days will delay promotion, and graduation dates by adding the period of absence to the time remaining within the MTP.  This would not however preclude a trainee from otherwise being eligible from applying for positions or promotions nor would it preclude a review committee to conclude that a trainee meets the standards of appointment at the end of the program.
7.	Salary on appointment
Failure to meet the language and/or degree requirement or other appointment requirements on time, disqualifies a candidate from further program participation.
This plan shall be used to determine a person’s rate of pay following appointment to the Management Trainee group whether from outside or inside the Public Service, as well as persons transferring from the Canadian Armed Forces (CAF) or Royal Canadian Mounted Police (RCMP).
7.1	Appointment to the Management Trainee group from outside the Public Service
The entry rate for a participant appointed to the Group from outside the Public Service shall be the rate specified in Appendix B, Table 2.
7.2	Appointment to the Management Trainee group from other occupational groups
The Management Trainee program aims to recruit recent university graduates with little or no work experience.  Qualified Public Service employees with up to three years’ experience, however, are also included.  The salary plan for the program reflects this recruiting objective.
Appointment to the MM group from other occupational groups within the Public Service, is deemed a transfer for pay purposes; therefore, pay shall be calculated according to the transfer provisions contained in the terms and conditions of employment for employees outside the Executive Group.
Where the transfer rate is less than the rate payable on initial appointment from outside the Public Service, the trainee shall be paid the higher rate.
The ensuing starting rate shall fall within the range for the MM1 to MM3 levels specified in Appendix B, Table 2.
The deputy head may extend this provision to persons appointed from an organization specified as a participant in the Public Service Superannuation Act (PSSA), as well as the Canadian Armed Forces (CAF) and Royal Canadian Mounted Police (RCMP).
7.3	Starting salary in excess of MM entry rate
Where a trainee’s starting salary, on transfer, exceeds the entry rate, the trainee shall be held at the starting rate until it is exceeded by the rate for their respective successfully completed years of training (Appendix B, Table 2).  Those receiving holding pay may not receive promotion or performance awards, but do receive MM group rate revisions.
7.4	Starting salary in excess of MM training rate maximum
Because the program limits participation to those with little related work experience, there is no salary protection for persons whose former Public Service income exceeds the MM3 job rate.  Therefore, Public Service employees electing to enter the program under this circumstance must be counselled that the only increases they will receive during their training are those arising from occasional revisions to the MM pay rates.
8.	Acting pay
Management trainees are not entitled to acting pay because trainees will receive significant pay increases over the course of the program.  Additional payment for the immediate performance of higher value duties is, therefore, inappropriate for employees of this group.
However, once trainees have successfully completed their program, they are entitled to acting pay if requested to act in a position as an interim measure until their appointment to another group and level.
9.	Appointment following declaration of surplus or lay-off
Management trainees are subject to the Workforce Adjustment Directive.  Entitlement to the salary protection provisions of the directive shall be governed by the “attained level” provisions of this pay plan shown in Appendix B, Table 3.
10.	Appointment to other occupational groups
Participants moving to other occupational groups at or before the successful conclusion of their training program, will be paid in accordance with this pay plan  and the relevant collective agreement or terms and conditions of employment of the new position.
10.1	Prior to graduation
The trainee’s salary range to be used in fixing the pay of the new position will be the “attained level” at the time of program exit (Appendix B, Table 3).
If the participant’s current salary exceeds the attained level, the deputy head of the organization making the new appointment may use it instead of the “attained level”, should he or she decide circumstances warrant.
Restricting salary ranges on program exit to the degree of successful completion, ensures that those departing early do not unduly qualify for transfer to higher paying positions reserved for program graduates.
10.2	Upon graduation
For those participants who have successfully completed all the requirements of this program, the nominal maximum (Appendix B, Table 2) will be used to determine their salary on the next appointment.  That salary will be fixed in accordance with the promotion and transfer rule of the terms and conditions employment.
11.	Performance and promotion pay administration
The Public Service Commission can approve individual promotion awards.
Deputy heads can approve the individual performance awards.
Progression through the MM salary levels depends upon a performance assessment of at least “fully satisfactory” at the completion of each assignment, and on demonstrated competencies as defined in the MM selection standard , and verified by the trainee’s supervisor and promotion board.
Assignments may be for more or less than a year’s duration.  Promotion increases to levels MM-2 and MM-3 are payable on the 18th and 36th month from the trainee’s appointment date.  The trainee must, however, meet all promotion requirements.  Promotion pay will be made retroactive to the 18th or 36 month respectively, if the promotion is delayed for administrative reasons beyond the trainee’s control.
A Performance award is payable on the 12th month from promotion to MM‑3.
The timing of the performance award due to leave(s) of absence shall be governed by the relevant collective agreement.
Trainee assessments should be documented in relation to the performance and promotion expectations of each assignment in order to substantiate payment.
With the exception of those in a holding rate, no trainee shall receive a salary exceeding the job rate for the number of successfully completed years of training (Appendix B, Table 2).
Those in a holding rate are ineligible for performance increases and promotion awards, as appropriate.
11.1	Salary treatment for unsuccessful performance
There is to be no promotion increase or performance award for an unsuccessfully concluded assignment.  Persons who are evaluated as less than “fully satisfactory”, may not proceed for promotional assessment.  Persons rated less than “fully satisfactory”, if retained in the program, must complete another assignment before again being considered for a promotion or performance award.
11.2	Subsequent salary treatment
Subsequent performance improvement will merit a single increase/award but only from the date of assessment or promotion board.  Forfeiture or delay in an increment lowers aggregate earnings in the program and the “attained range” for fixing a salary on premature exit.  Following successful program completion, however, the trainee should attain the salary level of a new PM-5 or equivalent or EX-minus-2 as appropriate.
12.	Disqualification
A second rating of less than “fully satisfactory” disqualifies the participant for the balance of the program.
13.	Trainees not working in home organization
A trainee may be assigned outside the home department with the mutual agreement of the home department, and the host organization. The PSC must agree to central agency assignments which are financed through its fund.
The host department provides a performance assessment to the home department.
The home department is responsible for actions, promotion and performance pay.
14.	Authorization
The deputy head is authorized to determine increases in salary and to grant performance awards as prescribed in this plan, unless otherwise directed by the Treasury Board Secretariat.
15.	Confidentiality
As a matter of government policy, disclosure is restricted to information on salary ranges.  The specific salary paid to persons in a performance pay plan may be disclosed only to the those public servants whose work requires access to such information.

Appendix B – Salary Determination Tables (MM)
Numerical code
99 400 MM AIO 00 Table 1: Ab Initio Annual Allowance
Annual rates of pay
A) Effective June 21, 2003 (2.5%)
B) Effective June 21, 2004 (2.25%)
C) Effective June 21, 2005 (2.4%)
D) Effective June 21, 2006 (2.5%)
		Ab Initio	MM-01
(Entry)	MM-02
(18 Months)	MM-03
(36 Months)	MM-03
(48 Months)	MM-03
(60 Months)	
	From	35,221	44,026	47,260	53,309	55,495	61,312	
	A	36,102	45,127	48,442	54,642	56,882	62,845	
	B	36,914	46,142	49,532	55,871	58,162	64,259	
	C	37,800	47,249	50,721	57,212	59,558	65,801	
	D	38,745	48,430	51,989	58,642	61,047	67,446	

Notes
(1)	An MM‑1 employee moves to MM‑2 level after 18 months in the program, to the MM‑3 level 1st step after 36 months, and to MM‑3 2nd step after 48 months.  Participants on the 5-year version of the program move to MM‑3 3rd step after 60 months in the MTP program.
(2)	The nominal maximum of the MM‑3 is equal to that of the CO‑2 maximum, but participants’ actual salary, upon graduation, is limited to the 48-month or 60-month increment.  Only participants who have successfully completed the program and are considered graduates are eligible to use the MM-3 nominal maximum when deploying off the program.

Appendix C – Terms and Conditions for Pre-Entry Language Trainees of the Management Trainee Program
1.	Application
These terms and conditions apply to Management Trainee Program (MTP) candidates who must undertake official language training prior to being appointed to the MM Group.  With certain exceptions, candidates on language training have non-employee or “Ab Initio” (AIO) status and will not be retained in the MTP or the Public Service generally, if they do not become bilingual.
1.2	Term employees
Deputy heads may retain candidates’ services as term employees until language training starts.
2.	Exemption from Ab Initio Status
2.1	Indeterminate and term Public Service Employees
Candidates already having employee status under Part I Schedule I of the Public Service Staff Relations Act (PSSRA), or the Public Service Employment Act (PSEA), retain this status and remain subject to the terms and conditions of their substantive position for the duration of language training.  This includes the full provisions of the Travel and Relocation Directives.
2.2	Military, RCMP and PSSA Recruits
Candidates from the Canadian Armed Forces, the Royal Canadian Mounted Police, or an organization subject to the Public Service Superannuation Act, who held “member” or indeterminate employee status in that organization at the time they received the offer to take developmental language training preparatory to entering the MM Group, may be treated as indeterminate employees for purposes of income continuity and terms and conditions of employment.  The full provisions of the Travel and Relocation Directives, however, are limited by the Transportation, Temporary Accommodation, and Relocation Guidelines for Pre-Entry Language Trainees of the Management Trainee Program, found in Appendix D.  In this case, the respective terms and conditions will be those of the MM Group.
2.3	Continuing exemption
Other than for indeterminate employees, maintenance of the exemption is conditional upon meeting language training requirements, as well as being appointed to the MM Group at the conclusion of the language training phase.  If the conditions are not met, the exemption ceases and candidates will be removed from the Program without entitlement to further placement in the Public Service.
3.	Appointment
Upon receipt of level “C B C” in their second official language, candidates will be appointed to the MM Group as indeterminate employees.
4.	General Limitations
AIO candidates are not entitled to benefits such as:
–	long term disability insurance,
–	group life insurance,
–	Public Service Superannuation Plan membership, or
–	the recognition of the training period as “service” for benefit determination purposes, following appointment to the Public Service.
5.	Training Duration
The amount of time to complete training by each candidate will be determined by Language Training Canada (LTC), but shall not exceed 52 continuous weeks per participant.
6.	Study Hours
Candidates are to adhere to the attendance requirements established by their language school.  Candidates are also responsible for whatever additional hours of study are required to successfully complete their training program.
7.	Pay
Candidates will receive an allowance in lieu of pay for the time spent on language training.  The allowance will be disbursed by the host organization and will be equal to 80% of the Program entry rate.  Income tax, Canada Pension Plan or Quebec Pension Plan, and Unemployment Insurance premiums will be deducted from the allowance, which will be paid bi-weekly by direct deposit.  Payment of the allowance will continue as long as candidates remain in the training program, to a maximum of 52 weeks.  Closure of the training centre for designated holidays will not affect the allowance payment.
8.	Absence
Candidates’ allowances will continue when absent for reasons of personal illness, disability, or immediate family obligations.  Such absence shall not exceed .288 days per week or 1.25 days per month of paid training, to a maximum of 15 days over 52 weeks.
Deputy heads may advance all or part of the estimated paid absence period, as necessary.  Absence in excess of the actual earned leave period is without pay.  Recovery of an overpayment is the responsibility of the host organization.  Any unused time allotment is neither cashable nor transferable at the conclusion of language training.  Absence from class must be in accordance with LTC’s established practices.
9.	Language Training
9.1	Performance
Ongoing participation in language training is dependent on fully satisfactory performance, including continued academic achievement.  Candidates unable to meet the language training proficiency requirements of “C B C” in the second official language, in the allotted time, will be ineligible for the MTP.
9.2	Course locations
For language levels “A” and “B”:
LTC will train candidates in their second official language to proficiency levels  “A” and “B”, based on their residential location, in the following centres.
Charlottetown	Toronto	
Moncton	Winnipeg	
Halifax	Edmonton	
Quebec	Vancouver	
Montreal	National Capital Region (NCR)	
Training will be provided within a 2-hour (one way) commuting distance of the candidate’s residence.  Temporary accommodation will not normally be provided for levels “A” and “B”.  On a case by case basis, the Public Service Commission (PSC) will make special arrangements if candidates live outside commuting distance of an LTC centre.
For language level “C”
LTC will provide Level “C” training in the National Capital Region (NCR), Montreal, and Toronto.
9.3	Temporary Accommodation and Relocation
Temporary accommodation in the NCR will be provided to candidates who do not live within commuting distance (2 hours one way) of Toronto, Montreal, the NCR, or other locations where level “C” training is available.  Temporary accommodation is not to exceed 18 weeks, the maximum time allotted for level “C” language training.
Candidates whose first assignment will be in the NCR following language training, and who do not live within commuting distance of the NCR, Montreal, Toronto, or other locations where level “C” training becomes available, will be relocated to the NCR directly for level “C” language training, rather than be accommodated temporarily.
9.4.	Unsuccessful candidates
Candidates required to leave the Program for unsuccessful performance will be returned to  their previous place of residence.  Those in temporary commercial accommodation will be provided a return trip to their place of residence; those who relocated will receive the same assistance as for their initial relocation.
9.5.	Pre-emptive Departures
Candidates leaving training of their own volition prior to successful completion, or who do not accept employment in the MTP, will not be provided relocation assistance or a return trip to their place of residence
Claims for assistance from candidates leaving the Program under mitigating circumstances, will be reviewed on a case by case basis.
The “Transportation, Temporary Accommodation, and Relocation Guidelines for Pre‑Entry Language Trainees of the Management Trainee Program”, are found in Appendix D.  They are to be used in conjunction with the Government Travel and Relocation Directives.
9.6.	Funds
Funds for language training are administered under Public Service Commission (PSC) Vote 140 - (Treasury Board Minute 822650, March 16, 1995).
For external Program recruits, funds for temporary accommodation or relocation will also be covered by PSC Vote 140.
10.	Transitional Issues
10.1	Successful candidates
Following successful completion of language training, candidates are to be appointed to the MM-1 Group/level, and compensated in accordance with the MM Group salary administration policy.
10.2	Unsuccessful candidates
Indeterminate Employees:  Same department
In the event they cannot meet the “C B C” level requirement, indeterminate employees accepting developmental language training, preparatory to entering the MM Group in their home organization, should return to their former position or one of equivalent group and level.  In this situation, language training hours utilized are not to be counted.
Indeterminate Employees:  Different department
Candidates accepting developmental language training preparatory to entering the MM Group in another organization, should normally be on secondment during language training.  During language training, the host department pays the salary of the candidate’s substantive position.  Should they not meet the “C B C” level requirement, candidates have a right to return to their former position, or one of an equivalent group and level, in their home department.  In this situation, language training hours utilized are not to be counted.
Term Employees, Military, RCMP, and PSSA recruits
Unsuccessful language training candidates are not to be retained in the MTP, nor, as a general rule, are they to be retained within the Public Service.

Appendix D – Transportation, Temporary Accommodation, and Relocation Guidelines for Pre‑Entry Language Trainees of the Management Trainee Program:
1.	Transportation
Transportation, in accordance with the Government Travel and Relocation Directives, will be provided to:
1)	the National Capital Region (NCR);
2)	the place of residence and return to the NCR at mid-term (in accordance with the Relocation Directives, i.e. - to be reunited with immediate family dependants residing in the principle residence when two households are being maintained); and
3)	the place of residence, upon graduation, or termination for cause.
The mid-term trip will not interfere with candidates’ participation in class and will be over a weekend or holiday.
2.	Temporary Accommodation
Candidates not relocating to the NCR are entitled to commercial accommodation in a one-bedroom suite hotel in the NCR, for a maximum period of 18 weeks.  The Public Service Commission will determine the hotels for this purpose.  Alternate arrangements may be made, with PSC approval, in accordance with the Government Travel and Relocation Directives.
3.	Relocation
The following assistance will be provided:
1)	an accommodation-hunting trip for up to seven calendar days (all costs paid in accordance with the Government Travel and Relocation Directives);
2)	reimbursement of up to two months rent to compensate for the cancellation of a lease;
3)	reimbursement of moving expenses (personal and household effects);
4)	payment of expenses in travelling to the new location;
5)	payment of a lump sum for incidentals, i.e.:
	$500 for a load of 900 kg or more, or
	$200 for a load of less than 900 kg; and
6)	temporary accommodation for up to four calendar days while waiting for personal and household effects to be forwarded.
Refer to the Government Travel and Relocation Directives for specific information.
	Classification and Excluded Groups Division
	Human Resources Branch
	Treasury Board Secretariat