Questions and Answers
Service Delivery Agent II (SDA-II) Grievances
Prepared by
Centers of Expertise
Labour Relations and
Compensation and Benefits Services
April 2013
Questions and Answers – SDA-II Grievances
Table of Content
BACKGROUND INFORMATION 1
1. When were the grievances filed and by whom? 1
2. Why were the original grievances filed? 1
3. What led to the department’s decision to settle the remaining grievances? 1
4. What period of time does the settlement cover? 1
5. What is the intent of the settlement and who is included? 2
COMPENSATION 2
6. How was the lump sum calculated for each employee? 2
7. How does the settlement affect the Pay Equity and equalization adjustments payments received? 2
8. Is the settlement amount pensionable? 2
9. Will the amount of the payment be distributed to the earnings of previous years to allow the adjustment of pensionable service (year-by-year)? Or will it be considered a pensionable earning for the year the payment was received 3
10. Will my severance pay that I received at retirement be recalculated based on the SDA-II agreement? 3
11. Will Superannuation Benefits be adjusted as a result of the settlement? 3
12. When will the settlement payments be issued? 3
13. The amount of my payment is different than the amount stated in my letter. 3
14. How will this payment affect employees’ taxes? 4
15. Will my lump sum payment meet the requirements for the‘’Qualifying retroactive Lump Sum Payments (QRLSP)’’ for an income tax recalculation? 5
16. How do I request an income tax recalculation or obtain additional information regarding a QRLSP? 5
OTHER 5
17. What is happening with the grievances I filed? 5
18. I do not feel my grievance was addressed through this settlement payment. What can I do? 5
19. Will this settlement have an impact on the Service Delivery Agent 1 (CR-04) employees? 6
20. How does this settlement affect grievances on SMSM work descriptions? 6
21. Why do I have to sign a Release? 6
22. Resolution of errors 6
23. Where do I return my Release? 7
24. Questions not addressed in this document 7
Questions and Answers – SDA-II Grievances
ISSUE: Service Delivery Agent II (SDA-II) grievances
BACKGROUND INFORMATION
1. When were the grievances filed and by whom?
Some of the grievances date back to 1995, however, the bulk of the grievances were filed between 1996 and the present. The grievances were filed by Service Delivery Agent II (SDA-II) employees.
2. Why were the original grievances filed?
Employees in the SDA-II position worked under one generic work description implemented in 1994, classified at the CR-05 group and level. This national generic work description applied to three service delivery channels in Income Security Programs (ISP) that consisted of processing, call centre and counter/in person services. The SDA-II employees filed a job content, acting pay and classification grievances alleging the work description was not an accurate description of the duties they performed.
3. What led to the department’s decision to settle the remaining grievances?
In late 2009, a group of employees referred their outstanding grievances to adjudication. The department and union (Public Service Alliance of Canada) wanted to collaborate to address all outstanding grievances in the SDA-II community, rather than only resolving the issues at adjudication for this one group.
4. What period of time does the settlement cover?
The settlement covers the period from April 1, 1996 to September 13, 2006. As of September 14, 2006, the formal Service Canada Service Management Structural Model was implemented, which created new tasks and new work descriptions were put in place.
5. What is the intent of the settlement and who is included?
The intent of the settlement is to compensate those employees, not already compensated, who occupied an SDA-II position within the Canada Pension Plan (CPP) and/or Old Age Security (OAS) programs during the period April 1, 1996 to September 13, 2006 and to settle all grievances related to the SDA-II work description.
COMPENSATION
6. How was the lump sum calculated for each employee?
The lump sum was calculated using the promotion rule and was based on the difference between the maximum of the CR-05 pay ranges to PM-02 pay ranges during the period from April 1, 1996 to September 13, 2006 minus the estimated average pay equity payout and multiplied by the number of days the employee occupied an affected SDA-II position.
Each eligible employee shall be paid a lump sum payment calculated on the basis of a set amount per day ($13.72), for each day that the eligible employee occupied an SDA-II position. If an eligible employee worked part-time his or her payment shall be pro-rated based on the number of hours such employee occupied an SDA-II position, however, the calculation of the number of days worked does not include overtime hours or periods of leave without pay.
The number of days worked in an SDA-II position by each employee was determined through CMS data extracts and management consultation.
Reference: Directive on Terms and Conditions of Employment:
http://publiservice.tbs-sct.gc.ca/pol/doc-eng.aspx?section=text&id=15772#appA
7. How does the settlement affect the Pay Equity and equalization adjustments payments received?
The Pay Equity and equalization adjustment payments received for the period of April 1, 1996 to April 1st, 1999, have been considered when we established the average lump sum amount.
8. Is the settlement amount pensionable?
Yes, if the period worked in an SDA-II position was pensionable.
9. Will the amount of the payment be distributed to the earnings of previous years to allow the adjustment of pensionable service (year-by-year)? Or will it be considered a pensionable earning for the year the payment was received
The payment will be considered a pensionable earning for the year it was received in.
10. Will my severance pay that I received at retirement be recalculated based on the SDA-II agreement?
No, since the salary has not been revised
11. Will Superannuation Benefits be adjusted as a result of the settlement?
The Public Service Pension Centre (PSPC) will be informed of the pensionable lump sum payment once the payment has been processed by the Compensation and Benefits services and the PSPC will adjust the benefits if applicable.
12. When will the settlement payments be issued?
Payments to active and former employees of the department will be made within 90 days from the date the signed release form is received by the department.
For any other employees still active in or who has resigned/retired from another department/agency within the public service; payments will be issued by the current department/agency at their earliest convenience.
13. The amount of my payment is different than the amount stated in my letter.
Letters will be issued to affected employees with the gross settlement amount they can expect to receive. All statutory deductions will be taken off this amount. To determine the exact net amount and amount of deductions that were taken off the settlement; you will need to verify your pay stub or Compensation Web Application for active employees at the following web site: http://www.tpsgc-pwgsc.gc.ca/remuneration-compensation/awr-cwa/txt/index-eng.html.
14. How will this payment affect employees’ taxes?
A waiver letter from Canada Revenue Agency (CRA) or, if applicable, a waiver letter from Ministère du Revenu du Québec (MRQ) is required to waive the tax on payments other than retiring allowances such as lump sums, retroactive salary revisions and vacation and compensatory leave payouts.
It remains the employee's responsibility to deposit these monies into the RRSP since the employer has provided the authority to transfer only retiring allowances and the return of contributions.
To request a tax waiver, you must complete the following forms and forward them to your tax center:
CRA Request to Reduce Tax Deductions at Source:
http://www.cra-arc.gc.ca/E/pbg/tf/t1213/README.html
MRQ Application for a Reduction in Source Deductions of Income Tax:
http://www.revenu.gouv.qc.ca/en/sepf/formulaires/tp/tp-1016.aspx
Note: If you intend to request a reduction of tax deductions at source prior to the payment being issued, please ensure you check off the appropriate box in the release document.
Payments will not be cancelled and reissued if this information is not provided in the release document.
As soon as you receive your waiver letter, please forward a copy to the Compensation and Benefits Services for action at the following e-mail address:
or by mail at:
HRSDC
Compensation
1001 de Maisonneuve Boulevard East, Floor 2
Montreal, QC, H2L 5A1
For any questions or concerns on income taxes, employees should contact their regional CRA or MRQ office or a personal financial advisor as each case may vary.
15. Will my lump sum payment meet the requirements for the “Qualifying retroactive Lump Sum Payments (QRLSP)’’ for an income tax recalculation?
The lump sum payment employees will receive MAY qualify; this will be determined by CRA or MRQ. Therefore employees receiving a lump sum payment of at least $3,000 for CRA or at least $300 for MRQ; will be provided from the Compensation and Benefits services with a completed form (T1198 E) for CRA or a written statement for MRQ which should be used to request a recalculation of their income tax.
16. How do I request an income tax recalculation or obtain additional information regarding a QRLSP?
Employees should contact their regional CRA or MRQ office
http://www.cra-arc.gc.ca/menu-eng.html
http://www.revenuquebec.ca/en/default.aspx
OTHER
17. What is happening with the grievances I filed?
As part of this settlement agreement entered into with your union representative, all grievances related to the SDA-II positions are to be withdrawn.
18. I do not feel my grievance was addressed through this settlement payment. What can I do?
The union and management, as well as representatives from HR and ISP programs all thoroughly reviewed the outstanding grievances in the department to identify those relating to SDA-II issues before agreeing to close the files. Both parties feel that the settlement payment addresses the issues contained in those grievances. You are always free to consult with your union representative if you are not satisfied.
19. Will this settlement have an impact on the Service Delivery Agent 1 (CR04) employees?
No. Grievances filed by the Service Delivery Agents 1 and the issues they grieved will be dealt with separately.
20. How does this settlement affect grievances on SMSM work descriptions?
This settlement is separate from the issues grieved relating to the new Structural model work descriptions distributed in 2008 (Payment Service Officer and Client Service Officer). These work descriptions replace the former Payment Service Agent and Client Service Agent work descriptions as of September 14, 2006. Discussions with the union are ongoing and hearings are being scheduled in the near future to address all outstanding SMSM job content grievances. If you have any questions related to these proceedings, please contact your union representative.
21. Why do I have to sign a Release?
There are several reasons why the Employer is requesting that employees sign a Release. The Release is unique to each employee as it will illustrate the number of days they worked and the gross lump sum payment they will receive. Due to the large volume of affected employees across Canada who have since transferred to another department, retired or resigned, etc., the Release will act as a tracking mechanism to identify which employees have been paid and which have not.
Lastly, the Union does not have the authority to withdraw an employee’s classification grievance. The intent of the Release is to request employees who have filed SDA-II classification grievances to withdraw their grievance.
If an eligible employee does not sign the Release, a payment will not be issued.
22. Resolution of errors
If an eligible employee identifies a potential error in the number of days specified in the Notice of Payment, that employee is entitled to send a request for review (Request). This request must include documentation that establishes the alleged error and be sent to CEIU or to the Department, no later than thirty (30) calendar days following the date that such employee received the Notice of Payment. No Request shall relate in any way to the formula used to calculate the amounts to be paid by the Employer.
Upon receipt of a Request, the Employer shall review the file and provide a written response.
23. Where do I return my Release?
A copy of the signed Release must be returned via regular mail to the following address:
Center of Expertise in Labour Relations
200 Promenade du Portage
Place du Centre, Level 2
Door 0990, Bag 070
Gatineau, Quebec
K1A 0J9
24. Questions not addressed in this document.
For inquiries not addressed in this document employees may send their questions to the following inbox: .
7
Page