All employees of the Program and Administrative Services Group (PA) and Education and Library Science Group (EB):

The purpose of this message is to provide you detailed information on the newly negotiated “Payment in lieu of Severance Pay” provisions found in the new PA and EB collective agreements, signed March 1, 2011.

All employees who are eligible to make an option under this new provision article 63.05 (see appendix) will receive a letter from their Compensation office no later than June 1, 2011 informing them of their Continuous Employment date and an example on how to calculate their estimated weekly salary. Both of these combined will allow employees to calculate the value of their “Payment in lieu of Severance Pay” and guide them in their payment option.

Once employees have been provided with this letter they will have until August 31, 2011 to choose one of the following options:

1.      as a single payment at the rate of pay of the employee's substantive position as of June 22, 2011, or

2.    as a single payment at the time of the employee’s termination of employment from the core public administration, based on the rate of pay of the employee's substantive position at the date of termination of employment from the core public administration, or

3.    as a combination of 1) and 2)

If you choose to receive a payment now (option 1 or 3), this payment will be deemed as employment income and will be taxable at source for the year in which the payment is made.  If you wish not to have any tax deducted at source, then you will have to submit a request for a tax waiver to the Canada Revenue Agency (CRA) and, if applicable, to Revenu Québec.

How to request the CRA and, if applicable, the Revenu Québec forms:

Request by means of a letter or by using the CRA form T1213 and, if applicable, the Quebec form T1016.

·         A Letter of Authority from the CRA and/or from the Revenu Québec is only valid for the calendar year for which it is issued.

·         For more information, employees are to consult:

1.      Your local tax office, call CRA at 1 (800) 959-8281 or visit the CRA Web site

2.    Revenu Québec at 1 (800) 267-6299 or visit the Revenu Québec Web site

IMPORTANT NOTE:  If the employee advises compensation that his decision is to accept option 1 or 3, (full or partial payment), he MUST attach his tax waivers to the option letter only if he has communicated with CRA (or Revenue Québec) to receive a letter to this effect.  Thereafter, this letter should accompany the option letter that must be returned to his compensation advisor before August 31, 2011.  If no tax waiver letter is attached, the payment in lieu of severance pay will be paid with tax deducted at source.

Should you have any questions on this, please direct any inquiries to your Regional Compensation advisor for more details.