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1998 April Report of the Auditor General of Canada

April 1998 Report—Chapter 1

Appendix A—Summary Description of Departure Incentive Programs

Incentive program1

Eligibility

Brief benefits description

Work Force Adjustment Directive (WFAD)

(From December 1991)

This option is available to surplus indeterminate employees.

  • Severance pay at layoff rates.*
  • Pay in lieu of unfulfilled surplus period for a maximum of six months' pay.
  • Separation benefit (one week's pay for each complete year of service to a maximum of 15 weeks). (This benefit was suspended from July 1995 to June 1998.)
  • Early Departure
    Incentive (EDI)

    (July 95 to June 98)

    This option is available to indeterminate employees (excluding executives) who have been declared surplus in "most affected" departments designated by TBS.

  • Severance pay at layoff rates.
  • Lump sum payment of:

    - 39 weeks of pay if employee has less than five years of continuous service.

    - 52 weeks of pay if employee has more than five years of continuous service.

    - up to 52 weeks if employee has more than five years of continuous service and is eligible for an unreduced pension. In addition, individuals receive Service Allowance, which consists of up to six weeks of regular pay based on an employee's age and continuous years of employment.

  • Early Retirement
    Incentive (ERI)

    (April 95 to March 98)

    This option is available to surplus indeterminate employees (including surplus execu tives) who:

  • have at least five years of pensionable service;
  • have at least 10 years of employment;
  • are at least 50 years old but not yet 60 by the time they leave the public service.
  • Severance pay at layoff rates. For executives: one week's pay for each completed year of service to a maximum of 28 weeks.
  • Separation benefit (one week's pay for each completed year of service to a maximum of 15 weeks). (This benefit was suspended from July 1995 to June 1998.)
  • Pay in lieu for a maximum of six months' pay.
  • Unreduced pension for employees age 50 to 59 who would otherwise have had their pension reduced by up to 50%.
  • Executive Employment Transition Policy (EETP)

    (May 95 to March 98)

    This option is available to surplus indeterminate executives.

  • Up to 44 weeks' salary (including severance pay) if the executive has less than 5 years of service.
  • Up to 90 weeks' salary (including severance pay) if the executive has more than 5 years of service but is ineligible for pension or eligible for a reduced pension.
  • Up to 70 weeks' salary (including severance pay) if the executive has more than 5 years of service and is entitled to an unreduced pension.
  • DND Civilian Reduction Program (CRP)

    (April 94 to March 96)

    This option is available to civilian employees affected by a work force reduction, base/facility closure or relocation of work.

  • Severance pay at the layoff rate as stipulated in the application of the collective agreement.
  • Lump sum payment (12 months of pay, paid in one lump sum upon termination of employment).
  • Cash supplement for those employees with 5 or more years of continuous employment. The combined payments not to exceed 104 weeks.
  • Departure allowance (one week's regular pay for each year of continuous employment to a maximum of 15 weeks or up to $7,000 training and education option).
  • DND Force Reduction Programs (FRP)

    (January 92
    to March 97)

    Regular force members are eligible for this option based on specific:

  • military occupation code;
  • rank;
  • years of service.
  • Severance pay (one week's pay for each completed year of continuous full-time paid service up to a maximum of 30 weeks or 210 days).
  • Special leave based on all periods of regular force as of commencement of retirement leave. Benefits vary from 90/180-270 days or 60 days if members are in last year of service.
  • RCMP Work Force Adjustment
    (RCMP-WFA)

    (From March 94)

    This option is available to regular and civil ian RCMP members (except executives and public service employees).

  • Severance pay (2 weeks' pay for the first complete year of service, and one week's pay for each additional complete year, to a maximum of 28 weeks. For employees who joined prior to 18 March 1976 the maximum increases up to 30.4 weeks for persons of 35 years or more regardless of whether they were released under WFA or retired voluntarily).
  • Pay in lieu of unfulfilled surplus period for a maximum of six months' pay.
  • Separation benefit (one week's pay for each complete year of service to a maximum of 15 weeks except substitutes).
  • Waiver of pension reduction penalties for early retirement. The magnitude varies depending on type of member, age and year of service, in accordance with the RCMP Superannuation Act .
  • RCMP - Executives

    Option available for all executives (except public service executives).

  • RCMP does not have a formalized Executive Employment Transition Policy. While its executive packages are determined on a case-by-case basis, the Force has tried to maintain parity with its RCMP-WFAD and the public service Executive Employment Transition Policy.
  • 1 Source: adapted from Treasury Board Secretariat guidelines, National Defence and RCMP documents.

    * Severance pay varies according to the reason for separation. For example:

    • Retirement = (1 week of pay) x number of years of continuous service to a maximum of 30 weeks.
    • Resignation = (1/2 week of pay) x number of years of continuous service to a maximum of 26 weeks.
      Nothing paid if less than 10 years of continuous service.
    • Layoff = (2 weeks' pay for the first year of continuous service) + (1 week's pay x the number of years of continuous service) with no maximum.