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Special advice to crown corporations 2017-001

Subject: PWGSC-TPSGC 4242 Additional instructions

Date: November 30, 2017

The purpose of this special advice is to provide additional instructions on how to complete the new Termination/Retirement Debt Recovery 4242 form (accessible only on the Government of Canada network) to Crown corporations and territorial governments, not using the new Phoenix pay system. The instructions below replace the compensation directive 2011-003.

The Compensation Advisor is responsible for completing and certifying all parts of the PWGSC-TPSGC 4242 form and it for each termination/retirement case for employees paying into the pension plan. The original form must be completed when account is finalized and forwarded to the Government of Canada Pension Centre within 30 business days of a termination of employment transaction or within 5 business days of a request from the Pension Centre.

Note:

The PWGSC-TPSGC 4242 form should be completed by the Compensation Advisor and only sent to the Pension Centre once all member payments have been issued and all debt recoveries (that is from any payments) have been completed.

Table 1: Section A: Account status
No. Field name Required information
1 Department

Record the first 3 letters of the organization of the terminating employment.
2 Pay office

Record the pay office of the terminating employment.
3 Paylist

Record the 4 digits of the paylist of the terminating employment.
4 Effective date of termination

Calendar day immediately following the last working day the employee actually worked.

Note: If the employee is on leave without pay (LWOP) at termination, the termination date is the day following the effective date of the employee’s resignation. The Pension Centre will request an amendment if it is determined that an alternate date is required for pension purposes.

Table 2: Section B: Final annual salary/pensionable allowances
No. Field name Required information
1 Final annual salary

Record the final annual salary at termination.
2 Final classification and level

Not required for non-phoenix organizations.
3 Pensionable allowance code

Only record allowances that were deemed as the member being entitled to at date of termination.

Example:

  • The effective date of the termination is June 1, 2016
  • A lump sum payment is paid on the final payment, with the effective dates of January 4, 2016 to March 31, 2016
  • Do not report allowance(s) in this scenario
4 Amount
  • Record the pensionable allowance.
  • Do not record the amount found on the employee's paycheque, paid bi-weekly/monthly.
5 Rate base

Record the applicable rate base for the pensionable allowance.

Write one of the following options in this field:

  • Annual
  • Monthly
  • Hourly
  • Lump Sum
Table 3: Section C: Pension adjustment (PA) amount
No. Field name Required information
1 Year of termination only

Enter the year of termination only.
2 Pension adjustment amount (PA) for the year of termination

Enter the PA amount for the year of termination only:

If the year of termination is the current year, determine the PA amount using the Pension adjustment calculator found on the compensation community website;

If the year of termination is a previous year, determine the PA amount by viewing the pension adjustment box on the T4 slip (box 52).
Table 4: Section D: Debt to the Crown to be recovered from a pension payment
No. Field name Required information
1 Salary and allowances debt amount

For salary and allowances debt, refer to the PWGSC-TPSGC 4242 form’s instructions.
Table 5: Section F: To be completed by non-phoenix organizations when reporting debt to the Crown
No. Field name Required information
1 Organization name

Record the organization name for the applicable organization.

This information will dictate where funds are sent once a debt has been fully or partially recovered by the Pension Centre.
2 Reference number

Record the reference number (max. of 20 characters) for the applicable organization.

This information will be indicated to the cheque stub description sent to the organization, once a debt has been fully or partially recovered by the Pension Centre.
3 Name of the contact person

Record the name of the organisation's contact person.
4 Telephone number of the contact person

Record the telephone number of the organization's contact person.
5 Address

Record the address of the organization’s contact person.
Table 6: Section H: Balance of pension and SDB deficiencies to be recovered from benefit payment
No. Field name Required information
1 From-To

Validate LWOP ended prior to November 28, 2011.

Record the start and end dates for the LWOP in the applicable fields.
2 Deduction code

Non-applicable to non-phoenix organizations.
3 Balance owing

Report the balance owing.
4 Contribution type

Record contribution type:

  • LS – LWOP single
  • LD – LWOP double
  • D – Deficiencies for LWOP (SDB)
5 Fund

Record fund:

  • 1 – Fund 1
  • 2 – Fund 2 – Group 1
  • 3 – RCA – Group 1
  • 4 – SDB
  • 5 – Fund 2 – Group 2
  • 6 – RCA – Group 2

Note: Only complete these fields when the employee has LWOP ending prior to November 28, 2011 and Public Service Superannuation Act (PSSA) deficiencies were not paid in full. Report the balance owing as per below instructions.

Table 7: Section I: Pension and SDB arrears to be recovered from benefit payment
No. Field name Required information
1 Deduction code

Non-applicable to non-phoenix organizations.
2 Balance owing

Report the balance owing.
3 Contribution type

Record contribution type:

  • C – Current
4 Fund

Record fund:

  • 1 – Fund 1
  • 2 – Fund 2 – Group 1
  • 3 – RCA – Group 1
  • 4 – SDB
  • 5 – Fund 2 – Group 2
  • 6 – RCA – Group 2

Complete this section if the employee has outstanding pension arrears at the time of termination.

Section J: Certification

This form must be completed and sent to the Government of Canada Pension Centre when an account is finalized or when there is an amendment to the original.

Address

Public Services and Procurement Canada
Government of Canada Pension Centre—Mail Facility
PO Box 8000
Matane QC  G4W 4T6

Facsimile: 418-566-6298

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