Annual Pay Increase for 2011

[SeaKingTacco]

I remember that one.  That was some sweet back pay.

 

[Pusser]

No, we won't see a pay raise like we did c. 1999.  That was a result of a re-working of the pay comparability formula.  The new formula was actually re-worked prior to the pay freeze c. 1995 when it was noticed that on average, the CF was as much as 14% behind where we were supposed to be compared to the Public Service.  However, giving the CF a 14% raise when the rest of the government was smacked with a pay freeze was seen as unpalatable and so it was applied in phases after the freeze was lifted.  It was a nice increase, but was also a one-time fix.  It should also be noted that although the federal government froze pay, some provincial governments were actually cutting pay and putting pressure on the federal government to do the same.

 

[Occam]

It's not as simple as that.  We're not paid based on any average of PS salaries.  Our pay is benchmarked against the Public Service, but a complex formula then kicks in to determine what our pay will be.  I'm leaning toward thinking that we will receive a pay raise eventually, backdated to 1 Apr 11 with another one effective 1 Apr 12.

Yes, I'm familiar with the process.  For anyone who is not, there's some good reading at http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pay-sol/faq/index-eng.asp, which should explain everything that goes into the complex formula.

Normally, I would agree with you that the CF would get at least something in the line of a pay increase.  However, many of the PS unions who have ratified agreements this year have had to give up severance pay benefits (not an insignificant chunk of change), and who knows how that's going to affect the calculation.

 

[dapaterson]

Yes, I'm familiar with the process.  For anyone who is not, there's some good reading at http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pay-sol/faq/index-eng.asp, which should explain everything that goes into the complex formula.

Normally, I would agree with you that the CF would get at least something in the line of a pay increase.  However, many of the PS unions who have ratified agreements this year have had to give up severance pay benefits (not an insignificant chunk of change), and who knows how that's going to affect the calculation.

As I recall, PSAC surrendered severance for an additional 1% over two years.  Their settlement was 1.75% in the first year, 1.5% the second, and 2% in the third.

As PSAC is one of the largest public sector unions, I expect the CF increase will closely mirror the PSAC settlement.

 

[CountDC]

dang DAP , when I saw a new post by you I was hoping it was some new info on an increase.

I agree with you - I am expecting a CF increase close to the PSAC.  Doesn't hurt that the Cost Factor Manual has a 1.5% already in it. Tells me someone else is thinking the same.

 

[AliG]

With regard to Severance pay. The rumour under this mushroom is that it will no longer accrue effective this budget (1 Apr). Is that not the equivalent of a near 2% salary envelop cut? If there is a pay increase in the budget along with the freeze on severance, then in order to be effective would this pay increase need to be above this amount and CPI ???

 

[Stoker]

With regard to Severance pay. The rumour under this mushroom is that it will no longer accrue effective this budget (1 Apr). Is that not the equivalent of a near 2% salary envelop cut? If there is a pay increase in the budget along with the freeze on severance, then in order to be effective would this pay increase need to be above this amount and CPI ???

Chief Clerks were briefed in Halifax that the severance is going away as of April 1st. What I suspect the government is waiting until the budget comes down until they officially announce it. Wait and see I guess.

 

[krustyrl]

Can either of you please put in "laymans terms" accrued in respect to severance.?  How might it affect someome ready to pull the pin.....like ME.!!

 

[dapaterson]

Can either of you please put in "laymans terms" accrued in respect to severance.?  How might it affect someome ready to pull the pin.....like ME.!!

Depends on your situation.  How many years in?  Prior Res svc?  Prior Reg svc?

Everyone's situation is different.

 

[krustyrl]

PM inbound

 

[Occam]

For Reg Force, the quick and dirty calculation of severance pay on release is one week's pay for every completed year of service.  You served 26 years?  You get 6 months pay on release.  It's slightly more complicated than that but it's pretty close.  If you want the nitty gritty details see CBI 204.40.

If (!) they pull severance pay on 1 Apr, and you had completed 26 years of service prior to that date, then you'd have accrued 26 weeks of severance pay, which, if they copy the terms given to the Public Service unions who gave up severance, would mean you'd have the option of taking the money then or taking it when you release.  Either way, you would not accrue any more severance pay, even if you served additional full years of service.  Those joining up would not be entitled to severance pay in its current form.

 

[dogger1936]

Do the retiring members of the forces get any benefit from not getting the severance? I.E was it traded for something? Do we get anything?

 

[krustyrl]

On behalf of all "laymans" thanks Occam.!

 

[dapaterson]

For Reg Force, the quick and dirty calculation of severance pay on release is one week's pay for every completed year of service.  You served 26 years?  You get 6 months pay on release.  It's slightly more complicated than that but it's pretty close.  If you want the nitty gritty details see CBI 204.40.

If (!) they pull severance pay on 1 Apr, and you had completed 26 years of service prior to that date, then you'd have accrued 26 weeks of severance pay, which, if they copy the terms given to the Public Service unions who gave up severance, would mean you'd have the option of taking the money then or taking it when you release.  Either way, you would not accrue any more severance pay, even if you served additional full years of service.  Those joining up would not be entitled to severance pay in its current form.

Sounds about right.  The PS unions that gave it up did retain it for workforce adjustment situation - folks being laid off.  (No double dipping though, so if they cashed out, on getting laid off the years they alread cashed out would be removed).

Were I a betting man I'd guess any change to the CF severance would follow the same lines... so any future FRP would give CF member severance (less what they may have already taken).


Dogger:  Assuming these stories are true, you'll get severance for your years of service up to the date it was cancelled.  The PSAC settlement got an additional 0.5% for each of two years in their pay increases; I'd guess the CF pay increases will be similar if not identical.

 

[Occam]

On behalf of all "laymans" thanks Occam.!

You're welcome.  If you haven't already, look into a SCAN seminar.  They do an excellent job of detailing all of your benefits on release, in general terms anyways.  I just released this past Sept and I'm glad I got the opportunity to take the SCAN seminar a few times over the last 10 years just to keep up with the changes in policies.  The severance pay is great - as long as you're able to protect it from the taxman!  (Which is a topic best left to a financial planner.)

 

[AliG]

Dogger:  Assuming these stories are true, you'll get severance for your years of service up to the date it was cancelled.  The PSAC settlement got an additional 0.5% for each of two years in their pay increases; I'd guess the CF pay increases will be similar if not identical.

From http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pay-sol/faq/index-eng.asp

In the late 70s, Treasury Board directed that the Department adopt Total Compensation (TC) analysis, which was also being developed for use in collective bargaining with the PS unions. Treasury Board wanted to ensure that the full value of the compensation and benefits made available by the employer to federal public servants was considered in negotiations. The methodology includes salary, but also evaluates benefits such as pensions, severance pay, acting pay, overtime and medical and dental services, as well as "time not worked", annual leave and sick leave being two examples.

This goes back to what I wrote above. Is not removing the severance pay actually a cut in the salary envelope; a cut that will probably not be covered by any "extra" increase? All I'd be asking on this is for HQ to be forthcoming on this and call it what it really is if this is it. Then again, until the Canforgen is cut it's all speculation.

 

[dogger1936]

Sounds about right.  The PS unions that gave it up did retain it for workforce adjustment situation - folks being laid off.  (No double dipping though, so if they cashed out, on getting laid off the years they alread cashed out would be removed).

Were I a betting man I'd guess any change to the CF severance would follow the same lines... so any future FRP would give CF member severance (less what they may have already taken).


Dogger:  Assuming these stories are true, you'll get severance for your years of service up to the date it was cancelled.  The PSAC settlement got an additional 0.5% for each of two years in their pay increases; I'd guess the CF pay increases will be similar if not identical.

Thanks.

 

[jollyjacktar]

Chief Clerks were briefed in Halifax that the severance is going away as of April 1st. What I suspect the government is waiting until the budget comes down until they officially announce it. Wait and see I guess.

Have also heard talk of a 2% back dated to last April to take some of the sting out.  Also hearing PLD is getting chopped in half as well.

 

[Pat in Halifax]

Have also heard talk of a 2% back dated to last April to take some of the sting out.  Also hearing PLD is getting chopped in half as well.

The chopping in half of PLD has been the rumour the last 3 or 4 Aprils. I suppose if something is rumour long enough, it will eventually come to fruition!

 

[PMedMoe]

Have also heard talk of a 2% back dated to last April to take some of the sting out.

This is what I've heard as well.

Also hearing PLD is getting chopped in half as well.

Darn, so I'll only get $3.00 per month instead of $6.00.  :'(