Frequently Asked Questions

All current and former PSAC-represented employees with service (substantive or acting) in the CR2, CR3, CR4 and/or CR5 class codes of Canada Post from August 24, 1982 to June 2, 2002. Full-time and part-time employees are eligible as well as indeterminate and term employees. Periods of unpaid leave as well as work performed outside one of the eligible class codes are not eligible.

Service in positions represented by the Canadian Union of Postal Workers (e.g. Letter Carriers, Mail Service Couriers and inside Postal Workers), Canadian Postmasters and Assistants Association (e.g. Postmasters) or Association of Postal Officials of Canada (e.g. Superintendents) is not eligible.

No, the pay equity adjustment applies to all eligible employees as described in question one.

No, you do not need to request a payment. Eligibility for payment is based on the criteria described in question one. If you are eligible, Canada Post will contact you. If you are concerned that Canada Post may not have the necessary information to process your payment, you can provide it by email at payequity@canadapost.ca or mail to the Pay Equity Team at Canada Post, 2701 RIVERSIDE DR SUITE B-432, Ottawa, Ontario, K1A 0B1. Provide as much information as possible, including your current mailing address, employee identification number, service dates, previous names and pay-related documentation.

No, the pay equity adjustment applies to all eligible employees as described in question one.

If you are eligible, Canada Post will contact you. If you are concerned that Canada Post may not have the necessary information to process your payment, you can provide it by email at payequity@canadapost.ca or mail to the Pay Equity Team at Canada Post, 2701 RIVERSIDE DR SUITE B-432, Ottawa, Ontario, K1A 0B1. Provide as much information as possible, including your current mailing address, employee identification number, service dates, previous names and pay-related documentation.

Yes, payments will be made to the estates of deceased employees who would have been entitled to a pay equity payment.

No. The decision of the Canadian Human Rights Tribunal applies only to PSAC-represented positions in the CR2, CR3, CR4 and CR5 classifications. Service in other classifications, such as CM, CS, EL, FI and OE, is not eligible for payment.

No. The decision of the Canadian Human Rights Tribunal applies only to PSAC-represented positions in the CR2, CR3, CR4 and CR5 classifications.

No. The decision of the Canadian Human Rights Tribunal applies only to PSAC-represented positions in the CR2, CR3, CR4 and CR5 classifications.

If you think that Canada Post may not have your name or current mailing address on file, please contact the Pay Equity team at payequity@canadapost.ca or:

Pay Equity Team
Canada Post
2701 Riverside Drive, Suite B-432
Ottawa, ON K1A 0B1

The wage gap has been calculated in accordance with the orders of the Canadian Human Rights Tribunal as well as the agreement reached between Canada Post and the Public Service Alliance of Canada.

A level-to-line regression methodology was used to compare the maximum wage rates of the CR classification with the maximum rates of the comparator group. Based on this analysis, an hourly wage gap was established for each eligible CR classification and year.

The order issued by the Canadian Human Rights Tribunal states that the award for lost wages be discounted by 50 per cent. Canada Post and the Public Service Alliance of Canada have agreed to apply the discount to the wage gap.

The wage gap has been applied to all eligible hours of service, including overtime and paid leaves. Periods of unpaid leave as well as work performed outside one of the eligible class codes are not eligible. Other pay-related benefits have also been adjusted, including:

• maternity/parental supplemental unemployment benefit (SUB) plan
• adoption SUB plan
• other SUB plan
• corporate team incentive
• severance
• stand-by pay
• pension
• month of death payment
• death gratuity payment
• vacation pay-out
• applicable life insurance and long-term disability payments

No, voluntary separation incentives are not eligible for adjustment.

Interest was calculated in accordance with the orders of the Canadian Human Rights Tribunal.

Simple interest has been applied to the principal amount less an amount equal to 10 per cent. Pre-judgement simple interest was calculated annually using the Canada Savings Bond rate in effect September 1 of each year concerned until October 6, 2005. Post-judgment simple interest was calculated using the rate of four per cent as prescribed by the Courts of Justice Act of Ontario from October 7, 2005 to the date of individual payment.

Interest was calculated on 90 per cent of the principal amount to reflect the difference between your gross pay and what you actually would have taken home. Because pay equity is wage related, the principle of applying interest on the amount of pay you would have received after tax and deductions is appropriate.

A three-step review process is available for any individual who believes there is an error in service calculation, allowance eligibility or payment amount. The wage gap methodology, wage gap rates, eligible classifications, eligible paid leaves, eligible pay-related adjustments and payment process which have been agreed to by Canada Post and the PSAC cannot be disputed.

For more information on how to request a review, please refer to the Memorandum of Agreement or the information package provided to you with or before your payment.

Eligibility and entitlement will be based on your protected (substantive) rate and level.

Completed files will be randomly selected for payment. Employees will begin to receive payments once their information is confirmed and files are processed. Due to the complexity of the pay equity process, completing payment to all eligible current and former employees will take time. It’s not possible to estimate when a particular individual will receive payment.

Canada Post has obtained approval from the Canada Revenue Agency (CRA) to offer an RRSP tax deferral form for an amount up to $10,000. You will be provided with the form and asked to complete and return it to the Pay Equity team before you receive your payment if you wish to participate in this option.

Yes, Canada Post will deduct all applicable income taxes, employment insurance premiums, Québec Parental Insurance Plan premiums, Canada Pension Plan premiums, Quebec Pension Plan premiums and territorial payroll taxes, adjusted Superannuation and/or Canada Post Corporation Registered Pension Plan contributions, applicable life insurance premiums and long term disability and disability insurance premiums.

Where an eligible individual is deceased, the pay equity payment will be issued to his or her estate.

A payment timeline has not been finalized. However, current employees will begin to receive payments first as their files were reviewed first.

Recipients with short-term service will receive a basic statement that identifies periods of service, classification level and deductions. Recipients with long-term service will receive a detailed statement that indicates the periods of eligible service, classification level, paid hours and entitlement to other pay-related adjustments. Additionally, the statement will show the interest amount and any applicable deductions.

If your payment was made before September 12, 2013, the following codes appeared on your pay statement:

• Code 1824 – total interest
• Code 1825 – total gross wage gap
• Code 2115 - total deductions for pension, disability and death benefit.

If your payment was made after September 12, 2013, the following codes will appear on your pay statement in the applicable section (earnings or deductions):

Current employees will have an RRSP tax deferral form sent to them before their payment is processed. A pay statement and information booklet will be issued after payment.

Former employees will receive a letter asking them to confirm their mailing address. As soon as Canada Post receives confirmation of the mailing address and the individual’s file has been processed, an information package will be sent out. The information package contains documentation, including banking and tax-related information, that must be completed and returned before payment can be issued. A pay statement will be issued once payment has been made.

Yes, where an overpayment or arrears situation exists, the full overpayment amount will be deducted from the final pay equity payment amount.

You can contact the Pay Equity team for assistance.

Your pay equity payment is taxed as earnings for the year in which you received the payment.

Income tax will not be deducted from the interest portion of your pay equity payment because CRA rules prohibit Canada Post from doing this. However, it is important to remember that the interest portion of your payment must be reported as income when you file your next income tax return. In most cases, the interest will be taxed when you file your return.

Canada Post has obtained an RRSP tax deferral form for an amount up to $10,000 from the Canada Revenue Agency. You’ll be provided with the form, which you should complete and return to the Pay Equity team before your payment is issued if you wish to participate in this option.

When processed, the RRSP Tax Deferral form will exclude at source up to $10,000 of your principal payment from tax calculations.

Signing and returning the form obliges you to deposit $10,000 or the principal amount of your payment (whichever is less) into your personal RRSP by the end of February in accordance with CRA regulations and deadlines. If your principal amount is less than $10,000, you must deposit the entire amount into your RRSP. If your principal amount is more than $10,000, you must deposit $10,000 into your RRSP.

It is your responsibility to ensure you do not exceed your annual RRSP contribution limit.

Your decision to defer tax from your pay equity payment can be based on the room you have available to you in your RRSP. It is suggested that you consult a financial advisor to help with your decision.

No, the tax deferral form can be processed only when your payment is processed in the pay system. You can still deposit the net value of your payment, if you have room in your RRSP, and receive the tax refund from CRA when you file your taxes at year end.

Your tax deferral form can be processed only when your payment is made in the pay system. If your form is received late it will not be processed. You will be advised by the Pay Equity team if your tax deferral form is received late and not processed.

You are responsible for depositing the money into your personal RRSP in accordance with the CRA deadline.

Canada Post will issue a T5 and/or RL3 statement, as well as a T1198 statement in the February following the date of payment. The appropriate statements will be issued for Quebec residents and non-residents.

You should contact the Canada Revenue Agency at 1-800-959-8281 or speak to a financial advisor.

It depends. Your pension benefit is calculated using a formula that includes your five best years of pensionable earnings. If your five best years fall within the period of the award (August 24, 1982 to June 2, 2002), your pension benefit may be adjusted.

Yes. An adjustment to your pension contributions will be calculated and deducted from your pay equity payment. The adjustment represents the amount of pension contributions you would have paid during the period for which you are receiving a wage gap adjustment. No further action is required on your part.

Exception: if you left Canada Post for any reason and received a return of contributions (the amount of your contributions plus interest), pension contributions will not be deducted from your pay equity payment.

No, your pay equity payment will not affect the payment for purchase of elective service.

No, Canada Post cannot apply your pay equity payment directly to the buy-back of pensionable service. Once you receive your payment, you can contact the Canada Post Pension Centre at 1-877-480-9220 to make payment arrangements.

If you were absent due to disability at any time between August 24, 1982 and June 2, 2002, you’ll have your disability benefits adjusted separately to account for the wage gap.

Yes. The necessary adjustment to your LTD/DI premiums will be calculated and deducted from your pay equity payment. No further action is required on your part.

An employee who died between August 24, 1982 and June 2, 2002 will have an adjustment paid separately to his or her survivors or estate.

Yes. The necessary adjustment to your SDB/BL premiums will be calculated and deducted from your pay equity payment. No further action is required on your part.

Please review the information package provided before or with your payment or visit the Canada Post pay equity website or the PSAC Pay Equity website:

Pay Equity Team
Canada Post
2701 Riverside Drive, Suite B-432
Ottawa, ON K1A 0B1
payequity@canadapost.ca
www.canadapostpayequity.ca
Fax: (613)734-8316

OR

Public Service Alliance of Canada (PSAC>
Canada Post Pay Equity
233 Gilmour St., 2nd floor
Ottawa, ON K2P 0P1
http://psacunion.ca/sujets/equite-salariale

Click here to view The Memorandum of Agreement