Policy Framework for the Management of Compensation

While the range of Treasury Board responsibilities regarding compensation vary across the different areas of the federal public administration, some of them apply across all areas:

• The Treasury Board is responsible for all matters relating to human resources management in the federal public administration, including the authority to determine terms and conditions of employment. The Treasury Board is also responsible for the terms and conditions of persons appointed by the Governor in Council whose terms and conditions of employment have not been established by an Act of Parliament.
• The President of the Treasury Board is the Minister responsible for the Public Service Superannuation Act and has overarching responsibility with respect to the financing and funding of all the federal public sector pension plans. Also, the President of the Treasury Board and/or the Treasury Board are responsible for certain discretionary decision-making under the legislation governing the plans.
• The Treasury Board has the authority to establish or enter into a contract to acquire group insurance or benefit programs for the federal public administration or any of its areas and to set the terms and conditions of those programs, including those relating to premiums, contributions, and benefits.

• Core public administration: The Treasury Board is the employer of employees in the core public administration. It has the authority to enter into collective agreements with bargaining agents and to set the terms and conditions of employment for executive and other unrepresented employees.
• Separate agencies: Separate agencies may exercise their own human resources authority granted by their enabling statute or by Order in Council. This authority may be unconditional or subject to conditions such as prior consultation with or approval by Treasury Board. Separate agencies are employers in their own right. Most separate agencies require the approval of the Governor in Council to enter into collective agreements with the bargaining agents representing their employees. By Cabinet directive, 1967, the Governor in Council requires separate agencies, in advance of bargaining, to obtain from the President of the Treasury Board their collective bargaining mandates, including the objectives to be pursued and the limits to be observed.
• Royal Canadian Mounted Police: The RCMP is listed in Schedule IV of the FAA as a part of the core public administration. The Royal Canadian Mounted Police Act provides the Commissioner of the RCMP with certain powers and authorities normally exercised by Treasury Board. However, the Treasury Board is responsible for establishing pay and allowances to be paid to members.
• Canadian Forces: The Treasury Board is not the employer of non-commissioned members of the Canadian Forces. However, the National Defence Act provides that Treasury Board is responsible for establishing pay and allowances of officers and non-commissioned members.
• Appropriation Dependent Crown Corporations: As part of the process for funding appropriation dependent crown corporations, adjustments are made to their annual reference levels to address increases in compensation costs at a rate determined by the Treasury Board.

The Treasury Board Secretariat is responsible for compensation planning in the federal public administration, for reporting on compensation and for ensuring that government decisions in the area of compensation are aligned with the principles laid out in the Policy Framework for the Management of Compensation.

The Secretariat is also responsible in its capacity of employer to implement decisions with respect to the core public administration except for decisions related to senior level officials and classification, which are under the responsibility of the Public Service Human Resources Management Agency of Canada. The Secretariat and the Agency are responsible for ensuring that government policies in the area of compensation are aligned with the principles laid out in this Framework.

The Department of Public Works and Government Services Act requires the Department to provide such administrative and other services required for the disbursement of pay, employee benefit plans and Superannuation or pension plans to persons employed in or by any department, and to persons employed in or by other portions of the federal public administration, as the Governor in Council may direct.

The Public Service Collective Agreements Implementation Order delegates to deputy heads the authority to exercise and perform such powers and functions of the Treasury Board as may be required to give effect to and administer the provisions of collective agreements, subject to any direction of the Treasury Board. The responsibilities of the Deputy Heads are specified in the policy documents and in the legislation identified in the policy documents.

Responsibility for the policies under the framework is divided between the Treasury Board Secretariat and the Public Service Human Resources Management Agency of Canada and is specified in the documents outlining the policies. The specific legislative, regulatory and policy instruments that support this framework are set out in Appendix 2.