Rescinded [2013-02-14] - Policy on Statutory Financial Reporting

1. All organizations and funds that the government owns or controls and that are accountable for administering their affairs and resources either to a minister of the government or directly to Parliament must report as part of the government entity.
2. As a reporting entity, the Government of Canada reports the financial activities of all its organizations and funds. This includes Crown corporations and their wholly-owned subsidiaries.

1. The financial information that departments submit to the Receiver General and which is included in the accounts of Canada form the basis for preparing the government's financial statements. The President of the Treasury Board and the Minister of Finance may make other adjustments to finalize the financial statements for the current year.
2. The financial transactions of the Government of Canada, as recorded in the accounts of Canada, are classified as budgetary and non-budgetary.
3. Budgetary transactions enter into the calculation of the government's annual surplus or deficit. Non-budgetary transactions lead to the acquisition or disposal of financial assets or to the creation or discharge of financial obligations (liabilities).

2.1 Budgetary transactions

2.1.1 Revenue

1. Government revenue consists of both tax and non-tax revenue, with most of it being taxes collected. Tax revenue is reported net of refunds and excludes taxes collected on behalf of provinces and territories, and amounts credited to other parties such as an Indian band for gas royalties.
2. The government generally reports tax revenue in the year in which it is received. Refunds of tax revenue are allocated to the year in which the assessment of the related tax return was started. Consistent with recommendations for governments issued in April 1993 by the Canadian Institute of Chartered Accountants, tax refunds are now accounted for on an accrual basis when related to cases that are both significant and unusual in nature, and where all applicable levels of appeal have been exhausted or are not expected to be pursued. The accrual portion is not recorded in the accounts of Canada by each department but by the Receiver General based on information provided by each department for Public Accounts purposes.
3. In addition to personal and corporation income tax, two other major sources of tax revenue are unemployment insurance premiums and the goods and services tax (GST). The Unemployment Insurance Act provides for compulsory premiums to the unemployment insurance program. Premiums on employers and employees are levied under this Act. It requires that all related revenue and expenditure be accounted for separately from other government transactions in a specified purpose account called the Unemployment Insurance Account. This account is subsequently consolidated into the summary financial statements. The account is intended to be self-financing through its premiums.
4. GST revenue is recorded as part of excise taxes and duties, net of the goods and services tax credits, refunds and rebates. GST tax credits are charged in the period to which they relate.
5. Non-tax revenue is reported in the year in which the transactions or events that give rise to the revenue occur.

2.1.2 Expenditure

1. Expenditure includes all charges that affect the annual deficit or surplus of the government. The bulk of government expenditure is made up of transfer payments to persons and other levels of government including grants and contributions, and public debt charges. It includes charges for work performed, goods received, services rendered and transfer payments made during the year.
2. Also added are net charges related to allowances for valuation of assets, for borrowings of agent enterprise Crown corporations and for other liabilities.
3. Section 83 of the Financial Administration Act defines an agent corporation as a "Crown Corporation that is expressly declared by or pursuant to any other Act of Parliament to be an agent of the Crown".
4. Consistent with recommendations for governments issued in April 1993 by the Canadian Institute of Chartered Accountants, a provision is now recorded and included in expenditure when a loan or a portion of a loan is expected to be recovered from future appropriations. The Government has also changed its method of accounting for premiums and discounts on marketable bonds and commissions on Canada savings bonds to deferral and amortization over the life of the debt instrument.

2.1.3 Specified purpose accounts (SPA's)

To provide a more comprehensive and complete summary of the full nature and extent of the financial affairs and resources for which the government is responsible, the transactions of certain specified purpose accounts, which are essentially government operations, are consolidated into the government's revenue and expenditure. For example, these transactions include those for the Unemployment Insurance Account, the Western Grain Stabilization Account and the Crop Reinsurance Fund.

2.2 Non-budgetary transactions

Non-budgetary transactions are those related to the government's financial claims on, and obligations to, outside parties. These consist of all transactions in loans, investments and advances; in cash and accounts receivable; in public money received or collected for specified purposes; and in all other assets and liabilities, including those related to foreign exchange and unmatured debt.

2.2.1 Assets

1. Assets are the financial claims acquired by the government on outside parties. They include cash or items that will be converted to cash or generate a cash return. However, as a result of the government's accounting policies described above, certain financial claims are not reported on the Statement of Assets and Liabilities. The most important of these is tax revenue receivable.
2. There are five main categories of assets that meet the above definition:
   1. Loans, investments and advances are in a class of financial claims represented by debt instruments and ownership interest that the government holds.
   2. Foreign exchange assets represent financial claims of the government resulting from Canada's foreign exchange operations.
   3. Accounts receivable reflect outstanding accrued financial claims arising from non-tax revenue transactions, net of allowance for doubtful accounts.
   4. The government's cash account represents public moneys on deposit on March 31 with the Bank of Canada, chartered banks and other financial institutions to the credit of the Receiver General for Canada.
   5. Cash in transit include cash in the hands of collectors and in transit, moneys received after March 31 but applicable to the current year, and other cash from consolidated Crown corporations (for the exclusive use of these Crown corporations).

2.2.1.1 Valuation of assets

1. Assets are recorded at cost and are subject to annual valuation to reflect reductions from recorded value to the estimated realizable value. In the case of loans to sovereign states, the government views these loans as collectible unless the debtor has repudiated them formally. The government does, however, provide for the cost of its share of future multilateral debt and debt service relief related to these assets.
2. The allowance for valuation includes reductions from the recorded value of loans (and subscriptions and advances to international organizations that make similar loans) with significant concessionary terms in order to reflect the present value of these loans. Departments carry out the identification and assessment of these items annually and the Treasury Board Secretariat compiles them. The final decision on the appropriate amounts of the allowances rests with the Minister of Finance and the President of the Treasury Board.

2.2.1.2 Assets not recorded in the accounts of Canada

1. In accordance with its accounting policy, the government does not report amounts receivable for tax revenue due to difficulties in estimating amounts due at March 31 of each year. Until adequate forecasting and estimating techniques are developed, the only alternative is to continue with cash accounting.
2. Physical assets representing government-owned land, engineering structures and works (such as canals, harbours and roads) buildings and other facilities, machinery, equipment and inventories, are not capitalized as assets on the government's Statement of Assets and Liabilities. The full amount spent on physical assets is charged to budgetary expenditure at the time of acquisition or construction. Physical assets are held by the government for its own use and are not held primarily for re-sale or to earn income.

2.2.2 Liabilities

1. Liabilities are defined as financial obligations of the government to outside organizations and individuals as a result of events and transactions that occurred on or before the accounting date.
2. There are three categories of liabilities which meet the above definition:

   1. Specified purpose accounts (SPAs) represent the recorded value of the financial obligations of the government in its role as administrator of certain public moneys received or collected for specified purposes under or pursuant to legislation, trusts, treaties, undertakings or contracts. These public moneys may be paid out only for the purposes specified. Because of the dedicated purposes of these moneys, specific accounts are required to be maintained to provide an accounting mechanism to ensure that the moneys are used only for the purposes for which they were received or collected. These include Canada Pension Plan, pension liability, government annuities, deposit and trust and others.

      However, in order to provide a more comprehensive and complete summary of the full nature and extent of the financial affairs and resources for which the government is responsible, the transactions of certain SPAs are consolidated into the government's revenue and expenditure since they are essentially government operations. These include the Unemployment Insurance Account, the Western Grain Stabilization Account and the Crop Reinsurance Fund.

   2. Unmatured debt represents financial obligations resulting from certificates of indebtedness issued by the government that have not yet become due. The government's holdings of its own securities have been deducted from unmatured debt, to report the amount of the liabilities to outside parties. These would include marketable bonds, Treasury bills, Canada savings bonds, and Canada bills, notes and loans.
   3. Other liabilities include all other obligations for interest and matured debt, accounts payable, allowance for employee benefits and allowance for borrowings of agent enterprise Crown corporations expected to be repaid by the government. The borrowings of all agent enterprise Crown corporations are recorded as a liability of the government, net of borrowings expected to be repaid directly by these corporations, yielding the allowance balance.

2.2.2.1 Valuation of liabilities

1. Liabilities are recorded at the estimated amounts ultimately payable.
2. Employees' entitlements to severance and pension benefits are reported on an actuarial basis. This process is intended to determine current value of future entitlements and uses various estimates. When actual experience varies from estimates, the adjustments needed are pro-rated over the estimated average remaining service lives of the employees.

2.2.3 Translation of foreign currency transactions

Assets and liabilities resulting from foreign currency transactions are reported at year-end closing rates of exchange; net gains are credited to revenue, while net losses are charged to expenditure. Foreign currency transactions are translated and recorded in Canadian dollar equivalents at the exchange rates prevailing on the transaction dates.

The financial transactions of the Government of Canada, as recorded in the financial statements and reported in the Public Accounts, are classified in two categories: budgetary and non-budgetary. However, for reporting purposes, some non-budgetary transactions are further segregated between foreign exchange and unmatured debt transactions.

3.1 Budgetary transactions

1. As explained previously, budgetary transactions include all revenue and expenditure that affect the annual deficit or surplus of the government.
2. The Statement of Revenue and Expenditure reports budgetary transactions. Revenue and expenditure are reported both gross and net. The difference between gross and net is revenue from outside parties credited to appropriations, revenue of consolidated Crown corporations credited to expenditure, tax revenue items related to expenditure and included in revenue, and recovery of tax revenue credited to expenditure.

3.2 Non-budgetary transactions

Non-budgetary transactions are those related to the government's financial claims on and obligations to outside parties, other than those related to foreign exchange and unmatured debt. These consist of all transactions in loans, investments and advances, in liabilities for public money collected for specified purposes, and in all other assets and liabilities. Non-budgetary transactions are disclosed in the Statement of Assets and Liabilities.

3.3 Foreign exchange transactions

Foreign exchange transactions are those related to the operations of the Exchange Fund Account, to Canada's subscriptions and notes to the International Monetary Fund, and unmatured debt transactions made in foreign currencies.

3.4 Unmatured debt transactions

1. Unmatured debt transactions are those which relate to the sale and redemption of Government of Canada bonds, Treasury bills, Canada bills and promissory notes that become due and payable after the reporting date.
2. The Statement of Transactions, which includes all four categories of transactions, shows the extent to which cash going out from the government exceeded cash coming in (financial requirements) and the resulting net borrowing.
3. See Appendix B for details about the financial statements of the Government of Canada.

1. Financial statements are prepared by the Government of Canada in accordance with the accounting policies set out in Note 1 to these statements and, except for any changes in accounting policies explained in the notes, on a basis consistent with that of the preceding year.
2. Responsibility for the integrity and objectivity of the financial statements rests with the government. Financial statements are prepared under the joint direction of the President of the Treasury Board, the Minister of Finance, and the Receiver General for Canada, in accordance with the governing legislation.
3. The information included in the financial statements is based on the government's best estimates and judgement, with due consideration given to materiality.
4. The government presents the financial statements to the Auditor General of Canada who provides an independent opinion on them to the House of Commons.
5. The financial statements included in the Public Accounts are tabled annually in Parliament. The Public Accounts are then referred to the Standing Committee on Public Accounts which reports to Parliament on their contents along with any recommendations it may have on the financial statements and the audit opinion that accompany them.
6. Financial statements consist of five statements and accompanying notes.
7. The Statement of Revenue and Expenditure presents the government's revenue and expenditure (results of operations) for the year. On this statement, revenue and expenditure are reported both gross and net. The net presentation is consistent with the way in which the Budget of the Minister of Finance is presented, while the gross presentation classifies transactions to reflect their nature as revenues or expenditures. Significant differences between the two are the gross presentation's inclusion of revenue from outside parties credited to appropriations, revenue of consolidated Crown corporations credited to expenditure, tax revenue items related to expenditure and included in revenue, and recovery of tax revenue credited to expenditure.
8. The Statement of Assets and Liabilities discloses the government's cash balances and investments, and amounts owing to and by the government at the end of the year. It differs in some ways from a conventional private sector balance sheet. Two major differences concern items that are not reported on this statement: capital assets, having been accounted for as expenditures, and tax revenues receivable since tax revenues are reported on a cash basis. The difference, therefore, between total assets and total liabilities is simply the aggregate of annual budgetary deficits and surpluses determined in accordance with the accounting policies of the government (see the Statement of Accumulated Deficit).
9. Total assets and total liabilities are reported in the Statement of Assets and Liabilities by class, with supporting details and information included in the accompanying notes to the financial statements of the Government of Canada. Such notes are an integral part of the statements. Details are reported in certain sections of Volume I and Volume II of the Public Accounts.
10. The Statement of Accumulated Deficit reflects the net accumulation of annual deficits and surpluses of the government since Confederation. It also includes certain amounts charged or credited directly to the accumulated deficit account reflecting changes in accounting policies that have been applied retroactively. This account is also equal to the excess of recorded liabilities over total financial assets (see the Statement of Assets and Liabilities).
11. The Statement of Transactions shows the extent to which cash going out from the government exceeded cash coming in (financial requirements) and the resulting net new borrowing. The financial transactions are classified into the following categories: budgetary transactions, non-budgetary transactions, foreign exchange transactions and unmatured debt transactions (see appendix A for further details).
12. The Statement of Changes in Financial Position provides information on the government's cash requirements for operating and investing activities and how these activities were financed.

1. From time to time, legislation may require additional financial statements for specific purposes.
2. In the February 1991 budget, the government introduced measures aimed at improving its financial and economic position. These measures included proposals for a Spending Control Act and a Debt Servicing and Reduction Account Act. On June 18, 1992, Parliament passed both Acts that were implemented for the 1991-92 fiscal year.
3. The intention of these Acts is to limit program spending. The Spending Control Act deals with limiting program spending for the period from 1991-92 to 1995-96 inclusive to the levels projected in the February 1991 budget. The Debt Servicing and Reduction Account Act calls for certain revenues including the Goods and Services Tax (GST) to be used to service the public debt and not to fund new program spending.
4. The Auditor General also provides an opinion on these statements.

1. Annually, financial statements are tabled in Parliament as part of the Public Accounts.
2. Volumes I and II of the Public Accounts are designed to provide more detailed supplementary information matters reported in the financial statements. The Auditor General provides an opinion only on the financial statements.

This appendix summarizes accounting policies encountered in the federal government which have not been discussed previously in this chapter 5-2 on Policy on Statutory Financial Reporting. The following subjects are discussed:

• Government Downsizing Program
• Public Service Pensions
• Canada Pension Plan
• Concessionary Loans
• Contractual Commitments
• Contingent Liabilities
• Insurance Programs
• Insurance and Related Benefits

2.1 Termination

1. The Government of Canada accounts for downsizing costs in the period in which the decision is made to reduce staff, as long as the costs are not related to future employment or other future events. This conforms to generally accepted accounting principles in Canada as recommended by the Canadian Institute of Chartered Accountants. In the February 27th budget, the government announced its decision to move to a smaller public service. Consequently, the impact of this decision must be accounted for in the 1994-95 accounts of Canada and financial statements.
2. The following program comprise the following termination:
   • normal severance (one week per year of service, etc.) and cash-out of vacation leave credits;
   • cash-outs under Work Force Adjustment (WFA);
   • cash-outs under the Early Departure Incentive (EDI); and
   • waiving pension penalties and cash payments under the Early Retirement Incentive (ERI).
3. The government's policy is that all unpaid amounts related to a specific written agreement with an employee signed on or before March 31st must be accrued under the Payables at Year-End (PAYE) policy and charged to an appropriation. This applies to employees who will be struck off strength both before and after the year-end. All other estimated amounts will be charged through a central provision and will be recorded by the Treasury Board Secretariat.
4. Most departments can have access to TB Vote 5 for funds related to normal severance and vacation credits, and waived pension penalties will be charged to a statutory Vote. All departments must charge all other cash payments to departmental reference levels.

1. The Government is responsible for defined benefit pension plans covering substantially all of its full-time employees (including the Public Service, Canadian Forces, Royal Canadian Mounted Police and certain Crown corporations) as well as federally appointed judges and Members of Parliament. Pension benefits are generally calculated by reference to highest earnings for a specified period of time, are related to years of service and are indexed to inflation. Separate funds are not set aside to provide for payment of these pension benefits.
2. Annually, pension obligations are estimated by projecting benefits expected to be paid in the future and calculating their present value. Many assumptions are required for this process, including estimates of future inflation, interest rates, general wage increases, workforce composition, retirement rates and improved mortality rates. The long term rate of inflation used in the valuation is 1.5 per cent.
3. The Government uses its best estimates for the assumptions affecting these pension obligations. Changes in assumptions can result in significantly higher or lower estimates of liabilities. When actual experience varies from estimates, the adjustments needed are pro-rated over the estimated average remaining service lives of the employees.
4. The pension liability recorded in the financial statements is comprised of the accrued benefit obligation determined as of March 31 and the unamortized pension adjustments.
5. Crown corporations covered by the Public Service Superannuation Act need only match their employees' contributions, the cost of any deficiency being borne by the Government.

1. The Canada Pension Plan is a compulsory contributory social insurance program which enables members of the labour force to acquire and retain protection for themselves and their families against loss of income due to retirement, disability or death. Established in 1965, the Plan applies in all parts of Canada, except the Province of Quebec which has a comparable plan.
2. Under existing arrangements, all benefits and expenses incurred in the administration of the Plan are financed from contributions made by employees, employers and self-employed persons, and from interest earned from the investment of funds.
3. The Government's financial obligation, as administrator of the Canada Pension Plan, is limited to the balance in the Account.
4. When the operating balance exceeds the estimated amount required to meet all payments in the following three-month period, the excess is available for the purchase of securities of the provinces, territories and Canada.
5. These investments are recorded in the Canada Pension Plan Investment Fund.
6. Provinces and territories are advised monthly of the amount of excess funds in the Canada Pension Plan Account that is available for the purchase of provincial and territorial securities. The amount available to each province and territory is the proportion that contributions made to the Plan during the preceding ten years in respect of employment in the province or territory bears to total contributions. Contributions received in respect of employment from employees outside Canada as well as any excess funds not invested in the securities of the provinces and territories are invested in the special non-marketable bonds of the Government of Canada.

5.1 Loans to developing countries

1. Some loans to developing countries arose from agreements signed before April 1, 1986 and are either at low interest rates or are interest-free. Because of the financial benefits conferred on the recipients, the government has fully provided for these in the allowance for valuation of assets.
2. The departments have treated all similar loans disbursed after April 1, 1986 as budgetary expenditures.

5.2 Loans, investments and advances to international organizations

1. Some international organizations make loans to developing countries on beneficial terms. Accordingly, the government has fully provided for the net balances of loans and advances made prior to April 1, 1986 in the allowance for valuation of assets.
2. The departments have treated all similar loans and advances disbursed after April 1, 1986 as budgetary expenditures.

5.3 Development of export trade organizations

1. Pursuant to the Export Development Act, the Governor in Council may authorize the Export Development Corporation to make loans to foreign customers where the liability is for a term, or in an amount in excess of that normally assumed by the Corporation. Such loans are financed directly by payments out of the Consolidated Revenue Fund and are administered by the Corporation on behalf of the Government of Canada.
2. Prior to April 1, 1987, these loans were authorized under non-budgetary authority. Since April 1, 1987, departments are recording interest-free or low interest bearing loans under budgetary authority because of their concessional nature. Any similar loans that were issued prior to April 1, 1987 are fully provided for by the government in the allowance for valuation of assets.

1. A contractual commitment represents a written obligation to outside organizations or individuals as a result of a contract. The nature of the Government's activities requires negotiation of contracts that are significant in relation to its current financial position or that will materially affect the level of future expenditure. In the case of contractual commitments to international organizations, some will result in future budgetary expenditure while others will result in non-budgetary payments.
2. Contractual commitments can be classified into seven categories: fixed assets, purchases, operating leases, capital leases, transfer payment agreements (grants and contributions), benefit plans for veterans and international organizations.
3. Major capital assets of the Government are either purchased outright or leased. Where a lease transfers substantially all of the benefits and risks incidental to ownership of the property to the lessee, it is considered a capital lease. All other leases are classified as operating leases.
4. Certain commitments relate to agreements with international organizations and other sovereign nations, which stipulate that the Government will disburse funds in future years for loans, advances and paid-in share capital.
5. Under the Pension Act, the Government provides pensions and benefits for disability and death arising from military service.
6. Departments supply information on commitments to Public Works and Government Services Canada, which is then disclosed in a note to the financial statements.

1. A contingent liability is a potential liability which may become an actual liability when one or more future events occur or fail to occur.
2. For the purpose of reporting contingent liabilities, the Government of Canada is defined as all organizations which are accountable for the administration of their affairs and resources either to a Minister of the Government or directly to Parliament, and which are owned or controlled by the Government. Except for Government enterprises, all Government organizations are accounted in the financial statements by consolidation. Government enterprises are accounted for by the cost method.
3. Contingent liabilities of enterprise Crown corporations are not consolidated with those of the Government. However, the borrowings of agent enterprise Crown corporations are reported with the contingent liability of the Government.
4. The Government has also agreed to guarantee loans made by agent enterprise Crown corporations. Certain guarantees cover guarantee programs of the Government, explicit guarantees by the Government for loans, financial arrangements and other potential liabilities, insurance programs of the Government and other explicit guarantees. They also comprise potential losses arising from pending and threatened litigation relating to claims and assessments in respect of breach of contract, damages to persons and property, and like items.
5. Contingent liabilities other than loan guarantees and borrowings of agent enterprise Crown corporations, are recorded in the accounts when they become actual liabilities. Losses on loan guarantees are accrued in the accounts through a valuation allowance calculation when it is likely that a payment will be made in the future to honour a guarantee and where the amount of the anticipated loss can be reasonably estimated. Borrowings of agent enterprise Crown corporations are recorded as liabilities through a valuation allowance for the portion not expected to be repaid directly by these corporations.
6. Also included in contingent liabilities are those related to present, and future callable share capital and lines of credit for international organizations. These contingent liabilities may result in non-budgetary future payments.
7. Contingent liabilities, generally, are reported in the notes to the financial statements and are recorded in the accounts only when they become actual liabilities. An exception is made for losses on loan guarantees which are accrued as liabilities when it is likely that a payment will be required in the future to honour a guarantee and where the amount of the loss can be reasonably estimated. Specific amounts of contingent liabilities are reported when available. Where specific amounts are not available, estimates of potential liability are used, if determinate. Items for which no reasonable estimate can be made are not included.

1. Three enterprise Crown corporations, whose financial affairs are excluded from the government financial statements, operate insurance programs for the Government. In the event the corporations have insufficient funds, the Government will have to provide financing through appropriations.
2. Canada Deposit Insurance Corporation provides insurance on deposits with member banks an trust and loan companies for up to $60,000 per depositor per institution.
3. Canada Mortgage and Housing Corporation operates the Mortgage Insurance Fund which provides insurance for mortgage lending on Canadian housing by private institutions.
4. The Export Development Corporation provides export and foreign investment insurance for the purpose of facilitating and developing export trade.

9.1 General

1. Personnel policies normally apply to that part of the Public Service for which Treasury Board is the employer under Part I, Schedule I of the Public Service Staff Relations Act.
2. Government employees profit from many insurance and related benefits. These are detailed in the Treasury Board Manual-Insurance and Related Benefit. Brief explanations for a few of these plans follow:
   • Public Service Management Insurance Plan
   • Public Service Health Care Plan
   • Dental Care Plan
   • Sick Leave
   • Disability Insurance
   • Long-Term Disability Insurance
   • Maternity Benefits

9.2 Public Service Management Insurance Plan

The Public Service Management Insurance Plan (PSMIP) provides Public Service employees excluded from collective bargaining with group life insurance, accidental death and dismemberment insurance, dependants' insurance and long-term disability insurance.

9.3 Public Service Health Care Plan

1. The Public Service Health Care Plan is a private health care plan sponsored by the Government of Canada for the benefit of federal Public Service employees, members of the Canadian Forces, the Royal Canadian Mounted Police, members of Parliament, federal judges, employees of a number of designated agencies and corporations, and persons receiving pensions based on service in one of these capacities.
2. The purpose of the Health Care Plan is to provide participants and their eligible dependants with coverage, up to reasonable limits, for expenses for specified medically required services and products.

9.4 Dental Care Plan

1. The Treasury Board introduced a Dental Care Plan (DCP) for its employees on March 1, 1987, for the National Joint Council (NJC) part and on May 1, 1987 for the Public Service Alliance of Canada (PSAC) part. The plan was extended to employees of a number of separate employers, effective January 1, 1988.
2. On June 1, 1988 the cost of the Dental Care Plan became fully paid by the employer for all eligible employees and their dependants.
3. This plan provides employees with insurance coverage for certain dental expenses.

9.5 Sick Leave

1. Sick leave is a form of paid leave which provides protection, related to length of service, against loss of earnings because of necessary absence from work due to non-occupational illness or injury.
2. In most cases where the Treasury Board is the employer, employees are eligible to accumulate sick leave credits.
3. In order to be granted sick leave, employees must satisfy the employer that they are unable to perform their duties because of illness or injury that did not arise out of, or in the course of, employment.

9.6 Disability Insurance

The Disability Insurance (DI) Plan provides employees in the Public Service who are included in collective bargaining, and who are members of the plan, with benefits to replace a substantial portion of earnings lost as a result of extended periods of disability.

9.7 Long-Term Disability Insurance

Long-term disability insurance, (LTD), is part of the Public Service Management Insurance Plan (PSMIP). It provides Public Service employees excluded from collective bargaining, and who are members of the plan, with monthly income benefits to replace a substantial portion of earnings lost as a result of extended periods of total disability.

9.8 Maternity Benefits

1. There are several benefits available to female employees in the federal Public Service in respect of pregnancy, childbirth, post-childbirth recuperation and infant care. The availability of benefits depends on the employee's circumstances and the provisions of the authority governing her terms and conditions of employment.
2. The maternity benefits apply to pregnancies which terminate after nineteen weeks. Pregnancies terminating within the first nineteen weeks are treated as illnesses by the UI plan and for the purposes of public service benefits.