ARCHIVED - Expenditure Review of Federal Public Sector - Volume Two - Compensation Snapshop and Historical Perspective, 1990 to 2003

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11. Compensation in the Royal Canadian Mounted Police Domain

In 2003-­03 regular time pay for the Royal Canadian Mounted Police totalled about $1.1 billion. The total cost of compensation of all kinds amounted to around $1.6 billion.

RCMP employees fall into one of three broad groups:

• Regular members, appointed under the Royal Canadian Mounted Police Act, numbered about 15,588 in March 2003. These are uniformed employees engaged in police work or the management of such work.
• About 2,441 civilian members, also appointed under the RCMP Act, perform policing-support duties in such fields as forensic laboratory services, toxicology, fingerprint and firearms technology, or computer systems and telecommunications.
• About 3,700 public servants support the work of the RCMP.^[121]
  
  

Table 2092 Change in the population and payroll for the regular and civilian members of the Royal Canadian Mounted Police, 1990–91 to 2002–03
Year	Member population			Salary mass ($M)			Total salary mass (2003 constant $)
	Regular	Civilian	Total	Regular	Civilian	Total
1990–91	15,860	1,836	17,696	719.2	83.3	802.5	1,019.2
1991–92	15,887	1,899	17,786	775.4	92.7	868.1	1,056.3
1992–93	16,039	1,930	17,969	811.9	97.7	909.6	1,089.1
1993–94	15,994	1,974	17,968	835.4	103.1	938.5	1,107.5
1994–95	15,410	1,985	17,395	813.3	104.8	918.0	1,078.5
1995–96	15,142	1,970	17,112	786.5	102.3	888.8	1,022.7
1996–97	15,102	2,066	17,108	771.1	102.4	873.5	987.9
1997–98	15,058	2,008	17,066	764.6	102.0	866.5	966.9
1998–99	14,840	2,014	16,854	789.5	107.1	896.6	991.2
1999–00	14,537	2,057	18,594	796.4	112.7	909.1	983.4
2000–01	15,139	2,124	17,263	857.5	120.3	977.8	1,029.3
2001–02	14,466	2,232	17,698	914.2	131.9	1,046.1	1,077.3
2002–03	15,588	2,441	18,029	933.3	146.1	1,079.5	1,079.5

Of 126 senior executives, 93 were regular members and 33 were civilian members.

Table 2092 provides a summary of changes in the regular and civilian RCMP populations and related salary mass from 1990–91 to 2002–03. In constructing the figures on salaries we encountered difficulties in reconciling internal data from the RCMP human resources and financial records. After discussion, it was decided to use the data in this table, which are derived from the Public Accounts.

RCMP population in 2002–03

Over 80% of the regular members are constables and corporals. Among the civilian members, about half fall into two areas that are particular to police work. The first, Law Enforcement Support, includes telecommunications operators and intercept staff. The second, Forensic Laboratory Services, covers fingerprinting technicians and other forensic scientific personnel and technicians. The remaining civilian member population is in groups that correspond to groups in the regular public service, of whom by far the most numerous are those involved in computer services.

New recruits in 2002–03 numbered 644 regular members and 314 civilian members. These represented about 4.1% and 12.9% respectively of the total populations in March 2003. Applicants to become uniformed regular members totalled over 9,000 in the course of the year—a ratio of 14 applicants for each job filled.

Members seeking promotion write examinations and attend oral boards in order to establish their qualifications. Promotions occur from among those qualified, as vacancies become available at higher ranks. Although these normally follow the order of merit among those qualified, increasing attention goes to fitting the individual to the job. "Reclassification" as it is understood in the regular public service does not occur. Members do not "own" their jobs, so they are not necessarily promoted if the position they occupy attains a higher classification. In 2002–03, about 1,070 members were promoted, around 5.9% of the March 2003 population. The rate of promotion was somewhat higher among civilian members (8.3%) than among regular members (5.6%) during the year.

Non-retirement-related departures were relatively few, with just over 100 regular and civilian members leaving in 2002–03. This amounted to less than 1% of the March 2003 population. Another 535 members retired during this period.

Retrospective—RCMP population 1991–2003

While the total population of RCMP members has been very stable, increasing by less than 2% between 1991 and 2003, there was a decline of almost 2% in regular members and growth of about one third in the population of civilian members. The total population of members increased by 373 to 18,029, with regular members declining by 272 to 15,588 and the number of civilian members increasing by 605 to 2,441.Determination of RCMP salary

The legal context for pay determination in the RCMP is set by two factors: members do not have the right to form a union and bargain collectively; and the Treasury Board is the employer and has the authority to establish the level of pay and allowances to be paid to RCMP members. Notwithstanding, since 1974 a system of elected staff relations representatives does provide members with a voice in pay determination.

In the absence of a right to collective bargaining for members, the RCMP Pay Council brings together representatives of RCMP management and of the members, as well as an independent Chair. Each year, the Council compares total compensation^[122] for the RCMP with that of the two provincial police forces and six large city forces. In recent years, including 2002–03, raises have been set so that RCMP total compensation corresponds with the average of the top three forces in the reference group.

Salaries for regular members are determined by the Treasury Board, taking into account the recommendations of the RCMP Pay Council, as endorsed by the RCMPCommissioner. Although the Treasury Board has accepted to approve salary increases on this basis, it has been careful not to adopt such a policy formally, in the event that in a given year increases for one or more forces might be "unreasonable."

Pay for civilian members follows various approaches. Some civilian members involved in law enforcement support are paid a set proportion of the pay rate for Constables. For example, level 2 of both the Intercept Monitor (IM) and Telecommunications Operator (TO) groups is pegged at 79% of the maximum Constable salary, and the other levels are a set proportion of the pay rate for level 2. Those working in the forensic laboratory are matched to selected public service comparator groups; the remaining civilian members are classified and paid in line with the applicable analogue group in the public service.

Senior Officers are matched to the Executive (EX) group in the core public service as follows:

• The ranks of Inspector and Superintendent have salaries that fall more or less in the middle of the EX 1 and EX 2 ranges respectively
• Chief Superintendent corresponds to EX 2
• Assistant Commissioner in the field to EX 3
• Assistant Commissioner in headquarters to EX 4
• Deputy Commissioner aligns with EX 5

The available data did not permit us to construct a distribution chart of actual RCMP member salaries by $5,000 pay bands in March 2003, as we did for the core public service, for CCRA, and for the Canadian Forces. Nevertheless, it is clear from the RCMP regular member rank structure that the distribution is highly concentrated. In 2002–03, 63% of regular members were constables (2002 pay range of $38,571 to $62,497). Likely not more than 1.5% of RCMP members earned less than $45,000 nor did more than a similar proportion earn more than $100,000.

Retrospective—History of RCMP salary determination

In the late 1960s and early 1970s, there was no apparent methodology to establish RCMP member salaries. In 1974 a joint Treasury Board Secretariat/Royal Canadian Mounted Police Advisory Committee on Compensation was created to develop methods for governing pay determination. This concept was abandoned in frustration after six years. Starting in 1977, surveys of various police forces by the Pay Research Bureau (PRB) of the Public Service Staff Relations Board were used as a basis for setting salaries. By 1987 this survey narrowed its scope to eight large police forces. In the late 1980s the idea of using a "total compensation" approach to compare police forces was discussed but not implemented.

The pay freeze of the mid-1990s left the RCMP at the lower end of its main comparator forces, and frustrated by the lack of a credible process for setting salary levels.

By 1993, the RCMP was found to rank sixth compared with the eight comparator police forces. In that year William M. Mercer prepared a database covering all compensation elements for six major municipal forces (Vancouver, Calgary, Edmonton, Winnipeg, Toronto and Montreal) and the Ontario and Quebec provincial police forces. A second 1994 study by the law firm Stikeman, Elliott recommended the creation of an RCMP Pay Council to develop a more "orderly, independent, transparent and professional" approach to compensation in the RCMP.

In addition to developing pay increase proposals based on research, the Pay Council^[123] has examined various other controversial topics such as the appropriate comparator universe, regional pay, the relation of the pay of various ranks, compensation issues related to remote locations, and the possibility of relating pay to business lines or to competencies.

As noted earlier, since the late 1990s, the de facto policy has been to match RCMP salaries and overall compensation to the average of the top three police forces among those included among the eight comparator forces tracked.^[124]

Following the Program Review salary freeze period, the Treasury Board approved two extra increases in 1998, one additional increase in 1999, and two special increases in 2000. These increases had a cumulative value of about 8.5%. According to the December 2003 Total Compensation Report from the Pay Council, the RCMP ranked second among nine police forces tracked.^[125]

Retrospective—Salary changes, 1991 to 2003

Because civilian members' pay levels track analogous jobs in the core public service, we have not attempted to detail the history of salary changes for civilian members.

RCMP regular member salary ranges rose by a cumulative 40.88% between January 1991 and January 2003, as set out in Table 2093. Changes in total salary mass and average salary for regular and civilian members of the RCMP combined are illustrated in Figures 2095 and 2096. For the period from 1990–91 to 2002–03 RCMP members' average salaries increased from $45,400 to $59,900, a growth of 32%. In real terms (i.e. constant 2003 dollars) the increase was small at $2,300, or 4%.

Table 2093 History of pay increases and salary ranges for Constables in the RCMP, 1991 to 2003*
Effective Date		Approved Increase	Constable Salary Range
		%	Minimum		Maximum
1991	January	3.50%	29,044	47,060
1992	January	4.20%	30,264	49,037
1993	January	3.00%	31,172	50,508
1994		Frozen
1995		Frozen
1996		Frozen
1997		Frozen
1998	January	2.00%	31,795	51,518
	April	1.00%	32,113	52,033
	October	0.75%	32,354	52,423
1999	January	2.67%	33,218	53,823
	April	1.00%	33,550	54,361
2000	January (economic)	2.00%	34,221	55,448
	January (comparability)	2.76%	35,165	56,978
	July	2.73%	36,125	58,533
2001	January	3.00%	37,209	60,289
	January	0.15%
2002	January	3.50%	38,511	62,399
2003	January	2.50%	39,473	63,959
Cumulative increase		40.88%
* In each case, increases became effective on the first day of the month reported. the same percentage increases were applied to all ranks of regular members.

In the period following Program Review, we find an increase of about 18.0% in members' average salary, from about $50,800 in 1997–98 to $59,900 in 2002–03. In constant 2003 dollars, the growth was 5.6%, from $56,700 to $59,900.

During this period, the increase in RCMP members' average salaries was less than for public servants in the combined core public service and separate employer domains. (The corresponding rates of increase in the core public service were about 27.3% in current dollars, and 14.1% in constant 2002–03 dollars.) One of the factors that contributes to this difference is the effective absence of a change in the composition of the RCMP workforce compared with the core public service, where this factor contributed 5.3% to the increase in the average salary of the core public service.

Table 2094 gives the numbers and total salaries of regular RCMP members by rank, and civilian members by specialization in March for 1991, 1995, 1998, 2000 and 2003.

Combining the Constable and Special Constable populations, we find a numerically stable population over the period i.e., 54.5% of RCMP staff in 1991, compared with 54.7 in 2003. There is a substantial increase in senior management from around 70 in the early to the mid-1990s, to 126 in 2003. Overall, however, senior officers from Staff Sergeant up declined from 7.9% of staff in 1991 to 6.7% in 2003. The absolute numbers of senior officers decreased by almost 200, from 1,398 to 1,200.

Looking closely at the change in the distribution of ranks among regular RCMP members between 1991 and 2003, it appears that if anything the net impact on average salary would be negative. We in fact tested this hypothesis in the same way we did for the combined core public service and separate employer domains and for the Canadian Forces domain. Specifically, we took the average salaries by rank in 2003, multiplied them by the population structure of 1991, and then calculated the resulting average salary for regular members as a whole. In fact the 2003 gross average salary was about $100 less than what the 1991 structure with 2003 salaries would have yielded. We conclude that changes in the composition of the rank structure for RCMP regular members had essentially no impact on average salaries.

Salary changes were, therefore, driven almost entirely by percentage increases approved by the Treasury Board over the years, as set out earlier in Table 2093. For regular members, the percentage increases were the same at every rank, except for members of senior management, whose pay is tied to that of corresponding levels of the Executive (EX) group in the core public service.

Table 2094 Numbers and salaries of regular members by rank, and civilian members by specialization in the RCMP, selected years since 1991
Employee Categories	March 1991			March 1996			March 2000			March 2003
	Pop.	%	Total Sal. ($M)	Pop.	%	Total Sal. ($M)	Pop.	%	Total Sal. ($M)	Pop.	%	Total Sal. ($M)
Senior Executives
Civilian	18	0.1	0.8	17	0.1	0.9	17	0.1	0.9	33	0.2	3.4
Regular	53	0.3	2.4	51	0.3	2.6	66	0.4	3.6	93	0.5	9.6
Sub-total	71	0.4	3.2	68	0.4	3.5	83	0.5	4.5	126	0.7	13.0
Regular Members (other than Executives)
Superintendant	124	0.7	5.6	119	0.7	6.2	100	0.6	5.5	128	0.7	13.3
Inspector	354	2.0	16.0	357	2.1	18.5	282	1.7	15.5	303	1.7	28.0
Staff Sergeant	920	5.2	41.7	883	5.2	45.8	747	4.5	40.9	769	4.3	62.3
Sergeant	1805	10.2	81.9	1765	10.4	91.7	1593	9.6	87.3	1628	9.0	119.3
Corporal	2955	16.7	134.0	2902	17.1	150.8	2821	17.0	154.5	2806	15.6	187.8
Constable	9397	53.1	426.1	8878	52.3	461.1	8844	53.3	484.5	9782	54.3	509.7
Special constable	248	1.4	11.2	170	1.0	8.8	100	0.6	5.5	77	0.4	4.0
Sub-Total	15802	89.3	716.6	150744.9	88.8	783.0	14487.6	87.3	793.6	154933.0	86.0	924.5
Civilian Members (other than Executives)
Law enforcement Support	655	3.7	29.7	696	4.1	36.2	631	3.8	34.5	665	3.7	33.6
Computer Services	230	1.3	10.4	238	1.4	12.3	365	2.2	20.0	675	3.7	43.6
Forensic Laboratory	372	2.1	16.9	374	2.2	19.4	365	2.2	20.0	412	2.3	25.1
Administrative	106	0.6	4.8	187	1.1	9.7	199	1.2	10.9	329	1.8	19.2
Technical and operational	425	2.4	19.3	407	2.4	21.2	382	2.3	20.9	220	1.2	12.9
Other scientific/ professional	35	0.2	1.6	68	0.4	3.5	83	0.5	4.5	107	0.6	7.9
Sub-total	18227	10.3	82.7	1970	11.6	102.3	2025	12.2	110.9	2408	13.3	142.3
Total	17625	100.0	802.5	171120	100.0	888.8	16595.0	100.00	909.1	180270	100.0	1079.8
Note: The population figures in this Table differ somewhat from the totals in Table 2092, because of differences in the reporting period.

Figure 2095
Overview of changes in total payroll for regular and civilian members of the Royal Canadian Mounted Police, separately and combined, 1990–91 to 2002–03

Display full size graphic

Figure 2096
Overview of the evolution of RCMP average salaries in current and constant 2003 dollars for regular and civilian members combined, 1990–2003

Display full size graphic

Sources of salary increases

The RCMP over-expended their operating budget by more than $8 million in 1997–98, and Pricewaterhouse Coopers was asked to review the RCMP's financial operations and the adequacy of its funding levels. The result was a Treasury Board decision in 2000 to cover salary shortfalls related to contract policing and to strengthen recruitment of civilian members with financial management and other specialized expertise.

From 2000, Treasury Board also approved program-integrity and key policy initiatives and these became the principal source of new salary funding. Policy-driven salary increases were approved, for example, to combat organized crime and smuggling, to upgrade the Canadian Police Information Network, to integrate approaches to border enforcement and the proceeds of crime, and to respond to public safety and security issues raised by the events of September 11, 2001.

We estimate the total value of these two types of increases in salary budgets as adding up to about $247 million net between 1997–98 and 2002–03. In addition, the RCMP received a net increase from the Treasury Board compensation reserve of about $80 million for members' salaries by the end of this period. Transfers into salaries from other approved budgets initiated by the RCMP itself were worth a further estimated net amount of $62 million. These amounts add up to considerably more than the reported salary mass increase of about $215 million between 1997–98 and 2002–03. We were unable to determine how to reconcile these figures.

Other pay and allowances

Members of the Senior Executive, both regular and civilian members of the RCMP, are eligible for performance pay on the same basis as for Executives in the core public service. In 2002–03 lump sum payments in regard to the 126 members affected totalled about $1.24 million,just about 7% of the relevant salary mass. The average amount was just under $10,000. In‑range increases for this group totalled about $300,000. In addition, about 50further RCMP civilian members in positions equivalent to those non-executive senior levels eligible for performance pay in the core public service received about $205,000, of which about $106,400 was lump sum payments.

Only one recruitment and retention ("terminable") allowance is provided, for members of the Computer Personnel (CP) group. This matches the allowance for the Computer Services (CS) group in the core public service domain. The total amount paid in 2002–03 for this purpose was about $1.76 million. About 850 members benefited from this allowance.^[126]

Other types of pay and allowances amounted to about $76.7 million over the year, as shown in Table 2097 below.

Table 2097 Major allowances in the RCMP by category; selected years
	1990–91	1997–98	2002–03
Type of Allowance	Amounts ($M)	Amounts ($M)	Amounts ($M)	%
Plain clothes / Kit upkeep	4.76	6.18	16.13	21.0%
Shift differential / Stand by	3.68	6.14	14.52	18.9%
Senior Constable Allowance	3.29	4.15	13.35	17.4%
Transfer allowances	5.96	6.3	8.02	10.4%
Isolated Posts	5.34	3.54	7.39	9.6%
Maternity / Parental	0.7	1.24	7.07	9.2%
Annual Service Pay	n/a	n/a	4.69	6.1%
Bilingualism Bonus	n/a	2.23	2.34	3.0%
Other	n/a	n/a	3.22	4.2%
Total	23.73	29.78	76.73	100%

The most costly of these allowances are generally provided by other large police forces in Canada. The plainclothes allowance in 2002–03 was $1,735 for male officers, and $1,920 for female. The shift differential allowance paid $1.50 per hour worked between 4 p.m. and 8 a.m. The senior constable allowance was 2% of Constable pay after 11 years of service, or 4% after 7 years' service and passage of the Corporal's examination. Annual service pay entitlements varied from $114 per year after 5 years of service to $912 with 40 years, for a total value of about $4.69 million. Transfer allowances provided one month's pay if transferring with dependents, and half that amount without.

Other allowances are those available on the same basis as in the broader public service such as the bilingualism bonus or salary top-up relating to employment insurance for maternity and parental leave. Isolated posts allowances are especially important in the RCMP, which maintains operations in many communities across the northern territories, and in remote parts of various provinces.

Overtime pay in the RCMP is substantial, amounting to about $99.1 million in 2002–03, or approximately 9% of regular pay. Retroactive pay added up to just under $10 million.

Severance pay and termination allowances are paid on resignation, retirement or death. In the first two circumstances, members leaving with between 10 and 20 years in the RCMP are eligible to receive one-half week's pay for each year of service, or one full week's pay per year if they leave with at least 20 years' service to a maximum of 28 years. On death the benefit is one week per year of service, with no minimum service requirement. The maximum benefit is 28 weeks of pay. The total cost in 2002–03 was about $19.9 million. For the 973 receiving such pay in 2002–03, the average amount was about $20,400.

Retrospective—Other pay and allowances

Amounts for performance pay have fluctuated with the pattern in the core public service. Lump sum payments were about $0.18 million in 1997–98, $0.92 million in 2000–01, and $1.24 million in 2002–03. A few dozen senior civilian members also have access to performance pay on the same terms as certain non-executive staff in the core public service. Amounts paid for these employees were not more than about $8,000 per year in lump sums, and even less in in-range salary increases.

The terminable allowance for the Computer Personnel (CP) group began in 1999 following the implementation of such an allowance for the Computer Services (CS) group in the core public service domain.

The largest proportionate increase (by four times) in other allowances was for the shift differential/stand by category. The shift differential rate was $0.45 per hour worked between 4 p.m. and 8 a.m. This increased to $0.65 in January 1998, to $0.75 in January 1999, to $1.00 in 2000, and most recently in 2001 to $1.50.

Annual service pay increased from $6.50 per month for each five years' service to $9.50 in 2001. Accordingly, the maximum annual amount after 35 years of service rose from $546 as reported in the 1993 "Total Compensation Report" to $798 in the 2003 edition.

The Plainclothes Allowance increased substantially in 2003, especially for male members. The annual rates in 1993 were $1,007 for male members and $1,665 for female members. In 1998, these rates were raised to $ 1,044 for males and $1,723 for females. In 2002, they rose further to $1,736 for male members and $1,919 for female members. The annual allowance for kit upkeep was unchanged throughout these years at $128 for males and $142 for females.

The Senior Constable Allowance was increased twice. In 1993 it provided 2% of a First Class Constable salary for those with at least eleven years' experience. In 1998, this allowance was extended after ten years to Constables who had passed the Corporal qualifying examination. In 2000, the allowance was increased to 4%, and those who had qualified to become Corporals began to receive the allowance after seven years as a Constable.

Maternity and Parental Leave salary top-up to 93% (inclusive of Employment Insurance benefits) of regular pay was extended in 2001 to a full year from six months, in line with the federal government's decision to extend EI benefits.

Between January 1998 and December 2000, the RCMP piloted a Market Adjustment Allowance (MAA). The Pay Council came to this proposal after hearings regarding cost-of-living differences and their impact on the RCMP. The Treasury Board had denied a proposal for a recruitment and retention allowance for members in Greater Vancouver. The option of a general regime of regional pay differentials was rejected by members as divisive and by management as too costly. The MAA option was seen as a temporary measure that would alleviate more acute cost-of-living pressures in high cost areas. As the RCMP salary structure became more competitive with comparator police forces, it could be reduced or phased out.

The MAA was designed to address differences in housing costs. Members not covered by isolated post allowances were eligible, where the average residential selling price in the community around the worksite was not affordable and the nearest comparator force Constable salary exceeded that of the RCMP. Housing costs that were more than four times the Constable maximum salary were defined as unaffordable. During the three calendar years of the pilot, about $11 million was paid out, with just over 3,000 members benefiting each year. Most of the benefit (over 85%) went to "E" Division (British Columbia), mainly greater Vancouver. Small amounts were paid in Ontario and Alberta. The pilot was not renewed, since the MAA was losing its pertinence as the RCMP improved its position among comparator police forces.

The Pay Council has invested considerable energy in investigating compensation issues relating to members serving in remote or isolated areas, publishing a major report in December 2002. There is a strong sense within the RCMP that the revised National Joint Council Directive on Isolated Posts and Government Housing does not address adequately the operational needs of the RCMP to ensure adequate presence in remote and isolated posts. This issue remains under review.

Overtime pay is an important feature of police compensation in view of the unpredictable nature of police work. The policies governing eligibility for claiming overtime have not changed over the period under review from 1993 to 2003. The amount spent fluctuated between $50 million and $66 million, except for the most recent year reported (2002–03) when the amount increased significantly, both in absolute terms and as a percentage of the regular payroll, as set out in Table 2098.

Table 2098 Overtime expenditure trends relating to RCMP members, selected years from 1990–91 to 2002–03
Year	Overtime Costs ($M)
1990–91	66.4
1994–95	49.8
1997–98	59.3
1999–00	66.1
2002–03	99.1

Expenditures on severance pay and termination allowances have generally been in the area of $20 million per year, except in the Program Review period from 1995–96 to 1997–98 when they were approximately double that amount per year.

Pension benefits

Regular and civilian members (except part-time employees) of the RCMP participate in pension arrangements under the Royal Canadian Mounted Police Superannuation Act (RCMPSA).^[127] These are similar to the provisions that apply to members of the Canadian armed forces, and generally in line with the plan for the core public service.^[128]

Entitlement is based on the highest average salary for five consecutive years. Pensionable earnings include regular pay plus annual service pay, plus the senior Constable allowance. For regular members, an unreduced pension is payable after 25 years of service (at least 24 years and one day), whatever the age, or at age 60 with at least 10 years. A reduced pension is available after 20 years' service, with a 5% reduction for each year of service fewer than 25. Civilian members become eligible for an unreduced pension at age 55 with at least 30 years' service, as in the core public service.

Member contributions in 2002–03 were 4% of salary up to the Canada/Quebec Pension Plan maximum pensionable earnings, and 7.5% above that level. In 2002–03, members contributed a total of $62.3 million,^[129] about 24.2% of total contributions. The government contributed the remaining amount required, which was about $195.3 million (75.8%).

For context, several other figures merit notice. The total value of benefits paid was about $323.2 million. Interest credited to the Royal Canadian Mounted Police Superannuation Account was about $829.2 million. About $170 million was credited to the government's bottom line as a partial amortization of actuarial gains and losses under accrual accounting of pension benefits earned by current and former RCMP members.

Retrospective—Changes in employer pension contributions

Like the regime for the Canadian Forces, the RCMP plan differs from that applying to regular public servants in the core public service and the separate employer domains in that eligibility for benefits is based more on years of service than age.

From 1977 to 1999 members contributed 7.5% of salary to cover both the Canada and Quebec Pension Plan contributions and RCMPSA contributions. From 2000, these two plan contribution rates were separated, with 4% going for the RCMPSA up to the year's maximum pensionable earnings (YMPE = $39,900 in 2003), with the current contribution for CPP/QPP added on top. Above the YMPE, RCMPSA members contributed 7.5% of salary.

Appendix R^[130] sets out the history of contributions relating to the Royal Canadian Mounted Police Pension Plan. This Appendix details RCMPSA contributions relating to current service (i.e. contributions covering pension credits earned in the specified year only), and to elective service (i.e. past service). A summary of contributions relating to current service is offered in Table 2099.

Table 2099 Employer and member contributions to the RCMP pension plan for current service, 1991–92 to 2002–03
Year	Employer Share ($M)				Member Share ($M)				Total Contribution ($M)
	RCMPSA	RCA	Total	%	RCMPSA	RCA	Total	%
1991–92	105	0	105	64%	60	0	60	36%	165
1992–93	120	0	120	66%	61	0	61	34%	181
1993–94	126	0	126	68%	60	0	60	32%	186
1994–95	126	0	126	68%	60	0	60	32%	186
1995–96	119	0.05	119	68%	57	0.01	57	32%	176
1996–97	120	0.27	120	70%	54	0.02	54	30%	174
1997–98	126	0.27	126	70%	54	0.02	54	30%	180
1998–99	140	0.77	141	73%	53	0.05	53	27%	194
1999–00	159	0.71	160	75%	53	0.06	54	25%	213
2000–01*	143	1.39	144	72%	54	0.13	54	28%	199
2001–02*	179	3.22	182	75%	60	0.19	60	25%	242
2002–03*	185	10.33	195	76%	62	0.29	62	24%	258
* Contributions to the RCMP Pension Fund (RCMPPF)

We concentrate on reporting contributions relating to current service because these are the costs arising from pension credits earned during the year. The Government is responsible to contribute whatever additional amount is necessary to cover the pension credits earned in that year, according to the current actuarial assessment of these costs.

Employer contributions for RCMP pensions were just over $100 million at the start of the 1990s and then increased to the range of $119 to $126 million until 1997–98. Since then these employer costs have risen to $195 million in 2002–03. Member contributions have remained very stable, fluctuating in a narrow range between a low of $53 million in 1998–99 and a high of $62 million in 2002–03.

In view of the steady growth in the salary mass covering RCMP members, the stability of the members' total contribution to the RCMP Pension Plan may seem odd. However, apparently the increases in salary mass through most of the 1990s were more than offset by annual declines in the proportion of employee pension contributions going to the RCMP Pension Plan, as distinct from the Canada and Quebec Pension Plans. After 1999–2000, employee contributions had in fact increased 15% by 2002–03, a percentage broadly in line with the approximately 19%  increase in salary mass.

The ratio of employer contributions to member contributions was unusually low in 1991–92 at 1.75:1. Since then the ratio has grown to approximately 3:1, with 2002–03 at 2.98:1. The share of current service costs paid by the employer increased between 1991–92 and 2002–03 from 64% to 76%, with the member share declining from 36% to 24%. This 3:1 ratio is similar to that for main Public Service Pension Plan in that year. However, the change in relative proportions over the 12 years on which we are reporting was much less pronounced for the RCMPSA (up from 64%) than for the PSSA (up from 51%).^[131]

The value of benefits paid in relation to the RCMPSA in 2002–03 was $323.2 million. For 1991–92, the corresponding sum was around $96.3 million. The number of recipients including retired members, surviving spouses and eligible children was 5,421 in 1991–92; in 2002–03 that total had increased to 11,435. As for the Canadian Forces, about 30% of retired members were younger than 55, according to the "Actuarial Report on the RCMP Pension Plan" as at March 31, 2002, by the Office of the Superintendent of Financial Institutions.

Insurance, health and dental benefits

Members of the RCMP are not eligible for the Supplementary Death Benefit, unlike most employees of the broader federal public service. Members may elect to participate in a life insurance plan at their own expense, and may continue coverage after retirement. The basic benefit is $150,000, and additional $11,000 units of coverage may be purchased up to a limit of as much as $198,000, depending on age at entry into the plan. Senior executive members are covered at government expense, on the same terms as are executives in the core public service. For 2002–03, the cost was about $280,000 for serving members, and about $96,000 for retired senior executives.

Regular and civilian members are fully covered by the employer in relation to health and dental expenses. Expenditures by the government for these purposes in 2002–03 totalled about $39.0 million. Based on an estimated population covered of about 18,000,^[132] the per-member cost was $2,164.

In regard to short-term disability, regular members have full salary continuation as long as there is a reasonable likelihood that duty will be resumed. For long-term disability, members can receive 75% of their salary (indexed to the cost of living up to 3%) until they recover, reach age 65, or die. This benefit is integrated with CPP/QPP benefits and the pension plan. Premiums are shared by the employer and members in a ratio of 85%/15% respectively. Premiums for senior executive members are fully covered by the government. The cost to the government in 2002 regarding long-term disability insurance was about $9.6 million. Members paid premiums of about $1.7 million.

RCMP members' dependants may participate in the Public Service Health Care Plan (PSHCP), and a sub-plan within the Dental Care Plan (DCP). The cost to the government for the PSHCP in 2002, for around 13,900 dependants, was about $5.9 million; for the DCP, the dependants were estimated at about 18,000, with a cost to the government of approximately $7.1 million.^[133]

As for the armed forces, retired members of the RCMP and their dependants are eligible for coverage under the PSHCP and the Pensioners' Dental Services Plan. There has been no attempt to disaggregate the government's costs in these plans according to the organization from which the pensioner retired. Accordingly, these costs are included in the amounts reported in regard to the core public service domain.

Retrospective—Insurance, health and dental benefits

The cost of life insurance provided by the government for active and retired Senior Officers grew modestly, from $0.16 million in 1993–94 to $0.28 million in 2002–03. For retired Senior Officers the cost went from about $54,000 in 1993–94 to $96,000 in 2002–03.

Expenditures on the health and dental needs of regular and civilian RCMP members were approximately $39.0 million in 2002–03, equivalent to nearly $2,162 per member. As shown in Table 2100, this had increased from about $19.3 million or $1,088 per member ion 1990–91.

Table 2100 RCMP health and dental costs per member
Year	Health and Dental Costs ($M)	Member Population  (regular and civilian)	Cost per member ($)
1990–91	$19.3	17,696	$1,088
1991–92	$22.4	17,786	$1,206
1992–93	$25.3	17,969	$1,410
1993–94	$25.7	17,968	$1,432
1994–95	$25.2	17,395	$1,446
1995–96	$26.9	17,112	$1,572
1996–97	$26.3	17,108	$1,540
1997–98	$27.0	17,066	$1,584
1998–99	$29.9	16,854	$1,771
1999–00	$29.9	16,594	$1,678
2000–01	$32.2	17,263	$1,868
2001–02	$35.5	17,698	$2,007
2002–03	$39.0	18,029	$2,162

Between 1993 and 2003 the ceiling of $6,000 per month was eliminated as the maximum benefit for the short-term-disability plan; the income limit from all sources was raised from 85% to 100% of salary. As in the regular public service, the employer share of costs increased from 75% to 85%. Premiums for senior executive members are fully paid by the Treasury Board.

The cost to the employer for RCMP long-term disability benefits was about $2.5 million in 1993–94. Since then, the cost has risen steadily, reaching $3.6 million in 1996–97, $7.8 million in 1998–99, and $9.6 million in 2002–03. Member contributions doubled from about $0.83 million in 1993–94 to around $1.69 million in 2002–03.

RCMP members' dependants may participate in the Public Service Health Care Plan (PSHCP), and a sub-plan of the Dental Care Plan that covers Canadian Forces dependants as well. The RCMP dependants' portion of the PSHCP claims was around $1.9 million in 1993; it had grown to about $5.9 million in 2002: for the DCP, costs increased from approximately $6.6 million in 1996 to about $7.1 million in 2002.

The costs for the PSHCP and the Pensioners' Dental Services Plan were included in the amounts reported in relation to the core public service domain.

Statutory premiums and other benefits

The government pays statutory premiums and payroll taxes in relation to RCMP members, as required of employers in certain provinces. These are:

• Canada/Quebec Pension Planemployer contributions totalled about $33.4 million for RCMP regular and civilian members in 2002.
• Employment Insurance—Employer contributions relating to RCMP members amounted to $20.7 million.
• Provincial Health Plan Premiums—These charges, levied only by British Columbia and Alberta, totalled $2.4 million in 2002–03.
• Health Payroll Taxes—These added up to about $12 million for members of the RCMP in the relevant provinces.

There is also a small rebate of EI premiums amounting to $42,800, which is distributed pro-rata to members.

Pay equity has no direct impact on the salaries of regular RCMP members, since their pay has been set for some years to match a set of the best paid among the large police forces across the country. For most civilian members, pay matches that for public servants in analogous positions in the core public service. Civilian members of groups aligned with those receiving pay equity settlements did receive about $11.2 million (including $3.1 million in interest) in 2001. We have not estimated the ongoing impact of these changes on salaries for affected civilian members of the RCMP.

Member entitlements for annual leave were 15 days for the first five years of service, 20 days from the sixth year, 25 days after ten years, and 30 days after twenty-five years. Eleven statutory holidays are recognized as in the core public service. Sick leave is available for members as needed, although a doctor's certificate is required beyond four days' absence. Maternity and parental leave complementing available Employment Insurance is provided on the same basis as in the core public service. Compassionate leave is a general category of leave provided for various family-related purposes such as a critical illness or death in the family or for temporary care for a spouse or dependant. Leave may also be taken in lieu of overtime.^[134]

The largest component of leave usage relates to annual leave, which averaged about 17 days per member in 2002–03. The figure for statutory holidays assumes that all members used all 11 available days, or received other leave in lieu of such days. Overall, we estimate that the total of time not worked amounted to about 12.8% of paid time. Using a general average salary per day per member of about $252, this time would have an approximate value of $151.5 million. Officers and Senior Officers may request to receive pay in lieu of leave. In 2002–03, this amounted to about $5.2 million for active members. A further amount of about $6.6 million was paid for this purpose for members leaving the RCMP.

Retrospective—Statutory premiums and other benefits

Statutory premiums and payroll taxes relating to RCMP members have grown in some areas and decreased in others, as they have for other employers. The principal items are these:

• Canada/Quebec Pension Plan
  • employer contributions were $7.33 million in 1993–94, rising over the years to attain $33.4 million in 2002–03
• Employment Insurance
  • employer contributions in 1993–94 were about $8.8 million
  • by 2002–03, they increased to around $20.7 million
• Provincial Health Premiums
  • only Alberta and British Columbia applied these charges from 1993–94 to 2002–03
  • Throughout this period these levies totalled around $1.7 to $1.9 million, until 2002–03 when the amount was $2.4 million
• Health Payroll Taxes levied by certain provinces evolved thus:
  • $10.3 million in 1993–94
  • $9.9 million in 1997–98
  • $12 million in 2002–03

Leave provisions for RCMP members changed over the past decade in only two important ways. The first change, which came into effect in 2001, was an increase in maximum annual vacation leave from 25 to 30 days after 25 years' service. The second change is the doubling of the duration of maternity and parental leave for which a member can be compensated at a net level of 93% of regular salary from six months to a year, as in the core public service.

Historical data on RCMP leave usage is not available corporately from before 2000 so we did not undertake a historical analysis of this topic. As noted earlier, 2002–03 payments in lieu of leave for active members totalled around $5.2 million. Payouts for this purpose for members leaving the RCMP totalled approximately $6.6 million in 2002–03

Historical overview—RCMP compensation

Unlike the data presented previously for the combined core public service and separate employer domains, and for the Canadian Forces domain, total compensation for the regular and civilian members of the RCMP did not shrink and then expand over the period between 1990–91 and 2002–03. This was because the population was fairly stable throughout the period. Eighty-six percent of the increase from 1990–91 to 2002–03 is explained by salary increases and growth in employer pension contributions.

Table 2101 Evolution of total compensation for the regular and civilian members of the Royal Canadian Mounted Police —1990–91, 1997–98 and 2002–03
Component		Employer Cost ($ millions)
		1990‑91	1997‑98	2002‑03
1.	Salaries and wages (Regular payroll)	0.94	0.867	1.08
2.	Performance pay—lump sums only	–	0.002	0.001
3.	Recruitment and retention allowances and other allowances & premiums	0.08	0.03	0.08
4.	Overtime premiums	0.07	0.06	0.1
5.	Payroll deductions for CPP/QPP, EI, provincial health premiums	0.02 (93–94)		0.06
6.	Pensions	0.11 (93–94)	0.13	0.20
7.	Life and disability insurance (Executive Life, Workers' Compensation, Disability/Long-term disability)	0.01 (93–94)	0.08 (98–99)	0.01
8.	Health and dental plans (Provincial health payroll taxes, RCMP Health and Dental, Public Service Health Care Plan, Dental Care Plan)	0.02	0.01	0.07
9.	Severance pay	0.02	0.04	0.02
10.	Cash-out in lieu of leave	–		0.01
	Totals	1.27	1.18	1.63

This completes our review of compensation changes and trends as they affected the Royal Canadian Mounted Police since 1990. We now comment briefly on the "Other Groups" domain.

 

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