FAQ: Canada Revenue Agency

Non-monetary items become effective upon signing of the agreement. Compensation increases including premiums will be implemented within 180 days after signature where there is no need for manual intervention. If CRA is unable to meet this deadline, there is a lump sum of $200 payable if the outstanding amount is more than $500 owed. 

A majority of voting members participating in the ratification must vote in favour of the agreement for it to be ratified. If a majority of members vote “yes” in the ratification vote, PSAC will meet with CRA to sign the new collective agreement. The new negotiated provisions come into effect on the date of signing, unless otherwise specified. 

The PSAC-UTE bargaining team negotiated wage increases totaling 12.6% compounded over the life of the agreement from 2021–2025. PSAC-UTE secured an additional fourth year in the agreement that protects workers against inflation, as well as a pensionable $2,500 one-time lump sum payment that represents an additional 3.6% of salary for the average PSAC-UTE member.  

For more information see the full ratification kit. 

CRA has 180 days from the date of signing the new collective agreement to raise pay according to the new rates and provide retro pay for the time elapsed since the expiry of the old contracts.  

If CRA is unable to meet this deadline, there is a lump sum of $200 payable if the outstanding amount is more than $500 owed.  

All non-monetary terms of the collective agreement will come into effect immediately after signing.

The annual economic increases included in the new collective agreement are retroactive to the date the former collective agreement expired. This means that you are entitled to retroactive pay for the period you were employed and a member of your bargaining unit, regardless of current employment status (e.g. retired or no longer member of the bargaining unit). 

Yes, retroactive pay is subject to taxes. 

As part of your economic package for this tentative agreement, a one-time, pensionable, lump sum payment of $2,500 will be paid to each employee who is a member of the bargaining unit on the date of signing of the new agreement. Additionally, the one-time lump sum is to be paid to employees on Leave Without Pay (LWOP). Part-time employees working more than 1/3 of full-time hours will receive the full lump sum. The employer has 180 days after the date of signing to issue the lump sum payment.

The payment will be based on the substantive position occupied by the employee on the date that the collective agreement is signed. As such, an employee who is on an acting assignment outside the bargaining unit but whose substantive position is in the bargaining unit will receive the lump sum.

The lump does not apply to:

• An employee who is on an acting assignment in the bargaining unit but whose substantive position is outside the bargaining unit;
• Excluded employees who are eligible to receive performance pay;
• Non-unionized employees who are eligible to receive performance pay;
• Casual employees, students, term employees (less than 3 months), and part-time employees (working less than 1/3 of full-time hours)

You must be in the bargaining unit as of the date of signature of the agreement to receive the $2,500.

The payment will be based on the substantive position occupied by the employee on the date that the collective agreement is signed.

As such, an employee who is on an acting assignment outside the bargaining unit but whose substantive position is in the bargaining unit will receive the lump sum.

However, an employee who is on an acting assignment in the bargaining unit but whose substantive position is outside the bargaining unit will not receive the lump sum.

The $2,500 allowance is payable to bargaining unit members who are employed at the time the collective agreement is signed. This includes employees on unpaid leave since there is still an employment relationship, whether they are receiving disability benefits or not. However, a person receiving disability benefits, but whose employment was terminated (medical retirement, resignation, dismissal) prior to the signing of the collective agreement, will not be entitled to the allowance.

Unfortunately, no. The lump sum payment is only given to members of the unit who are employed in the bargaining unit on the date of signing. 

Retro pay on loss of salary claims will be paid by March 2024.

No action is required.  An automatic claim will be processed, and you will get a notification when the payment is issued. Please remember that retroactive pay is taxable.

PSAC has issued e-transfers and manual cheques for strike pay to the vast majority of PSAC members.  

If you are still experiencing an issue with your strike pay,  please submit a request for PSAC to resolve the problem using this form. 

Due to the large volume of inquiries that we have received with regards to strike pay, it may take some time before we can reach out in order to resolve your issue. 

Issues with hours of work first day back after strike

When returning to work after the Treasury Board strike ended on Thursday, May 4th, some PSAC members may have started later than their usual scheduled start time and some managers have raised this issue with them.

There are two important things to note:

• The union negotiated a buffer of 12 hours from the signing of the tentative agreement to provide members extra time to begin work the next day in case it was impossible for them to start earlier in the morning. Therefore no employee can be considered having arrived late as long as they were working by 11:00 a.m. ET since the agreement was only reached at 11:00 p.m. ET on May 4th.
• The employer is insisting that if this later start time reduced the number of hours worked that day, that those hours should be recouped by the employer. Managers have been formally directed however to be flexible in their approach to recouping the displaced hours and simply allow workers to make up the time where possible — or if employees prefer, they can simply submit leave for that time.

Strike pay is not considered taxable income by the Canada Revenue Agency. 

Periods while a member participates in a strike do not count as pensionable service. Also, the periods participating in a work stoppage strike cannot be “bought back.” However, these periods are not considered as “breaks” in pensionable service for purposes of calculating a member’s “highest five consecutive years of highest paid service.”  

The impact on the future pension for a member who participates in a strike is to push back — by the number of days on strike — the date on which he or she completes the required years of service to qualify for a pension. Your strike days will be reported to the pension administration by your compensation office.  

There will be no impact on the average salary on which the pension will be calculated for members whose days on strike do not fall within their five consecutive years of highest salary.  

Average salary for pension benefit purposes is always based on the member’s best five consecutive years of highest paid salary. Any salary lost due to a strike during the final average salary period is accounted for by extending back in time the average salary period so that five years of paid earnings are used in the calculation. 

For example, if a member had been on strike for 10 days during the relevant period, the average salary would be based on earnings paid during the best consecutive five years and 10 days of employment. It should be noted that average salary is based on five consecutive years of pensionable service, rather than on five continuous years of service.  

When contemplating retirement, members should be encouraged to obtain a copy of their exact record of pensionable service before deciding on their retirement date, to ensure that they have the required service for the pension option on which they are counting. 

You can update your contact information online by logging in to PSAC’s member portal or creating an account.  

If you have any issues logging in or creating your account, please reach out to our dedicated team by visiting the Contact Us page and choosing “PSAC online account help” from the dropdown menu.