About this directive

Reference to applicable legislation (act or regulation): Section 11, Public Sector Pension Plans Act

Sections 4.02, 4.03, 4.04 and 11.05, Public Service Pension Plan

Application: All employees formerly appointed or employed pursuant to the Public Service Act and receiving a pension under the PSPP and the MEPP who are hired without a competitive process.
Last updated: February 2022
Last reviewed: February 2022
Amended by: Alberta Public Service Commission:
Strategic Services and Public Agency Secretariat; Workforce Policy Branch, Workforce Policy

Purpose

Departments may identify a need to complete a specific project or initiative, facilitate knowledge transfer, or provide mentorship for a specific role, which requires the temporary re-employment of a former Alberta Public Service employee who is receiving a pension.

Overview

This directive describes the criteria under which former Alberta Public Service employees, who are receiving a pension under the Public Service Pension Plan (PSPP) or the Management Employees Pension Plan (MEPP), can be temporarily re-employed without a competitive process. This directive does not apply if a PSPP or MEPP pensioner is hired through an open competition.

Definition of terms

Disclaimer: If there are any discrepancies in how the terms are defined below and the Public Service Act and Public Service Employment Regulation (PDF, 1.1 MB), the act and regulation supersede.

Deputy head: Chief officer of a department, as well as various positions including clerks, officers, and commissioners as prescribed in section 1(d) and section 1(d)(viii)(B) of the Public Service Act.

Senior official: individuals appointed by an Order in Council and paid by the Government of Alberta.

Temporary re-employed pensioner: a former Alberta Public Service employee who is receiving a pension under either the PSPP or the MEPP and who is temporarily rehired without a competitive process.

Temporary re-employment of pensioners

Pension legislation allows a PSPP or MEPP pensioner to continue to receive pension benefits when re-employed by the Government of Alberta, however, they can no longer continue to contribute to PSPP or MEPP.

Criteria for temporary re-employment of a pensioner

Consultation with, and approval from, the Public Service Commissioner is required before a deputy head can temporarily re-employ a PSPP or MEPP pensioner. Extensions to a re-employed pensioner arrangement must also be approved by the Public Service Commissioner.

A pensioner can only be temporarily re-employed when:

  • the staffing need can only be filled by a former Alberta Public Service employee who has become a pensioner; and
  • the pensioner will be either:
    • completing a specific project or initiative, where the end date is known, or
    • facilitating knowledge transfer or mentoring in relation to their former role, with a specific end date

Former deputy heads and senior officials are not eligible to be re-employed as pensioners in any capacity under this directive.

Fee-for-service contracts

In some circumstances, it may be possible to retain a pensioner as an independent contractor, pursuant to a fee-for-service contract. A pensioner returning on a fee-for-service contract is a contractor and not an employee. To determine if a fee for service contract is appropriate and to ensure compliance with all fee for service contract requirements, please consult with your department’s finance team.

Appendix

The following charts outline the conditions that apply when temporarily re-employing a pensioner in a management position, opted out or excluded position, or for bargaining unit work.

  • Contract of employment – Management and opted out and excluded employees

    Management and opted out and excluded employees

    (This does not apply to bargaining unit or wage employees).

    ​Employmen​​t status​​​ Co​​ntract of employment.
    Duration​ Up to 2 years with the possibility for renewal, if requi​red.
    Salary Salary established within appropriate pay zone or range.

    ​​May provide up to an additional 25% of salary as outlined in the Contract of Employment Administrative Guidelines with the prior approval of the Public Service Commissioner.

    ​Benefits Standard contract benefits as outlined in the Contract of Employment Administrative Guidelines (subject to the terms and conditions of the benefit plans).
    Staffing process Deputy head authority with the prior approval of the Public Service Commissioner.
    Contract termination Notice periods may not be less than the minimum as outlined in the Employment Standards Code.
    Contract extensions Extensions require the prior approval of the Public Service Commissioner.
    Pay adjustments ​In consultation with the Public Service Commissioner, the Deputy Head may authorize a pay adjustment as set out in pay policies for management, opted out, or excluded classes.

    ​Pay adjustments are normally effective on the anniversary date of the employee.

    Authorities and approval process Deputy head with the prior approval of the Public Service Commissioner.
    Reporting​ Copies of all contracts must be provided to the Public Service Commissioner for annual reporting.
  • Temporary employment – Management and opted out and excluded employees

    Management and opted out and excluded employees

    (This does not apply to bargaining unit or wage employees).

    Employment status Temporary salaried employment.
    Duration Up to 2 years with the possibility for renewal, if required.
    ​Salary​ Appropriate placement within the relevant pay zone or range based on the job evaluation for the position.
    Benefits​ Includes eligibility to participate in the 1st Choice Benefits Program (subject to the terms and conditions of the benefit plans).
    Staffing process​ Exemption from competition.
    Authorities and approval process Deputy head with the prior approval of the Public Service Commissioner.
    Reporting Annual reporting to the Public Service Commissioner.
  • Temporary employment – Bargaining unit employees

    A contract of employment cannot be used for bargaining unit work.

    Bargaining unit employees

    (This does not apply to management or opted out and excluded or wage employees).

    Employment status ​Temporary salaried employment.
    Duration Up to 2 years with the possibility for renewal, if required.
    ​Salary Appropriate placement within the relevant pay grade or range based on the job evaluation for the position.
    Benefits Benefits as per the Master Agreement (subject to the terms and conditions of the benefit plans).
    Staffing process​ ​Exemption from competition.​
    ​Authorities and approval process ​Deputy head, with the prior approval of the Public Service Commissioner.
    ​Reporting ​Annual reporting to the Public Service Commissioner.
  • Wage employment – Opted out and excluded and bargaining unit employees

    Wage employment must be used when an opted out and excluded or wage pensioner is rehired to perform work that is less than 40% of normal full time hours for the classification. Wage employment is not limited to work that is less than 40% and may also be used for work that is 40% or more of normal full time hours for the classification.

    Wage employment cannot be used for management level work.

    Opted out and excluded and bargaining unit employees

    (This does not apply to management employees).

      Opted out and excluded Bargaining unit
    Staffing process ​Wage Employment. ​Wage Employment.
    Salary ​Based on salary in range with recognition of experience. Based on salary in range with recognition of experience.
    ​Benefits A​s per Public Service Employment Regulation (subject to the terms and conditions of the benefit plans). ​Benefits as per the Master Agreement (subject to the terms and conditions of the benefit plans).
    Approval ​Deputy head with the prior approval of the Public Service Commissioner. Deputy head with the prior approval of the Public Service Commissioner.
    ​Reporting ​Annual to the Public Service Commissioner.​ Annual to the Public Service Commissioner.

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