Temporary Re-Employment of Pensioners
under the Public Service Pension Plan (PSPP)
or the Management Employees Pension Plan (MEPP)

This directive outlines the terms and conditions under which former employees in receipt of a pension under the Public Service Pension Plan (PSPP) or the Management Employees Pension Plan (MEPP) may be temporarily re-employed by the Government of Alberta. 

Nothing in this directive prevents a PSPP or MEPP pensioner from applying for employment on open competitions. 

Pension legislation allows a PSPP or MEPP pensioner to continue to receive pension benefits when re-employed by the Government of Alberta, however, they cannot contribute further to PSPP or MEPP.

Under no circumstances is a contract of employment to be used for a person filling a bargaining unit position, providing a bargaining unit service, or occupying a class represented by the Alberta Union of Provincial Employees.

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Conditions for Temporary Re-Employment of a Pensioner

Subject to the Public Service Employment Regulation, the Deputy Minister may, with prior consultation and approval by the Public Service Commissioner, on behalf of the Government, temporarily re-employ a PSPP or MEPP pensioner.

Prior consultation with the Public Service Commissioner is required before any discussions take place with employees pursuant to this Directive. Any extensions to a re-employed pensioner arrangement must be approved by the Public Service Commissioner.

The re-employment of pensioners must meet the following criteria:

  • Demonstration that the need can only be filled by a former employee who has become a pensioner.

And

  • To complete a specific project or initiative, where the end date is known and where their departure will create significant difficulties in the completion of the project or initiative;  or

  • To facilitate knowledge transfer or mentoring for their former role, in which case the term of the knowledge transfer will be time certain.

Deputy Ministers and Senior Officials are not to be re-employed as pensioners under this directive.

The following charts outline the administrative guidelines that apply when temporarily re-employing a pensioner to perform a management, opted out or excluded or a bargaining unit function.

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Contract Employment - Management and Opted Out & Excluded Employees

Departments are responsible for determining the job class or evaluation rating as the basis for negotiating a rate of pay for the contract. Work being done through a Contract of Employment is not part of the official pay plan or the classification plan, however, departments are expected to consider the pay plan, classification plan and level of work when determining the appropriate salary. Individuals employed through a contract do not have access to the classification appeal process.

Employment Status
Contract of employment.
Duration
Up to 2 years with the possibility for renewal if required.
Salary
Salary established within appropriate pay zone/range

May provide up to an additional 25% of salary as outlined in the directive on Contract of Employment Salary, Length, and Benefits in consultation and with approval of Public Service Commissioner.

Benefits
Standard contract benefits as outlined in the directive on Contract of Employment Salary, Length, and Benefits (subject to the terms and conditions of the plans).
Staffing Process
Appointment under Deputy Minister authority, in consultation and with approval of Public Service Commissioner.
Contract Template
See Contract of Employmentpdf document.
Contract Termination
The notice period should be based on Employment Standards.
Contract Extensions
Determine whether an extension (or renewal) is required in advance of the contract expiry date, obtain the appropriate approvals and notify the employee accordingly (see Request for Contract Extensionpdf document and Addendum to Agreement (Extension)pdf document.

Extensions must be done in consultation and with approval of Public Service Commissioner.

Pay Adjustments

The Deputy Minister may authorize a pay adjustment in consultation with the Public Service Commissioner for contract employees as set out in pay policies approved for management, opted out, excluded, or excluded administrative support classes (see Request for Contract Pay Adjustmentpdf document and Addendum to Agreement (Pay Adjustment)pdf document.

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

Authorities and Approval Process
Deputy Minister in consultation and with approval of the Public Service Commissioner.
Reporting
Copies of all contracts provided to the Public Service Commissioner; Annual reporting to the Public Service Commissioner.

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Temporary Employment - Management and Opted Out & Excluded Employees

Employment Status
Temporary salaried position.
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 plans).
Staffing Process
Exemption from competition.
Authorities and Approval Process
Deputy Minister in consultation and with approval of the Public Service Commissioner.
Reporting
Annual reporting to the Public Service Commissioner.

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Temporary Employment - Bargaining Unit Employees

Employment Status
Temporary salaried position.
Duration
Up to 2 years with the possibility for renewal if required.
Salary
Appropriate placement within the relevant pay grade/range based on the job evaluation for the position.
Benefits
Benefits as per the Master Agreement (subject to the terms and conditions of the plans).
Staffing Process
Exemption from competition.
Authorities and Approval Process
Deputy Minister in consultation and with approval of the Public Service Commissioner.
Reporting
Annual reporting to the Public Service Commissioner.

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Wage Employment - Opted Out & Excluded and Bargaining Employees

Wage employment is to be used when a pensioner is to be rehired to perform work that is less than 40% of normal full time hours. Note: Management employees cannot be hired on wages.

 
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
As per Public Service Employment Regulation (subject to the terms and conditions of the plans).
Benefits as per the Master Agreement (subject to the terms and conditions of the plans).
Approval
Deputy Minister in consultation and with approval of the Public Service Commissioner.
Deputy Minister in consultation and with approval of the Public Service Commissioner.
Reporting
Annual to the Public Service Commissioner.
Annual to the Public Service Commissioner.

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Fee for Service Contracts

Fee for service contracts will comply with current guidelines. Refer to Contract of Employment or Fee for Service Contract - Directive.

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About this Directive

Authority:   Public Service Act (Section 28)
Public Sector Pension Plans Act
Application:   Organizations under the Public Service Act
Effective Date:   29 June 2009
Contact:   Compensation

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