April 21, 2004
Foreign Service Directives – FSD 25 – SHELTER – APRIL 1, 2004
APPENDIX A – SHELTER COST TABLE – APRIL 1, 2004
METHODOLOGY FOR THE DETERMINATION OF EMPLOYEE SHELTER COSTS
The present methodology for establishing shelter costs under FSD 25 (Appendix A) was effective April 1, 2001. The methodology is based on two distinct elements: one, a Base Table established from 1996 census data for Ottawa/Gatineau and re-based every 5 years, and two, annual indexing based on the Ottawa consumer price index for rented accommodation. The Base Table is derived from an analysis of rents in the Ottawa/Gatineau area on the basis of salary and household size performed by Statistics Canada. The indexing methodology is applied to the Base Table on April first of each year.
Census data for 2001 was published on May 13, 2003. In accordance with the methodology established in 2001, the Shelter Cost Table was re-based effective April 1, 2004 to reflect the 2001 Census rental data. The new Base Table (2001) was actually lower than the 1996 Base Table. This was caused by the reduction in the general standard of living, as reported in the Census. In general, one would expect that a small drop in shelter costs would occur every five years when the Base Table is recalculated.
In addition to this anomaly, the methodology was seriously flawed as a result of annual indexing of the Base Table between Censuses. Under the 2001 methodology, a substantial reduction occurs in the Shelter Cost Table every five years when the Table, which has been inflated by annual increases, is re-based to reflect lower rates resulting from loss of purchasing power, as reported in the Census.
It is clear that the 2001 methodology cannot continue as the annual indexing to the Base Table has led to shelter costs that are above the Ottawa/Gatineau rent level. The solution is to apply the 2001 Base Table without indexing and then adjust the employee's shelter cost to reflect salary and household size annually on April 1st. Adjustments to recognize changes in household size because of the arrival and departure of dependants would continue in accordance with the provisions of FSD 25.12(a)(ii), on the basis of the employee's salary used to determine the shelter cost before the change in household size.
The attached Shelter Cost Table, which was established on April 1st, 2004, following publication of the Census, will remain in effect for 5 years. The salary that the employee is actually receiving will determine the initial shelter cost at the time of occupancy of permanent accommodation, and any subsequent increase in salary, including a retroactive increase, will not impact on the employee's shelter cost until the following April 1st. The employee's annual salary on April 1st of each year will determine the employee's salary group. As long as an employee's salary remains within the same salary group, there will not be any increase in shelter cost until the table is re-based.
It has long been recognized that the Shelter Cost Table does not reflect reality by stopping at a salary group of $100,000 and above. Consequently, the table has been expanded to include salary groups up to $150,000 and above.
The Shelter Cost Table effective April 1, 2004 reflects actual Ottawa/Gatineau rental costs on the basis of salary and applies to all employees at post except for those few employees who continue to come under the transition provisions of Appendix B.
Appendix A
Employee shelter cost (dollars per month)
April 1, 2004
|
Number of Persons in Household |
|||||
|
Salary Group |
1 in household |
2 in household |
3 in household |
4 in household |
5 or more in household |
|
28,000 - 29,999 |
560 |
626 |
664 |
692 |
713 |
|
30,000 - 31,999 |
578 |
644 |
683 |
710 |
731 |
|
32,000 - 33,999 |
596 |
661 |
700 |
727 |
748 |
|
34,000 - 35,999 |
612 |
677 |
716 |
743 |
764 |
|
36,000 - 37,999 |
627 |
693 |
731 |
759 |
780 |
|
38,000 - 39,999 |
641 |
707 |
746 |
773 |
794 |
|
40,000 - 41,999 |
655 |
721 |
759 |
787 |
808 |
|
42,000 - 43,999 |
668 |
734 |
773 |
800 |
821 |
|
44,000 - 45,999 |
681 |
747 |
785 |
812 |
834 |
|
46,000 - 47,999 |
693 |
759 |
797 |
824 |
846 |
|
48,000 - 49,999 |
704 |
770 |
808 |
836 |
857 |
|
50,000 - 54,999 |
723 |
789 |
827 |
855 |
876 |
|
55,000 - 59,999 |
748 |
814 |
852 |
880 |
901 |
|
60,000 - 64,999 |
771 |
837 |
875 |
903 |
924 |
|
65,000 - 69,999 |
792 |
858 |
897 |
924 |
945 |
|
70,000 - 74,999 |
812 |
878 |
916 |
943 |
965 |
|
75,000 - 79,999 |
830 |
896 |
934 |
962 |
983 |
|
80,000 - 89,999 |
856 |
921 |
960 |
987 |
1,008 |
|
90,000 - 99,999 |
886 |
952 |
990 |
1,018 |
1,039 |
|
100,000 - 109,999 |
914 |
979 |
1,018 |
1,045 |
1,066 |
|
110,000 - 119,999 |
939 |
1,004 |
1,043 |
1,070 |
1,091 |
|
120,000 - 129,999 |
962 |
1,027 |
1,066 |
1,093 |
1,114 |
|
130,000 - 139,999 |
983 |
1,049 |
1,087 |
1,114 |
1,136 |
|
140,000 - 149,999 |
1,002 |
1,068 |
1,107 |
1,134 |
1,155 |
|
150,000 + |
1,021 |
1,087 |
1,125 |
1,152 |
1,174 |
Notwithstanding the provisions of Section 51 of the Public Service Staff Relations Act, revisions to this appendix shall not constitute a change in terms and conditions of employment for employees subject to the Foreign Service Directives.
Appendix B
Employee shelter cost (dollars per month)
April 1, 2004
|
Number of Persons in Household |
||
|
Salary Group |
1 in household |
2 in household |
|
28,000 - 29,999 |
597 |
|
|
30,000 - 31,999 |
619 |
|
|
32,000 - 33,999 |
654 |
|
|
34,000 - 35,999 |
678 |
|
|
36,000 - 37,999 |
717 |
|
|
38,000 - 39,999 |
745 |
|
|
40,000 - 41,999 |
‑ |
|
|
42,000 - 43,999 |
789 |
|
|
44,000 - 45,999 |
789 |
|
|
46,000 - 47,999 |
795 |
|
|
48,000 - 49,999 |
795 |
|
|
50,000 - 54,999 |
795 |
|
|
55,000 - 59,999 |
817 |
|
|
60,000 - 64,999 |
848 |
|
|
65,000 - 69,999 |
884 |
|
|
70,000 - 74,999 |
884 |
|
|
75,000 - 79,999 |
884 |
|
|
80,000 - 89,999 |
884 |
|
|
90,000 - 99,999 |
894 |
|
|
100,000 + |
894 |
1,189 |
Notes:
- This table applies to those employees who arrived at post prior to April 1, 2002 in accordance with FSD 25.08(a)(ii).
- This table represents the 2003 Shelter Cost table increased by 1.1%, which is the increase from November 2002 to November 2003 as reported by Statistics Canada.
- When no shelter cost is listed in Appendix B, the shelter cost in Appendix A applies.
- Notwithstanding the provisions of Section 51 of the Public Service Staff Relations Act, revisions to this appendix shall not constitute a change in terms and conditions of employment for employees subject to the Foreign Service Directives.