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:

  1. This table applies to those employees who arrived at post prior to April 1, 2002 in accordance with FSD 25.08(a)(ii).
  2. 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.
  3. When no shelter cost is listed in Appendix B, the shelter cost in Appendix A applies.
  4. 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.