Contents

• Introduction
• Application
• Definitions
• Guidelines
• Procedures
• Authorities and References

Introduction

1. On the retirement of a long-term employee who leaves the government in good standing, the GNWT expresses appreciation for commitment and dedication to the Territorial Public Service.

top

Application

2. These guidelines and procedures apply to all employees who are retiring from the GNWT in good standing and are eligible for the corresponding service appreciation certificate and award.

top

Definitions

3. Retirement from the Public Service means departing with an entitlement to an immediate unreduced annuity under the Superannuation Plan.
4. Territorial Public Service (TPS) date means the date an employee was hired or re-hired by the Government of the Northwest Territories.  This date includes casual employment if it preceded regular employment with no more than a thirty-day break. It also includes all periods of employment with breaks of less than three months, in cases where an employee was terminated for reasons other than dismissal, abandonment of position or rejection on probation, and periods of less than one year where an employee was on lay-off status.
5. Non-cash awards are defined by the Canada Revenue Agency (CRA): This excludes cash or items that are near cash such as stocks, bonds, raw precious metals, digital currency, a pre-paid card issued by a financial institution and gift cards that do not meet all the conditions outlined by CRA. Employee non-cash awards must be direct purchased by the government department or agency. They cannot be purchased by the employee and later reimbursed.

top

Guidelines

6. An employee who is departing the Public Service and who are eligible for retirement, will give their department notice of their retirement/departure date as outlined in their terms of employment.
7. Length of Service for the purpose of service appreciation is service with the Territorial Public Service. Territorial Public Service is calculated from the employee's TPS date. Service is considered to be uninterrupted if the employee has been on approved leave.
8. Departments and Agencies are responsible for all costs pertaining to the function, including service appreciation certificates, awards and award events.
9. Department and Agencies are responsible for providing at least one week’s notice to Management and Recruitment Services when assistance is requested for service appreciation events.
10. Retirement Service appreciation events are intended as a celebration of the occasion and should therefore be arranged as a department function if possible.
11. Award recipients must be contacted in advance of the award event to determine suitability and appropriateness of the event.  Private functions are permitted.
12. If the employee chooses an award that has a value that is greater than the amount they are entitled to, and pays the difference themselves (the amount of the item less the amount they are entitled to as a non-cash award), the amount paid for by the employee is not considered taxable income by the CRA even if the amount of the item is greater than $500. The employer portion paid (which may not be greater than their entitlement) must be paid for by the GNWT directly and not reimbursed later to the employee.  
13. At an employee’s request and in lieu of a non-cash award, Departments and Agencies may make a charitable donation on behalf of the employee to a charity of the employee’s choice registered with the Canada Revenue Agency. Such donations are made at the discretion of the Deputy Head.  Departments are responsible for processing the payment to the charitable organization, preferably by corporate credit card. 
14. Retirement appreciation awards do not include travel costs for employees or other individuals to attend a function.
15. Long-term employees retiring from the GNWT are given a framed appreciation certificate and an award with entitlements outlined as follows:

16. GNWT contributions towards a service appreciation event will be used exclusively for that purpose.
17. The purchase of alcoholic beverages and/or cannabis is not an eligible expenditure.
18. Non-cash awards provided to employees must follow the CRA Administrative Policies for non-taxable awards.

top

Procedures

19. On notification of the retirement of an employee, Management and Recruitment Services verifies the years of service for the service appreciation award recipient(s), prepares certificates for signature and ensures that the appropriate signature for each certificate is obtained.

top

Authorities and References

Canada Revenue Agency – Taxable Benefits for Awards, Gifts, Long Service Awards

Financial Administration Manual

IB 765.01-765.02; Extending and Accepting Hospitality and Gifts
770;  Promotional Material

top