PPIM 4-4-18-4-3

Section: PAY ACTION CODE 18

Subsection: ENTITLEMENT -- ONGOING RECOVERY

DEFINITION

To recover the gross overpayment of an entitlement on an ongoing basis at a specified rate of recovery. This pay action cannot be used to recover a NET overpayment.

COMPLETE MANDATORY fields (PWGSC-TPSGC 2517-1). SEE NOTES for explanation.

FIELDS	NOTES
01	Mandatory.
05	Mandatory.
06	Mandatory.
09	Mandatory.
10	Mandatory.
11	Mandatory.
12	Mandatory. INPUT the employee's Personal Record Identifier (PRI). USE a leading zero to fill all nine spaces.
13	Mandatory.
14	Mandatory.
15	Mandatory.
18	LEAVE blank.
60	Mandatory. INPUT PAC "18".
61	Mandatory. INPUT Modifier "R" (Recover).
62	Mandatory. INPUT the code of the entitlement to be recovered.
63	Mandatory. INPUT the EFFECTIVE FROM, AM/PM date of the pay period during which the employee is starting a period of reduced or non-entitlement for an ongoing recovery.
65	Mandatory. INPUT Rate Base "0".
66	Mandatory. INPUT the rate amount of recovery to be deducted each pay period. The rate should not be less than 10% of the employee's gross pay per pay period.
69	Mandatory. INPUT the total amount of the gross overpayment to be recovered. This amount will be recovered at the rate specified in Field 66 each pay period until the overpayment amount is zero. If during recovery, the amount of overpayment outstanding is less than the rate amount to be recovered in Field 66, then the balance of the overpayment amount will be deducted and recovery will be complete.
71	INPUT the reason for leave without pay (LWOP) code (REFER to the " REASON FOR LWOP CODES" table in Section PPIM 4-4-15-1) in the first two spaces left justified, if the allowance is being recovered due to LWOP.
72	INPUT remarks as appropriate to clarify -- or LEAVE blank. Note: INPUT the information in free form text (FFT) when working with the On-Line Pay System.
73	Mandatory.
74	Mandatory.
75	Mandatory.
76	Mandatory.

REMARKS

1. MULTIPLE 18R "ONGOING" RECOVERIES.

   Multiple ongoing recoveries are NOT PERMITTED if the overpayment amount or recovery amount is changed or stopped. When the same DEDENT code applies, REPORT a PAC 18S and a new PAC 18R to re-instate the overpayment and commence recovery on an ongoing basis if required. When more than one DEDENT code applies, only one ongoing recovery is permitted and subsequent overpayments can be reported as a LUMP SUM amount or ongoing once the previous overpayment is cleared.

2. CASH PAYMENTS "ONGOING" RECOVERIES.

   A cash payment is not to be accepted once an ongoing recovery of an overpayment is established.

3. STATUTORY DEDUCTIONS.

   Gross overpayment recoveries will have the effect of lowering the gross payable prior to calculating statutory deductions. Therefore, the amounts deducted for superannuation, taxation, the Canada Pension Plan (CPP), the Quebec Pension Plan (QPP) and employment insurance (EI) will be reduced at source.

4. | CALENDAR YEAR END PROCESSING.

   When an ongoing recovery exists on the Master Employee Record (MER) at calendar year end with an outstanding balance remaining in the gross overpayment field (either current or previous year), the following actions will automatically occur:

   1. | The full amount remaining in the "Gross Overpayment" element will be reduced from the Gross Earnings field on the "old" year record. Thus, the outstanding balance of the overpayment is not included in the employment income box of the T4/Releve 1.
   2. | This amount will be credited into the gross earnings on the "new" year record. Thus, the amount will show on the year to date of the gross earnings on the first pay stub of the calendar year. This added amount will be reduced by any amounts recovered during the year.
   3. | If there is an outstanding balance at the end of that year, the same process will occur until the overpayment is recovered in full.
      1. | Original ongoing overpayment (18R/ENR) is reported in 2009 - Total gross amount of the overpayment = $4,000.
      2. | $1,000 recovered from regular pay in 2009 ($3,000 remains in "Gross Overpayment" element).
      3. | $3,000 reduced from the 2009 gross earnings (Employment Income box of 2009 tax slips).
      4. | $3,000 added into the "Gross Earnings" element for 2010 (year to date gross earnings of PP01/2010).
      5. | $2,000 recovered from regular pay during 2010 ($1,000 remains in "Gross Overpayment" element).
      6. | $1,000 reduced from 2010 gross earnings (Employment Income box of 2010 tax slips) and added to 2011 "Gross Earnings" element (year-to-date gross earnings of PP01/2011).

SALARY/SERVICE UPDATE

When a PAC 18R is processed by the Salary/Service History Update Program:

• The PAC 18R will not update or be resident on the salary/service history. The PAC 18R (ongoing recovery) will not locate a matching Pay line on salary/service and will consequently be bypassed.

Last Update: July 2011

Document PPIM 4-4-18-4-3 - Entitlement -- On-Going Recovery Navigation

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