Recovery of overpayments

The Receiver General for Canada has authority to recover overpayment from employee due to administrative error or if an unearned payment is made.

The following are examples that may be overpaid or paid in advance and need to be recovered:

Reference: Common Human Resources Business Process 4.01.08

Under Review

Employee

Repay these funds.

Overpayment identified by the Pay Centre

The employee will receive a notification from the Pay Centre that an overpayment has been identified and the amount to recover is greater than 10% of the gross pay.

Upon receipt of notification:

Repayment options

Lump sum recovery by cheque:

Recovery in four installments by post-date cheques:

Deduction

This option is available if you are receiving a monthly public service pension:

Financial hardship

If the amount to recover is greater than 10% of the gross pay and the full and immediate amount imposes a financial hardship:

Important: If no claim of financial hardship is made the overpayment will be recovered from the first available funds.

If the amount to recover is less than 10% of the gross pay, the funds will be automatically recovered from first available funds.

Overpayment identified in the department

(For example:  not reported by finance to the Pay Centre prior to the termination of that employee).

Provide amount to the Pay Centre for the creation of the overpayment.

Manager

The delegated authority:

Important: If delegated authority authorization is received, the hardship request is sent to the departmental authority for approval.

Upon receipt of authorization from delegated authority and departmental authority approval:

Note:  Either the manager or finance will send the repayment schedule via a trusted source who is responsible for authenticating the delegated authority signature to the Pay Centre: Mail facility by encrypted email, fax or mail, including a pay action request form PSPC 446-5E duly completed.

Important: If the hardship request is rejected. Inform the employee and the Pay Centre.

Human resources

If the hardship request is approved. Work with the delegated authority, employee and departmental finance to establish a repayment schedule.

Finance

If the hardship request is approved:

If an account is terminated and recovery is complete. Notify the Pay Centre so the amount can be removed from the pay system.

Trusted source

Upon receipt of authorization from delegated authority and departmental authority approval of hardship request:

Note: Paper requests submitted directly by employees to Pay Centre, without any departmental signatory requirements are excluded from the trusted source scope.

Pay Centre

Note: Phoenix will automatically recover the overpayment from the first available funds if the overpayment if less than 10% but will put on hold if greater than 10% for 6 months after notification unless a claim of financial hardship is received within this time period.

Upon receipt of approved and authorized claim of financial hardship:

Important: If the overpayment cannot be recovered by the organization it will be reported on the termination or retirement information form PWGSC 2386, the Government of Canada Pension Centre will recover the debt from pension payments where possible. This form is sent by the Pay Centre as part of the termination procedures to the Pension Centre.

Pension Centre

Upon receipt of the termination or retirement information PWGSC 2386:

Note: This form is sent by the Pay Centre as part of the termination procedures to the Pension Centre.

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