ARCHIVED Services Pay Directive 1984-16 (10)

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March 5, 1984

Ottawa, Canada
K1A 0S5

SUBJECT : Collection of Overpayments (Non-reversible Deductions)


1.1. The purpose of this directive is to remind paying offices and departments of their responsibilities with regard to the above noted topic.


2.1. When a pay cheque is returned to the paying office for amendment or cancellation, where possible, action is taken to reverse the deductions and the amounts are applied against the gross overpayment.

2.2. Deductions which have not been remitted to the applicable organization and those for which there is authority to recover from subsequent remittances (e.g. Income Tax, Canada Pension Plan (CPP), UIC and Public Service Superannuation Act PSSA) are reversed and applied against the gross overpayment.

2.3. In certain cases, however, deductions withheld from an employee's pay cheque are immediately forwarded to the applicable organization (e.g. CS Co-op and other Credit Unions). Once these deductions have been remitted, they cannot be recovered from that organization; thereby becoming non-reversible by the paying office.

2.4. Those deductions outlined in 2.3 represent the net overpayment. These amounts will be reflected on the overpayment notice forwarded to the employing department to initiate the corresponding recovery action.


3.1. Paying offices will endeavor to recover all outstanding amounts (normally from first available funds) from continuing or terminated employees on the direction of departmental personnel offices.

3.2. However, when an employee leaves the public service and a pay cheque is cancelled after the fact, some deductions may already have been remitted to the appropriate agency. Paying offices will continue to collect any outstanding balances from future remuneration due the employee; however, the employing department is responsible for that portion of the overpayment not collected.


4.1. Any queries on the foregoing may be directed by telephone to Advisory Services Pay at 997-7292.

Original Signed by
B. Crossfield

B. Crossfield
Director General
Compensation and Payments Services Branch