ARCHIVED Services Pay Directive: 1990-003 (02)

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January 9, 1990

Ottawa, Canada
K1A 0S5

SUBJECT : Maternity Supplementary Benefit Overpayment


1.1 The purpose of this directive is to advise you of a new procedure concerning the recovery of Maternity Supplementary Benefit payment due to the non-fulfillment of the beneficiary obligation.


2.1 Treasury Board policy states that certain obligations must be met by employees for the payment of Supplementary Benefits to be retained by beneficiaries. Revenue Canada - Taxation has recently advised us of the procedures to be followed when said payment must be recovered.


3.1 This new procedure must be adhered to immediately.


4.1 Overpayment where payment is made in current year and recovered in the current year.

In these cases, the overpayment can be recovered in the normal fashion using an 18R146, 148 or 244. Employing departments should use the code that was used to make the payment. This pay action will automatically reduce the T4 and Relevé 1 as required.

Overpayment where payment is made in a previous year and recovered in the current year.

In these cases, the overpayment must be recovered by using deduction code 16C540. The employing department must then issue a receipt for the amount which will be used by the employee to reduce his gross earnings for the current taxation year. There will be no adjustment made to the Unemployment Insurable or Canada/Québec Pension Plan pensionable earnings in these cases. Accordingly, there will be no refund of Canada Pension Plan (CPP) / Quebec Pension Plan (QPP) or Unemployment Insurance (UI) premiums for these recoveries.


5.1 Any queries on the foregoing may be directed by telephone to Advisory Services - Pay, Bernard Potvin at 819-956-2064 or Jan Norris at 819-956-2063.

Original Signed by
M.-J. Posen

Marie-Josée Posen
Compensation Branch
Accounting, Banking and Compensation Directorate

Reference: CJA 9015-18