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1978-223-e.html
SERVICES PAY DIRECTIVE: 1978-223 (52)
November 30, 1978
Hull, K1A
0S5
SUBJECT: Recovery of Salary Overpayments
The purpose of this directive is to provide procedures for the recovery of
salary overpayments and to supplement Services Pay Directive 75-186 (47), dated
December 10, 1975, which deals with overpayments that must be recovered from
the first available funds due to the employee.
Treasury Board Circular 1971-107, dated July 19, 1971, (Services Pay Directive
71-109), provides deputy heads and heads of agencies with the authority, under
certain conditions, to extend the recovery of salary overpayments over a number
of pay periods. It is noted that this direction is not being followed in all
cases. Salary overpayments are a debt due to the Crown and recovery is not,
therefore, contingent upon the approval of the employee.
The department, not the paying office, is responsible for
ensuring that all overpayments of salary, wages, pay or pay and allowances are
recovered from any sum of money that may be due or payable to an employee or
former employee who has been overpaid.
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The following procedure should be observed in respect to of those overpayments
for which an extended recovery period is provided by Treasury Board Circular
1971-107.
Active Employees
When an overpayment of salary is discovered by the paying
office for an employee who is on strength, the department or agency will be
advised of the amount overpaid. No further action will be taken by the paying
office until the responsible department or agency notifies the paying office in
writing of the rate and/or the period of recovery.
When a department or agency discover an overpayment which can
be recovered over a specified period, the reporting document sent to the paying
office should indicate the rate of recovery and/or the period of recovery. If
no direction is given to the paying office, then the recovery of the
overpayment will be made in full from the first available funds due to the
employee.
Terminated
Employees
When an overpayment of salary
remains after all available funds have been applied and the individual has
terminated his employment in the public service, the paying office will advise
the department or agency of the outstanding amount of the salary overpayment.
No further action will be taken by the paying office once they have notified
the department of the outstanding overpayment. If the terminated employee is
entitled to an immediate annuity, an immediate annual allowance or a deferred
pension type benefit under the terms of the Public Services Superannuation Act,
the department will notify the Superannuation Division of the amount overpaid
and the rate of recovery. When the individual's public service pension becomes
payable, the Superannuation Division will initiate recovery of the overpayment,
either at the rate specified by the department or agency or by installments
equal to 10% of the individual's monthly basic pension, whichever rate is the
lesser. If the overpayment is liquidated prior to the commencement of the
pension, the department or agency must notify the Superannuation division
immediately.
When an overpayment has been
partially or fully recovered from a pension benefit, it is the responsibility
of the department or agency to inform the paying office. This action will
enable paying offices to maintain correct and up-to-date
records.
The above procedures do not preclude
normal liaison between departmental personnel and paying offices regarding
overpayments but are intended to formalize procedures to ensure recoveries are
made. Departments and Agencies should try to minimize overpayments by prompt
dispatch of pay action documents and by the return to paying offices of
obviously incorrect cheques.
If the contents of
this directive differ from the provisions of a collective agreement, the
agreement governs.
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Original Signed by
J. D. L. Campbell
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B. Crossfield
Director General
Compensation Services Branch
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[Print Version]