|
1 |
PURPOSE |
|
1.1 |
The purpose of this Bulletin is to provide Compensation Specialists and Pay Offices with clarification regarding overpayments and/or deductions which may be recovered from a Return of Contributions (ROC). |
| |
2 |
POLICY |
|
2.1 |
Where possible, recoveries are to be made from final salary or termination entitlements. Only in cases where the recovery cannot be made from these payments should the amount(s) be recovered from the ROC. |
| |
2.2 |
In cases where the ROC will be transferred to a Registered Retirement Savings Plan (RRSP), it is important that the employee be given the opportunity to repay outstanding amounts directly, rather than by recovery from the ROC. This will allow the employee to maximize the amount transferred to the RRSP. |
| |
2.3 |
Amounts due to the Crown |
| |
2.3.1 |
Overpayments of salary, allowances, and/or accountable expenses (i.e. salary advances, maternity benefits, travel and removal expenses) may be recovered from the ROC without written consent from the employee or the employee's estate, in cases where the employer is a Treasury Board department. |
| |
2.4 |
Supplementary Death Benefit Premiums |
| |
2.4.1 |
Outstanding Supplementary Death Benefit (SDB) premiums can be recovered from a ROC without written consent of the employee or beneficiary. |
| |
2.4.2 |
This rule applies to both current SDB premiums and premiums outstanding as a result of a Leave Without Pay (LWOP) period. |
| |
2.5 |
Disability Insurance and Long Term Disability Insurance Premiums |
| |
2.5.1 |
Disability Insurance (DI) and Long Term Disability Insurance (LTD) premiums are not considered amounts due to the Crown. They are amounts owed to the Insurer. Therefore, DI and LTD premiums cannot be recovered from the ROC without written consent from the employee or beneficiary. |
| |
2.5.2 |
It is the responsibility of the Compensation Specialist to receive written consent for recovery of these deductions and to advise the Pay Office accordingly. |
| |
2.6 |
Union Dues |
| |
2.6.1 |
It is important to note that Union Dues are not to be recovered from a ROC. |
| |
2.7 |
Statutory Set-off |
| |
2.7.1 |
Recovery of income tax arrears (Statutory Set-off) may be made from the ROC without written consent from the employee or the employee's estate. |
| |
2.8 |
Statutory Deductions |
| |
2.8.1 |
The only statutory deductions which may be recovered, as required, from the ROC are:
| i) Federal Gratuity Tax |
(Code 596), |
| ii) Provincial Gratuity Tax |
(Code 597), |
| iii) Ontario Retail Sales Tax |
(Code 936), and |
| iv) Quebec Sales Tax |
(Code 676). |
|
|
2.9 |
Voluntary Deductions |
| |
2.9.1 |
Voluntary deductions are not recovered from the ROC unless written consent is received from the employee or beneficiary. |
| |
2.9.2 |
Incomplete Canada Savings Bonds payments may be deducted from the ROC if so authorized by the employee on the Subscription Amendment Form (PWGSC-TPSGC 565). |
| |
3 |
INQUIRIES |
|
3.1 |
Any request for information regarding the foregoing should be addressed to your Public Works and Government Services Canada (PWGSC) Client Services Centre. |
