# 2014-123 - Overpayment, Pay, Pay recovery – Mandatory meeting with a Pay Specialist, Remission

Case Summary

F&R Date: 2015–04–23

After frequently questioning his rate of pay over a period of several years, the grievor was informed by his Commander that he had been paid at an incorrect rate of pay since his promotion to the rank of Second Lieutenant. He was told that despite this being an administrative error by the CAF, they were required to recover these overpayments.

The grievor felt that it was unfair for the CAF to find the mistake several years later and ask him to reimburse what had become a debt to the Crown.

In redress, he asked for the cancellation of the recovery measure, a written apology from the CAF and a detailed, comprehensive summary of all the transactions on his pay and his income statements (T4 and Relevé 1). Finally, the grievor asked for the reimbursement of all the expenses he had to incur for professional services and the reimbursement of all other fees associated with the handling of his case.

The initial authority was unable to render a decision within the established deadline.

The Committee noted that the grievor had been extremely diligent and had taken the necessary measures to ensure that he was being paid at the rate to which he was entitled. The pay specialists had assured him several times that he was being paid at the correct rate despite the concerns raised by the grievor. The Committee therefore concluded that the grievor's situation met the criteria of an inaccurate statement made through negligence and that he should therefore be compensated or not be held accountable for reimbursing the debt. The Committee also concluded that the CAF should assume much of the responsibility and determine a just, fair and appropriate resolution to the problem.

The Committee was of the opinion that the grievor's situation may meet the criteria of Section 25 of the Financial Administration Act (FAA), thus making him eligible for a debt write-off, or he may meet the criteria of paragraph 23(2.1) of the FAA, thus making him eligible for forgiveness of his debt.

The Committee recommended that the Chief of the Defence Staff (CDS) order that a submission be made to Treasury Board (TB) asking it to authorize a write-off or forgiveness of the grievor's debt. Alternatively, if the CDS did not agree with these options, the Committee recommended that the grievor's case be forwarded to the Director Claims and Civil Litigation, with the support of the CDS, asking it to examine the possibility of granting damages under TB directive on claims and ex-gratia payments. The Committee also recommended that the CDS support the grievor's request regarding reimbursement of the professional expenses he had incurred.

Finally, the Committee recommended that the CDS order the Director Accounts Processing, Pay and Pensions to have a pay specialist carry out a comprehensive review of the grievor's pay, T4s and Relevés 1 and have this specialist meet with the grievor in person to provide him with all the documents, regulations and explanations related to all the transactions on his pay file, his T4s and Relevés 1 based on the relevant regulations of the Canada Revenue Agency and Revenu Québec.

CDS Decision Summary

CDS Decision Pending