# 2014-131 - Interest Payment

Interest Payment

Case Summary

F&R Date: 2014–10–27

The grievor was informed that he had been receiving the wrong rate of pay for two years. Although his pay was adjusted upward retroactively, he filed a grievance requesting that interest be paid on the amounts received late.

The question before the Committee was whether the grievor is entitled to interest on amount paid to him retroactively.

The Initial Authority (IA) denied the grievance, ruling that it did not have authority to grant the redress requested as compensation policy is governed by Treasury Board. The IA further explained that the Compensation and Benefits Instruction (CBI) 203.29(6) is the only policy dealing with payment of interest and that the CBI does not include interest resulting from errors in pay.

The Committee noted that the Supreme Court had already ruled on the matter and had indicated that the Crown, which has immunity, could not be required to pay interest unless expressly required to do so by statute. The Committee concluded that neither the National Defence Act nor the Regulations thereunder conferred authority to award the payment of interest.

Accordingly, the Committee recommended that the grievance be denied.

CDS Decision Summary

CDS Decision Date: 2015–02–23

The CDS agreed with the Committee's findings and recommendation that the grievance be denied.

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