# 2015-093 - Interest Payment

Interest Payment

Case Summary

F&R Date: 2015–04–30

The grievor waited 18 months to receive his Payment in Lieu of Canadian Forces Severance pay (PIL CFSP). He filed a grievance requesting that interests or an ex gratia payment be paid to compensate for the delay in receiving his PIL CFSP.

The question before the Committee was whether the grievor is entitled to a financial compensation, either an ex gratia payment or payment of interests, for having waited 18 months to receive his PIL CFSP.

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 does not include interests resulting from errors in pay. The IA then concluded that the grievor was requesting the payment of interests, which cannot be done through an ex gratia payment as it would result in expanding the instrument that already exists, the CBI, and is therefore contrary to the Treasury Board directive

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 interests unless expressly required to do so by statute. While the Committee agreed with the grievor that 18 months appeared unreasonably long in processing and paying the PIL CFSP, it concluded that neither the National Defence Act nor the Regulations thereunder conferred authority to award the payment of interests. The Committee also agreed that an ex gratia payment was not possible in the circumstances.

The Committee recommended that the grievance be denied.

CDS Decision Summary

CDS Decision Date: 2015–11–06

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

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