# 2021-080 Pay and Benefits, Ex gratia, Interest Payment

Case summary

F&R Date: 2022-03-17

The grievor grieved the decision of the Director for Military Pay and Allowances Processing (DMPAP) to debit a large amount from her pay account for unpaid contributions to her Regular Force Pension Plan. In order to continue to fulfill her financial duties, she signed a line of credit agreement with a bank to reimburse the unpaid contributions to her pension plan. As redress, she requests reimbursement of the interest on the loan she had to take out, as well as compensation for the financial damages she suffered due to the Canadian Armed Forces's administrative error in its management of her file.

The Initial Authority stated that they did not have the authority to grant the grievor the redress sought.

The Committee concluded that DMPAP's decision to debit the grievor's pay account was unjustified and was not in accordance with the applicable policies. Nevertheless, they concluded that the Final Authority had no authority to reimburse the interest costs.

The Committee specified that by debiting the grievor's pay account without warning and without the possibility of readjusting her finances or negotiating a recovery period, the DMPAP put the grievor in a difficult and stressful financial situation. The Committee fond that this situation met the criteria for an ex gratia payment.

The Committee recommended that the Chief of the Defence Staff (CDS) order DMPAP to reimburse the grievor for the amount of her bank loan and authorize her to subsequently reimburse that debt over a period of 46 months. In addition, the Committee recommended that the CDS grant the grievor an ex gratia payment in the amount of $1,500 in recognition of the stress and mental distress the grievor suffered.

Lastly, in the event that the CDS is not in agreement with the preceding recommendation, the Committee recommended that he grant the grievor an ex gratia payment totalling $3,500 for all the harm she suffered.