# 2021-238 Pay and Benefits, Delayed Army Communications and Information Systems Specialist Pay Review, Recovery of overpayment

Case summary

F&R Date: 2023-01-04

As a result of numerous unexplained adjustments to his pay account related to the implementation of Specialist pay for the Army Communications Information Systems Specialist (ACISS) occupation, the grievor was informed that he owed a debt to the Crown. The grievor argued that he had not received any over payments to his bank account and that mistakes made to his T4 slips resulted in him suffering additional financial costs. As redress, the grievor asked that the amount recovered from him be restored to his pay account and that he be reimbursed for the related financial costs.

The Initial Authority (IA), the Director General Compensation and Benefits, was unable to adjudicate the file within the time limit and the grievor elected to have his grievance forwarded to the Final Authority without an IA decision. However, in preparation for the IA, the Director of Military Pay and Allowance Processing (DMPAP) reviewed the grievor's pay account and explained that the amount owed occurred due to tax adjustments made to the grievors pay account. DMPAP stated the grievor could recover some funds from the Canada Revenue Agency (CRA) to offset the amount that was recovered from him.

The Committee found that the grievor had been aggrieved by the mismanagement of his pay account. The Committee noted that the grievor provided his personal bank statements showing that no additional pay had been deposited. The grievor had also hired an accountant who was unable to reconcile the grievor's pay with his T4s. The Committee asked DMPAP to review this information and explain why the grievor owed a debt. No reply was received to the Committee's request. The Committee concluded that the Canadian Armed Forces (CAF) had not proven that the grievor had received an overpayment. The Committee also found that, although the grievor's other financial costs fell outside of the CAF's authority, reimbursement of the cost of hiring the accountant was fair and reasonable. The Committee recommended that a third-party accounting firm be engaged to conduct a detailed audit of the grievor's pay account and determine how to best resolve the CRA taxation issue. The Committee also recommended that the grievor be reimbursed for the expenses he incurred for the services of a professional accountant and that CAF support be provided should the grievor need to re-file his tax statements.