# 2023-147 Pay and Benefits, Post Living Differential, Recovery of Overpayment/Debt Write-Off

Case summary

F&R Date: 2024-08-08

The grievor challenged the decision of the Canadian Armed Forces (CAF) to recover overpayments of the Post Living Differential (PLD) paid to him during his posting in Montreal between 2018 and 2021. During this period, the grievor's primary residence was on the North Shore of Montreal, but just outside the limits of the Post Living Differential Area (PLDA) for this area. For this reason, the CAF informed the grievor that he should not have received PLD payments during his posting in Montreal and that the money now had to be recovered. The grievor disagreed with the recovery action, holding the CAF fully responsible for having approved his PLD payments for the North Shore of Montreal area and for having provided him with incorrect information on the matter. In his opinion, it was unreasonable to expect a member to correctly understand the application of the rules pertaining to geographic areas, particularly when the experts themselves had difficulty interpreting and applying them consistently. As redress, the grievor requested the cancellation of his debt and any interest incurred. 

The Director General Compensation and Benefits, acting as Initial Authority (IA), determined that the grievor had been treated in accordance with the applicable policies and refused to grant the redress requested. In her decision, the IA stated that to be entitled to the PLD, the member's primary residence had to be located within a PLDA. Even if the primary residence was within the geographical boundaries established for Operation ZONAGE, it was located outside the boundaries of the PLDA defined for the North Shore of Montreal. The IA acknowledged that the grievor had been the victim of an administrative error, but maintained that it was his responsibility to repay the debt, as prescribed in article 203.04 of the Queen's Regulations and Orders for the Canadian Forces. 

The Committee wanted to highlight the fact that files involving administrative errors in members' financial benefits are a recurring issue. It stated that, although overpayments resulting from errors had to be recovered, they have harmful consequences for members and their families. Members are forced to submit grievances to resolve their situation, which inevitably creates additional costs for the Crown and reinforces the public's negative opinion of the CAF.  

The Committee concluded that the grievor had been aggrieved because he had taken it upon himself to consult the CAF's human resources professionals and because it was rather legitimate to assume that in such a situation, a reasonable person would naturally trust the CAF's subject matter experts, without questioning their qualifications. The Committee therefore recommended that the Final Authority consider the scope of the financial and personal repercussions of the recovery for the grievor and prepare a submission to the Governor in Council for the remission of the debt.