# 2024-124 Pay and Benefits, Negligent Misrepresentation, Recovery of Overpayment, Recovery of Overpayment/Debt Write-Off

Case summary

F&R Date: 2025-04-25

The grievor grieved the decision of the Canadian Armed Forces (CAF) to recover overpayments resulting from administrative errors in his component transfer message and from the readjustment of his pay rate in connection with the pilot pay reform. He expressed dismay that this error had persisted for nearly four years, despite multiple checks having been carried out to confirm that his file was in order. As redress, the grievor requested that the recovery process be cancelled. 

The Director General Compensation and Benefits, acting as Initial Authority, concluded that the grievor had been treated in accordance with the applicable policies and refused to grant the requested redress. She stated that the grievor was obligated to repay the overpayment even if he had been diligent and the competent authorities had reviewed his pay file numerous times and failed to identify this error. 

The Committee recalled that on 11 July 2013, the Chief of the Defence Staff (CDS) at the time had decided that “Our liability as CAF member [sic] to ensure we receive appropriate compensation is not unlimited. It ends when subject matter expert confirm [sic] the entitlement.” The grievor had consulted the CAF's subject matter experts on more than one occasion, relying on their advice to make important financial decisions. The Committee therefore found that the grievor had been aggrieved. 

After evaluating the debt deletion mechanisms as per the Guide to Debt Deletion, the Committee recommended that the Final Authority (FA) order the preparation of a Treasury Board submission to submit a request for debt remission to the Governor in Council. The Committee also found that the grievor's case met the conditions set out by the Supreme Court of Canada in Queen v. Cognos Inc. for a claim against the Crown on the ground of negligent misrepresentation. The Committee therefore recommended that the FA transfer the grievor's file to the Director Claims and Civil Litigation, with the FA's support, to consider financial compensation, including redress for the negligent misrepresentation. Should this not be possible, the Committee recommended that the CDS authorize an ex gratia payment.   

The Committee also noted that in the past, the CAF had consistently asserted that members must assume responsibility for overpayments in accordance with article 203.04 of the Queen's Regulations and Orders for the Canadian Forces. However, the Committee noted that the CAF did not apply the same reasoning in interpreting the regulations concerning the responsibilities of accounting officers. The Committee recommended that the CAF consider adopting a policy to suspend the recovery of any monies from a member until a decision has been rendered by the competent authority and all possible recourse to the Federal Court has been exhausted.