# 2024-128 Pay and Benefits, Incentive Pay Category, Pay, Overpayment

Case summary

F&R Date: 2025-11-19

After completing Basic Military Officer Qualification (BMOQ), the grievor was retroactively promoted from Officer Cadet to Second Lieutenant (2Lt). However, due to an error in the Central Computation Pay System, the grievor's pay was updated but not their rank. The Director Military Pay and Allowances Processing (DMPAP) later reviewed the grievor's rank history and determined that they had been overpaid.

The grievor challenged the decision of the DMPAP to revert their Incentive Pay Category to 2Lt pay increments (PI) Basic, which resulted in the loss of their Lieutenant (Lt) back pay, an incorrect posting allowance, and the recovery of a salary overpayment. The grievor stated that their PI dates were based on their enrolment date until they finished their trade qualification. The grievor explained that even though their training was delayed, their PIs were still increasing. Upon promotion to the rank of Lt, the grievor argued that a calculation should have been conducted to determine the appropriate PI and to ensure they were not financially penalized. Consequently, the grievor believed that they should have been paid at a Lt PI 5 pay level instead of Lt PI 2 and explained that the regulation underscores the principle that promotion should not result in regression to a lower pay incentive.

The Initial Authority (IA), the Director General Compensation and Benefits, denied the grievance and determined that the grievor was promoted to the rank of 2Lt on completion of BMOQ and was paid their back pay at the correct pay rate and the new rates corresponded with their time in rank as a 2Lt and Lt. As for the overpayment, the IA indicated that the amount was offset when the grievor's promotion to Lt was entered and backdated, which eliminated the overpayment for PI 2 that they received in error.

The Committee found that the grievor was compensated in accordance with the applicable provisions of the Compensation and Benefits Instructions for the Canadian Forces. The grievor's pay history shows uninterrupted progression, which aligns with the promotion instructions and the training delay did not negatively affect their pay or career advancement. The grievor's pay was fixed, and between recovery of overpayment and receipt of back pay for her retroactive promotion, the grievor was remunerated correctly and received the appropriate posting allowance, based on applicable policies. The Committee recommended that the Final Authority not afford the grievor redress.