Repay an overpayment

If you have received an overpayment, you must repay it. Depending on the overpayment cause and the amount, the overpayment will either be deducted from first available funds or you will receive an overpayment notice which will list repayment options.

Recovery from first available funds

The following types of overpayments will be recovered from first available funds, without an overpayment notice:

• Overpayments of less than 10% of an employee’s gross bi-weekly pay
• Leave Without Pay (LWOP) of 5 consecutive days or less
• Overdrawn leave upon termination of employment (for reasons other than incapacity/illness and layoff)
• Cancellation of a leave with income averaging agreement by the employee, where the leave has been taken
• Maternity/parental allowance (top-up), where the employee has not fulfilled their obligation as set out in their collective agreement or terms and conditions of employment
• Leave without pay as a result of withdrawing services during a strike

Notices and repayment options

The notice that you receive will indicate all the repayment options that are available, including lump sum payments and flexible repayment options.

If you acknowledge the overpayment within the timeframe indicated in the notice you receive, and are an active employee, you will be eligible for the flexible repayment options.

If you do not acknowledge the overpayment within the timeframe established in the notice you receive, the recovery of your overpayment will be processed using the default repayment indicated in the notice.

Flexible repayment options

Flexible repayment options are available to those who have acknowledged their overpayment and paying the full amount at once is too difficult.

The flexible repayment options start when:

• all monies owed to the employee have been paid
• the employee has received 3 consecutive correct gross pays, and a recovery agreement has been established with the employee

Terminated employees

If you are terminated, you must repay any outstanding amounts upon termination.

Termination payments, including severance, can be applied against outstanding overpayment amounts. If an overpayment amount remains after payments owing have been applied, the compensation advisor will contact you for repayment.

Note: Terminated employees are given the opportunity to repay any outstanding overpayments before their severance payment is issued. This is facilitated through an options letter provided in advance of the severance payment. One of the available options allows employees to transfer their severance funds to a Registered Retirement Savings Plan (RRSP).

If an overpayment is owed, the employee may choose to repay the amount directly. Doing so enables them to maximize the amount transferred to their RRSP, as the overpayment would not be deducted from the severance payment beforehand.

For other termination-related payments that are not eligible for transfer to a registered account—such as vacation payouts or unpaid overtime—the overpayment amount will be recovered directly from these funds. In these cases, employees are not given the option to repay the overpayment separately.

Retirees

If you have retired and are in receipt of a pension, you will receive an overpayment notice with options to repay. The default recovery plan is 10% of your gross monthly pension amount. If you are experiencing financial hardship, please contact the Public Service Pension Centre and they will help you determine a more accommodating recovery plan.

Students

If you are a student and have received an overpayment, you will receive an overpayment notice, which includes the repayments options and steps to follow. If you are experiencing financial hardship, please let your department know so appropriate options can be considered.

Note: Overpayment recovery will begin at 10% of your bi-weekly gross paycheque. There is no payment deferral option for active students.

How to request a financial hardship exception

If you are in a financial hardship situation, you may request a recovery amount that is lower than 10% of your bi-weekly gross pay upon acknowledgement of your overpayment.

To initiate the financial hardship exception process, select option 1 or 2 and indicate the amount you can financially afford as a recovery under option C of Annex B of the overpayment notice.

How to repay the full amount of your overpayment

Repayment methods vary depending on whether your department or agency is served by the Public Service Pay Centre. To repay the full amount of your overpayment, you should first contact your departmental compensation unit, or the Public Service Pay Centre for guidance, and follow their instructions on how to make a payment(s).

If your department or agency is served by the Public Service Pay Centre, you may be requested to send your payment along with a completed pay action request (PAR) form:

Note: Please refrain from inputting an existing case number on the PAR form, as a new case is required in order to ensure your payment is processed in a timely manner.

• Under section 2 (work type), select “Cheque”
• Under section 3 (sub type), select “Cash Payments”

Mail your completed PAR form and cheque to:

Public Service Pay Centre Mail Facility
PO Box 6500
Matane QC G4W 0H6

How to dispute an overpayment

If you disagree with the validity or amount of an overpayment in Annex A of the overpayment notice, please select Option 3 in Annex B and provide supporting documentation.

Note that Option 3 does not allow you to defer repayment, and recovery may be initiated by default in accordance with section A.3.15 of the Appendix to the Directive on Terms and Conditions of Employment, if applicable.

If your supporting documentation results in an adjustment to Annex A, you will receive an updated overpayment acknowledgement letter, along with an updated Annex A and a new Annex B for your completion.