[Canada] Gov’t demands years-old Phoenix overpayments back from public servants

In Canada, federal public servants are being threatened with legal action if they fail to repay wages overpaid during the disastrous implementation of the Phoenix pay system nearly a decade ago, CBC reports.  

According to the Public Service Alliance of Canada (PSAC), the government has authorised private debt collection companies to pursue repayment from recipients, including those who left government employment years ago and were never informed about the overpayments.

PSAC said that, in some instances, tax refunds, tax credits and federal benefits are being withheld, and interest is being added to balances. The federal public sector union is reportedly calling on the government to stop pursuing overpayments which fall outside a six-year limitation period. 

"PSAC members and former members have already endured years of hardship due to the government’s payroll failures through missed paycheques, financial stress, and uncertainty," Sharon DeSousa - PSAC’s national president - wrote to Finance Minister François-Philippe Champagne. 

"They should not be subjected to further harm through unlawful recovery actions that contradict federal legislation and established limitation periods," Ms DeSousa said in her letter on November 25. 

Speaking to Radio-Canada on November 27, President of the Treasury Board Shafqat Ali reportedly said he had only just been made aware of the issue.

"It came to my attention yesterday. We'll be looking into it, and we'll be working together with union leaders and team members to address this."

Source: CBC

(Quotes via original reporting)

In Canada, federal public servants are being threatened with legal action if they fail to repay wages overpaid during the disastrous implementation of the Phoenix pay system nearly a decade ago, CBC reports.  

According to the Public Service Alliance of Canada (PSAC), the government has authorised private debt collection companies to pursue repayment from recipients, including those who left government employment years ago and were never informed about the overpayments.

PSAC said that, in some instances, tax refunds, tax credits and federal benefits are being withheld, and interest is being added to balances. The federal public sector union is reportedly calling on the government to stop pursuing overpayments which fall outside a six-year limitation period. 

"PSAC members and former members have already endured years of hardship due to the government’s payroll failures through missed paycheques, financial stress, and uncertainty," Sharon DeSousa - PSAC’s national president - wrote to Finance Minister François-Philippe Champagne. 

"They should not be subjected to further harm through unlawful recovery actions that contradict federal legislation and established limitation periods," Ms DeSousa said in her letter on November 25. 

Speaking to Radio-Canada on November 27, President of the Treasury Board Shafqat Ali reportedly said he had only just been made aware of the issue.

"It came to my attention yesterday. We'll be looking into it, and we'll be working together with union leaders and team members to address this."

Source: CBC

(Quotes via original reporting)