The Professional Institute of the Public Service of Canada
The Professional Institute of the Public Service of Canada
Log in

Salary overpayments caused by Phoenix: the government finally takes a step in the right direction

Fellow members,

The federal government has just announced that it is proposing new measures to help correct the wide-ranging issue of employees having to repay the gross instead of the net amount of a salary overpayment caused by system, administrative or clerical errors. This is particularly significant for PIPSC members: tens of thousands of you have experienced this problem first-hand thanks to the calamitous Phoenix system.

This is a significant move on the government’s part, and a direct result of the persistent pressure applied by bargaining agents, including PIPSC, over the past two years. It proves that the government is willing to listen to us, and that by working together, we can realize victories for our members and for all Canadians.

Current legislation requires employees who have been overpaid in the previous year to reimburse their employer the gross amount of the overpayment.  They must then seek reimbursement from the Canada Revenue Agency (CRA) for the excess income tax, Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums that were deducted when the overpayment was made.  This is patently unfair and places an undue financial burden on affected employees.

Following a period of public consultation (in which the Institute will participate) in the weeks ahead, the government plans to introduce draft legislation that would correct this situation by allowing employees to repay only the net amount of the overpayment.  The CRA would be tasked with directly refunding the employer the tax, CPP and EI that had been withheld – thereby relieving employees of this problem. Quebec has announced that it will align itself with these legislative changes.

We will keep you updated on the progress of these important legislative changes in the weeks ahead.

Members who require assistance with pay issues should contact our specialists at https://www.pipsc.ca/news-issues/phoenix-pay-system/phoenix-help-form.

Better Together!

Debi Daviau,
President

Published on 16 January 2019

22 January 2018
Separating

Statement on Unifor’s withdrawal from the Canadian Labour Congress

The news that Canada’s largest private-sector union, Unifor, has decided to withdraw its membership from the Canadian Labour Congress (CLC) has taken many by surprise.
12 January 2018
Phoenix

Phoenix: Problems with Reporting Overpayments?

It has come to our attention that many of you who are trying to report overpayments by the January 19, 2018 deadline cannot get through to Contact Centre staff because of busy signals or being put on hold for extended periods.
20 December 2017
Announcement

President’s New Year Message 2018

Predictions are rarely 100% accurate. But some offer better-educated guesses than others. Here then are my forecasts (and a few resolutions) for the coming year.
24 November 2017
Phoenix

Don’t Blame Bargaining for Phoenix Failures

Earlier this month, PSPC Minister Carla Qualtrough asked me if I would be willing to negotiate simplifying some of the pay rules bargained over decades that, some claim, contribute to the dysfunction of the federal pay system.
8 November 2017
Announcement

PIPSC supports changes to Canadian bankruptcy and insolvency laws

Canadians should not have to worry about their retirement. But actions taken by the federal government raise questions about its commitment to enhancing retirement security for Canadians – a key promise in the last federal election.
7 November 2017
Message

PIPSC Salutes its Medical Radiation Therapists on MRT Week

Medical Radiation Therapist (MRT) Week, which recognizes the essential role these professionals play in Canada’s healthcare system, runs from November 5 to 11, 2017.