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ACFO-ACAF received a bulletin from Treasury Board last week detailing how the Employer intends to modify its current procedure for Phoenix overpayment recoveries.
This will apply to employees who received overpayments in 2016 and 2017 due to Phoenix errors and who do not yet have a repayment plan in place. Employees will receive a letter from the Employer and be required to acknowledge a debt owed to the Crown. The date which these letters will begin to be issued is yet to be determined.
If these employees acknowledge their overpayment in writing, they will receive special consideration for repayment, including the option to defer the recovery or start a repayment plan. If they do not acknowledge the overpayment within four weeks, the recovery of the payment will be recalled by default in accordance with the number of pay periods over which the overpayment occurred.
ACFO-ACAF has concerns about this recovery process and has shared these concerns with the Employer, such as the difficulty of confirming the calculations for the overpayment amount if employees’ pay files are not yet fully reconciled.
We therefore advise you to take the following actions based on your current situation:
For any questions about Phoenix overpayments, please contact email@example.com.