Civilian Employees: Changes to Overpayment Legislation

July 14, 2020 – Defence Stories

Changes to the Canada Pension Plan and Québec Pension Plan that impact previous year salary overpayments due to clerical, administrative, or system errors, have been applied in the Phoenix pay system. Effective June 25, 2020, the pay system will adjust the CPP and QPP contributions. This is in addition to the applicable Federal Income Tax, Provincial/Territorial Income Tax, Employment Insurance (EI), and Québec Parental Insurance Plan (QPIP) changes implemented in March 2019. Employees will no longer be required to repay the taxes and deductions taken on an overpayment.

To better understand these changes, please view the virtual aid. If you have any questions, please contact PSPC’s Client Contact Centre at 1-855-686-4729.