Military Pay Administration Instructions (MPAI) 8-1 Policy Review

Topic

Military Pay Administration Instructions (MPAI) 8-1 Policy Review

Case numbers

• 2022-313 (F&R date: 2025-01-28)

Description

Subsection 23(2.1) of the Financial Administration Act provides that the Governor in Council may, on the recommendation of the Treasury Board, remit a debt where the collection of the debt is unreasonable, unjust, or in the public interest to remit. This is also reflected in the Treasury Board Secretariat’s own Guide to Debt Deletion.

Overpayment recovery should not be automatic, as this unjustly removes consideration of remission of the debt as a possible recourse available in law should certain circumstance be met. Instead, identified overpayments should involve an assessment of the specific circumstances of each case to determine whether recovery or remission is reasonable.

A full and proper assessment would require the Canadian Armed Forces (CAF) to consider whether a particular recovery is unreasonable, unjust, or in the public interest to remit. 

Recommendation

The Committee recommended that the CAF amend MPAI 8-1 to require a proactive review by the Director General Compensation and Benefits (DGCB) for accounts with significant overpayments before initiating recovery and suspend any recovery action for the duration of the review. 

The Committee further recommended that, if recovery is deemed appropriate, DGCB reduce the impact on the member by proactively implementing extended recovery plans for accounts with significant overpayments.

Finally, the Committee recommended that the Chief of Defence Staff hold accountable those within the institution who are responsible for overpayments.