Superannuation administration manual: Special bulletin 2021-003

Subject: Receiver General recovery of debts to the Crown

December 1, 2021

When referring a debt to the Receiver General collection team for recovery, the request must be accompanied by a duly completed Termination/Retirement Information (PWGSC-TPSGC 4242) form as well as a copy of the letter advising the employee of their debt amount. The following sections of the PWGSC-TPSGC 4242 should be completed, if applicable:

  • Page 1
    • Plan Member’s Personal Information (in all cases)
  • Page 2
    • Section D—Debt to the Crown to be Recovered
  • Page 3
    • Section E—Interdepartmental Settlement information (Phoenix organizations)Footnote *
    • Section F—Settlement Information (non-Phoenix organizations)Footnote *
    • Section G—Transition Payment
  • Page 4
    • Section H—Balance of Pension and Supplementary Death Benefit (SDB) Deficiencies to be recovered
    • Section I—Pension and SDB Arrears to be recovered
    • Section J—Certification

As per the article 155(3) of the Financial Administration Act (FAA) the following debts can be recovered from a pension payment and declared on the PWGSC-TPSGC 4242.

  • Transition payment
  • Pension contributions deficiencies & arrears
  • Supplementary Death benefit contributions deficiencies & arrears
  • Overpaid salary/allowances/wages debt to the crown

The collection of debts other than the types mentioned above, must be approved by the Treasury Board Secretariat (TBS) before a set-off from a public service pension payment can occur. Client departments, Crown corporations, agencies or territorial governments must make their request directly to TBS.

Debt Recovery requests should be sent by email to: gu-sherg@pwgsc-tpsgc.gc.ca.

The request will be rejected if:

  • the request is not accompanied by a copy of the original letter that was sent to the employee detailing their debt amount and recovery options
  • the PWGSC-TPSGC 4242 has an amount that differs from the amount on the letter, and/or
  • the interdepartmental settlement information or settlement information is not provided on the PWGSC-TPSGC 4242

The Receiver General will notify the sender by email if the request for recovery is valid and can be initiated.

Debt Recovery—Roles and Responsibilities

Debts to Crown and Transition Payments:

  • The Receiver General will initiate the recovery from the pension benefit at a rate of 10% per month if no recovery rate is specified on the PWGSC-TPSGC 4242
  • The Receiver General will notify the Compensation Advisor if recovery can be started and confirm that the recovery schedule has been put in place. Monthly deductions will be sent via interdepartmental settlement (IS) information provided on the PWGSC-TPSGC 4242 to the applicable Department or Agency’s Financial officer
  • Client departments, Crown corporations, agencies or territorial governments supported by their Compensation Advisor (CA) will update relevant pay systems with any recoveries (lump sum or monthly deductions) as reported to the applicable Department or Agency’s Financial officer

Pension or Supplemental Death Benefit deficiencies or arrears:

  • The Receiver General will initiate the recovery from the pension benefit by their prescribed monthly rate. Monthly deductions will be sent directly to the appropriate pension fund. No interdepartmental settlement information is required on the PWGSC-TPSGC 4242. The Receiver General will notify the Compensation Advisor if full recovery can be completed
  • Client departments, Crown corporations, agencies or territorial governments supported by their CA will then update relevant pay systems with full recovery once confirmed by Receiver General and Pension Branch (RGPB)

Additional Information

In order to minimize the risk of over collection of debts, any debt confirmed on the PWGSC-TPSGC 4242 and started on a monthly deduction by Receiver General for collection will remain with the Receiver General until full recovery of the debt has been completed or upon death of the member. Coordination will be required between departmental finance and the client departments, Crown corporations, agencies or territorial governments to update relevant pay system of record with monthly recoveries until advised by the Receiver General that the debt cannot be recovered.

If the pensioner becomes re-employed AND a contributor to the Pension Fund, the debt will be referred back to its initial source (Pay Centre/non-Pay Centre serviced department) for collection from payroll.

Should the client departments, Crown corporations, agencies or territorial governments subsequently recover the amount of the debt reported on the PWGSC-TPSGC 4242, or a part thereof, the Receiver General must be notified immediately via email to avoid duplication of the debt recovery.

If the Receiver General confirms that the debt cannot be recovered (either in full or in part) from a pension benefit, the client department, Crown corporation, agency or territorial government will be required to recover the debt through other means.

For any inquiries related to the Receiver General debt collection process, the client departments, Crown corporations, agencies or territorial governments can use the dedicated toll-free number: 1-855-383-0879.

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