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Recovery of Overpayments Made to or in Respect of Former Members of Parliament Regulations (SOR/97-568)

Regulations are current to 2020-11-17 and last amended on 2020-08-25. Previous Versions

Recovery of Overpayments Made to or in Respect of Former Members of Parliament Regulations

SOR/97-568

MEMBERS OF PARLIAMENT RETIRING ALLOWANCES ACT

Registration 1997-12-09

Recovery of Overpayments Made to or in Respect of Former Members of Parliament Regulations

P.C. 1997-1838  1997-12-09

His Excellency the Governor General in Council, on the recommendation of the President of the Treasury Board, pursuant to paragraphs 64(1)(f)Footnote a, (h.1)Footnote b, (k)Footnote c and (o)Footnote d of the Members of Parliament Retiring Allowances Act, hereby makes the annexed Recovery of Overpayments Made to Former Members of Parliament Regulations.

Interpretation

 In these Regulations, Act means the Members of Parliament Retiring Allowances Act.

 [Repealed, SOR/2020-180, s. 10]

Recovery of Allowances

  •  (1) A notice respecting recovery must be sent to the concerned person setting out the amounts referred to in subsection 56(3) and section 63.1 of the Act, or the amount of a reduction referred to in subsection 59.1(6) of the Act, and the manner in which the amounts may be recovered under this section.

  • (2) The person who receives a notice must elect, within 45 days after the date of the notice,

    • a) to pay the specified amounts in a lump sum; or

    • b) to arrange to pay the specified amounts by monthly deductions from their allowance or other benefit payable

      • (i) if the deductions are made under paragraph 56(3)(b) or section 63.1 of the Act, over the period required to pay the amounts by monthly deductions equal to 10% of the aggregate of the gross monthly amounts payable to the person under the Act as at the date the notice is sent under subsection (1), or

      • (ii) if the deductions are made under subsection 59.1(6) of the Act — calculated in accordance with the mortality rates used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with subsection 65(1) of the Act, with interest at the rate of 4% compounded annually — during the shorter of

        • (A) the lifetime of the person, and

        • (B) the period required to pay the amounts by monthly deductions equal to 10% of the aggregate of the gross monthly amounts payable to the person under the Act as at the date the notice is sent under subsection (1).

  • (3) If an election is not made within the time limit under subsection (2), recovery must be made by monthly deductions as set out in subparagraphs (2)(b)(i) or (ii), as applicable.

  • (4) The deductions referred to in paragraph (2)(b) must be made in equal amounts — with the first to be made in the month following the day on which the 45-day period under subsection (2) ends and the other deductions every subsequent month — with the exception of the last deduction, which may be less in amount than the preceding deductions.

  • (5) Any person who has elected or who is deemed to have elected to pay monthly deductions may at any time

    • (a) pay the remaining outstanding amount in one lump sum; or

    • (b) arrange

      • (i) for the monthly deductions determined under paragraph (2)(b) to be increased, or

      • (ii) to pay a lump sum and pay the remaining outstanding amount by monthly deductions determined under paragraph (2)(b) and payable within the same or a lesser period than that originally used.

  • (6) The amount of the reduction that may be recovered under subsection 59.1(6) and section 63.1 of the Act must be recovered in the following order:

    • (a) from allowances or other benefits payable under Part I of the Act;

    • (b) from supplementary benefits payable under Part IV of the Act;

    • (c) from allowances or other benefits payable under Part II of the Act; and

    • (d) from allowances payable under Part III of the Act.

  • (7) Where the amount of the monthly deductions made pursuant to paragraph (2)(b) causes financial hardship to the person, the Minister may reduce that amount but it may not be less than 5 per cent of the aggregate of the gross monthly amounts payable to that person under the Act as at the date the notice was given.

  • SOR/2002-305, s. 1
  • SOR/2020-180, s. 11

Reconciliation of Amounts

  •  (1) The Minister must perform a reconciliation of amounts of the reduction made under subsection 59.1(5) of the Act and make appropriate adjustments by way of recovery or refund

    • (a) on receipt of the notifications specified in paragraph 59.1(3)(b) or (c) of the Act; and

    • (b) on each anniversary date referred to in subsection 59.1(5) of the Act.

  • (2) For the purposes of subsection (1), the anniversary date referred to in subsection 59.1(5) of the Act is not changed if a former member commences to hold a federal position or enters into a federal service contract within the 12-month period following that date.

  • SOR/2020-180, s. 12(E)

Coming into Force

 These Regulations come into force on December 9, 1997.

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