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

Regulations are current to 2019-08-28

Recovery of Overpayments Made to Former Members of Parliament Regulations

SOR/97-568

MEMBERS OF PARLIAMENT RETIRING ALLOWANCES ACT

Registration 1997-12-09

Recovery of Overpayments Made to 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.

Defined Benefit Limit

 For the purpose of paragraph (b) of the definition defined benefit limit in subsection 2(1) of the Act, the amount of the defined benefit limit in respect of the 1995 calendar year is $1,722.22, and in respect of any subsequent calendar year is determined in accordance with the definition of defined benefit limit in subsection 8500(1) of the Income Tax Regulations.

Recovery of Allowances

  •  (1) A notice respecting the recovery of an amount that has been paid in error on account of an allowance or other benefit under the Act or a notice respecting the recovery of the amount of the reduction referred to in subsection 59.1(6) of the Act shall be dated and signed by the Minister and sent by mail to the person.

  • (2) A person who receives a notice under subsection (1) shall elect, within 45 days after the date of the notice,

    • (a) to pay the specified amount in one lump sum; or

    • (b) to arrange to pay the specified amount by monthly deductions from the person’s allowance or other benefit, calculated in accordance with the Canadian Life Table No. 2 (1941) Males or Females, as at the date of the person’s election, for the lesser of

      • (i) the life of the person, and

      • (ii) the period required to pay the amount 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 given under subsection (1).

  • (3) If a person referred to in subsection (2) does not make an election within the time limit specified by that subsection, the person is deemed to have elected the method of payment specified in paragraph (2)(b).

  • (4) Deductions referred to in paragraph (2)(b) shall be made as follows:

    • (a) the deductions shall be made in equal amounts, the first in the month following the date on which the 30-day period prescribed in subsection (2) ends, the succeeding deductions every month thereafter; and

    • (b) a final deduction which completes the payment of the specified amount which may be less 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) of the Act shall 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

Reconciliation of Amounts

  •  (1) The Minister shall 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.

Coming into Force

 These Regulations come into force on December 9, 1997.

Date modified: