Mr. Speaker, in response to (a), as of December 5, 2019, it is estimated that 98,249 individuals potentially owe the government money as a result of an overpayment.
As the Phoenix pay system cannot segregate true overpayments from administrative overpayments, it is not possible to accurately provide specific figures for true overpayment, which represent money owed to the government.
True overpayments are created in situations where employees receive pay to which they were not entitled. For example, this occurs when employees’ termination or leave without pay, e.g. parental leave, is entered after the pay period of their departure date, resulting in extra paycheques.
Administrative overpayments are a result of the system’s design. They have no impact on employees, given that refunds are automatically generated and netted out in the next pay period. Administrative overpayments are created to ensure employees receive the pay to which they are entitled.
For example, an acting situation is when an employee is temporarily moved from a regular position into a position at a higher classification, and therefore a higher salary rate. When the acting is entered late in Phoenix, the system pays the higher salary rate from the start of the acting period and reverses the payments that were made at the regular salary rate. The system records the inflow and outflow as an administrative overpayment. A new payment is then automatically generated, at the correct acting salary rate.
In recognition of extraordinary challenges due to the backlog, recovery of most overpayment balances will not begin until all of the employee’s outstanding pay transactions have been processed, the employee has received three consecutive accurate pays, and the employee has indicated the preferred repayment option.
In response to (b), unpaid amounts owed to employees can be related to several factors. For example, they can result from regular pay transactions such as overtime and acting pay that are not yet processed or due to errors. It is not possible to report on these figures accurately until all pay-related transactions in the backlog are processed by compensation advisers. While accurate figures are impossible to obtain regarding total underpayments, estimates can be made by departments based on methods such as amounts self-reported by employees, or amounts paid to employees through priority payments due to missing pay.
Employees who have been underpaid can request emergency salary advances or priority payments from their departments.
In response to (c), the median value of total overpayment balances is $1,383.
The government is not in a position to provide the answer regarding underpayments as the system cannot automatically calculate such transactions.
In response to (d), to protect the privacy of the affected government employee, the highest overpayment value will not be reported.
It is important to note that when PSPC reports a balance of overpayments, the figure includes true overpayments as well as administrative overpayments. True overpayments represent employees receiving pay that they are not entitled to, whereas administrative overpayments are part of the system’s design and have no impact on employees. As the Phoenix pay system cannot segregate true overpayments from administrative overpayments, it is not possible to accurately provide specific figures for true overpayment, which represent money owed to the government.
The government is not in a position to provide the answer regarding underpayments as the system cannot automatically calculate such transactions.