CARRA - Recovery of overpayments – Failure to comply with the rule

The Québec Ombudsman observed that the CARRA sometimes recovered amounts owing to it by benefit recipients, out of their benefits, in excess of the 10% compensation rate permitted in such cases.

The provisions governing situations such as these appear in the Regulation respecting the application of the Act respecting the Government and Public Employees Retirement Plan.

The Québec Ombudsman carried out an investigation on its own initiative into:

• compensation for amounts owing, withheld by the Commission out of amounts paid by it.

The Québec Ombudsman’s investigation revealed that:

• section 34 of the Regulation provides that the maximum deduction the Commission may make as compensation corresponds to 10% of the amount of the benefit to which the recipient is entitled;
• compensation in excess of the 10% was deducted when overvalued advance payments were confirmed and the new computer system was not configured to automatically apply the 10% compensation limit to advance payments.

Following the Québec Ombudsman’s intervention, the CARRA undertook:

• to adopt a provisional solution ensuring that the 10% rule would be rigorously applied: it agreed to carry out screening on a monthly basis to identify potential compensation cases and, where applicable, provide benefit recipients with legal repayment choices.

The CARRA subsequently fulfilled its undertakings in this respect.