Public Service Superannuation Regulations

6 (1) Where an amount has been paid in error under the Act to any person on account of any annuity or annual allowance, the Minister shall forthwith demand payment from that person of an amount equal to the amount paid in error.

(2) A person from whom payment of an amount has been demanded by the Minister pursuant to subsection (1) shall, within 30 days from the day on which the demand is made

• (a) pay that amount to the Minister in one lump sum, or

• (b) arrange to pay the amount to the Minister in monthly instalments to be deducted from their annuity or annual allowance for the lesser of

  • (i) the life of that person, or

  • (ii) the period required to pay the amount in monthly instalments equal to 10 per cent of the gross monthly amount of any annuity or annual allowance payable to that person under the Act,

as that person may elect, calculated as of the date of their election, in accordance with Canadian Life Table No. 2 (1941), Males or Females, as the case may be.

(3) Where a person referred to in subsection (2) does not elect within 30 days from the day on which the demand for payment is made, they shall be deemed to have chosen the method of payment specified in paragraph (b) of that subsection.

(4) Any person in respect of whom deductions are made under this section may, at any time

• (a) pay the amount then owing in one lump sum; or

• (b) arrange to pay the amount then owing

  • (i) by larger monthly instalments on a basis similar to that described in paragraph (2)(b), or

  • (ii) by a lump sum payment and monthly instalments on a basis similar to that described in paragraph (2)(b) and payable within the same or a lesser period than that originally used.

(5) Where, pursuant to this section, deductions are to be made from the gross monthly amount of an annuity or annual allowance, the first deduction therefrom shall be made in the month following the month in which the 30-day period prescribed in subsection (2) expires, and succeeding deductions shall be made monthly thereafter in equal amounts during the life of the person to whom the annuity or annual allowance is payable or until the amount demanded by the Minister pursuant to subsection (1) has been paid, except with respect to the last instalment which may be less in amount than the preceding instalments.

(6) If the person demonstrates that the monthly deductions referred to in paragraph (2)(b) would cause financial hardship to the person, lesser monthly deductions shall be made, commencing the month after the date of a notice from the Minister, but the deductions shall not be less than 5% of the gross monthly amount of the annuity or annual allowance, or $10, whichever is greater.

(7) Subsection (6), as it read before the day on which section 107 comes into force, continues to apply to persons whose annuity or annual allowance was, before that day, subject to monthly deductions calculated in accordance with that subsection.

(8) The provisions of subsections 5(9) and (10) apply to this section.