Ottawa warns former public servants face collection agencies to recover Phoenix overpayments

Federal government departments have been sending letters to former public servants warning them that outstanding debts from salary overpayments, the result of the problem-plagued Phoenix pay system, could be referred to collection agencies or the Canada Revenue Agency.

Public service unions are raising objections over the move because many of the former government employees were not aware of the issue. For nearly a decade, the Phoenix payroll processing system has caused a backlog of complaints regarding cases of underpayments or overpayments that can take months to resolve.