OTTAWA — A federal public servant says she’s “scared” to take up the federal government’s early retirement provide after being advised that she owes the federal government about $10,500 due to a mistake in her pay file.
Jennifer MacDougall bought the letter from the pay centre in February however mentioned the scenario itself stems again to between 2014 and 2018.
MacDougall was working in a task that was reclassified, that means she wasn’t getting paid as a lot as she ought to have been. In 2019, she finally obtained retroactive pay however is now being advised that data was incorrectly inputted into the Phoenix system and that she owes the federal government cash.
“The entire thing is simply so loopy,” mentioned MacDougall, who’s combating the choice. She mentioned her case remains to be in processing however that underneath the Crown Legal responsibility and Proceedings Act, the federal authorities has a six-year window to get well a debt.
“It’s giving me nervousness, it’s giving my husband nervousness and it’s affecting my means to confidently retire.”
The latest federal finances outlined an early retirement incentive as a part of the federal government’s ongoing effort to chop the variety of public servants. This system, which isn’t but out there, is designed to permit federal staff to retire early with out a penalty to their pension.
Alex Benay, the affiliate deputy minister of Public Companies and Procurement Canada, mentioned at a press convention earlier this month that public servants seeking to take up the federal government’s early retirement program are proper to be frightened about potential points with Phoenix.
“I’d say they’re proper to be involved,” Benay mentioned. “I imply, the monitor report being what it’s.”
Nevertheless, Benay additionally mentioned the federal government has a plan to cope with an inflow in circumstances involving severance pay.
“We have now a specialised service that we’ve created inside the pay centre to deal particularly with these circumstances,” Benay mentioned, including that the service has not but been deployed. “The service is prepared, persons are skilled.”
Benay mentioned he has been laid off up to now and that “the very last thing you need is to have to fret about your pay scenario.”
Benay mentioned the division can be taking a look at how automation can be utilized.
“I really feel fairly comfy we’ll be capable of handle the amount at this level,” he mentioned.
The Phoenix system has been mired in issues because it was rolled out in 2016, costing taxpayers about $5 billion, whereas paying some federal public servants incorrectly — some being overpaid and others not paid in any respect.
Ottawa introduced final yr it had awarded a 10-year, $350.6 million contract to the system’s substitute Dayforce and implementation is ready to start in 2027.
The federal authorities mentioned final yr it might develop its use of synthetic intelligence to clear a backlog of Phoenix pay system transactions because it transitions to a brand new platform.
Regardless of its efforts, the Authorities of Canada web site says the backlog of transactions stood at 216,000 as of Feb. 25 and that 45 per cent of these circumstances are greater than a yr previous.
MacDougall mentioned she’s involved that if she chooses to retire, the federal government will come attempting to find extra money later down the highway.
“For the following six years after my final pay, I’ll at all times be frightened that they’re going to come back in search of one thing,” she mentioned. “I really feel like I can now by no means belief any data I get from them.”
This report by The Canadian Press was first revealed March 22, 2026
Catherine Morrison, The Canadian Press