Federal public servants are facing legal threats to repay overpayments from the problematic Phoenix pay system, with some debts pursued by private collection agencies. The Public Service Alliance of Canada (PSAC) argues that many recipients, including former employees, were unaware of the overpayments and that recovery actions violate the six-year limitation period. The government has recovered $3.07 billion from overpayments but still seeks to collect $495 million from over 115,000 employees. PSAC urges the government to halt recovery efforts that breach federal legislation, while the Treasury Board is investigating the situation.
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