Phoenix Pay System

Update on Phoenix damages implementation

Tuesday, July 6, 2021

Current PSAC members working for the federal public service received general damages as part of their March 3 pay. However, several issues remain outstanding: 

  • former PSAC members — including retirees — are still waiting for their general damages payments 

  • current and former members who experienced out-of-pocket expenses or severe losses due to Phoenix are still waiting for the launch of a new claims process 

Phoenix: Damages ruled taxable as Treasury Board refuses to cooperate

Monday, May 3, 2021

After months of waiting, the Canada Revenue Agency (CRA) has rejected our request to review the taxability of Phoenix damages. This is directly due to Treasury Board’s refusal to provide CRA with a joint statement of facts which corrects CRA’s understanding of the purpose of our damages settlement agreement.

In an April 27 letter from the CRA, the Agency states:

Government rushing Phoenix damages payment without tax ruling

Thursday, February 18, 2021

The Liberal government has shamelessly chosen the 5th anniversary of the Phoenix pay system disaster to short-change thousands of PSAC members on their compensation for years of pay problems.  

Even though PSAC is in the process of working with CRA to review the taxability of Phoenix damages, the federal government has confirmed that it intends to ignore these efforts and issue the up to $2,500 for our members, on March 3 – with taxes deducted. Treasury board provided no explanation for their actions. 

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