The Phoenix pay system has been a disaster for our members. Members have been underpaid, overpaid and not paid at all. Learn more about what the union has been doing to get this fixed.
Not deducting union dues correctly is one more way that Phoenix has failed public sector workers. You can help us push the government to pay public sector workers correctly, every pay day.
PSAC is working with the Minister of National Revenue to establish a process to resolve the taxation of Phoenix damages.
PSAC has argued that the $2,500 in general damages negotiated in 2020 to compensate members for the stress, aggravation and pain and suffering caused by the Phoenix pay system should be tax-exempt.
Sisters, brothers, and friends,
As stated in a communication in March 2022, the Union of Taxation Employees (UTE) encourages its members to file individual notices of objection. We anticipate that a large number of applications may pressure the government to review the tax treatment of compensation for all UTE members rather than adjudicating thousands of individual notice of objections applications.
Important: the following is for members and retirees who received their Phoenix general damages payment in 2022 or following years.
If you received your Phoenix general damages payment in 2021 please return here for detailed instructions on how to proceed in your circumstances.
PSAC President Chris Aylward issued the following statement:
After two years of negotiations, the Liberal government has offered only 1.25 days of leave per year, for 4 years, as general compensation to every member who has fallen under the disastrous Phoenix system. PSAC could not agree to this meagre proposal.
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
Treasury Board has provided PSAC with a letter from CRA setting out its preliminary view that the general damages in the Phoenix settlement agreement are taxable. This letter, which was prepared at Treasury Board’s request and without PSAC’s input, is not a formal tax ruling and PSAC is contesting this conclusion.
In 2020, PSAC negotiated Phoenix general damages for approximately 165,000 PSAC members to compensate for the stress, aggravation and pain and suffering they endured because of the broken pay system.
Treasury Board treated Phoenix general damages as taxable income – deducting tax from the payment PSAC members received – but the Union maintains that these damages should be tax-free like just like other damages agreements.
Retired and former PSAC members: If you are a retired or former PSAC member and received your Phoenix general damages payment in 2022 or a subsequent year (likely because you retired and had to apply for Phoenix damages), and have not already filed a notice of objection, you must file a notice of objection by April 30, 2024 to be eligible for Phoenix general damages compensation to be deemed non-taxable.
