Finance
April 1, 2015

Ensuring Fiscal Accountability

Department of Finance Advises of Pension Overpayments and Actions Being Taken to Minimize Impacts

An internal audit of Government of Newfoundland and Labrador public pension payments identified errors and resulting overpayments to 427 individuals. The Human Resource Secretariat is now contacting the impacted individuals and efforts will be made to recover the $934,979 paid out in error.

"We fully recognize the financial impact this will have on some individuals and we extend our sincere apology for this. Every effort will be made to work with those involved and minimize their financial impact. We encourage individuals who are contacted by staff to begin the discussion around arrangements to ease the financial burden that this adjustment may cause."
- The Honourable Ross Wiseman, Minister of Finance and President of Treasury Board

The overpayments occurred as a result of two instances: the indexing of pensions, and during the required integration of provincial pensions with the Canada Pension Plan when individuals turn 65. Individuals are now being contacted by phone. This will be immediately followed by a letter with details of how they will be impacted and contact information for those who wish to discuss their individual circumstances.

"To ensure financial accountability, it is important the Provincial Government make efforts to recover these overpayments. The pooled pension fund comprises monies contributed by both the Provincial Government as the employer and pension plan members. The overpayment has effectively distributed these funds inappropriately with the impact being on the members of the pension plan. The money owed is not to government but to the pension plans affected, and in turn, to the members of those pension plans."
- Minister Wiseman

A review of business processes and information systems has taken place and further audit reports and checklists have been developed to avoid the possibility of these errors occurring in the future. Implementation of the PeopleSoft payroll program also has improved controls over the prior payroll program.

QUICK FACTS

• An internal audit of the Government of Newfoundland and Labrador public pension payments identified errors and resulting overpayments to 427 individuals.
• The overpayments occurred in two instances: through the indexing of pensions, and during the required integration of provincial pensions with the Canada Pension Plan when individuals turn 65.
• Persons impacted are now being contacted by phone. This will be immediately followed by a letter with details of how they will be affected and contact information for those who wish to discuss their individual circumstances.
• In cases where repayment is required and financial hardship is determined, to the greatest extent possible, staff will work with individuals to address it.
• A review of business processes and information systems has taken place and further audit reports and checklists have been developed to avoid the possibility of these errors occurring in the future. Implementation of the PeopleSoft payroll program also has improved controls over the prior payroll program.

- 30 -

Media contact:

Jennifer Tulk Director of Communications Department of Finance 709-729-6830, 728-4104 jennifertulk@gov.nl.ca

2015 04 01                              12:15 p.m.