Question Period Note: SENIORS’ BENEFITS OVERPAYMENT LETTERS

Old Age Security (OAS), Canada Pension Plan (CPP) and Canada Pension Plan – Disability (CPP-D) overpayments under $2 collection. Between 2024 and 2026, 3,491 letters across OAS, CPP and CPP-D were issued following updates received from the Canada Revenue Agency (CRA), which triggered recalculations of benefit entitlements.

These letters informed clients of adjustments to their benefits and, where applicable, outlined repayment options when a recalculation resulted in an overpayment.

Under the Financial Administration Act (FAA) and Low-Value Amounts Regulations, Employment and Social Development Canada (ESDC) has the authority to write off very small overpayments, with a threshold of $0.99 for CPP and OAS programs.

Client notification is a required part of program administration, ensuring individuals are informed of changes to their entitlements and are aware of their right to request reconsideration.

This information reflects routine program operations, as confirmed through publicly released data under Access to Information.

ESDC recognizes that communications regarding very small overpayments can be concerning, particularly for vulnerable clients, and is improving how this information is conveyed.

ESDC is updating its procedures for small overpayments to strengthen compliance with client notification obligations, promote administrative efficiency through consolidated communications, and ensure accurate benefit payments in line with legislation.

The Department is modernizing its approach by replacing cheque or money order repayments with automatic, low-impact recovery through future benefit payments.

This approach supports a more efficient and responsive approach for clients, reduces administrative burden and maintains fairness, legislative compliance, and sound stewardship of public funds.

IF PRESSED (Personal financial cost to canadians)

By modernizing our approach—eliminating repayment by cheque or money order and shifting to automatic recovery through future benefits—we are avoiding out-of-pocket expenses such as postage or banking fees, while ensuring Canadians are not incurring unnecessary costs and that public funds are managed responsibly.

Service Canada (SC), on behalf of Employment and Social Development Canada (ESDC), is responsible for the delivery and administration of major income support programs, including Old Age Security (OAS), the Canada Pension Plan (CPP), and Canada Pension Plan Disability (CPP-D). This includes calculating benefits, issuing payments, and adjusting entitlements when updated client information is received.

As part of this role, SC regularly receives updated income information from the Canada Revenue Agency (CRA). When new information is received, benefit entitlements are reassessed to ensure accuracy. Where a recalculation identifies an overpayment, clients are notified of their revised benefit amount, any balance owing, and the options available to address it. These communications also inform clients of their right to request reconsideration and to seek support if repayment would result in financial hardship.

Under the Financial Administration Act (FAA), the Low-Value Amounts Regulations establish thresholds below which overpayments may be written off. For CPP and OAS, this threshold is set at $0.99. While this authority allows the Department to manage very small amounts efficiently, it must also meet legislated requirements to notify clients of changes to their entitlements and maintain accurate financial records.

The Department is modernizing its approach to managing small overpayments to improve client experience and administrative efficiency. This includes eliminating the requirement for clients to repay minor amounts by cheque or money order and instead implementing automatic recovery through future benefit payments, along with clearer and more streamlined communications.

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