Recovery of Overpayments Made to or in Respect of Former Members of Parliament Regulations

3 (1) A notice respecting the recovery of an amount that has been paid in error on account of an allowance or other benefit under the Act or a notice respecting the recovery of the amount of the reduction referred to in subsection 59.1(6) of the Act shall be dated and signed by the Minister and sent by mail to the person.

(2) A person who receives a notice under subsection (1) shall elect, within 45 days after the date of the notice,

• (a) to pay the specified amount in one lump sum; or

• (b) to arrange to pay the specified amount by monthly deductions from the person’s allowance or other benefit, calculated in accordance with the Canadian Life Table No. 2 (1941) Males or Females, as at the date of the person’s election, for the lesser of

  • (i) the life of the person, and

  • (ii) the period required to pay the amount by monthly deductions equal to 10% of the aggregate of the gross monthly amounts payable to the person under the Act as at the date the notice is given under subsection (1).

(3) If a person referred to in subsection (2) does not make an election within the time limit specified by that subsection, the person is deemed to have elected the method of payment specified in paragraph (2)(b).

(4) Deductions referred to in paragraph (2)(b) shall be made as follows:

• (a) the deductions shall be made in equal amounts, the first in the month following the date on which the 30-day period prescribed in subsection (2) ends, the succeeding deductions every month thereafter; and

• (b) a final deduction which completes the payment of the specified amount which may be less than the preceding deductions.

(5) Any person who has elected or who is deemed to have elected to pay monthly deductions may at any time

• (a) pay the remaining outstanding amount in one lump sum; or

• (b) arrange

  • (i) for the monthly deductions determined under paragraph (2)(b) to be increased, or

  • (ii) to pay a lump sum and pay the remaining outstanding amount by monthly deductions determined under paragraph (2)(b) and payable within the same or a lesser period than that originally used.

(6) The amount of the reduction that may be recovered under subsection 59.1(6) of the Act shall be recovered in the following order:

• (a) from allowances or other benefits payable under Part I of the Act;

• (b) from supplementary benefits payable under Part IV of the Act;

• (c) from allowances or other benefits payable under Part II of the Act; and

• (d) from allowances payable under Part III of the Act.

(7) Where the amount of the monthly deductions made pursuant to paragraph (2)(b) causes financial hardship to the person, the Minister may reduce that amount but it may not be less than 5 per cent of the aggregate of the gross monthly amounts payable to that person under the Act as at the date the notice was given.