DPF Briefing

March 2001

Salary Overpayments

There have been several cases recently involving overpayments in salary and allowances (the problem with Chief Inspector’s pay being a case in point). This has led to the Department seeking recovery and as a consequence the DPF obtaining legal advice on behalf of members so affected.

It is difficult to give general guidance as regards the legal position in any individual case.

However, it is anticipated that the majority of cases may be resolved by reference to Departmental guidance.

Where the overpayment is received in good faith, PPA will notify the individual of the full amount overpaid but will seek recovery only of the sum that was received during the last 12 months of the period of overpayment. Earlier amounts overpaid will be written off although individual members may wish to reimburse such overpayments .

Where the overpayment is a lump sum or where there is a delay of more than one year between the overpayment ceasing and being subsequently discovered, further deductions are made to the reimbursement sought by the Department.

In addition, the reduced amount to be sought under these rules may be reduced further, in whole or in part, where members can successfully establish a plea of hardship. Reasonable evidence is required in such cases in the form of a financial statement and documentary evidence to support the plea of hardship. It must be established that the repayment sought by the Department would be detrimental to the welfare of the individual or their family.

In many cases it may be difficult to establish an acceptable plea of hardship.

Our advice to members when faced with requests for recovery is to obtain and refer to the Departmental guidance outlined above and write to PPA stating (where applicable) that:

• The money had been received in good faith and did not arise from any mistake on the member's part.
• Any settlement offers put forward should be expressed to be without prejudice to member's legal rights.
• In appropriate cases where significant amounts are involved or the Department are not complying with the guidance referred to, seek immediate advice from the Federation.
• Note different rules apply when the overpayment is not received in good faith.