Canada Pension Plan

Marginal note:Refund of overpayment where application made within four years

• 38 (1) Where an overpayment has been made by an employee on account of the employee’s contribution under this Act for a year, the Minister shall, if application in writing is made to the Minister by the employee not later than four years after the end of the year, refund to the employee the amount of the overpayment.

• Marginal note:Refund after decision on appeal

  (2) Where an amount on account of a contribution is deducted from the remuneration of an employee or is paid by an employer with respect to an employee, and it is decided by a decision on an appeal made under section 27, 27.1 or 28 that the amount exceeds the amount required by this Act to be deducted or paid, the Minister shall refund the excess if the employee or employer applies for it in writing to the Minister not later than 30 days after the decision is communicated to the employee or employer, as the case may be.

• Marginal note:Refund where Minister satisfied amount deducted in excess of required amount

  (3) Notwithstanding anything in this Part, where an employee or employer makes application to the Minister and satisfies the Minister that, for any year, the amount deducted from the remuneration of the employee, or paid by the employer with respect to an employee, as the case may be, is in excess of the amount required to be deducted or paid for the year under this Act, if the application is made within four years after the end of the year, the Minister may refund the amount by which the amount so deducted or paid exceeds the amount so required to be deducted or paid.

• Marginal note:Refund of excess contribution in respect of self-employed earnings

  (4) Where a person has paid, on account of the contribution required to be made by him for a year in respect of his self-employed earnings, an amount in excess of the contribution, the Minister

  • (a) may refund that part of the amount so paid in excess of the contribution on mailing the notice of assessment of the contribution, without any application therefor; and

  • (b) shall make such a refund after mailing the notice of assessment, if application therefor is made in writing by the contributor not later than four years after the end of the year.

• Marginal note:Refund after correction of record of earnings

  (4.1) Where an amount on account of a contribution is paid by a person in respect of self-employed earnings or is deducted from the remuneration of an employee and the Minister determines, taking into consideration an amendment made under section 97 to the Record of Earnings, that the amount paid or deducted is in excess of the amount required by this Act to be paid or deducted, the Minister may refund the excess.

• Marginal note:Recovery of amount refunded or credited on liability

  (5) Where an application under this section has been made to the Minister for a refund of any amount deducted on account of an employee’s contribution for a year and, whether on the basis of incorrect or incomplete information contained in the application or otherwise, the Minister has refunded an amount to the employee, or applied an amount to a liability of the employee to Her Majesty in right of Canada, in excess of the amount that should have been refunded or applied, the amount of the excess may be recovered at any time from the employee as a debt due to Her Majesty.

• Marginal note:Application of refund to other debts

  (6) Instead of making a refund that might otherwise be made under this section, the Minister may, where the person to whom the refund is payable is liable or about to become liable to make any payment to Her Majesty in right of Canada, apply the amount of the refund to that liability and notify the person of that action.

• Marginal note:Interest on overpayments

  (7) If an amount in respect of an overpayment is refunded or applied under this Act to any other liability, interest shall be paid or applied on the amount at a prescribed rate per annum under the circumstances and for the period or periods determined as prescribed, except that

  • (a) no interest shall be paid or applied if the amount of the interest is less than one dollar; and

  • (b) no interest shall be paid or applied on an amount that is refundable under subsection (4.1).