Phoenix damages : new timelines and taxation appeal

The federal government has updated its Phoenix general damages webpage with new timelines for current PSAC members and former and retired members: 

  • PSAC members working for the federal public service who did not receive general damages as part of their March 3 pay can expect to receive the full lump-sum payment in September 2021.

  • Former and retired PSAC members will have access to the claims process for general damages in December 2021. The government will provide more details closer to the launch.

Taxability of Phoenix general damages 

PSAC maintains that general damages paid to all employees for “stress, aggravation, and pain and suffering” for the impacts of the Phoenix pay system and the late implementation of collective agreements are non-taxable, contrary to the opinion issued by the Canada Revenue Agency. To ensure a prompt resolution of this dispute impacting thousands of members, PSAC has proposed to CRA that both parties jointly request that the dispute be resolved by the Tax Court. This would expedite the process and avoid a vast number of individual appeals. We will provide updates as they become available.

Out-of-pocket expenses and severe losses 

As part of the Phoenix damages settlement, the government must provide a new claims process for current and former members who experienced out-of-pocket expenses and severe personal and financial impacts due to Phoenix. Though we are disappointed that a process is not yet available, we expect a new timeline shortly and will update you accordingly.

Please be sure to keep your contact information up to date via the member portal to receive all the latest updates on PSAC’s Phoenix settlement. 

For more information about Phoenix damages, please check out our FAQ


August 17, 2021