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ARCHIVED - Payments to a Third Party

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The payment of salary and allowances to someone other than the employee is generally prohibited. This section outlines provisions for deceased employees and mentally or physically incapacitated employees.

1 On behalf of a mentally or physically incapacitated employee

Due to the legal issues related to payments on behalf of a mentally or physically incapacitated employee, specific documents such as a Power of Attorney may be required and therefore, the departmental Legal Services should be consulted.

2 On behalf of a deceased employee

The general authority whereby money owing to the estate of a deceased person may be paid to an individual claimant is the Payments to Estates Regulations, 1996.

Payments of salary payable to a deceased employee will be issued to the estate of the employee or to a person entitled by law to share in the estate of the deceased employee.

Services Pay Directive 1989-089 (33) indicates the statutory deductions recoverable at source, appropriate exemptions and income tax forms to be utilized for the payment of entitlements after an employee's death.

2.1 Payments where no documents are required

No documentation is required for the payment of Returned Soldiers Insurance Premiums or Veterans Insurance Premiums where the total amount payable is less than $500. Payment is subject to applicable provincial laws, or conditions under any applicable provincial laws that have not been complied with.

Where these premiums are refundable to the estate of the insured person, payment may be made to the beneficiary or beneficiaries under the insurance contract upon approval by the Legal Branch, PWGSC.

2.2 Payments requiring supporting documents

Where the aggregate of amounts payable by the Crown to the estate of the deceased person do not exceed the amounts stated below, payment may be made to the claimant upon submission of the required documents and approval of the documents by the appropriate legal advisors within the department:

  • An unlimited amount payable out of the Government Annuities Account to the estate of a person who was domiciled in the Province of Quebec and who died intestate, i.e. having no will at time of death.
  • $25,000 where the deceased person had no will and the nature of the assets and the estate does not warrant obtaining letters of administration of the estate.
  • $100,000 where the deceased person had a will and the nature of the assets and the estate does not warrant obtaining a probate of the will.

2.3 Documents required

The following documents are required:

The claimant may also be requested to provide additional information or material.

The responsible officer must ensure that the forms have been properly completed and that all amounts owing to the estate by the Crown are listed on the Statutory Declaration Form, including the final salary and pension payment, where applicable.

2.4 Returned cheques

Cheques issued to a deceased person must be forwarded to the paying office for re-issuance to the estate or the claimant.