PIPSC Update on PSAC / CRA Phoenix Damages Agreement

The PSAC recently announced their agreement with CRA about the taxability of the general compensation for damages received, per their Phoenix Damages Agreement signed in 2020.

The portion of PSAC damages (up to $1500) that have been announced to be tax-free represents general compensation.  The other portion (up to $1000) for the late implementation of the 2014 Collective Agreement is still considered to be taxable by the Canada Revenue Agency.

This announcement has left many PIPSC members wondering if the agreement also applies to them.

PIPSC signed the Phoenix pay system damages agreement (2019) and a later "Catch-Up Agreement" in 2021, along with several other bargaining agents. These agreements are distinct from the one signed by PSAC. As such, PSAC's agreement with CRA is not automatically applicable to PIPSC members. After carefully reviewing both agreements, PIPSC has determined that the recent PSAC and CRA agreement cannot be replicated for our members.