Late Payment Penalties (LPPs)

MEP is required to assess Late Payment Penalties (LPPs) against outstanding support arrears owed to a support recipient. LPPs may be added to the file balance if a support payor does not pay support as outlined in a support order or agreement. The LPP rate is 18% yearly and is calculated on the balance of support arrears daily. They are added to the file balance once per month.

MEP does not assess LPPs in some circumstances, for example:

  • During the first 30 days of file activation.
  • For 30 days after new charges have been added to the file (for example, reinstatement of enforcement for an adult child).
  • On an increase of support arrears ordered by a court between the effective date of the increase and the date of the order.
  • If the support payor lives outside Manitoba and the file is registered in a MEP office in another province, state or country (see the Parties Outside of Manitoba page).
  • If the support recipient waives or opts out of the collection of LPPs.
  • If the support payor establishes and complies with a payment arrangement.
  • If the support payor receives and complies with an Administrative Suspension of Enforcement.

A support recipient can request to opt out of LPPs or waive (remove) some or all of the LPPs already assessed on their file by completing a Waive/Opt Out of Collection of LPPs form at anytime. LPPs owing to a government agency cannot be waived by a support recipient.

Cancelling the waiver/opt-out of LPPs

LPPs cannot be reinstated if removed by a Waive/Opt Out of LPPs. A support recipient can only cancel the waiver/opt out of LPPs by completing a Cancellation of LPP Opt Out form. LPPs will be assessed on the file as of the date the form is received by MEP.