Relocation Directive - APS 2014 - Chapter 1
This chapter describes the policy principles. They are the cornerstone of managing relocations and shall guide all CF members, civilian employees and the service provider in achieving fair, reasonable and modern relocation practices.
It is divided into the following sections:
- Section 1.1 Policy
- Section 1.2 Components
- Section 1.2.1 Custom Funding Formula
- Section 1.2.2 Personalized Funding Formula
- Section 1.3 Recourse
- Section 1.4 Definitions
1.1.01 Policy effective date
The Canadian Forces Integrated Relocation Program (CFIRP) 2009 is effective 1 April, 2009. It represents the Treasury Board Secretariat's approved policy for CF members on relocation of their Dependants, Household Goods and Effects ((D) HG&E).
1.1.02 Policy statement
The Department will:
- pay for a door-to-door move when authorized to relocate at public expense; and
- ensure reimbursement of relocation expenses as per the CFIRP policy.
1.1.03 Eligibility application
The following officers or non-commissioned members of the Regular Force or the Reserve Force on Class B or C service are entitled to relocation benefits under the CFIRP:
- Regular Force members who are posted and Reserve Force members who accept a period of employment, as per Chapter 13, are authorized to move their (D) HG&E from one place of duty to another only when the replacement residence is at least 40 kilometres closer to the new place of duty than the current principal residence.
The formula for calculating the distance is as follows:
- Distance in kilometres between previous residence and new place of duty = (number of km)
- Distance in kilometres between new residence and new place of duty = (number of km)
- Line 1 minus line 2 = (number of km)
When the difference is 40 km or more, relocation benefits are reimbursable.
- CF members who are eligible to a relocation to the Intended Place of Residence (IPR) on release; and
- The Executor or the personal representative of the estate of a CF member who is deceased, officially reported as missing, a prisoner of war or interned or detained by a foreign power or declared to be mentally incapacitated.
(Limitation) CF members who enrol or re-enrol, or transfer from the Reserve Force to the Regular Force, and have not successfully completed basic military training are not entitled to relocation benefits under the CFIRP, unless they are:
- on their first posting after graduation from a military college;
- on their first posting after graduation from a civilian university for which their education was paid by the Canadian Forces; or
- dental, medical or legal officers who have successfully completed basic officer training.
1.1.04 Policy articulation
The CFIRP Policy Document contains information regarding the benefits and applicable funding available to CF members on relocation of (D) HG&E at the time a file is opened. It provides options to CF members within a policy framework to allow them to choose specific relocation benefits.
Each year on 1 April, the CFIRP transitions to a new governing policy year. CF members will be administered under the CFIRP 2009 when:
- their COS/release/transfer date (for Regular Force) or the commencement date of the period of employment (for Reserve Force) is 1 Apr 09 or later; or
- they elect their IPR prior to 1 Apr 09 and they relocate their (D) HG&E after 1 Oct 09; or
- their COS/release/transfer date (for Regular Force) or the commencement date of the period of employment (for Reserve Force) is prior to 1 Apr 09 and they relocate their (D) HG&E after 1 Oct 09.
1.1.05 Policy structure
This policy has been divided into three parts:
- Part 1 - Principles and Commonalities - which contains the principles of the CFIRP policy, the administration of the policy and the relocation entitlements that are common to all moves;
- Part 2 - Core Policies - which contains the main and general entitlements for a typical move within Canada; and
- Part 3 - Special Circumstances - which contains the limitations or enhancements of specific benefits in special circumstances.
This section provides:
- an overview of the three separate yet interdependent sets of entitlements: core, custom, and personalized components from which relocation benefits are paid; and
- the composition of the custom and personalized funding formula.
This table provides a general outline of the benefits and their correspondent funding associated with each component.
|Benefits||Essential to a relocation.||Enhancements to a relocation.||Non-essential, but attributable to a relocation.|
|Funding||Each benefit funded directly by the Department||
Formula composed of three factors:
Formula composed of a variety of elements (if eligible):
1.2.03 Core benefits
CF members are not required to use these benefits; however, unused benefits cannot be exchanged or assigned a monetary value to pay for other benefits or expenses. CF members who do not use core benefits shall forfeit them.
1.2.04 Custom benefits
Custom funding is based on the factors of type of accommodation, distance traveled and family size. The custom funding formula is used by CF members to pay for custom benefits. Custom funding is provided on a use it or lose it basis. Once the customized funds have been used, remaining expenditures are from the personalized funds.
1.2.05 Personalized benefits
Relocation expenses may be reimbursed from the personalized funds when the expenditure is not specified within the policy but is attributable to the relocation and meets the intent of the CFIRP. These must be reasonable, justifiable, and supported by receipts. The reimbursement of these expenses must not constitute personal gain.
It is within CF members' discretion to use personalized benefits. The personalized funding formula is subject to Canada Revenue Agency regulations and available for use in three ways:
- it can pay for any personalized benefits;
- it can pay for additional custom benefits beyond what can be covered by the custom funding formula; and
- remaining funds can be cashed out and paid directly to CF members.
When a relocation benefit is reimbursed from personalized funds CF members are not obligated to use the 3rd party service provider.
The Custom Funding Formula is used to calculate how much money will be available to spend on Custom Benefits and is the total of three factors:
Custom Funding Formula
- Greater of $1,000 or 35% of the real estate commission based on the sale price if sold prior to an appraisal or the appraised value (max. $5,250)
- + 35% of the cost of transportation (using current Department of Finance annual rate) from old place of duty to new place of duty for CF member and dependants (one-way)
- + 35% of the cost of shipping 1,000 lbs/452.60 kg of household goods per qualifying room
- = Total Custom Funds
1.2.1.02 Limitations to qualifying rooms
For the purpose of calculating the Custom Funding Formula, the following is the list of qualifying rooms:
- Basement (to include washer/dryer and freezer)
- Bedroom (including bedrooms in basement)
- Dining Room
- Family Room
- Garage (not multi-level condos and apartment buildings)
- Living Room
- Outbuilding/Storage Shed (limit one)
- Recreation Room
- Storage Room (separate from multi-level condos and apartment buildings)
1.2.1.03 Shared accommodation
When CF members share accommodations with persons other than their spouse or dependants, the shipment of HG&E factor is based on the rental or pro-rated homeowners formula.
|If CF members occupy a||then the factor is based on|
|single room,||one qualifying room.|
|portion of an entire residence,||CF members portion of the number of rooms in the residence.|
The Personalized Funding Formula is used to calculate how much money will be available to spend on Personalized Benefits and is the total of five factors as shown in the table below:
Personalized Funding Formula
- Movement Grant
- + Posting Allowance (if applicable)/Reserve Relocation Allowance
- + Real Estate Incentive (max. $12,000)
- + Long Term Storage (LTS) Incentive
- + House Hunting Trip (HHT) Savings Incentives
- = Total Personalized Funds
1.2.2.02 Movement grant
Wherever a move of HG&E is authorized and eligibility has been established, CF members receive a non-accountable movement grant of $650 to offset various losses or expenses incurred but not specifically provided for. CF members must sign a statement attesting that these expenses were incurred. Receipts are not required. Examples of expenditures are:
- food which cannot be shipped (e.g.: frozen food, perishables, spices, etc);
- household goods which cannot be shipped (e.g.: paint and building materials);
- house plants;
- disassembling and assembling of garden and patio furniture;
- removal or installation of valance boxes, curtain rods, wall hooks, clocks, and wall mirrors;
- taking up or re-laying hall runners, etc., labour for altering and re-hanging existing drapes and curtains;
- purchase of school books at new location, if such books are required for the normal course of study and are not provided free of charge by the school authority (only applicable if relocation takes place during school year);
- non-transferable portion of fees such as insurance and local clubs and associations, pro-rated;
- photocopy and transmittal costs for transcripts of academic records for employee or dependant; and
- replacement of propane tank.
1.2.2.03 Posting/Reserve Relocation allowance
Posting allowance is intended to provide compensation for the turbulence associated with relocation of Regular Force members, which is based on CF members' monthly rate of pay on the COS date.
Reserve Force members authorized to relocate are entitled to the Reserve Relocation Allowance of $1000.
1.2.2.04 Real estate incentive
CF members who elect to keep their principal residence receive an incentive equal to 80% of the pre-negotiated corporate real estate commission rate based on the appraised value of the principal residence, not to exceed $12,000.
1.2.2.05 Long Term Storage incentive
CF members posted to isolated posts or outside Canada are entitled to Long Term Storage (LTS) of major appliances. CF members who do not store their major appliances may transfer 80% of the savings resulting from not storing one set of the following qualifying appliances: refrigerator, stove, freezer, washer, dryer, and/or dishwasher. Savings shall not exceed the cost of 24 months storage. Entitlement is limited to CF members who owned the appliances prior to the receipt of a posting instruction. Eligible appliances are listed in art 9.1.07.
1.2.2.06 HHT savings incentives
CF members can generate Personalized Funding of up to $250 as a result of savings by shortening their HHT and an additional $250 if the CF member and spouse travel via service flight or charter.
The benefits outlined in this policy are all inclusive. It is designed to provide some degree of flexibility while remaining within the intent of the policy. This will allow CF members to make choices based on their specific needs; however, those choices shall not extend benefits or create entitlements.
Disagreement with the relocation policy is not substantiation for departmental adjudication.
There is no provision, under any circumstances, for benefits to be exchanged, traded, assigned a monetary value, or changed through the provision of a business case.
1.3.02 Request for clarification /adjudication
Requests may be submitted to DCBA through the CF Relocation Coordinator when CF members:
- have incurred reasonable expenses resulting from exceptional circumstances or demands not covered by the relocation policy and require Treasury Board Secretariat (TBS) authority; or
- do not agree with the application or the interpretation of the CFIRP policy by the service provider.
All requests shall include the following information:
- a written description of the decision/situation that generated the request and all supporting facts known to the CF member;
- the rationale supporting the request, with a clear statement of the full benefits sought; i.e. what benefits the CF member feels he/she should be entitled to; and
- all pertinent supporting documents such as posting instr, MPRR, invoices, airfare quotes, medical statements, Relocation Consultant's statements, reports, if MSC and service spouse is also posted, both posting instrs etc.
CF Relocation Coordinators shall return incomplete requests to CF members with explanations on required documents/information.
CF Relocation Coordinators shall respond directly to CF members' requests that do not meet the limitations of the policy as stated above with appropriate analysis and pertinent references.
Released CF members Released CF members shall communicate with the nearest CF Base Relocation Coordinator.
Section 1.4 Definitions
- Accommodation Directory
Government of Canada Hotel Directory for that particular area.
- Actual and Reasonable Expenses
Justifiable expenses that do not upgrade the financial position or exceed the authorized benefit of the CF member and are supported by proof of payments; i.e., receipts, vouchers, and credit card statements.
- Arm's Length Transaction
An arm's length transaction is one that is consummated between two or more non-related parties as per Canada Revenue Agency (CRA) interpretation. Related individuals include:
direct-line descendants, as well as spouse or common law partners, brothers, sisters, and in-laws; and
non-immediate family members such as cousins, aunts, uncles, nephews and nieces.
- ATM Charges
Charges by a financial institution for transactions conducted via automatic teller machines.
- Basic Training List (BTL)
A list of positions to which CF members may be posted to acquire initial occupation qualification training.
- Business Case
A detailed analysis of the costs, benefits and risks associated with a proposed plan which offers reasonable alternatives. It provides information necessary for making a decision about whether a plan should proceed.
- Clear Title
Unconditional title to a property as determined by the CF member's lawyer.
- Commercial Lodgings
Lodgings obtained in a hotel, motel, tourist home, guest cottage or similar establishment that caters to the general public at predetermined rates.
- Commercial Transportation
Transportation by air, ground transportation such as but not limited to: professional airport limousine, rental vehicle, shuttle, taxi, bus, rail or watercraft. Upgrades to Business Class or First Class will not be reimbursed from any funding envelope.
The Component provides CF members with benefits and funding for relocation.
- Controlled Location
A VCDS Controlled International Operation, where the move of dependant(s) is authorized; however, the move of HG&E is limited to specific weight restrictions found within the applicable weight tables contained in the CFIRP Policy.
- Cooking Facilities
Adequate cooking facilities, as a minimum, are a two-burner hotplate, refrigerator and a microwave oven if required for a continuous period of less than seven days. For periods of more than seven continuous days, adequate cooking facilities include a stove, refrigerator and microwave oven.
The Directorate of Compensation and Benefit Administration.
The Department of National Defence.
A person who normally resides with the CF member at the CF member's primary residence and is:
- The CF member's spouse or common-law partner and if living separately is doing so for military reasons;
- A relative by blood, marriage or adoption such as the parent(s), grand-parent(s), brother(s), sister(s), aunt(s), uncle(s), niece(s), nephew(s) or grandchild of that CF member or of the CF member's spouse or common-law partner who is both dependant on the CF member for support and:
- Is under 21 years of age; or
- Dependant on the CF member by reasons of mental or physical disability; or
- Is in full time attendance at a school or other education institution that provides training or instruction of an educational, professional, vocational or technical nature. The biological child, stepchild, adopted child including a child adopted by Aboriginal people under the Custom Adoption Practice, or legal ward of the CF member or the CF member's spouse or common-law partner or their child who is both dependent on the CF member for support and is:
- Under 21 years of age; or
- Dependant on the CF member by reason of mental or physical disability; or
- is in full time attendance at a school or other education institution that provides training or instruction of an educational professional, vocational or technical nature.
- A family member, who is permanently residing with the CF member, but who is precluded from qualifying as a dependant under the Income Tax Act because the family member receives a pension.
- A housekeeper, if the member is single and has a dependent child as defined above for whom the member maintains a home in which the member also normally resides (posting instruction must recognize housekeeper as dependant as per CFAO 209-28).
Number of Dependants - When a posting message does not include all dependants, CF members must provide their Military Personal Records Resume (MPRR) to the service provider to show the number of dependants.
1. In cases of joint/shared custody, when the dependant is residing with the CF member at the time of the relocation, expenses as outlined in the CF IRP Policy may be reimbursed. As per art 3.4.03 the DAE portion of the posting allowance is payable to CF members whose dependants are relocated at public expense.
2. When posted outside Canada the host country may not recognize those defined as dependants under the CF policy therefore CF members should verify host country regulations and ensure compliance understanding that they are responsible for any subsequent costs associated with continuing to establish residency.
- Direct Road Distance
The official distance listed in the department-approved distance guide less distance traveled on water, where included, or when not listed means the shortest practicable road distance as determined by the service provider.
Self-contained living quarters that have the normal amenities necessary for continuous year-round occupancy, and that have one or more private entrances from outside or from a common hall, lobby, vestibule or stairway inside the building. The term includes houses, condominiums, apartments, mobile homes, boats and those portions of a multiple-unit residential building that are owned and occupied by the CF member.
The sale price of the residence less any existing mortgage and/or lien, not a CF member's net worth (i.e. the difference between the sale price of the residence and the remaining mortgage or loan payments outstanding on that residence).
- Exceptional Circumstances
Such circumstances include, but are not limited to, weather conditions, operational requirements or travel to remote areas. They are rare and shall only be considered in cases of extreme and unforeseen situations.
The amount of money spent in order to purchase an item or service.
The payment for professional services rendered.
- Funding Formula
The various factors and elements that add together to determine the amount of custom and personalized funding available to the CF member.
- Geographical Boundaries
Geographical boundaries of a base established by a Base Commander.
- Government Quarters
Family or single quarters, a limited dividend or non-public fund housing or similar accommodation whose occupancy is controlled by the Canadian Forces Housing Agency or by military authorities.
- Home Staging
Home staging is a professional service that assists a home seller in making their home more attractive and appealing to potential buyers. A home stager may bring in furniture, artwork, plants, rugs and accessories to make a house look its best while on the market. Some full service stagers also offer contractor consulting services which may include choosing paints, tiles, carpets, etc., and working with the contractors to get the house ready.
- Household Goods and Effects (HG&E)
The personal belongings, including the furniture, household effects, household equipment and personal effects of a CF member and dependants. They do not include those items specified not eligible to be shipped due to their hazardous nature or where excluded by Departmental relocation policy or otherwise restricted by household goods removal tariffs of the HGRS contract.
- Imposed Restriction (IR)
An approved delay in moving Dependants, Household Goods and Effects ((D)HG&E) for a specific period of time.
When on an HHT or DIT means the Treasury Board Incidental Travel Rate payable to one family unit only (including the CF member) anytime CF members or dependants are on travel status. Incidentals are intended to pay for expenses such as, but not limited to, gratuities, dry cleaning, laundry, bottled water, phone calls, home grass cutting, snow removal, home security check, plant watering, mail services, pet care, telecommunications hook-ups and service.
- Intended Place of Residence
The place at which a CF member or former CF member intends to reside following release from the CF.
- Isolated Posts
As identified in the Treasury Board Isolated Post Directive.
- Kilometric Rate - Travel
The travel rates as published by the Treasury Board kilometric rate. Reimbursement under CFIRP is the applicable kilometric rate, multiplied by the pre-established distance to be traveled as per the department-approved distance guide.
- Loyalty Contract
A vendor-imposed contract, which stipulates a fixed period of time for a service provided to the consumer (i.e., a free cell phone for signing a three year contract; if the contract is broken there is a penalty to the consumer).
- Market Value
The value of a residence at the time of its sale.
- Meal Rate
The Treasury Board prescribed meal rate per person, per full calendar day that includes the breakfast, lunch and dinner meals.
- Medically Retained
A CF member may be retained subject to employment limitations only on a temporary, transitional basis, to the earliest of the end of the current terms of service, or a period of three years, if the recommendation of an Administrative Review - Medical Employment Limitation is release because the CF member is in breach of the minimum operational standards.
- Mileage - Distance Calculation
Kilometric and mileage distances (less distance traveled by sea) calculated using the shortest practicable road distance and the department-approved distance guide.
- Miscellaneous Allowance
When on TNL and ILM&M means 12% of the full daily meal rate for the CF member and 6% of the full daily meal rate for each dependant regardless of age and is payable anytime CF member or dependants are on travel status. Miscellaneous expenses are intended to pay for expenses such as, but not limited to, gratuities, dry cleaning, laundry, bottled water, phone calls, home grass cutting, snow removal, home security check, plant watering, mail services, pet care, telecommunications hook-ups and service.
- Movement Grant
A non-accountable grant intended to offset various losses or expenses incurred but not specifically provided for because of the move.
- Non-Commercial Lodgings
Lodgings other than commercial lodgings, including a travel trailer, tent or a private home, but not including public quarters or the private residence of the CF member or a relative or acquaintance with whom the CF member normally resides.
Animals that normally reside in the family home or that would be allowed in a living room. Farm animals such as horses are not included. Large numbers of animals such as a cattery or a kennel of dogs, whether owned for pleasure or profit, are not included.
- Place of Duty
The place at which a CF member usually performs normal military duties and includes any place in the surrounding geographical area that is determined to be part thereof by the Chief of the Defense Staff or such other officer as shall be designated.
- Posting Allowance
An allowance, provided as part of the funding, intended to provide compensation for the turbulence associated with relocation of CF members of the Regular Force.
- Primary Mode of Travel
The mode of travel by which the CF member and the majority of the family members travel.
- Principal Residence
A dwelling in Canada, other than a summer cottage or other seasonal accommodation, together with that portion of land (1.25 acres or less) that:
- Is situated at the location to which the CF member's Household Goods and Effects were last moved at public expense or at a location from which the CF member is authorized to move Household Goods and Effects where the CF member's Household Goods and Effects have never been moved at public expense;
- Is owned by the CF member or the CF member's dependants or jointly by the CF member and the CF member's dependants; and
- Was occupied by the CF member, the CF member's dependants or both, immediately prior to official notification of the posting (as defined by Canada Revenue Agency).
- Principal Residence - Actively Marketed
A principal residence will be considered actively marketed for sale when:
- The principal residence is continuously for sale except for brief interruptions (e.g. to change brokers or listings) through a licensed real estate agent (realtor);
- The principal residence listing price is consistent with the appraisal paid by the CFIRP and the conditions of the market;
- The CF members are acting in good faith to dispose of the residence; and
- No reasonable offers have been refused.
- Private Motor Vehicle (PMV)
A serviceable motor vehicle whose cubic measurement does not exceed 20.80 cubic meters that is owned and registered by the CF member or a dependant, and may be of passenger car configuration, or any other type of self-propelled vehicle mounted on a car or truck chassis, but does not include the cars of electric or steam railways or other motor vehicles running only on rails, or a motorized snow vehicle, farm tractor, or similar type of self-propelled vehicle.
- Professional Cleaning
A service rendered by a company or an individual who provides cleaning services as a source of income. It does not include the purchase of cleaning supplies to personally perform the cleaning. It excludes items deemed as maintenance such as, but not limited to: chimney cleaning, furnace cleaning, duct cleaning, spa and pool cleaning, etc.
- Prohibited Move
A move to a place of duty to which the Department considers it desirable, or in the public interest, to prohibit the move of dependants, or Household Goods and Effects, or both.
- Purchase Price
The actual amount paid for a principal residence, including applicable federal or provincial sales tax.
- Receipts/Personal Declaration
Receipts - An official receipt as defined by Canada Revenue Agency (CRA) which shall include the following information:
- Name of person or organization that provided the service;
- Date the service was rendered (period covered);
- Address of the CF member;
- Signature of the service provider;
- Social Insurance Number (SIN) of the person providing the service or telephone number of the person providing the service (see note below);
- Amount paid for services rendered; and
- If the receipt is for babysitting, the name(s) of the child(ren) that were babysat.
SIN Number - Although CRA internal procedures indicate that a SIN should be provided on the receipt, Canadian citizens may refuse to provide their SIN to the service provider due to confidentiality issues. However, they must provide a telephone number where they can be reached by CRA if their SIN is required at a later date.
Personal Declarations - Receipts are required for reimbursement. Under extenuating circumstances when receipts have been lost, accidentally destroyed, incomplete or unobtainable, CF members may submit a personal declaration which explains the events, the reasons and the costs. They must include CF members' name/rank and be signed/dated.
- Replacement Residence
A dwelling in Canada, other than a summer cottage or other seasonal accommodation, together with that portion of land (1.25 acres or less) that:
- Is situated at the location to which the move of HG&E is authorized;
- Is purchased by the CF member, CF member's dependants or both at the location to which the move of HG&E is authorized; and
- Will be the principal residence of the CF member's or the CF member's dependants at the location to which the move of HG&E is authorized.
- Restricted Move
A move to a place of duty to which the Department considers it desirable, or in the public interest, to restrict the move of dependants or Household Goods and Effects or both, until suitable accommodation becomes available.
- Sale Price
The final selling price of a principal residence.
- Secured Accommodation
A binding contract for accommodations (signed purchase/lease agreement) where all conditions have been met.
The common law partner of the CF member or a person married to the CF member.
- Standard Rate Accommodation
The Government of Canada Hotel Directory Standard Rate for that particular area.
- Storage at Own Expense (SOE)
The temporary or long term storage of Household Goods and Effects at the expense of the CF member outside the HGRS contract, either immediately prior to or subsequent to the movement of the Household Goods and Effects at public expense, including a move on release.
- Storage in Transit (SIT)
The temporary storage of Household Goods and Effects either immediately prior or subsequent to movement of the Household Goods and Effects at public expense, including a move on release.
- Storage, Long-Term Storage (LTS)
The storage or long-term storage of Household Good and Effects, not including storage in transit (SIT).
- Third Party Suppliers
A third party service provider (not considered a subcontractor) engaged by the service provider to give specialized services in accordance with the CFIRP program or the relocation of CF members as part of their entitlement under the CFIRP Policy.
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