Canadian Forces Severance Pay (CFSP)
Compensation and Benefit Instructions (CBI) 204.40, CFSP Administrative Directive
Severance Pay is a lump sum payment paid to the member upon release.
Canadian Armed Forces (CAF) members who transfer or are released from the Regular Force or the Primary Reserve Force may be entitled to a severance benefit which is based on years of eligible service.
CFSP is calculated as seven days of pay for the member's substantive rank at release per year of eligible service, including partial year, to a 30 year maximum in the member's lifetime.
For CAF members in the substantive rank of Colonel and above, and Lieutenant -Colonel of the legal branch and above, the accumulation of years of eligible service ended on 1 Oct 2011, and for all other CAF members, with the exception of military judges, the accumulation of years of eligible service ended on 1 Mar 2012.
The accumulation of years of eligible service continues for members who are released for medical reasons (release Items 3(a) and 3(b) under QR&O 15.01), and released involuntarily (release Items 5(b), 5(d), 5(e), or 5(c) where the member has not reached retirement age under Queen's Regulations and Orders (QR&O) Chapter 15 but has completed the period of obligatory service because of a change in classification, trade specifications, or in the establishment requirements of the CF), or who is released by reason of death.
In the event of death, Severance Pay is payable to the member's service estate.
During the release process, the member's Release section completes the CFSP calculation form and advises the member of his/her entitlement. Subsequently, the Release section forwards all release documentation to Director Military Careers Administration (DMCA) for audit of the member's file. Once the audit has been completed, DMCA advises Director Military Pay and Allowances Released Personnel Pay Office (DMPAP RPPO) of the member's entitlement for payment.
This benefit is administered by DMCA and is paid by the DMPAP RPPO at National Defence Headquarters (NDHQ). For additional information, call toll free 1-800-773-7705.
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