# 2009-041 - Administration of Foreign Service Premium and Operations Foreign Service Premium, Allowances and...

Case Summary

F&R Date: 2009–09–14

In July 2007, the grievor was posted to an outside Canada location, and was accompanied by his dependants. He was entitled to, and received, the Foreign Service premium (FSP) pursuant to the Compensation and Benefits Instructions (CBI). During May to September of 2008, the grievor was attached posted to Southwest Asia on an operational deployment, creating an entitlement to the operations (OPS) FSP, also pursuant to the CBI.

During his operational deployment, the amount of the grievor’s FSP was reduced pursuant to a 2005 memo issued by the Director Compensation and Benefits - Administration (DCBA). The grievor argued that his FSP ought to have been calculated pursuant to the CBI, and not the DCBA memo, and that the amount of his FSP should not have been reduced.

There was no initial authority decision in this matter, as the grievor did not grant the extension requested by the Director General Compensation and Benefits (DGCB). However, the DGCB did provide comments as a subject matter expert, and explained that the DCBA memo was being used to complement the provisions of the CBI. Further, the DGCB confirmed that although the most recent version of the CBI is effective 1 April 2008, specific provisions of the FSP and OPS FSP have not been amended, and that the DCBA is in the process of re-writing the applicable provisions of the CBI.

The Board found that the provisions of the CBI override those found in the DCBA memo, and that the grievor’s FSP ought to have been calculated pursuant to the CBI. As such, the grievor’s FSP should not have been reduced during his operational deployment.

The Board recommended that the grievance be upheld, and that the Chief of the Defence Staff (CDS) direct that the grievor’s FSP be calculated pursuant to the CBI. Further, the Board recommended that the CDS direct a review of the files of other members with circumstances similar to the grievor, to ensure that their FSP was calculated pursuant to the CBI.

Systemic recommendation

The Board was of the view that the provisions of the DCBA memo (1611-10.3.04 (0298/05) (DCBA 4) 23 August 2005), were inconsistent with the CBI with regard to the calculation of FSP and OPS FSP. The Board was concerned that FSP and OPS FSP continued to be approved and reduced pursuant to the DCBA memo, despite the fact that these benefits are governed by the CBI. Further, the Board commented that due to the inconsistencies, the provisions of the DCBA memo should not be relied upon by the Canadian Forces (CF) to administer such benefits. The Board recommended that the CDS order a review of the changes proposed by the DCBA to the FSP and OPS FSP to see if they are necessary. If ultimately it is decided that changes are required, the Board recommended that the CF work with the Treasury Board (TB) on an urgent basis in order to amend the applicable provisions, so as to regularize the administration of these allowances under proper TB authority.

CDS Decision Summary

CDS Decision Date: 2010–07–23

The CDS agreed with the Board's findings and its recommendation to uphold the grievance concerning the calculation of the grievor's Foreign Service Premium (FSP). The CDS agreed that the DCBA letter reduces the FSP amount by the member's share, restricting what is contained in the CBI relating to FSP and operations (OPS) FSP. The CDS also agreed with the Board's systemic recommendations that a review of all files of members in similar circumstances be conducted, and that revisions being proposed to the FSP and OPS FSP policies based on the DCBA letter be reviewed to determine if they are actually necessary. The CDS forwarded a copy of his decision to the Chief of Military Personnel, asking him to both validate the necessity of the proposed changes to the MFSI and to review all the files of CF members in situations similar the grievor.