# 2011-032 - Loss of Benefits Due to Large Geographical Area, Post Living Differential (PLD), Privy Council...

Case Summary

F&R Date: 2011–06–29

As a result of a number of changes to the post living differential (PLD) and transitional PLD (TPLD) policies, Canadian Forces (CF) members posted to the National Capital Region (NCR) before 1 April 2008 continue to receive TPLD and those members posted after that date do not receive the benefit. This was due, in part, to a delay in implementing the phase-out of the PLD benefit altogether as initially contemplated and the subsequent freeze of TPLD rates.

The grievor was posted to the NCR after 1 April 2008 and therefore did not receive TPLD. Once it became clear that the discrepancy between himself and those members posted before 1 April 2008 would be extended, he submitted a grievance. He contended that it was unfair to continue to deny him TPLD based on a posting date, stating that the cost of living in the NCR was the same for everyone.

The initial authority (IA) stated that the Department of National Defence (DND) did not have the authority to change the TPLD effective date because it had been fixed by Treasury Board (TB) regulations. Consequently, the IA denied the grievance.

The Board confirmed that, in a decision letter sent from TB to DND, TB had authorized the freeze of TPLD rates, which the CF communicated through a series of annual CANFORGENs. However, the applicable Compensation and Benefits Instruction (CBI) was not fully amended to reflect the freeze of TPLD rates. The Board concluded that the CF is obliged to respect the regulatory rules for announcing changes to a regulation. The Board found that when policy changes such as those made to the PLD/TPLD entitlement are approved by TB, the CBI should be amended to reflect those changes.

The Board found that according to policy the grievor was not entitled to receive TPLD. However, the Board also noted the inherent unfairness that some members continue to receive the benefit and others do not. The Board also pointed out that this unfairness is not limited to the NCR; other TPLD areas are affected in the same way.

The Board recommended to the Chief of the Defence Staff (CDS) that he deny the grievance. The Board also made a systemic recommendation that the CDS direct a review of the TPLD concept to determine whether it will be fully implemented or not so as to restore fairness by providing equal benefits to all CF members posted to the same areas.

CDS Decision Summary

CDS Decision Date: 2011–10–24

The CDS agreed with the Board's findings and its recommendation to deny the grievance. The CDS agreed with the Board's systemic recommendation that he direct a review of the TPLD concept. The CDS was satisfied that the DGCB was currently reviewing this issue with TB. Nonetheless, in an attempt to expedite this process, the CDS directed that the CMP liaise with them to verify the current status of TPLD, with a view to determining its future and to restore quality among those affected.