# 2011-116 Pay and Benefits, Mortgage Loan Insurance (MLI) premium

Case Summary

F&R Date: 2012–02–07

The grievor, who had been on an imposed restriction (IR), sold his residence at his previous place of duty; his dependants joined him and moved into a married quarters (MQ) at his new place of duty. A few months later, the grievor released from the Regular Force (Reg F), transferred to the Supplementary Reserve, and purchased a new residence as his intended place of residence (IPR) with a possession date one year hence. Shortly before moving into his new residence, the grievor requested that the reimbursement of his Mortgage Loan Insurance (MLI) be funded from his core envelope as he had transferred the entire equity from the sale of his previous residence to his new residence.

The grievor was informed he was ineligible for MLI reimbursement from core funds because he was considered a "renter at origin" as he had rented accommodation after selling his previous home and before purchasing his new home.

The grievor submitted a grievance requesting that the MLI costs be funded from his core envelope.

The grievance was referred to the Board without the benefit of an initial authority (IA) decision as the grievor denied the IA a request for a third extension to the time limits in order to render a decision.

The Board noted that at the time the grievor purchased his new residence, he had already released from the Canadian Forces; consequently, he was entitled to relocation benefits associated with his IPR move, not those related to his previous posting. The Board found that the grievor was clearly a renter, living in a MQ with his family at the time he released from the Reg F and purchased his house as his IPR.

The Board concluded that the grievor did not qualify for the reimbursement of MLI from the core envelope as article 8.3.10 of the Canadian Forces Integrated Relocation Program 2009, the relevant policy with respect to the grievor's situation, clearly indicates that, for a renter at origin, the reimbursement of MLI is a custom benefit.

The Board recommended that the Chief of the Defence Staff deny the grievance.

CDS Decision Summary

CDS Decision Date: 2013–01–23

The CDS agreed with the Board's recommendation that the grievance be denied. Based on sections 11.2.03 and 11.2.08 of the CF IRP, the CDS did not agree with the Board that the grievor was not eligible to HHT because he was on IR. The CDS agreed with the Board's finding that the grievor's MLI was funded correctly from the custom benefit envelope. However, since there could be many reasons why a CF member may choose not to purchase at destination, the CDS directed DGCB to conduct a policy review and explore a possible amendment with TB.