# 2011-129 Pay and Benefits, Mortgage Loan Insurance (MLI) premium , Relocation Benefits, Relocation Expenses

Case Summary

F&R Date: 2012–02–06

Upon being relocated back to Canada from a place of duty outside Canada, the grievor who owned three private motor vehicles (PMV), decided to tow his third vehicle. The grievor requested that this third vehicle be considered a "trailer" towed behind his PMV and thus entitling him to an additional 50% of the kilometric allowance from core funding. As well, the grievor queried his entitlement to the reimbursement of mortgage loan interest (MLI) expenses.

The grievor was informed that the dictionary meaning of a trailer was generally "an unpowered vehicle pulled by a powered vehicle"; in the circumstances, the grievor's third vehicle would not be considered a PMV, but part of his household goods and effects. In the matter of MLI, the grievor was told that if he did not transfer all of the equity from the sale of his previous home towards the purchase of the new home, his entitlement to MLI was capped at what he would have paid had he transferred all of his equity.

The grievor submitted a grievance stating that the definition of trailer in the Concise Oxford Dictionary is "a vehicle towed by another" and he requested that he be reimbursed what he estimated at $750 mileage, $110.73 for a vehicle safety check and undetermined plating costs. As for the MLI, the grievor lamented that the policy expressed in Canadian Forces Integrated Relocation Program (CF IRP) 2009, article 8.3.10, was extremely poorly written and suggested that if the CF IRP policy was interpreted similarly to the Royal Canadian Mounted Police (RCMP) policy, his mortgage premium would be reimbursed from his custom benefits envelope. He added that, should the CF IRP policy be adjusted to agree with Revenue Canada's interpretation of a first-time home buyer, he would be reimbursed from core funding.

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 prescribed time limits in order for a decision to be rendered.

The Board noted that the definition of a PMV set out in section 1.4 of the CF IRP is "a serviceable motor vehicle... owned and registered by the CF member ...". Furthermore, the Concise Oxford Dictionary defines a trailer as "an unpowered vehicle towed by another ...". The Board found that neither the CF IRP nor the Concise Oxford Dictionary definition of a trailer conforms to the vehicle that was towed by the grievor in the sense that the vehicle in question was a powered vehicle and that it was registered as a PMV and not as a trailer.

The Board reviewed the applicable CF IRP section concerning MLI and noted that the reimbursement of a MLI premium can only be authorized if the equity in the former residence is transferred in full to the new residence. In the case at hand, the grievor did not transfer the full equity as he indicated that the equity was lost with the collapse of the stock market. Consequently, the Board found that the grievor had not met the conditions of the MLI reimbursement. As well, the Board agreed with the information provided to the grievor by the Relocation Advisor that the reason for not transferring the full equity has no bearing on the issue.

Finally, the Board added that the definition of a first-time home buyer used by Revenue Canada to permit the use of Registered Retirement Savings Plans toward the purchase of a house does not apply to the CF IRP which represents the Treasury Board Secretariat's approved policy for Canadian Forces (CF) members on relocation. Similarly, the RCMP's policy pertaining to the reimbursement of mortgage insurance to its members does not apply to CF members.

The Board recommended to the Chief of the Defence Staff that the grievance be denied.

CDS Decision Summary

CDS Decision Date: 2012–10–15

The CDS agreed with the Board's findings and recommendation that the grievance be denied.