# 2014-134 - Canadian Forces Severance Pay (CFSP), Reserve Force Retirement Gratuity
F&R Date: 2014–11–17
The grievor enrolled into the Primary Reserve (P Res) and subsequently transferred to the Supplementary Reserve (Supp Res). At the time of his transfer, he did not have sufficient eligible service to qualify for the Reserve Force Retirement Gratuity (RFRG), a fact he acknowledged. Subsequent to his transfer to the Supp Res, the Canadian Forces Severance Pay (CFSP) was introduced replacing the Regular Force Severance Pay and the RFRG. It also provided that accumulated eligible CFSP could be cashed-out under certain conditions as Payment in Lieu (PIL). The grievor complained that, as a member of the Supp Res, he had not received any type of retirement severance pay whereas serving members with less service than him were allowed to cash-out their accumulated CFSP as PIL. He requested that he be paid the CFSP PIL for the time he served with the CAF.
The Initial Authority, the Director General Compensation and Benefits, denied the grievance on the basis that Compensation and Benefits Instructions (CBI) 204.40 specifically precludes members serving in the Supp Res from being eligible for the CFSP or the CFSP PIL.
The Committee had to determine whether the grievor was entitled to the CFSP PIL.
The Committee agreed with the grievor that he had insufficient eligible service to create an entitlement to the RFRG on transfer to the Supp Res.
The Committee examined the grievor's circumstances in relation to the CBI 204.40 and concluded that, according to 204.40(7) (Entitlement to CFSP), the grievor had served in the Supp Res after 29 February 2012 and that, according to 204.40(3) (Entitlement to PIL), the grievor has served in the Supp Res during the period after 1 March 2012. In that the CBI 204.40 specifically excludes such service from eligibility for the CFSP/PIL, the Committee found that the grievor was not eligible for the CFSP or the CFSP PIL.
CDS Decision Summary
CDS Decision Date: 2016–01–07
The CDS agreed with the Committee's findings and recommendation that the grievance be denied. The grievor's status on the Supp at the time the policy changed disentitled him to receive the severance pay.
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