# 2015-327 - Pension Benefits, Pension Entitlements, Release - Benefits

Case Summary

F&R Date: 2016–04–08

The grievor complained of the decision by the Director Pensions and Social Programs to abate his Regular Force officer gratuity upon his release following the completion of a fixed period of service. The grievor claimed that his gratuity should not be abated because, when he chose to transfer his deferred pension payable under the Canadian Forces Superannuation Act (CFSA) to the Public Service pension plan under the Public Service Superannuation Act (PSSA), he ceased to be entitled to CFSA benefits and therefore the required criterion for abatement was not met. As redress, the grievor requested reimbursement of the full amount of the gratuity abatement.

The initial authority, the Director General Compensation and Benefits, found that the Compensation and Benefits Instruction 206.23, Officer Gratuity – Abatement, required the CAF to abate the gratuity by the amount of the difference between the capitalized value (CV) of his deferred annuity and his pension contributions, without interest, made under the CFSA.

The Committee found that at the time of his release, the grievor was entitled to receive a deferred annuity from the CAF, and that he elected to surrender and transfer that benefit to the Public Service Pension Plan, in accordance with the PSSA, in order to buy an equivalent pension benefit under the PSSA. Accordingly, given that the grievor was entitled to a deferred annuity under the CFSA at the moment of his release, the Committee found that CBI 206.23 applied to the grievor's situation and that his gratuity was subject to abatement by the difference between the CV of the deferred annuity payable under the CFSA and the grievor's contributions, without interest, made under the CFSA. On that basis, the Committee recommended that the grievance be denied.

FA Decision Summary

The Director General Canadian Forces Grievance Authority (DGCFGA), as the FA, agreed with the Committee's findings and partially with its recommendations. He agreed that the grievance must be denied. However, despite the Committee's concerns regarding the calculation of the gratuity and associated abatement, and how the information was relayed, recommending that the grievor's file thorough audited, the DGCFGA was confident, based on representations, that the calculation was done correctly.