# 2016-110 - Foreign Service Premium Calculation, Military Foreign Service Instruction (MFSI), Overpayment

Foreign Service Premium Calculation, Military Foreign Service Instruction (MFSI), Overpayment

Case Summary

F&R Date: 2016–11–09

The grievor was serving in an out of Canada exchange posting when he was attached-posted to Baghdad, Iraq, with his host unit as part of "Operation Iraqi Freedom." His monthly Foreign Service Premium (FSP) entitlement was then re-calculated by reducing his share of the FSP to zero and granting him the FSP rate attributed to his dependants. The grievor grieved the new FSP amount.

The Director General Compensation Benefits (DGCB), acting as the Initial Authority, found that in accordance with Compensation and Benefits Instructions (CBI) 10.14.01(14), the grievor was not entitled to FSP for the period he was attach-posted to Iraq, less the initial 25 days of his absence.

The Committee observed that the grievor's FSP entitlement had been calculated on the basis of an administrative practice set out in a 2005 Director Compensation and Benefits Administration (DCBA) memorandum, which has since been determined to be contrary to the Treasury Board approved CBI. The Committee referred to a 23 July 2010 grievance decision in which the Chief of Defence Staff (CDS) found that the 2005 DCBA memorandum was contrary to the CBI and directed DGCB to calculate FSP benefits in accordance with the CBI and to review the files of other Canadian Armed Forces (CAF) members in similar situations.

The Committee recommended that the grievor's FSP entitlement be re-calculated in accordance with CBI 10.14.01(14) and the 23 July 2010 CDS direction, and that his pay account be credited accordingly.

FA Decision Summary

There is no Final Authority decision as the grievor withdrew the grievance.

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