# 2020-004 Pay and Benefits, Canadian Forces Integrated Relocation Program – Temporary Dual Residence Allowance Policy Review, Capital Improvements in accordance with article 8.2.10 of the Canadian Forces Integrated Relocation Program

Case summary

F&R Date: 2020-12-22

The grievor contested the Director General Compensation and Benefits Administration decision to deny his application for capital improvement (CI) benefits arising from the sale of his principal residence.

The Initial Authority denied redress on the grounds that the closing date of the sale of the grievor's residence was after 19 April 2018, and the most recent version of the Canadian Forces Integrated Relocation Program (CFIRP) Directive only authorized CI benefit entitlement to principal residences whose closing dates were prior to 19 April 2018.

The Committee found that “sale” and “closing date” were not synonymous terms. Rather, it found that the sale of a residence occurs when the buyer and seller enter into a binding contract of purchase and sale. Noting that the CFIRP Directive does not define “sale date” in the sale benefits provisions, the Committee applied the definition found in other sections of the CFIRP Directive to conclude that the grievor “sold” his residence before the transfer of ownership or title, and the closing date was merely a formality. Accordingly, the Committee found that the grievor sold his principal residence prior to 19 April 2018 and was therefore eligible for the CI benefit in accordance with the applicable CFIRP Directive. It additionally found that the grievor had a vested right in the CI provisions of the CFIRP Directive in effect at the time he entered into an agreement of purchase and sale.

The Committee recommended that the Final Authority (FA) direct the Director of Compensation and Benefits Administration to reimburse the grievor for the CI benefits to which he was entitled upon the sale of his principal residence, in accordance with the CFIRP Directive in effect at that time.

FA decision summary

The Director Canadian Forces Grievance Authority, acting as FA, agreed with the Committee's findings and recommendation that the grievor be reimbursed for the CI benefits to which he was entitled upon the sale of his principal residence, in accordance with the CFIRP Directive 8.2.10 of the 2014-2018 version. The FA stated that the possession date and the date of sale are not necessarily congruous or interchangeable terms, and found reasonable that the date on which parties enter into a legally binding contract for the purchase and sale of a residence is the day that the status of the latter is considered "sold". Therefore, the FA found that the CFIRP Directive in effect on 20 March 2018, when the grievor signed the Residential Contract of Purchase and Sale, was applicable. As such, the grievor is eligible for the Class benefit.