# 2024-242 Pay and Benefits, Canadian Forces Severance Pay

Case summary

F&R Date: 2025-01-10

The grievor contended that upon her release from the Canadian Armed Forces (CAF), her Canadian Forces Severance Pay (CFSP) should have been calculated using her acting/lacking rank rather than her substantive rank, making a distinction with acting while so employed and the acting appointments in the federal public service. The grievor contended that she was unable to be promoted substantive due to a medical condition that prevented her from completing a required career course and, given CAF policy, should be considered as holding the higher rank.

The Director General Compensation and Benefits, acting as the Initial Authority (IA), denied the grievance explaining that the CAF must abide by the provisions of the Compensation and Benefits Instructions for the Canadian Forces (CBI) 204.40, Pay of Officers and Non-Commissioned Members, which stipulate the conditions for payment of CFSP. The IA also explained that the grievor lacked a qualification required to become substantive at the higher rank and therefore, pursuant to CBI 204.40, calculating her CFSP based on her substantive rank was correct and complied with policy.

The Committee found that as CBI 204.40(6) specifies that the calculation of the payment in lieu of CFSP is based on the CAF member's substantive rank, the grievor's CFSP had been calculated in accordance with the applicable policies; thus, the grievor had not been aggrieved. Nevertheless, the Committee noted that the grievor was unable to achieve the qualification required to become substantive in the higher rank before her release for reasons beyond her control. The Committee noted that pursuant to Queen's regulations and orders 11.02(2) the Chief of Defence Staff has the authority to direct that a requirement to meet any promotion standards be waived, and that the grievor's circumstances would merit waiving the course requirement to become substantive in the higher rank. Therefore, although the grievor had not been aggrieved in the application of CFSP policy, the Committee recommended that the Final Authority (FA) consider waiving the requirement for promotion and promoting the grievor, retroactive to the date she was promoted in her acting rank. Furthermore, should the FA agree with this recommendation, the CFSP should be recalculated, and monies owed paid to the grievor.