Executive Group (EX) and Governor In Council Appointees (GIC) - Relocation Provisions

Table of Contents

1.1 Application

1.2 10% Home Sale Assistance

1.3 Assistance for Home Search

1.4 Weekend Travel Home Every Two Weeks while on TDRA

1.5 Incidental Expenses Allowance

1.6 Enhanced EX/GIC Services

1.7 Relocations From Abroad

Appendix A

1.1 Application

1.1.1

The NJC Relocation Directive is compulsory for all employees appointed to, or currently in the following groups, whose substantive classification is: DM, GX, EX, LA 2B-3C, MD-MOF 4/5, MD-MSP 3, Governor-in-Council levels 1 to 11, and excluded DS 7 and DS 8.

1.1.2

The provisions of the NJC Relocation Directive are compulsory for all persons appointed to the EX and GIC categories from outside the Public Service.

1.1.3

EX/GIC employees on assignment for more than one year's duration and less than three years are not entitled to the provisions of sale (Part VIII) and purchase of property (Part IX). The modified funding formula outlined in article 13.7 of the NJC RD applies.

1.2 10% Home Sale Assistance

In conjunction with the applicable NJC Relocation Directive provisions described in preceding chapters, EX and GIC employees will also qualify for the following:

1.2.1

10% Home Sale Assistance (see the examples in Appendix "A")

1.2.1.1

Employees may be reimbursed the difference between the appraised value of their home and the actual selling price, if the latter is lower. The maximum reimbursement shall not exceed 10% of the appraised value, or $15,000.

1.2.1.2

The appraised value is to be determined by a certified appraisal as per the provisions under the IRP contract (Not 1).

Core Fund
  • EX/GIC's can reduce the selling price by up to 10% of appraised value
  • Limited to $15,000
  • No Home Equity Assistance (HEA)
Customized/Personalized Funds
  • Any amounts above $15,000 - subject to availability of funds from the envelope and subject to CRA rules

Notes:

  1. Market value is to be based on appraisal as provided for under IRP and is to be consistent with other NJC Relocation Directive requirements.
  2. Properties being sold for less than 95% of the appraised value require pre-departmental approval. All such cases are to be submitted by the CRSP directly to the Departmental National Co-ordinator for approval.

Example:

Home appraised at $100,000 but is listed at $105,000. If the selling price is reduced to $90,000 because of the 10% option, prior approval must be obtained from the Departmental National Co-ordinator because the sale price is now below 95% of the appraised value.

1.3 Assistance for Home Search

Employees shall be reimbursed under the Core Fund, actual and reasonable expenses for rental/home finding services provided by professional rental firms up to the pre-negotiated corporate rates. See section 7.7 of the NJC RD.

1.4 Weekend Travel Home Every Two Weeks while on TDRA

Applicable to employees with dependants who remain in the family home.

This entitlement is based on the premise that the employee will make travel arrangements more than 14 days in advance.

1.4.1

When a door-to-door move is not possible, EX/GIC category employees shall be entitled to travel home on average every two weeks while on Temporary Dual Residence Assistance (TDRA). The total number of weekend travel home trips shall not exceed:

  • two (2) trips over the initial thirty days of the TDRA; and
  • six (6) trips over the initial ninety days of the TDRA; and
  • not to exceed eight (8) trips over the period of the TDRA.

Payment of these transportation expenses comes from the Core fund.

Weekend travel home expenses are limited to transportation costs. Transportation costs may include commercial carrier, PMV, taxi, tolls and car rental. There is no meal or incidental benefit under weekend travel home.

Weekend travel home benefits are also extended to employees who are renters at origin and receive a short notice transfer. Renters with dependants at origin, who are authorized a short notice relocation or already in function at destination where travel status ceases upon transfer notification, may claim for weekend travel home benefits. Rationale is that they were unable to effect the movement of household goods and effects due to the short notice.

As it relates to specific days, it is understood that an employee's schedule may provide them with the opportunity to travel home during mid-week versus weekends. It is confirmed that as long as the department approves leave, the employee that qualifies for weekend travel home has the flexibility of traveling mid-week. The intent of the Directive is to provide the employee with an opportunity to travel home and reunite with their family and is not limited to a two-day return trip from Friday to Sunday.

Note: All travel arrangements are to be facilitated by the Contracted Relocation Services Provider, in collaboration with the Government Travel Services contract.

1.5 Incidental Expenses Allowance

1.5.1

The $650 non-accountable incidental allowance is not applicable to EXs/GICs on relocation.

1.5.2

Employees appointed to or from within the EX and GIC groups, are entitled to a taxable relocation allowance equivalent to four weeks salary (the $650 non-accountable incidental allowance allowed by Canada Revenue Agency (CRA) is included in this amount). The allowance is based on the annual salary effective on the date of appointment.

1.5.2.1

The weekly rate of pay is the employee's annual rate of pay (salary paid between the minimum rate and the job rate), divided by 52.176.

1.5.2.2

A new appointee's incidental allowance is based on the annual salary effective on the date of appointment to the EX/GIC position and is not subject to any retroactivity- see calculation formula.

Example: GOC EXs/GICs incidental allowance calculation based on factor: gross annual salary/52.176 x 4 (weeks).

1.6 Enhanced EX/GIC Services

At the discretion of the employing department/agency, EXs and GICs may be offered face-to-face consultations with the Contracted Relocation Service Provider's personnel for:

  • preparation of HHT;
  • post HHT;
  • final reconciliation;
  • counselling at employee's office (within the regional office locations);**
  • initial consultation with CRSP representative.**

All travel cost incurred by service provider's personnel will be borne by the employer.

The additional cost of this service is the responsibility of the employing department/agency, and is not included in the service contract.

1.7 Relocations From Abroad

When the departments authorize to the IRP a relocation from abroad, the following funding formula and benefits will apply:

Funding:

  • Renter's Allowance of $1,000
  • 35% of Cost of Travel (when distance from overseas cannot be covered by road, the distance of 5,000km shall be utilized to ensure consistent application of funding.)
  • Transfer Allowance – if applicable

Applicable Benefits (as per IRP limitations):

  • Travel to new location
  • IAM&MA
  • Purchase related expenses or rental search assistance
  • Accountable Sundry Expenses
  • Cleaning of new replacement residence
  • Dependant and pet care, if applicable
  • Movement of household goods and effects: For appointees residing outside Canada and the continental United States and who ship household effects, the payment of the cost of packing, shipping, in-transit storage and unpacking will be limited to 900 kg (2,000 lb) of household effects for an appointee without dependants and 2,300 kg (5,000 lb) for an appointee with dependants. The weight limitations shall be applied after the effects have been packed or crated, or both.

Non Applicable Benefits:

  • House Hunting Trip
  • Weekend Travel Home
  • Disposal of Origin Principal Residence
  • TDRA

Appendix A

Examples of computation - 10% Home Sale Assistance (HSA) for EX (and equivalents)/GICs

(Core Assistance never to exceed $15,000)

Example #1:

Originally Purchased @ $178,500 (1997)

Current Appraised Value $175,000

Listed at $180,000

Sells for $170,000

10% of appraised value = $17,500

Computation: Appraised value of $175,000 minus Selling price of $170,000 = $5,000.

Therefore, the employee is entitled to financial assistance of $5,000 from Core.

Example #2:

Originally Purchased @ $178,500 (1997)

Current Appraised Value $175,000

Listed at $170,000

Sells for $160,000 (National Co-ordinator has to approve because selling below 95% App. Val)

10% of appraised value = $17,500

Computation:

Appraised value of $175,000 minus Selling price of $160,000 = $15,000.

95% of appraised value = $166,250

Selling price = $160,000

Since the property sold for less than 95% of the appraised value, the Departmental National Co-ordinator must approve the reimbursement of the financial assistance of $15,000 from Core.

Example #3:

Originally Purchased @ $178,500 (1997)

Current Appraised Value $175,000

Listed at $175,000

Sells for $155,000 (National Co-ordinator has to approve because selling below 95% App. Val)

10% of appraised value = $17,500

Computation:

Appraised value of $175,000 minus Selling price of $155,000 = $20,000.

95% of appraised value = $166,250

Selling price = $155,000

Since the property sold for less than 95% of the appraised value, the Departmental National Co-ordinator must approve the reimbursement of the financial assistance of $15,000 from Core. Subject to funding availability, he/she may approve an additional $2,500 from the Customized/Personalized funding envelopes.

Example #4:

Current Appraised Value $130,000

Sells for $116,000 (National Co-ordinator to approve because sale price below 95% App. Val)

10% of appraised value = $13,000

Loss from sale = $14,000

Computation:

Appraised value of $130,000 minus Selling price of $116,000 = $14,000.

95% of appraised value = $123,500

Core to reimburse $13,000

No additional assistance from Customized/Personalized because it will exceed the 10% assistance.

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