Docstoc

Canadian Forces - DOC

Document Sample
Canadian Forces - DOC Powered By Docstoc
					CF IRP 2003




                                Canadian Forces

         Integrated Relocation Program




                                            APS 2003




Departmental Authority: Director of Compensation and Benefits Administration




1
CF IRP 2003


Table of Contents

      General Principles ............................................................................................................... 1
      Core Component ................................................................................................................. 7
      Custom Component .......................................................................................................... 10
      Personalized Component .................................................................................................. 15
      House Hunting Trip (HHT) .............................................................................................. 20
      Destination Inspection Trip............................................................................................... 30
      Travel to New Location .................................................................................................... 37
      Interim Lodging, Meal and Miscelleanous Expenses ....................................................... 47
      Rental Accommodation .................................................................................................... 59
      Sale of Principal Residence .............................................................................................. 64
      Purchase of Replacement Residence ................................................................................ 77
      Shipment of Household Goods and Effects (HG&E) ....................................................... 92
      Additional Subsidized Allowances………………………………………………………99

Addendum

A- 1 Definitions
A-2 Postings to or From Overseas and Hawaii
A-3 Postings to or from the United States (excluding Hawaii)
A-4 Move to Intended Place of Residence
A-5 Members Moving Unaccompanied
A-6 Service Couples - Relocation Entitlements
A-7 Cross Postings - To and From Locations outside Canada
A-8 Posting to or From Goose Bay
A-9 Early Move to Intended Place of Residence on Release (IPR)
A-10 Primary Reserve Force Relocation - Full-Time Class B or C Employment




2
APRIL 2003


    Canadian Forces Integrated Relocation Program (CF IRP)
                    Postings/Relocation within Canada
                                 General Principles


Effective Date   The Federal Government is introducing a new comprehensive relocation
                 program known as the Canadian Forces Integrated Relocation Program (CF
                 IRP). The CF IRP comes into effect April 1, 2003.


Purpose          The CF IRP is designed to provide the member with professional assistance
                 throughout every step of the relocation with the view of providing the
                 member every reasonable opportunity to maximize the available benefits. It is
                 tailored to encourage and facilitate door-to-door moves through improved
                 relocation management.


40 Kilometer     The general rule is that upon relocation the new principal residence is at least
Rule             40 kilometers closer to the new workplace than the previous residence. This
                 rule is consistent with the Income Tax Act that states, in part, “… so that the
                 distance between the old residence and the new work location is not less than
                 40 kilometers greater than the distance between the new residence and the
                 new work location…”

                                                                              Continued on next page




1
APRIL 2003


General Principles, Continued


Eligibility        Unless specifically stated otherwise, the relocation provisions of CF IRP shall
                   apply to all members whenever they are authorized to move household goods
                   and effects in excess of 40 Kms on posting from one place of duty to another
                   or on a move for release purposes from isolated units within Canada (e.g.
                   Yellowknife, Whitehorse, Masset and Flin Flon).

                   Note: Refer to the appropriate Addenda for procedures relating to moves for
                   releases purposes from the United States, Overseas (including Hawaii) and
                   Goose Bay


Responsibilities   The Department shall reimburse members actual and reasonable relocation
                   expenses within the limits of this policy.

                   The provisions of CF IRP relocations shall provide for the member’s
                   legitimate expenses only. Personal gain or the underwriting of extravagances
                   shall not be tolerated. Expenses incurred due to misinterpretation or errors in
                   application will not be necessarily reimbursed


Departmental       The approval of the Departmental Authority, Director Compensation
Authority          and Benefits (DCBA), is required for payment of relocation expenses not
                   covered by this policy or under the terms of the contract with the third
                   party supplier.

                   Unless specifically stated otherwise, the standards, rates or allowances and
                   the reimbursement of expenses incurred as authorized in this policy shall be
                   applied to all eligible persons irrespective of age, sex, marital or family status,
                   or disability.

                                                                                  Continued on next page




2
APRIL 2003


General Principles, Continued


Content      This is an outline of the various benefits available to members posted from
             one place of duty to another. The various benefits should be read and
             understood. Refer to Addenda 2, 3 or 7 for relocations to and from outside
             Canada and to Addendum 8 for relocation to Goose Bay.


Scope        CF IRP comprises three (3) funding and benefit components, namely the Core
             Component, Custom Component and Personalized Component. While the use
             of Core benefits of the program is not mandatory, there is no provision under
             any circumstances for items not used, to be exchanged or assigned any
             monetary value that could be added to the Custom or Personalized funding
             envelopes of the program. The member, who chooses not to use the
             provisions of Core benefits, shall forfeit them.

             This relocation policy and any limitations thereto are published as policy and
             not as permissive guidelines. The relocation policy is based on the
             reimbursement of actual, reasonable and legitimate relocation expenses.



Intent       The Department’s objective is to provide its’ members with a full range of
             relocation assistance services in a formula that combines direct
             reimbursement of Core Component expenditures, of which the member has
             little control over, and a “cafeteria style” approach to benefits. The CF IRP
             provides a tailored approach for each member’s particular needs that permits
             the member to select what is best for them within the established conditions
             and limitations. It will provide members with relocation planning, marketing
             assistance, and destination services, along with several other enhanced
             relocation services.

                                                                         Continued on next page




3
APRIL 2003


General Principles, Continued


Relocation      The “one-stop shopping” concept of this program will ensure access to
Component       professional relocation services assistance throughout every step of the
Overview -      member’s move.

                Core Component

                   Benefits considered as essential to a relocation; and
                   Funded exclusively by the Department.

                Custom Component

                   Benefits considered as enhancements to a relocation; and
                   Funded exclusively based on type and size of accommodation, distance
                    traveled and family size.

                Personalized Component

                   Benefits considered to be non-essential by the department but considered
                    attributable to a relocation; and
                   Funded exclusively based on allowances, grants, savings and incentives.

                Unless otherwise stated all Custom and Personalized reimbursable
                expenses require receipts. Benefits are to be managed to allow the member
                to maximize the effectiveness of the relocation according to Income Tax
                regulations and to allow the member to benefit from cost effective rates and
                services.


Policy          Where the advice given by the third-party relocation consultant contradicts
Clarification   this policy, a request is to be made for the advice to be provided in writing.
                Subsequently, DCBA is to be consulted for clarification on advice provided.

                Ultimately, the member makes the final decision to accept or reject the
                advice provided. This is very important because expenses resulting from
                misinterpretation or mistakes will not necessarily be reimbursable

                                                                            Continued on next page




4
APRIL 2003


General Principles, Continued
Services of 3rd   Where the services of third party suppliers are provided, the supplier of
Party Supplier    services must be at “arms length” to the member and/or family. The criteria
                  used to determine whether or not person’s deal with each other at arm’s
                  length is interpreted within the Income Tax regulations.




                                                                            Continued on next page




5
APRIL 2003


General Principles, Continued


Posting         Where for service reasons a posting is cancelled or postponed, members may
Cancellations   be reimbursed actual and reasonable expenses within the conditions and
                limitations of this policy directive associated with the following:

                   Expenditures already incurred as a result of formal posting notification
                    and in accordance with the CF IRP; and
                   Required move of (D) HG&E at the place of duty.



Special         Requests for reimbursement that fall within the intent of this Directive but
Circumstances   whose special circumstances have not been specifically addressed may be
                forwarded through the consultant to NDHQ/DCBA for consideration.




6
APRIL 2003


Core Component


Purpose         The purpose of this section is to describe the various Core benefits available
                to members funded by the Core Funding.


Intent          The Core component provides members with the benefits essential the move
                that is funded by the Department.


Core Funds      Core Benefits are 100% funded by the Department within the conditions and
                limitations within this directive.



Summary of      It is the policy of the Department to provide members with the following
Core Benefits   benefits from Core Funding. Refer to the appropriate section within the
                policy document for the conditions and limitations.

                   House Hunting Trip (HHT)
                   Destination Inspection Trip (DIT)
                   Sale of Principle Residence
                   Purchase of Replacement Residence
                   Rental Accommodation
                   Travel to New Location (TNL)
                   Interim Meals, Lodgings and Miscellaneous Expenses (ILM&M)
                   Shipment of Household Goods and Effects (HG&E)
                   Sundry Relocation Expenses


                                                                             Continued on next page




7
APRIL 2003


Core Component, Continued


Core Benefits:   The following is an overview of benefits within the Core Element available to
    Overview     members on posting. It does not cover any details. For information on the
                 conditions and limitations of a particular benefit, refer to the appropriate
                 section within this Policy Document. Unless otherwise indicated original
                 receipts shall be required.

                 Accommodation Disposal

                    Cleaning of Accommodation
                    Rental Accommodation including:
                 :   Rent/Lease Liability
                    Sale of Principal Residence including:
                 :   Appraisal Fees
                 :   Real Estate Commission
                 :   Temporary Dual Residency Allowance (TDRA)
                 :   Legal Fees
                 :   Mortgage Breaking Penalties
                 :   Home Equity Assistance (HEA)
                    Interim Meals, Lodgings and Miscellaneous Expenses (ILM&M)

                 Accommodation Acquisition

                    House Hunting Trip (HHT)
                    Destination Inspection Trip (DIT)
                    Cleaning of Accommodation
                    Rental Accommodation including:
                 :   Rent in Advance of Move
                 :   Rental Agency Finding Fees
                    Purchase of Replacement Residence including:
                 :   Legal Fees
                 :   Reverse Temporary Dual Residency Allowance (RTDRA)
                 :   Structural Inspection
                 :   Mortgage Interest Differential
                    Interim Meals, Lodgings and Miscellaneous Expenses (ILM&M)


                                                                           Continued on next page




8
APRIL 2003


Core Component, Continued


Core Benefits   Transportation and lodgings en-route
Overview
continued        Travel to new location (TNL)

                Shipment of Household Goods and Effects (HG&E) including:

                 Car Shipment
                 Storage in Transit
                 Long Term Storage

                Sundry Relocation Expenses

                   Connection/disconnection of electrical equipment and public utility service
                   Payment of local licenses
                   Cost of altering new locks
                   Post office Change of Address


                                                                             Continued on next page




9
APRIL 2003


Custom Component


Purpose           The purpose of this section is to describe the various Custom benefits
                   available to members funded by Custom Funding.


Intent         The Custom Component provides members benefits and funding to enhance
               the relocation. Members are provided funding and benefits to enhance the
               relocation by the Department paying for benefits not payable under the Core
               Component.


Custom Funds   Custom benefits shall be funded from the member’s Custom Funding
               Envelope. Custom funds are provided for the sole purpose of enhancing the
               move, unused or remaining funds shall be returned to the Cost Center. They
               are NOT payable in cash to the member.

               Custom Funds cannot be used to supplement benefits that are identified
               as Personalized Benefits.

                                                                           Continued on next page




10
APRIL 2003


Custom Component, Continued


Custom       Overview: The following overview of the benefits available to members on
Benefits     posting does not provide complete details. Information on the conditions and
continued    limitations of a particular benefit is located in appropriate section block
             within the policy document.

                          Custom Funding Benefits Overview

              Accommodation Disposal

              Sale of Principal Residence
              : Building Inspection
              : Marketing Incentives
              : Capital Improvements
              : Home Equity Loss over Core
              : TDRA over Core

              : Interim Meals and Lodgings – Extended Family
              Accommodation Acquisition

              HHT and DIT
              : Child Care
              : Children and Extended Family Travel
              : Extended Stay

              Rental Replacement

              : Rent in Advance over Core

              Purchase of Replacement Residence

              :   Bridge Financing
              :   Mortgage Default Insurance
              :   Interest on $25,000 low interest loan
              :   Home renovations for the disabled
              :   Interim Meals and Lodgings for Extended Family


                                                                       Continued on next page




11
APRIL 2003


Custom Component, Continued


Custom Benefits continued (continued)

                  Transportation and Lodgings En-route

                  : Extended Family Travel
                  Shipment of Household Goods and Effects

                  :   Adjustments to Furniture and Effects
                  :   Car rental when primary vehicle shipped
                  :   Additional Insurance
                  :   Additional HG&E over Core
                  :   Crating
                  :   Shipment of - Second Vehicle, Pets, Boats, Antiques, Art, RVs, Trailers
                  :   Miscellaneous Shipping Expenses

                  Spousal Employment Services



Custom           The Custom Funding Formula is used to calculate how much money will be
Funding          available to spend on Custom benefits and is comprised of three factors.
Formula
Envelope




Basis of         Accommodation Factor
Custom
Funding                   First Factor is based the following:
Envelope
Calculations              Greater of $1,000 or 35% of real estate commission payable based the
                          sale of the principal residence and the established appraised value of
                          the home to a maximum amount of $5,250.



                                                                              Continued on next page




12
APRIL 2003


Custom Component, Continued
Basis of       Transportation Factor
Custom
Funding               Second Factor is based on the cost of one-way transportation to the
Envelope              new place of work location for the member and authorized
Calculations          dependants.
continued
                      This calculation is based on the distance one-way between the former
                      and new place of work (as determined by the policy center),
                      multiplied by Department of Finance Kilometric Rate multiplied by
                      35%.

                      Example: (distance X Dept of Finance Km rate X family size X
                      35%) = $$$


Basis of       Shipment Factor
Custom
Funding               Third Factor is based upon the average cost of shipping 1,000
Envelope              lbs/453.60 kg of household goods per unit/room from one zone to
Calculations          another zone. This weight does not include the shipment of vehicles
continued
                      for calculation purposes.

                      This calculation is based on the cost to ship household good per
                      qualifying rooms (based on a zone to zone matrix) multiplied by 35%.




Custom         Custom Funding Envelope
Funding
Formula        Greater of $1,000; or 35% of the real estate commission (max $5,250)
Envelope
Summary        35% of the cost of transportation for member and each dependant (one-
               way)

               35% of the cost of shipping 1,000 lbs/453.60 kg of household goods per
               qualifying room

               Note: Any funds remaining in the Custom Funding Element shall be
               returned to the Department.


                                                                         Continued on next page




13
APRIL 2003


Custom Component, Continued


Example of the   The Funding Formula is calculated as shown in the table below. (This
Custom           example does not include those members relocating for release purposes.
Funding          Members relocating for release are to refer to the appropriate addendum.) For
Formula          information on the conditions and limitations in any part of the calculations,
Envelope         please refer to the appropriate block within this directive.

                 Note: Unused Custom Funds shall be returned to the department.
                                     Custom Funding Envelope
                       Greater of $1,000 or 35% of the real estate commission
                       (max. $5,250);

                  +    35% of the cost of transportation for member and
                       dependants (one-way)

                  +    35% of the cost of shipping 1,000 lbs/453.60 kg of
                       household goods per qualifying room

                       Total Custom Funding Element




14
APRIL 2003


Personalized Component

Purpose           The purpose of this section is to describe various Personalized benefits
                   available to members funded by the Personalized Funding Envelope.


Intent         The Personalized Component provides members benefits that are recognized
               as legitimate relocation expenses however are considered by the Departmental
               Authority not to be critical to the move. The purpose is to allow the member
               to claim other relocation expenses that best suit their needs and which are not
               covered under the Core or Custom Components.


Personalized   Personalized benefits are funded from the member’s Personalized Funding
Funds          Envelope only. The Posting Allowance (if entitled), Movement Grant and the
               savings transferred from the Core Component through the use of incentives
               determine the amount of money available to a member. Personalized funds
               that are not expended are “cashed out” to the member.

               Personalized funds may be used to supplement Custom Benefits.

                                                                           Continued on next page




15
APRIL 2003


Personalized Component, Continued


Personalized                         Personalized Benefits Overview
Benefits
Overview
               Accommodation Disposal

               : Mortgage Penalty when porting was an option
               : Property Management
               : Interim Meals and Lodgings (Upgrades)
               Accommodation Acquisition

               :   Mortgage Interest Buy-down
               :   Interim Meals and Lodgings (in excess of 20 days)
               :   Interim Lodgings upgrades
               :   Car Rental upgrades

               Travel to New Location

               : 2nd Mode of Travel




                                                                       Continued on next page




16
APRIL 2003


Personalized Component, Continued


Personalized   Personalized Funding Envelope is calculated using a variety of elements
Funding        based on the member’s circumstance.
Formula
Envelope       The sum of money in the Personalized Funding Envelope consists of the
               Posting Allowance (if entitled) and the Movement Grant and additional
               increases due to specific savings that can be generated in the move. These
               savings (incentives) are then transferred from the Core Component to the
               Personalized Funding Envelope.



Movement       Members may receive a non-accountable incidental grant into their
Grant          Personalized Funding Element in an amount of up to $650. This allowance is
               meant to offset losses or expenses incurred because of the move. Members
               must sign a statement verifying that these expenses were incurred. Receipts
               are not required.




Posting        Members also receive, into their Personalized Funding Element, a Posting
Allowance      Allowance. The intent of the Posting Allowance is to compensate member
               the unquantifiable expenses associated with relocations. The Regulations
               concerning eligibility and amounts are contained in Compensation and
               Benefit Instructions (CBIs) Article 205.42.


                                                                          Continued on next page




17
APRIL 2003


Personalized Component, Continued


Real Estate      Members who elect not to sell their home receive in their Personalized
Commission       Funding Envelope 80% of the real estate commission fees that would have
Savings          been payable had the member decided to sell their home. The amount payable
                 is based on the appraised value of the professional real estate appraiser and a
                 pre-negotiated corporate real estate commission rate. It shall not exceed
                 $12,000.

                 Note: A member who elects this incentive remains entitled to the
                 reimbursement of Property Management Fees under Personalized Funds.



Savings from     Members posted to Isolated Posts or Overseas where it is impossible to
Reducing Long    normally accommodate their major appliances are entitled to Long Term
Term Storage     Storage at public expense. Members who make alternate arrangements and
Costs on Major   decide not to store their major appliances may transfer 80% of the savings
Appliances       resulting from not storing their fridge, stove, freezer, washer, dryer, and/or
                 dishwasher, using industry averages into their Personalized Funding
                 Envelope. Savings shall not exceed the storage costs of the items based a
                 maximum of 24 months.


Savings from a   Members, who are authorized to drive and complete the HHT in less than the
Shorter House    normal length HHT of 5 days, may transfer 100% of all lodging, meals, and
Hunting Trip     incidental savings for unused days (capped at $250) to the Personalized
                 Funding Envelope. For calculation purposes a normal length HHT consists of
                 the following:

                           5 days meals (HHT) + 2 days (travel status)
                           5 nights lodgings (HHT) + 1 night lodgings (travel status)


                 Members who fly and stay over a Saturday at destination receive $250.00 into
                 their Personalized Funding Envelope.

                 In all cases the HHT incentive is capped at $250.00

                                                                              Continued on next page




18
APRIL 2003


Personalized Component Continued


Personalized
Funding          An Overview of the Funding Formula is as follows:
Envelope
General           Movement Grant                                           $650.00
Overview
                  Posting Allowance (if applicable)
                  80% of Real Estate Commission for not selling
                 principal residence
                  80% of cost of LTS for major appliances
                 (maximum 24 months)
                  HHT Incentive ($250 for flying and staying over a Sat; or Lodgings, Meal
                     and Incidental savings for unused days) – capped at $250.00


Example of the   The Personalized Funding Formula is calculated as shown in the table below.
Personalized     (This example does not include those members relocating for release
Funding          purposes. Members relocating for release are to refer to the appropriate
Envelope         addendum.) For information on the conditions and limitations in any part of
Formula          the calculations, please refer to the appropriate block within this directive.

                 Note: The unused portion of the Personalized element shall be “cashed-out”
                 to the member.
                                     Personalized Funding Envelope
                  +    Movement Grant                                                   $650

                  +    Posting Allowance (if applicable)

                  +    80% of real estate commission for not selling home
                       (max. $12,000)
                  +    80% of the cost of LTS for major appliances (max.24 mos)

                  +    HHT Incentive ($250 for flying and staying over Sat. or
                       Lodging, meal and Incidental savings for unused days) –
                       capped at. $250

                       Total Personalized Funding Element




19

                 Ma
APRIL 2003


House Hunting Trip (HHT)


Policy          The policy Department of provides a member with an opportunity to secure
                suitable accommodation at the new place of duty. A successful HHT should
                result in most moves being door to door, thereby, considerably reducing the
                interim lodgings, meals and incidental expenses and eliminate unnecessary
                storage in transit costs. There is no entitlement to exercise an HHT if the
                member has already secured a residence.


Benefits and Funding
Overview
        Benefit                 Core                  Custom                   Personalized
 Return Transportation      Member and/or       Children and/or            Nil
                             Spouse               Extended Family
 Lodgings (5 + 1            Member and/or       Children and/or            Upgrade Lodgings
 nights), Meals and          Spouse               Extended Family
 Incidentals for
 (5 + 2 days)
 Extended HHT               Nil              Member, Spouse,               Upgrade Lodgings
 Additional days                               Children and/or
 lodgings and meals                            Extended Family
 Rental Car               Compact Car      Additional expenses         Vehicle Upgrade
                         6 days             (over 6 days)
 Telephone and Fax        Local and Long  Nil                              Additional
 Calls                       Distance                                         Expenses
                             Business Calls

 Child Care                 Actual              Expenses incurred      If no Custom Funds
                             Expenses             above Core              remain
                             (within             Specialized Child
                             limitations)         Care
 Child Care – Extended      Nil                 Additional expenses        If no Custom Funds
 HHT                                              – extra days                remain
 Pet Boarding               Nil                 Actual and                 Nil
                                                  reasonable

                                                                            Continued on next page




20
APRIL 2003


House Hunting Trip (HHT), Continued


Authorization   Approval must be obtained from the member’s Commanding Officer before
Duty            proceeding on an HHT. Members are deemed to be on duty travel for the
Status/Annual   normal duration of an HHT (5 + 2 days). Annual leave must be taken for any
Leave           extended periods taken under Custom.

                The HHT shall normally be exercised 60 – 30 days in advance of COS. It
                should not be recommended when the COS is within 30 days, unless the
                Relocation Consultant is confident that the HHT will be successful and will
                reduce the requirement for ILM&M.


Travel Time     Total travel time shall not exceed two days, except when distances and/or
                connections are such that the total return journey cannot be accomplished in
                that period. In such cases, expenses related to additional travel time shall be
                authorized by the Relocation Consultant and paid using Core funds

                However, additional travel time and traveling expenses, resulting from the
                member selecting a different mode of transportation other than that which
                would normally be used, shall be funded from the Custom. Also, members
                must be on leave for the extra days required.


Duration of     A member or spouse, or both, may be authorized an HHT of up to 5 days (5
HHT             nights) duration at the new location. The total duration of the HHT shall not
                normally exceed 7 days (6 nights) total, including travel time.


Extended HHT    Members may use funds from Custom to extend the duration of their HHT by
                up to 4 days as follows:

                   Finding Accommodation: 2 days to find suitable accommodation
                   Family Issues: 2 days for obtaining day care, school finding and/or
                    making specialized medical arrangements.

                                                                             Continued on next page




21
APRIL 2003


House Hunting Trip (HHT), Continued


Additional      Members who wish to take their children on an HHT may do so by utilizing
Traveling       funds from the Custom Component. In such cases, members may be
Expenses for    reimbursed transportation and traveling expenses.
Children


Relocation      Reimbursement of allowable HHT expenses for transportation, lodgings,
Travel Status   meals and miscellaneous expenses shall be paid as if the member or spouse or
                both were on relocation travel status.


Lodgings        Core Benefit

                   Member and/or Spouse (6 nights)

                Up to the maximum Government Hotel Directory Standard Rate for the hotel
                listed for that area or a non-commercial allowance (maximum one room)

                Custom Benefit

                   Additional nights for member and/or spouse (up to 4 nights)
                   All expenses for children and extended family (up to 10 nights)

                Up to the maximum Government Hotel Directory Standard Rate for the hotel
                listed for that area or a non-commercial allowance

                Personalized Benefit

                   Hotel expenses in excess of the Government Hotel Directory Standard
                    Rate

                                                                           Continued on next page




22
APRIL 2003


House Hunting Trip (HHT), Continued


Meals and     Members shall be paid the daily meal allowance (or applicable individual
Incidentals   meal rate for part days) reflective of the current Treasury Board rates per
              person per day and incidentals for each authorized person as follows:

              Core Benefit

                  Member and/or Spouse (7 days maximum including Travel Time)

              Custom Benefit

                  Member and/or Spouse (Up to additional 4 days maximum)
                  Children and Extended Family (Up to 11 days maximum – including
                   Travel Time)

                  Incidentals shall be payable to the member only and are based on the
                  Treasury Board Incidental Travel rate.

                                                                           Continued on next page




23
APRIL 2003


House Hunting Trip (HHT), Continued


Return             Members shall be provided with the most practical and economical return
Transportation     transportation from the old place of duty to the new location and return for
                   each authorized person as follows:

                   Core Benefit

                      Commercial Transportation – Member and Spouse
                      Private Motor Vehicle – Dept of Finance kilometric rate not to exceed the
                       cost of commercial transportation (i.e. air, rail, bus)
                      Motorcycle – 60% of the Dept of Finance kilometric rate

                   Custom Benefit

                      Commercial Transportation – Children and Extended Family

                   Personalized Benefit

                      Nil


Incentive for      Applicable to members, who fly and arrange their itinerary such that they are
Staying over a     able to stay over a Saturday night or travel via “service flights/charter”. This
Saturday or use    is based upon full economy airfare from point of origin to final destination,
of service         direct/non-stop, (except when the carrier forces a connection or stopover) and
flights/charters   return. Members in these cases shall receive $250 into their Personalized
                   Funding Element.

                   Note: Stay must be at destination not en-route.

                                                                                Continued on next page




24
APRIL 2003


House Hunting Trip (HHT), Continued


Savings from a   Members, who drive (500 km or less one way) and complete the HHT in less
Shorter HHT      than the normal HHT of 5 days, may transfer 100% of all lodging, meals, and
                 incidental savings from Core for unused days (capped at $250) to the
                 Personalized Funding Envelope. The normal length HHT consists of the
                 following:

                    5 days meals (HHT) + 2 days (travel status)
                    5 nights lodgings (HHT) + 1 night lodgings (travel status)
                    5 days incidentals (HHT) + 2 days (travel status)



Telephone Calls Core Benefit

                    Local and long distance business telephone and fax call expenses
                     necessarily incurred by members during the course of house hunting (i.e.
                     to real estate agents, rental agencies, etc.); and

                 Custom Benefit

                    Nil

                 Personalized Benefit

                    Additional Expenses

                                                                             Continued on next page




25
APRIL 2003


House Hunting Trip (HHT), Continued


Local            The following is based on a maximum 6 day HHT
Transportation
                 Core

                 Car Rental

                  Actual and reasonable Compact car rental
                  Actual and reasonable gas expenses
                  Toll and parking charges
                 Private Motor Vehicle

                      Actual Mileage driven
                     (Calculated at the Dept of Finance kilometric rate. Maximum based upon
                     rental costs of Compact car and Collision Damage Waiver/Loss Damage
                     Waiver (if required))

                     No amount payable for gas expenses
                     Toll and parking charges

                 Custom

                     Nil

                 Personalized

                     Car rental upgrade

                                                                           Continued on next page




26
APRIL 2003


House Hunting Trip (HHT), Continued


Child Care   Members with dependant children under 18 years of age (over 18 years of age
             provided the child is incapable of caring for themselves due to a physical or
             mental disability), may be assisted with childcare costs. Reimbursement
             shall be in addition to any existing childcare arrangements based on a
             maximum per day whether applicable to one child or more.

             Core

             Up to 7 days:

                 An allowance of $35/day:

                 for a friend, relative, nanny or housekeeper (receipts not required)

                 Up to $75/day:

                 - for individuals who provided childcare as a regular source of income and
                 do not reside with the family (receipts required); or
                 - a bonded sitter provided by a company in the business of providing child-
                 care services (receipts or declaration is required).

             Custom

                 Child care costs beyond the 7th day as a result of extended HHT
                 Specialized childcare costs in excess of daily maximum rate

             Personalized

                 Only when all Custom Funds have been expended

             Continued on next page




27
APRIL 2003


House Hunting Trip (HHT), Continued


Boarding of     Core
Pets
                   Nil

                Custom

                   Basic Pet Care Costs - Actual and reasonable costs

                Personalized

                   Nil


HHT after       Where no HHT was utilized in advance of the Change of Strength date, the
Change of       member may be reimbursed through Core HHT like expenses such as Child
Strength date   Care/Car Rental while occupying Interim Lodgings at the new place of duty.

                Although the member may claim these expenses, the amount of Interim
                Lodgings, Meals and Miscellaneous Expenses, which would have normally
                been incurred, shall not be increased.

                Example: A member who was unable to take an HHT for operational reasons
                and has not secured a residence prior to COS date shall proceed to the new
                location and be authorized up to 15 days ILM&M from the Core Funding
                Element. During this period they may also be reimbursed Childcare and Car
                Rental if necessary, however, the 15 days shall not be extended from Core
                based on their inability to take an HHT prior to COS. Any extensions to
                ILM&M shall be administered in accordance with the ILM&M section of this
                directive.


More than one   A member may take more than one HHT but any costs in excess of the HHT
HHT             Core entitlements (limited to 5 & 2 days travel) must be funded from
                member’s Personalized. Transportation expense is only payable for one
                return trip when overnight accommodation is utilized.

                                                                         Continued on next page




28
APRIL 2003


House Hunting Trip (HHT), Continued


Short Distance   Where the old and new place of duty are in close proximity, members may
Moves            take more than one trip for house hunting (e.g. Kingston/Trenton) and may
                 drive up every day, however, costs shall not exceed the costs and time taken
                 for one normal HHT. The transportation costs incurred in multiple trips are
                 thus offset by the fact that member are not incurring any accommodation
                 costs at the HHT location.




29
APRIL 2003


Destination Inspection Trip (DIT)


Policy              It is the policy of the Department to provide the member with an opportunity
                    to travel to the new place of duty having already secured a replacement
                    residence (including official quarters).


Purpose             The DIT provides an opportunity by which the member may carry out various
                    actions such as:
                     To inspect a secured residence;
                     Finalize school arrangements;
                     Effect specific medical requirements/specialized care;
                     Other necessary administrative actions necessitated as a result of the
                        pending relocation.


Funding
Overview

          Benefit                  Core                   Custom              Personalized
 Return                       Member or              Nil                   And
 Transportation                spouse                                         Member/Spouse

 Lodgings (3 + 1              Member or              Nil                   And
 nights), Meals and            spouse                                         Member/Spouse
 Incidentals (3 + 2
 days)

 Rental Car                   Compact Car            Nil                   Vehicle Upgrade
                              4 Days
 Telephone and Fax            Local and long         Nil                   Additional
 Calls                         Distance                                       Expenses
                               Business Calls
 Child Care                 Actual expenses          Expenses              Actual Expenses
                           (single parent)             incurred above         (when both
                                                       core                   member &
                                                   (single parent)            spouse travel)
 Pet Boarding                 Nil                  Actual Expenses         Actual Expenses
                                                       (single member)        (when both
                                                                              member &
                                                                              spouse travel)

                                                                              Continued on next page



30
APRIL 2003


Destination Inspection Trip (DIT), Continued


Authorization     Approval must be obtained from the member’s Commanding Officer before
Duty              proceeding on a DIT. Members are deemed to be on duty relocation travel for
Status/Annual     the normal duration of the DIT (3 + 2 days). One night in the new location
Leave             shall include a Saturday. The total duration of the DIT shall not normally
                  exceed 5 days (4 night’s total), including traveling time.


Travel Time       Total travel time shall not exceed two days, except when distances and/or
                  connections are such that the total return journey cannot be accomplished in
                  that period. Travel shall begin or end to include a Saturday night stay at the
                  new location.


Duration of the   A member or spouse, or both, may be authorized a DIT of up to 3 days (3
DIT               nights) duration at the new location. The total duration of the DIT shall not
                  normally exceed 5 days (4 nights) total, including traveling time.


Relocation        Reimbursement of allowable DIT expenses for transportation, lodgings and
Travel Status     meal expenses shall be paid as if the member or spouse, or both were on
                  travel status.

                  Incidentals shall be payable to the member only and are based on the Treasury
                  Board Incidental Travel rate.

                                                                               Continued on next page




31
APRIL 2003


Destination Inspection Trip (DIT), Continued


Lodgings      Core

                 Member or Spouse (4 nights)

              Up to the maximum Government Hotel Directory standard hotel rate for the
              hotel listings for that area or a non-commercial allowance (maximum one
              room)

              Custom

                 Nil

              Personalized

                 And member or spouse (4 nights)
                 Hotel expenses in excess of the Government Hotel Directory Standard
                  Rate



Meals &       Members shall be paid the daily meal allowance (or applicable meal rate for
Incidentals   part days) reflective of the current Travel Directive rates per person per day
              plus incidentals for each authorized person as follows:

              Core

                 Member or Spouse (5 days maximum including travel time)

              Custom

                 Nil

              Personalized

                 And Member or Spouse (5 days maximum including travel time)

              Incidentals shall be payable to the member only and are based on the Treasury
                Board Incidental Travel rate.

                                                                           Continued on next page




32
APRIL 2003


Destination Inspection Trip (DIT), Continued


Return           Members shall be provided with the most practical and economical return
Transportation   transportation from the old place of duty to the new location for each
                 authorized person as follows:

                 Core

                    Commercial Transportation (Member or Spouse)
                    Private Motor Vehicle – Dept of Finance kilometric rate not to exceed the
                     cost of commercial transportation (i.e. air, rail, bus) that would normally
                     be used.
                    Motorcycle – 60% of the Dept of Finance kilometric rate

                 Custom

                    Nil

                 Personalized

                    Commercial Transportation (And member or spouse)


Telephone and    Core
Fax Calls
                    Local and long distance business telephone call expenses necessarily
                     incurred by members during the course of house

                 Custom

                    Nil

                 Personalized

                    Additional Expenses

                                                                             Continued on next page




33
APRIL 2003


Destination Inspection Trip (DIT), Continued


Local            The following is based on a maximum 4 day DIT
Transportation
                 Core

                 Car Rental

                     Actual and reasonable Compact car rental
                     Actual and reasonable gas expenses
                     Toll and parking charges

                 Private Motor Vehicle

                      Actual Mileage driven
                     (Calculated at the Dept of Finance kilometric rate. Maximum based upon
                     rental costs of Compact Car and Collision Damage Waiver/Loss Damage
                     Waiver (if required))

                     No amount payable for gas expenses
                     Toll and parking charges

                 Custom

                     Nil

                 Personalized

                     Car rental upgrade

                                                                           Continued on next page




34
APRIL 2003


Destination Inspection Trip (DIT), Continued


Child Care   Single parent members and when both member and spouse travel, with
             dependant children under 18 years of age (over 18 years of age provided the
             child is incapable of caring for themselves due to a physical or mental
             disability), may be assisted with childcare costs. Reimbursement shall be in
             addition to any existing childcare arrangements based on a maximum per
             day whether applicable to one child or more.

             Core

             Up to 5 days:

                 An allowance of $35/day:

                 for a friend, relative, nanny or housekeeper (receipts not required)

                 Up to $75/day:

                 - for individuals who provided childcare as a regular source of income and
                 do not reside with the family (receipts required); or
                 - a bonded sitter provided by a company in the business of providing child-
                 care services (receipts or declaration is required).

             Custom

                 Specialized childcare costs in excess of daily maximum rate (single parent
                  only)

             Personalized

                 Specialized childcare costs in excess of daily maximum when member
                  and spouse travel
                 Amounts as per Core when both member and spouse travel

             Continued on next page




35
APRIL 2003


Destination Inspection Trip (DIT), Continued


Pet Care     Core

                Nil

             Custom

                Basic Pet Care cost (single member)

             Personalized

                Basic Pet Care cost (when member and spouse travel)




36
APRIL 2003


Travel to New Location


Policy            It is the policy of the Department to provide members with transportation,
                  lodgings, meals and miscellaneous expenses when traveling on posting from
                  one place of duty to another place of duty.


Funding           The benefits outlined in this section are funded from the Core, Custom and
Overview          Personalized as follows:



       Benefit                   Core                  Custom                  Personalized
 Transportation             Member, Spouse         Extended Family         2nd Mode of
                             and Children                                     travel
 Meal and                   Member, Spouse         Extended Family         Nil
 Miscellaneous               and Children
 Allowance
 Lodgings                   Member, Spouse         Extended Family         Upgrades
                             and Children


Transferable      Members traveling to the new location are paid a meal and miscellaneous
Savings from      allowance and are reimbursed for actual and reasonable lodging expenses
Core to           within the prescribed/authorized rates. As such, no savings are eligible for
Personalized      transfer from the Core to the Personalized Element.

                                                                              Continued on next page




37
APRIL 2003


Travel to New Location, Continued


Selecting Mode   It remains the responsibility of the Department to determine the most
of               appropriate means of transportation for which reimbursement from Core
Transportation   applies. The method of travel must be finalized in consultation with the
                 Relocation Consultant. The following factors should be taken into account:
                    Family circumstances at time of move
                    Members reporting date to the new place of duty
                    The existence of an acceptable road network between the old and the new
                     place of duty and the weather conditions that prevail at that time.

                 Core

                 To be eligible for transportation reimbursement from Core, when a mode of
                 transportation has been selected, all family members shall travel by such
                 mode. Only in the most rare circumstance (service reasons) would a second
                 mode of transportation be approved for reimbursement from Core. These
                 exceptions are authorized by NDHQ/DCBA only and shall be pre-approved.

                 Reimbursement from Core shall be for the most cost effective mode of travel
                 when a member who elects to exercise a second mode of travel not pre-
                 authorized by NDHQ/DCBA.

                 Custom

                 Extended Family

                 Personalized

                 Second mode of travel


                                                                           Continued on next page




38
APRIL 2003


Travel to New Location, Continued


Travel Time     It is expected that trips of 500 kms or less will be completed in one calendar
                day. For trips of more than 500 kms, it is expected that an average of 500
                kms per calendar day will be traveled.


Travel by       Members authorized to travel to the new location by the following modes of
Private Motor   travel shall be paid a kilometric allowance based on the Canadian Mileage
Vehicle         Guide as follows:

                 PMV - Dept of Finance kilometric rate for passenger vehicles
                 Motorcycle - 60% Dept Finance rate kilometric rate
                 Trailer - 50% of the Dept of Finance kilometric rate

                Core

                   1st PMV, Motorcycle and Trailer

                Custom

                   2nd PMV, Motorcycle and Trailer

                Personalized

                 Any additional PMV, Motorcycle and Trailer

                                                                             Continued on next page




39
APRIL 2003


Travel to New Location, Continued


Route of Travel   Members who choose to travel in the USA when posted from one place of
                  duty in Canada to another place of duty in Canada will be reimbursed
                  transportation and traveling expenses as if travel had taken place in Canada.
                  The maximum allowable commercial lodging reimbursement shall be $85.00
                  (CAD).


PMV Passenger     When the member travels as a passenger in a private vehicle, the operator of
                  which is not eligible to claim a kilometric allowance, the member may be
                  reimbursed for actual and reasonable payments made to the operator, not
                  exceeding the kilometric allowance. In this event a receipt shall be provided
                  by the driver.


Travel to and     Members posted to and from Newfoundland (except Goose Bay) and travel
from              by PMV are authorized the following travel benefits:
Newfoundland      Posted to Newfoundland
(except Goose
Bay)
                     Kilometric allowance and applicable travel time from the member’s
                      former place of duty to North Sydney, NS
                     1 additional day travel time if sailing to Port aux Basques, NFLD on a day
                      crossing or 1 additional day travel time if sailing to Argentia
                     Kilometric allowance and applicable travel time from Port aux Basques or
                      Argentia, NFLD to the new place of duty
                     Reimbursement of all ferry charges

                  Posted from Newfoundland

                     Kilometric allowance and applicable travel time from place of duty to
                      Port aux Basques or Argentia
                     1 additional day travel time if sailing to North Sydney, NS on a day
                      crossing or 1 additional day travel time if sailing from Argentia
                     Kilometric allowance and applicable travel time from North Sydney to the
                      new place of duty
                     Reimbursement of all ferry charges

                  Notes: 1. Members posted to and from St Johns' may travel via Argentia or
                  Port aux Basques

                  2. Mileage as calculated above should also be used for Custom formula
                  calculation purposes.



40
APRIL 2003

             Continued on next page




41
APRIL 2003


Travel to New Location, Continued


Ferry and Toll   Members shall be reimbursed actual and reasonable expenses for road, ferry,
Charges          bridge, tunnel tolls and parking charges when incurred as a result of travel by
                 the most direct route. Funding for these expenses shall be determined by the
                 manner in which the kilometric allowance is funded. (i.e. any toll costs
                 incurred for the member’s second vehicle shall be from the Custom).


Commercial       Core
Transportation
                 Members are normally provided with appropriate tickets for transportation, or
                 shall be reimbursed the expenses incurred for such transportation to the new
                 location.

                 The member shall also be reimbursed reasonable local transportation costs
                 between the residence and the terminal of the commercial carrier at both the
                 old and new places of duty.

                 Commercial transportation includes air, train, bus and watercraft. It does not
                 include rental vehicle.

                 Personalized

                 Nil

                                                                             Continued on next page




42
APRIL 2003


Travel to New Location, Continued


Stop Over or   Additional travel time and costs from an authorized stop over for official
Delays         government business (en route) or delays encountered due to illness are
               reimbursable by the Department from the Core.

               Non-Authorized Stop Over
               Members authorized to travel by PMV or other non-commercial means, who
               make a stop over for personal reasons, shall not be provided with any
               additional travel time or costs resulting from such a stop. Under normal
               circumstances, a member will stay each night at a different location while
               traveling en route to their new place of duty. However, a member who
               spends two nights in one location shall be reimbursed the normal traveling
               expenses, however, the total travel time and reimbursement shall not be
               extended as a result of such a stop over.


Commercial     Members shall be reimbursed actual and reasonable commercial lodging
Lodgings       expenses incurred for the member and their dependants for each authorized
               night as follows:

               Core
                The Government Hotel Directory Standard Hotel Rate for the hotel listed
                  for that area, based upon the hotel occupancy principles, or
                Up to $85.00 per night with receipts

               Custom
                Extended Family
                Expenses in excess of $85.00 per night when the Government Directory
                  Hotel Standard Rates are not available

               Personalized
                Upgrades to Government Hotel Directory Standard Hotel Rate for the
                  hotels listed

               Note: When accommodation at other than at the Standard Rate is used, the
               maximum reimbursement from Core shall be $85.00.


                                                                           Continued on next page




43
APRIL 2003


Travel to New Location, Continued


Non-             Members who elect to stay in non-commercial and/or private lodgings shall
Commercial       be paid private accommodation allowance for each night non-
and or Private   commercial/private lodgings are occupied. This allowance is payable per
Lodgings         family unit/household and not individual family members as follows:

                 Core
                  $50 per night (receipts not required)

                 Custom
                  Nil

                 Personalized
                  Nil
                 Example: A member and spouse and two children stay with relatives one
                 night when they are en route to their new place of duty. Since no commercial
                 accommodation was occupied, the maximum payable in this case would be
                 $50/night for the entire family.

                                                                           Continued on next page




44
APRIL 2003


Travel to New Location, Continued


Hotel/Motel       The number of rooms that a member is entitled to while proceeding to the
Occupancy         new location is based on family size. The following table outlines the room
Principles        entitlement by family size:

                    Family                            Room Entitlement
                     Size
                      1                   1 room
                      2                   1 room, or;
                                          2 rooms (when one dependant who is not the spouse
                                           and who is over 18 and of the opposite sex)
                       3                  1 room
                                          2 rooms (when one child is over 12)
                       4                  2 rooms
                       5                  2 rooms
                       6                  2 rooms (when one child is under 12); or
                                          3 rooms (when all children are over 12)
                       7                  3 rooms
                       8                  3 rooms
                       9                  3 rooms (when one child under 12); or
                                          4 rooms (when all children over 12)
                       10                 4 rooms


Payment of        When one or more dependants of a member remain at the former place of
additional        duty to complete an educational term, or other justifiable reasons (e.g.
living expenses   medical), the member is entitled to receive a monthly allowance from Core.
– Dependants      Reimbursement is to offset the additional living expenses incurred by the
separated from    dependant or dependants as a result of the separation.
a member on
posting
                  This allowance is to be paid in arrears and shall not exceed the monthly rate
                  of $525.00. Part months shall be paid on a pro-rated basis.

                  The traveling expenses for the dependant who rejoins the member at the new
                  place of duty shall be reimbursed from Core in accordance with this section.

                  Note: For education purposes, educational term is defined as (1) the end of a
                  semester when a dependant is attending secondary school and (2) the end of
                  current school year when a dependant is attending college or university.


                                                                              Continued on next page



45
APRIL 2003


Travel to New Location, Continued


Meals and       Core
Miscellaneous
Expenses            Meals:

                    Member and authorized dependants are entitled to a meal allowance for
                    each day en route up to the maximum allowable travel time

                    Member and authorized dependants 12 years of age and over - full daily
                    meal rate.

                    Dependants under 12 years of age - one half daily meal rate

                    Isolated Post – meal expenses incurred at an isolated post - actual and
                    reasonable

                    Miscellaneous Expenses

                    Member and each dependant based on 12% of the full daily meal rate for
                     the member and 6% of the full daily meal rate for each dependant,
                     regardless of age.

                Custom

                    Meals

                    Extended Family (limitations same as per Core)

                    Miscellaneous Expenses

                    6% of the full daily meal rate for each Extended Family member

                Personalized

                    Nil




46
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses


Policy           It is the policy of the Department to reimburse eligible members for Interim
                 Lodgings, Meals and Miscellaneous (ILM&M) expenses while effects are
                 packed, and/or unpacked and during periods in which they are necessarily
                 separated from the household goods.


Funding          The benefits outlined in this section are funded from Core, Custom and
Overview         Personalized as shown in the table below.

                 Note: For ILM&M entitlements relating to out of Canada postings refer to
                 Addenda 2, 3, or 7.



        Benefit                 Core                  Custom                Personalized
 For each authorized    For Member and          For Extended Family     Member, authorized
 day                    authorized dependant                            dependant and
                                                                        Extended Family
 Lodging’s                 Up to 20 nights        Up to 20 nights      In excess of 20
                                                                           nights (within
                                                                           funding
                                                                           limitations)
 Meals                     Up to 15 days at       Up to 15 days at     In excess of 20
                            applicable daily        applicable daily       days at 65% of
                            meal rate               meal rate              applicable daily
                           16 to 20 days at       16 to 20 days at       meal rate (within
                            65% of                  65% of                 funding
                            applicable daily        applicable daily       limitations)
                            meal rate               meal rate
 Miscellaneous             As per meals and       As per meals and       Nil
 Expenses                   lodgings from           lodgings from
                            Core                    Custom


Responsibility   It is incumbent upon the member and the relocation consultant to maximize as
                 much as possible the incidence of door-to-door moves. Responsibility for
                 ensuring the effective use of ILM&M is three fold involving the:
                  Member;
                  The Relocation Consultant; and
                  The Commanding Officer.

                                                                            Continued on next page


47
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Benefits         Members shall be reimbursed actual and reasonable expenses within the
                 prescribed rates or provided with an allowance or both as follows:


                  Pack, Load and       Awaiting Household Goods and              Unload and
                      Clean            Effects and/or Accommodation               Unpack
                   Lodgings          Lodgings                                  Lodgings
                   Up to 3 nights     Up to 15 nights                            Up to 2 nights

                      Meals and      Meals and Miscellaneous Expenses             Meals and
                       Miscellaneou   Up to 15 days                                  Miscellaneo
                       s Expenses                                                    us Expenses
                      Up to 3 nights                                                Up to 2 days



When move is     Members on a restricted posting are normally authorized to move their
authorized       Dependants, HG&E once permanent accommodation at the new place of duty
                 has been secured.


Member’s         Members shall ensure that the move of their Dependants and Household
Responsibility   Goods and Effects (HG&E) is coordinated as closely as possible with their
                 Change of Strength (COS) date, the disposal of their old residence either
                 rented or owned and the occupancy of their new residence. Members are to
                 request a change of reporting date from their gaining unit and losing
                 COs if the change will reduce the amount of ILM&M required.


Principle for    The principle for the reimbursement of ILM&M is that expenses will
reimbursement    normally be reimbursed only for the period the member remains necessarily
                 separated from their HG&E for reasons beyond their control.

                 Members remaining in interim lodgings as a result of delays caused by the
                 Department or its contracted agents in the delivery of their HG&E, will be
                 reimbursed actual and reasonable expenses within prescribed limits for the
                 period the member is awaiting the delivery of their HG&E.

                                                                            Continued on next page




48
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Door to Door   Shipment of HG&E and the arrival of the member and dependants should be
Moves          coordinated with the availability of accommodation. The need for interim
               accommodation should be limited to 3 days at the old place of duty (pack,
               load, and clean) and 2 days at the new location (unload and unpack).

               Example: A member has sold their principal residence at origin effective 1
               August and has purchased a replacement residence effective 1 August. The
               member is authorized 3 days travel to the new location (TNL). July 29, 30,
               31 – ILM&M, August 1, 2, 3 – TNL, August 4, 5 – ILM&M. The total
               period of ILM&M is 5 days.


Consecutive    Subject to the limitations prescribed in this chapter, ILM&M is reimbursed on
Days, Leave    a consecutive day basis before and after the Travel to the New Location.
and Leave en   Reimbursement is either commercial or non-commercial rates based on where
route          the member stayed.

               Conditions and Limitations:

               Extending ILM&M

                  not incurring commercial lodgings does not extend the period of ILM&M
                   (affects the amount payable).

               Location of ILM&M

                  there is no restriction on where ILM&M expenses occur or whether
                   member is on annual leave or not when:
                       accommodation has been secured;
                       the occupancy date determined; and
                       HG&E have been shipped for arrival on the expected occupancy date.

               However, lodging expenses shall not exceed what would have been
               authorized at the new place of duty.

                  ILM&M expenses are not paid from Core beyond the earliest day that the
                   HG&E could have been delivered to the residence had the member
                   proceeded directly to his place of duty when leave is taken en route.

                                                                         Continued on next page




49
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Lifting of        Members on a restricted posting who have not secured permanent
Restriction at    accommodation at the new location prior to the COS date may move
Member’s          Dependants and HG&E. However, members must sign a statement
request – 20      acknowledging that the restriction is removed at their personal request and
Day Waiver        that reimbursement of ILM&M will not, under any circumstances; exceed 20
                  days Meals and 20 days Lodgings and Miscellaneous Expenses from Core.

                  Notwithstanding that a member has signed the 20 day waiver, it remains their
                  responsibility to secure a replacement residence at the earliest opportunity.
                  Therefore, ILM&M shall be limited to the number of days awaiting delivery
                  of HG&E when suitable accommodation becomes available within 20 days
                  but not in excess of a total of 20 days.

                  Note: This policy does not apply to member without dependants or SC.


Preparation       ILM&M expenses are normally paid for up to 3 days (if required) at the
and Delivery of   commencement and up to 2 days (if required) at the end of the move. These
HG&E              living expenses are intended to cover those expenses incurred while a
                  member’s HG&E is packed and loaded or unpacked and unloaded.

                  Meals are payable during the unpack day regardless of whether or not the
                  movers or the transferee do the actual unpacking.

                  Note: The HGRS contract provides for the set up of all beds, however,
                  commercial lodgings may be required if unpack has not occurred.


                                                                             Continued on next page




50
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Request to       It is the member’s responsibility to request a change in reporting date when
Change           such a change will result in reduced ILM&M and/or facilitate a door-to-door
Reporting Date   move. Subject to the agreement between the members gaining and losing
                 Commanding Officers, the reporting date may be advanced or delayed up to
                 30 days.

                 Example: A member is posted from Ottawa to Toronto with a COS date of
                 15 July. The member sold his home in Ottawa with a closing date of 1 July
                 and proceeds on an HHT. He is successful and he purchases a home with a
                 possession date of 1 July. In this case, it is the responsibility of the member
                 to request a change of reporting date to 1 July so that ILM&M will be
                 reduced.

                 Warning! - Failure to request a change in reporting date may result in
                 limited reimbursement of ILM&M expenditures.


Additional       In exceptional cases, 1 or 2 days of additional ILM&M may be authorized by
Pack, Load and   the Relocation Consultant at the beginning of the move for such things as
Clean Days       cleaning/inspection of the accommodation being vacated. Expenses for any
                 authorized ILM&M days shall be paid from the Core.

                                                                               Continued on next page




51
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Childcare    Members with dependant children under 12 years of age may be assisted with
             childcare costs from Core for the Pack and Load days at the old place of duty
             and the Unpack and Unload days at the new place of duty.

             Core
             Members shall be paid or reimbursed from Core for childcare costs additional
             to any existing childcare arrangements, based on a maximum per day
             whether applicable to one child or more, as follows:

                An allowance of $35 day for a friend, relative, nannies or housekeepers
                 (receipts not required); or

                Up to $75/day for:

             - Individuals who provide childcare as a regular source of income and do not
             reside with the family (receipts or declaration required); or
             - A bonded sitter provided by a company in the business of providing child-
             care services (receipt or declaration required).

             Custom .
              Specialized childcare costs in excess of daily maximum rate

             Personalized
              Nil


             Continued on next page




52
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Commercial   Members shall be reimbursed actual and reasonable commercial lodging
Lodgings     expenses incurred for the member and their dependants for each night based
             on the Hotel occupancy principles specified in the Travel to New Location
             Section of this Directive as follows:

             Core
              Up to 20 nights (Member and dependants)
              The Government Hotel Directory Standard Hotel Rate for the hotel listed
                for that area based on hotel occupancy principles found in the Travel to
                New Location section.

             Custom
                Up to 20 nights (Extended Family)
                The Government Hotel Directory standard hotel rate for the hotel listed
                for that area based on hotel occupancy principles found in the Travel to
                New Location section.

             Personalized
              Upgrades to the Government Hotel Directory Standard Rate
                 Expenses incurred for extra nights beyond Core and Custom entitlement

             Example: A member, spouse and two children stay in a one-bedroom suite
              that costs $185/night. Based on the occupancy principals, this family is
              entitled to two rooms and the standard hotel rate for the hotel is
              $70/night/room. Therefore, reimbursement from Core shall be ($70/night x
              2 rooms = $140) and from Personalized ($185 - $140 = $45)

                                                                       Continued on next page




53
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Non-             Members who elect to stay in non-commercial and/or private lodgings shall
Commercial       be paid private accommodation allowance for each night non-
and/or Private   commercial/private lodgings are occupied. Members who stay in there own
Lodgings         home are not entitled to this allowance. This allowance is payable per family
                 unit/household and not individual family members as follows:

                 Core

                    $50 per night/family - up to the maximum entitlement of 20 days

                 Custom

                    Nil

                 Personalized

                    $50 per night/family - Unlimited extra nights beyond Core entitlement

                 Example: A member and spouse and two children stay with relatives one
                 night when they are awaiting occupancy of their new construction. Since no
                 commercial accommodation was occupied, the maximum payable in this case
                 would be $50/night for the entire family.

                                                                            Continued on next page




54
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Meal           Interim meals are meals consumed while on interim lodgings status and
Entitlements   include:

                  Three meals if taken prior to departure from the old place of duty on the
                   day of departure; or
                  Three meals if taken subsequent to arrival at the new place of duty on the
                   day of arrival

               Members entitled to interim meal expenses shall be reimbursed the rate
               applicable to a full calendar day.

               Members shall be paid a meal allowance for each day the member is in
               interim accommodation.

                  Core

               Maximum of 15 days - as per Treasury Board Meal Rate Table.

               Beyond 15 days to a maximum of 20 days - 65% of the daily meal rate per
               authorized family member as per Treasury Board Meal Rate Table.

                  Custom

               Meal allowances for Extended Family only

               First 15 days – as per Treasury Board Meal Rate Table.
               Beyond 15 days to a maximum of 20 days - 65% of the daily meal rate per
               authorized family member as per Treasury Board Meal Rate Table.

                  Personalized only

               Unlimited number of days for member/authorized dependant/Extended
               Family - 65% of the daily meal rate per authorized family member as per
               Treasury Board Meal Rate Table


                                                                           Continued on next page




55
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Meals in Excess   In exceptional circumstances, members may be reimbursed additional meal
of 15 days -      expenses at the prescribed rates from Core up to 20 days when:
unreduced
                     There is no suitable accommodation with cooking facilities adequate for
                      the preparation of normal meals located within the geographical boundary
                      of the new place of duty
                     Although commercial accommodation with adequate cooking facilities
                      exists within the geographical boundary of the new place of duty it is
                      confirmed by the Relocation Consultants that the member was unable to
                      secure/reserve such accommodation on or before the 15th day of interim
                      accommodation.

                  Note: The minimum acceptable standard of adequate cooking facility is a
                  two-burner hotplate, refrigerator and a microwave oven.

                  A member is expected to seek out and occupy self-contained interim
                  accommodation as soon as possible on arrival at the new place of duty
                  Especially when there is a known period of ILM&M beyond 15 days. Under
                  no circumstances will meals be reimbursed beyond 15 days at the full meal
                  rate unless the member can provide evidence supporting all attempts to secure
                  accommodation with cooking facilities.


                                                                            Continued on next page




56
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Lodgings and    It remains the responsibility of the member to keep ILM & M expenses to a
Miscellaneous   minimum:
Expenses
                Core:

                In exceptional circumstances, members may be reimbursed lodging and
                incidental expenses within the prescribed limits for any days in excess of 20
                days when:

                   The member remains necessarily separated from their HG and E for
                    reasons beyond their control; or

                     Permanent accommodation has not been obtained/occupied and suitable
                    alternate accommodation is not available

                Examples:
                 The household effects were not available for delivery to the new residence
                   because of shipment delays resulting from the moving company.
                 A member who was denied a change in reporting date when such a
                   change would have resulted in ILM&M being reduced to 20 days or less.

                Custom

                   Nil

                Personalized

                   Members may be reimbursed lodging expenses when such expenses are
                    not reimbursed under the Core (i.e. awaiting a constructed home, specific
                    PMQ, resale property, or specific apartment). Miscellaneous Expenses
                    shall not be reimbursed from Personalized.



                                                                            Continued on next page




57
APRIL 2003


Interim Lodgings, Meals and Miscellaneous Expenses,
Continued



Combined        Where a family occupies both commercial and non-commercial/private
Commercial      lodgings, reimbursement will not exceed the commercial rate that would have
and Non         been incurred. Receipts are not required for non-commercial
Commercial      accommodations.
Lodgings
                Example: A member and spouse stay at a hotel while their 2 children stay
                with the grandparents. In this case the family would have been entitled to 2
                rooms. Reimbursement will be for the hotel charge and the non commercial
                rate; or

                A member and spouse remain at a hotel while their 10-year-old child stays
                with grandparents. This family would have been entitled to one room in a
                hotel. Reimbursement will be for the hotel cost – the non-commercial
                allowance shall not be paid.


Miscellaneous   The member shall receive a Miscellaneous Allowance for each day meal
Expenses        expenses are paid from Core. The allowance is payable to the member and to
                each dependant and is based on 12% of the full daily meal rate for the
                member and 6% of the full daily meal rate for each dependant, regardless of
                age.


Members         Members without Dependants who are moving into either rented or purchased
without         accommodation at the new location are not required to occupy government
Dependants      quarters for any periods of interim accommodation. Those members who
                move into single quarters shall occupy such quarters upon arrival at the new
                place of duty if available.




58
APRIL 2003


Rental Accommodation


Policy             It is the policy of the Department to assist members in the disposal and
                   acquisition of a principal residence, whether rented or owned.


Funding            The benefits outlined in this section are funded from the Core, Custom and
Overview           Personalized elements as follows:



         Benefit                   Core                  Custom                Personalized
 Rent or Lease               Up to 3 months         Nil                     Over 3 months
 Liability                    rent                                             when not
                             More than 3                                      required by law
                              months when
                              required by law
 Rent in Advance of          1 month rent           Additional              If no Custom
 Move                                                 months                   Funds available
 Rental Agency               Actual expenses        Additional Costs        Nil
 Finding Fees                 at pre-negotiated
                              rates
 Professional                Up to $100             Expenses over           Additional
 Cleaning                                             $100(when                Expenses
                                                      required by lease)


Member             Members are responsible to try and obtain a lease with terms that are
Responsibility     reasonable and flexible so as to minimize any potential cost to the
                   Department. To this end, members should:
                           Advise prospective landlords that CF policy will not normally
                              reimburse members more than one month’s rent to hold
                              accommodation or three months rent to terminate a lease.
                           Negotiate a lease for a maximum of one or two years.
                           Include a provision allowing for termination of the lease on one
                              month’s notice, or, upon payment of one month’s rent if notice
                              cannot be given.
                   Avoid any clause, which restricts the member’s entitlement to sub-let the
                   accommodation at the member’s and not the landlord’s discretion.

                                                                               Continued on next page




59
APRIL 2003


Rental Accommodation, Continued
Rent or Lease   Core
Liability
                   Members who incur rent or lease liability in order to dispose of rented
                    accommodation may be reimbursed an amount up to the equivalent of
                    three months rent.
                   In exceptional circumstances and only when required by law may a
                    member be reimbursed an amount exceeding three months rent.
                    However, in such cases, alternative arrangements should be explored to
                    determine if a less costly settlement could be arranged. All findings and
                    recommendations shall be forwarded to DCBA for consideration.
                    Reimbursement shall be paid on a monthly basis for those months that the
                    residence actually remains vacant.


                Note: There is no entitlement to reimbursement for rent or lease liability that
                results from property damage attributed to the member. This includes any
                property damage that occurs as a result of the rental accommodation being
                sublet.
                Custom
                 Nil
                Personalized
                 Exceeding 3 months when not required by law



Professional    Proof of payment for the services will be required.
Cleaning -
Disposed or     Core
Acquired
Rented and      Actual and reasonable expenses incurred to clean a rental residence up to a
Owned
                maximum of $100.00 (taxes included). Cleaning expenses may be incurred
Residence
                on both the old and new residence; however, reimbursement shall not exceed
                $100 in total.

                Custom

                Expenses in excess of $100.00 when service is specified within lease
                agreement.

                Personalized

                Expenses in excess of $100.00.




60
APRIL 2003

             Continued on next page




61
APRIL 2003


Rental Accommodation, Continued


Rent in      Rent in advance of a move is intended to assist those members who are
Advance of   paying two sets of accommodation charges as a result of having to secure
Move         accommodation before they have vacated their old residence. A member
             required to pay rent in order to hold accommodation at the new place of duty
             before vacating the accommodation at the previous place of duty may be
             reimbursed as follows:

             Core
              One month’s rent. Reimbursement commences the first day of the lease at
                the new place of duty and ceases the date the member vacates the
                residence at the former place of duty
              Utility charges when not included as part of monthly rental fee.

             Custom
              Expenses beyond one month.

             Personalized
              When all Custom funds have been expended

             Note: A member must repay any rent in advance paid from Core or Custom
             when that member originally moved in as a renter, then subsequently
             purchased, and is reimbursed legal fees and associated costs under this
             Directive

                                                                       Continued on next page




62
APRIL 2003


Rental Accommodation, Continued


Rental Agency   Members may be reimbursed actual and reasonable expenses for rental
Finding Fees    finding services provided by professional firms at the pre-negotiated
                corporate rates.
                Members posted to locations in Canada where established rates have not been
                negotiated shall be reimbursed an amount up to the pre-negotiated corporate
                rates
                Core
                A member is entitled to one rental search assistance not to exceed two days
                that may be funded from Core.
                Custom
                Additional Costs
                Note:
                A member shall repay any Rental Agency Finding Fees paid from Core or
                Custom when that member originally moved in as a renter, then subsequently
                purchased, and is reimbursed legal fees and associated costs under this
                Directive. However, when a member engages the services of a rental agency
                to locate rental accommodation during the HHT and being unable to obtain a
                suitable rental accommodation, decides to purchase, Rental Agency Fees shall
                not be recovered and the member shall be entitled to legal fees and associated
                costs




63
APRIL 2003


Sale of Principal Residence


Policy             It is the policy of the Department to enhance a member’s mobility by
                   assisting in the disposal of a principal residence when posted.


Funding            The benefits outlined in this section are funded from the Core, Custom and
Overview           Personalized elements as follows:

         Benefit                     Core                       Custom               Personalized
 Real Estate                   Established Rates        Nil                       Nil
 Commission
 Legal Fees and                Established Rates        Nil                       Nil
 Disbursements
 Appraisal Fees                One Professional         Additional              If no Custom Funds
                                Appraisal                 Appraisals               remain
 Mortgage Breaking             Member does not          Nil                     Porting was
 Penalties                      buy or cannot buy                                    option
                               Up to 3 months                                    Up to 3 months
                                interest or $5K                                      interest or 5 K
                                whichever is less                                    whichever is less
 Attending Fees/Power          Due to Operational       Nil                     Other than
 of Attorney                    requirements                                         operational
                                                                                     requirements
 Temporary Dual                6 months                 Additional months       If no Custom
 Residence Assistance                                                                Funds remain
 (TDRA)
 Structural Inspection         Nil                      To effect sale            If no Custom
                                                                                     Funds remain
 Property Management           Nil                      Nil                       Established Rates
 Home Equity                   80% of loss              Any remaining loss        If no Custom
 Assistance                    Up to $15K                                           Funds remain
 Marketing Incentives          Nil                      To effect sale            If no Custom
                                                                                     Funds remain
 Capital Improvement           Nil                      Described within          If no Custom
                                                                                     Funds remain
 Professional Cleaning         Up to $100               Nil                       Additional
                                                                                     Expenses
 Return Trip to Finalize       Up to 2 days travel      Nil                       Nil
 Sale

                                                                               Continued on next page




64
APRIL 2003


Sale of Principal Residence, Continued


Limitations   Time Limit on Sale: Members may claim the benefits in this directive
              provided that the residence is sold within the later of than two years after:
                        The change of strength (COS) date; or
                        The date the member occupies replacement residence at the new
                         place of duty.




              Occupancy Requirements: There is no entitlement under this directive for
              the reimbursement of expenses unless the member, his/her dependants or
              both, immediately prior to official notification of the posting, occupied the
              residence (as defined by Canada Customs and Revenue Agency).


              Lots and Lot Size: The reimbursement of expenses in this directive is limited
              to a lot size of not more than 1.25 acres or, where required by zoning laws, a
              lot size of not more than 4 acres. As such, if additional land or acreage is
              sold, the member shall be reimbursed only for that portion of costs, which
              would have been reimbursed within the above limitations.


              Income Property: Members who sell an income-producing property (such as
              a duplex, triplex, multiple unit building, small store or confectionery) which
              is also the member’s residence shall only claim expenses for that part of the
              building that they use as their principal residence.


              Co-Ownership: Where the principal residence is co-owned by a person(s)
              who is not a spouse or dependant of the member, only that portion of the
              expenses directly proportional to the member’s legal share of the property
              shall be reimbursed.

                                                                            Continued on next page




65
APRIL 2003


Sale of Principal Residence, Continued


Transferable   Members can increase the value of the Personalized Funding element by not
Savings from   selling their principal residence when posted. This is to recognize the
Core to        additional savings that can accrue to the Crown as a result of not incurring
Personalized   real estate commission.

               Do Not Sell Principal Residence

               Members who decide not to sell their principal residence shall receive 80% of
               real estate commission otherwise payable on the appraised value as
               established with the Relocation Counselor. This amount of savings, capped at
               $12,000, is transferred to the Personalized Funding Element.

               Members taking this credit must sign a waiver foregoing any future
               reimbursement by the Crown of real estate fees, legal fees or other related
               disposal costs for the property in question. However, should the member
               chose to re-occupy this residence on a subsequent posting, the Crown would
               once again recognize this residence as a principal residence should further
               relocations occur after re-occupancy.

               Property Management Fees: A member who elects this incentive remains
               entitled to the reimbursement of Property Management Fees under the
               Personalized Funding Element limited to $1000.00 per year when posted
               within Canada. Members who relocate Overseas and outside Canada remain
               entitled to the reimbursement of Property Management Fees under the
               Personalized Funding Element limited only by available funding. Finder’s
               fees are limited to one month’s rent, reimbursed once from the Personalized
               Funding Element.


Mobile Homes   Members who sell mobile homes are entitled to the same benefits and subject
               to the same conditions and limitations that apply to any other type of
               dwelling. There is no entitlement to relocate or store a mobile home.

                                                                          Continued on next page




66
APRIL 2003


Sale of Principal Residence, Continued


Real Estate   Members shall be reimbursed real estate commissions under Core not
Commission    exceeding the pre-negotiated Corporate rates.


Legal Fees    Members may be reimbursed from Core associated legal fees and
              disbursements, including applicable taxes, necessarily incurred to complete
              the sale of the property.

              Members may be reimbursed other expenses of a legal nature necessarily
              incurred to obtain clear title to a property including:
                 Land survey costs if the member’s lawyer or notary certifies that:
                  - The last survey is more than 5 years old
                  - There have been observable changes to the lot since the last survey
                  - The seller is required by law to provide a survey

              Charges levied by the lender for the disposal of a first or second mortgage on
              the property, but not both. Expenses are only payable from Core when the
              associated mortgage breaking penalties are Core. If the mortgage breaking
              penalties are Custom, the charges shall also be Custom.


                                                                          Continued on next page




67
APRIL 2003


Sale of Principal Residence, Continued


Appraisal Fees   The purpose is to further assist members in establishing market value to
                 facilitate disposal and to establish a home value for funding purposes.

                 Core

                  One professional appraisal not exceeding the pre-negotiated rates.
                 The appraisal shall not be based on a 90 day marketing period but rather, shall
                 reflect the typical turnover period for properties of the type being appraised in
                 a given sector or community.

                 Custom
                  Any additional appraisals requested by the member

                 The Departmental Authority shall order an appraisal when there is a
                 requirement to establish equity for the purposes of a home equity assistance
                 request. This appraisal is a Core reimbursement.

                 Personalized

                  When all Custom Funds have been expended.


Mortgage         Members shall be reimbursed a mortgage early repayment penalty up to an
Breaking         amount not exceeding 3 months interest, or $5,000, whichever is the lesser.
Penalties
                 Core
                  Members purchasing at the new location who cannot port mortgage.
                    See Note
                  Members not purchasing at the new location.

                 Custom
                  Nil

                 Personalized
                  Members purchasing at the new location when porting was an option.

                 Note: Members are cautioned when purchasing at new location and unable to
                 port due to the extended period of time between the sale of the principal
                 residence and purchase of the replacement residence, reimbursements shall
                 only be authorized from the Personalized component.




68
APRIL 2003

             Continued on next page




69
APRIL 2003


Sale of Principal Residence, Continued


Attending Fees   Members are expected to be present at the closing of their sale transaction.
or Power of      As such, reimbursement for the preparation of a Power of Attorney or
Attorney         attending fees will only be authorized in situations where the member cannot
                 be present for the closing of the sale transaction of their principal residence
                 due to unforeseen operational requirements. In this case, reimbursement shall
                 be from the Core Funding Element. In all other circumstances reimbursement
                 shall be limited to the Personalized Funding Element

                 Note: All efforts should be made to courier documents /material between
                 legal firms only as a last resort, should the member return to finalize the sale.


                                                                               Continued on next page




70
APRIL 2003


Sale of Principal Residence, Continued


Temporary        Members may be reimbursed actual and reasonable expenses related to their
Dual Residence   unsold principal residence, provided the residence remains unoccupied and is
Assistance       continuously and actively marketed.
(TDRA)
                 Core

                    6 months

                 Custom


                    Additional expenses above funds received from Core.

                 Personalized

                    When all Custom Funds have been expended

                 TDRA is meant to offset costs associated with dual residency for expenses
                 such as:


                           Interest charges on a first mortgage (or on a second mortgage if
                            there are no charges on a first mortgage)
                           Taxes (i.e. Property, School)
                           Utilities
                           Property maintenance (such as lawn cutting, snow removal, and
                            minor maintenance)
                           Additional insurance
                           Rental of a mobile home pad

                 Warning: Should the member subsequently decide not to sell and receive the
                 80% incentive for not selling, all TDRA expenses previously paid shall be
                 recovered.

                                                                            Continued on next page




71
APRIL 2003


Sale of Principal Residence, Continued


Structural       Custom
Inspection
                 Members may be reimbursed expenses for a structural inspection when it is
                 necessary to realize a sale of the property and the purchaser is not a Federal
                 government employee. The negotiation with home inspectors for both level
                 of service and fee is the responsibility of the relocation contractor.

                 Personalized

                 When all Custom Funds are expended


Property         Members may be reimbursed Property Management Fees from the
Management       Personalized Component when the 80% of the REC Incentive has been
Fees             accepted in lieu of the entitlement of the sale.


Return Trip to   Core
Finalize Sale
                 Members who qualify for TDRA and who subsequently sell their former
                 residence may, in exceptional circumstances, be authorized to return
                 unaccompanied, by the most economical means, to their previous place of
                 duty on annual leave to finalize the sale. They may be reimbursed up to two
                 days traveling and transportation expenses for the return journey.

                 Members must clearly demonstrate that all avenues, such as to courier
                 documents/materials between legal firms, have been exhausted and that the
                 sale could not be completed by a Power of Attorney.

                                                                              Continued on next page




72
APRIL 2003


Sale of Principal Residence, Continued


Home Equity   Members who sell their home at a loss may be reimbursed up to 100% of the
Assistance    difference between the original purchase price and the sale price.

              Capital improvements shall not be included in the calculation of HEA,
              however, may be claimed separately from the Custom Funding Element.

              Core

              Members shall be reimbursed 80% of all losses up to a maximum of $15K

              Custom

              Members may claim any remaining losses by using any available funds

              Warning – Properties selling for less than 95% of the appraised value
              require DCBA approval prior to qualifying for this benefit.

              Note: DEFERRED MAINTENANCE: Any reductions of the purchase
              price based upon deferred maintenance shall not be included when
              calculating HEA.

              Example: Routine inspection of member’s residence reveals that furnace
              must be replaced. In such cases, if the member in lieu of replacing the
              furnace at this own cost reduces the asking price of the residence, such
              reduction will not qualify as Home Equity Assistance.

              Note: The original purchase price for new home construction consists of the
              following:

                 Costs identified in the Building Agreement;
                 Costs for initial landscaping which occurs within one year of occupancy
                  (when not identified in the Building Agreement).

              Personalized

              When all Custom Funds have been expended


                                                                        Continued on next page




73
APRIL 2003


Sale of Principal Residence, Continued


Capital        Custom
Improvement    Members may be reimbursed for capital improvements utilizing funds from
               Custom. Capital Improvements shall be reimbursed when the member
               actually incurs a loss on the sale of their home after eligible capital
               improvements have been included in the adjusted purchase price. Original
               receipts are required for all Capital Improvements.

               Example: Purchase cost is $100,000. Capital Improvements are $10,000.
               Sale price is $100,000. In this example, the member would not qualify for
               Home Equity Assistance, however, since the loss is based on the adjusted
               purchase price including capital improvements, the member would be able to
               claim $10,000. However, if the purchase price was $90,000 and the sale price
               was $100,000, there would be no loss on the sale of the home and therefore,
               the member could not claim any Capital Improvements.

               Note: Capital improvements are based from when a member takes possession
               to the point of sale of the residence. Improvements that take place between
               that period are not considered as part of the original purchase price.

               Personalized

               When all Custom Funds have been expended



Professional   Members may be reimbursed actual and reasonable expenses for the cost of
Cleaning       professional cleaning of the former residence, once the household effects have
               been loaded, or at the new location prior to occupying the residence. Proof of
               payment for the services will be required

               Core

                Up to a maximum of $100.00 (taxes included).

               Custom

                Nil.

               Personalized

                Additional Expenses



74
APRIL 2003

             Continued on next page




75
APRIL 2003


Sale of Principal Residence, Continued


Marketing    Members may be reimbursed, through Custom, reasonable marketing
Incentives   incentive expenses as recognized by Canada Customs and Revenue Agency
             such as:

                decoration bonuses,
                early closing bonuses,
                mortgage interest buy down,
                prepaid condo fees/property taxes

             If, on the advice of the contracted Relocation Consultant, they are necessary
             to realize the sale of the property.

             Note: All marketing incentives must be clearly identified on the original or
             amended Property Listing Agreement and the Offer to Purchase.

             Personalized

             When all Custom Funds have been expended.




76
APRIL 2003


Purchase of Replacement Residence


Policy          It is the policy of the Department to enhance a member’s mobility by
                assisting in the acquisition of a principal residence at the new location.


Ineligibility   Members under the following circumstances are not eligible for the benefits
                outlined in this section:
                 posted outside Canada,
                 posted within Canada when the move of Household Goods and Effects are
                    prohibited,
                 posted for less than one year; and
                 relocated for release purposes.

                                                                              Continued on next page




77
APRIL 2003


Purchase of Replacement Residence, Continued


Funding          The benefits outlined in this section are funded from Core, Custom and
Overview         Personalized as follows:


       Benefit                     Core               Custom                Personalized
Reverse TDRA                 Up to one           Additional             If no Custom
                              month                months                  Funds remain
Legal Fees and               Established         Nil                    Nil
Disbursements                 Rates
Structural Inspection        1st Inspection      2nd Inspection         If no Custom
                              Established         Additional              Funds remain
                              Rates                Specialized
                             Specialized          Inspections
                              Inspections
Attending Fees/Power         Unforeseen          Nil                    Outside
of Attorney                   Operational                                  limitations
                              Commitments
Mortgage Interest            Up to               Nil                    When porting
Differential                  remaining term                               was an option
                              (5 year
                              maximum)
                             Up to $5,000
Mortgage Default             Unable to port      As per limitations     Elects not to port
Insurance
Interim Bridge               Residence sold      Residence unsold       If no Custom
Financing                                                                  Funds remain
Second Mortgages             Nil                 Residence unsold       If no Custom
                                                                           Funds remain
Interest on Short Term       Minimum             Nil                    Nil
Loan                          expenses to
                              hold for
                              purchase
Interest on $25,000          Nil                 Loan not to            If no Custom
Home Relocation Loan                               exceed $25,000          Funds remain

Mortgage Interest Buy-       Nil                 Nil                    As required
down
Professional Cleaning        Up to $100          Nil                    Additional
of new residence                                                           Expenses

                                                                           Continued on next page



78
APRIL 2003


Purchase of Replacement Residence, Continued


Limitations   Time Limit on Purchase: Members may claim the benefits in this directive
              provided that the replacement residence is purchased at the new location not
              more than one year before or two years after:
                      The change of strength (COS)/departure date; or
                      The date the original accommodation at the new location is
                         available for occupancy, whichever is later.

              Members are to be cautioned that should additional expenses be incurred as a
              result an extended period of time lapsing on the purchase of a replacement
              residence (e.g. mortgage breaking fees as a result of an inability to port
              previous mortgage), reimbursements shall only be made from the
              Personalized component.



              Occupancy Requirements: There is no entitlement under this directive until
              the member or the member’s dependants actually move into the new home. If
              the member or the member’s dependants do not occupy the home for a period
              of one year (other than as a result of service requirements), no benefits are
              payable and recovery action (if required) will be initiated.


              Lots and Lot Size: The benefits in this directive apply equally to the
              purchase of a lot on which a principal residence will be situated.

              The reimbursement of expenses in this directive is limited to a lot size of not
              more than 1.25 acres / ½ hectare or, where required by zoning laws, a lot size
              of not more than 4 acres / 2.47 hectares.

              Of note, if additional land or acreage is purchased (on either a new
              construction or re-sale home), the member shall be reimbursed only for that
              portion of costs, which would have been reimbursed within the above
              limitations.


                                                                          Continued on next page




79
APRIL 2003


Purchase of Replacement Residence, Continued


Limitations   Postings for One Year or less: The benefits outlined in this directive are not
(continued)   payable to members posted for a tour of duty or course of instruction one year
              or less. However, these benefits are payable if:

               the appropriate posting authority verifies in writing that the member should
                remain at the same place of duty immediately following the original tour of
                duty for a further period of more than one year; or

               Members are subsequently posted to a new place of duty within the
                geographical area on completion of course.

              Members shall retain the entitlement to purchase a replacement residence and
              are eligible to all associated benefits related to the Core, Custom and
              Personalized components of this directive.


              Co-Ownership: Where the dwelling is co-owned by a person(s) who is not a
              spouse or dependant of the member, only that portion of the expenses directly
              proportional to the member’s legal share of the property shall be reimbursed.

              The member must disclose the percentage of ownership when completing
              necessary participation agreement with the Contractor.




              Income Properties: Members who purchase an income-producing property
              (such as a duplex, triplex, multiple unit building, small store or confectionery)
              which is also the member’s residence shall only claim expenses for that part
              of the building that they use as their principal residence.


              Members relocated for release purposes: The move for release purposes is
              a temporary one that is provided pending the election and move to IPR. As
              such, members being relocated for release purposes are not entitled to
              purchase a replacement residence at the location of release.

                                                                           Continued on next page




80
APRIL 2003


Purchase of Replacement Residence, Continued


Limitations   Purchase After Move: Only one type of assistance is payable for acquiring
(continued)   accommodation at the new location whether rented or purchased. A member
              may be reimbursed expenses incurred to rent a dwelling (e.g. rental
              assistance) or expenses incurred to purchase a home, but not both.
              A member who was originally moved into rental accommodation at the new
              location is entitled to the benefits of legal fees on purchase within the
              established time limits. However, the reimbursement of legal fees shall be
              abated by any amount reimbursed for Rent in Advance of Move and Rental
              Agency Finding Fees.

              Continued on next page




81
APRIL 2003


Purchase of Replacement Residence, Continued


New Home          Members who construct a principal residence at the new place of duty shall
Construction      be reimbursed those expenses related to the purchase of the land and the
                  construction of the home, which would have been reimbursed if a home were
                  purchased on the market. GST, PST or HST and new Home Warranties are
                  NOT reimbursable.



Non Admissible    Payments on closing such as adjustments for utilities, municipal taxes, or any
Expenses          other costs not essential to the establishment of clear title are not
                  reimbursable.
                  The Goods and Services Tax (GST) on newly built homes is not
                  reimbursable, as it replaces taxes that were formerly included in the purchase
                  price (i.e. It is considered part of the purchase price). New Home Warranties
                  are not reimbursable.


Loss of Deposit   Members who lose a deposit when buying a home because they fail to fulfill
                  the purchase agreement, for other than service reasons, are not entitled to
                  reimbursement for the loss of that deposit.


Mobile Homes      Members who purchase a mobile home are entitled to the same benefits as
                  outlined in this directive and are subject to the same limitations that apply to
                  any other type of residence.

                                                                                Continued on next page




82
APRIL 2003


Purchase of Replacement Residence, Continued


Reverse TDRA   Where a member is required to take possession of a purchased replacement
               residence prior to COS date and the reporting or COS dates cannot be
               changed to meet the possession date, members may be reimbursed TDRA
               expenses as follows:

               Core
                One month

               Custom
                Expenses incurred beyond one month

               Personalized
                When all Custom Funds have been expended


                                                                        Continued on next page




83
APRIL 2003


Purchase of Replacement Residence, Continued


Legal Fees and   Core
Disbursements
                 Members may be reimbursed from Core Corporate rates for legal fees and the
                 established rates for associated disbursements, including applicable taxes,
                 necessarily incurred to complete the purchase of the property.

                 Members may be reimbursed other expenses of a legal nature necessarily
                 incurred to obtain clear title to a property such as:

                          Sheriff’s fees
                          Land Transfer Tax/Welcome Tax
                          Deed transfer charges
                          Survey costs or Title Insurance Premium (both cannot be claimed
                           unless both deemed necessary to obtain clear title)
                          Certificate of execution
                          Attending fees
                          Appraisal fees necessarily incurred at the request of the lender to
                           obtain a first or second mortgage-only if the appraisals conducted
                           under Core are not acceptable by the lender.

                 Custom

                    Nil

                 Personalized

                    Nil

                                                                                Continued on next page




84
APRIL 2003


Purchase of Replacement Residence, Continued


Structural   Members who submit an offer to purchase shall be reimbursed actual and
Inspection   reasonable costs associated with the structural inspection on the residence as
             follows:

             Core
              1st structural inspection at pre-negotiated corporate rates
              Follow up specialized inspections related to the 1st building inspection
             - Only when recommended by the building inspector and the Contractor (e.g.
             termite inspection for properties located in identified areas, inspection of the
             well, water potability septic system when the property is serviced by well
             and/or septic.
              Cannot be under warranty at the time of possession

             Custom
              2nd structural inspection on the same residence and any additional
                inspections that are not payable under Core

             Personalized
                 When all Custom Funds have been expended

                                                                          Continued on next page




85
APRIL 2003


Purchase of Replacement Residence, Continued


Attending Fees   Members are to ensure their presence at the closing of the purchase
and Power of     transaction. When this is not possible, all efforts shall be made to courier
Attorney         documents and/or material between legal firms. When this is not possible and
                 only as a last resort, providing there is a legal requirement for the member’s
                 presence and the member cannot attend due to unforeseen operational
                 commitments will the following actual and reasonable expenses be
                 reimbursed as follows:

                 Core

                    Attending Fees
                    Power of Attorney

                 Note: CO to personally certify that the member could not attend the closing of
                 the purchase transaction due to unforeseen operational commitments

                 Custom

                    Nil

                 Personalized

                    Expenses not covered under Core

                                                                            Continued on next page




86
APRIL 2003


Purchase of Replacement Residence, Continued


Mortgage       When a member’s interest rate on their first mortgage at the new location is
Interest       higher than the interest rate on the mortgage at the former place of duty, the
Differential   member shall be reimbursed as follows:

               Core
                Members purchasing at the new location who cannot port mortgage

               Custom
                Nil

               Personalized
                   Members purchasing at the new location who could port

               Calculation
                 The difference in the interest charges between the two mortgages
                 Calculation shall be based on the outstanding mortgage and the
                   remaining term of the mortgage at the former place of duty not exceeding
                   5 years
                Reimbursement shall not exceed $5,000
                If the new mortgage principal is for a lesser amount than the previous
                  mortgage principal, that lower principal will be used to calculate the
                  differential.

                                                                            Continued on next page




87
APRIL 2003


Purchase of Replacement Residence, Continued


Mortgage
Default         The law requires Mortgage Default Insurance (MDI) when the mortgage is
Insurance       more than 75% of the purchase price of the new residence. Members may be
(MDI)           reimbursed actual and reasonable MDI expenses paid to an insurer (e.g.
                CMHC, GE Capital, or their financial institution). This reimbursement may
                include Administration Fees.


                Core

                      Members who were prohibited from porting their mortgage from old
                       place of duty. (e.g. Members posted outside Canada and therefore
                       could not port.)

                Custom

                      Members in circumstances where they have no MDI to port (other
                       than as provided in Core) or members who port, yet incur additional
                       costs as a result of increased MDI requirements (other than provided
                       in Personalized).

                Personalized

                      Member chooses not to port previous mortgage.
                      Member does not transfer entire equity from Sale

                There are no restrictions regarding whether the premium is to be paid to
                the insurer in one lump sum or amortized over the life of the mortgage.



Interest on a   Members may be reimbursed under Core, the interest resulting from a short-
Short Term      term personal loan secured solely as a deposit on the purchase of a principal
Loan            residence at the new place of duty when required.

                The amount of the loan for which interest is reimbursable under Core shall
                not exceed the minimum amount needed to confirm a commitment to
                purchase a residence as confirmed by the Relocation Counselor.

                                                                            Continued on next page




88
APRIL 2003


Purchase of Replacement Residence, Continued


Interim Bridge   Members who purchase a replacement residence at the new location before
Financing        their principal residence at their former place of duty has been sold may be
                 reimbursed as follows:

                 Custom
                  The interest on a bridge loan not exceeding the equity in their unsold
                    principal residence (i.e. difference between the appraised value and the
                    existing mortgage) or the purchase cost of the replacement residence,
                    whichever is lesser)


                 Members, who purchase their replacement residence after their principal
                 residence at their former place of duty is sold, do not normally require interim
                 (bridge) financing. However, under exceptional circumstances when it is the
                 result of provincial legislation (i.e. Manitoba), the proceeds of sale may not
                 be transferable immediately on closing because of registry requirements,
                 which could possibly necessitate interim financing on the purchase of a new
                 home. The following will apply:

                 Core
                  Interest on a bridge loan may shall not normally exceed 14 days
                  Amount of loan shall not exceed that amount which is “frozen”

                 Note: Administration Fees charged by the financial institution are to be
                 reimbursed from the same component as the reimbursed interest charges

                 Personalized

                  When all Custom Funds have been expended



Second           Custom
Mortgages        A member unable to obtain an Interim (Bridge) Financing loan as described
                 above may be reimbursed interest, legal and administrative costs for a second
                 mortgage that is secured for the same purposes as Interim (Bridge) Financing
                 loan.

                 Personalized

                  When all Custom Funds have been expended



89
APRIL 2003

             Continued on next page




90
APRIL 2003


Purchase of Replacement Residence, Continued


Interest on a   Custom
Home             Under certain relocation-related conditions, members may be reimbursed
Relocation          the interest payable on a home relocation loan
Loan
                 Amount of loan shall not exceed $25,000

                In consultation with the financial lending institution, the contracted
                Relocation Consultants will provide members counseling on this benefit as it
                applies specifically to their situation.

                Note: For detailed guidelines about the Home Relocation Loan, refer to the
                Canada Customs and Revenue Agency Interpretation Bulletin “IT421R2
                Benefits to individuals, corporations and shareholders from loans or debt.”

                NOTE: ACCORDING TO CCRA REGULATIONS, THIS BENEFIT
                IS ONLY AVAILABLE TO MEMBERS MOVING FROM ONE
                LOCATION WITHIN CANADA TO ANOTHER LOCATION WITHIN
                CANADA

                Personalized

                 When all Custom Funds have been expended


Mortgage        Under certain relocation related conditions, members may be reimbursed
Interest Buy-   interest expenses to buy-down a mortgage as follows:
down
                Personalized:

                   Interest bought down on a mortgage;
                   Buy down amount cannot be below the prescribed rate set by CCRA; and
                   Additional legal fees to establish this arrangement.




91
APRIL 2003


Shipment of Household Goods and Effects (HG&E)


Policy           It is the Department’s responsibility to move a member’s household goods
                 and effects when being relocated on posting within the conditions and
                 limitations of this Directive. The existing Household Goods Removal Service
                 (HGRS) contract takes precedence in the selection of carriers and it’s
                 contracted rates.


Funding          Members are advised to refer to the specific benefits block contained in this
Overview         section to confirm the conditions and limitations of entitlements. The benefits
                 outlined in this section are funded from the Core, Custom and Personalized
                 funding elements.


       Benefit                  Core                   Custom                 Personalized
 Shipment of HG&E          Up to 20,000 lbs/      Over 20,000             If no Custom
                            9071.94 kgs             lbs/9071.94 kgs          Funds remain
 Storage in Transit        As per Core            Days in excess of       If no Custom
                            ILM&M                   Core ILM&M               Funds remain
 Long Term Storage         Up to 20,000 lbs/      Over 20,000             If no Custom
 (only when                 9071.92 kgs             lbs/9071.92 kgs          Funds remain
 authorized)
 Core Insurance            Up to $100,00          Over $100,000           If no Custom
                                                                             Funds remain
 Additional Insurance      Nil                    Actual Expenses         If no Custom
                                                                             Funds remain
 Shipment of PMV           1st PMV (TNL           2nd PMV (TNL            Additional PMVs
                            via commercial          by commercial            (TNL by
                            carrier)                carrier)                 commercial
                                                   2nd PMV (TNL             carrier or by
                                                    by PMV)                  PMV)
 RV/Boat/Motorcycle/       Nil                    Actual Expenses         If no Custom
 ATV/Trailer/                                                                Funds remain
 Snowmobile
 Crating                   Nil                    Actual Expenses         If no Custom
                                                                             Funds remain
 Additional Shipping       Nil                    HGRS Non-               If no Custom
 Costs                                              admissible items         Funds remain
 Pet Shipment              Nil                    Actual and              If no Custom
                                                    reasonable               Funds remain
                                                    expenses



92
APRIL 2003

             Continued on next page




93
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Weight        Except for certain restrictions described in this directive, the Department will
Entitlement   arrange for and pay from Core the cost of packing, insuring, shipping, in
              transit storage and unpacking of a reasonable quantity of personal household
              goods and effects up to a maximum of 20,000 lbs/9071.94 kg.

              Tariffs etc. are subject to established rates and conditions within the existing
              Household Goods and Removal Services (HGRS) contract.

              Surcharges resulting from articles which the moving firm will accept on a
              weight dimensional basis, or a cubic basis, or with surcharges are to be
              funded from Custom.


Additional    Members may move HG&E in excess of the weight entitlement. Any
Weight        expenses incurred to move any household goods in excess of 20,000-
              lbs/9071.94 kg may be funded from Custom and is the responsibility of the
              member. Personalized Funding may be used when all Custom Funds have
              been expended.

                                                                            Continued on next page




94
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Custom       One factor used to calculate the Custom Funding Element is based upon the
Funding      average cost of shipping 1,000 lbs/453.60 kg household goods per unit/room
Formula      from one zone to another zone. It does not include the shipment of vehicles
             for calculation purposes.

             Formula: 35% x cost to ship household goods per qualifying rooms. (Based
             on the zone-to-zone matrix).
             Example: The cost to move a member with 10 qualifying rooms from Ottawa
             to Halifax at 1000 lbs./453.60 kg per room is $4,714 (based on zone-to-zone
             table). Therefore, the amount of customized funding the member would
             receive in this example is $1,649.90 ($4,714 x 35%).
             A Member who shares accommodations is entitled to shipment of HG&E
             weight factor based on the rental formula. i.e. 3 people rent a 3 bedroom
             house and rent is based on “the/a room”, then the Member is entitled to the
             weight factor of 1 (one) room. If however, the rental formula is based on the
             entire premises divisible by the number (3) of shared tenants, then the
             Member is entitled to 1/3 of the entire number of rooms.

                NOTE: In those exceptional cases where laborers are flown into
                 remote communities for packing, etc., this cost will be excluded from
                 the formula configuration being used.


                                                                        Continued on next page




95
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Qualifying      One component used to calculate the Custom Funding element is the cost to
Rooms           move 1000 lbs/453.60 kg of household goods per qualifying room. The
                following is the list of qualifying rooms for calculation purposes:
                 Kitchen and Bedroom (including bedrooms in basement)
                 Living Room
                 Recreation Room
                 Family Room
                 Dining Room
                 Basement (to include washer/dryer and freezer
                 Garage (not multi-level condos and apartment buildings)
                 Outbuilding/Storage Shed (limit one)
                 Storage Room (separate from apartment)
                For the purposes of establishing the number of qualifying room, the appraisal
                reports will be used for homeowners. For renters, the member will provide
                the list of rooms.



Storage in      Funding for SIT when necessary shall be authorized as follows:
Transit (SIT)
                Core
                 Shall not be reimbursed beyond the last day which ILM&M is authorized
                   from Core

                Custom
                   The cost of any extensions beyond the period authorized from Core


                Personalized
                 When all Custom Funds have been expended

                                                                           Continued on next page




96
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Long Term    Core
Storage
             When a member is relocated, but in the opinion of the Department Authority,
             the shipment of the household effects or private motor vehicles, or both, to
             the new place of duty is neither desirable nor in the public interest, DND will
             pay, from Core, the following:

                Packing, crating and cartage of the member's household effects to the
                 nearest place where adequate long-term storage facilities are available;

                Storage of the household effects until they can or might be repossessed by
                 the member or an authorised dependant of the member;

                Storage of up to two private motor vehicles or one automobile and a
                 camper/trailer. The total storage cost shall not exceed the cost of storing

                two private motor vehicles; and

                Payment of a one-time storage preservation fee for such services as
                 removing the battery, raising the private motor vehicle (PMV) off the
                 tires, applying lubricants as required, etc., for commercial storage of a
                 private motor vehicle.

             When the member's effects have been stored in accordance with the policy
             and the member is again relocated to a location where the effects could be
             repossessed by the member or an authorized dependant, the Departmental
             Co-ordinator shall authorize HGRS to ship the effects from the place of
             storage to the member's:

              New place of duty
              Former place of residence from which the effects were placed in storage
             This authorization will include the unpacking and uncrating of effects at the
             destination.

             Note: The storage of the PMV, trailer or motorcycle in LTS as a Core benefit
             does not automatically entitlement their shipment to be reimbursed from
             Core. Refer to the Funding Overview.

                                                                           Continued on next page




97
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Partial      Applies to a member who is directed into Crown-owned living
Shipment/    accommodation that will not accommodate all personal possessions. Storage
Storage      of the remainder shall be at the employer’s expense to a maximum of 20,000
             lbs.

             Core

                Actual shipping and storage costs
                Limited to 20,000 lbs (shipped and stored)

             Custom

                Weight in excess of 20,000 lbs (shipped & stored) shall be applied to the
                 HG&E that is shipped to the new location.

             Example: Member ships 10,000 lbs to new location and stores 12,000 lbs.
             Member would be responsible for the cost of shipping 2,000 lbs to the new
             location from the Custom.

             Personalized
              When all Custom Funds have been expended


                                                                         Continued on next page




98
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Savings from    Members who are posted to Isolated Posts and move into Crown
Reducing Long   accommodation where it is impossible to normally accommodate their major
Term Storage    appliances are entitled to Long Term Storage at public expense. Members
Costs           who make alternate arrangements and decide not to store their major
                appliances may transfer 80% of the savings resulting from not storing one
                each of the following: fridge, stove, freezer, washer, dryer, and dishwasher.
                Rates as per industry standard.

                For transfer value purposes, the saving is to be calculated on the actual
                storage requirement up to a maximum of 24 months.


Insurance       Members are provided with replacement cost value insurance (RCV) of
Coverage        $100,000 on authorized household goods and effects. Any claim for loss or
                damage must be a matter between the member, the carrier, and the insurer; the
                Department is not involved in anyway. Insurance is funded from Core.


Additional      Members may claim any additional premium over the insurance policy by
Insurance       using Custom funds. Personalized Funds may be used only when all Custom
Coverage        Funds have been expended.


Crating         Members may have certain household goods and effects that require
                additional protection (i.e. China, Art, and Antiques). Members may claim
                crating costs for such items by using funds from Custom. Personalized Funds
                may be used only when all Custom Funds have been expended.

                                                                             Continued on next page




99
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued
Shipment of     Members shall be reimbursed actual and reasonable expenses related to
PMV             shipping their PMV based on their primary mode of travel. When the primary
                mode of travel is by:

                Private Motor Vehicle

                Custom

                   2nd vehicle

                Personalized

                 Additional vehicles

                Commercial Carrier

                Core
                 1st vehicle

                Custom

                 2nd vehicle

                Personalized

                 Additional vehicles –

                Note: Rental car costs incurred while the member is separated from the
                primary PMV that is being shipped are reimbursable under the Custom.


RV/Boat/Motor   All costs to ship recreational vehicles, boats, motorcycles, all-terrain vehicles,
cycle/ATV/      trailers, and snowmobiles shall be funded from Custom. The fact that the
Trailer/Snow    contracted carrier is willing to ship the vehicles with the HG&E does not
mobile          absolve the member of their financial responsibility. In all cases, expenses of
                this nature shall be funded from Custom. Personalized Funds may be used
                only when all Custom Funds have been expended.


Pets            Members may claim actual and reasonable expenses by using funds from
                Custom for transportation to the new location and any necessary kennel fees
                incurred while the member is in interim lodgings.

                                                                              Continued on next page



100
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Non Admissible   Non-admissible items are items not eligible to be shipped due to their
Items/           hazardous nature or where excluded by Departmental relocation directives or
Additional       otherwise restricted by household goods removal tariffs. As the list of non-
Shipping         admissible items are constantly being reviewed and updated, members are
Expenses         advised to contact their Traffic Agent for a current list of those items.

                 Members are responsible for any additional costs beyond those established in
                 the DND/Third Party Carrier contract. Members who wish to ship items that
                 are not within the scope of the contract may do so and be reimbursed for
                 actual expenses by using funds from Custom. Personalized Funds may be
                 used only when all Custom Funds have been expended.


Vehicle Rental   Members may be reimbursed actual and reasonable vehicle rental expenses
                 when necessarily separated from their primary vehicle when their mode of
                 travel to new location is by commercial carrier.

                                                                           Continued on next page




101
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Move of (D)      Members who first become entitled to move (D)HG&E following their
HG&E from        enrolment are entitled to move (D)HG&E (including HG&E placed in LTS –
first place of   for members without dependants) from the residence that the member
enrolment        occupied (or LTS location) immediately prior to enrolment provided it is
                 located within the geographical area of responsibility of the applicable
                 recruiting unit.

                 Members with dependants

                 Members are entitled to return to their place of enrolment in order to assist
                 their relocating dependants and receive the benefits of Addendum 5, Sections
                 2 and 3.

                 Members without dependants

                 It is expected that all members without dependants will have vacated their
                 principal residence and placed their HG&E in LTS upon enrolment as their
                 move was prohibited. In this circumstance members are not entitled to return
                 to their place of enrolment for the removal and movement of their HG&E.

                 Note: NDHQ/DCBA will consider on a case-by-case basis special
                 circumstances.

                 Example: A member who retained a principal residence at their place of
                 enrolment and did not store their HG&E in LTS could be authorized to return
                 to the location of the HG&E in order to complete the move.




102
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Custom and     The calculation of the Funding Elements shall be determined by the funding
Personalized   formulas identified for the Custom and Personalized elements. The following
Funding        table shall be used for all relocations from place of enrolment.
Formula –
Members with
dependants
                                               Custom Funding

                     Greater of $1,000 or 35% of the real estate commission (max.
                     $5,250);
                +
                     35% of the cost of transportation from old place of duty to new
                     place of duty for member only
                +
                     35% of the cost of transportation for dependants (from place of
                     enrolment to new place of duty)
                +    35% of the cost to ship HG&E from zone to zone per qualifying
                     room (based upon accommodation immediately occupied upon
                     enrolment) (see zone-to-zone table)
                     Total Custom Funding

                                             Personalized Funding


                +
                     Movement Grant                                                        $650
                +
                     Posting Allowance (if entitled)
                +    80% of real estate commission for not selling home
                     (max. $12,000)
                +    80% of the cost of LTS for major appliances (max.24 mos)
                +    HHT Incentive ($250 for flying and staying over Sat.) ; or
                     Lodgings, meal and Incidental savings for unused days (max.
                     $250)
               Personalized Funding Element
                                                                                        ________

                                                                               Continued on next page




103
APRIL 2003


Shipment of Household Goods and Effects (HG&E), Continued


Limitation of   The calculation of the Personalized Funding Element shall be adjusted by the
benefits        Basic Allowance Entitlement (BAE) that may have already been reimbursed
Personalized    to the member as per Addendum 5, Section 1.
Funding
Element


Custom and      The calculation of the Funding Formulas shall be determined by specific
Personalized    factors within the Custom and Personalized elements. The following table
Funding         shall be used for all relocations from place of enrolment
Formulas –
Mbrs without
dependants
                                                Custom Funding

                      Greater of $1,000 or 35% of the real estate commission (max.
                      $5,250);
                 +
                      35% of the cost of transportation for member (from old place of
                      duty to new place of duty)
                 +    35% of the cost to ship HG&E from zone to zone per qualifying
                      room (see zone-to-zone table) based upon type of
                      accommodation occupied prior to enrolment.
                      Total Custom Funding

                                              Personalized Funding
                 +
                      Movement Grant                                                    $650
                 +
                      Posting Allowance (if entitled)
                 +    80% of real estate commission for not selling home
                      (max. $12,000)
                 +    80% of the cost of LTS for major appliances (max.24 mos)
                 +    HHT Incentive ($250 for flying and staying over Sat.) ; or
                      Lodging, meals and Incidental savings for unused days (max.
                      $250)
                Total Personalized Funding




104
APRIL 2003


Additional Allowances


Sundry       Members may be reimbursed, from the Core Funding Element, the specific
Relocation   sundry relocation expenses listed below.
Expenses
             The following list is all-inclusive.
Admissible   Core

                Connection and disconnection of electrical equipment including in-home
                 theatre systems, computer systems and satellite dishes providing initial
                 connections fees were borne by the member
             Note: The preparation for shipment including the certification and servicing
             of articles and appliances/major electronic items is contracted through the
             service provided in the Household Goods Removal Contract for origin and
             destination services (e.g. blocking drum in washer, securing stereo turntable,
             etc) and therefore is not reimbursed as sundry relocation expenses.

                Connection and disconnection of public utility services, (e.g. telephone,
                 electricity, water, cable)
                Payment of local licenses, such as automobile registration and driver’s
                 licenses, and safety certificate for automobile when one is mandatory by
                 provincial legislation before license plates can be obtained (excluding cost
                 of necessary repairs);
                Cost of altering locks at new residence – labor only;
                Post Office change of address.


                                                                          Continued on next page




105
APRIL 2003


Additional Allowances, Continued


Spousal        Benefits that may be reimbursed for spousal assistance services from the
Services       Custom Component may include the following:

               - employment search;
               - employment assistance;
               - interview travel;
               - CV preparation; and
               - photocopy and transmittal costs for transcripts of academic records.

               Receipts will be required; a taxable benefit could result from these
               reimbursements – subject to Canada Customs and Revenue Agency policy
               and guidelines.

               Note: Retraining (courses) and re-certification do not qualify as eligible
               expenses for reimbursement under CF IRP.

               Personalized

                When all Custom Funds have been expended.


Professional   Core
Cleaning -
Disposed or    Members may be reimbursed actual and reasonable expenses incurred to
Acquired       clean their residence up to a maximum of $100.00 (taxes included). Cleaning
Rented and     expenses may be incurred on both the old and new residence; however,
Owned
               reimbursement shall not exceed $100 in total.
Residence
               Custom
               Expenses in excess of $100.00 (when required by lease) (receipts required)

               Personalized
               Additional Expenses

                                                                            Continued on next page




106
APRIL 2003


Additional Allowances, Continued



Extended         Extended Family (For purposes of HHT, TNL & ILM&M) - includes a
Family -         blood relative not residing with the member but who accompanies the
Custom Related   member for the express purpose of providing assistance with childcare or
Benefits         with the relocation of HG&E:


                 Reimbursement of all Extended Family Benefits is as follows:

                    on an HHT shall originate and terminate at the member’s current place of
                     duty; and

                    on TNL and ILM&M shall originate at member’s old place of duty and
                     terminate at the Extended Family member’s residence.




107

				
DOCUMENT INFO