Relocation benefits update – Administration of posting allowance

Relocation

Although previously listed in the Personalized Envelope formula, the Posting Allowance (PA) is now processed differently and is not included in the personalized envelope contrary to Article 1.2.2.01 of CFIRP Directive.

However, based on members’ feedback, the Direcor General Compensation and Benefits implemented a change to improve posting allowance processing. Effective April 20, 2019, all posting allowances for Regular Force members will be administered via their local pay offices; no longer paid centrally upon Chand of Strength (COS) date through Director Relocation Business Management (DRBM). Once the posting message is received, the member can request the Basic Entitlement Allowance (BEA) from the local pay office.

The posting allowance consists of two elements: 

  • Basic Allowance Element (BAE) - equal to one half of member’s monthly rate of pay
  • Dependant Allowance Element (DAE) - equal to one half of the monthly rate of pay for member whose dependants are relocated at public expense

Posting allowances will now be processed using two separate stages/transactions by the losing and gaining unit as follows:

  • First stage - the BAE (member’s portion) may be paid by the losing unit before member’s COS date
  • Second stage - the DAE (dependant portion, if applicable) to be paid upon in-clearance by the gaining unit

This change only applies to Regular Force personnel at this time. The Reserve Relocation Allowance of $1,000 will continue to be administered centrally by DRBM.

The CAF are committed to the care, health, and well-being of their members and are making every effort to streamline and improve the relocation experience for the members and their families.

Funding envelopes

Relocation benefits are reimbursed based on the following three sets of entitlements:

  • Core: Benefits essential to a relocation
  • Custom: Benefits that would enhance a relocation
  • Personalized: Benefits that are non-essential but attributable to a relocation

Personalized envelope

The Personalized Envelope now only includes the Movement Grant and the Real Estate Incentive. Personalized funding is as follow:

   Movement Grant ($650)

+ Real Estate Incentive (max. $12,000)

= Total Personalized Funds

Taxes

The PA is taxed at source. Members may complete a T1213 or submit a letter to Canada Revenue Agency should they wish to “Request to Reduce Tax Deductions at Source”.                                                                                                                               

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