Case # 2011-132

Clarity of information - Canadian Forces Integrated Relocation Program, Overpayment, Relocation Benefits, Relocation expenses

Case Summary

F&R Date: 2012–02–28

Following a relocation, the grievor was informed that the Canadian Forces (CF) intended to recover approximately $3,000 because he did not have sufficient funds in his custom benefits envelope to cover the costs of shipping a second private motor vehicle (PMV). Although $3,500 had been allotted for that purpose in his custom envelope, the actual cost of shipping the grievor's second PMV amounted to $9,000, resulting in insufficient funds. The Relocation Adjudication section of the Director Compensation and Benefits Administration indicated that the grievor had approximately $11,500 in his custom envelope, which was more than sufficient to cover the shipping costs; however, the grievor had made personal choices that depleted the funds available.

The grievor indicated that he had not been informed that there would be an increased cost to move his second PMV; he added that, had he been so informed, he would have looked at other options, such as having his spouse drive the second vehicle or even sell it before relocating. The grievor also stated that since the additional costs of shipping his second PMV were unknown to him, he could not have minimized the financial impact to stay within the limitations of his custom envelope. He requested an allowance of $5,500 to cover the difference between the actual cost of shipment and the amount he was told would be available from his custom envelope.

The initial authority (IA) stated that the Canadian Forces Integrated Relocation Program (CF IRP) is approved by Treasury Board and hence, the CF has no authority to change the benefits within the policy. The IA added that it is the CF members' responsibility to request confirmation of information and coordinating the shipment of household goods and effects. The IA denied the grievance, but as a result of a verification of the grievor's relocation file, she directed that the grievor be reimbursed $652.29.

Following the IA decision, the grievor indicated his wish that his grievance be forwarded to the final authority (FA); however, he also identified possible errors in his relocation file and requested that the IA reconsider his grievance prior to submitting it to the FA for adjudication.

The Board noted that, prior to the move, the grievor was never told that the cost of shipping his second PMV had not yet been determined or that higher quotes had been received. In the Board's opinion, there was a duty to provide the grievor with accurate information about the cost in order that he might make an informed decision. The failure to provide that information to the grievor effectively deprived him of the ability to make a meaningful choice; moreover, in the Board's view, it fatally altered the relationship between the grievor and the Crown servants who purported to engage the grievor's liability for shipping the vehicle. The Board opined that to enter into the shipping contract and make the grievor liable for the contracted costs, the Crown must have had his informed authority; in the circumstances of this case, the Board found there was no such authority.

The Board recommended to the Chief of the Defence Staff (CDS) that the grievance be upheld and that the portion of the cost of shipping the grievor's second PMV to be borne by the grievor be limited to $3,500.

The Board also recommended to the CDS that he order an independent review of the grievor's entire moving claim with a view to ensuring that all the amounts are both correctly calculated and allotted to the correct envelopes as per the applicable CF IRP provisions.

From a systemic point of view, the Board recommended that the CDS order that the CF IRP provisions and any form related to the shipping of a PMV be reviewed and clarified to ensure that CF members are made aware of the actual shipping costs before their relocation to allow them to make an informed decision.

CDS Decision Summary

CDS Decision Pending