Case # 2012-009

Audit of the monthly rate of SE applied at a Canadian Forces Base, Pension benefits, Pension Entitlements, Reserve

Case Summary

F&R Date: 2012–03–26

The grievor was a former member of the Regular Force (Reg F) with 34 years of service when he transferred to the Primary Reserve (P Res). He had collected the maximum severance pay of 210 days, the equivalent of 30 years’ service. The grievor served in the P Res for several years and was subsequently released from the Canadian Forces (CF) on reaching the compulsory retirement age of 60 under item 5(a) of the Table to article 15.1 of Queen’s Regulations and Orders for the Canadian Forces (QR&O).

The grievor applied for the Reserve Force Retirement Gratuity (RFRG) under Compensation and Benefits Instructions (CBI) 204.54. However, he was advised by CF authorities that he was not entitled to the RFRG because he had already received the maximum 210 days (30-years) severance pay.

The grievor argued that CBI 204.54 provided that the Reg F service for which he received the 210 days of severance pay was not to be included in the calculation of qualifying service for the RFRG. He then pointed out that, contrary to CBI 204.54, the decision not to award him the RFRG was based solely on including his Reg F service in the calculation of qualifying service for the RFRG.

As redress, the grievor requested that his entitlement to the RFRG be approved and paid.

There was no initial authority decision because the grievor did not authorize an extension to the time allowed to render a decision.

The Board examined the relevant regulation and found that the CF form being used for the purpose of calculating the RFRG benefit employed a formula which conflicted with the Treasury Board (TB) approved CBI regulation. TB staff were consulted and confirmed that there was no approval for the formula employed by the CF which had invalidated the grievor’s claim for the RFRG benefit in the spring of 2011. The TB staff also confirmed that the TB had subsequently approved a decision in July 2011 revising the CBI so as to limit combined severance pay and RFRG benefits to a maximum of a 30-year benefit effective 1 October 2011. TB staff also observed that the revised CBI had not yet been promulgated by the CF.

The Board found that, notwithstanding the receipt of a Reg F 30-year maximum severance pay benefit, a member of the P Res with eligible P Res service who was released under an applicable QR&O release item prior to 1 October 2011 could be eligible for a RFRG benefit.

The Board also found that, having been released under an appropriate release item, the grievor was entitled to a RFRG benefit for his eligible P Res service.

The Board recommended that the grievance be upheld.

The Board observed that the TB decision to limit severance pay and RFRG benefits to a combined maximum of a 30-year benefit was taken in July 2011 with an effective date of 1 October 2011 but had not yet been promulgated. The Board expressed concern that any delay in announcing changes to benefits already approved by the TB can only result in confusion, incorrect decisions, potential loss of benefits for some CF members, and additional grievances.

The Board was also concerned that, since 1 April 1997, a number of reservists may have been wrongly denied the RFRG benefit based on their combined Reg F and P Res service having exceeded 30 years.

Accordingly, the Board made a systemic recommendation that the Chief of the Defence Staff direct that similar grievances that are outstanding be upheld administratively, along with any administrative inquiries from eligible released former P Res members.

CDS Decision Summary

CDS Decision Date: 2012–12–17

The file was resolved informally and the grievor withdrew his grievance. DGCB was satisfied that CDI 204.54 in effect at the time of your release from the CF did not prevent the grievor from receiving RFRG benefit notwithstanding his previos receipt of a 30-years severance pay benefit for his Reg F service. Therefore, the grievor was entitled to receive the RFRG benefit for his PRes service.