# 2014-011 Pay and Benefits, Canadian Forces Severance Pay (CFSP)

Case Summary

F&R Date: 2014–03–07

The grievor alleged that the provisions of the Compensation and Benefits Instructions for the Canadian Forces 204.40 – Canadian Forces Severance Pay, effective 1 April 2011, were unfair to members with more than 10 years of prior service in the Reserve Force. For the purpose of calculating the payment in lieu of severance pay, the service of members with less than 10 years prior service in the Reserve is accounted for and compensated at the full rate. The service of members who, like the grievor, have more than 10 years of prior service, is excluded because they were entitled to receive the Reserve Force Retirement Gratuity. The grievor argues, however, that the gratuity she received on being transferred to the Regular Force in 2008 compensated her service at a lesser rate of half the amount, which is less than the amount paid to members with less than 10 years prior service under the Directive. The Committee must determine whether the grievor suffered an injustice under the provisions of the Directive.

The initial authority, the Director General Compensation and Benefits, sent the case back, refusing to render a decision on this issue on the grounds that the requested redress involved an amendment to a Treasury Board (TB) policy and that no officer of the Canadian Armed Forces (CAF) had the authority to change it.

The Committee noted that at the time the grievor was transferred to the Regular Force there was no regulatory provision that would have allowed her to refuse payment of the retirement allowance at the rate of three and a half days per year of service, in effect at the time of the payment. The Committee also noted that compensation, benefits and allowances are constantly under review and may be repealed or amended by TB at any time in order to respond more effectively to the changing priorities of the government and CAF.

The Committee explained that the TB policy specifically stipulated that the new severance pay would exclude any prior period of service already compensated by an allowance, ie, the severance pay or the Reserve Force Retirement Gratuity. The policy accordingly ensures that prior service is not doubly compensated. The Committee was of the opinion that this provision is reasonable and in keeping with current practice.

The Committee accordingly concluded that the grievor had received the amounts to which she was entitled under the policy in effect at the time she received them. It therefore recommended that the Chief of the Defence Staff deny the grievance.

CDS Decision Summary

CDS Decision Date: 2015–02–26

The CDS agreed with the Committee's findings and recommendation that the grievance be denied.