# 2015-262 Pay and Benefits, Integrated Relocation Program (CF IRP), Mortgage Loan Insurance (MLI) premium

Case Summary

F&R Date: 2015–12–16

The grievor requested reimbursement of Mortgage Loan Insurance (MLI) expenses incurred following a posting despite not having been able to sell his principal residence at origin. The grievor argued that the depreciated value of his principal residence amounted to having zero equity to transfer to the new home and effectively met the Canadian Forces Integrated Relocation Program (CF IRP) intent of transferring all of his equity into the replacement residence.

The Initial Authority denied reimbursement of MLI expenses on the grounds that Article 8.3.10 of the CF IRP provides that a CAF member must sell his or her principal residence in order to qualify for MLI benefits.

The Committee found that the MLI benefit framework is premised on the assumption that a CAF member will sell a principal residence at origin and then buy a replacement principal residence at destination, and the grievor's circumstances did not meet this requirement.

The Committee recommended that the grievance be denied, but also recommended a review of the current relocation policy with the aim to minimize the substantial financial losses being experienced by CAF members as a result of operational posting requirements in the context of modern real estate market conditions.

CDS Decision Summary

The FA agreed with the Committee's findings and recommendation that the grievance be denied. The FA agreed with the Committee that the grievor could not be reimbursed MLI from Core funding because he did not meet the conditions set in article 8.3.10 (Mortgage Loan Insurance) of the CF IRP.