CDS decision posted.
Good morning all. CDS has ruled on my grievance. Decision has been posted at
http://www.cfgb-cgfc.gc.ca/English/2011-025.html"Case # 2011-025
Home Equity Assistance (HEA), Integrated Relocation Program (CF IRP)
Case Summary
F&R Date: 2011-04-29
The grievor suffered a loss of $88,000 upon the sale of his home on posting. He was granted reimbursement under Home Equity Assistance (HEA) in the amount of $15,000 from his Core funding. The grievor provided a well substantiated application to the Director Compensation and Benefits Administration (DCBA) requesting HEA reimbursement for 100 percent of his loss from his Core benefit on the grounds that his community constituted a depressed market area as specified in the policy, the Canadian Forces (CF) Integrated Relocation Program (IRP) Active Posting Season 2010, section 8.2.13. The grievor’s submission included evidence that the real estate market in his community had declined by over 23 percent.
The DCBA Relocation Adjudication Section denied the grievor's request on the grounds that the Treasury Board Secretariat (TBS) had determined that there were no locations in Canada designated with depressed market status.
The grievor disputed the DCBA decision, suggesting that DCBA had used a blanket TBS denial to turn down his request and reiterating that his community fell within the definition of a depressed market area according to the CF IRP. He also noted that he had advised his career manager that he had serious concerns with that posting because he simply could not afford the housing in that area and the Private Married Quarters had lengthy waiting lists and were not available. He further explained that the loss on the sale of his home had had a severe impact on his family and that he was very close to the point of bankruptcy. He also stated that if he were not granted 100 percent reimbursement, he may be forced to leave the CF.
As redress, the grievor requested reimbursement under the HEA for 100 percent of his loss, reimbursement for the interest he was paying on a monthly basis on the debt he had incurred in relation to the loss on the home and reimbursement of several other consequential expenses related to the denial of his original HEA application.
The initial authority (IA), the Director General Compensation and Benefits (DGCB) denied redress noting that the CFIRP directive represented TBS approved policy and that the Department had no authority to amend such a policy or extend a benefit beyond its prescribed margins. The IA explained that the TBS had declared that there were no locations in Canada designated with depressed market status for 2010.
The IA also stated that, since the grievance pertained to a matter prescribed by the Governor in Council (GIC) in regulations, the grievance file was returned without further action. She advised the grievor that a request to amend a policy or a TBS decision should be staffed administratively through his chain of command.
The Board disagreed with the IA’s decision to dismiss the grievance. The Board noted that it had previously stated, and the Chief of the Defence Staff (CDS) had agreed, that it is open to a member to grieve the application of a policy or regulation to him or her personally.
The Board found that the grievor had submitted a valid grievance that ought to be judged on its merits.
The Board noted that the HEA policy in CF IRP section 8.2.13 required that DCBA forward to TBS a case for depressed market status built and submitted by a CF member and his or her realtor. Accordingly, the Board found that the grievor's file should have been forwarded to TBS. The Board indicated that, based on the evidence on file, the grievor's community fell within the HEA policy definition of a depressed market area, “... a community where the housing market has dropped more than 20%,” which would entitle him to reimbursement of 100 percent of his loss.
The Board recommended to the CDS that he direct that the grievor's HEA application be submitted to TBS with the full support of the CF, for consideration of the grievor's request for a depressed market designation and reimbursement from Core of 100 percent of the loss on his home sale.
The Board noted that there was no authority under the policy to grant the payment of interest nor any of the other out-of-pocket expenses which the grievor attributed to the denial of his original HEA submission, and as such, did not recommend that the CDS grant this portion of the grievor's requested redress.
CDS Decision Summary
CDS Decision Date: 2011-09-19
The CDS agreed with the Board's findings and its recommendation to partially uphold the grievance. The CDS directed the DGCB to prepare and transmit the grievor's HEA submission to Treasury Board (TB), in accordance with the CF IRP provisions, for evaluation of depressed market status. In the event that TB should not find in favour of this submission, the CDS invited the grievor to forward his file to DCCL for compensatory consideration as a claim against the Crown, with his full support.
Since there are now a number of grievances relating to CF members who have experienced severe losses in home equity as a result of being posted to and from the Edmonton area, the CDS reiterated his previous direction to the DGBC, as recommended by the Board in previous files, which is to continue to engage TB in vigorous negotiations. The CDS specified that the negotiations should be focused as follows:
a. to revisit the TB's determination that there were no depressed markets in Canada in 2010, including the definition of ''community''; and
b. to re-examine the CF IRP HEA provisions, in particular the 20% depressed market criteria and the $15,000.00 maximum amount reimbursable under the CF IRP core envelope.
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As a result, the Treasury Board now has the file. Hopefully we will hear good news in 2012.
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