Chapter 206 - Gratuities - Officers Serving For Fixed Period

206.20 - Definitions

The definitions in this instruction apply in this chapter.

fixed period of service

includes any period of service and any extension granted to that period of service, other than

1. an intermediate engagement,
2. a fixed period of service commenced after having completed an intermediate engagement, or
3. any indefinite period of service.

intermediate engagement

means a period of service of an officer of 20 years continuous service, including service as a non-commissioned member, in the Regular Force since the officer's enrolment, re-enrolment or transfer from the Reserve Force.

206.21 - Gratuities – Entitlement

206.21(1) (Eligibility) A gratuity calculated in accordance with CBI 206.22 - Gratuities – Calculation, less any abatement calculated in accordance with CBI 206.23 - Gratuities – Abatement, shall be paid to an officer of the Regular Force who is enrolled before 1 June 2003 and is released under Items 3, 4 or 5 of the table to article 15.01 - Release of Officers and Non-commissioned Members of the QR&O or who is transferred to the Reserve Force

1. on completion of a fixed period of service as defined in CBI 206.20 - Definitions;
2. during, but prior to completion of, a fixed period of service as defined in CBI 206.20 if the officer is released or transferred to the Reserve Force
   1. on medical grounds, having become physically or medically unfit to perform their duties as an officer in the Regular Force,
   2. for a reason determined by the Service Pension Board, for the purpose of the Canadian Forces Superannuation Act for the purpose of promoting economy or efficiency, or
   3. during the last year of that fixed period of service; or
3. during, but prior to completion of, a fixed period of service as defined in CBI 206.20 if the officer is not entitled under subparagraph (1)(b) but has, during the officer's current period of continuous service in the Regular Force, completed a fixed period of service on which the officer was serving prior to the fixed period of service on which the officer was serving at the time of the release or transfer to the Reserve Force.

206.21(2) (Death of officer) When an officer dies while serving in the Regular Force for a fixed period of service as defined in CBI 206.20, the spouse or common-law partner or, if there is no spouse or common-law partner, the officer's dependent child or children under the age of 18 years shall be paid a gratuity equal to the gratuity that would have been paid to the officer if the officer had been released on the date of the officer's death under the circumstances mentioned in sub-subparagraph (1)(b)(i) or subparagraph (1)(c), as appropriate.

(effective 1 June 2003)
Amendment 2/03

206.22 - Gratuities – Calculation

206.22(1) (Definition) In this instruction, pay means the rate of pay to which an officer of the Regular Force is entitled at the time of their release, transfer to the Reserve Force or death, plus $9 per month.

206.22(2) (Calculation) Subject to CBI 206.23 – Gratuities - Abatement, a gratuity payable under CBI 206.21 - Gratuities – Entitlement shall be calculated on the basis of one month's pay for each year of service described in paragraph (3), and fractions of a year shall be counted.

206.22(3) (Continuous service) For the purpose of paragraph (2)

1. the service upon which a gratuity payable to an officer entitled under subparagraph (1)(a) or (b) of CBI 206.21 is based is continuous service as an officer in the Regular Force on a fixed period of service as defined in CBI 206.20 - Definitions, but not including any part of that service after 1 April 1976 during which the officer was an officer cadet to whom Table G to article 15.17 - Release of Officers – Age and Length of Service of the QR&O applied; and
2. the service upon which a gratuity payable to an officer entitled under subparagraph (1)(c) of CBI 206.21 is based is continuous service as an officer in the Regular Force on a fixed period of service as defined in CBI 206.20 but not including
   1. any part of such service after 1 April 1976, during which the officer was an officer cadet to whom Table G to article 15.17 of the QR&O applied, or
   2. any part of such service during the fixed period of service mentioned in subparagraph (1)(c) of CBI 206.21 that the officer did not complete.

206.23 - Gratuities – Abatement

206.23(1) (Abatement – same period of service) The amount of a gratuity calculated in accordance with CBI 206.22 - Gratuities – Calculation shall be abated by the difference between

1. any return of contributions, including any interest payable thereon, or cash termination allowance, or the capitalized value of any annuity or annual allowance payable under the Canadian Forces Superannuation Act, and
2. the contributions, without interest, made under the Canadian Forces Superannuation Act,

for the same period of service on which the gratuity is based.

206.23(2) (Abatement – leave without pay or absence without leave) The amount of a gratuity calculated in accordance with CBI 206.22 shall be abated by the amount of the gratuity that would otherwise be payable in respect of any period of leave without pay or absence without leave that was included in the period of service upon which the amount of the gratuity was calculated.

206.23(2.1) (Exception) Despite paragraph (2), a period of leave without pay granted in accordance with article 16.26 - Maternity Leave or article 16.27 - Parental Leave of the QR&O shall be included in the period of service on which the amount of the gratuity is calculated for the purpose of CBI 206.22.

206.23(3) (Specialist Officer) The amount of a gratuity calculated in accordance with CBI 206.22 shall be abated by the amount of the gratuity that would otherwise be payable in respect of an officer of the Regular Force who is, in accordance with orders or instructions issued by the Chief of the Defence Staff, classified as a Specialist Officer, for any fixed period of service on which the officer was enrolled to cover their academic training and subsequent obligatory service.

206.23(4) (CFSA contributions) A gratuity to which an officer is entitled under sub-subparagraph (1)(b)(ii) of CBI 206.21 - Gratuities – Entitlement shall be abated by an amount equal to the total contributions made under the Canadian Forces Superannuation Act in respect of any service upon which calculation of the officer's gratuity is based that was a part of a fixed period of service that the officer did not fully complete.