# 2011-121 Pay and Benefits, Integrated Relocation Program (CF IRP), Mortgage Loan Insurance (MLI) premium , Reimbursement of...

Case Summary

F&R Date: 2011–12–29

The grievor was posted to another province and purchased a replacement residence before the residence at origin had sold. The grievor obtained a new mortgage on the replacement residence, incurring Mortgage Loan Insurance (MLI) fees. As soon as the home at origin sold, the grievor transferred the entire equity to the replacement residence.

The grievor argued that he had met the conditions of the Canadian Forces Integrated Relocation Program (CF IRP) and that he was entitled to reimbursement of MLI expenses. He argued that the English version of article 8.3.10 requires that members transfer 100% of the equity from the sale of the home “upon closing of the replacement residence”; however the French version, upon which he relied, does not contain that limitation. Further, the grievor argued that the Brookfield Global Relocation Services consultant did not advise him of the limitation found in the English text of the CF IRP.

There was no initial authority decision in this grievance.

The Board reviewed the applicable provisions in both official languages and found that they were indeed inconsistent; the French version only required that equity from the former home be transferred “immediately” towards the new residence – not “upon closing” of the new residence. The Board looked to the intent of the chapter implied in article 8.1.03, which provides that members can claim benefits such as the MLI if the closing date of the residence sold or purchased is no more than one year before or two years after the Change of Strength date. The Board found that this provision on time limit was inconsistent with the restrictive English version of article 8.3.10.

The Board recommended that the Chief of the Defence Staff (CDS) uphold the grievance.

The Board recommended that the CDS direct that the grievor be reimbursed the full amount of the MLI expenses he incurred.

The Board also issued a systemic recommendation that the French and English versions of article 8.3.10 of the CF IRP be reconciled, and that the intent of the English version be reconsidered and clarified.

CDS Decision Summary

CDS Decision Date: 2012–06–29

The CDS agreed with the Board's recommendation to uphold the grievance. The English and the French versions of article 8.3.10 of the CF IRP are conflicting. The CDS was of the view that, as per interpretation rules, the English version, the more restrictive one, should prevail; however, since this version leads to illogical result, and in conjunction with the reading of the article 8.1.03 regarding the time limitations to claim the benefits, the French version should apply. The CDS directed the DGCB to undertake remedial action by reimbursing the MLI fees incurred by the grievor.

The CDS also agreed with the Board's systemic recommendation that corrective action be taken to reconcile the discrepancy between the English and French versions of article 8.3.10 of the CF IRP. This article should reflect the true intent of the policy which is that reimbursement of MLI would occur if 100% of the equity from the sale of the former residence is transferred to the new residence as long as it is within one year before or two years after the COS date.