Case # 2009-085

Principal residence, Relocation Benefits

Case Summary

F&R Date: 2010-02-26

The grievor purchased a new home shortly prior to receiving notice that he was being posted to a new place of duty. Prior to purchasing the home, the grievor had been advised by his career manager that he would not be posted for two years; however, circumstances changed. The grievor never had the opportunity to move into the new home due to the timing of his posting. He sold both his original home and the new home and moved to his new place of duty. The grievor was reimbursed pursuant to the Canadian Forces Integrated Relocation Program (CF IRP) section 11 - Sale of Principal Residence for the costs related to the sale of his original residence. He was denied his request for reimbursement of the costs related to the sale of the second residence due to the fact that he did not occupy the home. Article 11.03 of the CF IRP stipulated that a member had to occupy the principal residence immediately prior to the official notification of a posting to qualify for benefits in relation to the sale of the residence.

The grievor submitted a grievance in which he contended that the application of the CF IRP occupancy requirement was not fair in his case and should not have been enforced. In support of his position, he noted that, before he bought the second house, he had received confirmation from his career manager that he would not be posted, he contended had not received full value for the house since potential purchasers had been aware that it had been relisted, he indicated that he had anticipated offsetting his purchase costs as a result of the house appreciating over time, and he submitted that the occupancy requirement had been intended to prohibit the recuperation of costs related to income properties. As redress, the grievor requested reimbursement for all real estate, legal and miscellaneous expenses incurred during the sale of his second residence.

The initial authority (IA) denied the grievance on the grounds that the expenses related to the sale of the second house were not directly attributable to the grievor's relocation. The IA highlighted that, regardless of whether the grievor had been posted, he would still have been responsible for the cost of selling one of his houses.

The Board found that the grievor was not entitled to the Sale of Principal Residence benefits in section 11 of the CF IRP due to the fact that the grievor did not occupy the second residence immediately prior to official notification of his posting. The Board noted that the CF IRP had been approved by Treasury Board, and it was not within the authority of the Chief of the Defence Staff (CDS) to disregard the requirements established in the policy.

The Board recommended that the CDS deny the grievance.

CDS Decision Summary

CDS Decision Date: 2010-07-23

The CDS agreed with the Board's findings and recommendation to deny the grievance.