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Changes to Severance Pay

ARMY_101

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Recap: after Budget 2012 several different forms of severance pay and other related benefits were lumped into one severance pay package. These are the details pertaining to how they're calculated and how you elect to have it paid out.

CANFORGEN 119/12
UNCLASSIFIED

REF: A. CANFORGEN 062/12

B. CBI 204.40


THE PURPOSE OF THIS CANFORGEN IS TO INFORM ALL MEMBERS OF THE REGULAR FORCE (REG F) AND THE PRIMARY RESERVE (P RES) OF THE ADMINISTRATIVE PROCESS AND TIMELINES RELATED TO THE PAYMENT IN LIEU (PIL) OF THE CANADIAN FORCES SEVERANCE PAY (CFSP)


IN ORDER TO PROCESS FILES IN A TIMELY FASHION, A TEAM WILL BE ESTABLISHED IN OTTAWA UNDER THE SUPERVISION OF DIRECTOR MILITARY CAREERS ADMINISTRATION (DMCA) AND NAMED QUOTE DMCA 4 PAYMENT IN LIEU TEAM UNQUOTE OR THE DMCA 4 PIL TEAM). THE MAIN TASKS OF THE DMCA 4 PIL TEAM WILL BE TO:


AUDIT THE FILES OF ALL REG F MEMBERS WHO ELECT TO CASH OUT 51 PERCENT OR MORE OF THE PIL


AUDIT THE FILES OF ALL REG F MEMBERS AUDIT THE FILES OF ALL REG F MEMBERS WITH PREVIOUS SERVICE (IN REG F OR RES F) WHO ELECT TO CASH OUT ANY PORTION OF THE PIL


AUDIT THE FILES OF ALL RES F MEMBERS WHO ELECT TO CASH OUT ANY PORTION OF THE PIL AND


RESPOND TO PIL-RELATED QUERIES


ADMINISTRATIVE PROCESS:


FALL 2012: EVERY REG F AND P RES MEMBER WILL RECEIVE A PIL ESTIMATE


ON OR AFTER 17 SEP 12: CF MEMBERS WHO HAVE NOT RECEIVED A PIL ESTIMATE WILL BE REQUIRED TO ADVISE THEIR UNIT CHIEF CLERK. IN ORDER TO REQUEST PIL ESTIMATES, THE UNIT CHIEF CLERK WILL BE REQUIRED TO SEND A CONSOLIDATED LIST TO DIRECTOR MILITARY PAY AND ACCOUNTS PROCESSING (DMPAP) VIA EMAIL TO: MILPAYHELPDESK(AT SIGN)FORCES.GC.CA


RESPONSIBILITY OF CF MEMBERS: SO AS TO ENSURE THAT THE PIL INFORMATION IS ACCURATE, ALL REG F AND P RES MEMBERS WILL BE REQUIRED TO CONFIRM THEIR YEARS OF SERVICE (YOS) (NOTE: YOS MUST BE ELIGIBLE SERVICE AS DEFINED IN CBI 204.40)


INACCURATE INFORMATION: CF MEMBERS WILL BE REQUIRED TO CONTACT THEIR UNIT ORDERLY ROOM (OR) IN ORDER TO CONFIRM THE ACCURACY OF THEIR YOS WRT THEIR PIL ESTIMATE. IN THE EVENT OF A DISCREPANCY, MEMBERS MAY BE REQUIRED TO PROVIDE DOCUMENTS SUPPORTING PREVIOUS SERVICE


ELECTION PERIOD: THE ELECTION PERIOD IS FROM 14 DEC 12 TO 13 MAR 13. AS PER REF B, EXTENSIONS TO THE ELECTION PERIOD WILL NOT BE AUTHORIZED. MEMBERS WHOSE BASE OR UNIT OR HAS NOT RECEIVED) THE ELECTION FORM BY 2359 HOURS ON 28 MAR 13 WILL NOT BE ABLE TO RECEIVE THEIR CFSP UNTIL THEIR RELEASE FROM THE CF


ELECTION TYPE: AS PER REF A, MEMBERS WILL HAVE THE OPPORTUNITY TO CHOOSE ONE OF THE FOLLOWING:

(1) FULL ELECTION: ELECT A ONE-TIME PIL PAYMENT OF ALL THEIR SEVERANCE BENEFITS

(2) PARTIAL ELECTION: ELECT A ONE-TIME PIL PAYMENT FOR A PORTION OF THEIR SEVERANCE BENEFITS AND DEFER THE REMAINING AMOUNT UNTIL RELEASE OR

(3) NO ELECTION: MEMBERS WILL RECEIVE ALL SEVERANCE BENEFITS AT RELEASE


CANADIAN FORCES SEVERANCE PAY - ELECTION FORM (CBI 204.40(4)) (REFERRED TO AS CFSP ELECTION FORM): IS TO BE MADE AVAILABLE AT EACH BASE/UNIT OR IT WILL ALSO BE POSTED ON THE DMCA 4 PIL TEAM WEBSITE. CF MEMBERS WHO MAKE A FULL OR PARTIAL ELECTION WILL BE REQUIRED TO FILL OUT THE CFSP ELECTION FORM AND SUBMIT IT TO THEIR BASE/UNIT OR DURING THE ELECTION PERIOD


PIL ELECTION IS IRREVOCABLE. ELECTIONS MADE BEFORE 14 DEC 12 OR AFTER THE 2359 HRS ON 13 MAR 13 WILL BE CONSIDERED INVALID AND WILL NOT BE PROCESSED


IN THE CASE OF MEMBERS WHO DO NOT MAKE AN ELECTION: IT WILL BE DEEMED THAT THEY HAVE CHOSEN TO DEFER THEIR PAYMENT OF BENEFITS UNTIL THEIR RELEASE FROM THE CF


COMPLETED CFSP ELECTION FORM: CF MEMBERS SHALL/MUST ENSURE THAT THEIR COMPLETED CFSP ELECTION FORM IS RECEIVED BY THE BASE/UNIT OR NO LATER THAN 2359 HRS ON 28 MAR 13. MEMBERS CAN SUBMIT THEIR CFSP ELECTION FORM VIA MAIL, HAND CARRY, EMAIL OR FAX


DATE STAMP CONFIRMATION REQUIREMENT: BASE/UNIT OR SHALL/MUST STAMP THE CFSP ELECTION FORMS SO AS TO CONFIRM THE DATE THEY WERE RECEIVED. THE OR CLERK WILL BE REQUIRED TO STAMP AND SIGN THE CFSP ELECTION FORM AS SOON AS IT IS RECEIVED (AND TO LEGIBLY PRINT SIGNATURE BLOCK BELOW SIGNATURE)


CFSP ELECTION FORM VERIFICATION: THE BASE/UNIT OR WILL PERFORM THE INITIAL VERIFICATION OF THE CFSP ELECTION FORM. THE OR WILL CONFIRM THAT ELECTION WAS MADE DURING THE ELECTION PERIOD (IAW PARA 3 H ABOVE). ONCE COMPLETE, THE OR WILL INITIATE THE PIL CALCULATION WORKSHEET. THE BASE/UNIT OR WILL COMPLETE SECTIONS A, B, C, AND D OF THE PIL CALCULATION WORKSHEET


REG F MEMBERS WITH NO PREVIOUS SERVICE WHO ELECT 50 PERCENT OR LESS OF THE PIL BENEFIT: THE BASE/UNIT OR WILL BE REQUIRED TO PROCESS THE PAYMENT IN CCPS. ONCE THIS IS DONE, A COPY OF THE CFSP ELECTION FORM AND PIL CALCULATION WORKSHEET SHALL/MUST BE SENT TO DMCA 4 PIL TEAM AND THE ORIGINAL SHALL/MUST BE PUT AWAY (PA) IN THE MEMBER S PERS FILE


ALL REG F MEMBERS WITH PREVIOUS SERVICE AND ALL P RES MEMBERS WHO ELECT THE PIL: BASE/UNIT OR WILL CREATE A TD FOLDER TO INCLUDE SOME OR ALL OF THE FOLLOWING DOCS:

(1) CFSP ELECTION FORM (ORIGINAL)

(2) PIL CALCULATION WORKSHEET (ORIGINAL)

(3) CANADIAN FORCES ENROLMENT FORM (CF 444)

(4) ENROLMENT/TRANSFER POSTING MSG (ETP MSG)

(5) VERIFICATION OF FORMER SERVICE MSG (VFS MSG)

(6) STATEMENT OF RESERVE SERVICE (CF 1007)

(7) DEPARTMENT OF NATIONAL DEFENCE ARREARS VERIFICATION - CFSA (CFSA 300)

(8) SEVERANCE PAY/REHABILITATION LEAVE WORKSHEET

(9) RESERVE FORCE RETIREMENT GRATUITY WORKSHEET

(10) PREVIOUS QUALIFYING SERVICE CALCULATION NOTIFICATION (DND 1112)

(11) APPROVED PERIOD OF EXEMPTION FROM DUTY AND TRAINING

(12) APPROVED PERIOD OF NON-EFFECTIVE STRENGTH

(13) PROMOTION MESSAGE (SUBSTANTIVE) OR COURSE REPORT FOR SUBSTANTIVE PROMOTION

(14) ROUTE LETTERS AND

(15) ALL OTHER DOCUMENTS THAT RELATE TO NO-PAID SERVICE (E.G. LWOP, LOP DETENTION, AWOL FORFEITURES, ETC)


ALL REG F MEMBERS WHO ELECT 51 PERCENT AND/OR MORE: BASE/UNIT OR WILL CREATE A TD FOLDER (TO INCLUDE THE ITEMS LISTED IN PARA 3 SUB PARA N ABOVE) AND WILL SEND THE FOLDER TO THE DMCA 4 PIL TEAM. BASE/UNIT OR MAY SCAN AND SEND ELECTRONICALLY THROUGH THE MAIL SYSTEM. IF THE OR SCANS THE TD FOLDER, THE DMCA 4 PIL TEAM WILL UTILIZE AND CERTIFY THE SCANNED COPY, AFTER WHICH IT SHALL/MUST BE TREATED AS THE ORIGINAL


THE DMCA 4 PIL TEAM WILL PERFORM THE FINAL AUDIT FOR MEMBERS IDENTIFIED AT PARA 2 N AND PARA 2 O. DMCA 4 PIL TEAM WILL:

(1) VERIFY THE PIL CALCULATION WORKSHEET

(2) CERTIFY THE ENTITLEMENT FOR PAYMENT AND

(3) DISTRIBUTE IAW SUB PARAS S AND T BELOW


TO AVOID UNNECESSARY DELAYS WITH REGARD TO PAYMENT FOR CF MEMBERS, UNITS MUST PROVIDE COMPLETE DOCUMENTATION IN THE TD FOLDER-SCANNED DOCUMENT. IF SOME DOCUMENTS ARE MISSING, A LETTER WILL BE SENT TO THE BASE-UNIT OR AND TO THE CF MEMBER CONCERNEDTHROUGH THE COMMANDING OFFICER. THAT LETTER WILL STATE WHAT INFORMATION MUST BE PROVIDED. THE DMCA 4 PIL TEAM WILL PLACE THE MEMBER S FILE ON HOLD UNTIL IT RECEIVES THE NECESSARY INFORMATION


IF AN ERROR IS FOUND ON THE PIL CALCULATION WORKSHEET, THE DMCA 4 PIL TEAM WILL CORRECT THE ERROR AND AN OBSERVATION LETTER WILL BE SENT TO THE MEMBER THROUGH THE BASE/UNIT COMMANDING OFFICER TO INFORM HIM OR HER OF THE OBSERVATION/ERROR THAT HAS BEEN CORRECTED


FOR REG F MEMBERS IDENTIFIED AT PARA 2 N AND 2 O: AFTER THE AUDIT IN PARA 3 P ABOVE HAS BEEN COMPLETED, THE DMCA 4 PIL TEAM WILL FORWARD THE CERTIFIED DOCUMENTS TO THE BASE/UNIT OR FOR PAYMENT PROCESSING IN CCPS. ONCE PAID ALL CERTIFIED DOCUMENTS (WITH ALL ASSOCIATED PAPERWORK) SHALL/MUST BE PUT AWAY (PA) IN THE MEMBER S PERS FILE AND


FOR RES F MEMBERS: DMCA 4 PIL TEAM WILL SEND CERTIFIED PIL FORMS TO DMPAP IN ORDER TO PROCESS THE PAYMENT


TIMELINE AS FOLLOWS:


1 JUNE 2012: STAND UP OF DMCA 4 PIL TEAM


SEP 2012: ESTIMATE PACKAGE MAILED OUT


15 OCT 2012: DMCA 4 PIL TEAM OPERATIONAL


14 DEC 2012: ELECTION PERIOD BEGINS


13 MAR 2013: THE ELECTION PERIOD ENDS AT 2359 HRS, AND


FROM 14 DEC 2012 ONWARD: THE OR OF EACH UNIT CAN COMMENCE AUDITING THE COMPLETED CFSP ELECTION FORMS AND INITIATE THE PIL CALCULATION WORKSHEETS ON BEHALF OF ITS MEMBERS. PAYMENT IS TO BE PROVIDED TO MEMBERS ONCE THE PIL PROCESS-AUDIT HAS BEEN COMPLETED (DATE TBC)


PATIENCE WILL BE REQUIRED THROUGHOUT THE ENTIRE PROCESS. OWING TO MANNING SHORTFALLS, THE DMCA 4 PIL TEAM AND DMPAP WILL NOT BE ABLE TO PROVIDE FILE SITREPS


ONCE THE DMCA 4 PIL TEAM HAS BEEN STOOD UP, QUESTIONS RELATED TO THE ADMINISTRATIVE PROCESS CAN BE SENT VIA EMAIL. THIS ADDRESS WILL BE PUBLISHED IN A FUTURE CANFORGEN


SIGNED BY RADM A. SMITH, CMP
 
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