Post Living Differential for Reservists
On June 8, 2000, under article 205.45 of the QR&O (now Compensation and Benefit Instructions for the Canadian Forces [CBI] 205.45), which took effect retroactively, to April 1, 2000, Treasury Board established a taxable benefit to stabilize the cost of living of CF members and their families when a posting required the member to move to a place of duty in Canada with above average living costs (Post Living Differential Area [PLDA]). The regulation was later revised to more accurately reflect the intentions of the CF. The first revision was authorized by Treasury Board on January 9, 2001, and took effect retroactively, on April 2, 2000.
As a general rule, the Post Living Differential (PLD) will be paid to a Regular Force (Reg F) member whose principal residence is located in a PLDA, regardless of whether the member's furniture and effects were moved to that location at public expense. For a member of the Reserve Force (Res F) (Classes B and C), the PLD is payable only if that member has been authorized to move furniture and effects to his or her place of duty at public expense.
Consequently, the Reservist serving on long-term Class B or C service already in a recognized PLDA in his or her home area and the one moved at public expense to a PLDA do not receive the same treatment. Whereas both have voluntarily chosen to serve in such an area, only the Reservist who chose to move to a PLDA for a period of Class B or C service is entitled to PLD, despite the fact it is not a service-imposed move. The result is that two Reservists can be working side by side on long-term callout but be treated differently. One will, and the other will not, receive PLD. This inequitable treatment has serious implications for morale.
The Board recently dealt with nine grievances about PLD for Reservists. In its findings and recommendations, the Board said that the current policy does not articulate why the two are treated differently in terms of PLD, nor is it self-evident why the Reservist serving on full-time duty in his or her home area should be disentitled to PLD. The Board found that this results in Reservists being treated unequally without cause.
The Board recommended that the regulation be amended to extend this benefit to all Reservists serving on a full-time basis in a PLDA. Furthermore, given the number of grievances before the Board on this issue, it recommended that immediate consideration be given to reviewing and revising CBI 205.45.
The CDS recently issued a series of decisions on this subject. As to the rationale behind the differential treatment, the CDS stated that a Reservist who accepts a voluntary callout in an area where they have already chosen to reside does not experience the cost-of-living increase that a Reservist posted to a PLDA must contend with. He concluded that the current system compensates Reservists for costs in cases where the CF has required them to be in a higher cost area (the Reservist has the choice to accept or refuse, unlike the Regular Force member). He disagreed with the Board's conclusion that the current PLD regime treats Reservists unequally without cause and stated he was not prepared to accept the Board's recommendation that CBI 205.45 be amended.