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Up to 1,500 military housing units sit empty, auditor general says

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ModlrMike said:
My own questions on the subject:

1. does PMQ rent stay within CFHA or does it go into some other central fund?
2. if the answer to 1 is some other central fund, then why?
3. is it wrong to charge PMQ rents that are consistent with the local market?
4. should the quality of the home be taken into consideration (perhaps a sliding scale)?
5. should the allocation of PMQs be means tested?
6. should the CF be encouraging home ownership?
7. should the CF be in the business of rental administration, or should that fall to a wholly separate entity?

My own response to 3-6 is yes. Question 7 I'm not so certain on.

Some of your questions (the fiscal ones?) could possibly be answered by The Canadian Forces Housing Agency's 2014-2015 Annual Report.

A quick glance through the report indicates (and I could have misread it) that the agency does not turn a profit (or at least not in the 2014/15 fiscal year); in fact, it required additional funding to meet its programme.

But  what do you expect from an organization that is trying to provide a 1940s/50s product to a 21st century customer base.
 
I think it’s funny people got excited at the first line of my previous post and apparently didn't read the rest before they replied.

Allow me to clarify.

Since it's fair on paper for everyone to pay market rates for everything; we should not be arguing to not pay market rates: We should be arguing for the federal gov to PAY US market rates for our skillsets and market rate compensation for the job requirements.

Currently our pay is standard across the board and, quite frankly, a lot lower than the market pays to hire the same EXACT qualifications and job requirements.

If the Federal Gov doesn't want to be responsible for supplying a standard set of services to provide a standard level of living, care and access to services; then they cannot ethically provide only a standard rate of pay in different markets ignoring the market rate.

Doubly so if it is important to not affect the local economy.

Paying a vast workforce less or more than market rates has significant effects on the local market.

If there is concern from TB and CRA that our access to less than market rates is causing a decrease in revenue and has negative effects on the local economy, paying soldiers well below market rates for the specialty services and adverse working conditions and requirements is a much larger problem for exactly the same reasons.

In a lower cost of living area paying greater than market rates, drives up the cost of labour in those regions, negatively affecting businesses that may not be able to compete.

In higher cost of living areas paying less than market rate decreases the available revenue cycling through the local economy stunting business opportunities in the community.

I think that paying us market rates would more than compensate us for reduction of subsidization we are suffering.

If we have to pay market rates, then the federal gov should have to too. Fair's fair after all.
 
I will toss in my experience with a move to a large city.  Looking to rent we found that the housing we would need for a our family was limited and the ones we did contact shut us down as soon as they found out we were one family.  Turned out all the landlords advertising the housing we needed at the time were looking for the university crowd and one even pointedly told me it would not be fair to them for him to rent to a family.  The only housing we could find during our HHT turned out to be the PMQ even though we were in a large city that you would normally expect to be able to find housing in.  Even if we had wanted to buy we couldn't have as the financial experts at SISIP advised me that not only couldn't I qualify for a mortage it was impossible for my family to be living off my income (unfortunately that leprechaun gold has run out).
 
No dog in this fight, but I can tell you that Federal government sell off of assets(office buildings) with subsequent leasing back turned into a disaster out here in Vancouver. I suspect every base is going to be a different story. Trying to peg the rent of PMQ’s to the outside is fraught with problems, while the area adjacent to the base might have high property values, the reality is the PMQ area might actually more reflect a older run down area across town. Also the number of services and amenities needs to be factored in as well as the amount of restrictions in what you can do. 
 
c_canuk said:
I think it’s funny people got excited at the first line of my previous post and apparently didn't read the rest before they replied.

Allow me to clarify.

Since it's fair on paper for everyone to pay market rates for everything; we should not be arguing to not pay market rates: We should be arguing for the federal gov to PAY US market rates for our skillsets and market rate compensation for the job requirements.

Currently our pay is standard across the board and, quite frankly, a lot lower than the market pays to hire the same EXACT qualifications and job requirements.

If the Federal Gov doesn't want to be responsible for supplying a standard set of services to provide a standard level of living, care and access to services; then they cannot ethically provide only a standard rate of pay in different markets ignoring the market rate.

Doubly so if it is important to not affect the local economy.

Paying a vast workforce less or more than market rates has significant effects on the local market.

If there is concern from TB and CRA that our access to less than market rates is causing a decrease in revenue and has negative effects on the local economy, paying soldiers well below market rates for the specialty services and adverse working conditions and requirements is a much larger problem for exactly the same reasons.

In a lower cost of living area paying greater than market rates, drives up the cost of labour in those regions, negatively affecting businesses that may not be able to compete.

In higher cost of living areas paying less than market rate decreases the available revenue cycling through the local economy stunting business opportunities in the community.

I think that paying us market rates would more than compensate us for reduction of subsidization we are suffering.

If we have to pay market rates, then the federal gov should have to too. Fair's fair after all.

There's merit in your argument, but who's going to step up first to have their pay cut?  You see, our pay actually is based on market rates, as negotiated by the Public Service unions.  Pay in the Public Service is occupation based (i.e. a CR and a GT with the same level of responsibility do not necessarily make the same rate of pay) and the Public Service unions definitely bring market rates into the discussion at the bargaining table and their negotiated pay rates take that into account.  However, military pay is, for the most part,* rank based.  Nevertheless, our pay is benchmarked against that of the Public Service.  Essentially, Public Service pay rates are punched into a formula, aggregated and combined with a number of other factors (i.e. our requirement to deploy, their entitlement to acting pay/overtime vs our non-entitlement to those things, the "military factor," etc) and from all of this come the military pay scales.  Although it may be fair to state that some military occupations are getting less than market rate for their skill sets, there are others that are getting more.  Considering though that in addition to our occupational skill sets, we are also required to have military (particularly leadership) skill sets, it is probably more appropriate that our pay be rank based than occupation based.  Keep also in mind that even if we are being paid less than market rates, we also have access to benefits (e.g. defined benefit pension, generous sick leave, generous annual leave, etc) and level of job security unheard of in the private sector and even in the Public Service.  Be careful what you wish for.

*Specialist pay rates for NCMs and Specialist officers bring a small element of occupation based pay into the equation.
 
so essentially, public service rates are also not local market rates.

Sounds like an issue the public service union could bring up.

Also, this is irrelevant. the CRA and the TB requires payment of local market rates. Existing deals and agreements to peg our pay to the PS does not invalidate that fact. The reverse is true.

Also, if you compare our actual line by line job descriptions good luck filling our positions for what we're paid from the local civy market

-on call 24/7
-unlimited liability
-can be ordered to move now to any location in the world
-no control on where job will be, and will be expected to relocate HG & E with less than 3 months notice on avg every 5 years
-subject to NDA and Military Law including recieving a criminal record for things that are not crimes in civilian law that will become impedments to international travel
-salaried but can be expected to work extended hours for long stretches of time with no expectation of compensation.

you're talking PMC rates at that point and those that work at the same level of proffesionalism we do don't come cheap.
 
c_canuk said:
Also, if you compare our actual line by line job descriptions good luck filling our positions for what we're paid from the local civy market

And that's exactly what the CF does in recruiting (along with training and retention).  You seem to have a misconception about the application of "market rates" in business.  There are two sides to every business contract - a buyer and a seller.  In terms of the labour market the CF is the buyer, the applicant is the seller.  The terms of that contract are very simple; the buyer sets all the terms and it is up to the seller to either accept or reject the terms of the contract, there is no negotiation.  In this matter, since the buyer has a monopoly on the type of job (soldiering), he is able to set those terms to his benefit.  The only effect that "market rates" (essentially the average of what similar services have sold for in the past) has on recruiting is making military service more or less attractive to those who do not necessarily want to be soldiers.
 
c_canuk said:
so essentially, public service rates are also not local market rates.

Sounds like an issue the public service union could bring up.

Also, this is irrelevant. the CRA and the TB requires payment of local market rates. Existing deals and agreements to peg our pay to the PS does not invalidate that fact. The reverse is true.

Also, if you compare our actual line by line job descriptions good luck filling our positions for what we're paid from the local civy market

-on call 24/7
-unlimited liability
-can be ordered to move now to any location in the world
-no control on where job will be, and will be expected to relocate HG & E with less than 3 months notice on avg every 5 years
-subject to NDA and Military Law including recieving a criminal record for things that are not crimes in civilian law that will become impedments to international travel
-salaried but can be expected to work extended hours for long stretches of time with no expectation of compensation.

you're talking PMC rates at that point and those that work at the same level of proffesionalism we do don't come cheap.

While I believe that the CAF compensation packages are for the most part fair, I think we must be cautious about the "greener grass" in the civilian workforce.  The same market forces that can drive up salaries also force businesses to manage their costs and get the most value out of each worker.  We have built up a lot of good will with the Canadian populace in the last decade, and I would hate to see that damaged by serving members being too precious about their entitlements and the unique nature of military service.  There are a lot of people who work very hard in this country who would kill to receive the compensation we do, and if they were aware of all of the benefits CAF members receive they might be a bit less sympathetic in our desires for improvements.

To highlight the specific points above with regards to comparing conditions of work:
-on call 24/7
There are a lot of civilian jobs with an on call requirement, and if you are a salaried (non hourly) employee or a contractor you may not receive compensation for responding to a call.
-unlimited liability
This is unique, and is captured in the "military factor" of our salary calculations.  However, keep in mind that CAF service is far from the most dangerous occupation in Canada, and the extent to which those dangers are captured in compensation varies widely.
-can be ordered to move now to any location in the world
This is somewhat unique (though it is a possibility in large corporations), and is captured in the "military factor".
-no control on where job will be, and will be expected to relocate HG & E with less than 3 months notice on avg every 5 years
The fact that the CF has the ultimate say on your posting is not the same thing as no control.  Career Managers are open to negotiation with the member.  I am aware of many RegF members who threatened release if they were posted away from a given location, and some arrangements are made for service couples, members who do not desire career advancement, etc.  There are also a lot of benefits associated with a posting to soften the blow.  Outside of a few (largely unionized and/or public sector) occupations, most civilians change jobs every 3-5 years (and not always by choice due to layoffs, mergers, etc.), and the circumstances associated with that transition can vary widely.  Sometimes, you will have to re-locate at your own expense to find your next job.
-subject to NDA and Military Law including receiving a criminal record for things that are not crimes in civilian law that will become impedments to international travel
The matter of transfering conduct sheet data to CPIC is still very much up for debate, and is not happening currently as far as I know.  I would be very surprised if non-criminal code offences will be transferred.  Another way of looking at this is the CAF retains personnel who commit service and criminal code offences (to include theft, drunkeness, misuse of property, etc.) that would get someone fired in a civilian workplace. 
-salaried but can be expected to work extended hours for long stretches of time with no expectation of compensation.
The general expectation for salaried, non unionized employees in the civilian workforce is that you work until your work is done.  Very few salary earners receive overtime pay, and the amount of extra work or time required and compensatory time off varies widely from company to company.  Hourly employees will receive overtime pay, but their hours can also be cut if there isn't enough work.  If you are a contractor (who by definition does not work set hours), your hours are completely driven by the contracted task.  Also, the CAF has mechanisms for compensating for members who work extended hours.  They include short leave, Land Duty Allowance and Sea Duty Allowance, each of which addresses a different type of "non-core" work. 

you're talking PMC rates at that point and those that work at the same level of professionalism we do don't come cheap.

This is true, and a key part of the compensation improvements made in the 1990s were associated with keeping quality people in the CAF. However, keep in mind that there is also a level of accountability in the civilian workforce that for the most part does not exist in the CAF.  If a non-unionized civilian employee makes a mistake, they could be fired the same day.  The mechanisms for releasing a member due to performance issues in the CAF are much more complex, lengthy and hard to execute.  I have seen many behaviors in CAF members employed in "front counter" roles that would have gotten them fired in an equivalent civilian workplace.

There may be some equivalent positions in the civilian workforce where the pay is better, but you must consider the CAF pension (which is unmatched in the civilian workforce, and represents a lifetime benefit), the health and dental benefits (which are excellent), the CAF provided training and education (which you are paid to complete instead of working nights or taking out a student loan to pay for), and the job security that the CAF offers when you are making comparisons.  Again, I am not saying that CAF members should not receive competitive benefits, but as a group I think we must be a bit more realistic about what those are. 

If this merits a thread split, please do so.
 
c_canuk said:
so essentially, public service rates are also not local market rates.

Sounds like an issue the public service union could bring up.

Also, this is irrelevant. the CRA and the TB requires payment of local market rates. Existing deals and agreements to peg our pay to the PS does not invalidate that fact. The reverse is true.

Also, if you compare our actual line by line job descriptions good luck filling our positions for what we're paid from the local civy market

-on call 24/7
-unlimited liability
-can be ordered to move now to any location in the world
-no control on where job will be, and will be expected to relocate HG & E with less than 3 months notice on avg every 5 years
-subject to NDA and Military Law including recieving a criminal record for things that are not crimes in civilian law that will become impedments to international travel
-salaried but can be expected to work extended hours for long stretches of time with no expectation of compensation.

you're talking PMC rates at that point and those that work at the same level of proffesionalism we do don't come cheap.

Go back and read my post again.  The Public Service unions do negotiate for market rates.  Granted, they end up with a national vice local rate in doing so, but then they never aim for the lowest regional rate.  Furthermore, the public service used to have regional rates, but the unions campaigned to get rid of them.  Our pay comparability formula is still an aggregate of all of this and regional differences in costs and compensation are addressed through PLD.

As for all your other points (24/7, overtime, unlimited liability, etc), all of those things ARE part of the pay comparability formula.  You actually receive a higher base salary than your PS benchmark because it includes a portion for overtime, acting pay, military duties/liabilities, etc.) and you get that higher pay, whether you do any of these things or not.

Finally, not paying market rates for PMQs is unfair to all the other CF members (i.e. the majority) who do NOT live in PMQs.  Why should a PMQ occupant have a lower cost of living than someone living on the economy? If a member doesn't think he's getting good value on his PMQ rent, he always has the option to look elsewhere.
 
My belief is that the CAF is able to find recruits not because it pays market rates, instead I feel recruits sign up because they believe in the job. If there were Canadians clamouring for our compensation package for the exact same work requirements, we wouldn't have several red trades and you know it.

To hire someone off the street to do my job today - with the job requirements and expectations, you would have to pay skilled oil patch worker rates if not higher. The Civilian equivalents that I work beside get paid CS2 and above and those designations do not suffer the work expectations I listed above. I feel you are grossly underestimating the value of what we bring to the table.

My point about the PMQs was that way back, because we were paid the same across the board regardless of local cost of living, institutions were set up to level the playing field. Those institutions are largely gone now, but we're still paid the same across the board. If the reasons to remove those support mechanisms was to avoid affecting the local economy, the same argument could be to pay us based on estimates to replace the entire CAF with off the street Canadians with the same skill sets for the same job requirements.

PLD is supposed to fix that problem, however it's not managed effectively. It seems quite petty for the federal government to chip away at these pieces of our compensation under the guise of market fairness, while ignoring the largest part of the CAF's effect on the local economy.

It seems the opinion of some is that we have to tighten our belts so we're fair to the locals, but when it's the federal governments turn to play fair, they just get to keep more money and play dumb.
 
c_canuk said:
My belief is that the CAF is able to find recruits not because it pays market rates, instead I feel recruits sign up because they believe in the job. If there were Canadians clamouring for our compensation package for the exact same work requirements, we wouldn't have several red trades and you know it.

To hire someone off the street to do my job today - with the job requirements and expectations, you would have to pay skilled oil patch worker rates if not higher. The Civilian equivalents that I work beside get paid CS2 and above and those designations do not suffer the work expectations I listed above. I feel you are grossly underestimating the value of what we bring to the table.

My point about the PMQs was that way back, because we were paid the same across the board regardless of local cost of living, institutions were set up to level the playing field. Those institutions are largely gone now, but we're still paid the same across the board. If the reasons to remove those support mechanisms was to avoid affecting the local economy, the same argument could be to pay us based on estimates to replace the entire CAF with off the street Canadians with the same skill sets for the same job requirements.

PLD is supposed to fix that problem, however it's not managed effectively. It seems quite petty for the federal government to chip away at these pieces of our compensation under the guise of market fairness, while ignoring the largest part of the CAF's effect on the local economy.

It seems the opinion of some is that we have to tighten our belts so we're fair to the locals, but when it's the federal governments turn to play fair, they just get to keep more money and play dumb.

Way way way back - long before either you or I joined.  Pay and compensation for the Canadian Forces was drastically overhauled in the 1960s.  Pay went up dramatically, the CFSA was introduced and PMQs ceased to be part of the equation.  DND/CFHA is, and has been for at least 45 years, strictly a landlord offering an option.  PMQs are not a benefit, nor should they be.  Charging market rates for them is not just about protecting the local marketplace, it's also about being fair to those members who do not live in PMQs.  By the way, DND/CFHA has no control over what determines the market rate.  That is set by CMHC.

Yes, there are red occupations, but these tend to be anomalies.  However, the CS occupations in the Public Service are also an anomaly.  To their great fortune, their union has managed to successfully negotiate a fairly high salary, for the moment
This is because there is a shortage and they're in high demand.  The marketplace, however, tends to seek equilibrium and in time, there will be more of them and their bargaining power will be reduced, resulting in less growth in their wages (PS pay rates generally don't go down, but their rate of increase can slow down).  What you don't seem to be grasping is that your pay (as well as mine) includes an element of their current good fortune.  The trouble is that boatswains, stewards, RMS clerks and infantry soldiers also reap the same reward.  Here's the kicker though, when CS pay rates begin to decline and some other PS occupation gets a boost because of market demand, we will also reap that benefit while the effect on us of a CS slow down in pay is minimal.  By and large, military compensation is greater than that in the Public Service for the same level of responsibility, notwithstanding that there are exceptions.  At this point in time, one of those exceptions happens to be right in your face, but most of us are doing pretty well.  Finally, don't forget that compensation is not just about salary.  It includes pension benefits, leave policy, job security, etc and even lifestyle and adventure.  Even if our salaries are lower than those available in the private sector or the Public Service, in my mind at least, the other benefits more than make up for it. 

Written while in a chalet overlooking the French Alps where I am currently only because of my membership in the CF...
 
Pusser said:
Finally, not paying market rates for PMQs is unfair to all the other CF members (i.e. the majority) who do NOT live in PMQs.  Why should a PMQ occupant have a lower cost of living than someone living on the economy? If a member doesn't think he's getting good value on his PMQ rent, he always has the option to look elsewhere.

This fucking statement bothers me.  I have never heard of anyone bitching because someone in a PMQ has a lower cost of living than someone living on the economy.  If they want to live in a much smaller house and pay lower rent, then go for it.  IF the member who decided to buy a house or rent on the economy feels slighted he/she can always get their ass added to the PMQ list.

It is nothing more than an excuse to raise the rent on what is for the most part lower quality housing.  I don't think it is unfair at all.  For the record I do not live in a PMQ but I do care about my troops and this is a weak excuse to take more money out of their pockets.

 
Dolphin_Hunter said:
This fucking statement bothers me. 
Then get over yourself.  He is right.  Living in a PMQ should not give the CAF member a higher income than his peers in the same unit and location.  Take your beef where it really belong; the way fair market value is calculated is flawed and it does not account for age and condition of the home.
 
So it's not right for one Cpl to have an unfair advantage over another Cpl, who makes the same monthly pay, by one having a 'cheaper' PMQ compared to a home owner with a mortgage.

So how the fuck is it 'alright' for all the people my rank who are posted to provinces who pay lower taxes to have 'an advantage' over me??

You can't pick and choose the 'this is unfair' stuff.  If you want to talk 'unfair advantage', then the discussion should be about a baseline fed and prov tax rate that keeps Cpl Bloggins, who is posted to NS, taking the same amount of his pay home as Cpl Smithers, who is posted to Esquimalt.
 
Eye In The Sky said:
So how the frig is it 'alright' for all the people my rank who are posted to provinces who pay lower taxes to have 'an advantage' over me??

You can't pick and choose the 'this is unfair' stuff.  If you want to talk 'unfair advantage', then the discussion should be about a baseline fed and prov tax rate that keeps Cpl Bloggins, who is posted to NS, taking the same amount of his pay home as Cpl Smithers, who is posted to Esquimalt.

This has been my biggest sticking point for the longest time. Why should a member be penalized because they lived in Ontario and come July 15th now lives in Nova Scotia... here's your increase in tax and btw you now owe us an extra $2500. Thanks for coming out!

Yes yes, the civilian market is the same, but often those people made that choice. The military members doesn't always have that say.

A baseline, across the board tax rate would be ideal. Yes, some would lose and some would win but you can't argue it wouldn't be fair.
 
MCG said:
Then get over yourself.  He is right.  Living in a PMQ should not give the CAF member a higher income than his peers in the same unit and location.  Take your beef where it really belong; the way fair market value is calculated is flawed and it does not account for age and condition of the home.

Well, wait a minute.  The same can be said then for the cost of the PMQ from base to base.  I was paying a far different rent in Calgary than was my counterpart in other parts of the country.  My salary was the same as Cpl "X" in NS, but his rent was substancially cheaper than mine.  Why should members who are living in the same type accomodation with the same salary be penalized across the board?  It's not really any different.
 
c_canuk said:
My belief is that the CAF is able to find recruits not because it pays market rates, instead I feel recruits sign up because they believe in the job. If there were Canadians clamouring for our compensation package for the exact same work requirements, we wouldn't have several red trades and you know it.

To hire someone off the street to do my job today - with the job requirements and expectations, you would have to pay skilled oil patch worker rates if not higher. The Civilian equivalents that I work beside get paid CS2 and above and those designations do not suffer the work expectations I listed above. I feel you are grossly underestimating the value of what we bring to the table.

I absolutely that the draw which motivates individuals to join and stay in the CAF is about the job and the lifestyle, not the compensation.  However, apart from the specific discussions regarding the method for calculating the fair market value of PMQs (which I think is very useful), the general tone of this thread has been a call for further entitlements to act as a "buffer" to address the unique conditions of military service.  My point is that there already are a number of buffers in the CAF compensation scheme, and that calling for more is pushing things a bit.

Red trades in the CAF are primarily the result of intake issues (ie recruiting system inefficiencies and capacity issues in the training system), and some broader demographic factors around baby boomers reaching CRA.  In those rare instances where a trade is red for an extended period due to a lack of interest, the signing and retention bonus system has been employed to great effect. 

"Skilled Oil Patch Worker Rates" were a result of result of a very specific set of market conditions, and I question their value as a broadly applicable yardstick.  Changes in those same market conditions have led to massive layoffs in the last year, and exposed significant inefficiencies in that industry which were previously glossed over by the massive profits driven by relatively expensive oil. The industry may be a bit more cautious as it recovers.

Having the benefit of living in both worlds, I think you are grossly underestimating the amount of work the average Canadian knowledge worker puts in for each dollar they earn, and would encourage you to look at the bigger picture (to include the unique benefit and job security points I mentioned in my original post) when making comparisons. 
 
jollyjacktar said:
The same can be said then for the cost of the PMQ from base to base. 
You are throwing red herrings into this discussion.  That difference is factored into PLD calculations.  If you don't like how PLD works, there are other threads for that.
 
Dolphin_Hunter said:
This ******* statement bothers me.  I have never heard of anyone bitching because someone in a PMQ has a lower cost of living than someone living on the economy.  If they want to live in a much smaller house and pay lower rent, then go for it.  IF the member who decided to buy a house or rent on the economy feels slighted he/she can always get their *** added to the PMQ list.

It is nothing more than an excuse to raise the rent on what is for the most part lower quality housing.  I don't think it is unfair at all.  For the record I do not live in a PMQ but I do care about my troops and this is a weak excuse to take more money out of their pockets.

Then you haven't been paying attention.  I've heard that complaint many times.  When I was on one base, the waiting list for PMQs was miles long and no one was happy.  Those in PMQs complained that their rent was too high and really screamed when there was an increase.  Those who weren't in PMQs complained that they were being denied access to the cheaper rents available in PMQs because notwithstanding that PMQs are supposed to be at market rate, the fact often is that they are still below what is actually available. 

To counter your statement, if members don't want to live in PMQs and pay the posted rent, then they always have the option to move out and live on the economy.  No one should gain an advantage, unavailable to others, simply because his name came to the top of the list.
 
MCG said:
You are throwing red herrings into this discussion.  That difference is factored into PLD calculations.  If you don't like how PLD works, there are other threads for that.

I disagree from the standpoint of the actual PMQ from base to base are of the same design, size, age and condition (more or less).  The differences between them are not markedly substancial enough where one could reasonably expect to charge for more features or comforts from one to the next.  (My experiences in Q living are from the early 90`s)  And it`s easy enough to fix that issue for you.  Charge the same, reasonable PMQ rent, regardless of location.  If member resides in the Q`s, then the PLD is adjusted for that member while doing so.
 
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