Part III - Relocation Entitlements

3.1 Introduction

3.1.1 This directive provides a customized approach for each participant’s particular needs. It applies to eligible employees relocating within Canada. It provides employees with access to professional relocation services such as planning, marketing assistance and destination services throughout every step of the employee’s move.

3.1.2 This directive is designed to encourage and facilitate door-to-door moves thereby eliminating the need for additional assistance such as TDRA, etc., through improved move management.

3.2 Provision Overview

3.2.1 This directive is divided into two separate yet interdependent components: Core Fund and Personalized Fund. The Core Fund is further divided into two components, the Basic Core and the Core Customized. Entitlements listed in this section are explained in more detail in other sections of the Directive.

3.3 Core Relocation Fund

Basic Core Fund

3.3.1 The purpose of this section is to describe the Basic Core entitlements available to employees who are relocating. It includes those basic provisions covering the reimbursement of eligible expenses, such as real estate commissions and legal fees, which are directly reimbursed by the employer via its CRSP, and includes some enhancements such as relocation planning and destination services.

3.3.2 Basic Core entitlements within described parameters are 100% funded by the department unless specifically stated otherwise. For example, an employee who incurs real estate commission expenses for $15,000 would be reimbursed the $15,000.

3.3.3 For information on the conditions and limitations of particular entitlements, refer to the appropriate section of the Directive. The following is an overview of the entitlements available to relocating employees under the Basic Core Fund:

An Overview

3.3.4 While the utilization of the Basic Core Fund of this directive is not mandatory, there is no provision under any circumstances for those items that are not used, to be exchanged or assigned any monetary value which could be added to the Core Customized Fund of the Directive. The employee who chooses not to use the Basic Core Fund entitlements forfeits them. For example, an employee who opts not to go on a HHT foregoes a Core entitlement and will not receive a monetary value for this action.

Core Customized Fund

3.3.5 The Core Customized Fund includes items that can be reimbursed, up to the value calculated from pre-budgeted amounts within the Core Customized Fund entitlements.

3.3.6 This fund is provided by the employer to allow employees to claim other elements of a move that are not covered under the Basic Core Fund. It provides the flexibility to choose items that best meet the employees’ relocation needs.

3.3.7 The amount of money available in an employee’s Core Customized Fund is determined by the funding formula (see Appendix B) and is different for each employee based upon his/her personal circumstances. Since this fund is for the sole purpose of enhancing a move, unused or remaining monies shall be returned to the department and are not payable to the employee.

3.3.8 The Core Customized Fund cannot be used to supplement expenses covered by the Personalized Fund.

3.3.9 For information on the conditions and limitations of a particular entitlement, refer to the appropriate section within this directive. The following is an overview of entitlements available to relocating employees under the Core Customized Fund:

• Adjustments/alterations to furniture/fixtures
• Additional appraisals costs
• Additional insurance (shipment of HG&E)
• Boarding of pets (HHT)
• Bridge financing - interest only
• Building inspection
• Car rental – upgrade
• Crating
• Dependant care
• Dependants - travelling expenses
• HHT/DHIT additional expenses/days
• Home relocation loan – interest
• Home renovation (disabled family)
• Incidental relocation expenses
• Interim accommodations, meals and miscellaneous relocation allowance
• Marketing incentives
• Miscellaneous shipping expenses
• Mortgage default insurance
• Premium professional cleaning expenses
• Property management fees
• Property maintenance fees
• Shipment of antiques/art
• Shipment of boats
• Shipment of pets (with certain limitations)
• Shipment of RVs
• Shipment of 2nd and additional PMVs
• Shipment of trailers
• Short term loan - interest
• Spousal services
• Travel expenses for dependants
• TDRA inclusive of rent in advance

3.3.10 Calculation of the Core Customized funding shall be determined from the chart found in Appendix B. For more detailed information on the conditions and limitations on any part of the calculation, please refer to the appropriate area within this section.

1. Real Estate Commission - The first element used to calculate the Core Customized Fund varies based upon the accommodation status at the time of relocation notification as follows:
   1. Homeowner: the greater of $1000 or 35% of the real estate commission payable based upon the established appraised value of the home to a maximum of $5,250. (applicable taxes excluded);
   2. Renter: A renter at origin will be credited with $1,000;
   3. The sale price of the principal residence will be used in lieu of an appraisal to establish the funding envelope should an employee’s principal residence be sold within the time that a letter of offer has been received and before the consultative process commences with the CRSP.
2. Transportation of Family - The second element used to calculate the Core Customized Fund is the cost of one-way transportation to the location of the new workplace.
   1. For calculation purposes only, the funding will be based on the distance, one-way, between the former and new workplace, multiplied by the family size, multiplied by the appropriate kilometric rate as per the Department of Finance annual rate (rate based on point of origin), and multiplied by 35%.
   2. In those instances where the employee and dependants are transported to the new destination via the employer’s owned/leased transportation, employees will not be entitled to this element of the Core Customized Fund and the mileage calculation from the origin post to the new post will not apply.
3. Transportation of Household Goods - The third element used to calculate the Core Customized Fund is based upon the cost of shipping an average of 1,000 lb/453.60 kg household goods per unit/room from one location to another. Household goods exclude vehicles of any kind.
   1. Qualifying Rooms Include: kitchen, bedrooms (including bedrooms in finished basement), living room, recreation room, family room, dining room, basement, garage (not condos and apartments), out-building/storage shed (limit of one), storage room (separate from apartment) confirmed via appraisals for home owners and a signed listing for renters.
   2. An employee sharing accommodations is entitled to shipment of HG&E weight factor based on the rental formula. Example: 3 people rent a 3-bedroom house and rent is based on “the/a room”. The employee is entitled to the weight factor of one (1) room. If the rental formula is based on the entire premises divisible by the number (3) of shared tenants, then the employee is entitled to 1/3 of the entire number of rooms.
   3. This applies to articles shipped under the Core Fund that the moving firm will accept on a straight-weight basis only (policy centre confirmed rates).
   4. In those exceptional cases where labourers are flown into remote communities for packing, etc., this cost will be excluded from the formula configuration being used.

3.3.11 Spousal Services - The following services provided to the employee’s spouse or common-law partner may be reimbursed from the Core Customized Fund:

1. employment search;
2. employment assistance;
3. travel to/from interviews;
4. preparation of CV; and
5. photocopy and transmittal costs for transcripts of academic records.

3.3.12 Expenses are subject to CRA policy and guidelines.

3.3.13 Receipts are required.

3.3.14 A taxable benefit could result from these reimbursements.

3.4 Personalized Fund

Purpose

3.4.1 The amount of money in the Personalized Fund is generated from savings/incentives and allowances as described in subsection 3.4.5.

3.4.2 Reasonable and justifiable expenses exceeding the Core Fund limitations, which fall within the intent of this directive and are supported by original receipts, may also be claimed from the Personalized Fund.

3.4.3 The employee will have the final decision on how the Personalized Fund is to be expended; however, amounts that exceed third-party rates/fees (e.g. real estate commissions, legal fees, inspection fees, etc.) will not be reimbursed.

3.4.4 Upon completion of the move or at the end of one year, whichever comes first, any remaining monies from the Personalized Fund will be paid out to the employee. It should be noted that any pay out from the Personalized Fund is taxable.

3.4.5 Calculation of the Personalized Fund – The calculation of the Personalized funding formula shall be determined from the chart in Appendix C. For more detailed information on the conditions and limitations on any part of the calculation, please refer to the appropriate area within this section.

1. Non-Accountable Incidental Expenses Allowance - Employees shall receive the Non-Accountable Incidental Expenses Allowance credited to the Personalized Fund in an amount of $650. This allowance shall be paid 30 days in advance of the move date of the HG&E.
2. Transfer Allowances - Employees shall receive a Transfer Allowance equivalent to two (2) weeks salary. The allowance is based on the annual salary effective on the date of appointment at the new location and shall be paid 30 days in advance of the move date of the HG&E.

3.4.6 Transferable Savings to Personalized Fund - Employees may increase their Personalized Fund by realizing savings in the following ways:

1. Real Estate Commission Savings - Employees who elect not to sell their homes at their former workplace may transfer 80% of the real estate commission fees that would have been payable had the home been sold (taxes excluded) to the Personalized Fund;
   1. the employee must exercise this option within fifteen working days of receiving the first appraisal report. For greater clarity, subsequent appraisals, if any, do not extend the elect not to sell period;
   2. the amount payable is calculated on the appraised value at pre-negotiated real estate commission rates, capped at $12,000;
   3. those taking this credit must sign a waiver foregoing any future reimbursement by the Crown of real estate fees, legal fees or other related disposal costs for the property in question; and
2. Savings from a Shorter House Hunting Trip (HHT) - Employees authorized to drive 650 km or less one-way and who have successfully completed the HHT in less than 5 days may transfer 100% of all lodging, meals, and incidental savings for the unused days (capped at $250) to the Personalized Fund. A normal length HHT consists of the following:
   1. 5 days meals and incidental allowance (HHT) + 2 days (travel status);
   2. 5 nights accommodation (HHT) + 1 night accommodation (travel status);
   3. for example, an employee and spouse or common-law partner departed on Sunday and returned on Wednesday used 3 days meals and 3 nights accommodation. The employee could transfer the cost of 2 days meals for each of the employee and the spouse or common-law partner and 2 nights accommodation and 2 days incidentals up to a maximum of $250 to the Personalized Fund; or
3. Incentive for Staying over a Saturday Night - Employees on HHT who fly and arrange their itinerary so that they save the department airfare costs by staying over a Saturday night at destination shall receive $250 into their Personalized Fund.
   1. Savings are based upon return full fare economy airfare from point of origin to final destination, direct/non-stop (except when the carrier forces a connection/stopover such as flight from Halifax to Whitehorse);
   2. Stay over must be at destination, not en route;
   3. Does not apply to employees relocating into Crown homes or facilities;
4. Hotel-Motel Room Reduction Savings/ Incentive - An employee who uses less than his or her hotel room entitlement (see section 4.9), based on family size, shall receive a flat rate incentive of $50.00 per night which will be transferred to the Personalized Fund;
5. Transportation of Household Goods Below the Pre-move Estimate - When an employee reduces the amount of HG&E being shipped under the core envelope to the new location they qualify for the Transportation of Household Goods Below the Pre-move Estimate incentive. The incentive is based on the difference between the CRS pre-move estimate conducted by the van lines prior to the move and the actual weight of goods which are shipped. The employee whose entire shipment of HG&E is below the established pre-move estimate shall have 80% of the savings resulting from the lower amount shipped transferred to their Personalized Fund. This entitlement is subject to the following:
   1. the shipment of vehicles are not included for calculation purposes; and
   2. employees who are proceeding unaccompanied are not entitled to this benefit.