Program Objectives

The Government of Canada has introduced a new employee relocation program for members of the Canadian Forces and of the Royal Canadian Mounted Police. The program is also applicable to excluded and non-represented employees for whom Treasury Board is the Employer and by extension to Governor-in-council appointees. The program increases the scope of relocation services available to relocated employees. It allows employees greater flexibility in the selection of services that better responds to their needs and those of their dependants while assuring that core elements of a move are provided as basic coverage. It also simplifies the administration of the relocation process. The program does not involve changes to the household goods removal services (shipment of furniture and effects).

The program is designed to better integrate into a seamless and efficient system the great variety of services and activities associated with a permanent relocation of a family. The program is based on a simplified and easily understood policy which is more tax effective from an employee's perspective and on a simplified administration system (i.e. direct payment to service providers via contractor). The program aims to make the relocation process more administratively efficient and effective, and to provide enhanced benefits and options to employees at current or lower program costs.

To this end, employees will be provided personal assistance and guidance on a pro-active basis on each step of a permanent relocation through access to professional relocation counselling and services. This will be achieved by partnering a large number of current key players and new associates. Hence, the third party service provider, Royal LePage Relocation Services Limited (RLRS), a nationally recognised relocation service provider will work closely with all those responsible in one form or another with a given relocation. This includes without fault the employee, the departmental relocation co-ordinators (both locally and nationally), the employee's selected service providers (sub-contractors) and the IRPP contract and project authorities. Involvement of the contractor with the household goods removal services units and the related removal service contracts with the van lines will be indirect and limited in scope.

The IRPP will be operational for an initial two-year period starting April 1, 1999, with two one-year renewal options. RLRS, the third party contractor, is responsible with the close participation of all the parties involved for the administration and delivery of the program on a flat fee per file basis. The contractor acts as the agent of the Government represented by the contract and project authorities. The contract signatories have a legal obligation to administer the contract according to the specified terms and conditions.

In order to provide quality service standards and timely delivery of services, the contractor is continuously expanding its association with service providers who wish to assist employees in one or more of the multiple aspects of a move to a new community. This is done initially through registration on the directory of service providers which include such professionals as realtors, lawyers and notaries, real estate appraisers, property management administrators, rental search services advisors and financial services managers. Any service provider who wishes to participate in the program is accepted into the relevant directory as long as the provider can guarantee meeting the IRPP requested standards, quality and price assurances. In other words, participation is open to all firms and their agents (without charge) willing to participate in the program and to respect the terms and conditions of the IRPP contract. The contractor agrees to distribute referrals for the purpose of maintaining a consistent market share among brokers/suppliers. Nevertheless, the relocated employee is the ultimate individual responsible for selecting a given provider from the directories or other source within contract limits (i.e. reimbursement of fees and charges within firm contract specifications). The participating service provider must understand and accept the conditions of the IRPP contract and both must sign written agreements (where applicable) to this effect.

The IRPP essentially comprises two components: a core component covering essential elements of a relocation, and a customised component allowing for the selection of benefits that meet an employee's needs.

The core component encompasses such services as global relocation planning and counselling assistance, destination orientation planning and counselling / consultative assistance to achieve door-to-door moves and financial planning assistance by making available a variety of tools and reference documents.

This component also includes the reimbursement of defined basic relocation expenditures incurred by an employee on relocation such as the disposal and acquisition costs associated with accommodation (owned or rented), transportation costs to the new place of duty, and the shipment of Household Goods and Effects. Example of reimbursements for owned accommodations include, but are not limited to real estate commission on the sale of a principal residence, legal or notarial fees and disbursements directly associated with the sale and purchase of a residence (i.e. clear property title and registration). Home Equity Assistance (CF and RCMP members only), house hunting travel expenses and home search assistance are also available.

The packing and removal of household goods and personal effects remain an essential element of the relocation program although its planning and delivery are provided through existing removal services units and current contracts between carriers and Public Works and Government Services Canada (PWGSC). No changes are anticipated to the structure of the household goods removal process other than perhaps a more seamless process from an employee's perspective.

The customised component is designed to provide members with the ability to claim expenses for other elements of a move not covered under the Core component. It is comprised of services and benefits/entitlements available to an employee on a "cafeteria style" basis. Services and benefits may include such provisions as the reimbursement of transportation and meal costs for children accompanying the employee or spouse on a house hunting trip. The intent is to allow employees to seek reimbursement for reasonable and recognised reimbursable expenses allowable by Canada Customs and Revenue Agency (CCRA). For ease of personal income tax filing, the contractor will provide the employee with a comprehensive expense report.

Counselling/consultation on the fiscal implications and obligations resulting from the choices made will be available to the relocated employee to allow for enlightened choices by the employee. The funds provided under the customised component are based on a funding formula. Reimbursement of customized benefits is limited by the funds available in an employee's customised envelope.

The funding envelope is composed of two elements, an Enhanced Core Funding Envelope and a Customized Funding Envelope. These elements are calculated using a pre-determined formula and is activated immediately upon the employee's referral to the contractor. Initially, the value of the funding envelope is estimated based on an employee's personal circumstances. Eventually the funding envelope is finalized based on the actual choices and actions of the employee. The elements on which the formula is based are slightly different for homeowners and renters.

For illustrative purposes only and on the basis of an abridged version of the elements and their application, the funding formula variables are as follows:

Expenses qualifying for reimbursement from the Customized Component are paid for from the Enhanced Core Funding Envelope first. Once all funds from the Enhanced Core Funding Envelope are used, then reimbursement is paid for from the customized funding envelope. Any unused portion of the customised funding envelope will be made payable to the employee upon completion of the move or the twelve (12) month time limitation which ever comes first. Therefore, at final reconciliation phase, any portion of the fund that may not be applied to non-taxable reimbursable expenses as per Canada Customs and Revenue Agency (CCRA) guidelines will become taxable income and a T4A (Supplementary) will be issued by RLRS. Any unused or remaining portion of the enhanced core funding envelope shall be returned to the Center and is NOT payable to the member.

Each participating organisation (department, agency, etc.) will be responsible for managing and funding the IRPP applicable to its operations within the terms and conditions of the IRPP standards outlined in the policy and contract and within their current appropriation levels. A departmental relocation co-ordinator will be identified in each participating organisation.

For the Department of National Defence, the Director Compensation and Benefits Administration (DCBA) will be the co-ordinator for military personnel and the Director Civilian Compensation Services (DCCS) will be the co-ordinator for civilian personnel.

RLRS will arrange for sub-contracted core component services to be provided by other suppliers (e.g. real estate agents, appraisers, etc.), monitor delivery, settle issues and invoices directly with other suppliers and seek reimbursement from departments.

The contractor will administer the funds which was transferred from user departments to cover expenditures initiated under the program. The contractor will also provide the employee with a comprehensive expense report to assist the relocated employee in preparing personal income tax returns.

Upon closure of an employee’s file, the contractor will electronically provide user departments with all pertinent information as to the commitments made by a relocated employee (i.e. waiver of future reimbursement of real estate fees where the employee opted for the rent incentive). This information will be needed in subsequent relocations.

The direct involvement of the contractor will normally be completed within the initial twelve (12) months from the date the employee’s file was referred to contractor. Extension may be negotiated with the departmental co-ordinator and project authority in exceptional circumstances.

The project authority (Treasury Board Secretariat) and contracting authority (PWGSC) will be responsible to resolve any outstanding issues arising from the application of the IRPP contract. The contractor acts as the agent of the Government represented by the contract and project authorities. The contract signatories have a legal obligation to administer the contract according to the terms specified without fault. It is expected that consultations of the players concerned at the departmental and regional levels will be the usual resolution venue for the majority of procedural differences or issues.

Relocated employees are requested to direct their enquiries on the IRPP to the local Base/Wing RLRS office. Only the national relocation co-ordinators or other named departmental officials will request information or interpretations from the Treasury Board Secretariat as the resources are too limited to assure a quality service on all calls.