Initial Appointees Relocation Program. Frequently Asked Questions. Approved by Treasury Board of Canada Secretariat March 2010

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1 Initial Appointees Relocation Program Frequently Asked Questions Approved by Treasury Board of Canada Secretariat March 2010 This document is prepared to assist newly appointed employees in understanding the Initial Appointees Relocation Program and serves to ensure correct and consistent application of the Relocation Program on a national basis.

2 Q1. Who pays for the relocation expenses incurred by newly appointed employees? R1. Relocation assistance will be provided to each successful candidate/newly appointed employee entering the employ of the Federal Government for the first time. This assistance is in the form of $5,000, advanced by the hiring Department/Agency to Brookfield Global Relocation Services (Brookfield GRS) who is the current relocation service provider on contract with the Federal Government to provide relocation assistance to newly appointed employees. Any unused amounts will be reimbursed to the Government of Canada. Q2. How is the Contracted Relocation Service Provider (CRSP) informed that a newly appointed employee requires relocation assistance? R2. Upon receipt of the signed letter of offer, departmental human resources personnel must contact their relocation program (RP) Departmental Relocation Coordinator who will register the newly appointed employee with the relocation service provider, Brookfield GRS via their secure website: The updated list of Departmental National Coordinators is located at the following website: All newly appointed employees, other than EX/GIC, fall under the Initial Appointee Relocation Program. Benefits are not negotiated as each newly appointed employee receives the same assistance. Q3. What services does the CRSP offer to newly appointed employees? R3. The CRSP counsels employees on the best application of the funding available to them based on their personal situation and specific requirements. They will also advise on how to utilize the funds available in the most tax effective manner. The provider will further assist employees in managing their funding according to policy requirements. Q4. Who pays the CRSP? R4. The hiring Department/Agency advances $5,000 to Brookfield GRS and pays for the contracted fees of $340. At the conclusion of the relocation, and after file reconciliation, Brookfield GRS will reimburse all unused funds to the Crown. Approved by Treasury Board Secretariat - March

3 Q5. Previously, managers were able to offer relocation assistance estimated to be more than $5,000. Can this continue? R5. The objective of this policy amendment is to ensure that all newly appointed employees (other than EX/GIC) receive fair and evenly balanced treatment. The Treasury Board of Canada Secretariat (TBS) recognizes that special circumstances can require funding beyond the $5,000 limit. In such cases, the newly appointed employee s manager must provide full justification to their Departmental National Coordinator (DNC), for onward submission to TBS. This justification will substantiate why the limit needs to be exceeded and by how much it is expected to be exceeded. Section 1.14 of the Initial Appointees Relocation Program addresses essential staffing assistance. Q6. TBS has issued a bulletin advising that certain financial authorities were delegated to Deputy Heads (DH), allowing them to approve up to $10,000 towards recruitment of a newly appointed employee. What effect does this policy change have on this delegation? R6. It does not change the delegation. The special delegation for recruitment has been and remains subject to TBS s approval of business cases for all relocation related files on an exception basis. Q7. Is the two (2) year service agreement still in effect? R7. Yes, it is specifically addressed in Section 1.02 of the Initial Appointees Relocation Program. The policy change, in place since December 1, 2007, affects funding assistance only. Q8. Are employee-requested relocations still administered under Part XII of the current NJC Relocation Directive? R8. Yes, employee-requested relocations continue to be administered under Part XII of the NJC Relocation Directive. At this point, managers can only negotiate for employee-requested relocations. Once the current cyclical review has been concluded this part will be revised to reflect any necessary changes. Q9. What is the duration of a house hunting trip (HHT) for a newly appointed employee? R9. The Initial Appointees Relocation Program offers an entitlement for a HHT to newly appointed employees. The entitlement is limited to 5 days of house-hunting at destination. Approved by Treasury Board Secretariat - March

4 Q10. Can a newly appointed employee claim for expenses incurred to bring their children on a HHT? A10. No, the newly appointed employee cannot claim for expenses incurred to bring their children on their HHT. The Relocation Program allows for only basic expenses to be reimbursed. As such, bringing children on a HHT is considered an enhanced benefit. Q11. Can newly appointed employees claim for a car rental during their HHT? A11. Yes, newly appointed employees may rent a vehicle at destination during their HHT and seek reimbursement upon their return. Q12. Can newly appointed employees delay the shipment of their household goods and effects (HG&E) and the relocation of family members? A12. Newly appointed employees are expected to relocate without delay. Upon acceptance of the employment offer, it is expected that the newly appointed employee will commence relocation activities. Under extenuating circumstances, should a newly appointed employee not wish to initiate any relocation activities, a delay in relocation would have to be approved by TBS and substantiated by the Departmental National Coordinator. Generally speaking, the move will occur and relocation expenses will be claimed within 30 days of arrival at new place of work, as outlined in Section 1.09 of the Initial Appointees Relocation Program. However, the family is not required to move within the 30 days and there is place for some flexibility. In many instances, newly appointed employees are expected to report at their place of work within a short period of accepting the offer letter. Consequently, they require a certain period of time for house hunting, disposing their previous residence and acquiring a new residence. It is reasonable for the relocation to occur within a few months from the registration date; however the relocation file must be closed upon conclusion of the move or 12 months from registration date, whichever comes first. When the newly appointed employee precedes the family at the new place of work, there is no entitlement for the employee to return home and assist with the move. Choosing to precede the family does not qualify the employee to a return trip to assist for the shipment of HG&E, as this entitlement does not exist for newly appointed employees. Furthermore, under no circumstances will newly appointed employees be entitled to claim for Temporary Dual Residence Assistance (TDRA) when leaving the family behind, or for any other reason, as this benefit does not exist for newly appointed employees. Q13. When a newly appointed employee relocates to Canada from outside the country, can they claim expenses incurred outside of Canada? A13. Newly appointed employees can only seek reimbursement for expenses incurred upon entering Canada. Exceptionally, the cost to travel to Canada and the shipment of HG&E can be claimed, as the expenses end in Canada. However, expenses such as, but not limited to, interim accommodation, meals, and cleaning of a residence incurred outside of Canada cannot be claimed. Approved by Treasury Board Secretariat - March

5 Q14. Can a newly appointed employee be reimbursed for more than one mode of transportation during travel to the new place of work? A14. Normally, only one mode of transportation is authorized when traveling to the new location. Should exceptional circumstances warrant a second mode of transportation for the employee s family members, Departmental National Coordinator approval is required. Q15. When more than one person in a household accepts employment with the Federal Government, are both newly appointed employees entitled to relocation benefits? A15. In theory, each newly appointed employee is eligible for relocation assistance. However, benefits claimed are to remain within the intent, scope and limitations of the Initial Appointees Relocation Program. Only one Non-Accountable Incidental Allowance of $650 can be claimed per household upon relocation. Q16. Are there any guidelines on the number of days interim accommodation and meals can be claimed? A16. Generally, interim accommodation should not exceed 15 days. When circumstances outside the employee's control warrant, up to 15 additional days can be reimbursed, for a maximum of 30 days in total. Reimbursement is subject to funding availability. Q17. Is a newly appointed employee entitled to claim for storage expenses for their HG&E? A17. Storage in transit (SIT) expenses are normally not reimbursed. It is expected that the employee will arrange for a door-to-door move and execute a door-to-door relocation. Should extenuating circumstances warrant the payment of SIT, reimbursement will require preapproval from the Departmental National Coordinator. Q18. Can Departments/Agencies offer less than $5,000 as relocation assistance to the newly appointed employee? A18. The Initial Appointees Relocation Program was created to provide consistency of relocation benefits for newly appointed employees to the Federal public service. Departments/Agencies cannot negotiate benefits for less than $5,000. The employee is provided with the opportunity to claim expenses up to $5,000; however, the amount of $5,000 is made available for each authorized relocation. Approved by Treasury Board Secretariat - March

6 Q19. Is the assistance provided to a newly appointed employee pro-rated based on the term of the assignment? A19. Relocation assistance is not pro-rated and each newly appointed employee can claim up to $5,000 for relocation expenses. When the term is less than two years, funding is recovered, proportional to the period by which the service falls short of the original duration of the term. The department would administer this recovery. Q20. Can a Department/Agency deny relocation benefits to a newly appointed employee who wants to move less than 40 km closer to the new workplace? A20. When the distance is less than 40 km, relocation is not normally authorized. In unusual and exceptional circumstances, relocations less than 40 km may be approved by the Departmental National Coordinator. An example where a relocation of less than 40 km would be approved would be to allow an employee whose family requires accessible transit, to relocate closer to a designated accessible bus route. Reimbursement of expenses for a relocation less than 40 km are fully taxable benefits. Q21. Are newly appointed employees obligated to move their HG&E under the Central Removal Services (CRS) contract? R21. No; newly appointed employees may move their HG&E through the supplier of their choice. Reimbursement in part or in full is subject to funding availability. Q22. Are newly appointed employees obligated to make their commercial travel arrangements through the federal government s contracted travel services? R22. No; newly appointed employees may arrange commercial travel through the carrier of their choice. Reimbursement in part or in full is subject to funding availability. Q23. As a newly appointed employee to the Federal public service, am I restricted in the services I engage in during my relocation? R23. The employer has allocated a sum of $5,000 to each newly appointed employee s relocation file to assist in defraying relocation expenses. This funding cannot be applied against the sale or acquisition of a principal residence. However, as a newly appointed employee, you may engage in any third party service provider to ship your personal belongings or to issue an airline ticket. All fees associated with these services are restricted to the Federal Government s rates under the Integrated Relocation Program. Approved by Treasury Board Secretariat - March

7 Q24. I am a newly appointed employee to the Federal public service. How do I get access to a relocation package? R24. Once the engaging Department/Agency has registered your relocation with Brookfield (GRS), Brookfield GRS will be in contact with you. All original receipts must be submitted to Brookfield GRS for reimbursement. Q25. As a newly appointed employee, can I use Central Removal Services (CRS) or the federal government s contracted travel services? R25. No. Reimbursement is made directly to you for relocation costs incurred up to the funding allocated. Approved by Treasury Board Secretariat - March