NJC Relocation Directive Frequently Asked Questions Approved by Treasury Board of Canada Secretariat March 2010 This document is prepared to assist relocating Employees in understanding the NJC Relocation Directive and to ensure correct and consistent application of the NJC Relocation Directive on a national basis.
Table of Contents Page Question 6 Q1. What are the conditions that must be met for the origin residence to be considered actively marketed? 6 Q2. When does the 40 km rule apply? 6 Q3. My service provider has charged more than the pre-negotiated rate allowable under the Integrated Relocation Program (IRP), but ensures me that I will receive a $100 rebate? 7 Q4. The benefits offered in the NJC Relocation Directive apply to the Employees and their spouse and/or dependants. Where the Employee and spouse are experiencing an ongoing marital breakdown (e.g. separation), what direction is provided in regards to benefit eligibility? 7 Q5. What is the intent of the NJC Relocation Directive with respect to mortgage portability? 7 Q6. What expenses can be reimbursed from the Personalized Fund? 7 Q7. Due to my relocation, my spouse is unable to find employment in his/her field at the new location. May I claim the cost of my spouse s training course to enable him to acquire new skills in order to secure employment? 8 Q8. I did not receive the entire balance of my Personalized Fund when requested, why? 8 Q9. Article 3.4.2.1.1 states that the Non Accountable Incidental Expenses and Transfer Allowances shall be paid 30 days in advance of the move date of the HG&E ( ). This section does not address whether or not savings/incentives added to the Personalized Fund can be released under the same guidelines. May I withdraw my savings/incentives earlier than this date? 8 Q10. Article 3.4.2.2 states that Employees shall receive a Transfer Allowance equivalent to two (2) weeks salary. How is this calculated? 8 Q11. When must I make the final decision on whether to sell my principal residence at origin or take the Real Estate Commission Savings incentive in lieu of sale benefits? 8 Q12: Does the Hotel-Motel Room Reduction Savings/ Incentive apply to all rooms utilized by the Employee s family? 9 Q13. My point of origin and destination are within reasonable commuting distance, and I wish to travel back and forth on my House Hunting Trip (HHT). What expenses are reimbursable? 9 Q14. As per the NJC Relocation Directive, I may be eligible for expenses related to the extension of my HHT for family issues or for finding permanent accommodation (other than my principal residence). If I have secured a replacement residence, may I extend my HHT for the purpose of finalizing the sale? 9 Q15. Article 4.10, Hotel/Motel Occupancy Principles, of the NJC Relocation Directive, identifies that a family size of 2 is entitled to 1 or 2 rooms. Does this imply that my spouse may be entitled to her own room? 2
9 Q16. Article 4.13 of the NJC Relocation Directive addresses the return transportation from the place of duty to the new location. Am I eligible to claim the mileage to and from the commercial carrier? 9 Q17. I would prefer to bring my children on my HHT, but it would be difficult to find immediate childcare at an unfamiliar location. Am I eligible to claim travelrelated expenses for my childcare provider to accompany us on the HHT? 10 Q18. My children/dependants are remaining at origin during my HHT. Are they entitled to a meal allowance? 10 Q19. Am I entitled to a second HHT because my first HHT was unsuccessful? 10 Q20. Because I must relocate on short notice, I do not have time to conduct a HHT. May I search for a principal residence upon arrival? 10 Q21. If I am already on duty at the new location, are additional days of Interim Accommodation, Meals and Miscellaneous Allowance (IAM&MA) authorized? 11 Q22. I have a special needs child who requires constant medical care. May I be reimbursed for expenses relating to a medical care attendant required to travel with us during our final move travel? 11 Q23. The NJC Relocation Directive stipulates that business class upgrade is not authorized for travel within Canada from either the Core Fund or Customized/Personalized Funds. Should I not retain the right to use the Personalized Fund as I please? 11 Q24. If I decide to upgrade my hotel room, am I eligible to claim these additional expenses from the Personalized Fund? 11 Q25. The NJC Relocation Directive states that Employees are eligible for professional cleaning of the former and new residences. What types of cleaning are covered? 11 Q26. Must reimbursed Rental Search Fees or Rent In Advance be deducted from purchase-related expenses? 12 Q27. Article 8.2 of the NJC Relocation Directive stipulates that Employees may request an extension to the prescribed time limits when selling a home. An extension may be requested in situations where the sale of the home is delayed due to exceptional circumstances. What is the intent of the NJC Relocation Directive as it relates to delaying the sale of the principal residence for reasons of spousal employment or completion of a dependant s school year? 12 Q28. When should I list my home for sale? 12 Q29. When selling my home in the province of Quebec, additional mortgage discharge fees were imposed upon me because the purchaser s notary refused to provide the vendors mortgage discharge/acquittance for the established tariff. Are these additional fees reimbursable under the Integrated Relocation Program (IRP)? 12 Q30. Article 8.9 of the NJC Relocation Directive confirms eligibility for the reimbursement of charges levied by the lender for the disposal of a first or second mortgage on the property, but not both. Are the charges reimbursed from the Core Fund, regardless of mortgage portability? 13 Q31. My property exceeds the lot size limitations outlined in the NJC Relocation Directive. Additional research may be required on the part of the appraiser, resulting in a higher cost, to complete the appraisal report. What portion is reimbursable under the Integrated Relocation Program (IRP)? 3
13 Q32. Under what circumstances may I claim mortgage-breaking penalty fees from the Personalized Fund? Is reimbursement dependent upon the portability factor of my mortgage? 14 Q33. Article 8.13.1 of the NJC Relocation Directive outlines the reimbursement of TDRA expenses if the Employee moves the household good and effects (HG&E) and family. However, my Realtor recommended leaving the furniture in the home, as it will facilitate the sale by remaining attractive to potential buyers. If I leave the HG&E in my home, will that affect the reimbursement of my TDRA expenses? 14 Q34. Article 8.13.2.a, Interim Accommodation, of the NJC Relocation Directive addresses TDRA benefits for Employees proceeding in advance of authorized dependants to the new place of duty. Are there limitations surrounding Employees without dependants who must proceed to the new place of duty? 14 Q35. As per article 8.14 of the NJC Relocation Directive, when meeting certain conditions, Employees may claim for weekend travel home expenses. Is there any flexibility surrounding this benefit, such as, traveling mid-week rather than the weekend? 15 Q36. The NJC Relocation Directive allows for the reimbursement of transportation, meals and incidentals during the return trip to finalize the sale of my principal residence. Can you confirm if lodging and parking expenses can also be claimed? 15 Q37. Does a return trip to affect the move also apply to short-notice relocations? 15 Q38. Article 9.13, stipulates that legal fees and disbursements are reimbursable, including applicable taxes. Does the Land Transfer Tax and municipal name change for tax rolls fall within the scope of reasonable disbursements? 15 Q39. The NJC Relocation Directive allows for one building/structural inspection from the Core Fund, but there are no provisions outlined for situations where a second building/structural inspection is required as well as follow-up inspections. Can you clarify this? 16 Q40. It is understood that the Mortgage Default Insurance (MDI) premium can be reimbursed when the premium is levied in one payment. Is it still reimbursable if the MDI premium is incorporated into my mortgage? 16 Q41. The NJC Relocation Directive identifies that the Mortgage Default Insurance (MDI) premium may be reimbursed when a homeowner transfers all or part of their equity to the new residence. I am a renter, and therefore, have no equity to transfer. Does this condition also apply to my situation? 16 Q42. The NJC Relocation Directive allows for the reimbursement of interest on a short-term personal loan when required for a deposit for the purchase of a principal residence. Does this benefit also apply when purchasing a new home construction where the deposit required is significantly higher? 16 Q43. The NJC Relocation Directive identifies article 9.18.c, $25,000 Subsidized Home Relocation Loan, as being applicable to an Employee purchasing a replacement residence at the new location before the principal residence at the former place of duty has been sold. Can article 9.18.c refer to renters at origin? 16 Q44. Article 11.5 addresses items that may be claimed as sundry accountable expenses. Is this an all-inclusive list? 17 Q45. Are the payments of local licenses for all members of a family reimbursed from the Core Fund? 4
17 Q46. The NJC Relocation Directive includes a part for Employee-requested relocations. Can you explain the administration of the $5,000 entitlement? 17 Q47. Am I entitled to the sale or purchase of a principal residence when relocating to or from an isolated post? 18 Q48. When proceeding to the new place of duty unaccompanied, are there any restrictions on my HHT entitlements? 18 Q49. Are Employee-requested relocations still administered as per Part XII of the current NJC Relocation Directive? 18 Q50. If I proceed unaccompanied to the new place of duty, will that change my Custom Fund calculations and/or Personalized Fund? 18 Q51. Article 13.6 identifies certain transferable savings to the Personalized Fund, such as savings for not storing major appliances. Would I also qualify for the Hotel-Motel Room Reduction Savings/ Incentive? 18 Q52. My Departmental National Coordinator (DNC) has advised me that my Storage In Transit (SIT) cannot exceed 30 days Am I responsible for any SIT charges in excess of 30 days? 19 Q53. During my move, representatives from the moving company first questioned me about my household goods and effects (HG&E) via phone and later did a quick walk through at my residence to estimate the weight of my HG&E. When I received the weigh bill, the final weight representing my HG&E was greater than the estimated weight and exceeded the maximum approved under the NJC Relocation Directive. Who is liable for this additional cost? 19 Q54. When the movers inspected my HG&E, it was not mentioned that specialized equipment would be needed to move my belongings. On the moving day, extra equipment was required to move the boxes, furniture, etc. Who is paying for this? 19 Q55. My relocation was authorized within a short time frame, and to date; no contact has been made by the movers. I m very concerned that I may not be able to meet my travel time frames. What do I do now? 19 Q56. I am an Employee subject to be relocated under the terms and conditions applicable to Employee-Requested Relocation. I understand this means I have limited funding assistance, but based on my own calculations, it appears that the $5,000 entitlement will not be enough. Am I going to have to pay for my moving costs in excess of the capped entitlement? How do I do that? 20 Q57. I am subject to relocation and my Personal Motor Vehicles (PMV) are being commercially shipped while my family and I travel by airplane to our new destination. The movers have advised me that they cannot guarantee the delivery of my vehicles for a specific day based on my occupancy date at destination. I have young children and need a vehicle. What can I do? 20 Q58. I am reading acronyms such as BGRS, CRSP, TBS, PMV, DNC, SIT, CRS, NJC, etc. What do they mean? 20 Q59: What is an Initial Appointee? 20 Q60: I am an Employee of the federal government working in Canada but residing in the USA. I have won a staffing competition and am subject to relocation within Canada. Am I entitled to a full relocation? 5
Q1. What are the conditions that must be met for the origin residence to be considered actively marketed? R1. Certain relocation benefits, such as Temporary Dual Residence Assistance (TDRA), can only be reimbursed if the principal residence at origin is listed for sale upon commencement of the relocation and considered to be actively marketed. A principal residence will be considered actively marketed for sale when: a) The principal residence is continuously listed for sale (except for brief interruptions e.g. to change brokers or listings) through a licensed real estate agent (Realtor ); b) The listing price is consistent with the appraised value determined in accordance with the Integrated Relocation Program (IRP) and the listing price is competitive based on market conditions as confirmed by provincial Real Estate Board statistics; c) The Employee is acting in good faith to dispose of the residence; d) No reasonable offers are refused; and e) The property is not rented to tenants for any period of time. Q2. When does the 40 km rule apply? R2. To ensure that benefits are administered within the intent of the NJC Relocation Directive, the 40 km rule refers to moving at least 40 km closer to the new place of work. Employees who choose to relocate their dependants and their household goods and effects (HG&E) to an alternate location in Canada will also receive applicable benefits, as identified in the NJC Relocation Directive. This includes, but is not limited to, disposal and acquisition of a principal residence and shipment of HG&E. In such cases, the NJC Relocation Directive is not restrictive and employers cannot direct Employees to where they must relocate their household goods and effects. The final decision as always remains with the Employee. If the relocation does not meet the intent of Canada Revenue Agency s 40 km requirement, all relocation benefits will become taxable. Q3. My service provider has charged more than the pre-negotiated rate allowable under the Integrated Relocation Program (IRP), but ensures me that I will receive a $100 rebate? R3. The Integrated Relocation Program (IRP) administered under the NJC Relocation Directive has an Open Broker Policy. This policy allows any and all service providers to participate in service delivery, as long as they meet the program requirements and charge only the prenegotiated fee as established in contract with the Contracted Relocation Service Provider (CRSP) for those services. However, as the Government of Canada pays the fees charged for the Third Party Service Provider s (TPSP) services, any rebate forthcoming MUST be turned over to the department. Under no circumstances should any relocating Employee be accepting a rebate cheque for services paid for by the Government of Canada. Furthermore, only the NET cost of the actual fee charges shall be claimed for reimbursement. This NET fee will be capped at the pre-negotiated fee established with the TPSP. Relocating Employees are not required to use participating TPSPs however; any fees reimbursed to the Employee will be capped at the established TPSP pre-negotiated rates. Any costs above these established rates are not reimbursable from any funding component. 6
Q4. The benefits offered in the NJC Relocation Directive apply to the Employees and their spouse and/or dependants. Where the Employee and spouse are experiencing an ongoing marital breakdown (e.g. separation), what direction is provided in regards to benefit eligibility? R4. It is the responsibility of the Employee to advise the CRSP of any ongoing marital breakdown. Once advised, the CRSP will seek direction from the Employee s DNC, who will make the final determination of eligibility for benefits on a case-by-case basis. No funds shall be released to the Employee until said direction is received from the DNC. Q5. What is the intent of the NJC Relocation Directive with respect to mortgage portability? R5. The Employee is responsible to confirm portability of their mortgage to the replacement residence. Additionally, the Employee must ensure the conditions of portability can be met prior to entering a purchase contract, by discussing these conditions with their financial institution prior to departing on the House Hunting Trip (HHT). The Employee is expected to enter into mortgage contracts which will allow portability on a subsequent transfer (excluding the $25,000 Subsidized Home Relocation Loan). Q6. What expenses can be reimbursed from the Personalized Fund? R6. When an Employee does not meet the conditions prescribed for specific benefits in the NJC Relocation Directive, reimbursement cannot be made from the Personalized Fund without Treasury Board of Canada Secretariat (TBS) authority as this fundamentally contradicts the intent of the NJC Relocation Directive (e.g. TDRA cannot be reimbursed from the Personalized Fund prior to the home being listed). However, where the Employee meets the criteria, but exceeds Core Fund limitations (e.g. receives 30 days IAM&MA from the Core Fund, but requires 35 days before possession date at destination), reimbursement can be made for additional, reasonable and justifiable expenses from the Personalized Fund, with the exception of amounts exceeding pre-negotiated third party service provider rates. Where the Employee is requesting reimbursement of an expense which is not specifically identified in the NJC Relocation Directive, but is reasonable, directly attributable to the relocation, and is supported by original receipts, reimbursement using the Personalized Fund is permitted. Further use of the Personalized Fund can be approved by the Regional Relocation Coordinator based on recommendation from the CRSP. Q7. Due to my relocation, my spouse is unable to find employment in his/her field at the new location. May I claim the cost of my spouse s training course to enable him/her to acquire new skills in order to secure employment? R7. Additional training or courses to provide the spouse with new skills or knowledge do not meet the intent of the employment assistance outlined in article 3.3 of the NJC Relocation Directive. Re-certification and/or re-licensing (to obtain documents in a new province that were already held at origin) are not identified in this article, but do meet the intent of the benefit. 7
Q8. I did not receive the entire balance of my Personalized Fund when requested, why? R8. For each relocation authorized where there is an entitlement to the Personalized Fund, the CRSP is required to retain 10% of the available funds. These funds will be released once the department authorizes the closure of the file and all outstanding advances and accounts/claims have been reconciled. Q9. Article 3.4.2.1.1 states that that the Non Accountable Incidental Expenses and Transfer Allowances shall be paid 30 days in advance of the move date of the HG&E ( ). This article does not address whether or not savings/incentives added to the Personalized Fund can be released under the same guidelines. May I withdraw my savings/incentives earlier than this date? R9. The time frame identified in this article applies equally to all amounts in the Personalized Fund, including any savings and/or incentives. Q10. Article 3.4.2.2 states that Employees shall receive a Transfer Allowance equivalent to two (2) weeks salary. How is this calculated? R10. The Transfer Allowance is calculated by dividing the Employee s gross annual salary at the time of appointment by 52.176 and multiplying this sum by 2 (weeks). The salary to be used does not include any additional amounts such as allowances or bonuses. Q11. When must I make the final decision on whether to sell my principal residence at origin or take the Real Estate Commission Savings in lieu of sale benefits? R11. An Employee who wishes to receive the savings for not selling their home must exercise this option within fifteen working days from the date the CRSP receives the appraisal report from the appraiser. It is the Employee s responsibility to maintain contact with the CRSP in order to inform the CRSP of this decision. Homeowners not wishing to exercise this option (and intend to sell the principal residence at origin) must actively market the home for sale within the same timeframe as mentioned above unless approval to delay the sale has been granted as per article 8.2. Any delay in listing the property for sale requires TBS approval. Q12: Does the Hotel-Motel Room Reduction Savings/Incentive apply to all rooms utilized by the Employee s family? R12: As identified in article 3.4.3, Core Benefit Transferable Savings/Incentives, this savings/incentive only applies when the Employee uses less than his/her Core room entitlement. 8
Q13. My point of origin and destination are within reasonable commuting distance and I wish to travel back and forth on my House Hunting Trip (HHT). What expenses are reimbursable? R13. When a commuting, rather than a conventional HHT, is pre-approved, and provided that the Employee does not stay overnight at the destination location, the following may be reimbursed: Meals and incidental allowances (up to 5 days; Employee and/or spouse or common-law partner from the Core Fund, children and/or dependants from Custom/Personalized Funds, see article 4.12) Return mileage (up to 5 trips, see article 4.13) Local mileage (up to 5 days, see article 4.14) Q14. As per the NJC Relocation Directive, I may be eligible for expenses related to the extension of my HHT for family issues or for finding permanent accommodation (other than my principal residence). If I have secured a replacement residence, may I extend my HHT for the purpose of finalizing the purchase? R14. When an extension to the approved days is requested for reasons other than those stipulated in article 4.8, reimbursement may expend from the Personalized Fund as per article 3.2.3.1 of the NJC Relocation Directive. Q15. Article 4.10, Hotel/Motel-Occupancy Principles, of the NJC Relocation Directive, identifies that a family size of 2 is entitled to 1 or 2 rooms. Does this imply that my spouse may be entitled to her own room? R15. The intent of the NJC Relocation Directive is to reimburse 2 rooms when deemed necessary by an Employee with a family size of 2. This would not apply for spouses or commonlaw partners traveling together. It would apply, for example, when a teenage child/dependant of the opposite sex is accompanying the parent. Q16. Article 4.13 of the NJC Relocation Directive addresses the return transportation from the place of duty to the new location. Am I eligible to claim the mileage conducted to the commercial carrier? R16. The intent of the NJC Relocation Directive is to offer flexibility to the Employee when traveling to the commercial carrier. Employees may choose to claim travel to the commercial carrier via commercial transportation (i.e. taxi) or claim one-way mileage from the principal residence to the commercial carrier, and one-way mileage upon return from HHT; from the commercial carrier back to their principal residence. Q17. I would prefer to bring my children on my HHT, but it would be difficult to find immediate childcare at an unfamiliar location. Am I eligible to claim travel-related expenses for my childcare provider to accompany us on the HHT? R17. The NJC Relocation Directive does not allow for the benefit to be exchanged. It is not the intent of the IRP to reimburse travel expenses for a childcare provider. The Employee has the option of leaving the children at origin and claiming for actual childcare expenses, or bringing the children on their HHT and claiming childcare expenses at destination. 9
Q18. My children/dependants are remaining at origin during my HHT. Are they entitled to a meal allowance? R18. Children/dependants remaining at origin, whether they require additional child/dependent care or not, are not eligible for the meal allowance. Children/dependants who proceed to destination are entitled to claim the meal allowance reimbursed from the Custom Fund in accordance with article 4.9, whether or not child/dependent care expenses are being reimbursed. Q19. Am I entitled to a second HHT because my first HHT was unsuccessful? R19. When a second HHT is required to secure a new permanent residence at destination, expenses can be claimed from the Personalized Fund; reimbursement will be subject to funding availability. Q20. Because I must relocate on short notice, I do not have time to conduct a HHT. May I search for a principal residence upon arrival? R20. As per article 4.20 of the NJC Relocation Directive, Employees who require HHT benefits after their arrival at destination are entitled to claim for dependent care, pet care, and/or on-site mileage/car rental in accordance with standard HHT provisions as outlined in Part IV. The conditions for reimbursement and limitations of these benefits are in accordance with those outlined in Part IV. Accommodations, meals and miscellaneous allowances shall be reimbursed in accordance with concurrently approved interim benefits (either IAM&MA or TDRA). Q21. If I am already on duty at the new location, are additional days of Interim Accommodation, Meals and Miscellaneous Allowance (IAM&MA) authorized? R21. Employees may be authorized, by their DNC, for up to 60 days of IAM&MA when required to relocate on short notice OR when they are already on duty at the new location when the relocation is authorized. When 60 days of IAM&MA are authorized, these are not in addition to the 30 days possible as per articles 5.4.1 and 5.7. The maximum number of days which can be authorized from the Core Fund, in accordance with Part V, under any circumstance is 60 days. As long as the conditions in articles 5.1 and 5.6 are met, these days may be divided to fall either before or after the packing and loading of the HG&E, to a maximum total of 60 days. The limitations on meal and miscellaneous allowances outlined in articles 5.9 and 5.10 will continue to apply to the initial days of IAM&MA (regardless of the total days approved). When storage in transit (SIT) is also required, the DNC can authorize, in accordance with article 11.7, up to 60 days of SIT when IAM&MA is also approved for the same period. For homeowners at origin, the expectation remains that the home will be appraised and listed for sale without delay after the relocation is authorized. Once listed, it is expected that approval will be sought for reimbursement under the provisions of Temporary Dual Residence Assistance (TDRA). The Employee shall not exhaust the 60 days of IAM&MA in order to delay the listing of the home in such an event, TDRA will be denied when requested. 10
Q22. I have a special needs child who requires constant medical care. May I be reimbursed for expenses relating to a medical care attendant required to travel with us during our final move travel? R22. With approval of the Regional Relocation Coordinator, the benefit, including round trip travel (transportation, meals, miscellaneous allowances and accommodations) can be reimbursed using available Custom funds. Q23. The NJC Relocation Directive stipulates that business class upgrade is not authorized for travel within Canada from either the Core Fund, or Customized/Personalized Funds. Should I not retain the right to use the Personalized Fund as I please? R23. The intent of the Personalized Fund is to reimburse actual, reasonable and justifiable expenses to the relocating Employee that are attributable to the relocation. As business class upgrades within Canada are not deemed to be reasonable and justifiable expenses, it is confirmed that such expense cannot be claimed from the Personalized Fund. Monies in the Personalized Fund are deemed public funds until they are paid out as a taxable benefit whereupon they are deemed the Employee s money. Q24. If I decide to upgrade my hotel room, am I eligible to claim these additional expenses from the Personalized Fund? R24. Reasonable hotel upgrades beyond Core limitations may be reimbursed from available Personalized Funds. Q25. The NJC Relocation Directive states that Employees are eligible for professional cleaning of the former and new residences. What types of cleaning are covered? R25. The professional cleaning provision in the NJC Relocation Directive is intended to reimburse cleaning of the former residence after the HG&E have been loaded, and at the new residence before or after the unloading of furniture (within a reasonable delay). The benefit does not include the rental or purchase of professional equipment. It also does not extend to cleaning, which would otherwise be considered regular maintenance of the home (including, but not limited to, the cleaning of: furnace/ducts, chimney, gutters/eaves-troughs, windows, pool/spa, etc.) Q26. Must reimbursed Rental Search Fees or Rent In Advance be deducted from purchase-related expenses? R26. When the services of a Rental Search Agency (RSA) or rent paid in advance benefits have been utilized to secure either permanent rental accommodation or temporary accommodation when proceeding on TDRA; RSA and Rent in advance will be abated from any subsequent purchase-related expenses. 11
Q27. Article 8.2 of the NJC Relocation Directive stipulates that Employees may request an extension to the prescribed time limits when selling a home. An extension may be requested in situations where the sale of the home is delayed due to exceptional circumstances. What is the intent of the NJC Relocation Directive as it relates to delaying the sale of the principal residence for reasons of spousal employment or completion of a dependant s school year? R27. It is not within the intent of the NJC Relocation Directive to defer the sale due to spousal employment or dependant schooling, as those decisions are deemed personal, not exceptional. Treasury Board of Canada Secretariat will allow for a deferment of sale under extreme circumstances only. For example, a child attending high school does not constitute an exceptional circumstance. Unless extreme circumstances warrant a delay (i.e. medical conditions), homeowners have two choices; take the incentive not to sell, or actively market the property for sale immediately. Q28. When should I list my home for sale? R28. It is the intent of the IRP that an appraisal will be conducted immediately following the relocation s authorization date with the CRSP. If the home is not listed within 15 business days of receipt of the appraisal report (in accordance with article 3.4.3.1), approval for delay of sale must be obtained from TBS, as per article 8.2 of the NJC Relocation Directive. Q29. When selling my home in the province of Quebec, additional mortgage discharge fees were imposed upon me because the purchaser s notary refused to provide the vendors mortgage discharge/ acquittance for the established tariff. Are these additional fees reimbursable under the Integrated Relocation Program (IRP)? R29. Background: Under the IRP, the CRSP reimburses relocated Employees for actual fees incurred to complete the sale of the property and/or to complete the purchase of a property as per the established legal fee schedule. In the province of Quebec, the purchaser s notary handles the sale transaction and therefore, there are no fees on the sale transaction. There are, however, fees and disbursements payable by the vendor to the purchaser s notary for the discharge of a mortgage (referred to as the acquittance of the mortgage in Quebec). The Quebec Civil Code indicates it is the responsibility of the purchaser's notary to perform the acquittance of the vendors' mortgage and only with their permission can it be done by another notary. In most cases, the vendor is obligated to use the purchaser's choice of notary. It is the intent of the NJC Relocation Directive that when the purchaser's notary refuses to provide the vendors' mortgage discharge/acquittance for the established tariff, that the additional mortgage discharge fees in relation to the sale can be reimbursed from the Core Fund. Q30. Article 8.9 of the NJC Relocation Directive confirms eligibility for the reimbursement of charges levied by the lender for the disposal of a first or second mortgage on the property, but not both. Are the charges reimbursed from the Core Fund, regardless of the mortgage portability? R30. The expenses incurred to register a discharge/release of the first or second mortgage (not both) can be reimbursed from the Core Fund. This would include administrative fees charged by the lender to prepare the discharge/release of mortgage. Mortgage discharge fees are separate from and are not dependent upon mortgage breaking penalties. A discharge is required to release (remove) the mortgage from the title of the property being sold in order to provide clear title. Mortgage discharge fees are charged as general practice by financial institutions, regardless of whether a mortgage is being ported or not. 12
Q31. My property exceeds the lot size limitations outlined in the NJC Relocation Directive. Additional research may be required on the part of the appraiser resulting in a higher cost to complete the appraisal report. What portion is reimbursable under the Integrated Relocation Program (IRP)? R31. When administering the IRP, an appraisal of the principal residence at origin is required to calculate funding in the Custom Fund, as well as to establish the current market value of the principal residence. It also provides documented evidence, should the Employee incur a loss on the sale of the home and also assists in confirming eligibility for TDRA and/or other benefits. While it is understood that sale benefits to which Employees are entitled to are limited to the proportional legal share or limited lot size, the appraisal is viewed as a requirement of the IRP, versus a benefit. Certain appraisers refuse to complete a regular appraisal for properties that are not deemed single-family dwellings or charge increased fees to appraise residences with acreage or that are income-producing. In these instances, additional appraisal fees, in excess of the established fees, are covered as a Core expense. Since the appraisal is a requirement of the IRP, Employees are not responsible for these additional costs, as this expense is not within their control. Q32. Under what circumstances may I claim mortgage-breaking penalty fees from the Personalized Fund? Is reimbursement dependent upon the portability factor of my mortgage? R32. When the mortgage-breaking penalty exceeds the NJC Relocation Directive s limitation of three month s interest or $5,000 whichever is lesser, expenses beyond this limitation can be claimed from the Personalized Fund. When an Employee originally rents at destination and subsequently purchases within the oneyear time frame, any mortgage penalty paid from the Core Fund will revert to the Personalized Fund, if portability was an option when the principal residence at origin was sold. As it relates to a new home construction at destination, Employees will be reimbursed their mortgage-breaking penalty from the Personalized Fund, if portability would have been an option had the Employee purchased a resale upon relocation. When the financial institution identifies that the mortgage at origin is portable upon meeting certain conditions, it is incumbent on the Employee to ensure that these conditions are met. Where the conditions are not fulfilled, and the mortgage is not ported, total reimbursement will be available from the Personalized Fund. Reimbursement will be based on the Employee providing documentation from their financial institution confirming the portion of mortgage-breaking penalties that do not include the following: Consolidation of credit cards Financing of PMV s Refunding of original mortgage incentive Home equity lines of credit As it relates to the refinance of a mortgage, it is not the intent of the NJC Relocation Directive to reimburse increases in mortgage breaking penalties, to Employees who refinance their mortgage after receiving their relocation notification. Employees purchasing at the new location and subsequently decide to refinance the mortgage on their unsold principal residence to access their equity, can claim the additional mortgage breaking penalty from the Personalized Fund. 13
Q33. Article 8.13.1, of the NJC Relocation Directive outlines the reimbursement of TDRA expenses if the Employee moves the household goods and effects (HG&E) and family. However, my Realtor recommended leaving the furniture in the home as it will facilitate the sale by remaining attractive to potential buyers. If I leave the HG&E in my home, will that affect the reimbursement of my TDRA expenses? R33. TDRA may be reimbursed as per article 8.13.1 of the NJC Relocation Directive when HG&E remain in the principal residence at origin, as long as the property is actively and competitively marketed for sale, is not rented to tenants for any period, and when all other conditions outlined in this article are met. However, when the Employee has no dependants, benefits under 8.13.1 shall be applied only after the HG&E have been shipped to destination. Q34. Article 8.13.2.a, Interim Accommodation, of the NJC Relocation Directive addresses TDRA benefits for Employees proceeding in advance of authorized dependants to the new place of duty. Are there limitations surrounding Employees without dependants who must proceed to the new place of duty? R34. Employees without dependants who qualify for the reimbursement of TDRA benefits at destination are entitled to lodging expenses inclusive of parking and laundry charges. The entitlement for the reimbursement equivalent to 65% of dinner rate does not apply to Employees without dependants. The rationale is that as meals are not being prepared in two separate places, no dual expenses are incurred as it relates to meals. Q35. As per article 8.14 of the NJC Relocation Directive, when meeting certain conditions, Employees may claim for weekend travel home expenses. Is there any flexibility surrounding this benefit such as traveling mid-week rather than the weekend? R35. Weekend travel home expenses are limited to transportation costs. Transportation costs may include commercial carrier, PMV, taxi, tolls and car rental. There is no meal or incidental allowances while conducting a trip and for the duration of a weekend travel home. Weekend travel home benefits are also extended to Employees (separated from their dependants) who receive a short notice transfer or who are already in function at destination where travel status ceases upon transfer notification, and who are approved to receive IAM&MA benefits in accordance with article 5.6. The rationale is that they were unable to effect the movement of household goods and effects due to the short notice. As it relates to specific days, it is understood that an Employee s schedule may provide them with the opportunity to travel home during mid-week versus during the weekends. It is confirmed that as long as the department approves leave, the Employee that qualifies for weekend travel home has the flexibility of traveling mid-week. The intent of the NJC Relocation Directive is to provide Employees an opportunity to travel home and reunite with their family and is not limited to a two-day return trip from Friday to Sunday. In addition, the travel may be scheduled to coincide with a Statutory Holiday (as long as the other constraints of this entitlement are respected). This does not qualify for travel to inspect the unsold property or to return home to effect the shipment of HG&E. 14
Q36. The NJC Relocation Directive allows for the reimbursement of transportation expenses, meals and incidentals during the return trip to finalize the sale of my principal residence. Can you confirm if lodging and parking expenses can also be claimed? R36. Actual and reasonable travel expenses may be claimed, which includes lodgings, parking, and applicable ferries and tolls. However, although the intent of the NJC Relocation Directive is to allow for travel related expenses, in order to finalize the sale of the principal residence, Employees must make every reasonable effort to complete the sale in the most cost-efficient manner, such as pre-signing documents prior to their departure to their new location. Q37. Does a return trip to affect the move also apply to short-notice relocations? R37. The intent of the NJC Relocation Directive is to allow for the reimbursement of travel related expenses incurred when Employees are required to return home to effect the movement of their HG&E. Upon arrival at origin, Employee may claim (IAM&MA) expenses as outlined in Part V of the NJC Relocation Directive. When authorized--renters on short notice relocations or who are already in function at destination where travel status ceases upon transfer notification; and who are approved to receive IAM&MA benefits in accordance with article 5.6--are also entitled to the benefits outlined in article 8.19, Return Trip to Effect Move. Q38. Article 9.13, stipulates that legal fees and disbursements are reimbursable, including applicable taxes. Does the Land Transfer Tax and municipal name change for tax rolls fall within the scope of reasonable disbursements? R38. Municipal Land Transfer Tax (such as that levied by the City of Toronto) meets the intent of this article and shall be reimbursed from the Core Fund. Additionally, fees associated with municipal name change for tax rolls are also reimbursable from the Core Fund. Q39. The NJC Relocation Directive allows for one building/structural inspection from the Core Fund, but there are no provisions outlined for situations where a second building/inspection is required as well as follow-up inspections. Can you clarify this? R39. When an Employee submits an offer to purchase, costs for a building/ structural inspection of the residence shall be reimbursed, at IRP ceiling rates, as follows: Core Fund: First building/ structural inspection on each residence where an offer to purchase is made (including occupied new homes under warranty) Customized/Personalized Funds: Second structural inspection on the same residence and any inspections that are not reimbursable under the Core Fund. As it relates to follow-up inspections, the NJC Relocation Directive provides a list of inspection types that may be reimbursed under the IRP. Follow-up building/ structural inspections recommended on the original inspection shall be reimbursed from the Core Fund. Such follow-up inspections include but are not limited to the list identified under article 9.14 of the NJC Relocation Directive. 15
Q40. It is understood that the Mortgage Default Insurance (MDI) premium can be reimbursed when the premium is levied in one payment. Is it still reimbursable if the MDI premium is incorporated into my mortgage? R40. Mortgage default insurance can be claimed, regardless if the payment is made in one lump sum or incorporated into the mortgage. When claimed, reimbursement is made in one payment, as if paid in one lump sum. The restriction outlined in the NJC Relocation Directive is hereby removed. Q41. The NJC Relocation Directive identifies that the Mortgage Default Insurance (MDI) premium may be reimbursed when a homeowner transfers all or part of their equity to the new residence. I am a renter, and therefore, have no equity to transfer. Does this benefit also apply to my situation? R41. When the Employee is a renter at origin, and therefore has no equity to transfer to a new home purchase, it is confirmed that they are entitled to claim 100% of the MDI premium from the Custom/Personalized Funds. Reimbursement is subject to the availability of funds. Q42. The NJC Relocation Directive allows for the reimbursement of interest on a shortterm personal loan when required to place a deposit for the purchase of a principal residence. Does this benefit also apply when purchasing a new home construction where the deposit required is significantly higher? R42. Interest reimbursed on a short-term personal loan, as it relates to a new construction, shall not exceed the amount of the loan necessary to confirm a commitment to purchase a resale residence of similar value. Progressive advances paid to the builder as part of the purchase agreement do not meet the definition of deposit and as such, interest on such a loan cannot be reimbursed from Core or Custom/Personalized Funds. Q43. The NJC Relocation Directive identifies article 9.18.c, $25,000 Subsidized Home Relocation Loan, as being applicable to an Employee purchasing a replacement residence at the new location before the principal residence at the former place of duty has been sold. Can article 9.18.c refer to renters at origin? R43. The benefit outlined in article 9.18.c may be applicable to Employees whether they were a homeowner or renter at the former place of duty. Q44. Article 11.5 addresses items that may be claimed as sundry accountable expenses. Is this an all-inclusive list? R44. The detailed list requires the addition of connection/disconnection of natural gas, a common public utility. However, if an Employee wishes to claim for any other expenses that are not listed in this section (e.g. cellular telephones, internet service, etc), they may claim them from the Personalized Fund. The reimbursement of expenses for installation labor costs and/or materials (other than the cost of altering locks) will not be reimbursed from any fund. 16
Q45. Are the payments of local licenses for all members of a family reimbursed from the Core Fund? R45. All drivers licenses, safety certificates, and vehicle registrations are reimbursable as sundry expenses from the Core Fund, regardless of how the vehicle is transported. Q46. The NJC Relocation Directive includes a part for Employee-requested relocations. Can you explain the administration of the $5,000 entitlement? R46. As per article 12.1.2.b, the Employee is entitled to a maximum of $5,000 of assistance. This sum helps cover expenses related to benefits outlined in Article 12.1.3 and expenses related to commercial travel and the shipment of HG&E. Where the expenses add up to greater than the $5,000 allotted, the Employee shall be personally responsible for these costs. Where the expenses total less than $5,000, the Employee has no entitlement to the balance remaining in the Custom Fund. In accordance with articles 12.1.5 and 12.1.6, the Employee is required to utilize the services of CRS for the movement of HG&E. Also, where the Employee intends to claim the costs related to commercial transportation through the IRP program, he/she must use the government contracted travel service provider for commercial travel bookings. Arrangements with these organizations shall be facilitated by the Relocation Coordinator. The Employee will make payment directly and promptly to the department for all HG&E shipment and seek reimbursement from the CRSP, subject to funding availability. The CRSP may provide an advance of funds to the relocating Employee upon request: this amount is to be used for authorized relocation expenses. Upon completion of the move, the Employee will submit original receipts to the CRSP for reimbursement of authorized expenses. Q47. Am I entitled to the sale or purchase of a principal residence when relocating to or from an isolated post? R47. When relocating to/from isolated post locations, Employees transferred for more than a year are administered under the NJC Relocation Directive, with restrictions on the total weight of the shipped HG&E and vehicles. Relocation benefits vary depending on the length of the employment at the isolated post. The provisions of the purchase and sale of a principal residence at the isolated post do not apply to Employees relocating to/from an isolated post for more than one year and less than three years. The provisions of purchase and sale of a principal residence at the isolated post location apply only to Employees relocating to/from an isolated post for an indeterminate position (more than three years). An Employee leaving an isolated post upon end of employment may be entitled to limited benefits under the NJC Relocation Directive. To confirm the eligibility criteria to the NJC Relocation Directive, the Department must refer to the Isolated Posts and Government Housing Directive (IPGHD) and will confirm applicable benefits to the CRSP. The Employee leaving the isolated post upon end of employment will receive limited benefits as outlined in the IPGHD and is not entitled to sale related expenses at the isolated post location or purchase related expenses at the retirement location. Employees relocating upon end of employment are not entitled to the transfer allowance. 17
Q48. When proceeding to the new place of duty unaccompanied, are they any restrictions on my HHT entitlements? R48. Employees who choose to proceed unaccompanied to the new place of duty are entitled to claim HHT benefits for themselves and their spouse. The intent of the NJC Relocation Directive is to offer the opportunity for the Employee s spouse or common-law partner to assist the Employee with securing a replacement residence. The NJC Relocation Directive is not restrictive in that the spouse is entitled to a HHT, although they may not relocate to the new place of work. Expenses outlined in part IV of the NJC Relocation Directive apply to Employees whose relocations are guided under part XIII. Q49. Are Employee-requested relocations still administered as per Part XII of the current NJC Relocation Directive? R49. Yes, Employee-requested relocations continue to be administered under Part XII of the NJC Relocation Directive. As a result of collective bargaining, managers can only negotiate for Employee-requested relocations up to $5,000. Q50. If I proceed unaccompanied to the new place of duty, will that change my Custom Fund calculations and/or Personalized Fund? R50. The Custom Fund will be limited to 35% of one-way transportation costs to the new place of work location (article 3.4.1.2) and the Personalized Fund will consist of the Non-Accountable Incidental Allowance ($650) and Transfer Allowance, equivalent to two (2) weeks salary (per articles 3.4.2.1 and 3.4.2.2), plus any applicable savings. Q51. Article 13.6 identifies certain transferable savings to the Personalized Fund, such as savings for not storing major appliances. Would I also qualify for the Hotel-Motel Room Reduction Savings/Incentive? R51. Employees on assignment for more than one (1) year, but less than three (3) years, may also qualify for and receive the Hotel-Motel Room Reduction Savings/ Incentive, as per article 3.4.3.4 of the NJC Relocation Directive. Q52. My Departmental National Coordinator (DNC) has advised me that Storage In Transit (SIT) cannot exceed 30 days. Am I responsible for any SIT charges in excess of 30 days? R52. The NJC Relocation Directive is a part of Collective Bargaining. As such, departments do not have the authority to negotiate the relocation assistance benefits identified therein. No one can reduce or exceed the amount of assistance identified in the NJC Relocation Directive without TBS authorization. In this scenario, SIT in excess of 30 days may be claimed from the Custom Fund, should it be beyond the Employee s control and requires Departmental National Coordinator pre- approval. Any additional SIT costs as a result of personal decisions, e.g. awaiting availability of new home construction or for a specific residence, may be utilized from the Personalized Fund; subject to the availability of funds. Any additional costs would remain a personal expense. Core Fund reimbursement is limited to the approved IAM&MA days. 18