3.1 Introduction
3.1.1 This relocation directive provides a customized approach for each participant's particular needs. It is an NJC Integrated Relocation Directive for 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 The NJC Integrated Relocation Directive is designed to encourage and facilitate door-to-door moves thereby eliminating the need for additional assistance such as Temporary Dual Residence Assistance (TDRA), etc., through improved move management.
3.2 Relocation - Integrated Relocation Program (IRP) Directive
The Directive is divided into three separate yet interdependent sets of entitlements: Core Component, Customized Component, and Personalized Component.
3.2.1 Core Relocation Component
3.2.1.1 Purpose
The purpose of this section is to describe the Core entitlements available to employees who are relocated. It includes those basic provisions covering the reimbursement of eligible expenses, such as real estate commissions, legal fees, which are directly reimbursed by the employer via its Third Party Service Provider and includes some enhancements such as relocation planning and destination services.
3.2.1.2 Funding Overview
Core entitlements within described parameters are 100% funded by the department unless specifically stated otherwise.
Example:
An employee who incurs real estate commission expenses for $15,000 would be reimbursed the $15,000.
The following is an overview of Core entitlements available to employees. Full information on the conditions and limitations of particular entitlements are included in the appropriate section of the Directive.
An Overview
Appraisal Fees - sale of home
Building/Structural insp. (on purchase)
Business telephone calls - HHT
Car Shipment - 1 private motor vehicle (PMV)
Cleaning of one residence
Counselling - relocation planning
Dependent Care
House Hunting Trip expenses
Interim accommodation, meals & miscellaneous allowance
Legal Fees - acquisition of home
Legal Fees - disbursement
Legal Fees - sale of home
Legal Fees - acquisition of lease
Long Term Storage (IP/LDP only)¤ Mortgage breaking penalties - non-portable mortgages only
Mortgage interest differential on purchase (non-portable mortgage)
Power of Attorney Fees
Private Sale Assistance
Real Estate Commission (sale)
Rent in advance of a move
Rent and lease liability
Rental Agency finding fees
Shipment of household goods 20,000lb/9,071.94kg
Shipment of Mobile Home - with limitations
Storage in transit
TDRA 6 months of actual expenses
Travel to new destination expenses
3.2.1.3 While the utilization of the Core Component 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 Customized Component of the Directive. The employee who chooses not to use the provisions of the Core Component forfeits them.
Example:
A employee who opts not to go on a House Hunting Trip (HHT) foregoes a Basic Core entitlement and will not receive a monetary value for this action.
3.2.2 Customized Component
The Customized Component includes items that can be reimbursed, up to the value calculated from pre-budgeted amounts within the Customized Component provisions.
3.2.2.1 Purpose
- This fund is provided by the employer to allow employees to claim other elements of a move that are not covered under the Core Fund. It provides the flexibility to choose items that best meet the employees' relocation needs.
- These expenditures are funded from the employee's funding envelope. The amount of money available to an employee is determined from the funding formula 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.
- All expenditures considered as part of an enhancement to the move shall be charged against the Customized fund first unless specifically disallowed in the Directive, and any expenditures in excess of the Customized fund shall then be funded from the Personalized fund.
- Custom Funds cannot be used to supplement benefits identified as Personalized Benefits.
3.2.2.2 Entitlements
For information on the conditions and limitations of a particular entitlement, refer to the appropriate section within the Directive. The following is an overview of entitlements available under the Customized Component:
Adjustments/alterations to furniture/fixtures
Additional appraisals costs
Additional insurance (shipment of HG&E)
Boarding of pets (HHT)
Bridge Financing - interest only
Building Inspection
Capital Improvements
Car rental - upgrade
Children and extended family - travelling expenses
Crating
Dependent care
HHT/DHIT additional expenses/days
Home relocation loan - interest
Home Renovation (disabled family)
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
Incidental Relocation expenses
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 extended family members
TDRA inclusive of rent in advance
3.2.3 Personalized Component
3.2.3.1 Purpose
The Personalized Component fund items that can be reimbursed, up to the value calculated from "savings" or incentives generated/earned from the Core Component provisions, the relocation allowances (if applicable) and non-accountable allowances.
This fund is the employee's money and may or may not be used to enhance his/her move. The Employee will have final decision on how the Personalized Component funds are expended.
Upon completion of the move or at the end of 12 months, whichever comes first, any monies that cannot be applied to non-taxable reimbursable expenses as per Canada Revenue Agency guidelines, are to be issued to the employee as a taxable benefit.
3.2.3.2 Entitlements
For information on the conditions and limitations of a particular entitlement, refer to the appropriate section within the Directive. The following is an overview of entitlements funded under the Personalized Component to employees on relocation:
Adjustments to furniture
Additional insurance
Bridge Financing - interest only
Building Inspection (on sale)
Car rental
Children and extended family
Crating
Dependent care
Equity loss
HHT/DHIT additional expenses/days
Home Renovation (disabled family)
Interim Accommodation, Meals and Miscellaneous relocation assistance
Marketing incentives
Miscellaneous shipping expenses
Mortgage Default Insurance Premium
Mortgage Interest Differential
Mortgage interest Buy-down
Mortgage pay-down penalty when porting applicable
New Home warranties
Professional cleaning
Property management fees
Property maintenance fees
$25,000 relocation loan assistance - interest only
Incidental Relocation expenses
Shipment of antiques/art
Shipment of boats
Shipment of furniture and effects above Core
Shipment of pets (with limitation)
Shipment of RVs
Shipment of 2nd/additional PMVs
Shipment of trailers
Short term loan assistance - for home deposit (interest only)
Spousal services Storage in transit
3.3 Spousal Services
The following services provided to the employee's spouse or common law partner may be reimbursed:
Customized/Personalized Funds
- Employment search
- Employment assistance
- Travel to/from interviews
- Preparation of CV
- Photocopy and transmittal costs for transcripts of academic records.
- Expenses are subject to Canada Revenue Agency policy and guidelines.
- Receipts are required.
- A taxable benefit could result from these reimbursements.
3.4 Calculation of the Customized and Personalized Funds
The calculation of the funding formula shall be determined from the table found at the end of this section. For information on the conditions and limitations on any part of the calculation, please refer to the appropriate area within this section.
3.4.1 Customized Component
3.4.1.1 Element #1 - Real Estate Commission
The first element used to calculate the Customized Fund varies based upon the accommodation status at the time of relocation notification as follows:
Homeowner: 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).
Renters: A renter at origin will be credited with $1,000.
Notes:
1. The funding allowance provided to a homeowner is greater because the expenses associated with buying/selling a home are far greater than those of renters disposing of or acquiring rental accommodation.
2. 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 transfer notice has been received and before the consultative process commences with the Third Party Service Provider.
3.4.1.2 Element #2 - Transportation of Family
The second element used to calculate the Customized Fund is the cost of one-way transportation to the new place of work location. For calculation purposes only, the funding will be based on the distance, one-way, between the former and new place of work, 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), multiplied by 35%.
Formula: 35% x (distance x (current Department of Finance annual rate) x family size)
Example:
The point of origin is Quebec City. Road distance between the old and new place of duty is 3,000km and the number of persons travelling is 4. The amount to be transferred to the funding envelope is: 3,000kms x 4 = 12,000kms x $0.42 = $5,040 x 35% = $1,764
Note:
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 Customized funding and the mileage calculation from the origin post to the new post will not apply.
3.4.1.3 Element #3 - Transportation of Household Goods
The third element used to calculate the 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.
Formula: 35% x cost to ship household goods per qualifying rooms (based on a zone-to-zone matrix.)
3.4.1.4 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.
3.4.1.5 An employee sharing accommodations is entitled to shipment of HGE 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 1 (one) 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.
Notes:
1. This applies to articles shipped under Core that the moving firm will accept on a straight-weight basis only (policy centre confirmed rates).
2. 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.
3.4.2 Personalized Component
3.4.2.1 Element #1 - Non-Accountable Incidental Expenses and Transfer Allowances
3.4.2.1.1 The Non Accountable Incidental Expenses and Transfer Allowances shall be paid 30 days in advance of the move date of the HG&E as follows:
- Non EX/GIC employees shall receive the Canada Revenue Agency (CRA) Non-Accountable Incidental Expenses Allowance credited to the Personalized fund in an amount of $650.
This allowance is meant to offset some of the losses associated with a move such as:
Admissible Expenses - Customized/Personalized
- food which cannot be shipped (e.g. frozen food, perishables);
- household goods which cannot be shipped (e.g. paint and building materials);
- house plants;
- connection and disconnection of electrical appliances and preparation for shipment (e.g. blocking drum in washer, securing stereo turntable);
- disassembling and assembling of garden and patio furniture;
- removal or installation of valance boxes, curtain rods, wall hooks, clocks, wall mirrors;
- taking up or re-laying hall runners, etc., labour of altering and re-hanging existing drapes and curtains;
- purchase of school books at new location, if such books are required for the normal course of study and are not provided free of charge by the school authority (only applicable if relocation takes place during school year);
- non-cancellable portion of fees such as insurance and local clubs and associations, prorated;
- tuning of pianos;
- photocopy and transmittal costs for transcripts of academic records for employee or children;
- replacement of propane tank;
- other minor out-of-pocket expenses;
- ... see section 11.5
Inadmissible Expenses
- purchase of new goods such as furnishings, rugs, drapes and household equipment;
- improvements and repairs to effects which are already owned.
- Non EX/GIC 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.
- EX/GIC shall receive a Transfer Allowance equivalent to four weeks salary in lieu of the CRA Non-Accountable Incidental Expenses Allowance.
3.4.2.2 Element #2 - Core Benefit Transferable Savings
Employees may increase their Personalized funding envelope by realizing savings in the following ways:
- opting for not selling the former principal residence;
The employee must exercise this option within fourteen calendar days of receiving the principal residence appraisal report. - reducing long term storage costs - IP and/or LDP, only;
- reducing the length and cost of House Hunting Trip/staying over on Saturday at destination;
- shipping below the threshold.
(1) Real Estate Commission Savings - not selling principal residence
- Employees who elect not to sell their homes at their former place of duty may transfer 80% of the real estate commission fees that would have been payable had the home been sold (taxes excluded) to the Personalized Funding Envelope.
- The amount payable is calculated on the appraised value at pre-negotiated corporate real estate commission rates, capped at $12,000.
- 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.
Example:
Average appraised value of home is $300,000 max. The commission at 5% is $15,000. Therefore an employee could transfer $12,000 (i.e., $15,000 x 80%) from the Core to the Personalized fund.
(2) Savings from Reducing Long Term Storage Costs
Employees who are posted to an Isolated Post and into Crown accommodation where it is impossible to normally accommodate their major appliances are entitled to Long Term Storage at public expense.
Those employees who make alternate arrangements and decide not to store their major appliances, may transfer 80% of the savings resulting from not having to store their fridge, freezer, stove, washer, dryer, and/or dishwasher, to their Personalized Fund.
Note:
For transfer value purposes, the saving is to be calculated on the weight/volume (industry averages) of the items, based on the actual duration of the storage requirement up to a maximum of 24 months (see Section 11 - Savings from reducing Long Term Costs - for appliances only).
| Appliances | Industry Average Weight | Annual Cost* (12 months) |
|---|---|---|
| Dishwasher | 150 lb | 4.20 + 7.38 + 28.26 = $39.84 |
| Dryer | 200 lb | 5.60 + 9.84 + 37.68 = $53.12 |
| Freezer | 420 lb (+ 16 cu ft) | 11.76 + 20.66 + 79.13 = 111.55 |
| Refrigerator | 350 lb (+ 11 cu ft) | 9.80 + 17.22 + 65.94 = $92.96 |
| Stove/Range | 300 lb (36 inches) | 8.40 + 14.76 + 56.52 = $79.68 |
| Washer | 250 lb | 7.00 + 12.30 + 47.10 = $66.40 |
| Total | 1,670 lb | $443.55 |
* inclusive of handling (in and out) @ $1.40/100 lb, insurance @ $0.41/100 lb/month, and storage costs @ $1.57/100 lb/month.
Note: These classes of appliances vary in size and weight: a 6 cu ft refrigerator weighs 150 lb, and a 7-10 cu ft weighs 250 lb, a 15 cu ft freezer could weigh 340 lb, a 30 inch stove/range could weigh 225 lb.
(3) 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 consist of the following:
- 5 days meals and incidental allowance (HHT) + 2 days (travel status)
- 5 nights accommodation (HHT) + 1 night accommodation (travel status)
Example:
An employee and spouse or common law partner departed on Sunday and returned on Thursday 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
Incentive for Staying over a Saturday Night
- Employees departing on HHT who are flying and arrange their itinerary so that they are able to stay at destination over a Saturday night save the Department in reduced airfare costs. 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). Employees in these cases shall receive $250 into their Personalized Fund.
- Stay over must be at destination, not en route.
- Does not apply to employees relocating into Crown homes or facilities.
(4) Transportation of Household Goods Below the Threshold
Another element used to calculate the Personalized 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. Does not include the shipment of vehicles for calculation purposes.
Transferees whose entire shipment of household goods and effects is below the established weight threshold may transfer, to their Personalized Funding envelope, 80% of the savings resulting from shipping weight below this threshold.
| Customized Funding Formula | ||
|---|---|---|
| Real estate commission (home owner)a or Renters allowance: $1,000 @ 100% | ______ x 35% = | |
| + | Transportation cost - one way- kilometric rate (employee and dependants) | ______ x 35% = |
| + | Cost of shipping 1000 lb (453.60 kg) of household goods based on a zone-to-zone matrix calculationb | ______ x 35% = |
| Total Customized Funding: | _______ | |
| Personalized Funding Formula | ||
| Allowances/Incentives: | ||
| + | Non EX/GIC employees non-accountable incidental allowance | $650.00 |
| + | Non EX/GIC employees Transfer Allowance equivalent to two (2) weeks salary or EX/GIC employees Transfer Allowance equivalent to four (4) weeks salary. | |
| Incentive for not selling home: 80% of Real Estate commission for not selling home (Max. $12,000/maximum appraised value $300,000)c | ||
| Sub-total: | _______ | |
| Transferable Savings to Personalized Fund | ||
| + | 80% of cost savings resulting from not using long term storage (Isolated Post) for major appliances - max 24 months | |
| + | House Hunting Trip incentive: $250 for flying and staying over on Saturday at destination; or Interim Accommodation Meals & Miscellaneous Allowance (IAM&MA) savings for unused days (max $250., taxes included.) | |
| + | Savings for shipping below threshold | _______ |
| Sub-total: | _______ | |
| Total Personalized Fund: | _______ | |
- Based on appraised value; homeowners only (maximum transferable per homeowner $5,250.)
- Qualifying rooms - (kitchen, bedrooms, living room, recreation room, family room, dining room, basement, garage (not condos and apartments), out building (limit of one), storage room (separate from apartment); weight of ATVs, snowmobiles, motorcycles, etc., stored in garage is excluded from weight factor; (1 kg=2.2046 lb)
- Entitled to a credit of 80% of the Real Estate Commission (Corporate rate) that would have been payable if house was sold.