Question Period Note: Cost of Living Challenges

The Canadian Armed Forces’ cost of living allowance is frozen at 2008 rates. Why is the Government neglecting CAF members, particularly when inflation is making life more unaffordable for them?

• Canadian Armed Forces members and their families are our top priority, and we are taking steps to ensure they are supported.
• We increased military members’ rates of pay to align with increases received by the Federal Public Service.
• We also implemented an interim relocation policy to enable remote work options, and increase the time required to move to ensure flexibility for families.
• Over the coming years, we are investing $445 million to build new housing at Bases and Wings, as well as to renovate housing across the country.
• We know there is more to be done, and we will continue to seek ways to better support and reduce stress on our members and their families.

Post Living Differential (PLD)

• The PLD allowance is intended to moderate the impacts associated with moving to a higher cost of living area. PLD allowance is separate from pay.
• The purpose of the PLD is to ensure that the cost of living for CAF members is maintained at a predictable level, no matter where they are posted within Canada. PLD rates are taxable and are set annually based on a Treasury Board-approved methodology.
• In April 2009, the Government of Canada froze PLD rates at their 2008 levels. The CAF is currently engaged with Treasury Board Secretariat to review the PLD to ensure it meets the needs of today’s CAF members.

February 2021 Pay Increase

• The pay increase applied to general service officers, pilots, medical and dental officers at the rank of Lieutenant-Colonel and below, as well as all non-commissioned members.

Military Housing

• In fiscal year 2021/2022, National Defence began allocating $40 million dollars per year for 10 years to be invested in the residential housing program.
• Starting in fiscal year 2022/2023, National Defence has increased this allocation by an additional $15 million dollars per year for three years, resulting in a total annual investment of $55 million dollars in residential housing for Canadian Armed Forces members.
• Some of this funding will go towards constructing new housing units at Bases and Wings over the next several years, including CFB Comox and CFB Shilo:
  • 12 units in Comox, British Columbia (ready for occupancy as quarters by 30 September 2022);
  • 14 units in Shilo, Manitoba (eight will be ready for occupancy by early 2023).
• Housing benefits provided to eligible Canadian Armed Forces members include:
  • Reimbursement for legal fees, and real estate fees related to relocation;
  • Shipping and related expenses of household goods and effects are handled entirely by the Canadian Armed Forces – members can use discretionary funding to ship specialty items;
  • A full suite of benefits exists for members who sell and buy residences, including dual residency expenses, incentives for not selling, home equity assistance, mortgage interest differential and mortgage default insurance; and
  • If challenges are encountered while selling or buying a home, or a family needs more time to adjust, the Canadian Armed Forces member can move to the new location unaccompanied with lodging covered for a maximum of six months, and potentially longer if authorized.

Compensation and Benefits for Canadian Armed Forces Members include:

• Post Living Differential (cost-of-living allowance) (frozen at 2008 levels)
• Environmental Allowances for austere working conditions
• Maternity/Paternity Parental Top-Up (to 93% of income for 12 months or 55.8% for up to 18 months)
• Family medical and dental coverage (Public Service Programs)
• Military Housing in many posting locations
  • National Defence maintains and operates over 11,000 residential housing units at 27 locations.
  • New housing units are being constructed at CFB Comox and CFB Shilo and will be available for rent between 2022 and 2024.