PLD, pay and shelter charges updated
December 3, 2007
Chief of the Defence Staff Gen Rick Hillier announced three policy changes last week that will affect the pocket books of military members.
Among the changes is a two percent pay increase for all general service officers and all non-commissioned members. The same increase applies to pilots (LCol and below), and medical and dental officers (Lt and 2Lt). The pay increase is effective April 1, 2007 and is anticipated to be delivered in the end-March 2008 pay. The same percentage increase applies to environmental allowances and to the CFS Alert allowance.
Also changing is the way post living differential (PLD) is calculated.
Retroactive to July 1, 2007, PLD will be benchmarked to the National Capital Region (NCR) and adjusted annually. If it costs more to live in a given area than it does in the NCR, members in that location will receive PLD. If it costs the same or less to live in the given area than it does in the NCR, CF personnel in that location will not receive PLD.
“I am confident that this is equitable and well meets the needs of CF personnel serving across Canada,” says Gen Hillier.
The change is meant to make PLD more responsive to economic changes affecting CF locations throughout Canada, stabilizing cost-of-living standards for CF personnel wherever they may serve in Canada, he says.
In certain areas, in particular Edmonton, Cold Lake and Calgary, PLD rates will increase retroactive to July 1, 2007. In locations where PLD will be reduced, the reductions will be implemented by rank at the rate of one third each year commencing April 1, 2008 for NCMs in the rank of PO1/WO and above as well as for officers in the rank of Lt(N)/Capt and above. Effective April 1, 2009, this phased PLD reduction will also be implemented for PO2/Sgt and below as well as for officers in the rank of SLt/Lt and below. For Capt(N)/Col and above living in the NCR, the new PLD rate for that location will be implemented in full as of April 1, 2008.
The new PLD rates will be available at www.forces.gc.ca/dgcb/ once rates for all areas have been calculated.
DND housing monthly shelter charges are expected to increase to reflect local market values; however, these adjustments will be deferred until April 1, 2008.
In some areas, CF personnel living in DND housing will face a situation where their monthly DND housing shelter charge will increase, on April 1, 2008, while their PLD will decrease. This will occur because the general relative spending power in their area has increased, but the monthly shelter charge has not yet been adjusted to the local market rate as required by Treasury Board policy.
“I know that while most of you will be pleased with this round of adjustments, some of you may feel that your overall situation has not improved,” says Gen Hillier.
“Remember to think of these changes in terms of their benefits to you over the course of your career, and through the various postings that you may experience. The necessary steps are being implemented to align our benefits with Canadian society, while ensuring you are treated fairly and equitably, and in a way that addresses the demands that military life puts on you and your family.”
