Commodore Mark B. Watson Morale and Welfare Presentation to Logistics Officer Common Course Borden – 12 July 2013 Commodore Mark B. Watson DGMWS 1

Agenda Introduction Organization and background Vision Programs, services, and initiatives

Defence Team – Morale & Welfare Approximately 5,600 “Staff of the Non-Public Funds, Canadian Forces” Number varies due to casual employment, esp. in summer 2,125 full time, 1,066 part time, 2,395 casual 40% CAF affiliation (Retired and/or Family) 253 Canadian Armed Forces members 153 National Defence public servants 375 at MFRCs (locally employed) Plus many, many volunteers

Defence Team – Morale & Welfare CFMWS 5,600 to 6,000 Employees Canadian Coast Guard Canadian Security Intelligence Service (CSIS) Citi Bank Nav Canada 4,500 3,311 5,000

Organizational View

NPP Governance Full governance assigned to CDS Authorities delegated to DGMWS as Managing Director of NPP NPP Board serves as an advisory Board: Provides stakeholder input to CDS Strategic plans, policies and direction NPP investments Approval of audited financial statements NPP Board and AFC engagement is key NPP is a “Chain of Command” responsibility

Operational Funding $4.27M (FY 12/13)

Scale of Operations NPP net worth / publicly funded expenditures FY 2012-13 Public Funds CANEX 2012-13 Sales: $132M SISIP FS 2012-13 Revenues: $90M

CFP 110 What is CFP 110? Application of Operating Budget Principles Defines Public responsibilities for and Public Support to Morale and Welfare Programs and Non Public Property Incorporates operating budget principles, but no authority to change the prescribed Public / NPP shares and transfer funding responsibility to NPP Application of Operating Budget Principles CFP 110 based on operating budget principles frequently states Public Support may be provided up to a specified % level No authority for NPP to make up any shortfall in Public Support Confirmed by NPP Board and CDS in Dec 07 Application of operating budget principle can only be dollar based

About Non-Public Property Established in NDA – a unique type of Crown property Governance assigned to CDS Purpose is to provide benefit to serving and former members of the CF, and their families, or for any other purpose designated by the CDS Money component known as NPF Revenues from NPP operations retained as NPF

About Non-Public Property Status of employees The Staff of the NPF, CF is a separate agency within the federal public administration of Canada and is the employer for NPF employees. NPF employees are public servants, but not part of the core PS administration for which TB is the employer. Separate accountability framework. Not subject to the FAA.

NPP Certifications Fundamentals of NPP provides the overarching NPP awareness upon which delegated signing authority from the Managing Director NPP will be granted to: Base / Wing / Unit Commanders who have Non-Public Funds CFMWS Division Heads. The NPP Financial Delegated Authorities and Contracting Course is for any individual who by virtue of his / her job description requires NPP Delegated signing authority and who are not required to complete “The Fundamentals of NPP Course”.  These NPP Certifications are available on-line through the eCourse application at ADM (Fin CS). The Fundamentals course takes approximately 4 hours to complete, plus the on-line exam, approx 1 hour.  The second course takes about 2 hours to complete, plus the exam.   Certifications were launched end Nov 2011.  Spring 13, certifications were revised to add more practical real life examples to enhance the learning and exams were revised and improved.

One Community, One Million Strong My Vision Make CFMWS one of the strongest military Morale and Welfare organizations in the Western world by providing programs that provide widest possible benefits to the greatest number of serving and former service personnel and their families: One Community, One Million Strong

PSP Sports Recreation 20,000 Intersection sport competitors 91 Regional competitions – 3,500+ competitors 18 National competitions – 1,800 competitors 14 CF CISM teams 210 Individual CISM athletes 115 CF athletic trainers Recreation 400,000 Annual registrations in recreation programs 42,000 Recreation memberships 700 Different types of recreation programs 325 DND facilities involved 100 Special events – 60,000 in attendance 33 Community Gateway Web sites – 20,000 hits monthly

PSP Specialty Interest Activities Access to: Golf: 15 locations across Canada Borden, Cold Lake, Comox, Esquimalt, Greenwood, Halifax, Kingston, Oromocto, Ottawa, Petawawa, Edmonton, Shilo, Trenton, Valcartier, Winnipeg and 6 social clubs using civilian courses: Chilliwack, Gander, Goose Bay, Moose Jaw, St-Jean, Suffield Marinas and Sailing: 8 locations Comox, Esquimalt, Halifax, Kingston, Petawawa, St. Jean, Toronto, Trenton Campgrounds & Cabins: 5 locations Comox, Greenwood, Halifax, North Bay, Petawawa

PSP Specialty Interest Activities Access to: Rod and Gun Clubs: 7 locations across Canada Borden, Dundurn, Greenwood, Ottawa, Meaford, Shilo, Valcartier  Horseback Riding: 4 locations across Canada Cold Lake, Edmonton, Dundurn, Wainwright Curling: 7 locations across Canada Cold Lake, Edmonton, Gagetown, Greenwood, Halifax, Kingston, Montreal Skeet Shooting: 5 locations across Canada Edmonton, North Bay, Petawawa, Shilo, St-Jean www.cfmws.com/en/AboutUs/PSP/specialtyinterest

Commercial Services SISIP Financial Services 2012 Results – Programs and Services: 140,560 lives insured under the Life Insurance plans with $28.6B in coverage and $41.3M paid to beneficiaries 93,600 CF members protected under the Long Term Disability plan with $106.6M paid out in benefits when combined with the Vocational Rehabilitation Program 8,329 Financial Counselling appointments held 7,153 Financial Planning clients with $232M invested 3,379 CFGroupRSP clients with $117M invested 5,631 CF members educated under the Personal Financial Management course

Commercial Services SISIP Financial Services Financial Planning Service is provided by a Certified Financial Planner (Pl. Fin. in Quebec) Budgeting and goals, including advice on lump sum amounts, investment choices and portfolio management Pre-authorized investments can be as little as $25/month RESP, RRSP, and TFSA available Tax planning and asset allocation Retirement and release projections Canadian Forces Group Retirement Service Plan (CFGroupRSP) A "do-it-yourself" online retirement savings plan and investment services Financial Counselling Remedial assistance for financial distress and emergencies (includes budgeting and debt repayment) Access to loans and grants from the Canadian Forces Personnel Assistance Fund (CFPAF) and other SOT programs

Commercial Services SISIP Financial Services Comparative costs: SISIP Financial Services Industry Standard Financial Planning (No commission – fee for service based) $6 - $12/month (depending on rank) Unlimited hours of service Includes one free income tax return Approximately $100/hour 1 or 1% - 3% of assets under management2 $59 for one basic income tax return3 Financial Counselling (Confidential) Free Approximately $1204 / session or enrollment Fee of 15% of total debt + monthly charge of $50 + cancellation fee5 Insurance ($100,000 in coverage / 25 year old male / non-smoker) $6/month Varies $11 - $13 /month6 1 CBC News (April 2012) / MoneySense Magazine (October 2012) 2 moneysense.ca – Where to find a fee-only Financial Planner 3 H&R Block 4 Credit Canada 5 debtfreesolutions.ca – Consumer Credit Counselling sample contract 6 Compulife Software Inc.

Commercial Services SISIP Financial Services Life insurance plan advantages: SISIP Financial Services Industry Standard No exclusion for war risk May be excluded or declined No exclusions for dangerous occupations, hobbies, volunteer activities and/or sports Some or all may be excluded or increase in premium Less stringent medical underwriting Lengthy medical required No medical required to convert insurance after release (If done within 60 days of release) Not available Includes coverage for Accidental Dismemberment Cost to purchase Free coverage for Dependent Life of $10,000

Commercial Services SISIP Financial Services Re-Insurance: The sharing of risk among several companies that specialize in high risk insurance protection. Required to guarantee the payment of claims under SISIP FS Life Insurance plans, even if someone dies while serving in a Theatre of Operations. Net re-insurance costs and death claims from 2007-2011: 12.2 M per year.

Commercial Services CANEX / NATEX Programs: The Personal Home & Auto Insurance Home: Coverage that fits your way of life. All policies include $5K coverage for military kit; $3K coverage for personal belongings while deployed outside Canada. Military Renters policy for DND controlled quarters, Identity Theft Assistance, Burglar Alarm Discount also available Auto: Accident-Free Protection, Loyalty Savings (up to 7%), Winter Tire Discount (5% off premium), Students Rates, RV’s and more Portability: If you should move, be transferred or retire within Canada Home Heating Oil Rebate Program If home heated by oil, save on regular delivered price of home heating oil. Example of savings - In Halifax, participants have saved up to 8 cents per litre for the last six years; average of $1,500 in savings.

Commercial Services CANEX / NATEX No Interest Credit Plan 12, 24 or 36 month plans. Plus no money down, not even the taxes. 12 month payment plan: no hidden handling or administration fees (24 months: 2% ; 36 months: 3%) Club XTra Loyalty Program Present your card and earn points for every eligible $1 purchased. Twice a year, gift certificates are issued to Club XTra member for the value of the points accumulated (e.g. $5 for 5,000 points). National vendor partnerships: Tim Hortons Aramark (food services) Subway OK Tire Andrei Master Tailor

Commercial Services CANEX / NATEX Initiatives: Online Sales and Marketing Developing an online e-retailing strategy to augment existing store operations Elite line of clothing and accoutrement Developing a consolidated and centralized retail offering in-store and online of CF memorabilia, clothing & accoutrements A selection of quality casual/performance clothing and merchandise (e.g. - tie bars, cufflinks, lapel pins, watches, wine decanter, etc) branded with military crests/logos. Available soon: New design Navy windbreaker

DCSM / JPSU JPSU Mission Peer Support Through an integrated and individual-centric service delivery model, to ensure the coordination and facilitation of standardized, high quality, consistent personal and administrative support during all phases of recovery, rehabilitation, and reintegration on return to service or transition following release, for all injured and ill Canadian Armed Forces personnel and former personnel, their families and the families of the deceased. Peer Support Operational Stress Injury Social Support (OSISS) Soldier On Injured Soldier Network Helping Others by Providing Empathy (HOPE)

Supported by JPSU (but not posted) DCSM / JPSU Personnel currently being tracked by JPSU Posted to JPSU 1,800 Supported by JPSU (but not posted) 3,500 Total 5,300 26

DCSM Transition Activities & Initiatives National Coordination of all SCAN activities: Second Career Assistance Network seminars, Medical seminars, Transition support and programs specific to ill & injured, Publications/tools that support transition counselling. Liaise with other organizations: VAC, HRSDC, PS Commission, SISIP-LTD & VRP, Industry, Academia, Accreditation bodies and others. VAC Liaison Officer Canada Company – Military Employment Transition Program (METP) A self-serve, "one stop" website of all things “transition” for serving and retired military members. This includes Corporate Canada employers, Entrepreneurship, Franchising and Education opportunities. 67 Military friendly employers, such as Amazon, BMO Financial Group, CN, Coca-Cola Refreshments Canada, Royal Bank of Canada, Shell Canada, Sobeys Inc., Suncor Energy, Etc.

DCSM Transition Initiatives and Services Prince’s Charities-Operation Entrepreneur: Based In Business (BIB) with Memorial University and Canadian Youth Business Foundation Prospect: Forces @ Work: Sustainable Job Placement Pilot Project H2H: Helmets to Hardhats Association of Canadian Community Colleges (ACCC) NEW Transition Initiatives: Veterans Canada Franchise Network in partnership with the Canadian Franchise Association (under development) Forum for International Trade Training (FITT) In addition to previously mentioned programs and services, the following are specifically for ill and injured members of the Reg and Res force: Vocational Rehabilitation Program-Serving Members (VRPSM) Priority Hiring-Public Service Integrated Transition Plan

Military Family Services Enabling a mission-ready Force by addressing the issues faced by CAF members and their families that result from military service. Military Family Services manages: Military Family Services Program, including funding and oversight of Military Family Resource Centres Dependant Education Management, who manages the education compensation and benefits requirements of military members with dependant children. Quality of Life issues that arise and affect military families as a result of conditions of service of serving CAF personnel

Military Family Services 24/7 ACCESS TO SERVICES: Military Family Resource Centres – On Base, In Person 32 in Canada, 7 sites in the United States, 4 in Europe Third party, independent organization located on Bases/Wings or through outreach programs Provide services in both official languages in accordance with the need of the local community. Family Information Line – Informed, Connected and Supported 1-800-866-4546 Bilingual, information and supportive counselling www.FamilyForce.ca – For and about Canadian military families A portal to all MFRCs for local information Useful general information of interest to all Canadian military families

Military Family Services BY THE NUMBERS: FamilyForce In 2012, 328,062 visits to the FamilyForce site, and there were 196,832 total unique visitors. Family Information Line (FIL) In 2012, 1620 calls were made to the FIL (as well as 4760 calls to the automated system that has deployment information). FIL Stats (1 Jan to 30 June 2013)  Total contacts: 713 355 calls and 358 emails (follow up calls/emails to each contact not included) Contacts per issue type:    CAF family related: 21% Military related: 16% Veteran related: 14% MFRC:  6% Mental health: 5%

Support Our Troops Program Support Our Troops Fund is an umbrella for the following: Military Families Fund − linked to conditions of service $4M dispersed to >1,000 members/families $5K per incident at local level Soldier On Fund − contributes to a healthy, active lifestyle $1.1M dispersed to 630 members/families Funded a wide range of programs Hospital Comforts Fund − basic amenities for hospitalized members $85K dispersed annually to >300 members Op Santa Claus − gift for deployed members over holidays Gifts delivered to 1,600 members $13M has been received since 2006 from: Personal contributions to SOT Fund Proceeds from third party events Contributions from external charities/foundations

Support Our Troops Program Examples: Army Run: Generated almost $500K in funds for the MFF and Soldier On during the past 2 years. Graham Group Charity Golf Tournament: Golf tournament held in 2011 and 2012, generated almost $100K for the MFF Royal Canadian Mint – Highway of Heroes Collector Coin: Operated two coin Campaigns to highlight the CAF and the sacrifices of military members and their families, collectively generated $200K for the MFF.   Honourable PM Stephen Harper – History of Hockey book: To be released Fall 2013, all proceeds to MFF. Winnipeg Jets True North Foundation: Will donate $75K to the MFF/Soldier On yearly for the next 10 years. Sears: 7 year relationship, annual donation of $10K to the Hospital Comforts Fund (under the SOT Fund umbrella).

Soldier On Fund Supports former and currently serving members with a visible or non-visible injury/illness to adopt an active lifestyle through sport and recreation Over $1.1M has been disbursed to provide access to equipment, training and events allowing participants to: learn a new sport such as skiing, horseback riding, fly fishing, and kayaking; train with and compete against soldiers with similar injuries and illnesses from other nations; and push their physical and mental limits through participation in regional and national sporting events.  $2.4M has been raised by donations from Canadians, corporations and other organizations

Soldier On Participation 630 Total members supported by Soldier On As of 1 Apr 13

Soldier On Demographics 86% Serving 14% Retired Region Officer NCM Retired Total NS/NFLD 9 71 5 85 NB/PEI 3 28 9 40 QC 8 103 14 125 S ON 2 20 5 27 E ON 7 126 20 153 Prairies 3 29 8 40 AB/NC 7 90 7 104 Pacific 5 42 9 56 Total 44 509 77 630 As of 1 Apr 13

Soldier On Aquatics Camp As of 01 July 2013 Canada Army Run Ottawa, ON 20-23 Sep 13 Soldier On Golf St. Andrew’s, Scotland 16-19 Jul 13 Soldier On Aquatics Camp Ottawa, ON 21-27 Jul 13 RCN 10K Halifax, NS 18 Aug 13 Soldier On Golf Camp Victoria, BC 08-14 Sep Nijmegen Marches Netherlands 16-19 Jul 13 Saddle Up Soldier On V Toronto, ON 7-11 Oct 13 CISM Athletics Germany 9-16 Sep 13 News: Five Soldier On members successfully participated in the UK Help for Heroes Big Battlefield Bike Ride in UK/France Eight Soldier On members will participate in the Nijmegen Marches for the second consecutive year Maj Shelley Colter finished 8th in the World Powerlifting Championships finishing in 8th place. Capt Christian Maranda will represent Canada at the World ParaCanoe/Kayak Championship in Poland, August 2013.

Canadian Forces Personnel Assistance Fund Offers financial assistance in the form of low interest loans and/or grants through the following programs: Minor Disbursement Program ($33K to 194 members)* Grants up to $200 (on a once per lifetime basis) to relieve temporary distress or to promote well-being.  Accessed through a helping agent such as:  the Chaplain, Social Work Officer, Military Family Resource Centre personnel, SISIP Financial Counselor, Veteran Affairs Canada. Education Assistance Loan Program ($1.9M to 476 members)* Established to assist eligible serving members, former members and their recognized independents to obtain a post-secondary education (full-time studies).  Loans range from $1,200 to $4,000 per year to a lifetime maximum of $16,000 per student are available. *data based on calendar year 2012

Canadian Forces Personnel Assistance Fund Self Improvement Loan Program ($7.5M to 2,208 members)* Financial assistance through small loans to assist in emergency situations such as: compassionate travel, urgent home and car repairs, minor renovation projects, prevent financial distress situations, household purchases, education, etc. Loans are available from $1,000 to $5,000 in increments of $500. The maximum Financial Distress Program ($1.1M to 154 members)* Grants and loans when warranted by distress or other qualifying circumstances. The lifetime maximum for assistance is $5,000 for a grant and $25,000 for a loan. Access to the fund is normally through an agent of the fund, Veteran Affairs Canada, SISIP Financial Counsellors or designated Base/Wing Program Administrators Eligibility to make an application does not guarantee approval Each request adjudicated against specific criteria before a decision is rendered *data based on calendar year 2012

SOT Summer Camps The SOT Summer Camps provide an opportunity for children of military families to escape from the stressors of military life, with priority given to children of deployed personnel. In summer 2012, more than 700 children of military members enjoyed a complimentary week at Camp Maple Leaf and Muskoka Woods. The Military Families Fund, Canada Company and personal donations have unwritten the cost of camp registrations. More than 300 spots are available in 2013 for kids who meet the eligibility criteria.

Vacations for Veterans Program Launched in January 2012 Program is available to CAF members (former and currently serving) who have sustained an injury or illness while serving in a Special Duty Area/Operation and who are in receipt of a VAC benefit as a result Eligible members may apply for 1-week of accommodation at one of Shell Vacations Club’s 26 properties in Canada, the US and Mexico More than 100 CAF members/families have benefited from this program

PSP – DFIT.CA Fitness training DFIT.CA Launched 11 Oct 2012 Focus on fitness required for operations Over 20 000 CAF personnel registered

PSP – Project FORCE Tests Current CF EXPRES remains valid for evaluation No EXEMPTIONS will be awarded pass 31 Mar 13 New CF fitness test – Training Objective/familiarization – Valid if achieve the standard. Members must schedule a trial of the new test CANFORGEN 038/13 CDS 015/13 041728Z MAR 13 promulgate direction Ongoing data collection to measure adverse impact Spirit of the policy remains the same (failures, remedial PT, administrative action, merit boards, other implication, etc). 1 April 2014 – new CF fitness test New DAOD 5023-2 in place New incentive program Visit: www.cfmws.com/forceprogram While we are updating the CAF fitness testing policy, the spirit of the policy will remain the same (failures, remedial PT, administrative action, merit boards, other implication, etc).   FORCE FAQ:  https://www.cfmws.com/en/AboutUs/PSP/DFIT/Fitness/FORCEprogram/Pages/FAQs.aspx

NPP Outreach SOT programs / funds attracting significant contributions from Canadians Individual donations of dollars and products / services Proceeds from third party events Contributions from events / campaigns held by charitable organizations e.g.: True Patriot Love, Canada Company and Wounded Warrior As number and complexity of events increases There are greater demands for DND/CF Support There is little adherence to policy provisions and There are diminishing efforts to align with CF priorities Some external organizations competing with internal NPP “charities”

Canadian Defence Community Banking Key relationship with BMO, Bank of Montreal Personal Banking Mortgage Plans ABM/ATM SOT MasterCard Sponsorship – National and Local Programs Personal Banking: BMO provides financial savings to CDCB members by offering discounted rates for personal banking services. The program was established so that all savings would accrue to CF members/families. It has been estimated that our members collectively accrue at least one million dollars in annual savings through the CDCB program. As at 31 Mar 13, CDCB members held 10,000 BMO lead accounts. Mortgage Plans: In Feb 09, BMO began offering those CDCB members relocating under the IRP a waiver of the interest rate differential penalties above those reimbursed by the IRP (i.e. BMO capped the penalty at $5K). Since the CDCB/BMO IRP offer, at least 2,000 mortgage holders avoided interest rate penalties when their mortgages were transferred. ABM/ATM: CANEX and BMO are the only authorized NPP suppliers of ABM (full service machine) and ATM (cash machine). Since 1 Nov 08, CDCB has ‘the first right of refusal’ to install ABM/ATMs at Bases/Wings. BMO is responsible for these machines in terms of their installation, maintenance and ‘cash’ top-up. Since 2008, fifteen BMO ABM/ATMs have been installed directly on Bases/Wings. Support Our Troops MasterCard (SOT MC): In Nov 08, an Affinity Card Program agreement was struck with BMO to create a no-fee Support Our Troops Master Card which includes loyalty rewards for both Air Miles and Cash Back. The SOT MC provides its holders with a branded product that enables them to show their support for the troops. The SOT Master Card generates revenue for SOT based on the value of retail sales. Over the past three years, it has generated $105K for the Support Our Troops Fund Sponsorships: BMO has provided sponsorship for various national and local events, totalling more than $325K. For 2013, BMO is making a significant sponsorship contribution (>$40K) to the CFSU(O) Family Days; (>$50K) for Wealthy Barber Returns Event, and; (>$30K) to various local events.

CF Appreciation Program Official discount program of the CF Over 40,000 CF Appreciation Program cards issued Members can save at more than 26,000 locations locally, nationally and worldwide Categories: Accommodations, Attractions, Entertainment, Dining, Recreation, Services, Shops, Travel & Transportation Two new features coming: On-line registration Secure login Visit: www.cfappreciation.ca

CF Appreciation Program CF R&R Club: linked to US Armed Forces Vacation Club linked to Gov Rewards and International Cruise Excursions Access to 3,500 accommodations in 80 Countries starting at $369 USD per week Access to cruise lines, airlines, and 3,000 US Golf Courses at guaranteed low prices.

CF Appreciation Program CF R&R Club – Examples: Visit: www.cfappreciation.ca Silver Lake Resort, Kissimmee, Florida 7 nights/$369 USD Barnsdale Country Club Rutland, England 7 nights/$369 USD Wyndham Ka'eo Kai Kauai, Hawaii 7 nights/$369 USD

CFOne Card Multi-phased approach Confirms that an individual is a member of our One Community – One Million Strong Provides access to MW programs, services and facilities Multi-phased approach Phase 1: (Fall 2013) will launch with access to the CANEX Loyalty Program and CF Appreciation Program Future Phases: expanded to include access to PSP recreation services; administration of Mess fees, access to clubs and activities, as well as other MW services.

Questions?