1. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Morale and Welfare Presentation to CFSTG - Borden Commodore Mark B. Watson 3 December 2012

2. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 2 CFPFSS = MORALE AND WELFARE

3. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 3 Agenda Introduction Organization & Background Vision, Priorities, and Strategy Programs, Services, and Activities Recent Initiatives

4. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 4 Military Family Services Program Quality of Life (DQoL-MFS) Pers Fin Svcs (Pres SISIP Financial Services) Organizational View Retail Svcs (Pres CANEX/ NATEX) Casualty Support Management (DCSM) Chief Military Personnel NPP Fin (CFO) NPF HR (VP HR) NPP IM/IT(CIO) Non-Public Public Staff of NPF CEO NPF Chief of the Defence Staff Managing Director NPP DGPFSS s) Pers Support Prog (C PSP) ASD Coordination M&W in & Family Services Alternate Service Delivery: Public Funding Delivered Through Non-Public Property

5. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 5 The Morale & Welfare Team Approximately 5600 Staff of the Non-Public Funds, Canadian Forces –Number Varies Due to Casual Employment, esp. in Summer –2125 Full Time, 1066 Part Time, 2395 Casual 253 Canadian Forces Members 153 National Defence Public Servants 375 at MFRCs (Locally Employed) Plus Many, Many Volunteers

6. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 6 Staff Demographics Gender 62.5% Females / 37.5% Males Multigenerational Workplace –Average Age : 38 years –Employees Under 18: 5.6% –Youngest Employee: 12 years (Paper Boy) –Employees Over 66: 2.2% –Oldest Employee: 82 years (Golf Course) Employee Retention -Average Years of Service: 6 years -Longest Serving employee: 40 years Category

7. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 7 Staff Complexities Unionized Employees: 27.1% Dynamic Military Affiliation: 40% Serving, Retired, Family Diverse Range of Occupations Financial Planner Barn Supervisor Clerk/Cashier Meat Wrapper Distributed at >70 locations in Canada, US, Europe & Deployed Operations T4 /Relevé Generated in 2011: 8,289 T4s: 7,134 / Relevé 1: 1,155

8. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 8 Scale of Operations Total $713M (19.5% Public / 80.5 % Non-Public) Public Funds SISIP Financial Services ($280M) CANEX Retail ($52M) Messes ($24M) Base / Wing / Reserve Unit Funds ($77M) C108 ($25M) C109 ($88M) Central Fund ($124M) Assistance Fund CFPAF ($17M) DCSM ($26M) NPP Net Worth / Publicly Funded Expenditures FY2011-12 } CANEX 2011-12 Revenues: $135M SISIP FS 2011-12 Revenues: $77M

9. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 9 NPP Governance Full Governance Assigned to CDS Authorities Delegated to DGPFSS 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

10. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 10 Canadian Forces Central Fund Sources of Revenue Investment Revenue –$130M Under Management –Subject to Market Volatility –Some Years > $4.8M –Other Years Negative CFCF Loan Interest –Rate Fixed at 4% Even When Bank Rates Are 7%-8% Proceeds from Base Closures –Largest Proceeds from European Base Closures (90s) and KAF Fees –Administration Fees Paid by Customers to CANEX Credit Plan Donations –Historic, Prior to Creation of Support Our Troops Funds

11. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 11 Canadian Forces Central Fund Distributions CFCF Loans –Financing Local Capital Projects Consolidated Bank Account Interest Payments Subsidies to National Shared Services –HR, Accounting and IM/IT –Costs Not Reimbursable by Public or B/W/U Funds –Increased by $1.5M with New Deal Grants to Base/Wing Funds Any Other Purpose Approved by CDS Additional B/W/U Contributions: CANEX ($3M) & SISIP FS ($3.2M)

12. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Vision & Priorities

13. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 13 Make CFPFSS 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 My Vision

14. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 14 Empowerment / Responsiveness –Increased Local Authority / Delegations –Increased Consultation with B/W Commanders –Greater Autonomy Over Local, (Legal) Morale & Welfare Initiatives Branding –NPP Education, Training, and Certification Courses to Improve Governance and Knowledge Throughout the Chain of Command –More Holistic and Coherent Marketing and Communication Strategy to Increase CF-wide Awareness of the Breadth of Available Programs and Services –Name and Logo Change –Increased Understanding of Military Life and Heritage Within Staff of the Non-Public Funds, Canadian Forces Priorities

15. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 15 Synergy –Organizational Review –Continued Development and Integration of DMFS, DQOL and Dependent Education Management –Leverage Technology for Greater Effect, Cost Benefit and Immediacy of Impact Priorities

16. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Programs and Services

17. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 17 Programs & Services Video

18. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 18 PSP Operations at Bases / Wings 36 PSP Managers 3,650+PSP Staff 1,200+Full Time Staff Deployment Support 12 Years (2000-2012) 1,600 PSP MW Staff Deployed Abroad 32 Rotations Served in Bosnia, Afghanistan, Haiti, Ships Messes 100 Regular Force

19. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 19 PSP Sports 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 17CF Newspapers - 80,000 Circulation 14 CF Golf Clubs

20. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 20 SISIP Financial Services 141,042Lives Insured under Term Life Insurance Plan –with $27.8B in Coverage –$38.5M Paid to Beneficiaries 100,850CF Personnel Protected with Long Term Disability $71.2MSupport Paid under Vocational Rehabilitation Program 6,805 Financial Planning Clients –with $187.4M Invested 3,845 CF GroupRSP Clients –with $128M Invested 6,498 CF Members Educated on Personal Money Management 9,090 Financial Counselling Appointments Held 2011 Results

21. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 21 SISIP Financial Services $2,720,650Morale and Welfare $362,350Other NPP activities $100,000Volunteers Recognition Program 72Vocational Rehabilitation Program Briefings –2,643 Participants 209Canadian Forces Severance Pay Briefings –17,579 Participants 2011 Contributions - $3,192,500 2012 Highlights

22. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 22 CANEX / NATEX A Unit of the Canadian Forces Mission: Ensure the Availability of Competitively Priced Goods and Services to Satisfy Customers and Generate revenue Programs: The Personal Home & Auto Insurance No Interest Credit Plan Home Heating Oil Rebate Program Club XTra Loyalty Program National Partnerships Tim Hortons Aramark (Food Services) Subway OK Tire Best Vendors (Vending)

23. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 23 CANEX / NATEX Scale of Operations 46 CANEX/NATEX Outlets 183CANEX Concessions 750CANEX/NATEX Employees 4.4 MillionAverage Annual Transactions Sales and Contributions $140MAverage Annual Sales $4M+Average Annual Morale & Welfare Contributions –$3.2M CANEX Average –$975K NATEX Average

24. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 24 CANEX / NATEX Online offering What You Need (WYN): Primarily Targeting Deployed Members Support our Troops (SOT): Clothing and Accessories Jewellery (Bellecour) Flowers (Pinkerton)

25. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 25 Military Family Services Enabling a mission-ready Force by addressing the challenges faced by CF members and their families that result from military service. Military Family Support 3 Access Points: - 43 Military Family Resource Centres (MFRCs) - Family Information Line, 1-800-866-4546 - www.familyforce.cawww.familyforce.ca MFSP Policy Development, Resilience and Engagement Dependent Education Compensation and Benefit Programs for Families DND Dependent Schools Overseas Education Programs Departmental Foreign Service Education and Military Education Allowances/Entitlements

26. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 26 DCSM / JPSU JPSU Mission 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 Forces personnel and former personnel, their families and the families of the deceased Peer Support Operational Stress Injury Social Support (OSISS) Joint Speakers Bureau Soldier On Injured Soldier Network Helping Others by Providing Empathy (HOPE)

27. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 27 DCSM / JPSU Transition Return to Work CF Transition Program Transition for Ill and Injured Administrative Support Liaison with Service Partners Client Services And More… Policy Drafting and Validation National Military Cemetery

28. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 28 Personnel Currently being Tracked by JPSU Posted to JPSU1,710 Supported by JPSU (but not posted) 3,032 Total4,742 DCSM / JPSU

29. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 29 Support Our Troops Funds Video

30. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 30 Internal Support Funds Support Our Troops Fund is an Umbrella –Military Families Fund - Linked to Conditions of Service $4M Dispersed to >1,000 Members/Families –Soldier On Fund - Contributes to a Healthy, Active Lifestyle $1.1M Dispersed to 350 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 Total Pledged to SOT Funds Since 2006: $11M -Personal Contributions to SOT Fund: Six Year Old Boy: 84 cents Couple from Toronto: $50K

31. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 31 Internal Support Funds Canadian Forces Personnel Assistance Fund –Minor Disbursement Program –$36K to 230 Members –Education Assistance Loan Program –$2.2M to 570 Members –Self Improvement Loan Program –$9M to 2,750 Members –Financial Distress Program –$900K to 150 Members

32. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Recent Initiatives

33. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 33 PSP – DFIT.CA Fitness Training Launched 11 Oct 2012 Over 10 600 CF Personnel Registered in 4 Weeks Already Over 33,000 Visits 500,000 Page Views

34. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 34 DFIT.CA Allows User to Generate Running Regimen, Training Regimen or View Training Calendar Create Personalized Training Regimens Training Programs Focus on Fitness Required for Operations

35. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 35 DFIT.CA Fitness Algorithm Developed by DFIT Physical, Functional and Operational Workouts General = Typical CF Personnel Functional = More Complex and Complete Movements Operational = Tasks that Simulate CF Tasks

36. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 36 DFIT.CA Warm Ups Can Be Expanded Videos Viewed or Changed Based on Access to Equipment Different Levels Can Be Selected to Adjust Exercise Difficulty Level

37. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 37 PSP – Project FORCE Defining a New Generation of Fitness Testing Phase One: Capture Real World Operational Data –20 Years of Operations –Survey and Interview Hundreds of CF Personnel –Consulted Canada Command & CEFCOM –Identified 13 Common Tasks

38. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 38 Project FORCE Phase Two: Align Tasks with Real Operational Scenarios –Measured Physical and Physiological Demands on CF Personnel –Through Combination and Elimination Established 6 Key Common and Physically Demanding Tasks Phase Three: Validation –Predictive Test Batteries Applied to CF Population –Set New Standards –Assess Adverse Impacts & Rectify –AFC to Be Briefed on Dec 5 th 2012

39. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 39 PHASE 1 Job Analysis (What is the job?) LITERATURE REVIEW POST MISSION SURVEYS POST MISSION INTERVIEWS MISSION PLANNING FOCUS GROUPS 13 Common, essential tasks Jan 2011 AFC PHASE 2 Physiological Measurements (What are the demands?) TASK SPECIFIC FOCUS GROUPS PHYSIOLOGICAL MEASUREMENTS (lab) PHYSIOLOGICAL MEASUREMENTS (Field) REFINEMENT OF TASK LIST & DEMANDS 6 CF Common & physically demanding Tasks Apr 2012 AFC SET-UP OF PMT PHASE 3 Test & Standards development (How should we test them?) PILOT STUDY (lab) FIELD DATA COLLECTION (7 locations) DATA ANALYSES FINAL TEST BATTERY OPTIONS Options for new CF Physical Fitness Evaluation Dec 2012 AFC DETERMINATION OF STANDARDS ADVERSE IMPACT ANALYSES Project FORCE

40. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 40 Project FORCE Tests 1.Sand Bag Liftstd: 3 min 30 s 30 consecutive lifts of a 20 kg sand bag to a height of 91 cm, alternating between left and right sand bags separated by 1.25 m. 2.Loaded Shuttlesstd : 5 min 21 s Complete ten 20 m shuttles alternating between a loaded shuttle with a 20 kg sand bag and unloaded shuttles, for a total of 400 m. 3.20m Rushesstd : 51 s Starting from prone, complete two 20 m shuttles sprints dropping to a prone position every 10m, for a total of 80m. 4.Sand Bag Pullstd : complete Carry one 20 kg sandbag and pull four on the floor over 20m without stopping. Pros Looks / Feels Like the Job Minimal Equipment (Sand Bags) Objective Testing Equal Total Physical Work for All Functional Movements Cons New Training Requirement for Assessors

41. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 41 CANEX / NATEX Initiatives E-Retailing 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 Canadian Forces Memorabilia, Clothing and Accoutrements. Infrastructure Modernization

42. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 42 DQOL-MFS Initiatives Reduce management overhead/increase funding to the field –More than $500K Recurring Reduction from Budget Allocation –25% Funding Increase to the Field Over Past 5 Years Access to Non-Emergency Military Family Health Care –10 of 13 Provinces / Territories Have Dropped 90 Day Wait for Access to Health Insurance –Op Family Doc Ottawa – 80+ Families / Military Retirees Matched with Family Physicians to Date –Family Medicine Forum 2011 – 29 Doctors Agreed to Take Military Families Military Family Mental Health –33 Family Liaison Officers; 4084 Families Served in 2011-12 –The Minds The Matter Self-Help Videos; Six Episodes Created –Studying Feasibility of Telemedicine in Petawawa

43. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 43 Military Family Special Needs –8% Self Reporting Special Needs CF Living Accommodation –AFC and DSX Endorsed Requirement for Just Under 12,000 Military Houses Across Canada –Studying Options for Service Delivery Deployment Support –Option Development on How Best to Ensure all Deploying Members and their Families Receive the Support they Require Continuity of Education and Employment for Military Families –Studying Feasibility of Overseas School with Innovative Delivery Methods DQOL-MFS Initiatives

44. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 44 Mentor to the National Military Family Council –9 Specific Recommendations Made to AFC Stakeholder Engagement –Vanier Institute of the Family Committed to a 5 Year Military Families in Canada Initiative DQOL-MFS Initiatives

45. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 45 Associate DG - 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

46. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 46 Associate DG - Sponsorship Opportunity to Increase Sponsorship of NPP Programs, Activities and Events, at National and Local Levels –Policy is Being Rewritten This Policy Would See: –Sponsorship of NPP Programs, Events and Activities, at Base/Wing/Unit Levels to be Approved, Annually, in Advance –Enhanced Oversight of the Use of Sponsorship for Major Events / Activities that Are Not Public – Army Run, Air Force Run –Improved Visibility and Facilitation of Sponsors Being Targeted and Sponsorship Arrangements Being Concluded –MFRCs Being Subjected to the Policy Provisions –B/W Commanders to be Held Accountable for NPP Sponsorship Activities, with Assistance of PSP Managers –New Policy to be Introduced for FY 13/14

47. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 47 CF Appreciation Program Program launched in Jun 2011 Official CF Discount Program Builds and Expands on Earlier CANEX Discount Program Discounts in Eight Distinct Categories International, National & Local Partners Almost 1,000 Industry Partners Working with American Counterparts to Include Discounts on Popular US Vacation Destinations – Universal Studios, Busch Gardens Have Issued 30,000 Membership Cards to Date e-Boutique with Tickets to Water Park and Cineplex Two New Features Coming: –On-line Registration –Secure Web Login to Allow Special Discounts Solely Available to CF Community

48. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 48 CF R&R Club Component of CF Appreciation Program Linked to US Armed Forces Vacation Club Provide Access to Accommodations –More than 4,000 Resorts, Apartments, Condos and Homes –Destinations in More than 100 Countries Offers the Opportunity to Enjoy Vacations at Popular Destinations Around the World –Starting at Just $369 USD per Unit, per Week

49. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 49 Associate DG - CFOne Card Two Objectives Provide Confirmation that an Individual is a Member of theOne Community - One Million Strong Provide Access to Programs, Services, and Facilities Multi-Phased Approach Spring 2013 – CF Appreciation Program, CANEX Loyalty Program, Military Family ID Fall 2013 – Base, Wing, Unit Recreation Membership Spring 2014 – Messes, Clubs and Activities

50. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 50 Enhanced Web Site More than 6000 Pages of Content Refreshed and Ported to New Platform More Visually-Oriented Presentation; Less Clutter Functional Search Engine Navigation by Service Rather than by Organizational Structure Enhanced Support for Multi-Media Content www.CFPSA.com

51. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES QUESTIONS?