1. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Morale and Welfare Presentation to the RCAF Logistics Conference Commodore Mark B. Watson 14 November 2012

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

3. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Agenda Introduction NPP Governance and DGPFSS organization Vision, priorities, and strategy Programs, services, and activities Initiatives 3

4. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 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; 4

5. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Military Family Services Program Quality of Life (DQoL) 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 (delivery by NPP ) Coordination M&W in & Family Services 5

6. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES The Defence Team 5,600 NPF Public Servants 28,000 65,000 Reg Force 25,000 Res Force CFPFSS: 5,600* NPF 253 CF 153 PS (* 40% CF affiliation) 6

7. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 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 7

8. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 8 Canadian Forces Central Fund Sources –Investment revenue –CFCF loan interest –Proceed from Base closures –Fees –Donations Distributions –CFCF loans –Capital Projects –CBA interest payments –Subsidies to HR, Accounting and IM/IT service delivery –Grants to Base/Wing Funds –Any other purpose approved by CDS

9. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 9 Canadian Forces Central Fund

10. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 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 10

11. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Our community services approach is still rooted in the CF – base structure of the 1950s –NPP was central to the success of the CF communities of the 1950s and will need to be central to any future successful CF community model –Underutilized today; capacity to be powerful enabler A Key Assumption –Former CF members want to belong – want to maintain their CF affiliation Building on this desire will strengthen the CF community A key element of the US model is that retired personnel remain vital to and are valued by the military community One Community – One Million Strong 11

12. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Empowerment –Increased local authority/delegations; –Increased consultation with B/W Comds; and –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 congruent communication strategy to increase CF-wide awareness of the breadth of available programs and services; and –Name and Logo change and better connection to military life and heritage within Staff of the Non-Public Funds Canadian Forces Priorities 12

13. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Synergy –Organizational review; –Continued development and integration of DMFS, DQOL and Dependent Education Management; and –Leverage technology for greater effect, cost benefit and immediacy of impact. Priorities 13

14. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Programs and services

15. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES About CFPFSS Video 15

16. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES PSP Operations at Bases/Wings 36 PSP Managers 4,200+Full time PSP staff Deployment Support 12 years (2000-2012) 1,600 PSP MW staff deployed 32 Rotations served in Bosnia, Afghanistan, Haiti, Ships Messes 100 Regular Force 16

17. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 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 used 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 17

18. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES SISIP FINANCIAL SERVICES Results 2011 141,042 lives insured under Term Life insurance plan with $27.8B in coverage; and $38.5M paid to beneficiaries 100,850 CF personnel protected Long Term Disability $71.2M in support paid under the Vocational Rehabilitation Program 6,805 Financial Planning clients with $187.4M invested 3,845 CFGroupRSPclients with $128M invested 6,498 CF members educated on personal financial money management 9,090 financial counselling appointments held 18

19. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES SISIP FINANCIAL SERVICES Highlights 2012 72 Vocational Rehabilitation Program briefings held for 2,643 participants 17,579 participants attended 209 Canadian Forces Severance Pay briefings 2011 Contributions - $3,192,500 $2,720,650 > Morale and Welfare $362,350 > Other NPP activities $100,000 > Volunteers Recognition Program 19

20. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 20 CANEX/NATEX Unit of the Canadian Forces with the Mission: Ensure the availability of competitively priced goods and services to satisfy customers and generate revenue. Programs: The Personal Insurance Home Heating Oil Rebate Program No Interest Credit Plan Club XTra Loyalty Program National Partnerships Tim Hortons Aramark (food service) Subway OK Tire Best Vendors (vending)

21. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 21 CANEX/NATEX CANEX/NATEX Outlets: 46 CANEX Concessions: 183 CANEX/NATEX Employees: 750 Annual Average Transactions: 4.4 Million Sales and Contributions Annual Average Sales CANEX/NATEX: $135M to $150M Annual Average Morale & Welfare Contributions CANEX/NATEX: $4M Online offering WYN (what you need): Primarily for deployed Members Support our Troops (SOT): Clothing and Accessories Jewellery (Bellecour) Flowers (Pinkerton)

22. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 22 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

23. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES DCSM / JPSU Policy drafting and validation Soldier On Joint Speakers Bureau Injured Soldier Network OSISS PEER SUPPORT HOPE Client Services Liaison with Service Partners ADMINISTRATIVE SUPPORT Return to Work CF Transition Program Transition for ill and injured TRANSITION National Military Cemetery AND MORE …

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

25. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Support Our Troops Video 25

26. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Internal Charitable Funds Support Our Troops Fund is umbrella for: –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 and a wide range of programs funded –Hospital Comforts Fund - basic amenities for hospitalized members $85K dispersed annually to >300 members –Op Santa Claus - gift for every CF member deployed over holidays Gifts delivered to 1,600 deployed members 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 26

27. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Support Divisions

28. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES EMPLOYEE DEMOGRAPHICS 2012 Gender of Employees 62.5% Females / 37.5% Males Multigenerational Workplace –Average Age : 38 years –Employees under 18 : 5.6% –Youngest Employee: 12 years (Camelot) –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 28

29. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 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 >70 locations in Canada, US, Europe, Deployed Operations T4 /Relevé Generated in 2011: 8,289 T4s: 7,134 / Relevé 1: 1,155 29

30. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES IM/IT Security IT Procurement IT Support Services IT Training Network Operations Project Management Quality Assurance Systems Management Technical Writing Application Development Business Analysis Data Management/ Architecture Non-Public Property (NPP) Information Management/Information Technology IS Division Mission To support CFPFSS HQ, B/W Comds, CANEX, SISIP FS, PSP and MFS/DQOL in their role of enhancing the morale and welfare of the military community through the planning, provision, control and maintenance of cost-effective NPP IM/IT services & solutions. NPP IM/IT 30

31. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES NPP IM/IT – Morale and Welfare Support-Focused 42 CANEX Outlets 100+ PSP Messes 19 SISIP FS Offices NPP IM/IT Community Centres/Gyms MFRCs, Golf Courses & Others 31

32. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES IM/IT CONTRACTING IAW CDS Delegation of Authority, IS Division approval is required for all NPP IM/IT acquisitions (IM/IT items include all HW, SW, IM/IT Services and Personnel) Integrity of network Efficiency and economy of support Best value No local authority to establish rogue networks or applications Every equipment, application, network site must be either Public or Non public (NPP)

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

34. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES DFit.ca 10,000 hits since 11 Oct 12 34

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40. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 40 *logo includes link to video: Project FORCE raises bar for Canadian Forces fitness. Army News. 17 Jul 2012.

41. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 41 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

42. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Phase 1 Job Analysis Phase 2 Physiological Measurements Phase 3 Test & Standards Development What is the job? 13 CF Common, essential & physically demanding tasks identified AFC approval (Jan 2011) What are the demands? 6 CF Common tasks quantified AFC approval (Apr 2012) How should we test them? 3 Options for new CF fitness evaluation AFC (05 Dec 2012) 42

43. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 43 SIMPLE SIMULATIONS TEST 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 Shuttles std : 5 min 21 s Using the 20 m lines, 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 80 m. 4.Sand Bag Pullstd : complete Carry one 20 kg sandbag and pull four on the floor over 20 m without stopping. Pros Looks/feels like the job Minimal equipment (sand bags) Objective testing Equal total physical work for all Functional movements Cons Training requirement for assessors

44. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 44 MFS Current Initiatives Access to Non-Emergency Military Family Health Care Military Family Mental Health Military Family Special Needs CF Living Accommodation Policy Deployment Support Continuity of Education and Employment for Military Families Mentor to the National Military Family Council Stakeholder Engagement

45. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES NPP Outreach & Sponsorship SOT Program/Fund is attracting significant contributions from Canadians: Individual Donations of dollars and products/services ; Proceeds from Third Party Events; and Contributions from events/campaigns held by Charitable Organizations (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 NPP charities; Opportunity to increase sponsorship of NPP programs, activities and events, at national and local levels, but policy is being rewritten. 45

46. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES CF Appreciation Program 46

47. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES CFOne Card Two Objectives –Provide confirmation that an individual is a member of the One 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 47

48. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 48 CANEX/NATEX Initiatives: E-Retailing Developing an online E-Retailing strategy to augment existing store operations. Elite line of clothing and accoutrements Developing a consolidated and centralized retail offering instore and online of Canadian Forces memorabilia, clothing and accoutrements. Infrastructure Modernization

49. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES QUESTIONS? 49

50. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES SISIP FINANCIAL SERVICES May 2012 - Federal Government did not appeal the Federal Courts ruling and entered into negotiations. These negotiations are ongoing, and will require the approval of the court before a final settlement is reached. June 2012 – Pension Act Offset eliminated from all active claims Nov. 2012 – Benefits reactivated (without prejudice) for zero sum client with the removal of the Pension Act Offset Manuge Class Action 50