1. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Morale and Welfare Army Reserve CTC Kingston – 18 June 2013 Commodore Mark B. Watson DGMWS

2. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 2 Agenda Introduction Organization and background Vision Programs, services, and initiatives

3. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 3 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% CF affiliation (Retired and/or Family) 253 Canadian Forces members 153 National Defence public servants 375 at MFRCs (locally employed) Plus many, many volunteers

4. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 4 Defence Team – Morale & Welfare CFMWS4,600 to 6,000 Employees Canadian Coast Guard Canadian Security Intelligence Service (CSIS) Citi Bank Nav Canada 4,500 3,311 5,000

5. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 5 Operational Funding $7.47M

6. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 6 Scale of Operations NPP net worth / publicly funded expenditures FY 2012-13 CANEX 2012-13 Sales: $132M SISIP FS 2012-13 Revenues: $90M Public Funds

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

8. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 8 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 My Vision

9. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 9 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

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

11. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 11 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 Skiing: 3 programs across Canada (no actual facility, operate as extension of recreation program) Gander, Ottawa, Yellowknife 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.cfpsa.com/en/AboutUs/PSP/specialtyinterest

12. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 12 Commercial Services SISIP Financial 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 2012 Results – Programs and Services:

13. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 13 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

14. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 14 Commercial Services SISIP Financial Services Comparative costs: SISIP Financial ServicesIndustry 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 management 2 $59 for one basic income tax return 3 Financial Counselling (Confidential) Free Approximately $120 4 / session or enrollment Fee of 15% of total debt + monthly charge of $50 + cancellation fee 5 Insurance ($100,000 in coverage / 25 year old male / non-smoker) $6/month Varies $11 - $13 /month 6 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.

15. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 15 Commercial Services SISIP Financial Services Life insurance plan advantages: SISIP Financial Services Industry Standard No exclusion for war riskMay 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 underwritingLengthy medical required No medical required to convert insurance after release (If done within 60 days of release) Not available Includes coverage for Accidental DismembermentCost to purchase Free coverage for Dependent Life coverage of $10,000 Cost to purchase

16. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 16 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. Securing a government back-stop for war risk claims is currently under review by JAG.

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

18. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 18 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 Commercial Services CANEX / NATEX OK Tire Andrei Master Tailor

19. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 19 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 Infrastructure modernization Commercial Services CANEX / NATEX

20. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 20 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) Soldier On Injured Soldier Network Helping Others by Providing Empathy (HOPE)

21. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 21 Personnel currently being tracked by JPSU Posted to JPSU1,710 Supported by JPSU (but not posted) 3,032 Total4,742 DCSM / JPSU

22. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 22 DCSM / JPSU Return to Work –13% of files tracked are Reservists Vocational Rehabilitation Program –Two years of consecutive full-time service; or –Medically released in a SDA or SDO

23. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 23 DCSM / JPSU Federal Public Service Employment –Primary Reservists, full-time Class B > 180 days –Reservists on Class C service Education reimbursement for Reservists –Funding topped up by MFF for members released medically Second Career Assistance Network –Working toward developing Reservist module Reserve Force Compensation (as a result of military service) –Extension Class C: Applicable to injuries / illness incurred in SDA / SDO

24. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 24 DCSM Transition Activities National Coordination of all SCAN activities: –Second Career Assistance Network seminars, –Medical seminars, –Career Transition Workshops, –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. Development of new initiatives

25. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 25 DCSM Transition Initiatives 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. Military friendly employers examples: Amazon BMO Financial Group CN Coca-Cola Refreshments Canada College of the North Atlantic Commissionnaires Ernst & Young LLP GE Canada Loblaw Companies Limited Royal Bank of Canada Shell Canada Sobeys Inc. Suncor Energy Sun Life Financial The Home Depot Total Security Management United Rentals Etc.

26. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 26 Military Family Services 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

27. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 27 BY THE NUMBERS: CAF Families 67,500 Canadian Forces military families 83% of families of Regular Force members living off base in civilian communities Military Family Resource Centres’ staffing and volunteers In 2012-13, there were an estimated 375 FTE staff employed and 12,636 volunteers at MFRCs to carry out services and programs for families. Family Information Line: In 2012, 2323 calls were made to the FIL as well as 4760 calls to the automated system that has deployment information. FamilyForce In 2012, 328,062 visits to the FamilyForce site, and there were 196,832 total unique visitors. Military Family Services

28. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 28 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

29. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 29 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). Support Our Troops Program

30. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 30 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

31. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 31 Soldier On Participation 630 Total members supported by Soldier On As of 1 Apr 13

32. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 32 Soldier On Demographics Region Officer NCM Retired Total NS/NFLD971585 NB/PEI328940 QC810314125 S ON220527 E ON712620153 Prairies329840 AB/NC7907104 Pacific542956 Total4450977630 As of 1 Apr 13 86% Serving 14% Retired

33. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 33 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)* −Educational Assistance Loan Program ( $1.9M to 476 members)* −Self Improvement Loan Program ( $7.5M to 2,208 members)* −Financial Distress Program ( $1.1M to 154 members)* *data based on calendar year 2012 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

34. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 34 Vacations for Veterans Program Launched in January 2012 Program is available to CF 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 CF members/families have benefited from this program

35. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 35 PSP Fitness training DFIT.CA Launched 11 Oct 2012 Create personalized training regimens Focus on fitness required for operations Over 20 000 CF personnel registered Project FORCE

36. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 36 CF Appreciation Program Official discount program of the CF 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

37. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 37 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.

38. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 38 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 CF Appreciation Program

39. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 39 CFOne Card 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.

40. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 40 CFMWS Reserve Project – Mandate 1999 – CDS directed that all NPF activities/entities are subject to the NPP Accountability Framework 2011 – CRS Notification of Audit – Reserve Force: “NPP reserve operations operate largely outside the national NPP accounting framework, without consistency in oversight, reporting or financial record keeping”

41. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 41 CFMWS Reserve Project – Charter 2011 – Meeting between CA Comptroller and CFMWS where purpose of project was agreed to by all: “The purpose of this project is to incorporate the Reserve Force Units NPP activities into the NPP Accountability Framework by providing accounting and compliance review services, HR services, IM/IT support and management oversight on unit and mess operations.”

42. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 42 CFMWS Reserve Project – Objectives CA Requirements –Reduce workload on reservists –Proposal to be cost neutral –Requirement is for more than accounting services, for example HR and PSP support are also needed CFMWS Requirements –Require funding as CFMWS not resourced for this task –Clearly defined Scope of Reserve Force NPP Operations

43. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 43 CFMWS Reserve Project – Plan Phase 1: Data Gathering – Completed Phase 2: Service Delivery Alternatives – Completed Phase 3: Trials at 33 & 41 CBG: Pay for Service – On going Phase 4: Approval CFMWS/CA – TBC Phase 5 & 6: Training & Implementation Phases – timelines to be confirmed

44. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 44 CFMWS Reserve Project – Envisioned overall benefits Compliance with CDS Direction Standardization of Reserve Force NPP Operations –Standardization Oversight Accounting Reporting Human Resources Administration Payroll IMIT Mess Management Risk reduction to both Reserve Unit CO’s and CDS

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