1. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES Morale and Welfare Royal Canadian Navy Benevolent Fund Ottawa – 2 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 PSP Recreation Services CF Community Gateway Services vary by Base/Wing/Unit Learn more about what recreation and leisure opportunities are available and register online at www.cfgateway.com

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

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

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

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

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

18. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 18 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

19. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 19 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

20. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 20 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

21. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 21 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)

22. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 22 Personnel currently being tracked by JPSU Posted to JPSU1,710 Supported by JPSU (but not posted) 3,032 Total4,742 DCSM / JPSU

23. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 23 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, HRDCs, PS Commission, SISIP-LTD & VRP, Industry, Academia, Accreditation bodies and others. Development of new initiatives

24. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 24 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 Sn Life Financial The Home Depot Total Security Management United Rentals Etc.

25. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 25 DCSM Transition Initiatives 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)

26. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 26 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 Program (MFSP) MFSP policy development, resilience and engagement 3 access points: −Military Family Resource Centres −Family Information Line, 1-800-866-4546 −www.familyforce.ca

27. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 27 Military Family Services Military Family Resource Centres (MFRCs) 32 MFRCs in Canada, 7 sites in the US and 6 sites in Europe Offers unique mandated services: –Child and youth development and parenting support –Prevention, support and intervention –Personal development and community integration –Support during family separation and reunion 3,400 licensed child care spaces in 26 military communities. Over 37,000 hours of emergency, respite and casualty child care support provided to over 2,000 families in 2011-2012. MFRCs provide services in both official languages in accordance with the need of the local community.

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 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, designated Base/Wing Program Administrators (in some cases, RCNBF) Eligibility to make an application does not guarantee approval Each request adjudicated against specific criteria before a decision is rendered

33. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 33 Canadian Forces Personnel Assistance Fund Current Value of Fund ~$17M Sources of Funds: –Levies on NPP Sales –Interest on loan repayments –Personal donations Disbursements (notional) –Serving Navy – 15% –Serving Army/Air Force – 78% –Former members – 7%

34. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 34 Canadian Forces Personnel Assistance Fund (2009 – 2012) Jan – Dec 12Jan – Dec 11Jan – Dec 10Jan – Dec 09 SILP2,208$7.5M2,741$9.3M2,926$9.7M3,277$9.3M MD194$33K222$36K190$28K141$13K EALP496$1.9M572$2.2M597$2.3M573$2.2M Distress Grants 96$200K94$200K121$255K129$229K Distress Loans 58$889K60$685K77$991K126$1.9M Total3,052$10.5M3,689$12.4M3,911$13.3M4,246$13.6M

35. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 35 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.

36. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 36 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

37. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 37 PSP – DFIT.CA Fitness training Launched 11 Oct 2012 Create personalized training regimens Focus on fitness required for operations Over 19,300 CF personnel registered Already over 94,000 visits and 1,100 000 page views

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

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

40. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 40 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.

41. CANADIAN FORCES NON-PUBLIC PROPERTY BIENS NON PUBLICS DES FORCES CANADIENNES 41 Enhanced Web Site More than 6,000 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 Visit: www.cfpsa.com

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