1. Morale and Welfare Presentation to the Army Council Ottawa, 10 April 2014 Commodore Mark B. Watson DGMWS

2. Introduction Organization and background Vision Programs, services, and initiatives 2 Agenda

3. 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 3 Defence Team – Morale & Welfare

4. Organizational View 4

5. 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 5 NPP Governance

6. $4.27M 6 (FY 12/13) Operational Funding

7. Scale of Operations NPP net worth / publicly funded expenditures FY 2012-13 Public Funds 7

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 8 My Vision

9. One Community, One Million Strong Serving Members (Reg. & Res.)130K Families of Serving Members144K Former Members595K Dependants of Former Members350K Other Eligible Members150K 1 MILLION 9

10. Morale and Welfare Services Directory Choose the description that best matches you from the list of categories. View the full catalogue of CFMWS services that may benefit you and follow the links to learn more. Answers one simple question: What services are available to YOU? 10 Visit: www.cfmws.com/YourServices

11. CFGateway.ca / FamilyForce.ca 11 TWO Websites will become ONE (FY 14-15) Same URLs, same audience, single web service

12. Major Associated Initiatives: Development of Military Employment Transition Program web portal The Canada Company Military Employment Transition Program will serve to improve the transition experience. – Align skills, knowledge and experience of transitioning CAF members with needs of employers. – Prior Learning Assessment Review (PLAR) Initiatives. Implementation of Public Service Priority Hiring legislation Improvements to and provision of VAC SCAN information to Reg and Res Force personnel Mandatory Transition Interviews for all personnel, including improved efforts to identify those at highest risk 12 CAF-VAC Priorities

13. Each year approximately 5,000 individuals transition out of the CAF (Reg Force only). Members of the CAF often face obstacles in making a smooth transition to the civilian workforce after leaving the military. A national program that supports transitioning CAF members. – Connects CAF members with our Employer Partners representing various industry sectors across Canada. 13 CAF-VAC Priorities Military Employment Transition Program web portal

14. Commercial Services CANEX: Re-Position & Modernize Re-position the Business New Unique Value Proposition centered on affinity with CAF and our ability to turn our knowledge of, and commitment to, CAF into value for members Grow on- base business Improve marketing (improved local profile, better linkage with Base/Wing, segmented promotions, social media, parking lot events, etc.) Optimize product mix in stores to increase sales and profit (military gear, custom products, kit shops, Elite Line, CAF “bundles”, Tim’s coffee counters, power aisles) Focus on high potential locations Grow into new markets Expand reach to off-base CAF community (reserves, released, retired, DND civilians, etc.) Stand-up an Online Shopping Platform Explore new lines of business (pop-up stores, CAF events, licensing of CAF brands to national retailers) Operational efficiencies Right-size our bricks and mortar footprint (amalgamations, reductions, re-investments, new store formats) Cost reduction measures (streamline management, new staffing model, inventory management) 14

15. Commercial Services SISIP: Re-Position, Re-Engineer & Grow Re-Position the Business Full-service financial services provider with a unique value proposition centered on the relevance & quality of financial advice to CAF community Expand Product Shelf New insurance products (life, health, travel) Basic savings and investment accounts Re-activate self-service investment platform Explore proprietary mutual funds, creditor negotiation, mortgage brokerage Improve Productivity of Advisors Eliminate financial planning fees for serving CAF members in 2 years New way to deliver tax preparation Introduce tiered planning/advice based on complexity of client needs Dual-license more advisors to provide seamless, comprehensive financial advice Stand up “virtual” service delivery (1-800, online, virtual advisors) New Markets Reach out to reserves, released, retired, family members, DND civilian employees Improved local visibility, partnership with Bases/Wings More financial education based marketing campaigns 15

16. 16 CAF Member & Family Insurance SISIP TODAY 3 rd Party mutual funds RRSP TFSA RESP 3 rd Party mutual funds RRSP TFSA RESP Investments Term Life T5 Long Term Disability Term Life T5 Long Term Disability Emergency grants Emergency loans Emergency grants Emergency loans Financial Planner Insurance Reps Financial Counsellor Financial Assistance

17. 17 CAF Community Member & Family Financial Advice Deposits/Credit Insurance Financial Assistance SISIP TOMORROW Checking/Savings Credit cards Mortgages Lines of credit Consumer credit Checking/Savings Credit cards Mortgages Lines of credit Consumer credit 3 rd Party mutual funds RRSP TFSA RESP 3 rd Party mutual funds RRSP TFSA RESP Investments Term Life T5 Long Term Disability Home & Auto Term Life T5 Long Term Disability Home & Auto Emergency grants Emergency loans Emergency grants Emergency loans SISIP Financial Advisors

18. 18 CAF Community Member & Family Advice Deposits/Credit Insurance Financial Assistance Long Term Vision for SISIP Checking/Savings Credit cards Mortgages Lines of credit Consumer credit Mortgage brokerage Checking/Savings Credit cards Mortgages Lines of credit Consumer credit Mortgage brokerage 3 rd Party mutual funds RRSP TFSA RESP Proprietary mutual funds 3 rd Party mutual funds RRSP TFSA RESP Proprietary mutual funds Investments Term Life T5 Long Term Disability Home & Auto Term Life T20, T100 Permanent life Travel Medical Health Term Life T5 Long Term Disability Home & Auto Term Life T20, T100 Permanent life Travel Medical Health Emergency grants Emergency loans Debt consolidation Emergency grants Emergency loans Debt consolidation SISIP Financial Advisors Financial Advice

19. On-Base CAF Families Off-Base CAF Community Bricks & Mortar Stores Print ads, flyers, mail, base promos Local Events Appliances 19 Electronics Computers Furniture Housewares Audio/Video Outdoors Clothing Local Prdts Military Gear Pop/Candy Grocery Gas CANEX TODAY CANEX Product Shelf

20. On-Base CAF Families Off-Base CAF Community Bricks & Mortar Stores Online Store Online Mktg Web site Email Social media Print ads, flyers, mail, base promos Local Events Appliances 20 Electronics Computers Furniture Housewares Audio/Video Outdoors Clothing Local Prdts Ki t Shops Military Gear Custom Items Elite Line Pop/Candy Grocery Gas CANEX TOMORROW CANEX Product Shelf

21. On-Base CAF Families Off-Base CAF Community Bricks & Mortar Stores Online Store Online Mktg Web site Email Social media Print ads, flyers, mail, base promos Canadian Public National Retail Partner Elite line Custom items Military gear Public Events (air shows, Army Run) Local Events Appliances 21 Electronics Computers Furniture Housewares Audio/Video Outdoors Clothing Local Prdts Ki t Shops Military Gear Custom Items Elite Line Pop/Candy Grocery Gas Long Term Vision for CANEX CANEX Product Shelf

22. 22 Commercial Services CANEX Kit Shops: The intent: Retailing Kit Shop/Canteen merchandise in the CANEX stores will not only heighten awareness, increase visibility and accessibility to your products, but will also augment Kit Shops/Canteens’ regular sales. CANEX stores and (soon) on-line platform, with its retail and marketing expertise, will further support this initiative. For example, Retirees, Veterans and family members would have the opportunity to buy Kit Shop/Canteen merchandise at CANEX, where they would not otherwise have the ability to do so. Army EC: CANEX Operations have presented to 96 Kit Shops/Canteens across Canada to date and continue to enthusiastically pursue other Kit Shops/Canteens on their respective Base/Wing. We are actively tracking Kit Shop/Canteen sales and assisting our partners in procurement, supply and replenishment. Currently at the HQ level, we are in discussions with the Log and Dental Corp.

23. 23 Commercial Services CANEX CA Requests → CANEX Provide: C Army Windbreakers (new design) Pips & Crowns Also available: RCAF and RCN Windbreakers RCAF (official) Leather Jacket Mess Dress Uniforms and accessories Court Mounting CADPAT merchandise S.W.A.T. Boots Elite line clothing and merchandise

24. 24 Commercial Services CANEX CANEX Facility in Petawawa: NPP/CANEX has committed $14M for the construction of a 40,000 square foot CANEX facility to replace the current dated CANEX Mall. Largest NPP Capital project in the history of NPF. Current CANEX mall was constructed in the 1950s and the facility no longer meets modern retail infrastructure standards. This project will provide a modern functional “retail and services” facility for the Petawawa Community. The new facility would be built to accommodate retail, grocery and concession services. Current Mall will continue to operate until new facility is completed. Construction is to Commence Apr 2015 and be completed summer 2016.

25. CF Museum system is a collective term for a grouping of CF museums under the technical staff supervision of the Directorate of History and Heritage (DHH). CF Museums are not Morale and Welfare programs, but are NPP self-financed entities. CFMWS developed the Museums Reference guide NPP SOPs. CFMWS offered the services of PSP managers to sit on Museums committees to assist WRT NPP matters. 25 PSP – CF Museums

26. PSP – DFIT.CA Introduce Reactive Interface and Mobile Site (Fall 2014) Focus on fitness required for operations Exercise Prescription for FORCE Evaluation 26

27. PSP – FORCE Program 27,923 members of the Canadian Army have done their FORCE Evaluation (including Class A reservists). The proposed Incentive Program was briefed to CF PMC on 7 Apr and is scheduled as an AFC agenda item on 15 Apr. The intent is to trial the program in May and June in Kingston, Bagotville, Edmonton and Esquimalt and report back to AFC in winter for full implementation in Apr 2015. 27

28. PSP – FORCE Program Canadian Army (Data processed to date) 28 OVERALL PASS RATE MALE: 97% FEMALE: 90% Pass Rate

29. 24 Integrated Personnel Support Centres (IPSC) across Canada 29 Joint Personnel Support Unit (JPSU) Report Date Number Tracked CA PERSONNEL TRACKED CA Pers Tracked Militia Pers Tracked % of Total Tracked (Militia to CAF) % of CA Tracked (Militia to CA) End Feb 145,6701,6473175.6%19.2% End Mar 135,2031,5973446.6%21.5% End Apr 124,6271,7293257.0%18.8%

30. Soldier On Program As of April 2014 News: Cpl Dominic Larocque won a Bronze Medal at the 2014 Paralympic Winter Games in Sochi, Russia as part of the Canadian Sledge Hockey Team Soldier On Participants won a total of 18 medals at the 2014 US Marine Corps Trials held at Camp Pendleton, California from 4-12 March. Capt Lapointe was awarded the Warrior Pentathlon Trophy for earning the most points across five sports. National Golf Camp Greater Toronto Area 28 May – 3 Jun 14 Soldier On Afghanistan Relay Trenton - Ottawa 04-09 May 14 30 St Andrews Legacy Golf St Andrews, Scotland 13-21 Jul 14 30 Jul – 6 Aug 14 Big Battle Field Bike Ride UK/Belgium/France 1-8 Jun 14 Saddle Up Soldier On – RCMP Ottawa, ON 26-30 May 14 Canada Army Run 2014 Ottawa, ON 19 – 22 Sep 14 Invictus Games London, UK 7-14 Sep 14

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32. Distributed packages to CAF members deployed over Christmas period (Op Santa) Provided Amenities for hospitalized members (Hospital Comforts) Offered programs for Ill/Injured members (Soldier On) Supported families with special needs children (MFF) Offset the costs of Retreats for families of the fallen (MFF) Purchased specialized bath-tubs for veterans at Perley Rideau (MFF) Distributed Sports equipment to Bases/Wings (Sportchek donation) Supported children attending Camp Maple Leaf/Muskoka Woods (MFF) 32 Support Our Troops Funds

33. 2013 donation ($300K) for the MFF/Soldier On Event operates in the NPP Accountability Framework Our Staffs work collectively/collaboratively CFMWS/Strategic Outreach provides support in five areas: – Fundraising (supporting text-to-donate, tax receipts) – Sponsorship (acquiring new sponsors, such as BMO) – Merchandise development (launching new collection) – Communications & Outreach (providing spokesperson/testimonials) – HR guidance/support to hire two new full-time resources 33 Army Run

34. 27,000 new cards issued since Oct13 (74,000 cards total) Army Cards (14,024 of the 27,000): – Serving Members: 9,883 – Families of Serving Members 2,847 – Veterans: 1,285 – Families of Veterans: 9 The Way Ahead on Phase Two remains under review – Two Options – Roll-out Sports, Fitness and Recreation Membership Module; or – Trial potential inclusions for next roll-out 34 CFOne Card

35. B/W/U Recreation use ''Book King'' software to manage program registration and facility scheduling. Book King offers many benefits such as booking online and e-commerce. CFMWS purchased Book King membership module in Mar 2013 as part of CFOne program. Due to costs related to NPP connectivity, Book King integrated with CFOne solution is postponed. Implementation of Book King Vanilla solution is moving ahead at CF locations. 35 CFOne Card and Community Recreation

36. “Phase 1” of Reservist Info Sessions (high density urban areas) completed – 13 sessions held across Canada (Gatineau, Toronto, Montreal, Victoria, Richmond, Chilliwack) – 1865 members in attendance – 330 new leads with 244 requesting appointments, 3 new mortgages secured for CDCB/BMO – Majority (over 75%) of attendees enrolling for CFOne Summer 2014: Gagetown, Valcartier, Meaford, Wainwright Fall 2014: 33 Canadian Brigade Group (Ottawa) 36 Reservists Information Campaign

37. 37 Army Reserve Project Goal: to incorporate the Reserve Force Units NPP activities into the NPP accountability framework. 1999: CDS directed that all NPP entities and activities are subject to NPP Governance. 2002: First trial (35/36 and 37 Brigades) – no cost to Units. 2011: 33 and 41 Brigades – pay for service Project Phases: –Survey, delivery models (Completed) –Present model/Costing, Implement (To come)

38. 38 Army Reserve Project 2012 Survey Results: 130 of 143 Units responded to survey 40 Units out of 143 receiving CFMWS 189 of 363 Reserve Mess employees are Staff of the NPF and Reserve CFMWS Payroll Services only

39. 39 NPP – Charitable Status CRA identified 235 CAF organizations holding Charitable status. After CRA/CFLA/CFMWS review: 126 out of the 235 are confirmed to be NPP and not Charities. – These include things such as: Regimental / Branch / Unit Funds and Museums. Currently working with CRA/CFLA to address the situation. Donations to NPP are recognized as donations to “Her Majesty, the Queen” therefore NPP can issue tax receipts.

40. Sponsorship CRS Audit on Outreach, NPP Sponsorship & Donations recently concluded. Key Findings: Significant growth in Sponsorship and Donation (national/local) Complex and cluttered charitable landscape (Outreach) Insufficient controls to ensure long-term success Important Improvements: Policy frameworks for Sponsorship, Donations, Advertising, Fundraising, Hospitality Collaboration Agreements with Third Parties A comprehensive and integrated Risk Management Strategy National Oversight of the AA Program – 34 Principal Authorized Agents ~ 200 trained AAs 40

41. Questions? 41

42. In Bill C-27 there are five main aspects being proposed: A new Statutory Priority Hiring entitlement (for eligible CAF members with a service attributable medical release) Extending the Regulatory Priority Hiring Entitlement (for eligible CAF members with a non-service attributable medical release) Preference for Released CAF Members (for external PS job opportunities) Mobility for Serving CAF Members (for internal PS job opportunities) Mobility for Released CAF Members (for internal PS job opportunities) Implementation planned for FY 14/15 42 CAF-VAC Priorities Implementation of Public Service Priority Hiring Legislation