Morale and Welfare Presentation to the RCAF Logistics Conference

1. Morale and WelfarePresentation to the RCAF Logistics Conference Commodore Mark B. Watson 14 November 2012

2. CFPFSS = MORALE AND WELFARE

3. Agenda • Introduction • NPP Governance and DGPFSS organization • Vision, priorities, and strategy • Programs, services, and activities • Initiatives

4. 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;

5. in Organizational View Chief of the Defence Staff Non-Public Staff of NPF Chief Military Personnel Public ASD (delivery by NPP ) Managing DirectorNPP CEO NPF M&W DGPFSS Coordination NPP Fin (CFO) NPP IM/IT(CIO) NPF HR (VP HR) Pers Fin Svcs (Pres SISIP Financial Services) Retail Svcs (Pres CANEX/ NATEX) MilitaryFamily Services Program Casualty Support Management (DCSM) Quality of Life (DQoL) Pers Support Prog (C PSP) & Family Services s)

6. The Defence Team CFPFSS: 5,600* NPF 253 CF 153 PS (* 40% CF affiliation) 5,600 NPFPublic Servants 65,000 Reg Force 25,000 Res Force 28,000

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

8. Sources Investment revenue CFCF loan interest Proceed from Base closures Fees Donations Distributions CFCF loans Capital Projects CBA interest payments SubsidiestoHR, Accounting and IM/IT service delivery Grants to Base/Wing Funds Any other purpose approved by CDS Canadian Forces Central Fund

9. Canadian Forces Central Fund

10. My Vision 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

11. 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

12. Priorities • 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

13. Priorities • 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.

14. Programs and services

15. About CFPFSS Video

16. 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

17. 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 17 CF Newspapers - 80,000 circulation 14 CF Golf Clubs

18. 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 • 3,845CFGroupRSPclients with $128M invested • 6,498 CF members educated on personal financial money management • 9,090 financial counselling appointments held

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

20. Unit of the Canadian Forces with the Mission: Ensure the availability of competitively priced goods and services to satisfy customers and generate revenue. CANEX/NATEX • Programs: • The Personal Insurance • Home Heating Oil Rebate Program • No Interest Credit Plan • Club XTra Loyalty Program • National Partnerships • Tim Horton’s • Aramark (food service) • Subway • OK Tire • Best Vendors (vending)

21. 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) CANEX/NATEX

22. 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.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 Military Family Services

23. DCSM / JPSU Client Services Liaison with Service Partners Joint Speakers’ Bureau OSISS ADMINISTRATIVE SUPPORT PEER SUPPORT Injured Soldier Network Policy drafting and validation National Military Cemetery Soldier On AND MORE … CF Transition Program Transition for ill and injured Return to Work HOPE TRANSITION

24. Personnel Currently being Tracked by JPSU DCSM / JPSU 3

25. Support Our Troops Video

26. 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 Internal Charitable Funds

27. Support Divisions

28. EMPLOYEE DEMOGRAPHICS 2012 Category • 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

29. 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

30. Non-Public Property (NPP)Information Management/Information Technology NPP IM/IT 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.

31. NPP IM/IT – Morale and Welfare Support-Focused 100+ PSP Messes 42 CANEX Outlets 19 SISIP FS Offices MFRCs, Golf Courses & Others Community Centres/Gyms NPP IM/IT

32. 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) IM/IT CONTRACTING

33. Initiatives

34. 10,000 hits since 11 Oct 12 DFit.ca

40. *logo includes link to video: Project FORCE raises bar for Canadian Forces fitness. Army News. 17 Jul 2012.

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

43. SIMPLE SIMULATIONS TEST 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. Loaded Shuttlesstd: 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. 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. 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. 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. 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.

46. CF Appreciation Program

47. 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

48. Initiatives: E-Retailing Developing an online E-Retailing strategy to augment existing store operations. Elite line of clothing and accoutrement’s Developing a consolidated and centralized retail offering instore and online of Canadian Forces memorabilia, clothing and accoutrements. Infrastructure Modernization CANEX/NATEX

49. Questions?

50. SISIP FINANCIAL SERVICES Manuge Class Action • May 2012 - Federal Government did not appeal the Federal Court’s 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