DGPFSS Serving those who serveÀ votre service DGSSPF Non-Public Property Annual Report Armed Forces Council 14 October 2009

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Agenda Introduction Personnel and Family Support Services Delivery Model Highlights from the Annual Report –NPP Vision and Mission –2008/2009 in Review –Governance –Financial Summary –Plans and Priorities Staff of the Non-Public Funds, Canadian Forces Challenges Recommendations Questions

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Introduction / Overview Requirement for Annual Report –CDS direction of 6 Jan 09 – “DGPFSS shall prepare and submit the NPP annual report to the CDS and table the report at Armed Forces Council through CMP” Makeup of Annual Report –Your Non-Public Property Dollars At Work Update serving and former CF personnel and their families Focus on use at local level –Audited Financial Statements

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Defence Services Program Personnel and Family Support Services Delivery Model Staff of the NPF, Canadian Forces Non-Public Property Personnel Support Programs (C109) Casualty Support + Military Family Services (C108) (Public Delivery) (NPP Delivery) NPP M&W Programs Employee Benefits And Pension Funds, Human Res. Publicly Funded Programs

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES NPP Vision and Mission Vision –Vibrant community, recreational and leisure programs and activities, and financial and retail goods and services that are tailored to the military community Mission –To enhance the morale and welfare of the military community, thus contributing to the operational readiness and effectiveness of the Canadian Forces

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 2008/2009 In Review Support Our Troops – under the banner of the Yellow Ribbon –Military Families Fund $2.1M to end FY 08/09 More than 210 families assisted –Hospital Comforts Fund –Soldier On Fund –Operation Santa Claus –Canadian Forces Personnel Assistance Fund

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 2008/2009 In Review (cont’d) CANEX and SISIP FS Contributions –$5.7M to Base/Wing funds –$800K to North Bay Community Centre –$200K to Winnipeg Daycare Centre –$500K to National Youth Program –$100K to Family Community Events –$110K to Volunteer Recognition Program –$60K to Sports Awards –$100K to Op Santa Claus –$20K to “I Quit” –$10K to Winnipeg SOT Lounge

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 2008/2009 In Review (cont’d) Meeting Financial Needs –Life Insurance – war coverage > 130,000 insured –Home and Auto Coverage > 60,000 policies –Canadian Forces Personnel Assistance Fund –Financial Planning –Canadian Defence Community Banking –CANEX No Interest Credit Plan

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 2008/2009 In Review (cont’d) Shopping – CANEX Community, Recreation and Volunteers Messes Specialty Interest Canadian Forces Newspapers Military Family Services Military Sports

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 2008/2009 In Review (cont’d) NPP in Deployed Operations –More than 6,000 applicants, 240 recruited, 200 trained, 150 assigned –Barber shops, travel offices, gyms, clubs, retail outlets, Tim Hortons –$222K re-invested in JTF – Afg MW programs –$382K returned to Base/Wing and Unit funds –Op Santa Claus 57 Canadian Corporations and other donors 3,800 CF members at 23 locations

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Governance CDS Delegation 6 Jan 09 –Suspended DAOD –Delegated operating authority to DGPFSS –Reinvigorated NPP Board with DGPFSS as chair and General/Flag officer and Command CWO/CPO ECS representation –Investment and Pension sub-committees –Audit responsibility to CRS, audit committee reports to CDS through CRS

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Financial Summary Canadian Forces Central Fund Operating Loss$25M Net Worth$102M CANEX Sales$154M Distributed to Bases/Wings$4.8M Net Income$5.9M Net Worth$53M SISIP FS Net Operating Loss$32.8M Net Worth$257M Canadian Forces Personnel Assistance Fund Net Income$0.8M Net Worth$16M * Losses attributable to investment performance * *

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Plans and Priorities Support Our Troops –Consolidate fund raising approach New Deal –Equitability –Funding distribution –Performance measurement –Capital planning –Modernization/streamlining Defence Community Banking –Increase awareness and participation –Program enhancements Infrastructure –New initiatives –Modernization –Sustainability

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Staff of the Non-Public Funds, Canadian Forces Approx 5,000 employees, all CF locations NPF Employees Pension Plan –1,884 participants, 735 annuitants –Actuarial valuation required 31 Dec 09 – anticipate funding shortfall –Employer contributions 203.8% of employee contributions –Pension Committee meets regularly as required –Pension Text and Governance review underway Group Insurance Plans –Health, Dental, LTD – 60:40 Employer : Employee –Base Life and Accidental Dismemberment and Disability – 100% Employer

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Challenges Understanding structure of personnel and family support services ASD funding Public responsibilities for basic support to NPP Infrastructure management The NPP ‘franchise’ Staff of NPF, CF as part of the defence team –Misuse of NPF staff Compliance with NPP Accountability framework War coverage re-insurance NPP governance – NPP Board meetings

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Recommendations Reinforce policy direction –Address relationship of NPP; Staff of the NPF, CF; and Defence Services Program (DSP) –Address misuse of NPP, Staff of NPF to avoid FAA and financial controls –Compliance with NPP Accountability framework Consolidate all Public support funding Establish comprehensive ASD to NPP and associated business planning guidance Engage TB re War Re-insurance

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Questions