ACCOUNTS AND FUNDING
COMPONENTS
Please note that a revised Canadian Armed Forces Relocation Directive (CAFRD) has taken effect as of March 1st, 2025.
In this ReloFact, we review the Core and Custom Accounts – the two spending accounts from which CAFRD benefits are funded. For additional information, please refer to Articles 1.2.01, 1.2.02, 1.2.03, and 1.2.04 of the CAFRD.
The CAFRD benefits are funded from two sets of spending accounts: The Core Account and the Custom Account. Unused benefits payable from either spending account will be forfeited and cannot be exchanged or assigned a monetary value to pay for other benefits or expenses.
Core Account
The benefits funded from the Core Account are intended to compensate you for common relocation expenses considered to be essential to your move. The Core Account is not a fixed amount of funds.
Custom Account
The benefits funded from the Custom account are meant to enhance / augment benefits payable from the Core Account funds and provide you with the flexibility to choose other benefits in the CAFRD that meet your relocation needs.
Your Custom Account will hold a fixed amount of funds, and this amount is determined by an individualized formula. The default Custom Account formula is based on the factors listed below.
The formula is as follows: A + B + C = D where:
A) The accommodation factor
B) The transportation factor, calculated by using the kilometric rate that corresponds with the annual Department of Finance income tax deduction limit for the use of personal vehicle for business purposes on the member’s Change of Strength (COS) date. It shall be used with the following formula: [One-way distance (km) x Department of Finance rate x family size] x 0.35
C) The Household Goods and Effects (HG&E) shipment factor
D) The total amount available in the Custom Account
Default Custom Account Formula
A The greater of
a. $1,000; or
b. to a maximum of $5,250, 35% of the real estate commission based on the sale price of the principal residence if sold prior to any appraisal being conducted, or on the initial appraised value.
+B 35% of the cost of one-way transport from old place of duty to new place of duty for member
and dependants.
+C 35% of the average cost of shipping 454 kg (1,000 lbs) of HG&E per qualifying room from current residence to new residence.
=D Total Custom Account Funds.
It is important to note that moves under Part 3: Special Circumstances in the CAFRD have different funding formulas for the Custom Account. This will depend on your move type and situation. For example, Unaccompanied moves have a different Custom Account than regular postings. Benefits found in the CAFRD, under any circumstances, cannot be exchanged, traded, assigned a monetary value, or changed through the provision of a business case.
This ReloFact is a general guide, meant for informative purposes only. The CAFRD remains the authority for the reimbursement of relocation expenses and referring to it for eligibility prior to
incurring expenses is encouraged.
