New IRP / Move policy-effective Dec 01, 2017 [Merged]

[TCM621]

This card needs to be optional for the members best interest. Requesting an advance and not being able to access it is ridiculous. Option to DFT to personal account should still be an option. “The policy didn’t change just the delivery “ well why are we given a card we can’t use or it locks after we use it 15 times for currency ( plus the card fees are not covered more then once a day)

So can we or can we not request a cash advance like in years past?

 

[kratz]

[quote author=Tcm621
So can we or can we not request a cash advance like in years past?
[/quote]

Answer: No.
Not like in past years.

The only means advertised for accessing cash is ATM withdrawals via the BGRS Reloc card...and all the extra fees forced upon members due to that only option.

 

[newwifey]

Director Relocation Business Management was on MyVoice (on facebook) answering questions about the changes to the CAF Relocation Program.  There may be more answers there if you're interested.

https://www.facebook.com/groups/MyVoiceMaVoix/

 

[Strike]

Ref who pays the lawyers, just doing my paperwork now for a sale outside of the system.

I gave a blank cheque to the lawyers handling the sale and am filling out a "Direction to Pay" form, which authorizes them to pay the realtor commissions the closing of the mortgage and their own fees (about $1,000).  It will also arrange the difference in property taxes and the final balance to me.

So no worries about how the lawyers will be paid or the realtors.  The lawyers will take care of all of that.

Hope this helps.

 

[Pusser]

I may be wrong, but it might be best to use the personalized envelope instead of waiting for the cash at the end because anything claimed on the move is not taxed.  But any cash you receive at the end is taxed.  So the result is, if you just wait for the cash at the end, you're going to get less.

Close, but not quite.  There are a number of typical moving expenses that are tax deductible, but are not specifically reimbursed by the Crown for a posting (e.g. telephone hook-up fees).  The Movement Grant is designed to cover these types of expenses, but if it's just an allowance, then it is taxable.  To make it non-taxable, you actually have to spend it on something tax-deductible.  By paying for things out of your personalized envelope, Brookfield takes care of all the tax issues for you (captured on a T4) and you don't have to worry about claiming it when you file your Income Tax.  However, not everything you may choose to pay for using your Personalized Envelope may actually be tax-deductible, so no, not everything you claim on your move will be tax-free.  Nevertheless, Brookfield takes care of all of this for you and you only have to ensure you include the T4 they issue when you do your taxes at the end of the year.

Interesting side note:  For decades prior to the establishment of the IRP, the CAF was actually in violation of the Income Tax Act in that we were issuing Movement Grants as tax-free allowances.  They should have been taxed and we should only have been able to get refunds by proving we actually spent them on tax-deductible items.

The bottom line is that in order to get the most benefit out of all of this is, you need to claim absolutely everything you can through Brookfield that is related to your move and wait until the very end to have your Personalized Envelope paid out.

 

[high_octane]

So no worries about how the lawyers will be paid or the realtors.  The lawyers will take care of all of that.

A blank cheque doesn't really help me though if the funds are on a ReloCard. Do all lawyers accept pre-paid Visa that are swipe but have a chip but not a PIN and can't take holds?

Directorate Relocation Business Management on Facebook link above:
"All lawyers on the TPSP (Third Party Service Provider) directory should be accepting EFTs. Members can select any TPSP (must be at arm's length) but if a TPSP refuses to accept the new EFT will likely request a certified cheque or bank draft as they have in the past.

Brookfield takes care of all the tax issues for you (captured on a T4) and you don't have to worry about claiming it when you file your Income Tax.  However, not everything you may choose to pay for using your Personalized Envelope may actually be tax-deductible, so no, not everything you claim on your move will be tax-free.  Nevertheless, Brookfield takes care of all of this for you and you only have to ensure you include the T4 they issue when you do your taxes at the end of the year.

DRBM on Facebook:
"Because the contractor was being deemed, inaccurately, the members employer, the OAG (Office of the Auditor General) recommended that the contractor no longer pay the PA. That is why CAF has assumed this transaction. Members will now receive only one T4/RL1 vice one for salary and one for relocation."

"You are correct in that the PA is now provided after taxes into the members’ pay account. We are confirming but it appears that the federal government may have changed the mortgage buy-down rule and have removed it as a non-taxable benefit. Member can either take the PA after tax dollars and contribute to their RRSP and receive the refund on the income tax return (provides more flexibility – top up RRSP, service another debt, or spend as you like) or they can complete a form 1314 and once approved by CRA taxes will not be deducted at source."

 

[Strike]

A blank cheque doesn't really help me though if the funds are on a ReloCard. Do all lawyers accept pre-paid Visa that are swipe but have a chip but not a PIN and can't take holds?

So, the blank cheque is for them to make the deposit from whatever profits are made on your home (on the sell side).  What they will do is take whatever profits are made from the sale of your house to pay the realtor, yourself, and anyone on the other end, like the other lawyer at your destination.  Then they will deposit whatever is left into your account.  That's why they will have you sign an authority to pay, which outlines exactly who is getting how much.

 

[kev994]

I think people are trying to figure out how to not pay the lawyer and realtor with their own money so they still have their 20% down payment at destination. Otherwise they will need to pay mortgage insurance, which IIRC hasn’t been covered for a couple years. From what I’ve been reading on the MyVoice Facebook page many TPSP don’t understand the form BGRS gives for EFT, it’s not that they don’t want to take it, it just makes no sense.

 

[kratz]

I received an email chain this morning from DGCB, regarding the BGRS contract and current issues reported with relocations, namely:

- ATM fees,
- card locking after 15 cash withdrawals, and
- OUTCAN difficulties using the card.

To paraphrase:

The Centre has clearly heard members voice their displeasure and frustrations built into the current program. All involved in resolving the issues agree that members should not bear these costs or inconveniences of these restrictions. All levels are engaged to resolve the identified areas. If there is not a timely solution, DGCB is considering alternate options to mitigate this situation.

These changes are anticipated for this APS, and any new changes will be watched and are expected to "be good for all".   

Sounds like those who have reported problems through their Chain of Command are being heard. Hopefully moves for the rest of the APS won't be so fearsome.

 

[high_octane]

What they will do is take whatever profits are made from the sale of your house to pay the realtor, yourself, and anyone on the other end, like the other lawyer at your destination.  Then they will deposit whatever is left into your account.

Thanks. My realtor of nearly 40 years experience was also asking a lot of questions as there is a lot of rumors and they were used to being paid direct.

So the lawyer/realtor will take their cut off my sale and I already paid the appraiser myself because otherwise I would never be listed before HHTs roll in

So in the end I'm potentially going to have the 5 figures of realtor/lawyer fees on my ReloCard that I have to somehow withdraw at $500/day. Not to mention another potential 5 figures of HEA

DRBM on Facebook again:
"Based on OAG recommendations members’ financial information is not provided to BGRS and therefore they are unable to provide EFT/DFT funds."

It's a good thing I have savings and credit available to buffer all this

 

[Lumber]

I think people are trying to figure out how to not pay the lawyer and realtor with their own money so they still have their 20% down payment at destination. Otherwise they will need to pay mortgage insurance, which IIRC hasn’t been covered for a couple years. From what I’ve been reading on the MyVoice Facebook page many TPSP don’t understand the form BGRS gives for EFT, it’s not that they don’t want to take it, it just makes no sense.

I just went looking (I was finally able to register): where do you find the EFT form of TPSPs?

 

[kev994]

I haven’t made it that far yet, but I did learn the EFT still comes from your relo card balance so you need an advance first.
You mean the video that says how great the system is provided no useful information?

 

[sarahsmom]

The pdf states that once you verify your funds, you fill in the info on the pdf and upload the document to your MSW in “Documents” under “Origin” and notify your BGRS Agent to complete the EFT.
It certainly does not look like an official form, but there it is!

 

[stellarpanther]

For those who've received the reloc card, how long did you have to wait?  I've been registered since 6 March but haven't received it yet.

 

[rnkelly]

For those who've received the reloc card, how long did you have to wait?  I've been registered since 6 March but haven't received it yet.

Not to brag but I registered 2 March and still waiting.

 

[kratz]

[quote author=rnkelly]
Not to brag but I registered 2 March and still waiting.
[/quote]

On the 5th business day , did  you ask your BGRS agent where your card is?

Don't brag / bitch / complain if you don't do your own work.

 

[rnkelly]

Thanks for asking, I actually sent a query through the BGRS portal on the 8th business day and received a response (reasonably quickly to their credit) saying that they process the relocard after PRA completion within 5 business days but that the delivery is then dependant on Canada Post.  I’m not in that much of a rush to get it right now as I’m not incurring expenses but thought I’d add my anecdotal data because of stellarpanther’s post.  I guess my attempt at humour missed the mark...story of my life. 

 

[Lkjhgfdsa]

The pdf states that once you verify your funds, you fill in the info on the pdf and upload the document to your MSW in “Documents” under “Origin” and notify your BGRS Agent to complete the EFT.
It certainly does not look like an official form, but there it is!

A similar form to EFT ourself would help in the interm while fees get sorted


Sent from my iPhone using Tapatalk

 

[kratz]

rnkelly,

I'm big enough to apologize.

Too often people are quick to bash the system, without any effort in using it as designed *flaws and all*.

The BGRS reply is a systematic "brush off".  You should keep your CoC informed, as this is "an issue beyond your control." That may affect your posting.

 

[Sf2]

I think what is confusing about real estate fees is that (at least from what i'm seeing) - the funds aren't accounted for in the "budget" when you view them under finances.  Yes, there are legal fees shown to the tune of $500, all good there.  Request advance, pay lawyer with card or EFT- got it.

But I don't see budgeted funding for the real estate agent - so how do I pay him/her?  That amount is entirely dependant on the sale price of the home.  So once your house sells (or buy at destination), do you submit the sale agreement online then they allocate the funds to be loaded on the card?

That is really the only hole in the plan that I don't understand - everything else seems relatively intuitive.