Erratum

Subsequent to the tabling of the Department of National Defence's Report on Plans and Priorities for 2010-11, a typographical error in the table has been corrected. Civilian Full Time Equivalent (FTE) values of 6,340, 5,231, and 5,176 have been replaced with 500, 500, and 500.

MINISTER'S MESSAGE

Minister of National DefenceAs Minister of National Defence, it is my pleasure to present the department's Report on Plans and Priorities for fiscal year 2010-11. As outlined in the Canada First Defence Strategy (CFDS), the Canadian Forces (CF) and the Department of National Defence (DND) are vested with three primary responsibilities - to protect Canada's territory and citizens, to be a strong and reliable partner in the defence of North America, and to project leadership abroad.

None of this would be possible without the members of the Defence Team – the Regular Force members, Reservists and Civilians – in whose work I take great pride.

In fiscal year 2010-11, Defence will conduct a number of operations in Canada. Building on the experience gained from the Vancouver 2010 Olympic and Paralympic Winter Games, Defence will stand ready to partner with lead departments and agencies at the G8, G20 and North American Leaders' Summits, all being held in Canada in 2010. Throughout the reporting period, the Defence Team will also maintain a high profile in the Arctic, a Government of Canada priority. The CF will conduct routine and contingency operations in the North, and Defence will support the Government in demonstrating our sovereignty. The CF will also maintain search and rescue capabilities to help Canadians in distress anywhere in the country, including the Arctic.

The Defence Team will continue to work closely with the United States, our most important ally in the defence of our shared continent. From our daily cooperation through the North American Aerospace Defence Command (NORAD), to participation in exercises, operations and bilateral meetings, the Defence Team will continue to strengthen our long-standing and entrenched relationship with the US. Within the Americas, we will build new relationships and strengthen existing ties through defence diplomacy.

Defence will also work to project Canada's leadership abroad, working closely with our Allies. The upcoming reporting period will be distinguished by the evolution of our role in Afghanistan and will thus be significant for both the CF and DND. We will focus on preparing for the end of the current mission while planning to ensure that military readiness levels are maintained. While fulfiling our commitments in Afghanistan, the CF will be prepared to deploy elsewhere around the world if asked by the Government of Canada as their rapid and effective response to the tragic events in Haiti has demonstrated.

In order to meet these and other unforeseen operational demands, we need to capitalize on the Defence Team's experience while continuing to recruit and retain Canada's brightest and most capable individuals into the CF and the Department's civilian workforce. We must also continue to support our ill and injured CF members, our veterans, and their families. The Defence Team will continue to implement measures designed to address the challenges that our members and families face and provide high levels of casualty support programs and health services.

Defence must continue to generate and sustain a military that is fully integrated, flexible, multi-role and combat-capable. To accomplish this, the CFDS outlines a plan to rebuild the CF through balanced investment across the four pillars upon which military capabilities are built – personnel, equipment, readiness and infrastructure. Defence will carefully manage its resources across the four pillars to ensure that the CF can deploy quickly and effectively in response to Government direction.

The members of the Regular and Reserve Force and the civilian personnel who comprise the Defence Team will continue to work closely to ensure that Defence delivers on the investment priorities outlined in CFDS. Increasing the flexibility of our investment plan and ensuring prudent and responsible management of our resources is necessary if we are to procure and maintain the equipment and infrastructure necessary to deliver on our commitments to the Government.

During the reporting period, Defence will also continue to offer significant benefits to Canadians. A strong military will provide our country with defence and security in this uncertain world.  As well, the long-term investments of CFDS will provide Canadians across the country with high-value jobs, help stimulate the economy, and further research and development.

In 2010, the CF will celebrate the first one hundred years of its maritime presence in Canada. Events commemorating the Canadian Naval Centennial will take place in communities across the country – one which is bordered by three oceans. This will be an ideal opportunity for Canadians to learn about our proud naval traditions and to honour the contributions of the men and women who have served Canada so well over the past century. Building on the past, we look forward with promise to the next 100 years.

I am proud to fulfil my duties as the Minister of National Defence and represent the dedicated and committed members of the Defence Team.

 

The Honourable Peter MacKay, P.C., M.P.

Minister of National Defence


SECTION I: DEPARTMENTAL OVERVIEW

Introduction

The following recurring themes and challenges are highlighted within the report and outline the focus of our planned activities for the 2010-11 reporting period:

Raison d'être and Responsibilities

On behalf of the people of Canada, the CF, with the support of the Department of National Defence (DND), stand ready to perform three key roles:

The Defence mandate is carried out by DND and the CF with the support of a group of related organizations and agencies within the portfolio of the Minister of National Defence. For further details on selected Defence Portfolio organizations, please refer to Section III: Other Items of Interest – Selected Defence Portfolio HR and Financial Resources.

The National Defence Act establishes DND and the CF as separate entities, operating in an integrated National Defence Headquarters, as they pursue their primary responsibility of providing defence for Canada and Canadians. Defence continues to adapt to an evolving strategic global security environment and is prepared to meet emerging non-traditional challenges such as piracy and cyber attacks, as well as traditional ones, including global terrorism, weapons proliferation and the enduring threat of regional conflicts manifesting around the world. In addition to the global financial situation, the foregoing will continue to occupy the international agenda and challenge Canada's security and prosperity. For further information on the Legislation and Regulations for which the Minister of National Defence is responsible, please see Section III: Other Items of Interest – Legislation and Regulations Administered.

Strategic Outcomes and Program Activity Architecture

The Program Activity Architecture (PAA) is mandated by Treasury Board Secretariat (TBS) as the planning, management and reporting mechanism for Defence. It is broken down into five strategic outcomes, supported by a set of 17 program activities. This structure enables the Department to tell a more comprehensive performance story while facilitating accountability through the use of clear financial attributions and reporting.

With the evolution of the TBS' Management, Resources and Results Structure (MRRS) policy, a requirement arose to have more than one program activity linked to each strategic outcome. In addition, the existing PAA structure did not provide a sufficiently detailed explanation of how Defence spends its budget and is, therefore, unable to tell a comprehensive performance story for the Department. As a result, Defence redesigned the PAA to create a management tool that not only allows ease of accountability through clear financial attributions and reporting in the PAA, but also aligns programs to the way the Defence services programme is managed.

Each Defence strategic outcome and program activity is aligned to Defence priorities, corporate risks, and to one or more of the Government of Canada Outcome Areas. For further information, please refer to Section III: Other Items of Interest – Departmental Link to Government of Canada Outcome Areas.

For a full illustration of the Defence PAA, please refer to Section III: Other Items of Interest – Defence Program Activity Architecture. For descriptions of Defence strategic outcomes and associated program activities, please refer to Section II: Analysis of Program Activities by Strategic Outcomes.

Program Activity Architecture (PAA) Crosswalk

The PAA structure has been revised to better reflect the vast scope of Defence's mandate. This is realized through the identification of all programs allowing Defence to acquire the necessary resources; bring those resources to a desired state of readiness; utilize them in military operations as directed by government; and provide the necessary supports for Defence Team members while contributing to Canadian society.


2009-10 Program Activity Architecture
(2009-10 forecast - $thousands)
Crosswalk 2010-11 Program Activity Architecture
(2009-10 forecast - $thousands)
Strategic Outcome Program Activity Strategic Outcome Program Activity
Description Description Forecast $ Description Forecast $ Description Forecast $
Canadians' Confidence that DND/CF has relevant and credible capacity to meet Defence and Security Commitments Generate and Sustain Integrated Forces 14,318,016 Arrows Resources are Acquired to meet Government Defence Expectations 4,093,668 Defence Science and Technology 375,368
Recruiting of Personnel and Initial Training 589,969
Equipment Acquisition and Disposal 2,484,711
Real Property and Informatics Infrastructure Acquisition and Disposal 643,620
 
National Defence is Ready to meet Government Defence Expectations 10,016,639 Maritime Readiness 2,100,697
Land Readiness 3,782,951
Aerospace Readiness 2,109,481
Joint and Common Readiness 2,023,510
   
Success in assigned missions in contributing to international peace, security and stability Defence operations will improve Peace, Stability and Security wherever deployed 3,848,242 Defence Operations will improve Peace, Stability and Security wherever deployed 4,307,808 Situational Awareness 658,795
Canadian Peace, Stability and Security 344,372
Continental Peace, Stability and Security 183,324
International Peace, Stability and Security 3,121,317
   
Good governance, Canadian identity and influence in a global community Defence operations will improve Peace, Stability and Security wherever deployed  1,083,186 Care and Support to the Canadian Forces and Contribution to Canadian Society 1,274,250 Defence Team Personnel Support 747,916
Canadian Identity 344,554
Environment Protection and Stewardship 163,660
Non-Security Support 18,120
   
Internal Services  1,488,545 Internal Services  1,045,623
Totals: 20,737,989   20,737,989

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group

Risk Analysis

Defence is influenced by a wide range of factors – both domestic and international – that have an impact on how we carry out our mandate. These factors present us with both risks and opportunities, which will be taken into account as we deliver on our roles and responsibilities. Our continuous monitoring of these emerging issues, developments and trends allows us to anticipate and respond to the challenges, mitigate the risks and take advantage of opportunities.

The Corporate Risk Profile (CRP) documents the key risks facing Defence and is, therefore, an important influence in our planning and resource allocation decisions. It is a tool through which the executive leadership can provide guidance and direction to mitigate those corporate risks vital to the establishment and sustainment of Defence operations. In general, operational and tactical risks are not elevated to the CRP as these are inherent to Defence's business and are successfully managed on a day to day, routine basis.

The CRP has been derived from the review of a multitude of identified external and internal risks that require mitigation. For fiscal year 2010-11, three key corporate risks having a Defence-wide impact have been highlighted. These include, but are not limited to, Defence Team Capacity Issues, Canadian Forces Reconstitution, and Investment Plan (IP) Flexibility. The key corporate risks, as well as their attendant mitigation actions, are presented below.


Key Corporate Risks
Risk Action
Defence Team Capacity Issues Placing a priority on focused recruiting and retention initiatives, and leadership and professional development opportunities
Canadian Forces Reconstitution Planning for the end of our current mandate in Afghanistan, and preparing for post-2011 readiness requirements
Investment Plan Flexibility Addressing the lack of IP flexibility to deal with cost increases or new capability requirements

To fulfill the Government's expectations, Defence will continue to manage these corporate risks in an effective manner.

Planning Summary

Table: Financial Resources


Financial Resources ($ thousands)[2]
Planned Spending
2010-11 2011-12 2012-13
Departmental Spending 21,827,387 20,434,843 21,092,746
Capital Spending
(included in Departmental Spending)
5,499,442 4,888,696 5,387,915

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

Notes:

The decrease in Planned Spending in fiscal year 2011-12 is as a result of the reduced spending requirements for the Afghanistan mission which are higher in fiscal year 2010-11 than fiscal year 2011-12, and lower cash flow requirements for major capital projects in fiscal year 2011-12.

An explanation of the future trend in Defence spending is detailed on page 13.

Table: Human Resources


Human Resources Summary (Full-Time Equivalent - FTE) 4
  2010-11 2011-12 2012-13
Regular Force 67,742 68,000 68,300
Primary Reserve (Class C) 1,600 386 223
Total Military 69,342 68,386 68,523
Total Civilian 30,355 30,411 30,400
TOTAL 99,697 98,797 98,923

Sources: Vice-Chief Defence Staff Group, Chief Military Personnel Group, Assistant Deputy Minister (Human Resources – Civilian) Group

Note:

Class A and B Reserve Force FTE numbers are calculated using a different methodology, and are not included in this table. Further information on Primary Reserve Planned Expenditures can be found in Section III: Other Items of Interest - Reserve Force - Primary Reserve Planned Expenditures / Primary Reserve Full Cost Estimates.

Tables: Planning Summary


Strategic Outcome:
Resources are Acquired to meet Government Defence Expectations
Performance Indicators Targets
Performance against CFDS as measured by Investment Plan and Business Plans 100%
Program Activity Spending ($ thousands) Alignment to Government of Canada Outcomes
Forecast
2009-10
Planned
2010-11 2011-12 2012-13
Defence Science and Technology CS 28,725 40,528 36,639 36,485 An innovative and knowledge-based economy
DS 375,368 369,004 351,882 386,522
Recruiting of Personnel and Initial Training CS 7,602 9,338 8,441 7,714 A safe and secure world through international cooperation
DS 589,969 604,909 588,101 589,014
Equipment Acquisition and Disposal CS 2,376,161 3,415,763 3,085,066 3,769,621 A safe and secure world through international cooperation
DS 2,484,711 3,556,832 3,222,653 3,908,315
Real Property and Informatics Infrastructure Acquisition and Disposal CS 579,224 877,460 739,650 580,624 Strong economic growth
DS 643,620 948,962 793,445 635,064
Total Planned Spending CS 2,991,713 4,343,089 3,869,797 4,394,445  
DS 4,093,668 5,479,708 4,956,081 5,518,915

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group
DS: Departmental Spending; CS: Capital Spending (included in Departmental Spending) | Due to rounding, figures may not add up to totals shown.
Note: The decrease in departmental planned spending in fiscal year 2011-12 is largely a result of a decrease in Equipment Acquisition and Disposal.


Strategic Outcome:
National Defence is Ready to meet Government Defence Expectations
Performance Indicators Targets
% Readiness level for Maritime, Land and Aerospace combined 100%
Program Activity Spending ($ thousands) Alignment to Government of Canada Outcomes
Forecast
2009-10
Planned
2010-11 2011-12 2012-13
Maritime Readiness CS 54,658 35,104 31,934 29,369 A safe and secure world through international cooperation
DS 2,100,697 1,977,912 1,891,868 1,901,074
Land Readiness CS 92,758 114,474 103,833 95,212 A safe and secure world through international cooperation
DS 3,782,951 4,049,320 3,890,085 3,901,812
Aerospace Readiness CS 19,748 24,796 22,775 21,147 A safe and secure world through international cooperation
DS 2,109,481 2,270,696 2,170,264 2,186,772
Joint and Common Readiness CS 151,224 191,113 154,160 200,713 A safe and secure world through international cooperation
DS 2,023,510 2,204,212 2,076,996 2,135,513
Total Planned Spending CS  318,389  365,488  312,702  346,441  
DS 10,016,639 10,502,139 10,029,213 10,125,170

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group
DS: Departmental Spending; CS: Capital Spending (included in Departmental Spending) | Due to rounding, figures may not add up to totals shown.
Note: The decrease in departmental planned spending in fiscal year 2011-12 is largely a result of a decrease in Joint and Common Readiness.


Strategic Outcome:
Defence Operations will Improve Peace, Stability and Security Wherever Deployed
Performance Indicators Targets
% Effects Achieved (aggregate for all commands) 100% of intended effects achieved
Program Activity Spending ($ thousands) Alignment to Government of Canada Outcomes
Forecast
2009-10
Planned
2010-11 2011-12 2012-13
Situational Awareness CS 110,975 136,164 123,554 113,340 A safe and secure world through international cooperation
DS 658,795 665,323 637,018 630,514
Canadian Peace, Stability and Security CS 4,315 5,957 5,247 4,834 A safe and secure Canada
DS 344,372 383,055 307,255 309,096
Continental Peace, Stability and Security CS 1,183 5,352 5,278 5,231 A strong and mutually beneficial North American partnership
DS 183,324 201,963 184,769 186,749
International Peace, Stability and Security CS 507,548 553,429 490,774 449,272 A safe and secure world through international cooperation
DS 3,121,317 2,360,997 2,223,306 2,217,760
Total Planned Spending CS  624,020  700,902  624,853  572,677  
DS 4,307,808 3,611,337 3,352,348 3,344,119

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group
DS: Departmental Spending; CS: Capital Spending (included in Departmental Spending) | Due to rounding, figures may not add up to totals shown.

Note: The decrease in departmental planned spending in fiscal year 2011-12 is largely a result of a decrease in International Peace, Stability and Security.


Strategic Outcome:
Care and Support to the Canadian Forces and Contribution to Canadian Society
Performance Indicators Targets
% of Public Support for the Canadian Forces 85-100%
Program Activity Spending ($ thousands) Alignment to Government of Canada Outcomes
Forecast
2009-10
Planned
2010-11 2011-12 2012-13
Defence Team Personnel Support CS 15,191 15,580 14,085 12,872 A safe and secure world through international cooperation
DS 747,916 643,219 588,954 592,100
Canadian Identity CS 7,811 9,599 8,681 7,936 A vibrant Canadian culture and heritage
DS 344,554 346,994 338,328 339,323
Environment Protection and Stewardship CS 676 841 767 707 A clean and healthy environment
DS 163,661 152,763 142,121 144,774
Non-Security Support CS 63 78 70 64 Government Affairs
DS 18,120 22,191 18,440 18,224
Total Planned Spending CS 23,741 26,098 23,603 21,579  
DS 1,274,251 1,165,167 1,087,843 1,094,421

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group
DS: Departmental Spending; CS: Capital Spending (included in Departmental Spending) | Due to rounding, figures may not add up to totals shown.

Note: The decrease in departmental planned spending in fiscal year 2011-12 is largely a result of a decrease in Defence Team and Personnel Support.


Strategic Outcome:
Internal Services
Performance Indicators Targets
- -
Program Activity Spending ($ thousands)
Forecast
2009-10
Planned
2010-11 2011-12 2012-13
Internal Services CS 50,013 63,865 57,741 52,773
DS 1,045,623 1,069,036 1,009,357 1,010,121

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group
DS: Departmental Spending; CS: Capital Spending (included in Departmental Spending) | Due to rounding, figures may not add up to totals shown.

Planned Spending for Fiscal Year 2010-11 by Program Activity

Planned Spending for Fiscal Year 2010-11 by Program Activity

Financial Spending Trend

Financial Spending Trend

Notes:

The change in financial spending between fiscal years 2010-11 and 2011-12 is mostly attributable to items that are reflected in the spending authorities for fiscal year 2010-11 and not in the spending authorities for fiscal year 2011-12 such as Afghanistan funding and capital equipment projects. Details are provided in Section III - Supplementary Information.

The Canada First Defence Strategy (CFDS) was approved beginning fiscal year 2008-09.

The Canada First Defence Strategy

To help Defence carry out its roles and responsibilities, the Canada First Defence Strategy (CFDS), released in May 2008, ensures that Canada maintains a first-class, modern military that is well trained, equipped and prepared to meet the challenges of the evolving security environment.

3 Roles: Canada, North America, Abroad

To accomplish this, the CFDS provides a 20-year roadmap to rebuild and modernize the CF with stable and predictable funding that permits long-term planning and investment in four Defence capability areas or pillars:

The CFDS articulates the broad strategic vision for Defence aligned with the level of ambition identified by the Government and outlines six core CF missions in domestic, continental and international contexts:

For further information on the Canada First Defence Strategy please visit the following website: www.forces.gc.ca/site/focus/first-premier/index-eng.asp.

The Defence Priorities

The Defence Priorities are informed by key corporate risks and represent a focused number of areas where efforts and resources will be directed to mitigate those risk areas and in so doing, address gaps in capability or capacity to enable Defence to act effectively on government direction. To respond to the Government's priorities for Defence and support the activities essential to achieve excellence in our operations and management, the Defence Priorities articulated in RPP 2010-11 are to:

Table: Contribution of Defence Priorities to PAA Strategic Outcome(s) and Government of Canada Priorities

This table illustrates the Operational and Management Priorities for Defence which will support Government of Canada Priorities during the reporting period. The description provides the rationale and outlines the planned activities for each Defence priority. Performance information will effectively measure the progress of each activity and will facilitate a meaningful assessment of how well these activities have contributed to the achievement of Defence's Strategic Outcomes.


Defence
Priority
Type Links to Strategic Outcome(s) Description
Acquire resources to meet Government's Defence expectations The CF are ready to meet Government's Defence expectations Increase Peace, Stability and Security Care for CF and Contribution to Canadian Society Internal Services
OPERATIONAL
Deliver Excellence
at Home
O       CFDS - Maintaining ability to conduct six core missions within Canada, in North America and globally, at times simultaneously

. Support to RCMP for G8, G20 and North American Leaders' Summits
. Demonstrate Arctic Sovereignty
. Complete plan for post-2011 readiness
. Conduct maritime, land, and air domestic surveillance of Canadian territories
Conduct International Missions O      

CFDS - Maintaining ability to conduct six core missions within Canada, in North America and globally, at times simultaneously

. Continue efforts to achieve mission success in Afghanistan
. Plan for end of current mandate in Afghanistan
. Support to NATO and UN led-missions
. Enhance Defence diplomacy activity, especially in the Americas
MANAGEMENT
Contribute To Whole-Of-Government Priorities O       CFDS – Building on the Government's investments in the military

. Support Other Government Departments (OGD) in development of National Shipbuilding Strategy
. Implement Sustainable Development Strategy
. Contribute to Advantage Canada
Strengthen The Defence Team O      

Public Service Renewal – Planning, recruitment, employee-development, and enabling infrastructureCFDS – Investing in people

. Provide enhanced support to the ill and the injured and to the families of CF members
. Advance a comprehensive plan to align and optimise the workforce
. Recruit, develop, and sustain personnel to effective strength
. Retain and strengthen capacity through succession planning
. Continue to build leadership through maximizing personnel potential to meet future challenges
. Strengthen continuous learning and professional development
Enhance Defence Management O      

CFDS – Strengthening key military capabilities through focused investment in each of the pillars

. Improve management of the IP to balance CFDS requirements
. Progress Web of Rules[3] within Defence
. Advance the Defence Procurement Initiative
. Integrate risk and performance into Defence management and planning processes
. Continue to strengthen the core Control Framework in support of audited departmental financial statements
Legend: N = New  O = Ongoing  P = Previously Committed to ■ = Primary  
◘ = Secondary

Defence Planning and Performance Reporting Framework

The following diagram illustrates the alignment of Defence's PAA, Risks and Priorities to the CFDS. This framework forms the basis for communicating Defence's planning story throughout this report.

Figure: Defence Planning and Performance Reporting Framework

Figure: Defence Planning and Performance Reporting Framework

Sources: Vice-Chief of the Defence Staff Group / Chief of the Air Staff Group / Assistant Deputy Minister (Public Affairs) Group

Voted and Statutory Items

The Voted and Statutory Items table replicates the departmental summary table displayed in the Main Estimates. This table provides the fiscal year 2010–11 Main Estimates information tabled in Parliament just a few weeks before the RPP, and is presented to Parliament before approving a supply bill. Parliament approves the voted items on an annual basis, and the statutory items are displayed for information purposes only. The major increases and decreases in funding between the fiscal year 2009-10 and fiscal year 2010-11 Main Estimates resulted in a net increase of $1,862.1 million.


Vote (1, 5, 10) or Statutory Item (S) Truncated Vote or Statutory Wording 2009-10 2010-11
Main Estimates
($ Thousands)
1 Operating expenditures 13,460,216 14,648,628
5 Capital expenditures 4,272,890 4,854,572
10 Grants and contributions 223,498 227,242
(S) Minister of National Defence salary and motor car allowance 78 79
(S) Payments under the Supplementary Retirement Benefits Act 6,079 5,459
(S) Payments under Parts I-IV of the Defence Services Pension Continuation Act (R.S., 1970 c. D-3) 1,319 1,159
(S) Payments to dependants of certain members of the Royal Canadian Air Force killed while serving as instructors under the British Commonwealth Air Training Plan (Appropriation Act No. 4, 1968) 84 64
(S) Contributions to employee benefit plans - Members of the Military 971,634 1,001,715
(S) Contributions to employee benefit plans 303,664 362,593
  Total Department 19,239,461 21,101,512

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

Notes:

Due to rounding, figures may not add up to totals shown

The Main Estimates of fiscal year 2010-11 are $1,862.1 million higher than those of fiscal year 2009-10.  The increases in funding are as follows: $822.0 million increase for the Afghanistan mission to ensure the safety and operational effectiveness of Canadian troops; $297.4 million for the Medium-to Heavy-Lift Helicopter project, which provides a new capability and CH-147 Chinook helicopters for the CF; $246.6 million for the Tactical Airlift Capability Project, to replace Hercules aircraft that are reaching the end of their useful life; $200.0 million for the Maritime Helicopter Project, to replace the CH124 Sea King with a fleet of new helicopters; $196.0 million in funding to offset the loss of purchasing power due to price increases; $166.6 million for increases to military pay and allowances; $128.1 million for the Tank Replacement Project to replace the aging Leopard 1 tank fleet; $125.4 million for the Family of Land Combat  Vehicles projects, to upgrade or replace armoured military vehicles to modernize the CF; $122.8 million for increases in civilian pay; and a $180.3 million increase for miscellaneous Departmental requirements.

The increases in funding are being offset by the following reductions in annual spending requirements: $219.1 million for the Strategic Airlift Capability Project which is providing a new capability and C17 aircraft for the Canadian Forces, $184.7 million as a result of the end of a three year temporary funding injection into several areas of the Defence Service Program; $219.3 million of reductions for miscellaneous Departmental requirements.

The benefits referenced in the Supplementary Retirement Benefits Act and the Defence Services Pension Continuation Act relate to pensioners who predate the introduction of the existing pension plan. With time, the number of recipients of these benefits is decreasing.

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