Problem Statement
Having no standardized method to determine an appropriate PSP PlanPricing Structure has led to locations not adhering to the CDS Delegation ofAuthorities for Financial Administration of Non-Public Property.
This has caused a high discrepancy in Members perception of value in thePSP Plan, as discount levels and inclusions vary greatly. This discrepancy hasbeen identified as a critical opportunity that can contribute to Base/Wingfund and CFCF financial sustainability which in turn will allow for greatersupport for the CAF communities in which we operate.
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PSP Pricing Strategy Framework
Compliance: Aligning Pricing Structures with the CDS Delegation of Authority for NPP Financial Administration
The strategy ensures that all PSP Plan membership pricing complies with the Chief of the Defence Staff (CDS) Delegation of Authority for the financial administration of Non‑Public Property (NPP). This includes:
- Applying fees proportional to the local market to avoid any form of unfair competition.
- Ensuring that access to services does not reduce the level of service offered to CAF members and their families.
- Implementing uniform discount structures across all bases to meet national policy requirements.
Standardization: Providing Predictable and Fair Pricing for CAF Members and Their Families
The implementation of a national pricing framework allows for:
- A consistent experience and comparable value for members, regardless of their location in Canada.
- Pricing based on clearly defined categories (Regulars, Ordinary, Associate) and standardized multipliers.
- Reduced confusion and increased transparency when members compare pricing between bases.
Flexibility: Maintaining Room for Local Commander Decision‑Making Within Defined Parameters
While the strategy introduces national standards, it also:
- Allows base/wing commanders to make local adjustments using approved tools (e.g., mitigation factors, custom rates).
- Supports the unique needs of local communities, such as partnerships, recruitment incentives, or local subsidies.
- Ensures commanders retain operational control while adhering to strategic guidelines.
Sustainability: Supporting the Financial Health of Base/Wing Funds and the CFCF
The pricing strategy aims to:
- Increase revenues through optimized pricing structures and membership incentives.
- Reduce financial disparities caused by inconsistent pricing practices.
- Strengthen the financial stability of Base/Wing Funds and the Canadian Forces Central Fund (CFCF), enabling reinvestment into programs and services that benefit the CAF community.
Factors Considered in Determining Pricing
This section outlines the main variables influencing membership fee calculations while allowing local customization within a standardized framework.
• Competitive Pricing
Reference: Use the local municipal monthly rate as the primary comparison point.
Adjustment: Apply a ±10% variation to account for differences in amenities, demand, and service quality.
• Formula‑Based Pricing
Starting point: Use the current Associate monthly rate as the internal reference.
Adjustment: Apply multipliers related to amenities and demand to reflect local conditions and services offered.
• Cost‑of‑Living Adjustments
Annual review: Apply a percentage increase each fiscal year to account for inflation and rising operating costs.
Objective: Ensure sustainable pricing aligned with economic conditions.
• Amenities and Demand
Competition-based: Adjust rates by ±10% depending on the quality and availability of amenities compared to local competitors.
Formula-based: Use a multiplicative factor to reflect perceived value and on-base demand.
• Mitigation Factors
These are location‑specific variables that may justify further pricing adjustments:
- Local subsidies: external funding that reduces operating costs
- Partnership agreements: special arrangements with municipalities or organizations
- Recruitment incentives: reduced rates to attract new CAF members or support their families
- Base Fund internal subsidies: financial support enabling reduced rates
• Custom Pricing
Flexibility: Up to six custom rates may be defined (three individual, three family).
Possible uses:
- Discounts based on membership duration
- Corporate partnerships
- Single‑parent families
- Seniors
- Other special groups
Approval: All custom rates must be documented and approved through the standard process.
National Pricing Structure Standards
This section outlines the national framework used to structure PSP Plan membership rates, ensuring consistency while allowing some local adaptability.
• Associate Rate
Reference: The Associate rate serves as the starting point for all other categories.
It is aligned with the local comparable municipal rate, with an allowable variation of ±10%, ensuring fairness and avoiding unfair competition with civilian providers.
Objective: This rate reflects the market value of the services offered and serves as the basis for calculating discounts for other member categories.
• Methodology
Competition‑based pricing:
- Uses external municipal rates as comparison points.
- Ideal for locations with accessible competition.
Formula‑based pricing:
- Uses the Associate rate as the internal reference.
- Suitable for locations with limited or no local competition.
• Discount Structure
Ordinary Members:
- Receive a 25% discount on the Associate rate.
- This category includes the extended military community, such as DND employees and NPP staff.
Regular Members:
- Receive a 75% discount on the Associate rate for non‑active use of fitness facilities.
- Ensures financial accessibility for active CAF members, veterans, and their families while respecting CDS directives.
• Membership Duration Multipliers
| Duration |
Multiplier |
| 1 year |
0.8 |
| 6 months |
0.9 |
| 3 months |
0.95 |
| 1 month |
1.0 |
| Recurring monthly |
0.8 |
These multipliers encourage long‑term commitments and reflect standard industry pricing practices.
• Family Membership Multipliers
| Category |
Multiplier |
| Associate |
2.0 |
| Ordinary |
2.0 |
| Regular |
1.75 |
These values ensure fair and consistent family membership pricing across all bases.