A new experience-based pay rate for military pilots — intended to keep them in uniform rather than flying for commercial airlines — was poorly thought out, badly implemented and has resulted in some officers refusing promotions because it would set them back financially, says an internal Defence Department report obtained by CBC News.

The changes were conceived five years ago by air force brass and came into effect in the spring of 2021. They were made in response to a 2018 report by the auditor general that identified critical shortages of trained pilots and technicians that were preventing the Royal Canadian Air Force from meeting NORAD and NATO operational commitments.

The new pay system, which mimics the graduated civilian system of increasing pay for each year of flying experience,

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