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True enough. What I should have said is 4% interest plus an insurance premium (in case you die before the full amount is paid off) of 0.3-0.8% depending on your age and how long a term you are buying back over for a total cost of 4.3-4.8%.

Insert Quote Stoker, A few things to think about: 1. RRSP Transfer: You may have to transfer part of your RRSP. RSP contributions rules changed in  1991 and the Pension Adjustment (PA) came into effect for those earning pension credits. This reduces how much you can contrribute to an RRSP in a...

For anyone interested I received my buyback cost last week a little more than 2 1/2 years after submitting my election. Total bill was ~ $177,000. This was several grand less than I expected however the email said nothing about what I was getting for my $177K but did ask me to specify how I...

For those awaiting verification from pension services they have posted timelines for processing applications on their website at http://www.admfincs.forces.gc.ca/dcf-dsp/rfp-rpf/pspt-etrp-eng.asp. It should be noted that the timelines only apply from the date your release message is...

Clause 7(2) of the CFSA reads as follows 'Definition of “interest” (2) In this section, unless otherwise specified, "interest" means simple interest at four per cent per annum from the middle of the fiscal year in which the contributions would have been made, had the contributor been required...

I doubt this is just to change the contribution rate in the calculator. That would be a relatively small change and should not take a month or more as suggested by the mid/late Jan return of the calculator. Also the normal way to make these types of changes is to do the mod on an off-line...

Sub-section 7(2) of the CFSA reads Definition of “interest” (2) In this section, unless otherwise specified, "interest" means simple interest at four per cent per annum from the middle of the fiscal year in which the contributions would have been made, had the contributor been required to make...

Correction to my last. The CRA PA guide is T4084 not T8084.

Keep in mind that the Pension Adjustment (PA) is calculated based on the deemed benefit you are expected to receive in retirement not the contribution. Assuming you are under Part I.1 the benefit earned is 1.5% of earnings not the 4.3% contribution rate. For a defined benefit plan such as the...

I'm not sure what you mean about the interest rate being "resolved" but anyone reading should avoid procrastinating on their election in the hopes it will be reduced. Not only is the interest cost (whether at 4% or 7%) continuing to add up every day but on 1 Jan 08 the wage factor used in...