Reserve Pension- Merged

[Nfld Sapper]

Ok, cool. Thx for the info

:cheers:

 

[Long in the tooth]

DND should have moved much more quickly on this, obviously, but they also seem to have promised much more than they will be able to deliver.

I used the pension calculator included and found it spot on (accounting for inflation) WRT my RegF contributions from my Res Svc.  Interestingly, the amount I would have to pay now, including inflation, almost exactly equals my pension benefit.  In other words I would have been just as far ahead with a defined contribution plan as the defined benefit plan.

 

[Rifleman62]

Thanks DAP

I figured out my buyback - 1/3 of a million. I guess I will sell my house.
As DAP stated, the formula is an average. I have my income tax from 1978, and some of the years earnings in the formula spreadsheet are understated. It will take 7.6 years to break even- equals 0% interest on investment of 1/3 of a million. It will actually take longer ( even counting the annual cost of living adjustments) as in 5 years for me, the pension is reduced for the CPP clawback.
There will be a provision to buy back a percentage of the total, with a corresponding decrease in pension received.
They are sticking it to us with the wage index, 7% compound interest, and the delay.

 

[dapaterson]

I'll try to update formulas etc as more information becomes available.  I agree that the double whammy of adjusting wages upwards via the Wage Index, coupled with 7% compund interest makes this a bitter pill to swallow - we're being hit twice. 

I've been in since late 1989, working full-time since early 1998; my rough estimate is that my service to date will cost me on the order of $80K.

 

[Haggis]

Ref my reply no 238:

Whoever said that you don't need it if you can afford to buy back was not doing anyone any favours. And its no shot at you as you never said it first.

Based on dapaterson's calculator whizbang thing, it would seem that BGen Tabbernor was right.

 

[Rifleman62]

The delay is not only costing us in 7% compound interest, also add the increase in contribution rates starting last year, both under YMPE and over YMPE.
This is Reserve Pension buy back is a farce.
When a senior officer states that if you can afford to buy the pension back, you probably don't need it, obviously he knew some of the details. What action did he take to correct this?
DND should eat some of this buy back. It is their ineptitude that caused it ( and so my redress will state). Absolutely going to send it political. This can be amended by regulations. It is in the legislation.
Lets get some estimates from others, and what they feel about the amount they have to pay, posted.

 

[Staff Weenie]

If I remember correctly, Treasury Board in essence told DND in 1996 to extend the Pension to Reservists. I find it so hard to believe that any timeframe over say 2-3 years is the result of anything other that absolute corporate ineptitude. I would love to suggest (and may just grieve) that, in concert with the intent that no CF member be penalized for the mistakes of the system, there should be no interest applied from 1999 or 2000 onwards - as DND really should have got their act together well before that.

- Rant Begins -

I am becoming progressively more bitter with the system, and the way it handles issues such as this. If, in a major civilian org, the company screws the employees over, the Union can fight back. In DND, it's 'shut up and take it' - we really have no voice and no advocate that effectively stands up. The grievance system is too cumbersome, and the Quality of Life board seems to exist to justify why we screw people over. Placing a former CF Judge as the Ombudsman removed any semblance of impartiality that office had.

- Rant Ends -

 

[Rifleman62]

Staff Weenie,

See reply 229, which does not have the references which are at reply 214. The original letter at 214, was revised slightly at reply 229. Enjoy.

 

[geo]

SW
while I hate to contradict ya;
- there are fewer and fewer employers who offer pension plans
- there are fewer and fewer individuals represented by unions.
- more and more individuals are being screwed & the CF are no exception...
been there, done that & been screwed by the best  

 

[Staff Weenie]

You've got a point Geo......no denying that......

 

[charlesm]

Dataperson,

  Thanks for this great tool!!!

  I worked out mine last night and it would cost me $12K to buyback pensionable time to get $2000 per month. I would be better to get out now and get my RFRG at $ 30K invest the $12K in something, start working the money and rejoin then next week. My RFRG when I get out in 10-12 years maybe worth $33K as I might be able to squeeze in 1-2 actual years as opposed to calendar years. I would earn more on my RFRG in the 10-12 years then my pension would be worth.

  Nice to notice that a Cpl will have to get 35 days a year to get 10% YMPE. Can't miss too many parade nights. Pte's take over 50 Days, but that's not too bad because between BMQ/SQ/BIQ they should be able to make that, unless we decide to shorten the course again!

 

[dapaterson]

Remeber, the spreadsheet provides an esitmate only - it's not guaranteed.

But on another note:

Look at what the CFPMP website (http://www.forces.gc.ca/dgcb/cfpmp/engraph/home_e.asp?sidesection=5) says today:

THE NECESSARY APPROVALS HAVE BEEN SECURED. THE LONG AWAITED CF PENSION MODERNIZATION WILL BE IMPLEMENTED ON 1 MARCH 2007

• Improved benefits for Regular Force members;
• Inclusion of long-term full-time members of the Reserve Force in the Regular Force Plan;
• Introduction of a Reserve Force Pension Plan; and
• Amendments to the Reserve Force Retirement Gratuity that make the appropriate formula adjustments to take into account the introduction of a Reserve Force Pension Plan.

THIS SITE IS CURRENTLY BEING UPDATED TO REFLECT THE APPROVED POLICY

LOOK FOR A CANFORGEN ON PENSION MODERNIZATION AND A MAPLE LEAF INSERT 28 FEB 2007

 

[dapaterson]

For those considering requesting old pay guides etc from Archives Canada, here's my experience:

Three months ago I submitted a request.  Today I received a letter, telling me my request had been forwarded to DND.

I guess I'd better warn the OR that the request is inbound... and that they've already provided me with what they have on file... and that there's still a two year gap.


...back to hoping the RDS recovery works out OK...

 

[geo]

DAP,
If they are unable to provide pay guides and are unable to recover RDS data, I would contend that they will have to accept old T4 slips.  So long as you do / do not have exotic transactions like UN missions or cost of living differential payments, T4 reconciliation should be pert much accurate .... at least it's more information than they can come up with.... 

as they say..... Watch & shoot!

Chimo!

 

[Long in the tooth]

More Money! More Money! More Money!

 

[Rifleman62]

My standard of living, after selling my house to buy back the Reserve Pension.

 

[charlesm]

Rifleman

At least you got a decent vehicle out of it. You could always try for a used LSVW!! Or an old MLVW. Just like a weekend Ex.

 

[Stoker]

I did a bunch of reading from the previous pages and for what I can tell we can transfer without penalty RRSP's to our pension for the buyback. I'm going to buyback around 13 years of reserve pension, according to the buyback spreadsheet its going to be around $60000 or thereabouts. Would it make sense to max out my RRSP contributions limit this year at 5% loan rate, take the cash back, pay down the loan and pay off the loan as soon as I can? If I use up my RRSP contribution limit this year, will that affect anything?
Any advice would be welcome.

 

[the 48th regulator]

I also have a question.  I took the RFRG, in a lump sum direct to my banking account, no RRSP.  I understand it was taxed, but is there any provisions other than investing into RRSP where this can become tax exempt?

I was medically released, and I receive a monthly pension from VAC.

dileas

tess

 

[54/102 CEF]

Ref my reply no 238:

Based on dapaterson's calculator whizbang thing, it would seem that BGen Tabbernor was right.

Gen DC Tabbernor should be waving the flag for this. Take an Aerosmith Break http://video.google.ca/videoplay?docid=9142046234356623565 and tell me you don't feel better already.