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At this time severance or RFRG maxes out after 30 years. As IPS has now been offered to most RegF members, will this now be increased?
Reserve Pension- Merged
- Thread starter Spr.Earl
- Start date
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Information from the National Post today as an example of the possibilities..
RRSP Can Be Used For Pension Plan Buyback
David Phipps
Financial Post
July 2, 2005
Question I am a retired federal public servant and I am buying back some 11 years of past service.
I have about $85,000 in a self-directed RRSP administered by a brokerage firm. I just turned 64.
What I would like to find out is whether I can use funds in my RRSP to cover the buyback, either on a monthly basis or in a lump sum, and also whether I could start doing this now or when I have to start drawing down on the RRSP?
Answer Pension plans can be divided into two basic groups: defined contribution plans and defined benefit plans. Defined contribution plans are the simplest. They define the amount you and your employer can deposit into the plan. Just like an RRSP, the ultimate retirement income that you can expect from a defined contribution plan is not defined. It is completely dependent on the rate of return on the money invested.
Federal government employees belong to a defined benefit pension plan. With this type of pension plan, the employer guarantees the amount of retirement income based on a formula such as years of service times 2% of the average wage over the last five years of employment. Using this formula, an employee with 35 years of service would be entitled to a pension of 70% of their average salary over the last five years.
A member of a defined benefit pension plan who has fewer years of service will receive a smaller pension. To assist employees who find themselves with reduced pensions because they don't have enough years of service, pension plans may allow the employee to "buy back" years of service by putting money into the pension. The money can come in the form of lump-sum or instalment contributions from the employee's non-registered savings, or by a direct transfer from another registered plan, such as an RRSP.
You should check with your pension plan administrator to make sure that the option to transfer from an RRSP to your pension plan is still available. In certain situations, there is a limited time period during which you can elect to transfer money from your RRSP after which you are limited to making non-registered contributions. When buying back pensionable service using a transfer from your RRSP, this would be done as a lump-sum direct transfer rather than by instalments. Assuming you are allowed to transfer money from your RRSP to your pension plan, you do not have to wait until the RRSP is converted into a RRIF.
When making the decision to buy back years of service, a number of pros and cons should be considered. On the pro side, a defined benefit pension plan with an employer like the federal government provides great financial security. It is guaranteed to pay an income each year until you pass away. There is no chance of outliving your money, and you are not responsible for making investment decisions regarding the capital that is funding the pension. Also, money in your registered pension plan is probably creditor-proof while savings in your RRSP or non-registered portfolio might be attached by a creditor in the event of financial difficulty. Finally, some pension plans have ancillary health benefits that may only be available to members with more than a certain number of years of service. Buying back service to qualify for these benefits may be an excellent investment.
There are also some factors that favour not buying pack pensionable service.
Once the money is put into the pension plan, there may be limited benefits to your surviving spouse and estate. While money in an RRSP rolls over tax-free to a surviving spouse and pays out on an after-tax basis to other beneficiaries, many defined benefit pension plans cut the income to a surviving spouse in half and give nothing to the estate once the surviving spouse is gone.
Before buying back pensionable service, you should always have a competent advisor calculate what rate of return you would need to achieve on an alternative investment to match the increased benefits you are receiving from the pension. On the off-chance that an alternative investment would only need to provide a very modest return to beat the pension, then buying back pensionable service might not be the right choice.
To get information on the Public Service Superannuation Plan call toll-free at 800-561-7930 or visit the Web site at www.pwgsc.gc.ca. Or, you can provide your financial advisor with written authorization to speak with your pension plan administrator directly.
© National Post 2005
RRSP Can Be Used For Pension Plan Buyback
David Phipps
Financial Post
July 2, 2005
Question I am a retired federal public servant and I am buying back some 11 years of past service.
I have about $85,000 in a self-directed RRSP administered by a brokerage firm. I just turned 64.
What I would like to find out is whether I can use funds in my RRSP to cover the buyback, either on a monthly basis or in a lump sum, and also whether I could start doing this now or when I have to start drawing down on the RRSP?
Answer Pension plans can be divided into two basic groups: defined contribution plans and defined benefit plans. Defined contribution plans are the simplest. They define the amount you and your employer can deposit into the plan. Just like an RRSP, the ultimate retirement income that you can expect from a defined contribution plan is not defined. It is completely dependent on the rate of return on the money invested.
Federal government employees belong to a defined benefit pension plan. With this type of pension plan, the employer guarantees the amount of retirement income based on a formula such as years of service times 2% of the average wage over the last five years of employment. Using this formula, an employee with 35 years of service would be entitled to a pension of 70% of their average salary over the last five years.
A member of a defined benefit pension plan who has fewer years of service will receive a smaller pension. To assist employees who find themselves with reduced pensions because they don't have enough years of service, pension plans may allow the employee to "buy back" years of service by putting money into the pension. The money can come in the form of lump-sum or instalment contributions from the employee's non-registered savings, or by a direct transfer from another registered plan, such as an RRSP.
You should check with your pension plan administrator to make sure that the option to transfer from an RRSP to your pension plan is still available. In certain situations, there is a limited time period during which you can elect to transfer money from your RRSP after which you are limited to making non-registered contributions. When buying back pensionable service using a transfer from your RRSP, this would be done as a lump-sum direct transfer rather than by instalments. Assuming you are allowed to transfer money from your RRSP to your pension plan, you do not have to wait until the RRSP is converted into a RRIF.
When making the decision to buy back years of service, a number of pros and cons should be considered. On the pro side, a defined benefit pension plan with an employer like the federal government provides great financial security. It is guaranteed to pay an income each year until you pass away. There is no chance of outliving your money, and you are not responsible for making investment decisions regarding the capital that is funding the pension. Also, money in your registered pension plan is probably creditor-proof while savings in your RRSP or non-registered portfolio might be attached by a creditor in the event of financial difficulty. Finally, some pension plans have ancillary health benefits that may only be available to members with more than a certain number of years of service. Buying back service to qualify for these benefits may be an excellent investment.
There are also some factors that favour not buying pack pensionable service.
Once the money is put into the pension plan, there may be limited benefits to your surviving spouse and estate. While money in an RRSP rolls over tax-free to a surviving spouse and pays out on an after-tax basis to other beneficiaries, many defined benefit pension plans cut the income to a surviving spouse in half and give nothing to the estate once the surviving spouse is gone.
Before buying back pensionable service, you should always have a competent advisor calculate what rate of return you would need to achieve on an alternative investment to match the increased benefits you are receiving from the pension. On the off-chance that an alternative investment would only need to provide a very modest return to beat the pension, then buying back pensionable service might not be the right choice.
To get information on the Public Service Superannuation Plan call toll-free at 800-561-7930 or visit the Web site at www.pwgsc.gc.ca. Or, you can provide your financial advisor with written authorization to speak with your pension plan administrator directly.
© National Post 2005
- Reaction score
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I think I am first to post this
Summary
TREASURY BOARD MINISTERS HAVE
> APPROVED IN PRINCIPLE BOTH THE KEY ELEMENTS OF THE RESERVE FORCE
> PENSION PLAN THAT WILL BE EMBODIED IN REGULATIONS UNDER THE CANADIAN
> FORCES SUPERANNUATION ACT AS WELL AS A PROPOSAL RELATING TO THE
> RESERVE FORCE RETIREMENT GRATUITY.
THE APPROVAL IN PRINCIPLE OF THE PENSION PLAN IS
> AN ACHIEVEMENT FOR RESERVE FORCE MEMBERS AND PARLIAMENTARY
> COMMITTEES THAT HAVE FOR MANY YEARS RECOMMENDED THAT PENSION
> COVERAGE BE AVAILABLE TO THIS COMPONENT. IT ALSO REPRESENTS ANOTHER
> SIGNIFICANT STEP IN FACILITATING THE TRANSFORMATION OF THE CANADIAN
> FORCES AND THE GOVERNMENT S COMMITMENT TO THE QUALITY OF LIFE OF
> CANADIAN FORCES PERSONNEL
> APPROVAL IN PRINCIPLE OF THE KEY ELEMENTS OF THE RESERVE PLAN MEANS THAT FINALIZATION OF THE DETAILED REGULATIONS CAN
> PROCEED, THE CHANGES TO AUTOMATED SYSTEMS AND PROCESSES CAN MOVE
> TOWARD COMPLETION, AND RESERVE FORCE MEMBERS CAN BE ADVISED WITH A
> HIGHER DEGREE OF CERTAINTY OF THE PLAN S PROVISIONS, SO THAT THEY
> CAN DETERMINE ITS IMPACT ON THEIR OWN CIRCUMSTANCES.
IT IS EXPECTED
> THAT THE MINISTER OF NATIONAL DEFENCE WILL BE ASKING THE TREASURY
> BOARD LATER THIS YEAR TO APPROVE REGULATIONS THAT WILL UPDATE THE
> PENSION ARRANGEMENTS FOR THE REGULAR FORCE AND ESTABLISH THE RESERVE
> FORCE PENSION PLAN. IMPLEMENTATION OF THE NEW PENSION ARRANGEMENTS
> IS PLANNED FOR 1 JAN 06 TO COINCIDE WITH THE BEGINNING OF THE
> TAXATION YEAR AND THE CONTRIBUTION YEAR UNDER THE CANADA PENSION
> PLAN
OF PARTICULAR INTEREST TO RESERVE FORCE MEMBERS IS THE APPROVAL
> OF PROPOSALS RELATING TO THE BUY BACK OF PAST SERVICE AND THE
> RESERVE FORCE RETIREMENT GRATUITY
More info coming in the fall per the 17 June briefings notes above
> Subject: FW: 071600Z JUL 05 - 121/05 - RESERVE FORCE PENSION
> PLAN/REGIME DE RETRAITE DE LA FORCE DE RESERVE
>
> 01 01 071600Z JUL 05 RR RR UUUU
> CDS 060/05
>
> NDHQ OTTAWA//CDS//
> CANFORGEN 121/05
> UNCLAS CDS 060/05
> SIC WAS
> BILINGUAL MESSAGE / MESSAGE BILINGUE
> SUBJECT: RESERVE FORCE PENSION PLAN
> 1. I AM PLEASED TO ANNOUNCE THAT TREASURY BOARD MINISTERS HAVE
> APPROVED IN PRINCIPLE BOTH THE KEY ELEMENTS OF THE RESERVE FORCE
> PENSION PLAN THAT WILL BE EMBODIED IN REGULATIONS UNDER THE CANADIAN
> FORCES SUPERANNUATION ACT AS WELL AS A PROPOSAL RELATING TO THE
> RESERVE FORCE RETIREMENT GRATUITY. THIS IS A MAJOR MILESTONE IN THE
> ONGOING EFFORT TO ENSURE THAT COMPENSATION FOR THE RESERVE FORCE IS
> APPROPRIATELY COMPARABLE TO THAT OF MEMBERS OF THE REGULAR FORCE
> 2. THE RESERVE FORCE IS AN ESSENTIAL PART OF OUR OVERALL NATIONAL
> MILITARY POSTURE. ITS MEMBERS ARE CRITICAL TO THE CANADIAN FORCES
> ABILITY TO MEET ITS DEFENCE AND SECURITY CHALLENGES AT HOME AND
> ABROAD. AS SUCH, THE APPROVAL IN PRINCIPLE OF THE PENSION PLAN IS
> AN ACHIEVEMENT FOR RESERVE FORCE MEMBERS AND PARLIAMENTARY
> COMMITTEES THAT HAVE FOR MANY YEARS RECOMMENDED THAT PENSION
> COVERAGE BE AVAILABLE TO THIS COMPONENT. IT ALSO REPRESENTS ANOTHER
> SIGNIFICANT STEP IN FACILITATING THE TRANSFORMATION OF THE CANADIAN
> FORCES AND THE GOVERNMENT S COMMITMENT TO THE QUALITY OF LIFE OF
> CANADIAN FORCES PERSONNEL
> 3. IN 1999, FEDERAL PUBLIC SECTOR PENSION REFORM LEGISLATION
> PROVIDED THE AUTHORITIES NECESSARY TO SET UP FORMAL PENSION
> ARRANGEMENTS FOR THE RESERVE FORCE. IN 2003, AN ACT TO AMEND THE
> CANADIAN FORCES SUPERANNATION ACT WAS PASSED THAT WOULD MODERNIZE
> EXISTING CANADIAN FORCES PENSION ARRANGEMENTS AND ALSO PROVIDE
> PENSION COVERAGE FOR THOSE RESERVE FORCE MEMBERS WHO SERVE ON A
> FULL-TIME BASIS FOR EXTENDED PERIODS OF TIME UNDER THE SAME PENSION
> ARRANGEMENTS AS MEMBERS OF THE REGULAR FORCE. A SOLID FOUNDATION WAS
> ALSO PROVIDED FOR THE INTRODUCTION OF REGULATIONS GOVERNING FUTURE
> PENSION ARRANGEMENTS FOR THE MAJORITY OF RESERVE FORCE MEMBERS WHO
> SERVE FOR SHORT PERIODS OR ON AN AS-NEEDED BASIS
> 4. SINCE 2003, ATTENTION HAS BEEN DIRECTED TO THE DEVELOPMENT AND
> IMPLEMENTATION OF NEW PENSION ARRANGEMENTS INCLUDING DETAILED POLICY
> DEVELOPMENT, DRAFTING OF POLICY INTO REGULATIONS, THE DESIGN AND
> UPGRADE OF SUPPORTING ADMINISTRATIVE SYSTEMS AND PROCESSES AND
> CONSULTATION AND COMMUNICATION WITH CANADIAN FORCES MEMBERS.
> TREASURY BOARD APPROVAL IN PRINCIPLE OF THE KEY ELEMENTS OF THE
> RESERVE PLAN MEANS THAT FINALIZATION OF THE DETAILED REGULATIONS CAN
> PROCEED, THE CHANGES TO AUTOMATED SYSTEMS AND PROCESSES CAN MOVE
> TOWARD COMPLETION, AND RESERVE FORCE MEMBERS CAN BE ADVISED WITH A
> HIGHER DEGREE OF CERTAINTY OF THE PLAN S PROVISIONS, SO THAT THEY
> CAN DETERMINE ITS IMPACT ON THEIR OWN CIRCUMSTANCES. IT IS EXPECTED
> THAT THE MINISTER OF NATIONAL DEFENCE WILL BE ASKING THE TREASURY
> BOARD LATER THIS YEAR TO APPROVE REGULATIONS THAT WILL UPDATE THE
> PENSION ARRANGEMENTS FOR THE REGULAR FORCE AND ESTABLISH THE RESERVE
> FORCE PENSION PLAN. IMPLEMENTATION OF THE NEW PENSION ARRANGEMENTS
> IS PLANNED FOR 1 JAN 06 TO COINCIDE WITH THE BEGINNING OF THE
> TAXATION YEAR AND THE CONTRIBUTION YEAR UNDER THE CANADA PENSION
> PLAN
> 5. THE MAIN ELEMENTS OF THE RESERVE FORCE PENSION PLAN THAT
> RECEIVED APPROVAL IN PRINCIPLE ARE SIMILAR AND IN MANY CASES
> IDENTICAL TO THOSE PROVIDED UNDER OTHER FEDERAL PUBLIC SECTOR PLANS
> SUCH AS THE PUBLIC SERVICE SUPERANNUATION ACT, THE ROYAL CANADIAN
> MOUNTED POLICE SUPERANNUATION ACT AND IN PARTICULAR PART I OF THE
> CANADIAN FORCES SUPERANNUATION ACT (THE PENSION PLAN FOR MEMBERS OF
> THE REGULAR FORCE)
> 6. OF PARTICULAR INTEREST TO RESERVE FORCE MEMBERS IS THE APPROVAL
> OF PROPOSALS RELATING TO THE BUY BACK OF PAST SERVICE AND THE
> RESERVE FORCE RETIREMENT GRATUITY
> 7. COUNTING OF PAST SERVICE - MEMBERS WILL HAVE THE OPPORTUNITY TO
> ELECT TO PAY THE AMOUNT REQUIRED TO COUNT ALL PAST RESERVE SERVICE
> 8. RESERVE FORCE RETIREMENT GRATUITY- IN 1997, TREASURY BOARD
> AUTHORIZED THIS SEVERANCE PAY-TYPE PROGRAM FOR MEMBERS WHO RELEASE
> FROM THE PRIMARY RESERVE AND MEET SPECIFIED CONDITIONS. THE FORMULA
> FOR CALCULATING THE LUMP SUM AMOUNTS PAYABLE UNDER THE PROGRAM
> PROVIDES RECOGNITION OF SERVICE BASED ON ELAPSED TIME RATHER THAN
> ACTUAL PERIODS OF PAID SERVICE. THIS FEATURE WAS INTENDED TO
> RECOGNIZE THE ABSENCE OF PENSION COVERAGE FOR THIS WORKFORCE
> 9. WITH THE INTRODUCTION OF THE RESERVE FORCE PENSION PLAN, THE
> RESERVE FORCE RETIREMENT GRATUITY WILL BE AMENDED SO THAT BENEFITS
> PROVIDED AFTER THE DATE THE NEW PLAN COMES INTO FORCE WILL BE
> CALCULATED ON THE BASIS OF ACTUAL TIME SERVED. HOWEVER, BENEFITS IN
> RESPECT OF SERVICE OCCURING PRIOR TO THE IMPLEMENTATION OF THE
> PENSION PLAN WILL CONTINUE TO BE CALCULATED ON AN QUOTE ELAPSED TIME
> UNQUOTE BASIS
> 10. OTHER PENSION PLAN ELEMENTS APPROVED BY THE TREASURY BOARD ARE
> AS FOLLOWS. THE PLAN WILL BE OF THE DEFINED BENEFIT TYPE AND WILL
> FOLLOW THE EXISTING SUPERANNUATION ACTS ON THE FOLLOWING MATTERS:
> THE FUNDAMENTAL FUNDING ARRANGEMENTS, INVESTMENT OF PLAN ASSETS
> THROUGH THE PUBLIC SECTOR PENSION INVESTMENT BOARD, VESTING AND
> LOCK-IN RULES, THE RANGE OF BENEFITS AVAILABLE, BENEFIT ELIGIBILITY
> THRESHOLDS, AN EARLY RETIREMENT OPTION, A SUPPLEMENTAL MONTHLY
> BENEFIT TO BRIDGE TOTAL PENSION INCOME FROM RETIREMENT TO CANADA
> PENSION PLAN ELIGIBILITY, CATEGORIES OF POTENTIAL BENEFICIARIES,
> POST-RETIREMENT INDEXING, AND REPORTING REQUIREMENTS (E.G., ANNUAL
> REPORTS ON THE ADMINISTRATION OF THE PLAN AND TRIENNIAL ACTUARIAL
> REPORTS)
> 11. A DIFFERENT APPROACH IS BEING TAKEN WITH RESPECT TO THE
> FOLLOWING FEATURES TO ENSURE THAT THE PLAN APPROPRIATELY
> ACCOMMODATES THE DISPARITY IN THE WORK PATTERNS OF THE MAJORITY OF
> THE RESERVE FORCE, GENERALLY CHARACTERIZED BY SHORT SERVICE CAREERS,
> IRREGULAR AND WIDELY VARYING PATTERNS OF SERVICE AND EARNINGS WHICH
> ARE OFTEN BELOW THE MAXIMUM PENSIONABLE EARNINGS SET UNDER THE
> CANADA PENSION PLAN
> 12. PLAN MEMBERSHIP - MEMBERS OF THE RESERVE FORCE WILL BECOME
> PARTICIPANTS UNDER THE PLAN ONCE THEY HAVE SERVED FOR TWO CONTINUOUS
> PERIODS OF TWELVE MONTHS AND HAVE IN EACH OF THOSE PERIODS EARNINGS
> OF AT LEAST 10 (PERCENT) OF THE APPLICABLE YEAR S MAXIMUM
> PENSIONABLE EARNINGS UNDER THE CANADA PENSION PLAN. THESE THRESHOLDS
> ARE A MEANS OF TAKING INTO ACCOUNT THE VERY HIGH TURNOVER RATES IN
> THE FIRST TWO YEARS OF ENROLMENT. A MEMBER WHO IS SERVING IN THE
> RESERVE FORCE ON THE DATE THE PLAN COMES INTO FORCE WILL BE ABLE TO
> COUNT THE SERVICE OCCURRING ON OR AFTER APRIL 1 1999 TO MEET THE
> MEMBERSHIP THRESHOLDS
> 13. A PERSON ENROLLED IN ANY COMPONENT OF THE RESERVE FORCE
> (PRIMARY RESERVE, SUPPLEMENTARY RESERVE, CADET INSTRUCTOR CADRE,
> CANADIAN RANGERS) WILL BE ELIGIBLE TO BECOME A PARTICIPANT UNDER THE
> PLAN PROVIDED EARNINGS AND SERVICE THRESHOLDS ARE MET
> 14. MEMBER CONTRIBUTION RATES - PARTICIPANTS UNDER THE PLAN WILL BE
> REQUIRED TO CONTRIBUTE AT THE FOLLOWING RATES: 4.3 (PERCENT) OF
> EARNINGS IN 2006, 4.6 (PERCENT) IN 2007, 4.9 (PERCENT) IN 2008, AND
> 5.2 (PERCENT) IN 2009 AND THEREAFTER. IF WARRANTED ON THE BASIS OF
> A FUTURE ACTUARIAL REPORT, THE REGULATORY PROVISIONS ON RATES WOULD
> BE AMENDED. IT IS ALSO INTENDED THAT CONTRIBUTION RATES UNDER THE
> PLAN WILL NOT EXCEED THOSE RATES PAYABLE BY CONTRIBUTORS UNDER PART
> I OF THE CANADIAN FORCES SUPERANNUATION ACT
> 15. VESTING, LOCK-IN - VESTING REFERS TO THE PERIOD OF TIME
> REQUIRED TO BECOME ENTITLED TO A CONTINUING PENSION BENEFIT. A
> MEMBER WHO HAS BEEN A PARTICIPANT UNDER THE PLAN FOR TWO YEARS WILL
> BE VESTED AND WILL BE GUARANTEED A PENSION BENEFIT OR THE TRANSFER
> VALUE OF THE EARNED PENSION BENEFIT. VESTED MEMBERS WILL NOT BE
> PERMITTED TO TAKE A LUMP SUM REFUND OF THEIR CONTRIBUTIONS
> 16. BENEFITS FOR VESTED MEMBERS - A VESTED MEMBER WHO CEASES TO BE
> A PARTICIPANT UNDER THE PLAN WILL BE ENTITLED TO AN IMMEDIATE
> UNREDUCED ANNUITY IF THE MEMBER:
> A. HAS REACHED AGE SIXTY,
> B. HAS REACHED AGE FIFTY-FIVE YEARS AND HAS THIRTY YEARS OF
> PENSIONABLE SERVICE,
> C. HAS COMPLETED TWENTY-FIVE YEARS OF PAID CANADIAN FORCES SERVICE,
> D. IS DISABLED (WITH TEN YEARS OF PENSIONABLE SERVICE), OR
> E. WAS RELEASED ON ACCOUNT OF A REDUCTION IN THE SIZE OF THE RESERVE
> FORCE
> 17. A VESTED MEMBER WHO CEASES TO BE A PARTICIPANT AND IS NOT IN
> ONE OF THE FOREGOING CATEGORIES WILL BE ENTITLED TO A DEFERRED
> ANNUITY, WHICH WILL BEGIN TO BE PAID AT AGE SIXTY. THE MEMBER WILL
> BE ABLE TO TAKE A REDUCED ANNUITY BETWEEN AGE FIFTY AND SIXTY, OR IF
> UNDER FIFTY, OPT TO TAKE A TRANSFER VALUE IN LIEU OF THE DEFERRED
> ANNUITY
> 18. IF NOT VESTED - A MEMBER WHO CEASES TO BE A PARTICIPANT BEFORE
> BELONGING TO THE PLAN FOR TWO YEARS WILL BE ENTITLED TO A REFUND OF
> THEIR CONTRIBUTIONS TO THE PENSION FUND PLUS INTEREST
> 19. THIRTY-FIVE YEAR CAP - LIKE OTHER FEDERAL PUBLIC SECTOR PENSION
> PLANS, THE RESERVE FORCE PENSION PLAN WILL INCLUDE A THIRTY-FIVE
> YEAR CAP ON THE NUMBER OF YEARS OF PENSIONABLE SERVICE A MEMBER CAN
> ACQUIRE; HOWEVER, CREDITS UNDER OTHER FEDERAL PLANS WILL NOT BE
> COUNTED FOR THIS PURPOSE NOR WILL CREDITS UNDER THE RESERVE PLAN
> COUNT TOWARDS THE THIRTY-FIVE YEAR LIMIT IN THE OTHER FEDERAL PLANS
> 20. TERMINATION OF PLAN MEMBERSHIP - ACTIVE PLAN MEMBERSHIP WILL
> TERMINATE IF THE PERSON CEASES TO BE A MEMBER OF THE RESERVE FORCE
> OR IF THE MEMBER HAS NOT RENDERED PAID SERVICE FOR TWELVE CONTINUOUS
> MONTHS. THIS SECOND RULE WILL ALLOW PENSION BENEFITS TO CRYSTALLIZE
> AT A REASONABLE POINT IN TIME WITHOUT REQUIRING THE MEMBER TO TAKE A
> FULL RELEASE FROM THE RESERVE FORCE
> 21. COUNTING OF SERVICE WITHOUT PAY - ONLY UNPAID ABSENCES FOR
> MATERNITY OR PARENTAL REASONS WILL BE RECOGNIZABLE UNDER THE PLAN
> 22. BENEFIT CALCULATION - GIVEN THE INTERMITTENT AND WIDELY VARIED
> NATURE OF RESERVE FORCE SERVICE, THE BENEFIT FORMULA WILL BE BASED
> ON A MEMBER S UPDATED CAREER AVERAGE EARNINGS, THE BASIC ANNUAL
> BENEFIT WILL BE 1.5 (PERCENT) OF THESE EARNINGS. THE UPDATING
> FEATURE ALLOWS FOR ANNUAL EARNINGS TO BE ADJUSTED IN ACCORDANCE WITH
> A WAGE INDEX REFLECTING THE MOVEMENT OF MILITARY PAY. IN ADDITION,
> LIKE THE OTHER MAJOR SUPERANNUATION PLANS, THE PLAN FOR THE RESERVE
> FORCE WILL TAKE INTO ACCOUNT ENTITLEMENTS UNDER THE CANADA PENSION
> PLAN. THAT IS, IN ORDER TO PROVIDE A RELATIVELY SMOOTH AND
> PREDICTABLE LEVEL OF INCOME THROUGHOUT RETIREMENT, THERE WILL BE A
> SUPPLEMENTAL BENEFIT OF 0.5 (PERCENT) OF UPDATED CAREER AVERAGE
> EARNINGS PAYABLE FROM RETIREMENT UNTIL AGE SIXTY-FIVE. AT THIS POINT
> THE SUPPLEMENTAL BENEFIT WILL CEASE
> 23. INDEXING - BENEFITS WILL BE INDEXED ANNUALLY WITH THE SAME
> ELIGIBILITY CONDITIONS AND THE SAME CALCULATION AS THE INDEXING OF
> BENEFITS PAYABLE UNDER PART I OF THE CANADIAN FORCES SUPERANNUATION
> ACT, NAMELY, AT AGE 60, AT AGE 55 WITH 30 YEARS OF PENSIONABLE
> SERVICE, OR IF DISABLED
> 24. FORMULA FOR DETERMINING SURVIVOR BENEFITS - THE FORMULA UNDER
> THE PLAN FOR THE MONTHLY PENSION BENEFITS PAYABLE TO QUALIFIED
> SURVIVORS AND DEPENDENT CHILDREN WOULD BE WRITTEN TO PRODUCE THE
> MAXIMUM BENEFIT PERMISSIBLE UNDER THE INCOME TAX ACT RULES FOR
> REGISTERED PENSION PLANS. IN MOST CASES THIS WOULD RESULT IN THESE
> BENEFICIARIES HAVING MUCH THE SAME BENEFIT COVERAGE AS THEY WOULD
> HAVE UNDER PART I OF THE CANADIAN FORCES SUPERANNUATION ACT
> 25. COVERAGE OF QUOTE FULL-TIME UNQUOTE RESERVE FORCE MEMBERS -
> MEMBERS OF THE RESERVE FORCE WHO WORK ON A FULL-TIME BASIS FOR 55
> CONTINUOUS MONTHS IN A 60-MONTH PERIOD WILL BE COVERED UNDER THE
> SAME ARRANGEMENTS THAT APPLY TO THEIR REGULAR FORCE COUNTERPARTS. A
> MEMBER, ONCE UNDER THE PROVISIONS OF PART I, WILL REMAIN A
> CONTRIBUTOR UNDER THAT PART. WHERE, AFTER BECOMING A CONTRIBUTOR
> UNDER PART I, THE MEMBER OF THE RESERVE FORCE HAS A PERIOD OF
> PART-TIME SERVICE, THE BENEFITS RELATING TO THAT SERVICE WILL BE
> PRO-RATED
> 26. MEMBERS SHOULD CONSULT THE CFPMP WEBSITE ON AN ON-GOING BASIS
> FOR ADDITIONAL INFORMATION WHICH WILL BE MADE AVAILABLE
> END OF ENGLISH TEXT / LE TEXT FRANCAIS SUIT
>
Summary
TREASURY BOARD MINISTERS HAVE
> APPROVED IN PRINCIPLE BOTH THE KEY ELEMENTS OF THE RESERVE FORCE
> PENSION PLAN THAT WILL BE EMBODIED IN REGULATIONS UNDER THE CANADIAN
> FORCES SUPERANNUATION ACT AS WELL AS A PROPOSAL RELATING TO THE
> RESERVE FORCE RETIREMENT GRATUITY.
THE APPROVAL IN PRINCIPLE OF THE PENSION PLAN IS
> AN ACHIEVEMENT FOR RESERVE FORCE MEMBERS AND PARLIAMENTARY
> COMMITTEES THAT HAVE FOR MANY YEARS RECOMMENDED THAT PENSION
> COVERAGE BE AVAILABLE TO THIS COMPONENT. IT ALSO REPRESENTS ANOTHER
> SIGNIFICANT STEP IN FACILITATING THE TRANSFORMATION OF THE CANADIAN
> FORCES AND THE GOVERNMENT S COMMITMENT TO THE QUALITY OF LIFE OF
> CANADIAN FORCES PERSONNEL
> APPROVAL IN PRINCIPLE OF THE KEY ELEMENTS OF THE RESERVE PLAN MEANS THAT FINALIZATION OF THE DETAILED REGULATIONS CAN
> PROCEED, THE CHANGES TO AUTOMATED SYSTEMS AND PROCESSES CAN MOVE
> TOWARD COMPLETION, AND RESERVE FORCE MEMBERS CAN BE ADVISED WITH A
> HIGHER DEGREE OF CERTAINTY OF THE PLAN S PROVISIONS, SO THAT THEY
> CAN DETERMINE ITS IMPACT ON THEIR OWN CIRCUMSTANCES.
IT IS EXPECTED
> THAT THE MINISTER OF NATIONAL DEFENCE WILL BE ASKING THE TREASURY
> BOARD LATER THIS YEAR TO APPROVE REGULATIONS THAT WILL UPDATE THE
> PENSION ARRANGEMENTS FOR THE REGULAR FORCE AND ESTABLISH THE RESERVE
> FORCE PENSION PLAN. IMPLEMENTATION OF THE NEW PENSION ARRANGEMENTS
> IS PLANNED FOR 1 JAN 06 TO COINCIDE WITH THE BEGINNING OF THE
> TAXATION YEAR AND THE CONTRIBUTION YEAR UNDER THE CANADA PENSION
> PLAN
OF PARTICULAR INTEREST TO RESERVE FORCE MEMBERS IS THE APPROVAL
> OF PROPOSALS RELATING TO THE BUY BACK OF PAST SERVICE AND THE
> RESERVE FORCE RETIREMENT GRATUITY
More info coming in the fall per the 17 June briefings notes above
> Subject: FW: 071600Z JUL 05 - 121/05 - RESERVE FORCE PENSION
> PLAN/REGIME DE RETRAITE DE LA FORCE DE RESERVE
>
> 01 01 071600Z JUL 05 RR RR UUUU
> CDS 060/05
>
> NDHQ OTTAWA//CDS//
> CANFORGEN 121/05
> UNCLAS CDS 060/05
> SIC WAS
> BILINGUAL MESSAGE / MESSAGE BILINGUE
> SUBJECT: RESERVE FORCE PENSION PLAN
> 1. I AM PLEASED TO ANNOUNCE THAT TREASURY BOARD MINISTERS HAVE
> APPROVED IN PRINCIPLE BOTH THE KEY ELEMENTS OF THE RESERVE FORCE
> PENSION PLAN THAT WILL BE EMBODIED IN REGULATIONS UNDER THE CANADIAN
> FORCES SUPERANNUATION ACT AS WELL AS A PROPOSAL RELATING TO THE
> RESERVE FORCE RETIREMENT GRATUITY. THIS IS A MAJOR MILESTONE IN THE
> ONGOING EFFORT TO ENSURE THAT COMPENSATION FOR THE RESERVE FORCE IS
> APPROPRIATELY COMPARABLE TO THAT OF MEMBERS OF THE REGULAR FORCE
> 2. THE RESERVE FORCE IS AN ESSENTIAL PART OF OUR OVERALL NATIONAL
> MILITARY POSTURE. ITS MEMBERS ARE CRITICAL TO THE CANADIAN FORCES
> ABILITY TO MEET ITS DEFENCE AND SECURITY CHALLENGES AT HOME AND
> ABROAD. AS SUCH, THE APPROVAL IN PRINCIPLE OF THE PENSION PLAN IS
> AN ACHIEVEMENT FOR RESERVE FORCE MEMBERS AND PARLIAMENTARY
> COMMITTEES THAT HAVE FOR MANY YEARS RECOMMENDED THAT PENSION
> COVERAGE BE AVAILABLE TO THIS COMPONENT. IT ALSO REPRESENTS ANOTHER
> SIGNIFICANT STEP IN FACILITATING THE TRANSFORMATION OF THE CANADIAN
> FORCES AND THE GOVERNMENT S COMMITMENT TO THE QUALITY OF LIFE OF
> CANADIAN FORCES PERSONNEL
> 3. IN 1999, FEDERAL PUBLIC SECTOR PENSION REFORM LEGISLATION
> PROVIDED THE AUTHORITIES NECESSARY TO SET UP FORMAL PENSION
> ARRANGEMENTS FOR THE RESERVE FORCE. IN 2003, AN ACT TO AMEND THE
> CANADIAN FORCES SUPERANNATION ACT WAS PASSED THAT WOULD MODERNIZE
> EXISTING CANADIAN FORCES PENSION ARRANGEMENTS AND ALSO PROVIDE
> PENSION COVERAGE FOR THOSE RESERVE FORCE MEMBERS WHO SERVE ON A
> FULL-TIME BASIS FOR EXTENDED PERIODS OF TIME UNDER THE SAME PENSION
> ARRANGEMENTS AS MEMBERS OF THE REGULAR FORCE. A SOLID FOUNDATION WAS
> ALSO PROVIDED FOR THE INTRODUCTION OF REGULATIONS GOVERNING FUTURE
> PENSION ARRANGEMENTS FOR THE MAJORITY OF RESERVE FORCE MEMBERS WHO
> SERVE FOR SHORT PERIODS OR ON AN AS-NEEDED BASIS
> 4. SINCE 2003, ATTENTION HAS BEEN DIRECTED TO THE DEVELOPMENT AND
> IMPLEMENTATION OF NEW PENSION ARRANGEMENTS INCLUDING DETAILED POLICY
> DEVELOPMENT, DRAFTING OF POLICY INTO REGULATIONS, THE DESIGN AND
> UPGRADE OF SUPPORTING ADMINISTRATIVE SYSTEMS AND PROCESSES AND
> CONSULTATION AND COMMUNICATION WITH CANADIAN FORCES MEMBERS.
> TREASURY BOARD APPROVAL IN PRINCIPLE OF THE KEY ELEMENTS OF THE
> RESERVE PLAN MEANS THAT FINALIZATION OF THE DETAILED REGULATIONS CAN
> PROCEED, THE CHANGES TO AUTOMATED SYSTEMS AND PROCESSES CAN MOVE
> TOWARD COMPLETION, AND RESERVE FORCE MEMBERS CAN BE ADVISED WITH A
> HIGHER DEGREE OF CERTAINTY OF THE PLAN S PROVISIONS, SO THAT THEY
> CAN DETERMINE ITS IMPACT ON THEIR OWN CIRCUMSTANCES. IT IS EXPECTED
> THAT THE MINISTER OF NATIONAL DEFENCE WILL BE ASKING THE TREASURY
> BOARD LATER THIS YEAR TO APPROVE REGULATIONS THAT WILL UPDATE THE
> PENSION ARRANGEMENTS FOR THE REGULAR FORCE AND ESTABLISH THE RESERVE
> FORCE PENSION PLAN. IMPLEMENTATION OF THE NEW PENSION ARRANGEMENTS
> IS PLANNED FOR 1 JAN 06 TO COINCIDE WITH THE BEGINNING OF THE
> TAXATION YEAR AND THE CONTRIBUTION YEAR UNDER THE CANADA PENSION
> PLAN
> 5. THE MAIN ELEMENTS OF THE RESERVE FORCE PENSION PLAN THAT
> RECEIVED APPROVAL IN PRINCIPLE ARE SIMILAR AND IN MANY CASES
> IDENTICAL TO THOSE PROVIDED UNDER OTHER FEDERAL PUBLIC SECTOR PLANS
> SUCH AS THE PUBLIC SERVICE SUPERANNUATION ACT, THE ROYAL CANADIAN
> MOUNTED POLICE SUPERANNUATION ACT AND IN PARTICULAR PART I OF THE
> CANADIAN FORCES SUPERANNUATION ACT (THE PENSION PLAN FOR MEMBERS OF
> THE REGULAR FORCE)
> 6. OF PARTICULAR INTEREST TO RESERVE FORCE MEMBERS IS THE APPROVAL
> OF PROPOSALS RELATING TO THE BUY BACK OF PAST SERVICE AND THE
> RESERVE FORCE RETIREMENT GRATUITY
> 7. COUNTING OF PAST SERVICE - MEMBERS WILL HAVE THE OPPORTUNITY TO
> ELECT TO PAY THE AMOUNT REQUIRED TO COUNT ALL PAST RESERVE SERVICE
> 8. RESERVE FORCE RETIREMENT GRATUITY- IN 1997, TREASURY BOARD
> AUTHORIZED THIS SEVERANCE PAY-TYPE PROGRAM FOR MEMBERS WHO RELEASE
> FROM THE PRIMARY RESERVE AND MEET SPECIFIED CONDITIONS. THE FORMULA
> FOR CALCULATING THE LUMP SUM AMOUNTS PAYABLE UNDER THE PROGRAM
> PROVIDES RECOGNITION OF SERVICE BASED ON ELAPSED TIME RATHER THAN
> ACTUAL PERIODS OF PAID SERVICE. THIS FEATURE WAS INTENDED TO
> RECOGNIZE THE ABSENCE OF PENSION COVERAGE FOR THIS WORKFORCE
> 9. WITH THE INTRODUCTION OF THE RESERVE FORCE PENSION PLAN, THE
> RESERVE FORCE RETIREMENT GRATUITY WILL BE AMENDED SO THAT BENEFITS
> PROVIDED AFTER THE DATE THE NEW PLAN COMES INTO FORCE WILL BE
> CALCULATED ON THE BASIS OF ACTUAL TIME SERVED. HOWEVER, BENEFITS IN
> RESPECT OF SERVICE OCCURING PRIOR TO THE IMPLEMENTATION OF THE
> PENSION PLAN WILL CONTINUE TO BE CALCULATED ON AN QUOTE ELAPSED TIME
> UNQUOTE BASIS
> 10. OTHER PENSION PLAN ELEMENTS APPROVED BY THE TREASURY BOARD ARE
> AS FOLLOWS. THE PLAN WILL BE OF THE DEFINED BENEFIT TYPE AND WILL
> FOLLOW THE EXISTING SUPERANNUATION ACTS ON THE FOLLOWING MATTERS:
> THE FUNDAMENTAL FUNDING ARRANGEMENTS, INVESTMENT OF PLAN ASSETS
> THROUGH THE PUBLIC SECTOR PENSION INVESTMENT BOARD, VESTING AND
> LOCK-IN RULES, THE RANGE OF BENEFITS AVAILABLE, BENEFIT ELIGIBILITY
> THRESHOLDS, AN EARLY RETIREMENT OPTION, A SUPPLEMENTAL MONTHLY
> BENEFIT TO BRIDGE TOTAL PENSION INCOME FROM RETIREMENT TO CANADA
> PENSION PLAN ELIGIBILITY, CATEGORIES OF POTENTIAL BENEFICIARIES,
> POST-RETIREMENT INDEXING, AND REPORTING REQUIREMENTS (E.G., ANNUAL
> REPORTS ON THE ADMINISTRATION OF THE PLAN AND TRIENNIAL ACTUARIAL
> REPORTS)
> 11. A DIFFERENT APPROACH IS BEING TAKEN WITH RESPECT TO THE
> FOLLOWING FEATURES TO ENSURE THAT THE PLAN APPROPRIATELY
> ACCOMMODATES THE DISPARITY IN THE WORK PATTERNS OF THE MAJORITY OF
> THE RESERVE FORCE, GENERALLY CHARACTERIZED BY SHORT SERVICE CAREERS,
> IRREGULAR AND WIDELY VARYING PATTERNS OF SERVICE AND EARNINGS WHICH
> ARE OFTEN BELOW THE MAXIMUM PENSIONABLE EARNINGS SET UNDER THE
> CANADA PENSION PLAN
> 12. PLAN MEMBERSHIP - MEMBERS OF THE RESERVE FORCE WILL BECOME
> PARTICIPANTS UNDER THE PLAN ONCE THEY HAVE SERVED FOR TWO CONTINUOUS
> PERIODS OF TWELVE MONTHS AND HAVE IN EACH OF THOSE PERIODS EARNINGS
> OF AT LEAST 10 (PERCENT) OF THE APPLICABLE YEAR S MAXIMUM
> PENSIONABLE EARNINGS UNDER THE CANADA PENSION PLAN. THESE THRESHOLDS
> ARE A MEANS OF TAKING INTO ACCOUNT THE VERY HIGH TURNOVER RATES IN
> THE FIRST TWO YEARS OF ENROLMENT. A MEMBER WHO IS SERVING IN THE
> RESERVE FORCE ON THE DATE THE PLAN COMES INTO FORCE WILL BE ABLE TO
> COUNT THE SERVICE OCCURRING ON OR AFTER APRIL 1 1999 TO MEET THE
> MEMBERSHIP THRESHOLDS
> 13. A PERSON ENROLLED IN ANY COMPONENT OF THE RESERVE FORCE
> (PRIMARY RESERVE, SUPPLEMENTARY RESERVE, CADET INSTRUCTOR CADRE,
> CANADIAN RANGERS) WILL BE ELIGIBLE TO BECOME A PARTICIPANT UNDER THE
> PLAN PROVIDED EARNINGS AND SERVICE THRESHOLDS ARE MET
> 14. MEMBER CONTRIBUTION RATES - PARTICIPANTS UNDER THE PLAN WILL BE
> REQUIRED TO CONTRIBUTE AT THE FOLLOWING RATES: 4.3 (PERCENT) OF
> EARNINGS IN 2006, 4.6 (PERCENT) IN 2007, 4.9 (PERCENT) IN 2008, AND
> 5.2 (PERCENT) IN 2009 AND THEREAFTER. IF WARRANTED ON THE BASIS OF
> A FUTURE ACTUARIAL REPORT, THE REGULATORY PROVISIONS ON RATES WOULD
> BE AMENDED. IT IS ALSO INTENDED THAT CONTRIBUTION RATES UNDER THE
> PLAN WILL NOT EXCEED THOSE RATES PAYABLE BY CONTRIBUTORS UNDER PART
> I OF THE CANADIAN FORCES SUPERANNUATION ACT
> 15. VESTING, LOCK-IN - VESTING REFERS TO THE PERIOD OF TIME
> REQUIRED TO BECOME ENTITLED TO A CONTINUING PENSION BENEFIT. A
> MEMBER WHO HAS BEEN A PARTICIPANT UNDER THE PLAN FOR TWO YEARS WILL
> BE VESTED AND WILL BE GUARANTEED A PENSION BENEFIT OR THE TRANSFER
> VALUE OF THE EARNED PENSION BENEFIT. VESTED MEMBERS WILL NOT BE
> PERMITTED TO TAKE A LUMP SUM REFUND OF THEIR CONTRIBUTIONS
> 16. BENEFITS FOR VESTED MEMBERS - A VESTED MEMBER WHO CEASES TO BE
> A PARTICIPANT UNDER THE PLAN WILL BE ENTITLED TO AN IMMEDIATE
> UNREDUCED ANNUITY IF THE MEMBER:
> A. HAS REACHED AGE SIXTY,
> B. HAS REACHED AGE FIFTY-FIVE YEARS AND HAS THIRTY YEARS OF
> PENSIONABLE SERVICE,
> C. HAS COMPLETED TWENTY-FIVE YEARS OF PAID CANADIAN FORCES SERVICE,
> D. IS DISABLED (WITH TEN YEARS OF PENSIONABLE SERVICE), OR
> E. WAS RELEASED ON ACCOUNT OF A REDUCTION IN THE SIZE OF THE RESERVE
> FORCE
> 17. A VESTED MEMBER WHO CEASES TO BE A PARTICIPANT AND IS NOT IN
> ONE OF THE FOREGOING CATEGORIES WILL BE ENTITLED TO A DEFERRED
> ANNUITY, WHICH WILL BEGIN TO BE PAID AT AGE SIXTY. THE MEMBER WILL
> BE ABLE TO TAKE A REDUCED ANNUITY BETWEEN AGE FIFTY AND SIXTY, OR IF
> UNDER FIFTY, OPT TO TAKE A TRANSFER VALUE IN LIEU OF THE DEFERRED
> ANNUITY
> 18. IF NOT VESTED - A MEMBER WHO CEASES TO BE A PARTICIPANT BEFORE
> BELONGING TO THE PLAN FOR TWO YEARS WILL BE ENTITLED TO A REFUND OF
> THEIR CONTRIBUTIONS TO THE PENSION FUND PLUS INTEREST
> 19. THIRTY-FIVE YEAR CAP - LIKE OTHER FEDERAL PUBLIC SECTOR PENSION
> PLANS, THE RESERVE FORCE PENSION PLAN WILL INCLUDE A THIRTY-FIVE
> YEAR CAP ON THE NUMBER OF YEARS OF PENSIONABLE SERVICE A MEMBER CAN
> ACQUIRE; HOWEVER, CREDITS UNDER OTHER FEDERAL PLANS WILL NOT BE
> COUNTED FOR THIS PURPOSE NOR WILL CREDITS UNDER THE RESERVE PLAN
> COUNT TOWARDS THE THIRTY-FIVE YEAR LIMIT IN THE OTHER FEDERAL PLANS
> 20. TERMINATION OF PLAN MEMBERSHIP - ACTIVE PLAN MEMBERSHIP WILL
> TERMINATE IF THE PERSON CEASES TO BE A MEMBER OF THE RESERVE FORCE
> OR IF THE MEMBER HAS NOT RENDERED PAID SERVICE FOR TWELVE CONTINUOUS
> MONTHS. THIS SECOND RULE WILL ALLOW PENSION BENEFITS TO CRYSTALLIZE
> AT A REASONABLE POINT IN TIME WITHOUT REQUIRING THE MEMBER TO TAKE A
> FULL RELEASE FROM THE RESERVE FORCE
> 21. COUNTING OF SERVICE WITHOUT PAY - ONLY UNPAID ABSENCES FOR
> MATERNITY OR PARENTAL REASONS WILL BE RECOGNIZABLE UNDER THE PLAN
> 22. BENEFIT CALCULATION - GIVEN THE INTERMITTENT AND WIDELY VARIED
> NATURE OF RESERVE FORCE SERVICE, THE BENEFIT FORMULA WILL BE BASED
> ON A MEMBER S UPDATED CAREER AVERAGE EARNINGS, THE BASIC ANNUAL
> BENEFIT WILL BE 1.5 (PERCENT) OF THESE EARNINGS. THE UPDATING
> FEATURE ALLOWS FOR ANNUAL EARNINGS TO BE ADJUSTED IN ACCORDANCE WITH
> A WAGE INDEX REFLECTING THE MOVEMENT OF MILITARY PAY. IN ADDITION,
> LIKE THE OTHER MAJOR SUPERANNUATION PLANS, THE PLAN FOR THE RESERVE
> FORCE WILL TAKE INTO ACCOUNT ENTITLEMENTS UNDER THE CANADA PENSION
> PLAN. THAT IS, IN ORDER TO PROVIDE A RELATIVELY SMOOTH AND
> PREDICTABLE LEVEL OF INCOME THROUGHOUT RETIREMENT, THERE WILL BE A
> SUPPLEMENTAL BENEFIT OF 0.5 (PERCENT) OF UPDATED CAREER AVERAGE
> EARNINGS PAYABLE FROM RETIREMENT UNTIL AGE SIXTY-FIVE. AT THIS POINT
> THE SUPPLEMENTAL BENEFIT WILL CEASE
> 23. INDEXING - BENEFITS WILL BE INDEXED ANNUALLY WITH THE SAME
> ELIGIBILITY CONDITIONS AND THE SAME CALCULATION AS THE INDEXING OF
> BENEFITS PAYABLE UNDER PART I OF THE CANADIAN FORCES SUPERANNUATION
> ACT, NAMELY, AT AGE 60, AT AGE 55 WITH 30 YEARS OF PENSIONABLE
> SERVICE, OR IF DISABLED
> 24. FORMULA FOR DETERMINING SURVIVOR BENEFITS - THE FORMULA UNDER
> THE PLAN FOR THE MONTHLY PENSION BENEFITS PAYABLE TO QUALIFIED
> SURVIVORS AND DEPENDENT CHILDREN WOULD BE WRITTEN TO PRODUCE THE
> MAXIMUM BENEFIT PERMISSIBLE UNDER THE INCOME TAX ACT RULES FOR
> REGISTERED PENSION PLANS. IN MOST CASES THIS WOULD RESULT IN THESE
> BENEFICIARIES HAVING MUCH THE SAME BENEFIT COVERAGE AS THEY WOULD
> HAVE UNDER PART I OF THE CANADIAN FORCES SUPERANNUATION ACT
> 25. COVERAGE OF QUOTE FULL-TIME UNQUOTE RESERVE FORCE MEMBERS -
> MEMBERS OF THE RESERVE FORCE WHO WORK ON A FULL-TIME BASIS FOR 55
> CONTINUOUS MONTHS IN A 60-MONTH PERIOD WILL BE COVERED UNDER THE
> SAME ARRANGEMENTS THAT APPLY TO THEIR REGULAR FORCE COUNTERPARTS. A
> MEMBER, ONCE UNDER THE PROVISIONS OF PART I, WILL REMAIN A
> CONTRIBUTOR UNDER THAT PART. WHERE, AFTER BECOMING A CONTRIBUTOR
> UNDER PART I, THE MEMBER OF THE RESERVE FORCE HAS A PERIOD OF
> PART-TIME SERVICE, THE BENEFITS RELATING TO THAT SERVICE WILL BE
> PRO-RATED
> 26. MEMBERS SHOULD CONSULT THE CFPMP WEBSITE ON AN ON-GOING BASIS
> FOR ADDITIONAL INFORMATION WHICH WILL BE MADE AVAILABLE
> END OF ENGLISH TEXT / LE TEXT FRANCAIS SUIT
>
- Reaction score
- 0
- Points
- 210
OBJET: REGIME DE RETRAITE DE LA FORCE DE RESERVE
> 1. JE SUIS HEUREUX D ANNONCER QUE LES MEMBRES DU CONSEIL DU TRESOR
> ONT DONNE LEUR ACCORD DE PRINCIPE A LA FOIS AUX PRINCIPAUX ELEMENTS
> DU REGIME DE RETRAITE DE LA FORCE DE RESERVE, LESQUELS SERONT
> INCORPORES DANS LE REGLEMENT ASSOCIE A LA LOI SUR LA PENSION DE
> RETRAITE DES FORCES CANADIENNES, AINSI QU A UNE PROPOSITION PORTANT
> SUR L ALLOCATION DE RETRAITE - FORCE DE RESERVE. IL S AGIT D UNE
> ETAPE IMPORTANTE DES EFFORTS CONTINUS VISANT A GARANTIR QUE LA
> REMUNERATION PREVUE POUR LA FORCE DE RESERVE SOIT SUFFISAMMENT
> COMPARABLE A CELLE DES MEMBRES DE LA FORCE REGULIERE
> 2. LA FORCE DE RESERVE EST UNE COMPOSANTE ESSENTIELLE DE NOTRE
> POSTURE MILITAIRE NATIONALE. SES MEMBRES JOUENT UN ROLE
> INDISPENSABLE DANS LA MESURE OU ILS PERMETTENT AUX FORCES
> CANADIENNES DE RELEVER LEURS DEFIS EN MATIERE DE DEFENSE ET DE
> SECURITE AU PAYS ET A L ETRANGER. A CE TITRE, L ACCEPTATION DU
> PRINCIPE DU REGIME DE RETRAITE CONSTITUE UN EXPLOIT POUR LES MEMBRES
> DE LA FORCE DE RESERVE ET LES COMITES PARLEMENTAIRES QUI
> RECOMMANDENT DEPUIS DE NOMBREUSES ANNEES QU UNE PROTECTION EN
> MATIERE DE PENSION SOIT OFFERTE A CETTE COMPOSANTE. IL S AGIT
> EGALEMENT D UNE AUTRE ETAPE IMPORTANTE FACILITANT LA TRANSFORMATION
> DES FORCES CANADIENNES ET DE L ENGAGEMENT DU GOUVERNEMENT A L EGARD
> DE LA QUALITE DE VIE DU PERSONNEL DES FORCES CANADIENNES
> 3. EN 1999, LA LEGISLATION SUR LA MODERNISATION DES REGIMES DE
> PENSION DU SECTEUR PUBLIC FEDERAL A FOURNI LES BASES JURIDIQUES
> NECESSAIRES POUR CREER DES MECANISMES DE PENSION OFFICIELS POUR LA
> FORCE DE RESERVE. EN 2003, LA LOI MODIFIANT LA LOI SUR LA PENSION DE
> RETRAITE DES FORCES CANADIENNES A ETE ADOPTEE. ELLE DEVAIT
> MODERNISER LES MECANISMES DE PENSION EXISTANTS DES FORCES
> CANADIENNES EN PLUS D OFFRIR UNE PROTECTION EN MATIERE DE PENSION
> AUX MEMBRES DE LA FORCE DE RESERVE QUI SERVENT A TEMPS PLEIN PENDANT
> DES PERIODES PROLONGEES, EN VERTU DES MEMES MECANISMES DE PENSION
> S ADRESSANT AUX MEMBRES DE LA FORCE REGULIERE. UNE BASE SOLIDE A
> EGALEMENT ETE PREVUE POUR L INTRODUCTION DE REGLEMENTS REGISSANT LES
> FUTURS MECANISMES DE PENSION POUR LA MAJORITE DES MEMBRES DE LA
> FORCES DE RESERVE QUI SERVENT PENDANT DE COURTES PERIODES OU QUAND
> IL LE FAUT
> 4. DEPUIS 2003, UNE ATTENTION A ETE PORTEE SUR L ELABORATION ET LA
> MISE EN OEUVRE DE NOUVEAUX MECANISMES DE PENSION, NOTAMMENT
> L ELABORATION DE POLITIQUES DETAILLEES, LA REDACTION DE REGLEMENTS A
> PARTIR DES POLITIQUES, LA CONCEPTION ET LA MISE A NIVEAU DES
> SYSTEMES ET DES PROCESSUS ADMINISTRATIFS DE SOUTIEN AINSI QUE LA
> CONSULTATION ET LA COMMUNICATION AVEC LES MEMBRES DES FORCES
> CANADIENNES. L ACCORD DE PRINCIPE DU CONSEIL DU TRESOR DES ELEMENTS
> PRINCIPAUX DU REGIME DE RETRAITE DE LA FORCE DE RESERVE SIGNIFIE QUE
> L ON PEUT PROCEDER AU PARACHEVEMENT DES REGLEMENTS DETAILLES, QUE
> LES CHANGEMENTS AUX SYSTEMES ET PROCESSUS AUTOMATISES PEUVENT ALLER
> DE L AVANT ET QUE LES MEMBRES DE LA FORCE DE RESERVE PEUVENT ETRE
> INFORMES AVEC UN PLUS HAUT NIVEAU DE CERTITUDE DES DISPOSITIONS DU
> REGIME AFIN QU ILS PUISSENT DETERMINER SON INCIDENCE SUR LEUR PROPRE
> SITUATION. ON S ATTEND A CE QUE LE MINISTRE DE LA DEFENSE NATIONALE
> DEMANDE PLUS TARD CETTE ANNEE AU CONSEIL DU TRESOR D APPROUVER DES
> REGLEMENTS QUI METTRONT A JOUR LES MECANISMES DE PENSION DE LA FORCE
> REGULIERE ET QUI ETABLIRONT LE REGIME DE RETRAITE DE LA FORCE DE
> RESERVE. LA MISE EN OEUVRE DES NOUVEAUX MECANISMES DE PENSION EST
> PREVUE POUR LE 1 JAN 06 AFIN DE COINCIDER AVEC LE DEBUT DE L ANNEE
> D IMPOSITION ET DE L ANNEE DE CONTRIBUTION DU REGIME DE PENSIONS DU
> CANADA
> 5. LES PRINCIPALES DISPOSITIONS DU REGIME DE RETRAITE DE LA FORCE
> DE RESERVE QUI ONT FAIT L OBJET D UN ACCORD DE PRINCIPE SONT
> SEMBLABLES ET DANS DE NOMBREUX CAS IDENTIQUES A CELLES PREVUES PAR
> LES AUTRES REGIMES DE RETRAITE DU SECTEUR PUBLIC FEDERAL, NOTAMMENT
> LA LOI SUR LA PENSION DE RETRAITE DE LA FONCTION PUBLIQUE, LA LOI
> SUR LA PENSION DE RETRAITE DE LA GENDARMERIE ROYALE DU CANADA ET
> PLUS PARTICULIEREMENT LA PARTIE I DE LA LOI SUR LA PENSION DE
> RETRAITE DES FORCES CANADIENNES (LE REGIME DE RETRAITE A L INTENTION
> DES MEMBRES DE LA FORCE REGULIERE)
> 6. LES PROPOSITIONS APPROUVEES QUI REVETENT UN INTERET PARTICULIER
> POUR LES MEMBRES DE LA FORCE DE RESERVE COMPRENNENT CELLES PORTANT
> SUR LE RACHAT DU SERVICE ANTERIEUR ET SUR L ALLOCATION DE RETRAITE -
> FORCE DE RESERVE
> 7. PRISE EN CONSIDERATION DU SERVICE ANTERIEUR - LE RESERVISTE AURA
> L OPTION DE PAYER LE MONTANT REQUIS POUR L ENSEMBLE DE SON SERVICE
> ANTERIEUR DANS LA FORCE DE RESERVE SOIT COMPTE
> 8. ALLOCATION DE RETRAITE - FORCE DE RESERVE - EN 1997, LE CONSEIL
> DU TRESOR A AUTORISE CE PROGRAMME DE CATEGORIE INDEMNITE DE DEPART
> POUR LES PERSONNES QUI SONT LIBEREES DE LA PREMIERE RESERVE ET QUI
> REPONDENT A CERTAINES CONDITIONS. LA FORMULE POUR CALCULER LES
> MONTANTS FORFAITAIRES A VERSER DANS LE CADRE DU PROGRAMME TIENT
> COMPTE DE LA DUREE TOTALE DU SERVICE PLUTOT QUE DES PERIODES DE
> SERVICE REMUNEREES. CE DISPOSITIF DEVAIT RECONNAITRE L ABSENCE D UNE
> PROTECTION EN MATIERE DE PENSION POUR CES MILITAIRES
> 9. AVEC L INTRODUCTION DU REGIME DE RETRAITE DE LA FORCE DE
> RESERVE, LE PROGRAMME D ALLOCATION DE RETRAITE - FORCE DE RESERVE
> SERA MODIFIE DE FACON A CE QUE LES ALLOCATIONS VERSEES APRES LA DATE
> D ENTREE EN VIGUEUR DU NOUVEAU REGIME SOIENT CALCULEES EN FONCTION
> DU TEMPS DE SERVICE REEL. TOUTEFOIS, LES PRESTATIONS POUR LE SERVICE
> EFFECTUE AVANT L ENTREE EN VIGUEUR DU REGIME DE PENSION CONTINUERONT
> D ETRE CALCULEES EN FONCTION DU CITATION TEMPS ECOULE FIN DE
> CITATION
> 10. VOICI LES AUTRES ELEMENTS DU REGIME DE RETRAITE APPROUVE PAR LE
> CONSEIL DU TRESOR. IL S AGIRA D UN REGIME A PRESTATIONS DETERMINEES
> QUI AURA UN CERTAIN NOMBRE DE DISPOSITIONS EN COMMUN AVEC LES LOIS
> SUR LES PENSIONS DE RETRAITE EN VIGUEUR: LES MECANISMES DE
> FINANCEMENT FONDAMENTAUX, LE PLACEMENT DE L ACTIF DU REGIME PAR
> L ENTREMISE DE L OFFICE D INVESTISSEMENT DES REGIMES DE PENSIONS DU
> SECTEUR PUBLIC, LES REGLES D ACQUISITION DE DROITS ET
> D IMMOBILISATION DES COTISATIONS, LA GAMME DE PRESTATIONS OFFERTES,
> LES SEUILS D ADMISSIBILITE AUX PRESTATIONS, UNE OPTION DE RETRAITE
> ANTICIPEE, UNE PRESTATION MENSUELLE SUPPLEMENTAIRE PERMETTANT DE
> COMBLER L ECART EN REVENU DE PENSION TOTAL ENTRE LE MOMENT DE LA
> RETRAITE ET L ADMISSIBILITE AU REGIME DE PENSIONS DU CANADA, LES
> CATEGORIES DE BENEFICIAIRES POTENTIELS, L INDEXAGE APRES LA RETRAITE
> ET LES EXIGENCES EN MATIERE DE DECLARATION (P. EX., RAPPORTS ANNUELS
> SUR L ADMINISTRATION DU REGIME ET RAPPORTS ACTUARIELS TRIENNAUX)
> 11. UNE AUTRE APPROCHE SERA ADOPTEE EN CE QUI CONCERNE LES
> DISPOSITIONS SUIVANTES POUR FAIRE EN SORTE QUE LE REGIME TIENNE
> SUFFISAMMENT COMPTE DES DIFFERENTS REGIMES DE TRAVAIL DE LA MAJORITE
> DES MEMBRES DE LA FORCE DE RESERVE, LESQUELS SONT GENERALEMENT
> CARACTERISES PAR DE BREVES CARRIERES MILITAIRES, PAR DES REGIMES DE
> TRAVAIL IRREGULIERS ET TRES DIVERSIFIES ET PAR DES GAINS QUI SONT
> SOUVENT INFERIEURS AU MAXIMUM DES GAINS OUVRANT DROIT A PENSION
> ETABLI PAR LE REGIME DE PENSIONS DU CANADA
> 12. ADMISSIBILITE AU REGIME - LES MEMBRES DE LA FORCE DE RESERVE
> PARTICIPERONT AU REGIME DES QU ILS AURONT SERVI PENDANT DEUX
> PERIODES CONSECUTIVES DE DOUZE MOIS ET ENREGISTRE LORS DE CHACUNE DE
> CES DEUX PERIODES DES GAINS REPRESENTANT AU MOINS 10 (POURCENT) DU
> MAXIMUM DES GAINS ANNUELS OUVRANT DROIT A PENSION APPLICABLE DANS LE
> CADRE DU REGIME DE PENSIONS DU CANADA. CES SEUILS D ADMISSIBILITE
> PERMETTENT DE TENIR COMPTE DU TAUX DE ROULEMENT TRES ELEVE DURANT
> LES DEUX PREMIERES ANNEES APRES L ENROLEMENT. UN MILITAIRE QUI SERT
> DANS LA FORCE DE RESERVE LE JOUR OU LE REGIME ENTRE EN VIGUEUR AURA
> LA POSSIBILITE DE FAIRE COMPTER SON SERVICE DEPUIS LE 1 AVR 99 AFIN
> D ATTEINDRE LE SEUIL D ADMISSIBILITE
> 13. TOUTE PERSONNE ENROLEE DANS UNE COMPOSANTE DE LA FORCE DE
> RESERVE (PREMIERE RESERVE, RESERVE SUPPLEMENTAIRE, CADRE DES
> INSTRUCTEURS DE CADETS, RANGERS CANADIENS) SERA ADMISSIBLE AU REGIME
> A CONDITION QU ELLE ATTEIGNE LES SEUILS D ADMISSIBILITE EN CE QUI A
> TRAIT AUX GAINS ET A LA DUREE DU SERVICE
> 14. TAUX DE COTISATION DES MILITAIRES - LES PARTICIPANTS AU REGIME
> SERONT TENUS DE COTISER CONFORMEMENT AU BAREME SUIVANT :
> 4,3 (POURCENT) DES GAINS EN 2006, 4,6 (POURCENT) EN 2007,
> 4,9 (POURCENT) EN 2008 ET 5,2 (POURCENT) EN 2009 ET PAR LA SUITE. SI
> UN FUTUR RAPPORT ACTUARIEL LE JUSTIFIE, LES DISPOSITIONS
> REGLEMENTAIRES SUR LES TAUX SERONT MODIFIEES. L OBJECTIF EST
> EGALEMENT DE FAIRE EN SORTE QUE LES TAUX DE COTISATION AU REGIME NE
> DEPASSERONT PAS LES TAUX PAYES PAR LES COTISANTS EN VERTU DE LA
> PARTIE I DE LA LOI SUR LA PENSION DE RETRAITE DES FORCES CANADIENNES
> 15. ACQUISITION DE DROITS, IMMOBILISATION DES COTISATIONS - PAR
> ACQUISITION DE DROITS, ON ENTEND LA PERIODE REQUISE POUR DEVENIR
> ADMISSIBLE A UNE PRESTATION DE RETRAITE CONTINUE. UN RESERVISTE QUI
> PARTICIPE AU REGIME PENDANT DEUX ANS ACQUERRA DES DROITS ET AURA LA
> GARANTIE DE TOUCHER UNE PRESTATION DE RETRAITE OU LA VALEUR DE
> TRANSFERT DES CREDITS DE PENSION ACCUMULES. LES PARTICIPANTS AVEC
> DROITS ACQUIS N AURONT PAS LE DROIT DE DEMANDER UN REMBOURSEMENT
> FORFAITAIRE DE LEURS COTISATIONS
> 16. PRESTATIONS VERSEES AUX PARTICIPANTS AVEC DROITS ACQUIS - UN
> PARTICIPANT AVEC DROITS ACQUIS QUI CESSE DE PARTICIPER AU REGIME
> AURA DROIT A UNE PENSION NON REDUITE IMMEDIATE:
> A. S IL A ATTEINT L AGE DE SOIXANTE ANS,
> B. S IL A ATTEINT L AGE DE CINQUANTE-CINQ ANS ET A TRENTE ANS DE
> SERVICE OUVRANT DROIT A PENSION,
> C. S IL A ETE REMUNERE POUR VINGT-CINQ ANNEES DE SERVICE DANS LES
> FORCES CANADIENNES,
> D. S IL EST HANDICAPE (AVEC DIX ANS DE SERVICE OUVRANT DROIT A
> PENSION), OU
> E. S IL EST LIBERE EN RAISON D UNE REDUCTION DE L EFFECTIF DE LA
> FORCE DE RESERVE
> 17. UN PARTICIPANT AVEC DROITS ACQUIS QUI CESSE DE PARTICIPER AU
> REGIME ET QUI NE FAIT PAS PARTIE DE L UNE DES CATEGORIES
> SUSMENTIONNEES AURA DROIT A UNE PENSION DIFFEREE, LAQUELLE SERA
> VERSEE A COMPTER DE SON SOIXANTIEME ANNIVERSAIRE. LE PARTICIPANT
> AURA DROIT A UNE PENSION REDUITE S IL A ENTRE CINQUANTE ET SOIXANTE
> ANS, OU S IL N A PAS CINQUANTE ANS, IL PEUT OPTER POUR UN PAIEMENT
> DE LA VALEUR DE TRANSFERT AU LIEU D UNE PENSION DIFFEREE
> 18. PARTICIPANTS SANS DROITS ACQUIS - UN PARTICIPANT QUI CESSE DE
> COTISER AU REGIME AVANT D EN AVOIR ETE MEMBRE PENDANT DEUX ANS AURA
> DROIT AU REMBOURSEMENT DES COTISATIONS QU IL A VERSEES DANS LE FONDS
> DE PENSION, PLUS LES INTERETS
> 19. LIMITE RELATIVE AUX TRENTE-CINQ ANNEES DE SERVICE - TOUT COMME
> LES AUTRES REGIMES DE RETRAITE DU SECTEUR PUBLIQUE FEDERALE, LE
> REGIME DE RETRAITE DE LA FORCE DE RESERVE COMPRENDRA UNE LIMITE DE
> TRENTE-CINQ ANNEES SUR LE NOMBRE D ANNEES DE SERVICE OUVRANT DROIT A
> PENSION POUVANT ETRE ACCUMULEES PAR UN PARTICIPANT; CEPENDANT, LES
> DROITS A PENSION ACCUMULES DANS LE CADRE D AUTRES REGIMES FEDERAUX
> NE COMPTERONT PAS AU TITRE DE CE CALCUL, DE LA MEME FACON QUE LES
> CREDITS ACCUMULES DANS LE CADRE DU REGIME DE RETRAITE DE LA FORCE DE
> RESERVE NE COMPTERONT PAS AU TITRE DE LA LIMITE DE TRENTE-CINQ
> ANNEES PREVUE PAR LES AUTRES REGIMES DE RETRAITE FEDERAUX
> 20. CESSATION DE L ADMISSIBILITE AU REGIME - LE RESERVISTE CESSE DE
> PARTICIPER ACTIVEMENT AU REGIME S IL CESSE D ETRE MEMBRE DE LA FORCE
> DE RESERVE OU S IL N EFFECTUE AUCUN SERVICE REMUNERE POUR LA
> RESERVE DURANT DOUZE MOIS CONSECUTIFS. CETTE DEUXIEME REGLE
> PERMETTRA AUX PRESTATIONS DE RETRAITE DE SE CRISTALLISER AU MOMENT
> OPPORTUN SANS QUE L INDIVIDU SOIT CONTRAINT DE QUITTER LA FORCE DE
> RESERVE
> 21. PRISE EN CONSIDERATION DU SERVICE SANS REMUNERATION - SEULES
> LES ABSENCES LIEES A LA MATERNITE OU A LA PARENTALITE SERONT
> RECONNUES DANS LE CADRE DU REGIME
> 22. CALCUL DES PRESTATIONS - ETANT DONNE LA NATURE INTERMITTENTE ET
> TRES DIVERSIFIEE DU REGIME DE TRAVAIL DE LA FORCE DE RESERVE, LA
> FORMULE DE CALCUL DES PRESTATIONS SERA FONDEE SUR LES GAINS MOYENS
> DE CARRIERE RAJUSTE, LA PRESTATION ANNUELLE DE BASE REPRESENTERA
> 1,5 (POURCENT) DE CES GAINS. LA FONCTION DE MISE A JOUR PERMETTANT
> DE RAJUSTER LES GAINS ANNUELS SERA CONFORME A L INDICE DES SALAIRES
> POUR TENIR COMPTE DE L EVOLUTION DE LA SOLDE MILITAIRE. DE PLUS,
> COMME LES AUTRES REGIMES DE PENSION IMPORTANTS, LE REGIME DE LA
> FORCE DE RESERVE TIENDRA COMPTE DES DROITS A LA PENSION EN VERTU DU
> REGIME DE PENSIONS DU CANADA. AUTREMENT DIT, POUR ASSURER UN NIVEAU
> DE REVENU RELATIVEMENT STABLE ET PREVISIBLE TOUT AU LONG DE LA
> RETRAITE, UNE PRESTATION SUPPLEMENTAIRE DE 0,5 (POURCENT) DES GAINS
> MOYENS DE CARRIERE ACTUALISES SERA VERSEE ENTRE LE MOMENT DE LA
> RETRAITE ET L AGE DES SOIXANTE-CINQ ANS, AGE AUQUEL LE VERSEMENT DE
> LA PRESTATION SUPPLEMENTAIRE CESSERA
> 23. INDEXAGE - LES PRESTATIONS SERONT INDEXEES CHAQUE ANNEE, AVEC
> LES MEMES CONDITIONS D ADMISSIBILITE ET LES MEMES CALCULS QUE
> L INDEXAGE DES PRESTATIONS VERSEES EN VERTU DE LA PARTIE I DE LA LOI
> SUR LA PENSION DE RETRAITE DES FORCES CANADIENNES, C EST A DIRE A
> L AGE DE 60 ANS OU DE 55 ANS AVEC 30 ANNEES DE SERVICE ELLIGIBLES A
> LA PENSION
> 24. FORMULE DE CALCUL DES PRESTATIONS AU SURVIVANT - LES FORMULES
> DU REGIME SERVANT A CALCULER LES PRESTATIONS DE RETRAITE MENSUELLES
> VERSEES AUX SURVIVANTS ET AUX ENFANTS A CHARGE ADMISSIBLES SERONT
> ETABLIES DE FACON A PRODUIRE LES PRESTATIONS MAXIMALES PAYABLES EN
> VERTU DES DISPOSITIONS DE LA LOI DE L IMPOT SUR LE REVENU PORTANT
> SUR LES REGIMES DE PENSION AGREES. DANS LA PLUPART DES CAS, CELA
> SIGNIFIE QUE LES BENEFICIAIRES AURONT DROIT ESSENTIELLEMENT AUX
> MEMES PRESTATIONS QUE CELLES QU ILS TOUCHERAIENT EN VERTU DE LA
> PARTIE I DE LA LOI SUR LA PENSION DE RETRAITE DES FORCES CANADIENNES
> 25. PRESTATIONS DES MEMBRES CITATION A TEMPS PLEIN FIN DE CITATION
> DE LA FORCE DE RESERVE - LES MEMBRES DE LA FORCE DE RESERVE QUI
> TRAVAILLENT A TEMPS PLEIN PENDANT 55 MOIS CONSECUTIFS DANS UNE
> PERIODE DE 60 MOIS AURONT DROIT A LA MEME PROTECTION EN MATIERE DE
> PENSION QUE CELLE OFFERTE A LEURS HOMOLOGUES DE LA FORCE REGULIERE.
> UNE FOIS QU UN RESERVISTE EST ADMISSIBLE A LA PROTECTION EN VERTU DE
> LA PARTIE I DE LA LOI SUR LA PENSION DE RETRAITE DES FORCES
> CANADIENNES, IL DEMEURERA UN CONTRIBUABLE A CETTE PARTIE. SI LE
> RESERVISTE, APRES ETRE DEVENU PARTICIPANT EN VERTU DE LA PARTIE I DE
> LA LOI SUR LA PENSION DE RETRAITE DES FORCES CANADIENNES, EFFECTUE
> UNE PERIODE DE SERVICE A TEMPS PARTIEL, LES AVANTAGES RELIES A CE
> SERVICE SERONT CALCULES AU PRORATA
> 26. LES RESERVISTES DOIVENT CONSULTER REGULIEREMENT LE SITE WEB DU
> PMRRFC POUR PRENDRE CONNAISSANCE DES NOUVEAUX RENSEIGNEMENTS QUI Y
> SERONT AFFICHES
> 1. JE SUIS HEUREUX D ANNONCER QUE LES MEMBRES DU CONSEIL DU TRESOR
> ONT DONNE LEUR ACCORD DE PRINCIPE A LA FOIS AUX PRINCIPAUX ELEMENTS
> DU REGIME DE RETRAITE DE LA FORCE DE RESERVE, LESQUELS SERONT
> INCORPORES DANS LE REGLEMENT ASSOCIE A LA LOI SUR LA PENSION DE
> RETRAITE DES FORCES CANADIENNES, AINSI QU A UNE PROPOSITION PORTANT
> SUR L ALLOCATION DE RETRAITE - FORCE DE RESERVE. IL S AGIT D UNE
> ETAPE IMPORTANTE DES EFFORTS CONTINUS VISANT A GARANTIR QUE LA
> REMUNERATION PREVUE POUR LA FORCE DE RESERVE SOIT SUFFISAMMENT
> COMPARABLE A CELLE DES MEMBRES DE LA FORCE REGULIERE
> 2. LA FORCE DE RESERVE EST UNE COMPOSANTE ESSENTIELLE DE NOTRE
> POSTURE MILITAIRE NATIONALE. SES MEMBRES JOUENT UN ROLE
> INDISPENSABLE DANS LA MESURE OU ILS PERMETTENT AUX FORCES
> CANADIENNES DE RELEVER LEURS DEFIS EN MATIERE DE DEFENSE ET DE
> SECURITE AU PAYS ET A L ETRANGER. A CE TITRE, L ACCEPTATION DU
> PRINCIPE DU REGIME DE RETRAITE CONSTITUE UN EXPLOIT POUR LES MEMBRES
> DE LA FORCE DE RESERVE ET LES COMITES PARLEMENTAIRES QUI
> RECOMMANDENT DEPUIS DE NOMBREUSES ANNEES QU UNE PROTECTION EN
> MATIERE DE PENSION SOIT OFFERTE A CETTE COMPOSANTE. IL S AGIT
> EGALEMENT D UNE AUTRE ETAPE IMPORTANTE FACILITANT LA TRANSFORMATION
> DES FORCES CANADIENNES ET DE L ENGAGEMENT DU GOUVERNEMENT A L EGARD
> DE LA QUALITE DE VIE DU PERSONNEL DES FORCES CANADIENNES
> 3. EN 1999, LA LEGISLATION SUR LA MODERNISATION DES REGIMES DE
> PENSION DU SECTEUR PUBLIC FEDERAL A FOURNI LES BASES JURIDIQUES
> NECESSAIRES POUR CREER DES MECANISMES DE PENSION OFFICIELS POUR LA
> FORCE DE RESERVE. EN 2003, LA LOI MODIFIANT LA LOI SUR LA PENSION DE
> RETRAITE DES FORCES CANADIENNES A ETE ADOPTEE. ELLE DEVAIT
> MODERNISER LES MECANISMES DE PENSION EXISTANTS DES FORCES
> CANADIENNES EN PLUS D OFFRIR UNE PROTECTION EN MATIERE DE PENSION
> AUX MEMBRES DE LA FORCE DE RESERVE QUI SERVENT A TEMPS PLEIN PENDANT
> DES PERIODES PROLONGEES, EN VERTU DES MEMES MECANISMES DE PENSION
> S ADRESSANT AUX MEMBRES DE LA FORCE REGULIERE. UNE BASE SOLIDE A
> EGALEMENT ETE PREVUE POUR L INTRODUCTION DE REGLEMENTS REGISSANT LES
> FUTURS MECANISMES DE PENSION POUR LA MAJORITE DES MEMBRES DE LA
> FORCES DE RESERVE QUI SERVENT PENDANT DE COURTES PERIODES OU QUAND
> IL LE FAUT
> 4. DEPUIS 2003, UNE ATTENTION A ETE PORTEE SUR L ELABORATION ET LA
> MISE EN OEUVRE DE NOUVEAUX MECANISMES DE PENSION, NOTAMMENT
> L ELABORATION DE POLITIQUES DETAILLEES, LA REDACTION DE REGLEMENTS A
> PARTIR DES POLITIQUES, LA CONCEPTION ET LA MISE A NIVEAU DES
> SYSTEMES ET DES PROCESSUS ADMINISTRATIFS DE SOUTIEN AINSI QUE LA
> CONSULTATION ET LA COMMUNICATION AVEC LES MEMBRES DES FORCES
> CANADIENNES. L ACCORD DE PRINCIPE DU CONSEIL DU TRESOR DES ELEMENTS
> PRINCIPAUX DU REGIME DE RETRAITE DE LA FORCE DE RESERVE SIGNIFIE QUE
> L ON PEUT PROCEDER AU PARACHEVEMENT DES REGLEMENTS DETAILLES, QUE
> LES CHANGEMENTS AUX SYSTEMES ET PROCESSUS AUTOMATISES PEUVENT ALLER
> DE L AVANT ET QUE LES MEMBRES DE LA FORCE DE RESERVE PEUVENT ETRE
> INFORMES AVEC UN PLUS HAUT NIVEAU DE CERTITUDE DES DISPOSITIONS DU
> REGIME AFIN QU ILS PUISSENT DETERMINER SON INCIDENCE SUR LEUR PROPRE
> SITUATION. ON S ATTEND A CE QUE LE MINISTRE DE LA DEFENSE NATIONALE
> DEMANDE PLUS TARD CETTE ANNEE AU CONSEIL DU TRESOR D APPROUVER DES
> REGLEMENTS QUI METTRONT A JOUR LES MECANISMES DE PENSION DE LA FORCE
> REGULIERE ET QUI ETABLIRONT LE REGIME DE RETRAITE DE LA FORCE DE
> RESERVE. LA MISE EN OEUVRE DES NOUVEAUX MECANISMES DE PENSION EST
> PREVUE POUR LE 1 JAN 06 AFIN DE COINCIDER AVEC LE DEBUT DE L ANNEE
> D IMPOSITION ET DE L ANNEE DE CONTRIBUTION DU REGIME DE PENSIONS DU
> CANADA
> 5. LES PRINCIPALES DISPOSITIONS DU REGIME DE RETRAITE DE LA FORCE
> DE RESERVE QUI ONT FAIT L OBJET D UN ACCORD DE PRINCIPE SONT
> SEMBLABLES ET DANS DE NOMBREUX CAS IDENTIQUES A CELLES PREVUES PAR
> LES AUTRES REGIMES DE RETRAITE DU SECTEUR PUBLIC FEDERAL, NOTAMMENT
> LA LOI SUR LA PENSION DE RETRAITE DE LA FONCTION PUBLIQUE, LA LOI
> SUR LA PENSION DE RETRAITE DE LA GENDARMERIE ROYALE DU CANADA ET
> PLUS PARTICULIEREMENT LA PARTIE I DE LA LOI SUR LA PENSION DE
> RETRAITE DES FORCES CANADIENNES (LE REGIME DE RETRAITE A L INTENTION
> DES MEMBRES DE LA FORCE REGULIERE)
> 6. LES PROPOSITIONS APPROUVEES QUI REVETENT UN INTERET PARTICULIER
> POUR LES MEMBRES DE LA FORCE DE RESERVE COMPRENNENT CELLES PORTANT
> SUR LE RACHAT DU SERVICE ANTERIEUR ET SUR L ALLOCATION DE RETRAITE -
> FORCE DE RESERVE
> 7. PRISE EN CONSIDERATION DU SERVICE ANTERIEUR - LE RESERVISTE AURA
> L OPTION DE PAYER LE MONTANT REQUIS POUR L ENSEMBLE DE SON SERVICE
> ANTERIEUR DANS LA FORCE DE RESERVE SOIT COMPTE
> 8. ALLOCATION DE RETRAITE - FORCE DE RESERVE - EN 1997, LE CONSEIL
> DU TRESOR A AUTORISE CE PROGRAMME DE CATEGORIE INDEMNITE DE DEPART
> POUR LES PERSONNES QUI SONT LIBEREES DE LA PREMIERE RESERVE ET QUI
> REPONDENT A CERTAINES CONDITIONS. LA FORMULE POUR CALCULER LES
> MONTANTS FORFAITAIRES A VERSER DANS LE CADRE DU PROGRAMME TIENT
> COMPTE DE LA DUREE TOTALE DU SERVICE PLUTOT QUE DES PERIODES DE
> SERVICE REMUNEREES. CE DISPOSITIF DEVAIT RECONNAITRE L ABSENCE D UNE
> PROTECTION EN MATIERE DE PENSION POUR CES MILITAIRES
> 9. AVEC L INTRODUCTION DU REGIME DE RETRAITE DE LA FORCE DE
> RESERVE, LE PROGRAMME D ALLOCATION DE RETRAITE - FORCE DE RESERVE
> SERA MODIFIE DE FACON A CE QUE LES ALLOCATIONS VERSEES APRES LA DATE
> D ENTREE EN VIGUEUR DU NOUVEAU REGIME SOIENT CALCULEES EN FONCTION
> DU TEMPS DE SERVICE REEL. TOUTEFOIS, LES PRESTATIONS POUR LE SERVICE
> EFFECTUE AVANT L ENTREE EN VIGUEUR DU REGIME DE PENSION CONTINUERONT
> D ETRE CALCULEES EN FONCTION DU CITATION TEMPS ECOULE FIN DE
> CITATION
> 10. VOICI LES AUTRES ELEMENTS DU REGIME DE RETRAITE APPROUVE PAR LE
> CONSEIL DU TRESOR. IL S AGIRA D UN REGIME A PRESTATIONS DETERMINEES
> QUI AURA UN CERTAIN NOMBRE DE DISPOSITIONS EN COMMUN AVEC LES LOIS
> SUR LES PENSIONS DE RETRAITE EN VIGUEUR: LES MECANISMES DE
> FINANCEMENT FONDAMENTAUX, LE PLACEMENT DE L ACTIF DU REGIME PAR
> L ENTREMISE DE L OFFICE D INVESTISSEMENT DES REGIMES DE PENSIONS DU
> SECTEUR PUBLIC, LES REGLES D ACQUISITION DE DROITS ET
> D IMMOBILISATION DES COTISATIONS, LA GAMME DE PRESTATIONS OFFERTES,
> LES SEUILS D ADMISSIBILITE AUX PRESTATIONS, UNE OPTION DE RETRAITE
> ANTICIPEE, UNE PRESTATION MENSUELLE SUPPLEMENTAIRE PERMETTANT DE
> COMBLER L ECART EN REVENU DE PENSION TOTAL ENTRE LE MOMENT DE LA
> RETRAITE ET L ADMISSIBILITE AU REGIME DE PENSIONS DU CANADA, LES
> CATEGORIES DE BENEFICIAIRES POTENTIELS, L INDEXAGE APRES LA RETRAITE
> ET LES EXIGENCES EN MATIERE DE DECLARATION (P. EX., RAPPORTS ANNUELS
> SUR L ADMINISTRATION DU REGIME ET RAPPORTS ACTUARIELS TRIENNAUX)
> 11. UNE AUTRE APPROCHE SERA ADOPTEE EN CE QUI CONCERNE LES
> DISPOSITIONS SUIVANTES POUR FAIRE EN SORTE QUE LE REGIME TIENNE
> SUFFISAMMENT COMPTE DES DIFFERENTS REGIMES DE TRAVAIL DE LA MAJORITE
> DES MEMBRES DE LA FORCE DE RESERVE, LESQUELS SONT GENERALEMENT
> CARACTERISES PAR DE BREVES CARRIERES MILITAIRES, PAR DES REGIMES DE
> TRAVAIL IRREGULIERS ET TRES DIVERSIFIES ET PAR DES GAINS QUI SONT
> SOUVENT INFERIEURS AU MAXIMUM DES GAINS OUVRANT DROIT A PENSION
> ETABLI PAR LE REGIME DE PENSIONS DU CANADA
> 12. ADMISSIBILITE AU REGIME - LES MEMBRES DE LA FORCE DE RESERVE
> PARTICIPERONT AU REGIME DES QU ILS AURONT SERVI PENDANT DEUX
> PERIODES CONSECUTIVES DE DOUZE MOIS ET ENREGISTRE LORS DE CHACUNE DE
> CES DEUX PERIODES DES GAINS REPRESENTANT AU MOINS 10 (POURCENT) DU
> MAXIMUM DES GAINS ANNUELS OUVRANT DROIT A PENSION APPLICABLE DANS LE
> CADRE DU REGIME DE PENSIONS DU CANADA. CES SEUILS D ADMISSIBILITE
> PERMETTENT DE TENIR COMPTE DU TAUX DE ROULEMENT TRES ELEVE DURANT
> LES DEUX PREMIERES ANNEES APRES L ENROLEMENT. UN MILITAIRE QUI SERT
> DANS LA FORCE DE RESERVE LE JOUR OU LE REGIME ENTRE EN VIGUEUR AURA
> LA POSSIBILITE DE FAIRE COMPTER SON SERVICE DEPUIS LE 1 AVR 99 AFIN
> D ATTEINDRE LE SEUIL D ADMISSIBILITE
> 13. TOUTE PERSONNE ENROLEE DANS UNE COMPOSANTE DE LA FORCE DE
> RESERVE (PREMIERE RESERVE, RESERVE SUPPLEMENTAIRE, CADRE DES
> INSTRUCTEURS DE CADETS, RANGERS CANADIENS) SERA ADMISSIBLE AU REGIME
> A CONDITION QU ELLE ATTEIGNE LES SEUILS D ADMISSIBILITE EN CE QUI A
> TRAIT AUX GAINS ET A LA DUREE DU SERVICE
> 14. TAUX DE COTISATION DES MILITAIRES - LES PARTICIPANTS AU REGIME
> SERONT TENUS DE COTISER CONFORMEMENT AU BAREME SUIVANT :
> 4,3 (POURCENT) DES GAINS EN 2006, 4,6 (POURCENT) EN 2007,
> 4,9 (POURCENT) EN 2008 ET 5,2 (POURCENT) EN 2009 ET PAR LA SUITE. SI
> UN FUTUR RAPPORT ACTUARIEL LE JUSTIFIE, LES DISPOSITIONS
> REGLEMENTAIRES SUR LES TAUX SERONT MODIFIEES. L OBJECTIF EST
> EGALEMENT DE FAIRE EN SORTE QUE LES TAUX DE COTISATION AU REGIME NE
> DEPASSERONT PAS LES TAUX PAYES PAR LES COTISANTS EN VERTU DE LA
> PARTIE I DE LA LOI SUR LA PENSION DE RETRAITE DES FORCES CANADIENNES
> 15. ACQUISITION DE DROITS, IMMOBILISATION DES COTISATIONS - PAR
> ACQUISITION DE DROITS, ON ENTEND LA PERIODE REQUISE POUR DEVENIR
> ADMISSIBLE A UNE PRESTATION DE RETRAITE CONTINUE. UN RESERVISTE QUI
> PARTICIPE AU REGIME PENDANT DEUX ANS ACQUERRA DES DROITS ET AURA LA
> GARANTIE DE TOUCHER UNE PRESTATION DE RETRAITE OU LA VALEUR DE
> TRANSFERT DES CREDITS DE PENSION ACCUMULES. LES PARTICIPANTS AVEC
> DROITS ACQUIS N AURONT PAS LE DROIT DE DEMANDER UN REMBOURSEMENT
> FORFAITAIRE DE LEURS COTISATIONS
> 16. PRESTATIONS VERSEES AUX PARTICIPANTS AVEC DROITS ACQUIS - UN
> PARTICIPANT AVEC DROITS ACQUIS QUI CESSE DE PARTICIPER AU REGIME
> AURA DROIT A UNE PENSION NON REDUITE IMMEDIATE:
> A. S IL A ATTEINT L AGE DE SOIXANTE ANS,
> B. S IL A ATTEINT L AGE DE CINQUANTE-CINQ ANS ET A TRENTE ANS DE
> SERVICE OUVRANT DROIT A PENSION,
> C. S IL A ETE REMUNERE POUR VINGT-CINQ ANNEES DE SERVICE DANS LES
> FORCES CANADIENNES,
> D. S IL EST HANDICAPE (AVEC DIX ANS DE SERVICE OUVRANT DROIT A
> PENSION), OU
> E. S IL EST LIBERE EN RAISON D UNE REDUCTION DE L EFFECTIF DE LA
> FORCE DE RESERVE
> 17. UN PARTICIPANT AVEC DROITS ACQUIS QUI CESSE DE PARTICIPER AU
> REGIME ET QUI NE FAIT PAS PARTIE DE L UNE DES CATEGORIES
> SUSMENTIONNEES AURA DROIT A UNE PENSION DIFFEREE, LAQUELLE SERA
> VERSEE A COMPTER DE SON SOIXANTIEME ANNIVERSAIRE. LE PARTICIPANT
> AURA DROIT A UNE PENSION REDUITE S IL A ENTRE CINQUANTE ET SOIXANTE
> ANS, OU S IL N A PAS CINQUANTE ANS, IL PEUT OPTER POUR UN PAIEMENT
> DE LA VALEUR DE TRANSFERT AU LIEU D UNE PENSION DIFFEREE
> 18. PARTICIPANTS SANS DROITS ACQUIS - UN PARTICIPANT QUI CESSE DE
> COTISER AU REGIME AVANT D EN AVOIR ETE MEMBRE PENDANT DEUX ANS AURA
> DROIT AU REMBOURSEMENT DES COTISATIONS QU IL A VERSEES DANS LE FONDS
> DE PENSION, PLUS LES INTERETS
> 19. LIMITE RELATIVE AUX TRENTE-CINQ ANNEES DE SERVICE - TOUT COMME
> LES AUTRES REGIMES DE RETRAITE DU SECTEUR PUBLIQUE FEDERALE, LE
> REGIME DE RETRAITE DE LA FORCE DE RESERVE COMPRENDRA UNE LIMITE DE
> TRENTE-CINQ ANNEES SUR LE NOMBRE D ANNEES DE SERVICE OUVRANT DROIT A
> PENSION POUVANT ETRE ACCUMULEES PAR UN PARTICIPANT; CEPENDANT, LES
> DROITS A PENSION ACCUMULES DANS LE CADRE D AUTRES REGIMES FEDERAUX
> NE COMPTERONT PAS AU TITRE DE CE CALCUL, DE LA MEME FACON QUE LES
> CREDITS ACCUMULES DANS LE CADRE DU REGIME DE RETRAITE DE LA FORCE DE
> RESERVE NE COMPTERONT PAS AU TITRE DE LA LIMITE DE TRENTE-CINQ
> ANNEES PREVUE PAR LES AUTRES REGIMES DE RETRAITE FEDERAUX
> 20. CESSATION DE L ADMISSIBILITE AU REGIME - LE RESERVISTE CESSE DE
> PARTICIPER ACTIVEMENT AU REGIME S IL CESSE D ETRE MEMBRE DE LA FORCE
> DE RESERVE OU S IL N EFFECTUE AUCUN SERVICE REMUNERE POUR LA
> RESERVE DURANT DOUZE MOIS CONSECUTIFS. CETTE DEUXIEME REGLE
> PERMETTRA AUX PRESTATIONS DE RETRAITE DE SE CRISTALLISER AU MOMENT
> OPPORTUN SANS QUE L INDIVIDU SOIT CONTRAINT DE QUITTER LA FORCE DE
> RESERVE
> 21. PRISE EN CONSIDERATION DU SERVICE SANS REMUNERATION - SEULES
> LES ABSENCES LIEES A LA MATERNITE OU A LA PARENTALITE SERONT
> RECONNUES DANS LE CADRE DU REGIME
> 22. CALCUL DES PRESTATIONS - ETANT DONNE LA NATURE INTERMITTENTE ET
> TRES DIVERSIFIEE DU REGIME DE TRAVAIL DE LA FORCE DE RESERVE, LA
> FORMULE DE CALCUL DES PRESTATIONS SERA FONDEE SUR LES GAINS MOYENS
> DE CARRIERE RAJUSTE, LA PRESTATION ANNUELLE DE BASE REPRESENTERA
> 1,5 (POURCENT) DE CES GAINS. LA FONCTION DE MISE A JOUR PERMETTANT
> DE RAJUSTER LES GAINS ANNUELS SERA CONFORME A L INDICE DES SALAIRES
> POUR TENIR COMPTE DE L EVOLUTION DE LA SOLDE MILITAIRE. DE PLUS,
> COMME LES AUTRES REGIMES DE PENSION IMPORTANTS, LE REGIME DE LA
> FORCE DE RESERVE TIENDRA COMPTE DES DROITS A LA PENSION EN VERTU DU
> REGIME DE PENSIONS DU CANADA. AUTREMENT DIT, POUR ASSURER UN NIVEAU
> DE REVENU RELATIVEMENT STABLE ET PREVISIBLE TOUT AU LONG DE LA
> RETRAITE, UNE PRESTATION SUPPLEMENTAIRE DE 0,5 (POURCENT) DES GAINS
> MOYENS DE CARRIERE ACTUALISES SERA VERSEE ENTRE LE MOMENT DE LA
> RETRAITE ET L AGE DES SOIXANTE-CINQ ANS, AGE AUQUEL LE VERSEMENT DE
> LA PRESTATION SUPPLEMENTAIRE CESSERA
> 23. INDEXAGE - LES PRESTATIONS SERONT INDEXEES CHAQUE ANNEE, AVEC
> LES MEMES CONDITIONS D ADMISSIBILITE ET LES MEMES CALCULS QUE
> L INDEXAGE DES PRESTATIONS VERSEES EN VERTU DE LA PARTIE I DE LA LOI
> SUR LA PENSION DE RETRAITE DES FORCES CANADIENNES, C EST A DIRE A
> L AGE DE 60 ANS OU DE 55 ANS AVEC 30 ANNEES DE SERVICE ELLIGIBLES A
> LA PENSION
> 24. FORMULE DE CALCUL DES PRESTATIONS AU SURVIVANT - LES FORMULES
> DU REGIME SERVANT A CALCULER LES PRESTATIONS DE RETRAITE MENSUELLES
> VERSEES AUX SURVIVANTS ET AUX ENFANTS A CHARGE ADMISSIBLES SERONT
> ETABLIES DE FACON A PRODUIRE LES PRESTATIONS MAXIMALES PAYABLES EN
> VERTU DES DISPOSITIONS DE LA LOI DE L IMPOT SUR LE REVENU PORTANT
> SUR LES REGIMES DE PENSION AGREES. DANS LA PLUPART DES CAS, CELA
> SIGNIFIE QUE LES BENEFICIAIRES AURONT DROIT ESSENTIELLEMENT AUX
> MEMES PRESTATIONS QUE CELLES QU ILS TOUCHERAIENT EN VERTU DE LA
> PARTIE I DE LA LOI SUR LA PENSION DE RETRAITE DES FORCES CANADIENNES
> 25. PRESTATIONS DES MEMBRES CITATION A TEMPS PLEIN FIN DE CITATION
> DE LA FORCE DE RESERVE - LES MEMBRES DE LA FORCE DE RESERVE QUI
> TRAVAILLENT A TEMPS PLEIN PENDANT 55 MOIS CONSECUTIFS DANS UNE
> PERIODE DE 60 MOIS AURONT DROIT A LA MEME PROTECTION EN MATIERE DE
> PENSION QUE CELLE OFFERTE A LEURS HOMOLOGUES DE LA FORCE REGULIERE.
> UNE FOIS QU UN RESERVISTE EST ADMISSIBLE A LA PROTECTION EN VERTU DE
> LA PARTIE I DE LA LOI SUR LA PENSION DE RETRAITE DES FORCES
> CANADIENNES, IL DEMEURERA UN CONTRIBUABLE A CETTE PARTIE. SI LE
> RESERVISTE, APRES ETRE DEVENU PARTICIPANT EN VERTU DE LA PARTIE I DE
> LA LOI SUR LA PENSION DE RETRAITE DES FORCES CANADIENNES, EFFECTUE
> UNE PERIODE DE SERVICE A TEMPS PARTIEL, LES AVANTAGES RELIES A CE
> SERVICE SERONT CALCULES AU PRORATA
> 26. LES RESERVISTES DOIVENT CONSULTER REGULIEREMENT LE SITE WEB DU
> PMRRFC POUR PRENDRE CONNAISSANCE DES NOUVEAUX RENSEIGNEMENTS QUI Y
> SERONT AFFICHES
- Reaction score
- 1
- Points
- 410
The only draw back to us long serving members is having to come up with the $'s once we find out how much time we can buy back and our monies will not have the interest to have a long term pension due to lack of accumilated interest.
If it's still based on the $3,000 for every year I have to come up with a min of $45,000 once every thing is clear :crybaby:
Any spare change for a Vet.? ;D LOL
You youngn's pay into it as soon as it starts and if you quite DON"T take it out,leave it in as your monies will acrue interest and it will become a little pay cheque in old age.
If it's still based on the $3,000 for every year I have to come up with a min of $45,000 once every thing is clear :crybaby:
Any spare change for a Vet.? ;D LOL
You youngn's pay into it as soon as it starts and if you quite DON"T take it out,leave it in as your monies will acrue interest and it will become a little pay cheque in old age.
- Reaction score
- 0
- Points
- 110
I think if read the text carefully we will be buying back service at a rate probably no more than 4.3%. I am making an educated guess as the rate for Jan 1 2006 starts at 4.3%. (para 14) I also understand that the government will be contributing its portion (which is quite generous in relation to other plans if I understand these things at all) for all past service that you buy back. As an example if you made $15,000 in a past year 4.3% of that is $645. Not bad.
The question becomes do they use the "members updated career average earnings" (para 22) for a given year to calculate how much you have to buy back. If so the $10,000 you made back in 1990 then gets multiplied by a factor which can be quite large when you go back quite a ways.
I was also happy to see that the reserve retirement gratuity is not going to be thrown out. Those of us entitled to it will receive the gratuity and we will be adding the pension on top. (if I read para 9 correctly)
The rate is nice in that 1.5% plus the 0.5% bridge makes a 2% of total earnings paid yearly until the age of 65 then 1.5% thereafter.
I look forward to learning more as the implementation date approaches.
The question becomes do they use the "members updated career average earnings" (para 22) for a given year to calculate how much you have to buy back. If so the $10,000 you made back in 1990 then gets multiplied by a factor which can be quite large when you go back quite a ways.
I was also happy to see that the reserve retirement gratuity is not going to be thrown out. Those of us entitled to it will receive the gratuity and we will be adding the pension on top. (if I read para 9 correctly)
The rate is nice in that 1.5% plus the 0.5% bridge makes a 2% of total earnings paid yearly until the age of 65 then 1.5% thereafter.
I look forward to learning more as the implementation date approaches.
- Reaction score
- 0
- Points
- 110
Further research into buying back past service in public service pensions indicates that you must pay the original amount and the interest. It is the interest that can be really expensive part especially when you are buying back service from 15-20 years ago. Looks like a financial planner is going to be required to figure out whether it makes sense to buy it all back.
Gunner
Army.ca Veteran
- Reaction score
- 11
- Points
- 430
Just a comment along the lines of buying back past service, etc.
As everyone knows, there is no such thing as a free lunch, and there certainly are not any free pensions. The contribution rates must be paid by the member (4.3% under YPME and 7.5% over YPME) as well as the costs of buying back your past service. For some, if not many, this may result in a decrease in your net pay (your take home pay every two weeks). This will have some "pain" in the short term but with long term benefits in that you will receive a government sponsored defined benefit pension after 25 years of CF service (and other combinations).
The Cl B clerk, the staff officer, the training NCO who lives pay check to pay check will realize a net reduction in his take home pay as he will have to pay for a pension as it is mandatory. Some will find this reduction in net pay to be considerable when combined with the additional costs from buying back.
For a Cpl on Cl B, you are probably looking at paying around $1800 per year or $150/month (based on a 40K salary) in addition to buying back. Your buy back will depend on how much service you have but begin thinking about what you are going to do on 1 January 2006, after Christmas materialism splurge, when you are paying your normal expenses, Christmas expenses and you have $200 less coming in every month.
The pension is scheduled to be implemented on 1 January 2006 and I would urge all Reservists faced with large buy backs due to long service or long time Cl B service, start thinking about how you are going to rearrange your budget to take into consideration you change in net pay. The best way to do this is to begin contributing to an RRSP or increase your RRSP contribtution to reflect how much you will be contributing in the future.
Its coming and you had better prepare for it!
As everyone knows, there is no such thing as a free lunch, and there certainly are not any free pensions. The contribution rates must be paid by the member (4.3% under YPME and 7.5% over YPME) as well as the costs of buying back your past service. For some, if not many, this may result in a decrease in your net pay (your take home pay every two weeks). This will have some "pain" in the short term but with long term benefits in that you will receive a government sponsored defined benefit pension after 25 years of CF service (and other combinations).
The Cl B clerk, the staff officer, the training NCO who lives pay check to pay check will realize a net reduction in his take home pay as he will have to pay for a pension as it is mandatory. Some will find this reduction in net pay to be considerable when combined with the additional costs from buying back.
For a Cpl on Cl B, you are probably looking at paying around $1800 per year or $150/month (based on a 40K salary) in addition to buying back. Your buy back will depend on how much service you have but begin thinking about what you are going to do on 1 January 2006, after Christmas materialism splurge, when you are paying your normal expenses, Christmas expenses and you have $200 less coming in every month.
The pension is scheduled to be implemented on 1 January 2006 and I would urge all Reservists faced with large buy backs due to long service or long time Cl B service, start thinking about how you are going to rearrange your budget to take into consideration you change in net pay. The best way to do this is to begin contributing to an RRSP or increase your RRSP contribtution to reflect how much you will be contributing in the future.
Its coming and you had better prepare for it!
- Reaction score
- 0
- Points
- 210
"IF" the buy-back cost will be based on the YMPE for each past year, this link may be helpful - it shows the YMPEs for all years from 1966 to 2005 inclusive. Like HCA in the post above, I'm a little concerned about the possibility of having to pay interest as well.
I look forward to the day when we actually know how the buy-back will work, instead of guessing!
http://www.pwgsc.gc.ca/compensation/sam/sam-4-7-3-e.html
I look forward to the day when we actually know how the buy-back will work, instead of guessing!
http://www.pwgsc.gc.ca/compensation/sam/sam-4-7-3-e.html
- Reaction score
- 1,401
- Points
- 1,160
The pension is AGAIN being delayed for various reasons, including systems not being in place for the admin. There is no indication of the length of the delay. A CANFORGEN will eventually be issued this fall. The CFPMP is being absorbed into DPSP(Director Pension and Social Programmes) in early October. It remains a part of DGCB organization. Every delay increases the cost of buyback - compound interest @ 7 % on compound interest. Remember the current CF slogan: " People First"!!!
- Reaction score
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- Points
- 410
Heard it too... from another source...
Also been told that it's the Pension shop that is asking / saying that bringing it into effect should be delayed WHILE the people up above are saying nay & want to have it deployed, as advertised on 01 Jan 06....
The thing that would bother me is that, if they delay it again, what about the poor saps that "could have" benefited from the program, who have left the forces before implementation?
...not fair!!!
Also been told that it's the Pension shop that is asking / saying that bringing it into effect should be delayed WHILE the people up above are saying nay & want to have it deployed, as advertised on 01 Jan 06....
The thing that would bother me is that, if they delay it again, what about the poor saps that "could have" benefited from the program, who have left the forces before implementation?
...not fair!!!
- Reaction score
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- Points
- 210
Exactly. Here's just one example ... a Res F mbr on medical accommodation, will be rel 3(b) - wants to take their release asap for health reasons, but are just waiting until pension implementation so they can buy back the 10 years of svc required to get an immediate unreduced annuity upon medical release. But there's delay after delay.
Most of us can wait a while longer for the pension if we have to, but how many more years are members like this example going to be strung along?
Most of us can wait a while longer for the pension if we have to, but how many more years are members like this example going to be strung along?
- Reaction score
- 1,401
- Points
- 1,160
This is not a rumor. I verified it with the project office. How long will it take? Good question. Remember, it took 27 1/2 years to bring the Reserve pay from an average of 65 % and only 2 incentives, to 85 % and the same incentive number as the Reg F( was also caught up in the pay freeze). Thats the track record, although i don't think the pension will take that long. Look at the Treasury Board web site. You will be surprised to find out who is eligible for a Federal pension- mbrs of Royal Commissions, CRTC, Harbour Boards, and the usually suspects. When the original legislation was enacted in 1986, it was all pers employed by the Federal govt would have access to a pension. It was made retro to 1981 for the Public Service. Part time employees had to work a minimum of 14 hrs a week to be eligible. Now with all the people in NDHQ at that time, don't you think someone may have noticed that the only pers who were not getting access were the Reserves? There must have been a fair number of civilian pers who were now eligible for the PSSA. Don't you think alarm bells may have gone off? Perhaps it was an oversite. What do you think?
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- Points
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Well whatever the origins, it's gone on long enough! The folks in the project office have a tough job figuring all the details out, I'm sure. Whatever the barriers are, I hope they're lifted without any more delay. It's past time.
- Reaction score
- 0
- Points
- 410
Am sure that the personnel in the Pension PMOs office are trying to do their best but have this strange feeling that it always "could be better"... but for all members sake, I would suggest that someone gets his A#$ in gear and get the program out to the troops ASAP.
IMHO, delaying the introduction of this program will only result in bitterness and in the long run, there will be a rash of retirements that the CF cannot afford.
Let them put into documents a provision for continual improvements and get it out
IMHO, delaying the introduction of this program will only result in bitterness and in the long run, there will be a rash of retirements that the CF cannot afford.
Let them put into documents a provision for continual improvements and get it out
- Reaction score
- 1,401
- Points
- 1,160
The latest as of this AM, is that the Minister has yet to be briefed (he is busy, and out of Ottawa often - this is not the most important item on his agenda!!). The delay will be possibly one year as ADM (Fin CS) is not ready. The Minister could authorize manual calculations, but the admin cost would be prohibitive, and you can bet it is not recommended by the staff. The past and current Project Directors and their staffs have worked very hard to get this for us. Negotiations with Treasury Board where hard fought. Apparently ADM (HR Mil), Adm Jarvis has previously stated that it will be effective 1 Jan 06 even if it has to be done manually. So, they are on our side. Unfortunately, this project is taking too long, far to long. If it was ASD to say Great West Life, whose CEO is the Hon Col of The Royal Winnipeg Rifles, how long would it take? This should have been resolved 19 years ago when the govt brought in universal access to pensions, retro to 1981, for all employed by the Government of Canada. For whatever reason, only the Reserves were left out. I personally do not think that was accidental, it could be incompetent though. Well may be I was incorrect that it will not take 27 1/2 years like the pay did. We are well on the road to that point. We will have to wait until the Minister is briefed before the CANFORGEN is released. I wonder what his decision will be: manually; 3 months to the start of the tax/fiscal year; wait until ADM (Fin CS) is ready? And how do we know for sure that ADM (Fin CS) will ready in 12 months? We don't. This is the government that has brought us the HRDC boondoggle, the gun registry, Adscam, etc, etc. Writing to your MP or the Minister will not do much good as there is less than 20,000 of us scattered across Canada with no political power. People First
- Reaction score
- 1,401
- Points
- 1,160
Do not forget the 7% compound interest we will have to pay on the buyback. Every delay costs more $. If there was will, there would be a way.
- Reaction score
- 0
- Points
- 210
What we can do is submit an Access to Information Request
Ask a simple question like - will it come into effect on 1 Jan - 1 Feb - 1 Mar etc - get 12 guys to ask a different month - then we clip the answers on line here.
My prediction is
February or spring 06
Feb is when they have to have all the Transformation planning done - big log jam breaks - then goodies come out in the coming election - and if they lose - the goodies go back in the bag........
It would seem a no brainer - start in Jan - and do the calculations - any officer qualified on AOC should be able to puzzle it out
Ask a simple question like - will it come into effect on 1 Jan - 1 Feb - 1 Mar etc - get 12 guys to ask a different month - then we clip the answers on line here.
My prediction is
February or spring 06
Feb is when they have to have all the Transformation planning done - big log jam breaks - then goodies come out in the coming election - and if they lose - the goodies go back in the bag........
It would seem a no brainer - start in Jan - and do the calculations - any officer qualified on AOC should be able to puzzle it out
- Reaction score
- 1,401
- Points
- 1,160
They have, I believe, hired 20-25 Public Servants and were training them to do the calculations. It is the computer systems that are not in place( any you know the problems with every new CF computer system). CF or Army Transformation has nothing to do with this. This is strictly an admin procedure. I bet all involved at the upper level got their performance bonus in their pay packet. Incompetence. Non accountability.
- Reaction score
- 1,401
- Points
- 1,160
Reference my previous post with regard to DND computer programs. Here is an example. Do you have confidence that ADM (Fin CS ) will get the Reserve Pension up and running?
Software project to eclipse budget
OTTAWA -- Delays and ballooning costs mean a giant software project at National Defence will eclipse its original budget and won't meet its goals until 2011 -- if at all.
An internal audit obtained by The Canadian Press raises red flags about a new system designed to streamline computer tracking of military inventory and purchases.
Software project to eclipse budget
OTTAWA -- Delays and ballooning costs mean a giant software project at National Defence will eclipse its original budget and won't meet its goals until 2011 -- if at all.
An internal audit obtained by The Canadian Press raises red flags about a new system designed to streamline computer tracking of military inventory and purchases.
