CANFORGEN on Pay and PIL

[commander]

Where did you hear this?

official unit brief, so its legit, you can confirm this with your CO. The part about incentivization is my 2 cents but its very obvious

 

[commander]

ndhq had apparently allocated 2 clerks to deal with this and as of last friday it has been increased to 6, nonetheless we are taking about 85000+ claims, and this is not reasonable if you ask me

 

[PiperDown]

my main issue with the second part is that i feel the CF is incentivizing us to choose 50% or lower. All whilst if someone picks 100% and they take 2-3 years to pay, they stand to make millions in interest with our money, yet i see no plan to pass on the revenues.

2-3 years to pay ?  First I have heard this.  We were briefed 4 months.

 

[brihard]

ndhq had apparently allocated 2 clerks to deal with this and as of last friday it has been increased to 6, nonetheless we are taking about 85000+ claims, and this is not reasonable if you ask me

There are four reserve employment positions being advertised (and they have been for some time now) to work in the PIL cell. Those positions are advertised to run until November 2014.

 

[Scoobie Newbie]

I am guessing that regardless of 50 or 100%, those with Reg and Res servi e will still be audited by Ottawa?

 

[commander]

There are four reserve employment positions being advertised (and they have been for some time now) to work in the PIL cell. Those positions are advertised to run until November 2014.

ya that makes sense and fits this timeline we were briefed on.

 

[Nfld Sapper]

Sounds like the same clowns that brought you the Reserve Pension.... :

 

[dapaterson]

So apparently if you choose a partial payment of 50% or less, it is processed locally on your base specifically by the same people that process your pay. Now, in the event you choose 100% pil instead, it is processed at NDHQ and you will receive payment within 2-3 years (and yes you pay taxes only in the actual payment year).

my main issue with the second part is that i feel the CF is incentivizing us to choose 50% or lower. All whilst if someone picks 100% and they take 2-3 years to pay, they stand to make millions in interest with our money, yet i see no plan to pass on the revenues.

now the main question is, is it constitutional for the DND to play revenue with our benefits ? or limit the number of people processing in order to fulfil an internal agenda ? seems the easiest way to resolve this is to have the DND transfer both the funds and authority to another department or independent authority for processing.

The pay cell will process your payout only if (a) you elect 50% or less and (b) your service has only ever been in the Reg F.  This is intended to speed things up where possible while taking a minimal amount of risk.

There is no other department with the capacity to process 100K+ payments, based on a set of business rules that the other department wouldn't understand, and do it faster.  Given the amount that will be paid out the department needs to take proper precautions to ensure it is done correctly.

The government does not make interest on the money.  The government owes hundreds of billions in debt; if the payout takes longer, it means the government may be paying less in interest, but certainly isn't making money.

 

[Eagle_Eye_View]

Also if you are a "complex" case, i.e. Res transferred to Reg or Reg transferred to Res, you will automatically get audited regardless if you chose PIL of 50% or less. Therefore expect 2-3 years before receiving payment.

 

[Scoobie Newbie]

Lets hope your wrong. I fear your not though.

 

[commander]

thanks for the good info dapaterson, hopefully they change how theyre gonna handle this ultimately for the benefit of the members

 

[Loachman]

Welcome to Army.ca, commander.

Please capitalize where appropriate and use proper punctuation.

 

[PuckChaser]

Where did you hear this?

Was briefed to my unit by SISIP recently. They are apparently anticipating that up to 70% will be done locally and any with higher percentage or prior reserve service will go to Ottawa and be audited before issue. The office is undermanned to do all the audits, so they may be easing the burden by having local payments for only partial amounts.

 

[Scoobie Newbie]

When they say they will audit those from Res to Reg would that entail digging out their Res MPRR or going off the information on their Reg MPRR?

 

[PuckChaser]

When they say they will audit those from Res to Reg would that entail digging out their Res MPRR or going off the information on their Reg MPRR?

They didn't specify but I think they're going to pull from RPSR to get correct service dates and determine if there was a break in service.

 

[ARMY_101]

Rumour from our RSM as of today is that the severance pay will also be allowed to be deposited into TFSA's without withholding tax at the source (same as the RRSP exemption).

Here's how it will work (for the RRSP exemption as well as TFSA's if that's correct):

- Apply for exemption from withholding tax at the source
- Army sends you all of your money without tax being deducted
- You must prove to the army/CRA that all of your money went into an RRSP or TFSA
- If proof of this is not provided, you will be taxed on the amount you were initially given tax-free

Quite the sketchy process to give all the money tax-free to the members and trust that they'll put it all into an RRSP  >

 

[dapaterson]

Your RSM is wrong.  TFSAs have after tax income deposited into them.  If you want to put money into your TFSA, income tax will be withheld at source.

RRSP direction is already out; the admin instructions are posted to the DWAN and I believe to the internet as well.

Theonly difference between what you wrote and the actual policy is that once you complete and submit the paperwork you do not have to prove to the CF that you put it into an RRSP; come income tax time, if you didn't, you'll be on the hook for al tlhe taxes that were not withheld at source.

 

[commander]

i truly hope that in the event of war we receive the message and orders in a clearer fashion than this, as chaos knows no leadership yet at the same time answers to no one.

 

[Ostrozac]

Does anyone have a good definition of "release"?

I have crunched my own personal numbers, and I will not be cashing this out "immediately" -- but I am trying to financial plan when I will be getting my severance pay. I used to be in the Primary Reserve, and after I retire from the Regular Force I fully intend on returning to the armory floor. So let's say I have 20-odd weeks of severance coming to me on release. Do I get that sum when I retire from the Reg Force, and component transfer back to the PRes, or is it deferred until I eventually get out of the Primary Reserve? So will it be paid at my substantive rank in the Reg Force, or at my later substantive rank in the P Res?

The CBI says:

"204.40(7) (CFSP — Entitlement) A member is entitled — on the day before the member ceases to serve in the Regular Force or in the Primary Reserve — to CFSP..."

Which I can interpret either way. Your last day in the reg force is the day you cease to serve in the reg force. But it is not the day you cease to serve in the reg or reserve force.

 

[ARMY_101]

Does anyone have a good definition of "release"?

I have crunched my own personal numbers, and I will not be cashing this out "immediately" -- but I am trying to financial plan when I will be getting my severance pay. I used to be in the Primary Reserve, and after I retire from the Regular Force I fully intend on returning to the armory floor. So let's say I have 20-odd weeks of severance coming to me on release. Do I get that sum when I retire from the Reg Force, and component transfer back to the PRes, or is it deferred until I eventually get out of the Primary Reserve? So will it be paid at my substantive rank in the Reg Force, or at my later substantive rank in the P Res?

The CBI says:

"204.40(7) (CFSP — Entitlement) A member is entitled — on the day before the member ceases to serve in the Regular Force or in the Primary Reserve — to CFSP..."

Which I can interpret either way. Your last day in the reg force is the day you cease to serve in the reg force. But it is not the day you cease to serve in the reg or reserve force.

Release = when you're completely out of the CF; not with the Primary Reserves, Rangers, CIC, or Supp Res.