Reserve Pension- Merged

[CountDC]

That would depend - are you also credit with 5 years of CF Service time? Pension time and Service time can be 2 different numbers.

Here is a link to help:

http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pen/reg-01/ap-ar/ce-csp-eng.asp#rwi-lap

 

[justmyalias]

lol, fine!  hehe-WHATEVER, the one that's important., if you have 5 years thereof.  Does that mean, If you're gung-Ho and sign for the full 25years right from the get-go, you automatically get 5yrs credits, so you only have to do 20 remaining?

Are you saying Pensionable time doesn't impact time needed to serve?  But only the Pension buy-back size, and the ultimate Pension you get?

But Serviceable time does?

What does Pensionable time then bear on??  I remember asking this question 5months ago LOL...seemingly I never really understood it.  Not that it really affects my daily routine frankly.  It's not like I can do anything about whatever qualifying time I have thus far...other than work at increasing it LOL.

 

[Michael OLeary]

If you have five year's service in the Reserves when you Component Transfer, that five years can equate to (please consider all numbers approximate):

a. Five calendar years of service towards your Canadian Forces Decoration (CD), and

b. Pensionable time (which can be purchased) at a rate of 1/4 time for Class "A" service and  1/1 time for Class "B"/"C" service. For example, if you had a total of 12 months full time within that five years, its (4 years Cl "A" x 1/4 = 1 year) plus (1 year x 1/1 = 1 year) equaling 2 years pensionable service that you can buy (or have bought to carry forward).

BUT, that does not equate into cutting time (the five or the two years) off the 25 year contract.

What it means is that you'll get your CD after seven years of Reg F service - 12 years total; and you can retire after 25 years full-time Reg F service with a pension equivalent to 27 years service.

Each and every benefit will be affected differently based on the regulations for award of that benefit - there's no simple single answer to every effect that five years Res F service will have on your career.

(And, since this is off the top of my head, I stand to be corrected by those more knowledgeable of the individual items.)

 

[Celticgirl]

b. Pensionable time (which can be purchased) at a rate of 1/4 time for Class "A" service and  1/1 time for Class "B"/"C" service. For example, if you had a total of 12 months full time within that five years, its (4 years Cl "A" x 1/4 = 1 year) plus (1 year x 1/1 = 1 year) equaling 2 years pensionable service that you can buy (or have bought to carry forward).

Do you have a ref for this?  My CC and I were discussing this very topic today and she insisted that the Class A 1/4 calculation is no longer the way it is done...she says it goes by # of days worked in a year in total, A or B.  I was sure I had read what you just posted not too long ago, but couldn't locate the ref today to show her (and we were too busy to spend much time searching today, to be honest).

 

[justmyalias]

Let me clarify:

Please consider those 5 years as FULL B time.  not A.,

Just for simplicity of calculations and general picture.

/tangent
I'm pretty sure all Reservists know that they're subject to the Code of Discipline from day 1, not whenever they may decide to OT to Regz.  Though for some reason I don't know why-Reg people are taken aback that CD time counts as it does lol.  Like a Reservist is any less prone to breaking the law than they are & as such don't deserve to have their time counted.
/clost tangent.

Your example has explained HOW the buy-back plays into the overall benefit of a full pension.  You work 25yrs, but you've bought back 2yrs so you get a larger Pension of 27years.  Thanks for giving that example!  But you've described an example where Reserve Eligible Pensionable/Service time has not cut the 25years down at all.  For our benefit, could you give an example how it WOULD?  You say 'it depends'.  On what exactly?  Is there a min time needed before which it starts to 'cut time'?  Or what or how plays into that?

 

[mariomike]

Regarding the 25 years mentioned. Plan members may wish to "max-out" pensionable service to 35 years. You will retire with 70 per cent of your pre-retirement income.*

*Based on two per cent of the plan member’s average salary during the best five consecutive years of pensionable earnings times the number of years of pensionable service to a maximum of 35 years.

 

[dapaterson]

The Reserve Force Pension Regulations and Canadian Forces Superannuation Regulations both specify the "new" byback: 1 for 1 for class B and class C service, while class A is credited at 1.4 days per day paid.  (This is to account for the theoretical work 5 days, then 2 days weekend)

If there are no records for a period of time, then the old 1/4 rule is used.

This is only for pension buyback; time creidt for promotion / incentives on transfer is not necessarily done the same way.

 

[Celticgirl]

The Reserve Force Pension Regulations and Canadian Forces Superannuation Regulations both specify the "new" byback: 1 for 1 for class B and class C service, while class A is credited at 1.4 days per day paid.  (This is to account for the theoretical work 5 days, then 2 days weekend)

If there are no records for a period of time, then the old 1/4 rule is used.

This is only for pension buyback; time creidt for promotion / incentives on transfer is not necessarily done the same way.

Thank you for the info.  This is what I have been told - that now with RPSR, you can track how many days you worked so the old 1/4 calculation is not used anymore.  The 1.4 is interesting, though.  In any case, I am glad I will not lose days when I do a buyback.

 

[Rifleman62]

Reminder:

http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pen/reg-01/ap-ar/bbs-rs-eng.asp#cbb-pjr

Regular Force members who enrolled on or after 1 March 2007 - Buying back service

Can I buy back service anytime?

Reserve Force service

No. Once you are eligible to buy back, you have a strict deadline by which you can buy back this service.

Pension Services sends you a letter indicating you are eligible to purchase your previous service. You must buy back before the later of:

    * one year after the date of this letter; and
    * 1 March 2011.

If you miss this deadline, you may lose the right to buy back the previous service.

 

[JMesh]

/tangent
I'm pretty sure all Reservists know that they're subject to the Code of Discipline from day 1, not whenever they may decide to OT to Regz.  Though for some reason I don't know why-Reg people are taken aback that CD time counts as it does lol.  Like a Reservist is any less prone to breaking the law than they are & as such don't deserve to have their time counted.
/clost tangent.

Just to clarify, reservists are not subject to CSD 24/7, as RegF are. They are subject to it only in certain circumstances, the most common being:

• in uniform
• on duty
• on a base

For a full list, see section 60(1)(c) of the National Defence Act.

That said, IMO we're all better off if everyone acts as though they were CSD subject at all times.

 

[justmyalias]

...Plan members may wish to "max-out" pensionable service to 35 years....

ahhhh, I see now the value of the buy-back.  Instead of having 25yr pension, you'd have the benefit of doing tacking on another 10yrs potenailly.  Hmmm, some people who I would've expected an answer from haven't chimed in yet, so I'm wondering if my initial presumption is incorrect.

Question reiterated.  Are there any circumstances where a Reservists who CT's to Regs & signs a 25yr contract-be credited a portion of pension/serviceable time so as to reduce the 25?

I'd like to definitively know yay or nay.

Thanks for the clarification on the CSD.  I'm a little skewed because I'm full time.  It's been many-MMMMany years that I only put on my combats for 3hours a week LOL.

 

[Rifleman62]

Received a reply from the Minister of National Defence, dated 31 Jan 11, as a result of my inquiry to my MP, Stockwell Day, President of the Treasury Board on 30 Jun 10.

Minister Day visited my residence and I briefed him as well as providing detailed hard copy and electronic data. He appeared very surprised at the interest rate etc, and I had a moment of hope.

Well, after the usual seven months delay from the MND, I got the standard letter everyone gets (I have seen several). Word, by word, sentence by sentence.

I requested from Minister Day that I not get the standard letter, which I gave examples of, and was advised that a query from a Cabinet Minister was different from a backbencher: Minister to Minister. Well, BS to that!

None of my questions were addressed, just the standard answer, including "there are no plans to alter these new arrangements".

You as an individual, even if you get to the top (Day) cannot get past the stubbornness of the Public Service who came up with the RFPP, and will defend their actions to the death (mine).

Entrenched:  I may still be wrong, but I'm consistent.

Going back to Minister Day. Not just for me, but all of us.

 

[Stoker]

I have a friend who put his buyback in last year, he just received the letter giving him the final amount. I put mine in well over 3 years ago and haven't heard anything. Are files being processed in order as they were received or are files that are relatively easy to calculate being being processed first?
Just wondering.

 

[Fishbone Jones]

I have a friend who put his buyback in last year, he just received the letter giving him the final amount. I put mine in well over 3 years ago and haven't heard anything. Are files being processed in order as they were received or are files that are relatively easy to calculate being being processed first?
Just wondering.

I believe it depends on your release date. If your on your way out, you'll jump to the front of the line. Not 100% sure on this though.

 

[Rifleman62]

And all the waiting time is at 7% Compound Interest.

If, for example, you have the funds to payoff the buyback in full, then the delay by Pension Services cost you the three years of interest @ 7 % CI.

If you owe more than you have funds for, it cost you the three years of interest @ 7 % CI, plus 6 % CI on what you still owe. If Pension Services was on the ball you would have saved $$, plus 1% CI on the outstanding balance.

Pers who are retiring soon get the priority.

 

[Stoker]

And all the waiting time is at 7% Compound Interest.

If, for example, you have the funds to payoff the buyback in full, then the delay by Pension Services cost you the three years of interest @ 7 % CI.

If you owe more than you have funds for, it cost you the three years of interest @ 7 % CI, plus 6 % CI on what you still owe. If Pension Services was on the ball you would have saved $$, plus 1% CI on the outstanding balance.

Pers who are retiring soon get the priority.

Hopefully it won't take another couple of years in my case. My friend in question is not getting out anytime soon but his buyback is significantly less than mine perhaps thats the reason why he has his processed so fast.

 

[Stoker]

I just got off the phone with the pension people and i'm still in the queue for my final amount. As everybody thought files dealing with simple buybacks and people who are getting out soon are being processed first. Its a bit frustrating waiting so long. I wonder how many workers are actually doing the processing?

 

[Rifleman62]

Without looking it up, I may have been incorrect in my last post re the amount of interest charged.

Once your election is received and processed by Pension Services, you pay 6 % CI on every dollar of the balance you owe from that point.
The 7% CI is charged on the principal amount of the buy back, calculated by year, interest on interest.

If Pension Services advises the amount you owe on your buyback, e.g. $50 k, and you paid that amount immediately, end of story.

But you have will  be charged, and will continue to be charged, at least 6 % CI, on an amount that Pension Services has not given you the opportunity to pay, because PS don't know how much it is! You and others are being penalized.

 

[Stoker]

Nice to know we're not being screwed so much

 

[Rifleman62]

You and others should write a short letter of complaint to your MP, asking why you are being charged interest through no fault of your own.

It may help if the MND got 50 letters or so.

Expect a reply in 6 /8 months though.