New announcement: Pension Contributions Increase: Will Canadian Forces Members Be Able To Opt Out Of The Pension Plan?

Pension Contributions Increase: Will Canadian Forces Members Be Able To Opt Out Of The Pension Plan?

By David Pugliese
Defence Watch
Defence Watch received a CANFORGEN on CF member pension contributions expected to go up. Here is the CANFORGEN I posted earlier today:
CANFORGEN 238/12 CMP 113/12 121812Z DEC 12
REG F PENSION CONTRIBUTION RATES

UNCLASSIFIED…
Source: Pension Contributions Increase: Will Canadian Forces Members Be Able To Opt Out Of The Pension Plan?

CANFORGEN 238/12 CMP 113/12 121812Z DEC 12

REG F PENSION CONTRIBUTION RATES
UNCLASSIFIED

THE GOVERNMENT OF CANADA IS COMMITTED TO KEEPING TAXES LOW AND RETURNING TO A BALANCED FEDERAL BUDGET. BILL C-45 TITLED QUOTE JOBS AND GROWTH ACT, 2012 UNQUOTE WHICH INCLUDES PENSION REFORM INITIATIVES, IS CURRENTLY BEFORE PARLIAMENT. THE ACT CONTAINS PENSION REFORM INITIATIVES FOR THE PUBLIC SERVICE, THE RCMP AND THE CF PENSION PLANS. THE PURPOSE OF THIS CANFORGEN IS TO INFORM CF MEMBERS OF ANTICIPATED INCREASES TO PENSION CONTRIBUTION RATES

AS A RESULT OF THIS LEGISLATION, THE PUBLIC SERVICE PENSION CONTRIBUTION RATES WOULD INCREASE ANNUALLY UNTIL A 50:50 SHARING OF PENSION COSTS BETWEEN PUBLIC SERVANTS AND THE GOVERNMENT IS ACHIEVED. THERE WILL ALSO BE SIMILAR INCREASES IN THE SHARE OF PENSION COSTS PAID BY REG F MEMBERS AND RESERVISTS UNDER PART 1 OF THE CF PENSION PLAN (FULL TIME). RATE INCREASES, WHICH WILL BE THE SAME FOR ALL THREE PLANS, ARE INTENDED TO BEGIN FOR 2013

THE ACT ALSO INTRODUCES AN INCREASE IN RETIREMENT AGE FOR PUBLIC SERVICE EMPLOYEES AND MEMBERS OF PARLIAMENT. THE RETIREMENT AGES FOR CF MEMBERS AND THE RCMP REMAINS THE SAME

A CANFORGEN WITH THE SPECIFIC CONTRIBUTION RATES WILL BE ISSUED ONCE THEY ARE APPROVED BY TREASURY BOARD MINISTERS

SIGNED BY RADM A. SMITH, CMP

But not everyone is happy about this development. I received a number of emails from Defence Watch readers in the Canadian Forces expressing their anger. This one came in from a military member who took issue with Defence Minister Peter MacKay and his continued claims of being concerned for the troops. Here is what that individual writes:

"He's so concerned about his troops but on the very same day, to ensure it won't get any attention, CMP issues the CANFORGEN announcing increases to pension contributions by members of the CF. Essentially a pay cut.Yeah, he's really concerned about our well-being."

And then there is this one:

"Hi David, CF members currently contribute 33 cents for every pension dollar, with the taxpayer contributing the other 66 cents. Public servants, by comparison, contribute 36 cents for every dollar. In either case, this is a fairly hefty payroll deduction. Members are now asking whether they can opt-out of the government's pension plan and invest their money on their own. That would leave individuals with the personal choice to invest their money with their own objectives and risk tolerance, without interference from the government."

To unsubscribe from these announcements, login to the forum and uncheck "Receive forum announcements and important notifications by email." in your profile.

You can view the full announcement by following this link:
http://canadianveteransadvocacy.com/Board2/index.php?topic=7533.0

Regards,
The Canadian Veterans Advocacy Team.