I just turned 65. I was in the CF for 25 years and the Public service for 13 years. I am receiving small pensions for both of these careers. The government is now going to give me OAS and take away over 700.00 a month from my other pensions. What a rip-off. I wonder why this doesn't apply to our Honorable Members of Parliament who only need to be MP's for 5 years and they get a pension. Do they get theirs clawed back when they're 65. What do you think?????
Pension Clawbacks
- Thread starter neons65
- Start date
When I turned 65 I lost $500 a month from my company pension plan....or just about the equivalent of OAS after taxes, but in my case some people might call it claw back....but actualy From the time I took early pension to when I turned 65, I was getting an extra 500 package called "Bridging" ...something that was negotiated for people taking their pension before reaching the mandatory age of 65...
Are you sure that this is not what is happening to you?????
The government didn't take it away from me, the company just quit giving it to me:smile:
This is becoming a huge issue all over. There are discussions in the US right now about removing medicare/medicaid from all those who are under 54. Social security looks like it may be greatly reduced or even ended for these people too. In Canda the CPP/OAS are at levels where seniors can't exist and look to get worse instead of better.
I would suggest the the cutbacks be aimed at those that have run these programs into the ground instead of the generations coming up. The tail end of the boomers and Gen-X have paid into these programs our entire lives and will likely not benefit from them while those who mismanaged the programs continue to reap the benefits.
I would suggest the the cutbacks be aimed at those that have run these programs into the ground instead of the generations coming up. The tail end of the boomers and Gen-X have paid into these programs our entire lives and will likely not benefit from them while those who mismanaged the programs continue to reap the benefits.
It adresses the title of the thread. I think you previous post adresses the OP and is most likely quite accurate.
Yup and I had heard about military and RCMP pension with a "Bridging" or clawback...
here is the link....
2009-05-01 Update Pension Claw Back at Age 65
it is all a matter of perspective. you say that you lost $500 a month, but the only reason you were getting it was to act as an early retirement bridge until cpp kicked in.
OAS is another one, once you start collecting it, you can't stop it from coming. Some people and some plans use the OAS as a bridge, but eventually when all pensions kick in, you start getting hit with a clawback. I wouldn't worry about a clawback because it is always less than the full amount. ie you would not want to advise someone not to collect OAS in order to aviod a clawback, because even if the clawback 80%, you are still ahead of the game by collecting it.
In fact, if you are collecting OAS, you might want to put all of it directly into a spare bank account and use it towards clawbacks and taxes.
OAS is another one, once you start collecting it, you can't stop it from coming. Some people and some plans use the OAS as a bridge, but eventually when all pensions kick in, you start getting hit with a clawback. I wouldn't worry about a clawback because it is always less than the full amount. ie you would not want to advise someone not to collect OAS in order to aviod a clawback, because even if the clawback 80%, you are still ahead of the game by collecting it.
In fact, if you are collecting OAS, you might want to put all of it directly into a spare bank account and use it towards clawbacks and taxes.
I think defined benefit plans, especially for government employees, should be eliminated. Make them all defined contribution plans.
You are preaching to the converted here,:smile: A few months before retiring I attended a seminar that explained everything such as the option of taking CPP at 60 or 65 and the break even age being 77 meaning that taking a reduced pension at 60 the total received at 77 would be the same as taking the full pension at 65.
Both my wife and I went for a complete physical a few months before just in case one of us would have some kind of terminal disease or something which would determine what kind of split I would take for survivor benefit . The pension We had offered a wide range of options
You have been sucking on the government tit for 38 years, nearly an entire working career and yet you want more?
The reason for the claw back is in the Military we did not pay the Full - CPP amount - it was split between our Military and CPP pensions - Thus the claw backs - this has changed somewhat where due to increases and changes in the plan the claw back will be reduced in years after 2011 or 2011 - not sure but it is close.
Regardless you are ahead of the game dollar wise as you did not pay the same amount, percentage based as John Q Public. That is if you started drawing you CPP at age 60.
Now a few question - a 25 year Military pension was automatically increased for inflation using the magic 85 formula - so at age 55 being the earliest - no later that age 60 - your pension increased substantially
next 13 years a a civil servant another pension
Pension at age 65 - Makes me wonder what you are carrying on about - lastly - every briefing on retirement that I attended explained this would happen. Did you attend any of these.
For CPP, before when the 0.05% per mo rule applied;
Age 60 vs 65, the trade off age was about 75/77 years of age.
At Age 65 vs 70, the trade off age is about 83 years of age. Meaning once you turn 83, you begin accumulating more more than the guy who started his pension at 65 years old.
Now that they have changed this 0.05 % per mo rule to something like 0.08%, the age of 83 will now go down to around 81 yrs of age.
These are good numbers !!
Let me just clarify, if a person starts his pension at age 70, he will be accumulating more money after he turns 80, than the guy who starts his pension at age 65.
Before he turns 80, the guy taking his pension at age 65 will be ahead.
Starting in 2012 the numbers change. if you start at age 60 - 1st month the penalty is 36% - not 30 as it was.
Umm, I'm not sure of the new discounts.
It used to be 0.05% per mo x 12 mo = 6 % per yr X 5 yrs = 30 % ,,as you indicate above.
It changes this or next year -i think 2012 - though not positive. Not sure but it is on their web site. With the changes you no longer have to take a month off or not have a certain income based over two consecutive months - the income level is quite low for those 2 months.
The government loves its armed forces they will do anything to get you to join
they just don't want to pay you when retirement comes. It was the same with
my dad after WWII and it wasn't until near the end of his life that they paid him
any attention. Government employees negotiated pensions in a fair and
equitable manner, and the government is expected to live up to a contract.
As of politicians getting pensions it is not five years as many believe. The
MP must win two elections and serve two terms in the House. Now if there is
a minority government and you have two elections in five years that is a different
matter.
Besides people whine about the pensions and their is a group that has people
focused on that. and while everyone is, they don't see the real problems facing
us as Canadians. Why is it that, we don't jump up and down when the government
gives its friends billions in tax breaks and then hands the bills to consumers and the
middle class? The pile up huge debt, and deficits and at the same time create
more loop holes for their business friends to put money in their pension fund at the
expense of your pension.
I will turn 65 next month and I know I won't be better off and I have resigned myself
to that a long time ago. After all we are dealing with two major problems in this
country. One we have a sneaky underhanded government, that includes all parties
that have come and gone Federally and Provincially. The other half of the equation
is made up of ill informed voters and citizens, that can't seem to find or focus on the
real problems, facing us. No you can't fool all the people all the time that is why they
are so good at playing people off against each other.
they just don't want to pay you when retirement comes. It was the same with
my dad after WWII and it wasn't until near the end of his life that they paid him
any attention. Government employees negotiated pensions in a fair and
equitable manner, and the government is expected to live up to a contract.
As of politicians getting pensions it is not five years as many believe. The
MP must win two elections and serve two terms in the House. Now if there is
a minority government and you have two elections in five years that is a different
matter.
Besides people whine about the pensions and their is a group that has people
focused on that. and while everyone is, they don't see the real problems facing
us as Canadians. Why is it that, we don't jump up and down when the government
gives its friends billions in tax breaks and then hands the bills to consumers and the
middle class? The pile up huge debt, and deficits and at the same time create
more loop holes for their business friends to put money in their pension fund at the
expense of your pension.
I will turn 65 next month and I know I won't be better off and I have resigned myself
to that a long time ago. After all we are dealing with two major problems in this
country. One we have a sneaky underhanded government, that includes all parties
that have come and gone Federally and Provincially. The other half of the equation
is made up of ill informed voters and citizens, that can't seem to find or focus on the
real problems, facing us. No you can't fool all the people all the time that is why they
are so good at playing people off against each other.
Yeah, it's probably all on the website, I thought they were phasing it in over the next few yrs. I think in this transition period, they have complicated the rules a lot !!
One more area where you get a better deal in the US.
Military retirement pay in the US is never reduced by any other pension program that you are in. If you do go to work for the Federal government, as soon as you complete one year of actual service, you are credited with all of the time that you spent in the military, meaning that you are treated as if you had actually worked for the government for 21 (or more) years. This means, if layoffs occur, you are protected by your longevity.
When you retire from the civil service, you will receive a Civil Service pension and your full military retirement pay. The ONLY program that is reduced in the US is if you are drawing Social Security Retirement benefits and a Civil Service pension. Then, there is a reduction in your civil service pension, but only a portion of it is taken.
Retirement from corporations/companies has absolutely no effect on military retirement or Social Security. I personally know people that draw the maximum from Social Security, draw a very large pension from their work, and they get well in excess of $100,000 a year. That of course does not count any investment income, savings, etc.
Retiring early in the US permanently reduces your monthly Social Security and Pension income from most companies (and from the Civil Service). There is no "bridge" involved.
Military retirement pay in the US is never reduced by any other pension program that you are in. If you do go to work for the Federal government, as soon as you complete one year of actual service, you are credited with all of the time that you spent in the military, meaning that you are treated as if you had actually worked for the government for 21 (or more) years. This means, if layoffs occur, you are protected by your longevity.
When you retire from the civil service, you will receive a Civil Service pension and your full military retirement pay. The ONLY program that is reduced in the US is if you are drawing Social Security Retirement benefits and a Civil Service pension. Then, there is a reduction in your civil service pension, but only a portion of it is taken.
Retirement from corporations/companies has absolutely no effect on military retirement or Social Security. I personally know people that draw the maximum from Social Security, draw a very large pension from their work, and they get well in excess of $100,000 a year. That of course does not count any investment income, savings, etc.
Retiring early in the US permanently reduces your monthly Social Security and Pension income from most companies (and from the Civil Service). There is no "bridge" involved.
Hi there, I am not military retired, RCMP retired but I did have 30 years with DND. I left w a heart attack, and had my disability pension clawed bacl also. As it stand I have have literally paid out $140,000 to the insurance compant and PSSA. Looking back, I made the required premium payment for my pension, health insurance, as well as CPP. I can collect my health benefits but, PSSA takes away my CPP disabilty.Does anyone believe this is right.?
I agre with some of the military vs government access to pensions, however it is not a level playing field. The military has won its case in court, but there is no one to fight for the prison guard who gets disabled in a prison, or what ever. John Q public is a different type of employee and doesn't have the same protections as the military. The unions CANNOT negotiate for the public because the PSS Act disallows it. The Canadian Bill of Rights 62.2 strips the rights from people paying into registeed pnsion plans. If a member of the public gets disabled, or a public servant gets diabled, they are refuse the protctions they have psid for. The are no entitlements, but if you have paid the premiums demanded, the the inome should be there if you need it. If you buy car insurance andsmash up you car, then any normal person would expect more than a wheel and hubcap.