Ruby – Alleged Wicked Witch of Nannies

[Goober]

VanIsle, Old Age security is subject to clawback, CPP is not. In that respect, CPP is a true entitlement, you get strictly based upon what you contributed.

OAS is more based upon need. I think it is linked to the income, greater the income, less you get (at a certain income it disappears altogether).

Your husband’s pension is income and as such is subject to OAS clawback. Same way, wealthy people have sufficient income so that they don’t receive any OAS, it is all clawed back. I think only the truly needy get the full OAS.

There are ways to maximize one’s OAS benefits, financial experts can help in this respect. But the point is, your husband is not the only one, almost everybody is subject to some OAS clawback. In CPP of course, there is no clawback.

SJP

Please read the link - Vanisle is correct - just the wording is off. Military and RCMP are subjected to a clawback that no other citizen is subject to. Really fair minded eh?
Military Benefits Page - 05, "Military Pension And RCMP Pension Claw back Campaign Latest Up-dates".

 

[DaSleeper]

More on this...

3) Why does my RCMPSA pension reduce at age 65?

The RCMP pension plan is integrated with the Canada and Quebec pension plans (CPP/QPP). Integration affects both contributions and benefits. When the CPP and QPP came into effect on January 1, 1966, the federal government, like most Canadian employers offering a pension plan for their employees, decided to integrate contribution rates under the new CPP/QPP with federal employee pension plans, including the RCMPSA. It did so rather than having employees pay full CPP/QPP contributions in addition to full RCMPSA contributions .

This means, firstly, that you contribute to your RCMP pension plan at a reduced rate of 4 % on your salary up to the maximum covered by CPP/QPP of $41,100 in 2005. Secondly, it means that your pension benefit under the RCMP pension plan will also be reduced by a standard formula when you become eligible to draw CPP/QPP benefits at age 65 or when you begin to draw CPP/QPP disability benefits at any age.

4) How is the CPP/QPP integration reduction calculated?

The reduction in your RCMP pension is based on the number of years of pensionable service to your credit under the RCMP pension plan and on the average maximum pensionable earnings (AMPE) under the CPP or the QPP, YMPE for the year of your retirement and the four preceding years. If the average of your pensionable earnings for the same years was below that amount, this lower average will be used to calculate the reduction.

SOURCE ]
What every cadet should know when they sign up.....

Very similar to my "Bridging"

 

[TenPenny]

"This means, firstly, that you contribute to your RCMP pension plan at a reduced rate of 4 % on your salary up to the maximum covered by CPP/QPP of $41,100 in 2005. Secondly, it means that your pension benefit under the RCMP pension plan will also be reduced by a standard formula when you become eligible to draw CPP/QPP benefits at age 65 or when you begin to draw CPP/QPP disability benefits at any age."

So, you contribute at a reduced rate, and then the benefits are reduced when the CPP kicks in.

You contribute less, and receive less.

 

[Goober]

"This means, firstly, that you contribute to your RCMP pension plan at a reduced rate of 4 % on your salary up to the maximum covered by CPP/QPP of $41,100 in 2005. Secondly, it means that your pension benefit under the RCMP pension plan will also be reduced by a standard formula when you become eligible to draw CPP/QPP benefits at age 65 or when you begin to draw CPP/QPP disability benefits at any age."

So, you contribute at a reduced rate, and then the benefits are reduced when the CPP kicks in.

You contribute less, and receive less.

I believe that contribution level was changed a number of years ago.