# Pension and CPP



## Newguy1 (12 Apr 2014)

I was wondering, lets say I retire at 52 with the 25 year CAF pension.

Do I still get CPP deductions based on the say 30,000 a year pension I will receive?


----------



## Occam (12 Apr 2014)

No, CPP and EI contributions are only made on employment income.


----------



## Newguy1 (12 Apr 2014)

It's still subject to normal income tax rules or is it considered investment income?


----------



## ModlrMike (12 Apr 2014)

Normal income tax rules apply.


----------



## dapaterson (12 Apr 2014)

Note that the pension consists of two amounts: a base benefit that continues for life, and a bridge benefit that ceases at age 65.


----------



## Rifleman62 (12 Apr 2014)

DAP: 





> Note that the pension consists of two amounts: a base benefit that continues for life, and a bridge benefit that ceases at age 65



What that means, is that at age 65, depending on the amount you are receiving at age 65, your pension will be reduced. 

Your pension will be indexed, depending on YOS, age, etc. At approx $30,000 you can anticipate approx $525 per month bridge benefit reduction. That affects the indexing as your gross has reduced, so there is less to index.

But you can apply for reduced CPP early from age 60, or full at age 65. CPP is indexed. At age 65 you will apply for OAS which is indexed. All indexing is the same % rate from the government. 

I don't know why Reservists who are in the RFPP must take the bridge benefit reduction on the total amount of their pension when Cl A only commenced paying CPP on 1 Jan 07. A reduction on Cl B, Cl B "A", Cl C yes, but not Cl A prior to 1 Jan 07. I have asked my MP that one.


----------



## George Wallace (19 Jan 2016)

A new update to CAF Pensions:

http://www.forces.gc.ca/en/caf-community-pension/military-pension-renewal.page



> *Military Pension Renewal*
> 
> *Canadian Armed Forces Pension Plans Administration Transition*
> 
> ...



Posted here on 2016 01 19


----------



## jollyjacktar (19 Jan 2016)

As much as I hate PWGSC, I wonder if they take over the admininstration of it, will it be sped up any to mirror the PS?


----------



## Good2Golf (7 Nov 2016)

jollyjacktar said:
			
		

> As much as I hate PWGSC, I wonder if they take over the admininstration of it, will it be sped up any to mirror the PS?



Well it couldn't be any worse, JJT.   

I was just informed over the phone by the Specialized Service Division in the PSPC Pension Office that 133 days ago, DND failed to image my pension documents into the electronic system and just sent my paper forms directly to the National Archives without being processed.   

Result:  PSPC - "We're sorry, but you'll have to resubmit your pension forms with the pension package we just sent to you in the mail." 

In fairness to PSPC, they did flag my file and said they will put a hastener on its processing since DND's "non-handover" 1/3 year ago was not my doing.

It's a good thing I got a job after retiring from the CAF... 

_*le sigh*_

G2G


----------



## mariomike (7 Nov 2016)

Good2Golf said:
			
		

> I was just informed over the phone by the Specialized Service Division in the PSPC Pension Office that 133 days ago, DND failed to image my pension documents into the electronic system and just sent my paper forms directly to the National Archives without being processed.
> 
> Result:  PSPC - "We're sorry, but you'll have to resubmit your pension forms with the pension package we just sent to you in the mail."
> 
> In fairness to PSPC, they did flag my file and said they will put a hastener on its processing since DND's "non-handover" 1/3 year ago was not my doing.



That is so fukt. Of all the treads I have read on Milnet, none shock me more than,

Pension and Severance Wait Time  
https://army.ca/forums/threads/120030.0

There should be no - not one day - delay between your retirement date and when you start receiving your pension. It should be like clockwork.
That includes any other retirement entitlements as well.


----------

