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Allowances - Post Living Differential (PLD) [MERGED]

Sub_Guy

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Anyone have any idea when these are supposed to come out?  The date always seems to get pushed back, then we either end up paying back money or getting a big bag O'cash..
 

zeke_wpg

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Don't hold your breathe, the math required to obfusicate the process is mind numbing.

Calgary = $86.00 ??
 

zeke_wpg

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How is Post Living Differential calculated?
Each year during the February to March timeframe, the PLD rate at each Canadian Forces location is reviewed based on the following information:

The latest Statistics Canada information on family spending patterns;

Canada Mortgage and Housing Corporation (CMHC) data on typical hosing types;

National Defence data on the military population at each place of duty. A location with a higher number of military personnel will have a larger impact on the local economy than a location with a lower Canadian Forces population. For example, Ottawa compared to Moncton; and

Actual cost of living data in a wide variety of categories at all places of duty in Canada. Examples of these categories include: total annual cost of transportation; household / renter insurance costs; the cost of utilities; and various goods and services like the cost of food and medical care.

Since these factors can sometime fluctuate from year to year, a three-year average has been adopted to ensure any radical variations do not have a large impact on the Canadian Forces members in that area.

PLD is a taxable benefit. As a result, an increment is added when calculating the rates to offset the income tax paid on the allowance. This means that the allowance is increased by the amount of marginal tax to allow for loss through taxation.

Once the data has been compiled, changes to the PLD amount for each location are calculated by May. By June/July the new figures are entered into the Canadian Forces pay system and the changes are announced to the military members and their families. By July/August, Canadian Forces members will see the changes to PLD on their monthly pay statements
:cdn:
 

Shadow Cat

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Somebody that I know that is stationed in Shearwater was infomred yesterday that the PLD for Halifax is going upt to $380.  Does anyone know if this is true or not?
 

George Wallace

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It would be much more reliable news if DH went to the OR and asked the Fin Clerk for the news, than to hear it here.
 

Gunner

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CANFORGEN 138/05 ADM(HR-MIL) 066 011703Z SEP 05
STATUS OF POST LIVING DIFFERENTIAL (PLD) - 2005
UNCLASSIFIED

THE PURPOSE OF THIS MESSAGE IS TO PROVIDE AN UPDATE TO ALL CF MBRS ON THE STATUS OF THE ANNUAL ADJUSTMENT TO PLD RATES

PLD IS A BENEFIT PAID TO MBRS BASED ON THE DIFFERENCE BETWEEN THE COST OF LIVING IN ANY GIVEN PLACE OF DUTY AND THE NATIONAL WEIGHTED AVERAGE COST OF LIVING. THE CF NATIONAL WEIGHTED AVERAGE IS UPDATED ANNUALLY AND IS BASED ON THE COST OF LIVING AT EACH OF THE LOCATIONS WHERE CF MBRS SERVE IN CANADA

ALL THE INFORMATION REQUIRED TO DETERMINE THE AMOUNT OF PLD PAYABLE AT EACH LOCATION IS NOT YET AVAILABLE. I ANTICIPATE THAT THIS INFO WILL BE AVAIL IN THE NEAR FUTURE AND THE PLD ADJUSTMENTS WILL BE ANNOUNCED IN OCT 05

THIS MSG IS TO BE GIVEN WIDEST POSSIBLE DISTRIBUTION
 

Gunner

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ON Toronto(1) 1237 928
ON Toronto(2) 749 562
ON Toronto(3) 682 512
ON Toronto(4) 946 710
ON Toronto(5) 1130 848

The notes (1 through 5) denote different areas of Toronto that you may reside.

The two amounts are for full (ie the larger number) and part (ie the smaller number).

The Post Living Differential (PLD) final methodology includes the following elements:

1. The intent of PLD is to stabilize the overall cost of living of CF members and their families residing in Canada to a maximum not exceeding the weighted average CF cost of living, namely the difference between the weighted average CF cost of living and the cost of living in the PLD area.

2. A PLD area is, as determined by DND in examining local circumstances, a location within the boundaries of a CF place of duty in Canada and may include a zone within a large metropolitan region (e.g., Vancouver, Toronto, Montreal and environs).

3. The cost of living will be based on a representative CF household defined as:

gross household income based on the weighted average Corporal salary and a representative CF spousal income derived from the latest available Canadian census data. The most recent available data is from the 1996 Census and establishes the CF spousal income, on average, at approximately $1000 per month in year 2000 dollars;
family size as determined from the CF personnel records or periodic surveys of CF members. Current representative family size of three persons is derived from the 1998 CF Household Survey; and
the proportional distribution of homeowners versus renters as determined from CF personnel records or periodic surveys of CF members.

4. The household expenditure pattern, including the category weightings, will be based on the Canadian average for a household of similar income and family size, as described in the Statistics Canada Family Expenditure Survey (FAMEX).

5. Cost of living differences will be determined by the pricing of a representative selection of the items in the FAMEX and any additional items determined by DND as being necessary to meet the CF requirement. As a minimum, the data collected and representative items priced will provide sufficient indication of spatial differences in expenditure by the representative household in the following categories:

income tax - the total combined federal and provincial income tax paid annually;
transportation - total annual cost;
rent for renters and mortgage interest for homeowners;
property (real estate) tax for homeowners;
home maintenance cost for homeowners;
household/renter insurance;
utilities;
goods and services, to include:

(1) food items (consumed at home and away from home);
(2) clothing;
(3) household items, including furniture;
(4) personal care;
(5) medical and dental care;
(6) domestic services, including child-care;
(7) recreation; and
(8) alcohol and tobacco.

expenditure on sales tax, if not included in the pricing of relevant items; and
miscellaneous items, to include expenditures not included elsewhere (e.g., education costs and lotteries) and savings and investments.

6. Homeowner costs will be based on:

the home size indicated by the Canadian average expenditure profile;
home purchases for the last 12 months (12 months may be expanded for locations where there is insufficient real estate market activity for meaningful analysis);
the rolling average interest rate for a five-year closed mortgage; and
a 20% down-payment.

7. PLD rates will be calculated annually using the current three-year rolling average and the CF weighted average, computing the differentials between location costs and the CF weighted average, and adding an increment to offset the income tax paid on the PLD allowance. Data will be collected in the January to April period with rates calculated in May and entered into the pay system in and announced in June. New rates will be implemented to coincide with the approved posting season (July/August) with the tentative effective date of 1 July.

8. The income tax increment included in the calculated PLD rate will be based on the estimated marginal tax determined from using the second from lowest federal income tax rate, published by CCRA, combined with the associated provincial tax rate excluding grants or surcharges.

9. With the incorporation of the three-year rolling average (Para 7 above), and the approval of the final methodology, the PLD rate cap imposed on higher cost of living areas is no longer necessary and is, therefore, removed.

10. A reduced PLD of 75% will be paid to a member sharing a principal residence with another CF member who is entitled to PLD.

11. Where warranted, the Minister of National Defence may prescribe measures to maintain programme affordability.



 

Sub_Guy

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1.  THE PURPOSE OF THIS MESSAGE IS TO ANNOUNCE REVISED PLD RATES
FOR 2005.  AS PROMULGATED AT REF A, SPECIAL REPRESENTATION TO TBS
WAS NECESSARY TO LIFT THE CAP ON PLD EXPENDITURES FOR THIS YEAR.  TB
APPROVAL HAS BEEN OBTAINED AND HAS RESULTED IN NEW RATES FOR 2005
2.  BASED ON THIS YEAR S CF COST OF LIVING (COL) SURVEY, SOME LOCNS
WILL SEE PLD RATE INCREASES AS THEIR LOCAL COL HAS RISEN ABOVE THE
CF NATIONAL WEIGHTED AVERAGE. THESE INCREASES ARE EFFECTIVE 1 OCT 05
AND WILL BE PAID AT END OCT PAY.  CONVERSELY, OTHER LOCNS WILL SEE
PLD RATE REDUCTIONS AND SOME WILL CEASE TO BE ENTITLED, AS THEIR
PAGE 2 RCCLHAV6007 UNCLAS CANFORGEN
LOCAL COL HAS MOVED CLOSER TO OR BELOW THE CF NATIONAL WEIGHTED
AVERAGE.  REDUCTIONS AND CESSATIONS FOR THESE AFFECTED LOCNS WILL
TAKE EFFECT 1 JAN 06
3.  ACCORDINGLY, THE FOLLOWING ARE THE REVISED PLD RATES  (READ IN
FOUR COLUMNS: LOCATION/FULL PLD RATE/SEVENTY-FIVE PERCENT RATE/EFF
DATE):
ALDERGROVE/190/143/1 JAN 06
BORDEN-BARRIE/86/65/1 JAN 06
BRANTFORD/113/85/1 JAN 06
CALGARY/21/16/1 JAN 06
CAMBRIDGE /84/63/1 JAN 06
CHATHAM/0/0/1 JAN 06
CHILLIWACK/0/0/1 JAN 06
CORNERBROOK/83/62/1 OCT 05
DUNDURN-SASKATOON/0/0/1 JAN 06
GANDER/0/0/1 JAN 06
GRAND FALLS-WINDSOR/133/99/1 OCT 05
GUELPH/245/183/1 JAN 06
HALIFAX/374/280/1 OCT 05
HAMILTON/347/260/1 OCT 05
PAGE 3 RCCLHAV6007 UNCLAS CANFORGEN
KAMLOOPS-KELOWNA/68/51/1 JAN 06
KENORA/0/0/1 JAN 06
KINGSTON/16/12/1 JAN 06
KITCHENER//170/127/1 FEB 06
LONDON/46/34/1 JAN 06
MEAFORD-OWEN SOUND/0/0/1 JAN 06
MONTREAL - NORTH SHORE/495/371/1 OCT 05
MONTREAL - SOUTH SHORE/404/303/1 OCT 05
NANAIMO/6/4/1 JAN 06
NIAGARA-ST CATHARINE/174/130/1 JAN 06
NORTH BAY/6/4/1 JAN 06
OTTAWA-GATINEAU (NCR)/196/147/1 OCT 05
PETERBOROUGH/68/51/1 JAN 06
PRINCE ALBERT/0/0/1 JAN 06
QUEBEC CITY-VALCARTIER/189/141/1 OCT 05
ROUYN-NORANDA/0/0/1 JAN 06
SARNIA/0/0/1 JAN 06
SAULT STE MARIE/0/0/1 JAN 06
SEPT-ILES/112/84/1 JAN 06
SHERBROOKE/0/0/1 JAN 06
PAGE 4 RCCLHAV6007 UNCLAS CANFORGEN
SHILO/0/0/1 JAN 06
ST JOHN S/308/231/1 OCT 05
ST-HYACINTHE/24/18/1 OCT 05
ST-JEAN-SUR-RICHELIEU/0/0/1 JAN 06
STRATFORD/206/155/1 JAN 06
SUDBURY/0/0/1 JAN 06
THUNDER BAY/0/0/1 JAN 06
TIMMINS/0/0/1 JAN 06
TORONTO - AREA 1/1586/1189/1 OCT 05
TORONTO - AREA 2/669/502/1 JAN 06
TORONTO - AREA 3/542/407/1 JAN 06
TORONTO - AREA 4/1005/754/1 OCT 05
TORONTO - AREA 5/1377/1032/1 OCT 05
TRAIL/0/0/1 JAN 06
VANCOUVER/517/387/1 JAN 06
VICTORIA-ESQUIMALT/464/348/NO CHANGE
WINDSOR/331/248/1 OCT 05
WINNIPEG/0/0/1 JAN 06
 

Tigs

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too bad Winnipeg went down... seems like the cost of living for everything has gone up. Rent is $50 more, groceries have gone up, gas has gone up and utilities have gone up by an insane amount.  What can ya do!
 

Springroll

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Well we just checked hubby's pay statement and our PLD was not increased for end Oct. It is still sitting at $182.
I thought it was to be on the end Oct pay?
Is there any particular reason why it would be not updated on the pay statement?

 

Inch

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Springroll said:
Well we just checked hubby's pay statement and our PLD was not increased for end Oct. It is still sitting at $182.
I thought it was to be on the end Oct pay?
Is there any particular reason why it would be not updated on the pay statement?

Did you check the end Oct pay statement or the mid Oct pay statement? It won't be on the mid Oct pay statement since those came out the first week of Oct and the PLD increase happened after. It's on my end Oct pay statement, a little over $100 after taxes.
 

BOSNwife

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Springroll said:
Well we just checked hubby's pay statement and our PLD was not increased for end Oct. It is still sitting at $182.
I thought it was to be on the end Oct pay?
Is there any particular reason why it would be not updated on the pay statement?

Yes, That its the correct PLD Pay for Halifax area. End-Oct Pay $182 + Mid-Oct Pay $192= $374 PLD for the month of Oct. You got it all; same as us.
 

Springroll

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I see the math, but since when do they start dividing up the amounts per pay?
Wouldn't the total amount just be lumped into your monthly pay and then divided by 2 from there?
That is how they do it with everything else.

My husband is even confused by this especially considering the date beside the PLD amount on there is 05-10-01. ???

I haven't found hubby's mid Oct pay statement yet, but when we do, I will see what it says.

edited to add:
we did find his mid sept statement and all it says is PLD $192...no date or anything.
 

Inch

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Springroll said:
I see the math, but since when do they start dividing up the amounts per pay?
Wouldn't the total amount just be lumped into your monthly pay and then divided by 2 from there?
That is how they do it with everything else.

My husband is even confused by this especially considering the date beside the PLD amount on there is 05-10-01. ???

I haven't found hubby's mid Oct pay statement yet, but when we do, I will see what it says.

edited to add:
we did find his mid sept statement and all it says is PLD $192...no date or anything.

Mid month pay drops are done on the 2nd of the month, the PLD increase didn't happen until after the 2nd, so it couldn't be added to the mid-Oct pay. The date beside the PLD amount on the end month statement is showing you what date that is effective from. It was effective from the 1st of Oct, since the pay drop was already made for the mid month pay, they just added the difference onto the end month pay. You'll notice on the end month statement that next to "Current Pay and Allowances" it says "$182.00", I highly doubt that his current pay and allowances is only $182.00. That's because he was already paid for the month which was split up between the two pays, so his end month pay is his closing balance on the mid Oct statement + the PLD increase - taxes on the PLD increase = his end month pay.

The math that BOSNwife showed you is correct.

Clear as mud?
 

shado_wolf

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Hey all,

reference this:
PLD is a taxable benefit. As a result, an increment is added when calculating the rates to offset the income tax paid on the allowance. This means that the allowance is increased by the amount of marginal tax to allow for loss through taxation

does this mean it has already been added to the amounts in the table and that amount will be taxed or that the amount in the table is the amount a member gets after all is said and done.

Thanks all,
Dylan
 

CallOfDuty

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  Hey there guys...sorry to Hi-jack your thread S McPhee, but I just wanted to ask a question.........does anyone know when I will start receiving PLD pay?  Would it be during my NE tech training, or will I have to wait until its over and get posted to a ship?
  Getting PLD and also sea duty allowance will definately help this OS pay the mortgage. ;)
Steve
 
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