Alot of misconceptions with the IE25 amongst newbies

[misratah500]

I'm currently on the IE20 and will retire at 38 with 40% annuity. This is my case. But what I hear ALOT from my new apprentices and technicians who joined after the IE 25 came out. Is they are under the impression that:

A. They do 25 years (obviously)
B. Cannot collect their annuity till 55 years of age.
C. If they have broken service, they have to do 25 years continuous to collect their annuity.

Please tell me only A is correct. I've met several OS-LS that are saying all three or mix off and I want to set the record straight.

Why would this lie even be perpetuated.  The military didn't lose it's immediate annuity with the IE25 did it?

 

[Biohazardxj]

A. True
B. False (You collect pension when you retire.  If an IE25 has been signed and you release prior to 25 continuous years then your pension is reduced and there are penalties applied.)
C. True (The extra qualifying time above and beyond the 25 years does apply toward the final pension amount is that time was bought back.  IE: did 5 years got out.  Got back an completed an IE25 then your pension will be 30 years worth)

 

[captloadie]

RMS - You might want to check the policy reference your answer to B. You only get an immediate annuity now if you complete 25 yos (for newbies). If you do 3-24 years, my understanding is you still earn the 2% per annum, but only can start collecting at 55. I also believe that you can only get a return of contributions up to the 2 year mark. After that you either wait, have it rolled into another register plan (PS, OPP, etc.) or a locked in to RRSP.

 

[Diamond]

http://www.forces.gc.ca/en/caf-community-pension-reg-post-march-2007/career-events.page?#s2releaseia

A. Not necessarily, the pension website (link above) depicts several possibilities in which a member could receive an IA without 25 yrs complete, such as they;
•are age 60 with at least two years of pensionable service;
•are age 55 with 30 years of pensionable service;
•have 10 years of pensionable service and are released due to disability; or
•are involuntarily released due to a reduction in the Canadian Armed Forces and either: ◦have 20 years of pensionable service; or
◦are age 55 or older with 10 years of pensionable service.

B. If they joined at age 30 with no previous service, then 55 is likely the earliest age for an IA, granting that none of the scenarios from option A are involved.

C. From the link above there is no mention of continuous service only 9131 days of CF service. A point further clarified in CANFORGEN 036/07 which states, "THEY HAVE COMPLETED NOT LESS THAN 25 YEARS OF PAID CANADIAN FORCES SERVICE (9,131 DAYS). BOTH REGULAR FORCE TIME AND RESERVE FORCE TIME CAN BE COUNTED AND TIME IS CUMULATIVE NOT CONSECUTIVE."

Misratah, It only took a couple of minutes to put together the above info, but I've spent a fair amount of time in the past researching the rumors you're trying to dispel and have yet to come across anything that would lend any truth to them. I find the best way to "set the record straight," is by having first hand info and not rely on the memories of my colleagues. If you pass on anything to the OS-LS bunch, having first hand info would go a lot farther than the info above.