CANFORGEN on Pay and PIL
- Thread starter Pusser
- Start date
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Rhodesian said:
Not quite but close enough....I received 560 bucks more using the actual formula:
"2.4 Calculation of CFSP. The amount of CFSP is calculated by the formula:
(MP* ÷ 30) x 7 x Y
where "Y" is the lesser of:
the number of years of eligible services; and
the difference of (30 - YPB**)
*MP is the monthly rate of pay, on the day before the member ceases to serve in the Reg F or Pres, for the member’s substantive rank, pay increment, and occupation or trade group.
** YPB means years in respect of which any severance benefits were paid or granted to a member under QR&O 16.19, Rehabilitation Leave; QR&O 204.40, Severance Pay; QR&O 204.54, Reserve Force Retirement Gratuity (RFRG); QR&O 204, Financial Benefits and Pay of Military Judges; CBI 204.40, Severance Pay; CBI 204.54 – Reserve Force Retirement Gratuity (RFRG); and CBI 204.40 – Canadian Forces Severance Pay (CFSP)."
I played around with this...if I defer release to the 1 Jan of the next tax year...vice 31st Dec the year before for instance....I save an additional 2k (clear) based on NB rates. A mute point...as I expect to retire at my combined UK/CAN 35 year point (UK pension paid back)...mid year....but still coming to terms with when to call it a day.
I will be happy, if get to protect the 2K per year to 1996.....20K. Unfortunately, I don't have much normal RRSP pension room so a good chunk will still disappear in a puff of CRA smoke.
Pusser
Army.ca Veteran
- Reaction score
- 32
- Points
- 530
My intent is to take part now (or whenever they get around to actually paying it out) and the rest at retirement. The part I'm taking now will be enough to max out my RRSP (i.e. no immediate tax on this partial payment). By the time I retire, the remainder should also be eligible for complete transfer into my RRSP as well (i.e. RRSP contribution room + $2000/yr prior to 1996 + $1500/yr prior to 1989 = enough room to shelter the remainder). In short, my goal is to completely shelter the entire package.
Of course, the way things are going, there is a distinct possibility that my post-retirement income will be very close to my pre-retirement income, so the taxman is going to get it eventually, but what the hey....
The biggest challenge I see is to claim my Reserve service. The package I received the other day gives the date I joined the Regular Force as my enrollment date. Unfortunately, at that time, one did not actually "transfer" form Reserve to Regular. The policy was to release from the Reserve and then immediately enroll in the Regular Force. So, I have no broken service (released effective one day and enrolled effective the next), but I still have some chains to rattle.
Of course, the way things are going, there is a distinct possibility that my post-retirement income will be very close to my pre-retirement income, so the taxman is going to get it eventually, but what the hey....
The biggest challenge I see is to claim my Reserve service. The package I received the other day gives the date I joined the Regular Force as my enrollment date. Unfortunately, at that time, one did not actually "transfer" form Reserve to Regular. The policy was to release from the Reserve and then immediately enroll in the Regular Force. So, I have no broken service (released effective one day and enrolled effective the next), but I still have some chains to rattle.
- Reaction score
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Make sure that you get good financial advice. I'd be curious to know if taking "part now, part later", renders it a Payment in Lieu of Severance (in the eyes of CRA), making it ineligible for RRSP transfer.
Pusser
Army.ca Veteran
- Reaction score
- 32
- Points
- 530
SeaKingTacco said:
Everything I've read so far supports my plan. As I see it, only the part I take now is considered PIL and the rest would be a true severance package and so would be considered "eligible." Nevertheless, it doesn't really matter as my plan won't change. I'm only taking enough now in order to take advantage of my current unused contribution room. The rest will wait until I retire. If I can't use the $2000/$1500 rollover options, I will just have to look at other strategies (i.e. contribution room built up between now and then, retiring early in the year, etc).
- Reaction score
- 4,717
- Points
- 1,160
Letter showed up today, and of course they "neglected" to calculate my reserve service. I have a feeling ORs are going to be handling this headache for a long time.
- Reaction score
- 27,561
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PuckChaser said:
It's been clear from day 1 that ORs will be engaged due to people having interestingly varied career paths in the CF.
Remember, though, if you received RFRG on your transfer to the Reg F, that period of service will not be counted towards CFSP.
The full admin guide is online. DWAN link: http://cmp-cpm.forces.mil.ca/dgcb/dpsp/pdf/english/cfsprld_e.pdf
- Reaction score
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dapaterson said:
What is RFRG?
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Appreciated.
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- 410
I have a similar problem maybe. What exactly does "substantive rank" mean. I have been a MCpl A/L since Jan 2011. I am presently listed as Cpl but since I don't know what substantive means in this case I am not sure if they got it right or not.
Also seems they haven't taken into account my Res time.
Also seems they haven't taken into account my Res time.
- Reaction score
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Appreciated.
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Has there been an estimated time frame on payout for those that choose to have the money now?
- Reaction score
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CountDC said:
Would this include 1 day LWOP? I went from PRes to Reg with out getting out as well but my date of enrolment is listed as when I went Reg.
(Currently on PATA and not close to UOR)
- Reaction score
- 27,561
- Points
- 1,090
If you were A/MCpl on 01 March, you would be paid out as a Cpl, as Cpl is your substantive rank.
- Reaction score
- 1
- Points
- 410
Thank you dapa's, any insight on my last post?
