Is there a CF pension buyout (not buyback)

[greydak]

A friend of mine told me that there is away to request a pension buyout, I'm just curious if anyone has heard of this?

I plan on getting out of the CF soon and have about 21 months of class "C" time plus 10 years of  reserve service.

I know about the Severance Pay but has anyone heard of how to get the pension we paid into?

 

[Occam]

If you mean "return of contributions", then the answer is yes:

http://www.admfincs.forces.gc.ca/dcf-dsp/rfp-rpf/pp-rp/rfpp-rpfr-eng.asp

 

[REDinstaller]

There is the ability to buy back previous PRes time, as long as it meets the criteria of being Cl C and Cl B at 1 for 1. And Cl A at 4 to 1, this is normally an election to pay out. And my clerks told me it must be paid in full for 3 yrs prior to retirement for it to take full effect. If you have less than 10 yrs in and are looking to play your previous service into a 20 yr pension with out doing 20 Reg yrs, then forget it. That rule expired in 1997.

 

[AmmoTech90]

This information is around 2 years old, and I got it from the release section in Pet.

I was told I could "sever" myself from DND on retirement, not receive a pension, and get a return of contributions and interest.  In my case it came to around 300,000 minus tax, so probably half that.  Off the top of her head the release clerk did not know of a way to shelter it from taxes.  The information was taken from a CCPS screen so two years ago there was a way to do this.  If you do this, you are completely cut out from any benefit under the superannuation act, so make sure you are absolutely sure.

It was not enough to retire to a beach side cottage in the Pacific on so I chose to stay in and take the pension.

 

[dapaterson]

Short answer:  It depends.  Depends on your age, release item and other factors.

But assuming you're under 55, without 25+ years full-time (or equivalent) you can get a deferred pension (ie a pension in the future); a reduced pension (ie pension now that's less every month since it will be paid for longer) - but only if you are 50+, or you can receive a lump-sum transfer into a Locked-In RRSP (and possibly some addiional money paid out in cash and taxable in your hands).

Check with the release section about your particular situation; your precise years of service, pension plan (part I.1 (reserve) or part I (regular/full-time reserve of 5+ years straight), age and release item will affect your options.

 

[aesop081]

If you mean "return of contributions", then the answer is yes:

http://www.admfincs.forces.gc.ca/dcf-dsp/rfp-rpf/pp-rp/rfpp-rpfr-eng.asp

Not so.

Read this :

http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pen/reg/ap-ar/benefits-prestati-eng.asp

 

[Occam]

Not so.

Read this :

http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pen/reg/ap-ar/benefits-prestati-eng.asp

That page is for Regular Force.

 

[aesop081]

That page is for Regular Force.

Sorry, wrong link........

http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pen/res/ap-ar/benefits-prestati-eng.asp

same same.....

 

[Occam]

Sorry, wrong link........

http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pen/res/ap-ar/benefits-prestati-eng.asp

same same.....

Sorry, I completely misread the link I posted.  One becomes vested when they have elected to pay into the RFPP, and have paid into it for two years.  Once vested, you can no longer get a return of contributions.  If they don't meet the criteria for an immediate annuity, there is a provision for a transfer value in place of a deferred annuity, but return of contributions is still no longer an option.

 

[clericalchronicals]

This information is around 2 years old, and I got it from the release section in Pet.

I was told I could "sever" myself from DND on retirement, not receive a pension, and get a return of contributions and interest.  In my case it came to around 300,000 minus tax, so probably half that.  Off the top of her head the release clerk did not know of a way to shelter it from taxes.  The information was taken from a CCPS screen so two years ago there was a way to do this.  If you do this, you are completely cut out from any benefit under the superannuation act, so make sure you are absolutely sure.

It was not enough to retire to a beach side cottage in the Pacific on so I chose to stay in and take the pension.

$300,000?  Are you certain about that?

 

[AmmoTech90]

Yep,

I was surprised myself, but it was sitting there on the pay screen.  Of course less taxes it was enough for a bungalow with a private pool in Thailand, but nothing but personal savings to support myself after that.