New Pension Averaging

[misratah500]

I've heard rumors in the last 6 months about this horrendous idea. I first hear about it from my ships engineering officer (LCDR) that they are looking at changing the way our pensions are caculated from 5 best years to the whole career. Then today I heard more of the same thing, that "it's in the process".

Has anyone heard anything more on this? This could be devastating. Is this to force people out? who would be grandfathered having past their 20 and work under the old system. Is it full of shit, i don't know.

 

[dapaterson]

Any such change would require an amendment to the CFSA, through Parliament.  To my knowledge, no such legislation is before Parliament.

I have heard no such rumours, other than a few think tanks talking about public service pensions; I do not recall hearing anything from any member of Parliament suggesting such a change to the CFSA.

 

[Monsoon]

Has anyone heard anything more on this? This could be devastating. Is this to force people out? who would be grandfathered having past their 20 and work under the old system. Is it full of crap, i don't know.

My sense is they could only change the pension scheme going forward, not affecting past service (which has already been paid for) - but how they would do this I have no idea. That being said, I suspect this is just a confused rumour involving the Part I.1 (reserve) pension, which is calculated in exactly the way you describe. What is happening is that employee contributions to the Reg F pension are in the process of escalating over the next couple of years; that doesn't sound like they're planning any radical overhauls of the system.

 

[CombatDoc]

Tony Clement of the Treasury Board has proposed "modernizing" Public Service pensions to align them with the private sector. By this he means changing from the current Defined Benefits plan to a Defined Contribution pension. If this were to be imposed upon the PS, then I suspect the CAF would follow.

I suspect that a shift to defined contribution pensions would have a significant negative impact on both recruitment and retention for many trades, including medical and dental MOSIDS, pilot, etc.

 

[Pat in Halifax]

This 'rumour' landed on my desk about 6 weeks ago. I immediately posed the question to someone I know would not BS me at CSOR Stad.

....NO!

 

[Eye In The Sky]

I also heard something about 'changes being considered', etc and was told they wouldn't affect anyone who was on a current TOS that would result in a pension unless they signed a new TOS  e.g. on an IE25 now, and signed a FPS after any changes were made.

There was also a rumour about the *4% pay holdpay until retirement* thing that was floating around a while ago too.  Maybe "spec fire" to see what the reaction would be?

Some people sense we will be put on the back burner again and hacked personnel and budget-wise in the next few years. 

 

[misratah500]

Well if this is untrue, it's making the rounds at some pretty high level places. MARPAC HQ for example and my vessels Wardroom.

 

[PuckChaser]

Same reason the "Your LDA is going away this year" rumours went around, at high levels as well. People like to pretend they're predicting policy decisions.

 

[dapaterson]

The "4% holdback" was a proposal for the Public Service, to move them to payment in arrears - 4% x 25 payments = 100% of one payment deferred, and you are then being paid in arrears.  That is not being done; instead, current public servants will have 100% of one payment withheld, but then receive a one-time advance payment.

As for the rumour running around MARPAC HQ: Some people refuse to believe it when they're told that things aren't changing, even when it's the truth.

 

[Pat in Halifax]

Well if this is untrue, it's making the rounds at some pretty high level places. MARPAC HQ for example and my vessels Wardroom.

Well...If it is going around the Wardroom...
It could well come in the far off future but I will believe what I have been told by someone who is in the know. You can choose to believe who you choose. Lets come back to this in a year and see how things are going.

 

[Good2Golf]

If it was concerted discussion amongst the CMP and Fin&CS staff, I might think there is some weight to such a rumour.  Wardroom of HMCS Whatever, or any other social watering hole...meh!  rly: