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PENSION CONTRIBUTION RATES 2016

George Wallace

Army.ca Dinosaur
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Infanteer said:
Meh, if I stick to my principles I am willing to eat this one.  I can't criticize what I perceive to be "gold-plated government pensions" if I receive on myself.  I'm fine with paying my share of a very good pension plan.

Is it not like the planned increases in CPP contributions and other planned increases, that it will hurt those that have been serving for over a decade or so, and only be beneficial to those who are about to enter into service?  In effect it is an additional 'tax' on your earnings for which you are not likely to see any benefit.  Perhaps a necessary evil, but quite harmful to those nearing the ends of their careers/employment.
 

McG

Army.ca Legend
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George Wallace said:
Apparently my backing up a statement, with a fact ...
Your "facts" had SFA to do with the topic.

George Wallace said:
Perhaps a necessary evil, but quite harmful to those nearing the ends of their careers/employment.
Now you are back on topic, but I don't understand your logic.  Those nearing the end of their careers will get the same benefit having paid less for it through most of their career.  How do you see them being a particular focal point for harm?
 
J

jollyjacktar

Guest
"Now you are back on topic, but I don't understand your logic.  Those nearing the end of their careers will get the same benefit having paid less for it through most of their career.  How do you see them being a particular focal point for harm?"

So, what additional benefits are there now that there wasn't before the rate increases?  Unless I am mistaken, and I sure hope I am, all I see are added increased contributions not benefits.  WFT, is so fantastic about that for anyone?
 

McG

Army.ca Legend
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jollyjacktar said:
So, what additional benefits are there now that there wasn't before the rate increases?  Unless I am mistaken, and I sure hope I am, all I see are added increased contributions not benefits.  WFT, is so fantastic about that for anyone?
Agreed.  Pers will now pay more to get the same thing.  But it seems to me this will be a greater impact on those who are early in their careers and will pay the higher rate through more (or all) of their career.
 
J

jollyjacktar

Guest
Yes, the young are getting boned by the man once more.  Agreed.  And as it was for us, it won't be the only time for them over the course of a career.
 

PuckChaser

Army.ca Fixture
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Anyone new won't notice. Anyone already vested in the system get screwed. Anyone on the 30/30 plan doesn't care anyways.
 
J

jollyjacktar

Guest
Au contraire, I am now, and have been for some years in the 30/30 bracket.  I care.  I hate belt fed from the man at anytime.  If I had already pulled the trigger to initiate the 30/30 count down, then yes, it would be moot.
 

CountDC

Army.ca Veteran
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Agree - on 30/30 plan and considering the option.

My only real beef with these increases is that they started just after the Liberals took billions out of the pension stating that the plan had more than enough money and the take out would not have an impact.  Next thng you know they announce increases as there wasn't enough money in the plan (which just happened to be what I predicted and everyone thought I was crazy.  Wish now I had just been crazy).
 

George Wallace

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CountDC said:
Agree - on 30/30 plan and considering the option.

My only real beef with these increases is that they started just after the Liberals took billions out of the pension stating that the plan had more than enough money and the take out would not have an impact.  Next thng you know they announce increases as there wasn't enough money in the plan (which just happened to be what I predicted and everyone thought I was crazy.  Wish now I had just been crazy).


Will you retire and run for politics some day?    [:)
 

Pusser

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CountDC said:
Agree - on 30/30 plan and considering the option.

My only real beef with these increases is that they started just after the Liberals took billions out of the pension stating that the plan had more than enough money and the take out would not have an impact.  Next thng you know they announce increases as there wasn't enough money in the plan (which just happened to be what I predicted and everyone thought I was crazy.  Wish now I had just been crazy).

The increases in contribution rates had nothing to do with that.  The plan for the CFSA has always been that employee/employer contributions were to be much closer than they were.  The gradual increase in employee contributions over the last few years has simply been in order to bring things more into line with where they are supposed to be.
 

dapaterson

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Gradual?  Contribution rates have more than doubled in the past 10 years.  Until 2011 (or possibly 12) there were restrictions in the law about how quickly rates were permtited to be changed - no more than 0.4% per year.  With that restrictor removed, contributions have grown significantly; this year, deductions on amounts up to the YMPE have increased 0.9%.

I support the increase in contributions to make the plans reach a 50/50 split (well, 50/50 for the public service; military and RCMP plans will contribute at the same rates but not reach that split), but we need to keep in mind the pain these changes cause.
 

Pusser

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To be honest, I've never really considered the percentage increases.  I've only looked at the dollar amounts.  I needed to drink less at Starbuck's anyway.
 

dapaterson

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Pusser said:
To be honest, I've never really considered the percentage increases.  I've only looked at the dollar amounts.  I needed to drink less at Starbuck's anyway.

It's the old "slow boil" technique, to keep the frog from hopping out of the pot.  Look at that "small increase", then multiply by 5 1/2, and it's not so small after all.
 

dapaterson

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And the Treasury Board has released the 2017 contribution rates.  Surprise!  They're increasing.

On amounts below YMPE, the rate will go from 9.05% to 9.47%; on amounts above YMPE, the increase will be from 11.04% to 11.68%.


https://www.tbs-sct.gc.ca/psm-fpfm/pensions/publications/notices-avis/2017-01-01-eng.asp
 

kev994

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Should make RRSPs easy, I ought to be at 0 contribution room by now.
 
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