Reserve Force Retirement Gratuity

[JMesh]

The CBI states that it calculates half or full RFRG based upon continuous enrolled service, which it defines as:

the total period of uninterrupted service in any component of the Canadian Forces without release, up to and including the day on which the member is released or transferred from the Primary Reserve, other than any of the following periods:

a. a period of leave without pay granted under QR&O 16.25 (Leave Without Pay and Allowances);
b. a period of service in the Supplementary Reserve, Cadet Instructors Cadre or the Canadian Rangers, other than Class “B” or “C” Reserve Service;
c. a period of limitation of payments authorized under QR&O 203.20 (Officers – Regular Force Limitations of Payments);
d. a period during which no military service is rendered and for which a forfeiture has been imposed under QR&O 208.31 (Forfeitures, Deductions and Cancellations – When No Service Rendered);
e. a period during which a forfeiture is imposed under QR&O 208.30 (Forfeitures – Officers and Non-Commissioned Members); or
any other period during which a member of the Primary Reserve is authorized to be exempt from duty and training or is placed on non-effective strength.

The full CBI is available here: http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/pub/cbi-dra/204-eng.asp#sec-204-54

 

[acronym]

Thank you for your response. So essentially, this document states, that because I got out briefly (even before the RFRG's inception) my previous service is not taken into account? Why does it have to be continous? It isn't like they gave me any money the first time i left...

 

[Res Release Clerk]

If there is a break of service, even for a single day, between your first release date and the day of your second enrolment, they will only count the second period of service. Simple as that, and there's nothing your unit can do about it.

Sorry!

 

[HollywoodCowboy]

Do they grandfather if you have been in for 15 yrs at 2007.
I'm a few months away from a full 20 in the old system, new system gonna take me 10 more years to get the full 100%.
Anyone have any idea?

 

[Monsoon]

Do they grandfather if you have been in for 15 yrs at 2007.
I'm a few months away from a full 20 in the old system, new system gonna take me 10 more years to get the full 100%.
Anyone have any idea?

Nope. You'll have the 15 years you had up until 31 March 2007, plus the number of class "A" days served since then multiplied by 1.4, plus the number of class "B"/"C" days served since then. The thinking is that the money that previously went to top up your RFRG (despite class "A"-only service) is now going towards the government's end of your pension contribution.

 

[HollywoodCowboy]

Thanks!

 

[Retiredsarge]

Hello, Does anyone know about how RFRG is calculated when a period of disability compensation is involved?
I was injured on Class B service and required multiple surgeries, and a long period of recovery.  This period was covered by disability compensation (discomp) and at the end of it I will be medically released.  I was recently told that the CF will not count the discomp period when calculating my RFRG.  They informed me that it will be counted as "leave without pay" even though I was given full pay for the full discomp period.  Thanks to anyone who can help!!

 

[dapaterson]

Hello, Does anyone know about how RFRG is calculated when a period of disability compensation is involved?
I was injured on Class B service and required multiple surgeries, and a long period of recovery.  This period was covered by disability compensation (discomp) and at the end of it I will be medically released.  I was recently told that the CF will not count the discomp period when calculating my RFRG.  They informed me that it will be counted as "leave without pay" even though I was given full pay for the full discomp period.  Thanks to anyone who can help!!

Have your superiors contact the RFRG audit cell in DMCA.  According to my sources, a period of DisComp is considered as qualifying service.

 

[Fishbone Jones]

The more this shit goes on, the more I'm prone to believe that the Reserve Pension was formulated and administered by the same jokers that take care of VAC awards. :facepalm:

 

[fraserdw]

"The more this crap goes on, the more I'm prone to believe that the Reserve Pension was formulated and administered by the same jokers that take care of VAC awards. "


Average time to RFRG = 36 weeks, average time to get Reg F Severence = 6 weeks.

You will be on welfare by the time you see it unless you have another income.  BTW the pension takes up to 78 weeks to arrive AFTER retirement.

 

[LWH]

For info, the Reg F severance payout timelines are significantly delayed at this time due to volume.  At the time of my release appt in Aug 11, the estimate was 8-10 weeks from my date of release.  It ended up being 15 weeks just for the review of my file, was processed one working day before Christmas or it would have been another week or so due to holiday down time.  It has to be sent by cheque though, no direct deposit.  Close to two weeks later before the cheque was in the mailbox, so just over 4 months delivery from date of release.  Vacation days buy out took an extra three weeks to make it into the bank as the earlier pay run was missed (that one does come as a direct deposit, processed IAW Reg F pay run timings). 

My severance payout was very simple, I didn't have it split into multiple funds, for a number of reasons took it as one lump sum payout.  As the weeks added up, the funds I set aside to cover expenses over that two to three months were running pretty dry (retirement employment hadn't yet commenced) so I regularly "prompted " the sign off clk at NDHQ to see if processing had taken place.  He advised there has been an exceptionally high volume lately, and the wait I was experiencing was not unusual (would have been good to know that in August).  Also if my payout was being transferred to RRSPs or similar package he advised I would likely have encountered further delays of a week or two. 

In the end, all is good.  At mid January I had my expected payouts, big sigh of financial relief.  The narrative above is for the SA of anyone undergoing Reg F release, be ready for a longer wait than than in the past, and plan an extra month or two without having the severance and vacation $ in your hand.  Hopefully these new delays are now well explained during current release interviews to allow members to properly plan.  It still doesn't compare to the Res F timelines I realize, but there is a sizable delay compared to previous years.

Cheers!

 

[54/102 CEF]

Would anyone out there have a simple explanation on  the process to transfer the Gratuity (aka Severance Pay) straight into the pension buyback without it being taxed?

My situation is a Buy Back as a Reservist from Oct 10 1972 - Oct 31 2013

I have been paying into the CF Pension since it came into effect for Res in 2007

 

[dapaterson]

You need unused RRSP contribution room.  And you need to have received Revenue Canada permission to not have taxes withheld at source.

Step 1: Write to Revenue Canada & get permission to roll over the severance into unused RRSP room without tax being withheld at source.

Step 2: For service prior to 1994 or so, you may make over contributions to RRSPs - I believe the severance form discusses this option.

Step 3: Once you've received the severance payment, transfer it to your RRSP.

Step 4: Transfer RRSP to the pension buyback.


Clear as mud?

 

[54/102 CEF]

Very

I'm sure when its all done we look back on it and think what was the puzzle ?