Reserve force, service buyback

[shortym]

Good day,

I transfered to the regular force and since I've herd a lot about "service Buyback". Can anyone explain what this is and is it worth initiating? I have 3 years in the reserve before transferring, if that makes any difference.

 

[dapaterson]

How long ago did you transfer?

Depending on your mix of class A, B and C you will gain some amount of additional pensionable time.  The pension office should be able help. Google CFSA  and there should be contact information.

 

[DAA]

Good day,

I transfered to the regular force and since I've herd a lot about "service Buyback". Can anyone explain what this is and is it worth initiating? I have 3 years in the reserve before transferring, if that makes any difference.

Your first URS (Record Support Unit) should have had you complete a declaration form, indicating that you had prior military service.

I'm thinking a CFSA 100  ----->  http://www.forces.gc.ca/assets/FORCES_Internet/docs/en/caf-community-pension/d2941-em.pdf

And I believe that you only have "12 months" from your date of transfer to submit this form.

 

[Eye In The Sky]

The benefit potentially is that the amount of time they calculate you can "buy back" in pensionable time will count towards your 25YOS for a pension.  This could turn into a shorter amount of Reg Force time served/earlier retirement. 

However, if you elect to buy back and do so over 'monthly installments', be aware that there is interest tacked on to the amount, etc.  If you decide to elect to buy back, do some math and figure out if the payment option is worth it.  :2c:

 

[shortym]

As of 1 August 14, I officially transferred. Is there some sort of pension office on base that I could go to?

 

[Eye In The Sky]

Go to your unit OR.  I believe pension stuff is a URS level function (BOR/WOR) and the unit one should be able to point you in the right direction.

 

[PuckChaser]

You should get a letter from pension services offering you to elect a buyback. You have a year from the time the letter is sent.

 

[DAA]

You should get a letter from pension services offering you to elect a buyback. You have a year from the time the letter is sent.

You won't get any letter, until you complete the "Election" form, which is done at and by your first URS (ie; BOR or whom ever holds your Pers File) after transfer.

 

[Colin Parkinson]

It's a year at the rate they offer you, as the calculation changed. As I had left the reserves, they only counted class B over 6 months as pensionable time. 1 year cost me $11,000 at my current salary.

 

[Eye In The Sky]

Not sure what it is now, but when I did it, it was 1/4 for Class A and B that was less than 90 days consecutive, and day for day on Class B over 90 days.  Something like that...regardless as they messed it up. 

 

[dapaterson]

Under the new rules, you receive credit (and may buy back) each individual day worked.  Class B and C days are credited at 1 to 1, while class A days are credited at 1.4 to 1 for days of CF service.

The actual calculations of the cost of the election are byzantine and complex.