Retro Pay & Allow 1Apr 2014 - 1Apr 2017

[Eye In The Sky]

So the next question...what about times during 2014-present that we were tax free?  ???  Will our backpay for those times be tax free or will it be considered *monies earned in 2017* like we report it on our tax returns?

 

[Harris]

Further on to the last question, how is the amount handled for those currently on tax free status?  I'm guessing money earned before going tax free is still taxed.

 

[BinRat55]

By my estimate a Sgt (4) will get a lump sum of approx. $6.6k gross at end Jun and an overall increase of approx. $350 gross per month.  Guess that is better than nothing. [

edit of lump sum.  I forgot to include the accum amounts.

Everyone seems to be agreeing on this math, however I seem to be a bit lost... I get a gross lump sum payment of 1900.00. Albeit I am not including all of 2016 as I retired in May 2016, but one year would not add 4 thousand dollars to my total!!! Either I am doing it wrong or you are doing it wrong.

WO 4 (about 6200.00 monthly pre-tax)

2014 -- 6200.00 X 1.25% = 77.50
77.50 x 12 = 930.00
930.00 x 30% (taxes) = 280.00
930.00 - 280.00 = 650.00

2015 -- 6277.50 X 1.25% = 78.50
78.50 X 12 = 942.00
942.00 X 30% (taxes) = 283.00
942.00 - 283.00 = 659.00

2016 -- 6356.00 X 1.25 = 79.50
79.50 X 12 = 954.00
954.00 X 30% (taxes) = 286.20
954.00 - 286.20 = 667.80

650 + 659 + 667.80 = 1976.80 Total backpay (give or take based on tax percentage)

Where am I going wrong?

 

[BinRat55]

Thanks, any smart person here do a similar calculator for environmental allowances? Sea pay, LDA etc

Jon

As long as my math is correct (this is the caveat of course) I calculate that you would multiply 15 by how many months you have been receiving LDA. Example is two years. You have been in receipt of LDA for 24 months:

24 X 15.00 = 360.00

LDA increased by roughly 15 bucks a month over all incentive markers.

 

[GeorgeD]

Everyone seems to be agreeing on this math, however I seem to be a bit lost... I get a gross lump sum payment of 1900.00. Albeit I am not including all of 2016 as I retired in May 2016, but one year would not add 4 thousand dollars to my total!!! Either I am doing it wrong or you are doing it wrong.

WO 4 (about 6200.00 monthly pre-tax)

2014 -- 6200.00 X 1.25% = 77.50
77.50 x 12 = 930.00
930.00 x 30% (taxes) = 280.00
930.00 - 280.00 = 650.00

2015 -- 6277.50 X 1.25% = 78.50
78.50 X 12 = 942.00
942.00 X 30% (taxes) = 283.00
942.00 - 283.00 = 659.00

2016 -- 6356.00 X 1.25 = 79.50
79.50 X 12 = 954.00
954.00 X 30% (taxes) = 286.20
954.00 - 286.20 = 667.80

650 + 659 + 667.80 = 1976.80 Total backpay (give or take based on tax percentage)

Where am I going wrong?

You get 1.25% first year at $77.5/month then you get another 1.25% for the second year(2015) which is $78.5/month and then another 1.25 for 2016 which is $79.5/month.

What you seem to be doing is adding the 1.25% a year without considering the previous raise.

-2014
77.5x12=930

-2015
78.5x12=942
then you add that to the 2014 raise so you get 1872 for 2015.

-2016
79.5x12=954
Then add 930(2014)+942(2015)+954(2016)=2826 for 2016

To get the total you add the raise for 2014+2015+2016

930+1872+2826=5628 for total backpay

 

[EME101]

Besides barely keeping up with inflation, this raise also didn't keep up with the PSAC bargaining unit that we usually benchmark against.  The Services bargaining unit contains most of the comparative civilian trades.  They received the 1.25% a year, but also got additional raises.  For example VHEs got an additional 9% market adjustment, making it that much harder to keep military Veh Techs.
These are the additional raises that they got:
Market Adjustments
Adjustments effective August 5, 2016, prior to the General Economic Increase (GEI):
FR: 15%
GL-COI: 0.5%
GL-EIM: 6%
GL-MAM: 2.5%
GL-MDO: 0.5%
GL-PIP: 2%
GL-VHE: 9%
GL-WOW: 2%
GS-group: 0.75%
HP group: 15%
Wage Adjustments
Increases effective August 5, 2016, prior to GEI:
GL-AIM: 2.5%
GL-AMW: 2.5%
GL-ELE: 0.5%
GL-GHW: 2.5%
GL-INM: 2.5%
GL-MAN: 2.5%
GL-MOC: 2.5%
GL-MST: 2.5%
GL-PCF: 0.5%
GL-PRW: 2.5%
GL-SMW: 0.5%
HS group: 0.75%
LI group: 1.5%
PR(S) group: 0.5%
SC group: 5%

 

[BinRat55]

You get 1.25% first year at $77.5/month then you get another 1.25% for the second year(2015) which is $78.5/month and then another 1.25 for 2016 which is $79.5/month.

What you seem to be doing is adding the 1.25% a year without considering the previous raise.

-2014
77.5x12=930

-2015
78.5x12=942
then you add that to the 2014 raise so you get 1872 for 2015.

-2016
79.5x12=954
Then add 930(2014)+942(2015)+954(2016)=2826 for 2016

To get the total you add the raise for 2014+2015+2016

930+1872+2826=5628 for total backpay

Nope. You're wrong. You are adding your 2014 total back pay 3 times, 2015 twice. You don't get triple 2014 in 2016...

Look at it again - at 6200 a month (in 2014), should be 6277. So, 77.50 multiplied by 12 months equals 930.00. Now you ADD the 77.50 to your 6200 to begin 2015. In 2015 you are now at 6277.50 a month. Math says it SHOULD be at 6356.00. Now you add the difference again - 78.50 multiplied by 12 months (2015) and you get 942.00. Repeat: to begin 2016, add 6356 to 79.50 and you get 6435.50. This is your base pay for 2016 (not for 2014) Multiply 79.50 X 12 and your 2016 back pay is 954.00

930 (based on 1.25% of 6200.00 a month) New monthly - 6277.00
942 (based on 1.25% of 6277.00 a month) New monthly - 6356.00
954 (based on 1.25% of 6356.00 a month) New monthly - 6435.00

2826 would be your retro BEFORE taxes.  Take about 900 off that for taxes, you end with -- 1926.00

 

[Sub_Guy]

Your math is off.

This chart has a few examples.

https://www.canada.ca/en/department-national-defence/news/2017/06/canadian_armed_forcespayincrease.html

 

[GeorgeD]

930 (based on 1.25% of 6200.00 a month) New monthly - 6277.00
942 (based on 1.25% of 6277.00 a month) New monthly - 6356.00
954 (based on 1.25% of 6356.00 a month) New monthly - 6435.00

You were being paid 6200/month for 2014,2015 and 2016 right? Subtract 2013 pay from 2014 pay, 2013 pay from 2015 pay etc...
Your math is correct if in 2015 you were paid 6277/month and they just have to top off that extra 1.25%.



$6200x1.0125=6277.5
6277.5-6200=77.5
77.5x12=930

You are owed $948 for 2014

in 2015:
6277.5x1.0125=6355.5
now in 2015 you were paid ~$6200/month so with this raise they would go and subtract 6200 from 6355.5

6355.5-6200=155.5
155.5x12=1866
You are owed $1866 for 2015

Now in 2016 you wrote you worked for 2 months before you retired. I am going to assume you worked till 31 may.
6355.5x1.0125=6434.94

6434.94-6200=234.94
234.94x2=~470

948+1866+470=3284
before taxes you get $3284.


Since from 2014-2016 you were paid at the same level. So in 2014 the pay raise is 1.25% at ~$77. In 2015 it was 1.25% on top of the previous 1.25% which means now you get ~77+~77 etc...

 

[NavyShooter]

Having just gotten my SDA Audit backpay, which was taxed at approximately 45%, I will suggest that you apply that rough number to your lump-sum payments as well.

Expect to see them take almost half.

My SDA Backpay was $5900, my 'clear' amount was $3200

That's what I expect to see here too, but my numbers are ~8600 before taxes, and about $4700 clear.

That'll pay off the visa and make a nice kick in the savings.

Also, my monthly pay will be almost $450 more....which probably means about $275 clear.  Ish.

(CPO2 Spec 1, IPC1)

NS

 

[BinRat55]

You were being paid 6200/month for 2014,2015 and 2016 right? Subtract 2013 pay from 2014 pay, 2013 pay from 2015 pay etc...
Your math is correct if in 2015 you were paid 6277/month and they just have to top off that extra 1.25%.



$6200x1.0125=6277.5
6277.5-6200=77.5
77.5x12=930

You are owed $948 for 2014

in 2015:
6277.5x1.0125=6355.5
now in 2015 you were paid ~$6200/month so with this raise they would go and subtract 6200 from 6355.5

6355.5-6200=155.5
155.5x12=1866
You are owed $1866 for 2015

Now in 2016 you wrote you worked for 2 months before you retired. I am going to assume you worked till 31 may.
6355.5x1.0125=6434.94

6434.94-6200=234.94
234.94x2=~470

948+1866+470=3284
before taxes you get $3284.


Since from 2014-2016 you were paid at the same level. So in 2014 the pay raise is 1.25% at ~$77. In 2015 it was 1.25% on top of the previous 1.25% which means now you get ~77+~77 etc...

You are not making one bit of sense to me. This is what I see you doing:

2014 = A
2015 = A + B
2016 = A + B + C

Total A + (A+B) + (A+B+C) = Back pay

Let's say that no matter what, our annual increase is roughly 950.00 for each of the three years.

2014 = 950.00
2015 = 950.00 + 950.00
2016 = 950.00 + 950.00 + 950.00

Total = 950.00 + 1900.00 + 2850.00 = 5700.00

This means that you will have been paid a retro payment for 2014 three times.

I still don't understand.

 

[Sub_Guy]

1.25 back dated to 2014.  So that's three years of 1.25 and so on.

 

[BinRat55]

1.25 back dated to 2014.  So that's three years of 1.25 and so on.

Ahhh now THAT clears it right up for me.

 

[Eye In The Sky]

There's a spreadsheet earlier in the thread that seems to work well.  Don't forget the 2016 1.2% X Factor as well.  I did the rough calculations on Friday manually and the spreadsheet came out with approx. the same numbers.

 

[scoobydooby]

I did the rough calculations as well used the spreadsheet.  They were basically the same.  Probably off only because i forgot the 1.2 factor that the spreadsheet has built in.  Passed it off to a friend in the Comptroller section and the Admin O and they both confirmed the spreadsheet is accurate. 

 

[Jarnhamar]

Is there a contact number or email someone could recommend that I could give to members who have left the forces to get info on this?

 

[mariomike]

Is there a contact number or email someone could recommend that I could give to members who have left the forces to get info on this?

•Former members would be best served by contacting the Release Personnel Pay Office to inquire about their own specific case.
    o  Release Personnel Pay Office: 1-800-773-7705
    o  Email for Regular files DND.RPPOREG-LRDTSA.MDN@forces.gc.ca
    o  Email for Reserve files RPPOReserve@forces.gc.ca 

See also,

Your Pay and Allowance Increase
About the Increase
Estimates - Full-time Annual Salaries
Estimates - Part-time Daily Rates
Estimates - Monthly Allowance Rates
Estimates - Daily Allowance Rates
http://www.forces.gc.ca/en/caf-community-benefits/know-your-benefits-articles/pay-raise.page

 

[Navy_Pete]

You can figure this out the same way as compound interest, but roughly for the years of increase you multiply it by;

First year - monthly pay x 1.25 = difference in monthly pay for year
Second year - monthly pay x 2.52
Third year - monthly pay x 3.8
Fourth year - monthly pay x 5.09
Fifth year - monthly pay x 6.41
...
anic: Warning!  Math ahead!

new rate = current rate *(1+annual increase)^number of years gives you overall percent
example in year two = current rate * (1 + 0.0125) ^2
                              =current rate *1.0252 = new total monthly rate

pretty decent explanation here; https://www.mathsisfun.com/money/compound-interest.html



Compound interest is crazy that way; an annual 1.25% increase gives you a 13% growth over 10 years.  Or do 1.5% a month (18% year) for credit card interest and you can see how fast your debt grows.

 

[mildoc]

Anyone know how time spent on MATA/PATA affects this back pay? No back pay for those periods of time?

 

[dapaterson]

Anyone know how time spent on MATA/PATA affects this back pay? No back pay for those periods of time?

I believe (but am not certain) that,since MATA/PATA is based on prior 12 months of earnings, the top-up would be recalculated since its basis has changed.