Retro Pay & Allow 1Apr 2014 - 1Apr 2017

[Eye In The Sky]

Tried Ctrl F5 and no luck!

Anyway someone can post a picture of the new rates!?

NCM rates for 2017 don't appear to be completed yet.  Stand by to stand by!

 

[SJBeaton]

NCM rates for 2017 don't appear to be completed yet.  Stand by to stand by!

It looks as though Table to CBI 204.30 has all updated rates for NCMs: http://www.forces.gc.ca/en/about-policies-standards-benefits/ch-204-pay-policy-officers-ncms.page 

 

[Eye In The Sky]

Copy that.  I was only looking here  ;D

http://www.forces.gc.ca/en/caf-community-pay/pay-rates.page

 

[Navy_Pete]

What on earth ... where are you getting these percentages? I'm by far the greatest at math (3 x 6 = blue) but I read your mathplay link and I see it differently - as in exactly what the link says... a 1.25% raise at year one is still a 1.25% raise at year 4... you just add the 1.25 from year 1 to the base of year 2, and then again for year 3 and so on...

Not really, they compound each year.  It's not very dramatic because the rate is pretty low.  But it will result in a noticeable difference against your monthly rates if you don't compound the raise each year, and why the total raise is slightly higher than just straight adding 1.25 each year.

So initially, you are at your standard rate of 1

each year you multiple by 1.0125 to give you your raise (1+ 1.25%= 1+0.0125). This gives you your overall new pay rate.  (if you just want to see how much your new pay rate increase is going to be, you can just multiply by 0.0125 a year, which is 1.25% as a whole number)

so your first raise is
1.00 * 1.0125 = 1.0125 (*base pay)
second year you multiply the raise (1.0125) times the rate from the previous year, not the original
1.0125 * 1.0125= 1.0252
1.0252 * 1.0125 =1.038
...
etc
you do the same each year, and after 4 annual 1.25% increases, are at a 6.41% raise instead of 6%.

If you go to the link, they explain the compound interest formula.  Basically every time it compounds, you are starting with a slightly larger bit than you had last time.

future value = present value  x (1+interest rate) ^ number of periods

you can plug in the numbers, but the interest rate is 1.25% = 0.0125, and there are 5 periods (counting from 2013 to 2017).

It's only a small difference, but only because of how small the annual increase is.  If you have larger increases, or more regular increases, that's how you get into trouble with compound interest rates, and why your balance will quickly build up on a credit card if you don't at least pay the minimum each month.

A more extreme case is when something doubles each time (for example cells that split).  You start with 1, then 2, then 4, 8, 16, 32, etc.

That's the same as a 100% compounding interest rate (ie 1), or working it into the formula;

fv = present value x (1 + 1)^number of periods

So if you start with 1, and go through 4 cell divisions (ie 4 periods) the math is

FV= 1 x 2^4 = 16

It's nice to have compounding interest work for us for a change with a raise, instead of against debt.

 

[Navy_Pete]

Another comparison is if you invest $1000 and it grows 5% a year;

initial = $1000
first year = $1000 + (1000*.05) = $1050
second year = $1050 + (1050*.05) = $1050 + 52.5 = $1102.50
third year = 1102.50 + (1102.50*.05) = 1102.5+ 55.125 = $1157.67

etc

If you just add 5% each year, in the third year you would be at $1150 instead of 1157.67.  Again, small difference but it's a short time.  Over twenty years it will be a bigger difference, and adds up to a lot if you invest more money over time.

Not sure if that's clearer, but that's how compound interest works, and where the 6.41% raise increase comes from, instead of 6%

(as an aside, with an annual inflation of around 1.53%, the total there is almost an 8% overall inflation in the same time)

 

[RADOPSIGOPACCISOP]

You can't just run test cases and expect to get a consistent one number % that will be accurate.

You're going to need to create an excel sheet and track the pay increases by year (or if you've been promoted during that time, do it by month) and then get the cumulative increases.

When it worked it out it was nearly $7500 gross.

Once taxes are gone it's about $5k, which is a nice bonus.

 

[RADOPSIGOPACCISOP]

This is what I did in excel to get it (accounts for a July 2016 promotion):

6033 1.0125
5638 1.015


Apr14-Apr15 12 =D4*D7                 =E7*F3         =G7-E7
Apr15-Apr16 12 =D4*D8                 =G7*F3         =G8-E8
Apr16-Jul16 3 =D4*D9 =D3*F3*F3*F3 =F9*D9         =G9-E9
Jul16-Mar17 9 =D3*D10                 =F9*F3*D10 =G10-E10
=D3*12*0.012
=SUM(H7:H11)
=H12*0.33
=H12-H13

 

[Nfld Sapper]

This is what I did in excel to get it (accounts for a July 2016 promotion):

6033 1.0125
5638 1.015


Apr14-Apr15 12 =D4*D7                 =E7*F3         =G7-E7
Apr15-Apr16 12 =D4*D8                 =G7*F3         =G8-E8
Apr16-Jul16 3 =D4*D9 =D3*F3*F3*F3 =F9*D9         =G9-E9
Jul16-Mar17 9 =D3*D10                 =F9*F3*D10 =G10-E10
=D3*12*0.012
=SUM(H7:H11)
=H12*0.33
=H12-H13

Don't see any dollar values only the cell/formula info.

 

[RADOPSIGOPACCISOP]

Don't see any dollar values only the cell/formula info.

I set it to show formula as I thought that may be more useful for people if they wanted to create their own spreadsheets. The actual dollar value is only really applicable to me or someone that got the same promotions at the same time.

 

[Schifty]

A simple question, this retro pay will be with or without the taxes, I mean will they take it this summer or in april on our T4

 

[brihard]

A simple question, this retro pay will be with or without the taxes, I mean will they take it this summer or in april on our T4

Taxes will be deducted from your pay check. They will probably be somewhat over-deducted, that's what I've seen in the past.

 

[c_canuk]

Is there anyone working in/with the pay system that can comment on if we'll receive the lump sum retro on the 30th, or if it will be later etc?

Someone today was saying they heard end of July, I thought we'd been told end of June, however I know these things can get delayed.

 

[dapaterson]

Last available info is holding to the 30 June date.

 

[CountDC]

Depends - Reg F is standing on 30 Jun but according to the RPPO plus box message we get the reserves will start to receive lump sum payments starting end Jun 2017.  This leaves the door open for later payments.

 

[EME101]

▼ E01217 - 02 Jun - Production Calendar

Date: 02 Jun 17

Subject: Production Calendar

Treasury Board has approved the General Pay Increase (GPI) for members of the CAF retroactive to 1 Apr 2014.  DMPAP will have the retro pay calculated and applied to all CAF members pay in time to appear on the members’ end June pay.  During the implementation of the GPI, it will be necessary to take CCPS and RPSR offline during business hours.

CCPS will be offline at 2100 on Thurs, 8 June 2017 to 0700 Tues, 13 Jun 2017. During this time, pay clerks will not have access to CCPS until the system resumes normal processing on 13 June 2017.


However, despite the above message CCPS was active during that time, and is down now.

 

[merk102]

Anyone have an idea of the taxation rate of the backpay portion ? I noticed that the spreadsheet showed a 38% tax rate which means we would get approx. 62% of that.

 

[Messerschmitt]

Taxes will be deducted from your pay check. They will probably be somewhat over-deducted, that's what I've seen in the past.

Of course, always is. Never the other way around. Also, most are in higher tax brackets than they were in 2014,2015,2016, so more taxes withheld than if we would've got the increase regularly. And no "interest" for the delay, since money now is less than up to 3 years ago.

Oh well, at least we got an increase. Hopefully they will be yearly from now, and it's going to be a while until it gets stuck again

 

[JesseWZ]

I just checked my upcoming pay statement in EMAA and the backpay is there along with the new pay rate... ;D

 

[Cobrajr]

There seems to be some shenanigans going on with ACISS:CST's back pay and rate increase.
Will this ride ever end?

I have not had access to DWAN in a while so I have not seen the message, just comments about it. is there anyone in the know that can shed some more light on this for me?

EDIT: Nevermind, got my answer.

 

[SupersonicMax]

Of course, always is. Never the other way around. Also, most are in higher tax brackets than they were in 2014,2015,2016, so more taxes withheld than if we would've got the increase regularly. And no "interest" for the delay, since money now is less than up to 3 years ago.

Oh well, at least we got an increase. Hopefully they will be yearly from now, and it's going to be a while until it gets stuck again

You'll get the difference on taxes during next tax season...