Pension Transfer Value / Lump Sum Pymt [Merged]

[PMedMoe]

Somewhere along the line, it is always in "DND Mail" hands.

Yeah. It probably got from Toronto to Ottawa faster than it got from the CR in Ottawa to the pension office. And I do know that they lost something somewhere (after receipt) as they asked for another copy of my Release Transfer Notification Message.

 

[lennoj]

Could someone provide me with a number to the PPO?

The number I received back in September (1-800-773-7705) brings me to a busy tone when I've tried it.

Thank you,

 

[mariomike]

Could someone provide me with a number to the PPO?

The number I received back in September (1-800-773-7705) brings me to a busy tone when I've tried it.

I hope this helps,

Contact numbers:
http://www.forces.gc.ca/en/contact.page#release

 

[lennoj]

I hope this helps,

Contact numbers:
http://www.forces.gc.ca/en/contact.page#release

Thank you.

For anyone interested, they are working on files received in September and gave the pitch "extremely backlogged".

 

[mariomike]

Thank you.

You are welcome. Good luck. 

 

[Biohazardxj]

I sent an email yesterday to the pension folks asking how long it takes.  They got back to me today stating it would be a 3 to 4 month wait.  They need to hire more staff as this is totally unacceptable.

Just a follow up to my previous post.  I received my back dated pension monies for the period of 15 Feb to 31 Mar today, and will start getting regular cheques at the end of April.  8 to 10 weeks to get it all squared away.  A lot better than their initial estimate.       

 

[BinRat55]

Release section advised me last week that the caveat is 12 - 16 weeks for pension and up to 30 weeks for severance (my severance is as straight forward as one can get). Anything better than that is gravey. Count down begins next week!

Has anyone heard / know of the LTD timeline? the 75% top-up payments? Someone told me not to hold my breath there either (3-4 months), but I haven't heard anything even quasi-official...

How does one go that long without an income? There are some without the cusion of savings or investments to fall back on.

 

[bdcasey916]

So I had been speaking with the pension office two weeks ago on Thursday (released on 14 March). They advised me to call back this Thursday, but the woman I was speaking with told me that mine had already been processed and was waiting for second signature.  She said they were already working on end of March of this year as they had hired more staff and played catch up, she couldn't promise me that I would get any payment in April, but she was very certain I would for the end of May, but she advised me to call and they would give me an update as there is still a small possibility of pension payment at the end of this month.  I will let you know how the second phone call goes and see if they stick to their story

 

[bdcasey916]

OH and BinRat, sorry I didn't see the second part of your question about LTD.  I called my SISIP counsellor on my release date to keep him informed and he emailed me back a week later saying SISIP had received the required official notification from NDHQ of my release and that I should have my first LTD payment at the end of this month. 
SISIP payments are deposited at some point during the last full week of the month, so I will let you know if things actually worked out

 

[Biohazardxj]

So I had been speaking with the pension office two weeks ago on Thursday (released on 14 March). They advised me to call back this Thursday, but the woman I was speaking with told me that mine had already been processed and was waiting for second signature.  She said they were already working on end of March of this year as they had hired more staff and played catch up, she couldn't promise me that I would get any payment in April, but she was very certain I would for the end of May, but she advised me to call and they would give me an update as there is still a small possibility of pension payment at the end of this month.  I will let you know how the second phone call goes and see if they stick to their story

I received the Feb/Mar portion of my LTD shortly before I received the Feb/Mar portion of my pension on 15 April.

 

[BinRat55]

OH and BinRat, sorry I didn't see the second part of your question about LTD.  I called my SISIP counsellor on my release date to keep him informed and he emailed me back a week later saying SISIP had received the required official notification from NDHQ of my release and that I should have my first LTD payment at the end of this month. 
SISIP payments are deposited at some point during the last full week of the month, so I will let you know if things actually worked out

That's awesome - thanks foxhound!

 

[PMedMoe]

Just received notice that my severance pay has been approved and the cheque has been mailed to my bank for deposit into my RRSP.  T4 to be issued in Feb 2017.

So much for claiming that on taxes for last year.  But, I didn't get a T4A either.  Which makes sense as I didn't receive any pension in 2015.  :nod:

 

[mariomike]

Saw this in Ask a CAF Recruiter. ( It was a question about retirement, not the application process, so posting here. )

"If I do join the army when I am 20 years old, I plan to retire once I am 30-35 years old, would that be possible?"

Regular Force members who enrolled on or after 1 March 2007

You are entitled to an immediate unreduced pension when you:
•have 25 years (9,131 days) of CF service;
•are age 60 with at least two years of pensionable service;
•are age 55 with 30 years of pensionable service;
•have 10 years of pensionable service and are released due to disability; or
•are involuntarily released due to a reduction in the Canadian Armed Forces and either: ◦have 20 years of pensionable service; or
◦are age 55 or older with 10 years of pensionable service.
http://www.forces.gc.ca/en/caf-community-pension-reg-post-march-2007/career-events.page?#s2q1

"Thus, after 25 years you would receive 50%.  The maximum is 70%, paid for 35 years of service."

 

[BinRat55]

Just received notice that my severance pay has been approved and the cheque has been mailed to my bank for deposit into my RRSP.  T4 to be issued in Feb 2017.

So much for claiming that on taxes for last year.  But, I didn't get a T4A either.  Which makes sense as I didn't receive any pension in 2015.  :nod:

So how long was your wait for severance Moe?

 

[PMedMoe]

So how long was your wait for severance Moe?

Late April, I guess.  Got a letter saying it was approved and sent to the bank in early May, T4 to be issued in Feb 2017.

 

[rnkelly]

When a currently serving member is entitled to an immediate annuity does he or she still have the option of taking a Transfer Value at release?

In a case where a member would get the unfortunate diagnosis of not having long to live it seems that it would be unfair if a member entitled to a deferred pension (ex; 49 yr old with 19 yrs service) would get the option of a transfer value vice a member entitled to an immediate pension (ex; 49 yr old with 31 yrs service).

 

[mariomike]

For reference, perhaps Pension Transfer Value will be merged with Pension (merged).
http://army.ca/forums/threads/106617.75
4 pages.

See also,

1) Milnet.ca

Pension Transfer Value
https://www.google.ca/search?q=site%3Aarmy.ca+pension&sourceid=ie7&rls=com.microsoft:en-CA:IE-Address&ie=&oe=&rlz=1I7GGHP_en-GBCA592&gfe_rd=cr&ei=v8ZEV5-kOOuM8Qf0_KbABQ&gws_rd=ssl#q=site:army.ca++%22transfer+value%22

2) Government of Canada

Pension Transfer Value
https://www.tbs-sct.gc.ca/psm-fpfm/pensions/plan-regime/transfer-transfert-eng.asp

 

[dapaterson]

The act is quite clear:

Transfer value

22 (1) Despite any other provision of this Act but subject to the regulations, a contributor who has ceased to be a member of the regular force, has to their credit two or more years of pensionable service and is not entitled to an immediate annuity is entitled, in place of any other benefit under this Act to which they would otherwise be entitled in respect of the pensionable service that they have to their credit, to a transfer value that is payable to the contributor in accordance with subsection (2).

The regulations (s16.8ff) only provide the "under 50" restriction, but do not provide any additional options.

 

[rnkelly]

I may have used the wrong term with transfer value, I was wondering if a member could take a lump sum payment instead of the immediate annuity.  This could be beneficial for estate planning depending on the circumstances.

Apologies for the confusion.

 

[dapaterson]

You were correct.  The transfer value is a lump sum.  Well, two lump sums: one amount is transferred into a locked-in RRSP that can't be touched until about age 65; the balance comes as cash that is taxable in the recipient's hands in the year it is received.

There are certain minimums guaranteed payable to a survivor's estate (two years of benefits, I believe). As well, if the member leaves a spouse or children, the spouse receives a survivor's allowance, as do children up to a certain age.