Some info for you. I have taken some personal measures to try and get attention to the issue of the Reserve pension. As I get info, ( if I get a reply ) it will be passed on. Lets keep this in the Family for now. If the Family does nothing, we will have other options. Enjoy. You have to get past references A to Z. This info took some research.
Canadian Forces Pension Modernization Project
Coming Into Force Delay And Proposed Buyback Provisions
References: A. FMC 7200-1 (Pers) Reserve Force Compensation Study
Final Report 1985
B. Mercer Report, Final Report To The Canadian Forces- Reserve Pension Plan
June 1989
C. NDHQ 5794-7 (Adm (Per)) Reserve Personnel Integration Planning Team Study Report (RPIPT) 31 Jul 91
D. NDHQ 5749-7-2 (ADM(Per)) Classes of Reserve Service Policy 22 Jul 92
E. NDHQ 7402-52 (D Res) Personnel Planning Working Group (PPWG) on Reserve Force Compensation and Benefits 23 Sep 93
F. Special Commission on the Restructuring of the Reserves (SCRR) 30 Oct 95
G. Moving Forward: A Strategic Plan for Quality of Life Improvements in the Canadian Forces Oct 98
H. 5794 (SP01 D Res) An Integrated Total Force Compensation Pay and Benefits Package 13 Feb 99
I. NDHQ DHRRE, QOL In The Reserves 1998: Attitudes of Reserves Towards Contributing To A Pension Plan Research Report 99-9 Jul 99
J. Report on the Feasibility, Options, Plan Design and Implementation of a Pension Plan for the CF Reserves, William Mercer Ltd, 15 Dec 00
K. 1987 and 1994 Defence White Papers
L. 2000, 2001, 2002 and 2003 Annual Reports to the Standing Committee on National Defence and Veterans Affairs on Quality of Life in the Canadian Forces
M. Annual Report CDS 1999-0, 2001-2, 2002-3, and 2003-4
N. National Defence RPP 2002-3
O. NDHQ AFC 2/01 Record Of Decisions 27 Feb 01
P. Bill C-78 Public Sector Pension Investment Board Act 14 Sep 99
Q. Bill C-55 An Act To Amend Certain Acts In Relation To Pensions and To Enact The Special Pension Arrangements Act and The Pension Benefits Act 29 Sep 92
R. Bill C-37 An Act to Amend the CFSA and to Make Consequential Amendments To Other Acts 7 Nov 03
S. Bill C-37 An Act To Amend the Parliament of Canada and the Members of Parliament Retiring Allowances Act 21 Sep 00
T. Pension Benefits Standards Act (PBSA) 1985
U. Public Service Superannuation Act (PSSA) 1985
V. Canadian Forces Superannuation Act (CFSA) 1985
W. Report of the Major Variances of the CFSA In Relation To the Pension Benefits Standards Act circ 1995
X. 5000-2 (Rifleman62) Redress of Grievance 10 Jul 98
Y. Chief of Defence Staff 7 Jan 02
Z. ADM (PER) 068/97 CANFORGEN 102/97 291455Z OCT 97
1. The two agencies that would normally deal with this matter, the CF Grievance Board, and the CF Ombudsman, cannot act on a complaint where no regulations, orders or instructions exist.
2. I am writing to convey my tremendous disappointment with the Department’s handling of the Reserve pension issue. It is very clear to me and many of my colleagues that despite what is said by our leadership, the quality of life of Reservists is not an obvious and significant priority for the Department. If this were not so, I would not have to express to you the years of waiting that Reserves have been assured, yet denied a Reserve pension.
3. We in the CF are a small family, often called the Regimental Family. The Reserves, who make up 40% of the CF, are members of this family. With every casualty, we all feel the pain.
4. There has been a magnitude of studies, references A – J, and legislation, references P and R, over at least a 20-year period on a Reserve pension. Reserve members feel there is a lack of resolve to implement a fair and equitable pension plan on a timely basis. Combined with delays, and a vacuum of current conclusive information, very many feel betrayed. The phases “Total Force” (circ 1987) and “Putting People First”, as denoted at references K and M, appear to be hollow slogans.
5. “Currently, Reservists are the only part-time component of the federal Government without a pension plan” CDS Annual Report, 1999-2000, reference M. Bill C-55, introduced in 1992, reference Q, amended the PSSA to allow contributions by part time employees after 6 months service. Highlights are: prorated pension according to amount worked (service is not prorated, only the pension); participation based upon average work week (scheduled employment vice actual hours worked); requirement to work a minimum average of 12 hours per week; a grandfather clause; buyback of previous pensionable service from 1 Jan 1981; and the Supplementary Death Benefits Plan. Back then Treasury Board President, Art Eggleton, commenting on the revised public service pensions, stated: “It’s just a measure of fairness.”
6. Bill C-55 directed that part time employees of the Federal Government be provided access to a pension plan. The Department was well aware of the proposed legislation and the effect it would have on DND and its civilian employees. However Bill C-55 failed to recognize Reservists specifically as part time employees of the Federal Government. Enactment left Reservists with no pension accessibility. Reservists on operations and full time employment are working along-side public servants who have pension accessibility after 12 hours per week. With all the studies and the acknowledgement of the requirement for a Reserve pension, it is incredible that the CF did not exercise due diligence and act immediately to rectify this inequity in 1992.
7. The studies and the legislation validate, categorically, the need for a pension for the Reserves. Legislation at references P and R, legalize a Reserve pension. The CF has been since 1985, and still is in breach of, the Pension Benefits Standard Act, reference T, and has acknowledged this at reference W. Bill C-78 in 1999, reference P, introduced significant amendments to the CFSA which included the flexibility to create a pension plan for the Reserves through regulations as recommended in 1995 at references H and W.
8. In Sep 1999, reference N, the Minister of National Defence directed that a Reserve Pension Plan be implemented. To that end, a project was started. It is reasonable that the CF had the capability to have had regulations enacted to create a Reserve pension within 12 months, by Sept 2000.
9. Two of the four phases of Reserve Force Pension Project were completed, reference N, when a proposal was made to stop the stand-alone pension project. A review of the CFSA to redefine pension arrangements for either full-time or part-time was commenced. AFC, 27 Feb 01, Record of Decisions, reference O, pension plan for the Reserve states “AFC agreed with the intent to modernise the CF pension plan to accommodate both full time and part-time service provided it can be accomplished without incurring additional delays.” Replying to SCONDVA in the 2002 Annual Report on QOL, reference L, it was stated that The Reserve Force Pension Project has been combined with the Canadian Forces Superannuation Act (CFSA) Review Project to establish the CFPMP. This required new legislation, reference R, Bill C-37, Nov 2003. Based on where we are today, the decision of AFC in Feb 01, has been ignored.
10. In 1992 legislation was enacted for pension accessibility for all Federal employees except Reserves. In 1999, new legislation was enacted to establish a Reserve pension. A Reserve pension has not been established to date, seven years later, violating the PBSA and the intent of Bill C-78. The Department has already failed to deliver a Reserve pension despite numerous broadly communicated CIF dates. The Mar 07 CIF date appears to be in jeopardy. CMP will not answer a direct question regarding CIF date of Mar 07. The Mar 07 CIF should be full implementation, not a token CIF. The Reserves are integral to CF Operations, and three Reservists have been KIA without CFSA availability to their beneficiaries. Some Reserve personnel must make life decisions regarding SISIP rehabilitation benefits which will only be granted once they are released from the CF. If they take that release before CIF, they will not be entitled to CFSA.
11. Reservists will be charged 7% compound interest on buyback of pension contributions. That is a violation of the PSSA, and the CFSA, references U and V, and indeed what Members of Parliament, reference S, are charged. The current rate in all cases is 4% simple interest. An example of $100,000 total pension buyback amount (including 7% compound interest on contributions for all years to 2000) owing as of 2000, delayed payment to the CIF date of 2007, is an astronomical $60,578 in additional compound interest. Compound interest of 7% is punitive.
12. While awaiting CIF some former Reservists will be drawing income from their RRSPs that will have to be in some cases, completely liquidated to buyback the Reserve pension. This draw down will mean a diminished rate of return even at the same interest rate, of the reduced principal value of the RRSP. Concurrently 7% compound interest will be accumulating on the buyback amount. Doubly punitive.
13. I anticipate thousands of requests for Redress of Grievances upon CIF if the provisions of the Reserve pension do not match current government plans and legislation.
14. At this late date, Reservists are now being advised to acquire their pay records from archived records. At the same time they are being advised that the RDS pay records from 1976 to the implementation in 1998 of the RPSR have to be reconstructed and will not be available by CIF. Library and Archives Canada, in Jan 2006, advised “Please keep in mind that due to the lack of legislation governing record keeping practices, militia records were often destroyed.” Written requests to archives receive a reply that “clients should expect to wait six months for a response.” Why this is now being communicated to Reservists, and the fact that RDS records must be reconstructed, three years after Bill C-37 was enacted, and four months from the Mar 07 CIF date is truly remarkable.
15. References X and Y are my 1998 request for Redress of Grievance regarding the denial of the right and opportunity to contribute to a Reserve pension plan. The then- CDS’s reply took 43 months to state, “I support your grievance, however I do not have the authority to grant redress on this matter” due to current CFSA regulations. All legislation is now in force, has been since 1999, and a Reserve pension is still not in force.
16. Reference Z, while not on the subject of pensions, rather restricted release policy, states at Para 3: “The MND, CDS, and ADM(PER) have made it quite clear that indiv mbrs of the CF will not suffer as result of poor administration or bad advice of either the chain of command or NDHQ directorates.” Has this policy changed?
17. Two Principals of Leadership: “Keep subordinates informed; explain events and decisions” and “Treat subordinates fairly; respond to their concerns; represent their interests” must be executed.
18. Reservists cannot discern the information they require to make life time decisions, due to a distinct lack of communication of explicit facts. Very little conclusive information is available on the CFPMP website. The PowerPoint presentation is current as of March 06. The CF Pension Home Page, Calculating Your Pension, is horribly out of date, and is limited to some members of the Regular Force only. There is no information on how to calculate buyback other than it will be calculated with 7% compound interest. Is the Reserve Force Retirement Gratuity grandfathered for current members as stated at reference N? There is a wall of secrecy. There would be many questions on the fairness of the Reserve pension, if Reservists knew the facts. We do not.
19. Reservists must be equal members of the CF. A Reserve pension must be non-discriminatory and equitable. The Department must reverse the punitive 7% compound interest to be charged on buyback to the current 4% simple interest rate. The Department must not compel Reservists to pay any interest charges on buyback commencing Sep 99, when Bill C-78 legislated a pension for Reserves. It is the Department that failed to bring in a Reserve pension. Reservists must not pay the penalty IAW reference Z.
