Severance Pay/ Buy out

[glfwa1]

Hello All,

Hope everyone is well and being safe out there where ever you are right now

Just have a question/options/feedback on the Severance Pay/ lump pay buy out?

Not looking to do with the $ as I going to put into an RRSP just wondering how soon I should do that?

I am expected to be released next feb 2013 with 19 years and I be a 3B release?

should I take the $$ today or wait until I am release?

I was told the pay rates will be 2011 if I take today vs when I get release they be 2013 not talking BIG $$ here in the big pic but I wasting time on my $$ working for me vs the GOV.

I was also told time lines are a mess on when I could see the funds but if I wait until release they MUST transfer $$ faster vs the payout and lack of  staff to do the claims?

Any one out there with some other info or info I have not correct or misleading ?

I llooking to do this right as I leaving the militay soon and want to do the best with the $$$ and and blow it away

Cheers

Keep safe out there

 

[PuckChaser]

Any of the briefings I've heard is if you are releasing anytime in the next 3 years DO NOT take the buyout. It could delay your pension payments. We have a whole thread on this subject in the military admin section.

 

[DAA]

If the 3.b. will be a given, wait until that time.  It will be based on your rate of pay on release and you can transfer the entire amount "tax free" directly into an RRSP.  If you elect PIL, you only get a "Tax Waiver" on the first $10K and then are subject to "minimum" tax at source for the balance, provided you have a letter from CRA for that.

 

[horatio749]

Don't take it now..
I am in the same situation except I am completing a CT. I have been told by my fin section and my CC that if you elect to take the pil everything will be slowed down until the payout is complete. Seeing as the PIL office has to process everyone in the CF who is electing to take the PIL this could take much longer than if you take it on release.
Not to mention the process to take it on release is much easier/less paperwork then taking it via the PIL.

 

[ArmyGuy99]

If the 3.b. will be a given, wait until that time.  It will be based on your rate of pay on release and you can transfer the entire amount "tax free" directly into an RRSP.  If you elect PIL, you only get a "Tax Waiver" on the first $10K and then are subject to "minimum" tax at source for the balance, provided you have a letter from CRA for that.

Just released 3B (today) and your severance pay will be based on your Substantive Rank.  When they changed the rules for the PIL they changed that one too.  Arses.  Cost me $1500 pre-tax.  Since I'm Cpl/AL, I got knocked down from Cpl IPC3 to Pte IPC3.  Not very nice as far as I'm concerned.

Oh well one last kick in the ass on the way out by the system

 

[dapaterson]

Just released 3B (today) and your severance pay will be based on your Substantive Rank.  When they changed the rules for the PIL they changed that one too.  Arses.  Cost me $1500 pre-tax.  Since I'm Cpl/AL, I got knocked down from Cpl IPC3 to Pte IPC3.  Not very nice as far as I'm concerned.

Oh well one last kick in the ass on the way out by the system

However, as a medical release, you received severance up to your release date; you continued to accrue.

 

[ArmyGuy99]

DaPaterson,

That's true, my Severance Pay is calculated till my release date, and not last February.

Now to wait the next several months for $$ to show up.

 

[RunNGun]

Hey all!

I didn't want to start a new thread but I have a question that is sort of in line with this.

I released towards the end of Feb '13, everything has pretty much like they said it was going to be. Civvy jobs suck , severerance took forever (13 Weeks), and I discovered the art of fly tying to make up for all my time home.

My question is how long did most of you have to wait for your pension option package? I was told by the release clerk to expect it in 8 weeks or so. I emailed Ottawa mid-July and they got back to me 2 weeks later stating:

"Following your recent inquiry in this office regarding your Pension options after your release from the Canadian Forces, here is the current status of your file:
Before I can send you your option letter, all of your elected periods of service must be entered in our system. The election team has yet to complete your file so it's impossible for me,a t this moment, to send you an option letter with the estimated figures for your pension options.
I've talked to the people working on your election and they will prioritize your file, has we are aware that you have been released since a long time now."

It has now coming up on the end of August. It wouldn't be an issue however I Component Transfered to the Reserves (There ain't anyone there to ask, and I call the base and they just give me a run around) and can't work with them until the option has been chosen. Something about you can't contribute and elect for the transfer value. I'd like to keep my options open as I am in school this fall. Apply for ED&T again? Get on the phone and start asking some hard questions? I'm sure there are others that have faced this dilemma.

 

[RunNGun]

Hey all!

I didn't want to start a new thread but I have a question that is sort of in line with this.

I released towards the end of Feb '13, everything has pretty much like they said it was going to be. Civvy jobs suck , severerance took forever (13 Weeks), and I discovered the art of fly tying to make up for all my time home.

My question is how long did most of you have to wait for your pension option package? I was told by the release clerk to expect it in 8 weeks or so. I emailed Ottawa mid-July and they got back to me 2 weeks later stating:

"Following your recent inquiry in this office regarding your Pension options after your release from the Canadian Forces, here is the current status of your file:
Before I can send you your option letter, all of your elected periods of service must be entered in our system. The election team has yet to complete your file so it's impossible for me,a t this moment, to send you an option letter with the estimated figures for your pension options.
I've talked to the people working on your election and they will prioritize your file, has we are aware that you have been released since a long time now."

It has now coming up on the end of August. It wouldn't be an issue however I Component Transfered to the Reserves (There ain't anyone there to ask, and I call the base and they just give me a run around) and can't work with them until the option has been chosen. Something about you can't contribute and elect for the transfer value. I'd like to keep my options open as I am in school this fall. Apply for ED&T again? Get on the phone and start asking some hard questions? I'm sure there are others that have faced this dilemma.

Hi,

Thought I'd follow up on this post with my experience so far in hopes to provide info with anyone else experiencing this.

    After posting to here and digging for answers I followed someone elses advice to another topic and contacted the Ombudsman's office. I just want to start by saying it has been an absolute pleasure to deal with them! To finally feel like you have SOMEONE that will listen to your case and actually find answers! I first contacted them in September and I wish I had done it sooner. Swallow your pride and DO IT! That's my advice to anyone being screwed and feel that this might be a solution. They are there to help!

    Reading about the suicides by members and former members of the CF reminded me of all the hardship I, and my family, are faced with right now. I can say I can see at least a glimpse of what  those members were facing. What was suppose to be a simple CT, has turned into a waiting game of lost paperwork, misunderstandings, and the stress of wondering why I spent 12 years of my life working my *** off to be pushed aside because I felt my part was done. I went on tours, galavanted around the world as my wife would say, now I feel my skills could be better spent along side the civilian populace while keeping a link to the CF and share my knowledge with new soldiers through the Reserve.

    I read my previous post and I sounded pretty positive then. Things have gone back and forth since... I started getting answer once the Ombudsman's office got involved. From the get go they identified something was seriously wrong. Turns out the Pension office lost my file. Some how there was no indication I had even released! I was told leaving the regs a CT back to the Reserve, unlike coming from, was handled like a full release and that I should see a letter with my pension options in 8 weeks. I am coming up on one year and still nothing.

    After a lot of phone calls in the tryst between the Ombudsman's office, Pension Services, and myself, things sort of got back on track. It was identified as well that a Reserve Pension Buy-back was initiated but never finalized in 07, that period when things were messy for the Reserves WRT pension, and money was never taken for it. It is now November. I was emailing, calling, and faxing paperwork(at my own expense) as fast as Pension services would contact me with anything! I didn't want things to bog down.

    Not for my lack of trying things have again stopped. Why I don't know. You'd figure 3 days to get a response by email, even just a "We're looking into it" would be enough. Forget calling. Just like EI the phones are jammed or numbers don't even allow incoming calls. The Ombudsman's office called me for a follow up on my case and is looking into it again! Thank God!

    It is now 2014. Coming up on 1 year of leaving the Reg. Force. Work here has dried up. Working out west is an option but not a solution. We were out there before the CF... Putting my family first has been the main goal in my life since our youngest was born. The first birth I ever actually seen (Outta three kids! Ha)

My current status is still the same as when I left in Feb 13. Still in debt. Still waiting for my pension options as per my financial ad visors advice, still fighting.

    I want to share this, not to air dirty laundry or hate on the CF. I loved my former life. I hear from guys I served with almost daily. It's a great bond and make sure if you can stay in touch with someone wether your still in or they are to do it! I want to share this so if anyone else is feeling like they don't have someone that can fight for them on the inside. You do. The support is there, sometimes you just need a push in the right direction to find it.