Pension Indexing

[06Honda]

I turn 60 this summer & was trying to get a ball park figure if possible as to what I can expect for my penison increase (indexing this June). From a couple of google searches it talks about indexing is based on a comparison of the Consumer Price Index (CPI). I served 20 years from 1980-2000 leaving with the rank of Mcpl. Would I be looking at maybe $200 bucks approx as I am considering taking CPP early (indicates $600 currently) also and reduce my work hours to part time. I understand the amount gets paid until 65 then stops. Would the increase be similar to the bridge amount of the monthly payment? Any info of feedback is appreciated, thanks.

 

[PPCLI Guy]

Are you sure you are entitled to indexing? Less specific circumstances, the "magic number" is 85, based on age + years served.:

Indexing—Canadian Armed Forces pensions

• Persons whose number of complete years of pensionable service when added to their age totals 85 commencing at:
  1. age 55, if pension is based on 30 or more years of pensionable service
  2. age 56, if pension is based on not less than 29 years of pensionable service
  3. age 57, if pension is based on not less than 28 years of pensionable service
  4. age 58, if pension is based on not less than 27 years of pensionable service
  5. age 59, if pension is based on not less than 26 years of pensionable service
  6. age 60, if pension is based on less than 26 full years of pensionable service
• All survivor allowance recipients, including children, regardless of age
• Persons in receipt of a pension who are under 60 years of age and who:
  1. were disabled, as defined under Part I of the CFSA or para. 43(1)(d) of the RFPPR, as applicable, at the time of their retirement from the Canadian Armed Forces
     Note: Members who were released on medical grounds prior to April 1, 2021 are not automatically entitled to the increase and must qualify under paragraph ii below or based on their complete years of pensionable service when added to their age as described above
  2. have become disabled to the extent that they are incapable of regularly pursuing any substantially gainful occupation

 

[NavyShooter]

Good point PPCLI Guy.

Now, in terms of dollars and cents, looking at the CPI from StatsCan, I see that since 2000, the CPI has gone up by 136%. (2002 was 100%, 2000 was actually 95.4%)

So, take your monthly benefit, and multiply by 1.36 - approximately.

Thus, if you're receiving $2000 a month right now, you'd see an additional $720 per month, if you're eligible for indexing right now.

When you become eligible for CPP, the Bridge Benefit does cease - and unless you take your CPP early, you should see a dollar for dollar equivalency in your total pension income between your CAF pension and your CPP.

NS

 

[Colin Parkinson]

I took early retirement from the Public Service, had I known that my daughter was going to get diabetes and a pandemic would hit, limiting my work options, I would have opted to stay in. Unless you have a skillset that is in high demand, you might want to reconsider pulling the pin this year as it is unlikely you find another career that pays similar.

 

[Weinie]

Are you sure you are entitled to indexing? Less specific circumstances, the "magic number" is 85, based on age + years served.:

Indexing—Canadian Armed Forces pensions

• Persons whose number of complete years of pensionable service when added to their age totals 85 commencing at:
  1. age 55, if pension is based on 30 or more years of pensionable service
  2. age 56, if pension is based on not less than 29 years of pensionable service
  3. age 57, if pension is based on not less than 28 years of pensionable service
  4. age 58, if pension is based on not less than 27 years of pensionable service
  5. age 59, if pension is based on not less than 26 years of pensionable service
  6. age 60, if pension is based on less than 26 full years of pensionable service
• All survivor allowance recipients, including children, regardless of age
• Persons in receipt of a pension who are under 60 years of age and who:
  1. were disabled, as defined under Part I of the CFSA or para. 43(1)(d) of the RFPPR, as applicable, at the time of their retirement from the Canadian Armed Forces
     Note: Members who were released on medical grounds prior to April 1, 2021 are not automatically entitled to the increase and must qualify under paragraph ii below or based on their complete years of pensionable service when added to their age as described above
  2. have become disabled to the extent that they are incapable of regularly pursuing any substantially gainful occupation

Your pt 6 above would seem to sp his contention, as the caveat "not" is not included in the descriptor. Maybe a cut and paste bobo

 

[Good2Golf]

Your pt 6 above would seem to sp his contention, as the caveat "not" is not included in the descriptor. Maybe a cut and paste bobo

No. 85 is still the magic number, so in the OP’s case, they won’t get indexing until 65 (ie. 65 + 20 = 85).

Essentially, indexing and any ‘equivalency’ of said bump to balance the bridge payments, is a moot question, since OP’s indexing will commence after the CFSA bridge payments cease.

 

[Blackadder1916]

No. 85 is still the magic number, so in the OP’s case, they won’t get indexing until 65 (ie. 65 + 20 = 85).

No, indexing will start at age 60.

Indexing - Plan information - Retired member - Canadian Armed Forces pensions - Canada.ca

This page provides information about indexing to members of the Canadian Armed Forces Pension Plans.

www.tpsgc-pwgsc.gc.ca

When will my Canadian Armed Forces pension first become indexed?
Normally, on the 1st of the month of your birthday, between the ages of 55 and 60, depending on how many full years of pensionable service you have to your credit.

The first increase will never commence later than age 60. If, prior to your normal entitlement age, you become disabled and are in receipt of Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) disability benefits, contact the Government of Canada Pension Centre to apply for early indexing.

 

[Good2Golf]

clearly not enough coffee downrange for me...missed seeing no “not” in the “less than 26 years...” eligibility clause...

 

[Blackadder1916]

clearly not enough coffee downrange for me...missed seeing no “not” in the “less than 26 years...” eligibility clause...

Easily done. I kept misreading it for a few years and when my pension suddenly increased when I turned sixty, I called the pension folks to clarify and they explained it to me like I was an idiot.

 

[Weinie]

Easily done. I kept misreading it for a few years and when my pension suddenly increased when I turned sixty, I called the pension folks to clarify and they explained it to me like I was an idiot.

Yes, but a better off financially "idiot"