![]() ![]() Since the public service pension plan is coordinated with the CPP/QPP, employees contribute to the public service pension plan at two rates: The maximum level is set every year by the CPP/QPP and is known as the Year's Maximum Pensionable Earnings (YMPE).The minimum level, known as the Year’s Basic Exemption (YBE), is set at $3,500.Under the CPP/QPP, you will pay contributions on your annual earnings between a set minimum and a set maximum level. When you are appointed to a position in the public service for an indeterminate period, or once you have worked in the public service for six consecutive months, you and your employer (the federal government) begin to make contributions to the public service pension plan. You and your employer, like all Canadian workers and employers, must also contribute to the Canada Pension Plan (CPP), if you work outside Quebec, or the Quebec Pension Plan (QPP), if you work in Quebec. When CPP/ QPP were introduced on January 1, 1966, the federal government, like most Canadian employers offering a pension plan for their employees, decided to coordinate the new CPP/ QPP with the public service pension plan so that its employees would not have to set aside a greater proportion of their salary for retirement savings. Your public service pension plan is coordinated with the Canada Pension Plan or Quebec Pension Plan ( CPP or QPP). What happens if the division is approvedĬanada Pension Plan/Quebec Pension Plan coordination.Who is eligible for pension benefits division.Example of the effect of indexing on your pension. ![]() Effects of re-employment on indexing benefits.Why protection from inflation is important.A pension benefit calculation for someone who worked part-time.A pension benefit calculation for someone who worked full-time.Choosing an early, reduced CPP/ QPP benefit.Pension formula: lifetime pension and bridge benefit.Canada Pension Plan/Quebec Pension Plan coordination.The Canada Pension Plan or Quebec Pension Plan provides basic retirement income to Canadian workers. For details, refer to the Old Age Security (OAS) Program. The Old Age Security benefit is payable to Canadian citizens who meet certain residency criteria. The government pension plans, that is, Old Age Security (OAS) and the Canada Pension Plan or Quebec Pension Plan (CPP or QPP) and.When you retire, your retirement income generally comes from three sources: ![]()
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