INDEX

Articles:
     Are Canadians At Risk of Outliving Their Pensions? - A review by the ACER-CART Pension Committee.
     Pension Splitting - 2007 tax returns with pension splitting, some rewards and cautions.
     Tax Option Costs Ontario Senior Rent Relief - A diligent tax preparer and his Ontario clients have
     discovered a major detriment to using the new pension-splitting strategy. 

Briefs:
      ACER-CART Request: To Minister of Justice for a National Securities Regulator, December 28, 2009
      CNSO: Response to Special Senate Committee on Aging, July 31, 2009
      ACER-CART Brief: The Federal Role in Health Care, November 22, 2008
      ACER-CART Brief: To Minister of Finance, November 4, 2008
      CNSO: Submission to the Special Senate Committee on Aging - 2nd Interim Report,  June 2, 2008
      ACER-CART Brief: To Standing Committee on Finance, October 6, 2005

Media Releases:
     October 6, 2005 - Presentation to federal pre-budget consultation hearing
     October 14, 2005 - Support for BC Teachers' Federation in provincial bargaining
     May 25, 2010 - 5th Annual World Elder Abuse Awareness Day - June 15

Other:
Report: National Seniors Council on Low Income Among Seniors - February, 2009
Final Report:  Special Senate Committee on Aging: April 2009
Final Report : Senate Standing Committee on Social Affairs, Science and Technology on Population Health - June 2009
Cost of Living Adjustment - by Owen Corcoran, BCRTA Past President
Some Major Features of Canadian Teacher Retirement Plans 2007-08
Major Features of Canadian Teacher Retirement Plans 2009 Click HERE for the information.
Uniform Improvements Recommended for Enduring Powers of Attorney in the Four Western Provinces
 

COST OF LIVING ADJUSTMENT

by Owen Corcoran, BCRTA Past President

This article first appeared in the BCRTA Spring 2005 edition of Postscript and is published here with the permission of Owen Cocoran.

Great news! You are to receive a 1.8% COLA [Cost-of-Living Adjustment] to your pension this year.

If you are fortunate enough to receive a $45,000.00 p.a. stipend this works out to an increase of $810.00 annually, before tax - and any claw back on your Old Age Pension and escalation in your Pharmacare deductible.

Don’t get me wrong! I consider the 1.8% COLA a reasonable increase, especially when one considers what our working partners - the teachers and administrators in our public schools- will receive.

But, as you sit huddled over your one bar electric heater, wondering if you should remove your gloves so you can grip your pencil more tightly and actually press the keys of your calculator while you plan how to allocate the cola amount, consider this.

Currently a federal commission is recommending that judicial salaries be raised by 10% this year, plus additional cost of living increases in each of the next three years. Under reforms passed by Parliament in 2001, the salary of federal politicians is tied to that of the judiciary, meaning that the foregoing raises will go to MPs and senators as well. This move could top 16% over the next four years if one incorporates the annual and automatic cost of living increases.

No! No! Don’t ask me about the Governor General’s budget, the $43,448.00 rose garden and the $5.3 million junket to Russia, Finland and Iceland. Her second Northern Tour has been put on hold by the feds. Surely she has given enough!

Some facts:

1. MPs are currently paid $140,000.00 per year. This places them in the top 3% of Canadian Income earners.

2. Three years ago, federal politicians voted themselves a 20% raise [the Prime Minister’s raise was 42%], Since then, those salaries have increased by another 7.3% - a total 28.5% increase since 2000. How does your COLA increase look now?

3. The recommended 10% increase would jump basic MP salaries to $155,100 this year. And it’s retroactive to April 2004. How does your COLA increase look now?

4. The annual cost-of-living additions will see the basic salary rise to $165,000.00 by 2007. A 16.7% boost over four years. How does your COLA increase look now?

5. My Grade 9 granddaughter did the math for me as the amounts and the percentages were befuddling. Her calculation - a 50% increase in MP basic salaries since 2000. How does your COLA increase look now?

If only this remuneration were reflected in the wisdom and practicality of the laws and decisions which the recipients produce, the universal health care system they control, etc. Perhaps then my jaundiced eye would uncloud, my COLA would look much more reasonable, and I would view the recipients as models of Plato’s Philosopher King.  If only!!!

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A. Benefit Levels Across the Provinces

Prov.	Minimum Service for Pension	Maximum Service Credited	Retirement w/o Reduction Earliest age + (Age & Service Combo)	Earliest Retirement (reduced benefit)	Re-employment as Teacher without penalty
BC	2 years	35 years	60   (combined 90)	age 55 with 3% reduction per year less than 90, or age 60, whichever is less, deferred 5%	No limit, but cannot contribute if collecting pension. Other options available.
AB	5 years	Unlimited after 1991	65 and combined 85	2% per point short of 85 index  or per year short of age 65, whichever is lesser	Up to 60%/year, but cannot contribute once retired.
SK old plan	1 year	35 years	65; Combined 85 or 60+20 or 30 years eligible service (no age requirement); part-time 65; counted	age 55 with 20 eligible year (reduction of .25%/month prior to age 60)	No limit, but cannot contribute.
SK new plan	1 year	Unlimited after 1991	Combined 85 or 60+20 or 30 years eligible service (no age requirement). Part-time counted	55 with 1 eligible year (reduction of .25%/month prior to age 65)	No limit, but cannot contribute.
MB	2 years if less than 10 years, benefit is reduced re service before 1985	Unlimited 70% of salary limit to pension	Age 55 with 10 (where age + service = 80)	age 55 with 10 eligible years Bridging benefit provided equal in value to reduction.	Up to 120 days under contract
ON	2 years	Unlimited after 1991	65; combined 85 (no age requirement)	age 50 with 2.5% penalty short of 85 points.	First 3 years, up to 95 days, thereafter, up to 20 days.
QC (RREGOP)	2 years	35 years	60   ( 35 years of service)	age 55,  2 years service, 4% penalty per year	If plan member prior to 1983, no restrictions. Penalty thereafter.
NB	5 years	35 years	65 Combined 87 or 35 years service  (no age requirement)	Combined 80 or 60 with 5% penalty per year	Up to 80 days/yr of supply teaching with Dep. Minister approval.
NS	2 years	35 years	65, Age 55 and combined 85 or 35 years service (no age requirement) or  60 with 10 years.	55 with 20, 50 with 30, 5% penalty per yr that age less than 55 or service less than 35, whichever is lesser	69.5 days/year
PE	5 years	Unlimited	60,  Age 55 with 30  or 35 yrs service (no age requirement)	reduced 1/4% per month for ages 55-60 without 30 years service or under 60 years.	No supply teaching restrictions; pension suspended if on contract
NL	5 years	Unlimited to age 60; maximum 30 if partly acquired after 60.	60   55 with 25 or 30 worked years (no age requirement)	29 worked years + 1 study year (no age requirement)	65 days/year and/or up to 19 consecutive days. A maximum 1 year contract with ministerial approval.

B. Indexing Across the Provinces

C. Qualifying Service Across the Provinces

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MEDIA RELEASE - October 6, 2005
This media release concerns the appearance of the Executive Director of ACER-CART before the Standing Committee on Finance in a pre-budget consultation. It can be viewed as a PDF file HERE.

MEDIA RELEASE - October 14, 2005
This media release is a call upon the government of BC to enter immediately into discussions with the BCTF to resolve the current bargaining impasse. It can be viewed as a PDF file HERE.

MEDIA RELEASE - May 25, 2010
This article draws attention to the plight of the elderly on the occasion of Elder Abuse Awareness Day which falls on June 15 each year. It can be viewed as a PDF file HERE.

ACER-CART RECOMMENDATIONS: To Minister of Justice, December 28, 2009
The request was contained in a letter to the Minister of Justice (PDF file) with recommendations for the establishment of a National Securities Regulator and other ways to improve investment security for investors. A background paper can be seen HERE (PDF).

ACER-CART BRIEF: Federal Role in Health Care, November 22, 2008
This brief was presented to the Prime Minister. It reflects issues raised by ACER-CART members at their 2008 annual general meeting. It suggests there is an important role for the federal government to play in the health care provided to Canadians. It can be viewed as a PDF file HERE.

ACER-CART BRIEF: To Minister of Finance, November 4, 2008
This brief, based on issues from the 2008 AGM, was sent to the Minister of Finance for pre-budget consideration
It can be viewed as a PDF file HERE.

ACER-CART BRIEF: To Standing Committee on Finance, October 6, 2005
This brief was presented to the Federal Standing Committee on Finance at their pre-budget consultation  hearings. It can be viewed as a PDF file HERE.

Report: National Seniors Council on Low Income Among Seniors - February, 2009
It can be viewed as a PDF file HERE.

Final Report: Special Senate Committee on Aging - April, 2009. A comprehensive vision for government, organizations and individuals to embrace the challenges of an aging population.
It can be viewed as a PDF file HERE. 
The CNSO response to the report can be viewed as a PDF file HERE.

Final Report : Standing Senate Committee on Social Affairs, Science and Technology on Population Health - June 2009 This report addresses many issues of concern to ACER-CART and its CNSO partners. It can be viewed as a PDF file HERE.

Example Letter to Members of Parliament on Pension Splitting
This is an example of a letter that can be used to send to Members of Parliament on Pension Splitting.
It can be viewed as a PDF file HERE.

Uniform Improvements Recommended for Enduring Powers of Attorney in the Four Western Provinces
This BC media release recommends improvements in the EPA statutes of all four western provinces to address common issues. It can be viewed HERE.

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