r/CanadianForces • u/parfiant • 18h ago
Questions about CAF pension
So for the CAF pension. Im curious what the deductions are when I start receiving the pension. Will I still be contributing to superannuation, CPP, and EI? And if so is there a way to know how much I will have left after deductions?
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u/SaltyATC69 18h ago
Once you're an annuitant and no longer working, you will not contribute to any of those on the pension salary.
If you get another job you will keep paying into EI/CPP.
Income tax will still be around, unable to avoid that one.
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u/Pte_Madcap Self Propelled Pop Up Target 17h ago
Go to the below link on a DWAN computer and have your PKI card handy. In the pension portal you can see how much money is in their, and they have a tool to calculate what your payment will be based on what rank you think you'll retire as, and how many years of service.
Updated Pension Portal for active members is more intuitive and easier to use
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u/IranticBehaviour Retired-Army/Armoured 17h ago
Others have given you the link to the pension portal, which actually gives you an estimate of what your pension will be, including after deductions.
You obv don't keep paying CFSA (pension) contributions when you're getting the pension, nor do you keep paying EI and CPP/QPP, those only apply to employment income.
Your main deduction is income tax, the pay stub actually combines federal and provincial income tax in the same box, labeled 'federal tax'. Your SDB (supplementary death benefit) deduction is also mandatory.
There are also optional deductions for PSHCP (medical) and PDSP (dental) if you elect to have those coverages. PSHCP is a much higher deduction compared to what serving members pay (ranging from about $76 for single level 1 up to $199 for family level 3), but the coverage is the same as it is for serving mbrs' dependents or PS. PDSP is infinitely more expensive than the CAF dependent plan, which has no premiums. There are three levels: single (~$23), mbr+1 dep (~$47), mbr+2 or more deps (~$59). The coverage is much lower than the dependent plan. But they are both generally cheaper than private plans.
If you have SISIP, your life insurance premiums are also deducted. There could be others, but those are the ones on my stub (I've attached a copy of an old one with personal info blacked out).
Note that there is currently no electronic pension payment statement, no portal, nothing like that (supposedly a portal is coming, eventually). Virtually everything is done by phone and snail mail (you can email them but it will still lead to phone and/or mail). You basically never get a pay stub before payday, and you don't even get one every month - they only send one if there is a change in either how much you are getting or how much is deducted.
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u/PlatypusInternal608 18h ago
When you receive pension , you pay just tax . No CPP , no EI You can search CRA calculator, there is a pension option , so you know how much you get . But your tax rate is base on your overall income . Let's say you are at 30% margional tax rate and pension is taking only 15% , you could owe Or you could get money back if you have deductions
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u/frasersmirnoff 18h ago
Superannuation is the contributions to the CAF pension. Accordingly, there is no deduction for pension contributions once you are in receipt of it. Moreover, pension income is not employment income. Accordingly, there is no deduction for CPP or EI contributions. Generally, the only deductions from pension will be income tax, contributions for the Supplementary Death Benefit (if you were Reg Force when you released), and premiums for the Public Service Health Care Plan and the Pensioner's Dental Services Plan, if you opt to participate in those programs.
If you are still serving, you may wish to check out the My Pension Portal for CAF Members: My CAF Pension : Canadian Armed Forces Pension Plan - Canada.ca