Legal Fees (Assorted Topics)

Yes, got ya, but to be honest, going forward I'm not too concerned about! My major concern is the compound interest of past payments! I'm no accountant, but basic math tells me that the magic of compound interest is very relevant in this case! I just can't see them not applying the 2% in a compounded manner, that being said, nothing would surprise me at this stage! It would just be a giant kick in the nuts and bolts!

To clarify what Beleaf means is, say you were released in 2007 and were were supposed to get $10000 for LTD, but were a zero sum client.

2008 = $10000
2009 = $10000 + 2% = $10200
2010 = $10200 + 2% = $10404
2011 = $10404 + 2% = $10612
2112 = $10824, etc
so in five year the annual benefit has increased by over $800. Now imagine that over 20 years.

what ever amount you get increased each year a person will lose 7.5 of it... so if check goes up 40 bucks in january you will lose 3 dollars because lawyers... so basicly your increase will be 37.00 and lawyers increase 3 ... but on paper it will still show getting 40

Man, that is inside out, lol!! I'm assuming you're referring to the 7.5 per cent ongoing legal fees to be paid into the future!

ether way it would always be 7,5% that would never increase.... the only increase is what ever extra you get , the lawyers will get 7.5 % extra from your increase....... their 7.5% will never go higher... when you get a raise the layers get 7.5% of raise..... this is only if they decided to take future payments

Yes, that makes sense!! So, taking into consideration that the 14//15th of Feb is around the corner, will somebody be able to give me a straight answer on this? It seems nearly impossible to get in contact with anybody on the legal team or at Manulife, who can legitimately answer this question! 7 per cent compounded annually over 7 years doubles any investment, so 2 per cent compounded annually over 7 years adds nearly 1/3 to a base amount! That is a significant amount of money in my books! 10 Grand in 2006, compounded at 2 per cent would be worth almost 13 Grand today, if not a little more. It seems somewhat astounding that the lines of communication are so restricted when one needs simple answers to very important questions! It took me over a week to get a call back from one rep, I missed the call and I haven't heard anything since then, that was another week ago! I don't get it man!

I believe the COLA would be compounded, since while on SISIP, the COLA is based on the amount received the previous year, which included any previous COLA adjustments. These increases should be separate and completed before any interest is calculated, because, if retro is payed over many years, if interest is calculated without taking COLA adjustments over the time period into account, it would lower the Veterans benefits considerably.

You have me confused, do you know what compound interest is, it has nothing to do with the 7.5 that u mention

regarding cola i dont think it be that much more of a loss.. cola happens on full amount of sisip payment.. cola amount on 7.5 is not much if you consider cola on full amount....

The COLA for SISIP is no more than 2 per cent, that's by law, my concern is compound interest! When compound interest is added up year after year, even at 2 per cent, can be a significant amount!

I'm sure the 7.5% would include the COLA, but it would not be significant. With the new rules in place so that the SISIP will pay a minimum of 75% of a base Cpl pay (at start), it would still not account for much. On SISIP LTD of around $50000 annually, 7.5% is only $3700 for the year, but I doubt many of the class will be getting that much annually.

Will the SISIP 2% that's being applied for retroactive years be compounded from any given year? For example, I was zero summed in 2005, will that 2% from 2005 and subsequent years be compounded up to the payment date vice simple interest? I'm assuming that it will be compounded, how they could not pay compound interest vice simple interest would be a travesty for all affected members!!

mfors2222, you are too funny!

sparrow you can have chocolate bar only if you give 7.5 % to the lawyers and also give them 7.5 percent of all future chocolate bars.... but if you decide to go on diet and never eat chocolate again then you have to give lawyers 17.83 now because lawyers will never get piece again since you go on diet

i understand the proposal as given, 17.83% now.

if the firm was to take a confirmed 7.5% going forward until we reach age 65 and payments cease,

would this not actually be 7.5% compounded by the eligible years left ?

shown as 7.5% x cost of living adjustment (max 2% per year)..