Re: OLD AGE SECURITY

by propat Mon 01 Jul 2019, 09:13

hey unknown ;

24 (1) If, during a calendar year, an amount from a prescribed source referred to in subsection 22(1) or 23(1) or (2) is paid other than on a monthly basis, it shall be converted into an amount payable for a month by dividing the total amount paid from that source by 12 and

(a) if it relates to the calendar year in which it is paid, shall be considered for the purpose of that calendar year;

(b) if it relates to a previous calendar year, shall be considered for the purpose of that previous calendar year; and

(c) if it relates to a subsequent calendar year, shall be considered for the purpose of the calendar year in which it is paid.

so ya one year .

in a simple situation it may be best to take the buyout . just gotta do all the math first to make certain that is best .

propat

by johnny211 Sun 30 Jun 2019, 18:46

Air log and unknown Soldier - Agree with you both. I did a machinist crse thru Voc Rehab 4 yrs ago. Did quite well and loved the work. Then after 4 months at an awesome job I loved doing, I realized that my ptsd and memory issues where too hard to hide. I would read manuals, then forget things the next day. Hardest day of my life, when I had to admit to myself and others, that due to my service injuries, I’m done of work. So ya I too would have loved to carried on in my new career, but life goes on..VVV

by Unknown Soldier Sun 30 Jun 2019, 15:18

AirLog wrote:I agree with you Unknown Soldier. Better off healthy and in a good family relationship and surviving each month financially than living alone and miserable but financially secure. At least this person is financially secure. I am one of the fortunate ones where I am better off with my VAC benefits as compared to a 35 year pension. I am also fortunate to have a great family in my journey of life. With all of this said, I would give all the financial benefits up to be 100% healthy again. I have a very shortened life expectancy so all the money in the world can't make be 100% better again. I am only hoping that I can make it to 65 years old. This way when I pass my spouse will have better benefits as compared to if I pass before 65. Happy Canada Day one and all!

AirLog

make the most of the rest of your life. I am on the other side of the coin, also financially secure, but lost everyone close to me along the way, l struggle each day to find a purpose, I had a civilian job at one time, but now even that is gone, it could never compare to the friends , situations of the military . Now l feel lost, without direction. Money can’t buy happiness when you’re alone , but it does help out a family.

by AirLog Sun 30 Jun 2019, 14:23

I agree with you Unknown Soldier. Better off healthy and in a good family relationship and surviving each month financially than living alone and miserable but financially secure. At least this person is financially secure. I am one of the fortunate ones where I am better off with my VAC benefits as compared to a 35 year pension. I am also fortunate to have a great family in my journey of life. With all of this said, I would give all the financial benefits up to be 100% healthy again. I have a very shortened life expectancy so all the money in the world can't make be 100% better again. I am only hoping that I can make it to 65 years old. This way when I pass my spouse will have better benefits as compared to if I pass before 65. Happy Canada Day one and all!

AirLog

by Unknown Soldier Sun 30 Jun 2019, 13:56

Guest wrote:Counterpoint:
There is SOME of us getting Cdn Force pensions, Veteran affairs pensions tax-free, Veteran affairs Pensions for life tax-free, then at 65 (the Canadian pension plan, Old age pension), Protected monthly amounts old CIA amounts to $1645 per month. Veteran independence program $3500 per year, Pain and Suffering monthly income, Additional Pain and Suffering tax-free. Disability awards totally $150000, also I got $ 210000 before taxes and fees from the Dennis Manuge lawsuit, Medical travel paid home modifications. All my medical, dental costs are covered. Wife and kids can talk to professional to help cope with me. All pensions and benefits index to cost of living. I can even apply for more and appeal etc.
At 65 I will lose $1200 dollars after taxes per month.
All this for being injured in service. I was an Mcpl I was making $49000 per year. Now my total pension etc income is 2.5 times what a CWO Infantry soldier pension has after a 35-year career. (I know he is my father in law) So take back $1800 I will survive.

I would rather be well off and miserable than scrapping by and miserable. If I wasn't injured in service I am sure I would be financially struggling.

maybe so, but there are veterans who get all that money and the only thing different is that their spouse and kids can’t “ cope” with them and they are now estranged. They may make more now than they ever would have if they did a full career and never contacted PTSD...but they would also still be living in the same house as their family. I think the majority of those veterans would rather be “ scrapping” but surrounded by loved ones, than wealthy ,but alone. IMO

by Guest Sun 30 Jun 2019, 12:54

Counterpoint:
There is SOME of us getting Cdn Force pensions, Veteran affairs pensions tax-free, Veteran affairs Pensions for life tax-free, then at 65 (the Canadian pension plan, Old age pension), Protected monthly amounts old CIA amounts to $1645 per month. Veteran independence program $3500 per year, Pain and Suffering monthly income, Additional Pain and Suffering tax-free. Disability awards totally $150000, also I got $ 210000 before taxes and fees from the Dennis Manuge lawsuit, Medical travel paid home modifications. All my medical, dental costs are covered. Wife and kids can talk to professional to help cope with me. All pensions and benefits index to cost of living. I can even apply for more and appeal etc.
At 65 I will lose $1200 dollars after taxes per month.
All this for being injured in service. I was an Mcpl I was making $49000 per year. Now my total pension etc income is 2.5 times what a CWO Infantry soldier pension has after a 35-year career. (I know he is my father in law) So take back $1800 I will survive.

I would rather be well off and miserable than scrapping by and miserable. If I wasn't injured in service I am sure I would be financially struggling.

by Unknown Soldier Sun 30 Jun 2019, 11:23

propat wrote:correct ..

propat

and it wouldn't carry over to future years even though the lump sum is twice as great as ELB? In a situation like that, I guess it would be better to take the lump sum, as you would only be penalized for one year,vs taking a monthly pension that would be subtracted from ELB for years and years.?

by propat Sun 30 Jun 2019, 09:26

correct ..

propat

by Unknown Soldier Sat 29 Jun 2019, 17:13

propat wrote:if im not mistaken for any deductible lump sum amount they would divide it by 12 and only deduct over the course of one year .

propat

okay, again for simplicity sake, if the private pension lump sum was $120000, I guess that would mean ELB would have to be shrunk by $10000 a month, which would be more than ELB, so ELB would still be reduced to 0 for the year....but the veteran would still have $120000 in the bank..?

by propat Sat 29 Jun 2019, 14:56

if im not mistaken for any deductible lump sum amount they would divide it by 12 and only deduct over the course of one year .

propat

by Unknown Soldier Sat 29 Jun 2019, 12:53

AirLog wrote:This question I can answer. Short answer "Yes." If you look at what "Offsets" are private pensions are included in the definition of offsets. So, as with me, our private pension plans (not sure about RRSP's) are used as offsets.

AirLog

Some of these private pensions ( maybe them all?) provide the veteran with an option, one is a monthly amount and the other is a lump sum. If you do the math, in most cases, depending on the veterans age, the monthly sum will add up to more money in the long run. But if the veteran has an illness that makes them feel they will not live to 60-90, perhaps the lump sum would be the better option. That being said, what if a veteran was receiving ELB and then decided to take that private pension. Lets use made up numbers but suppose the ELB amounted to $50000 for the year, if the veteran`s private pension lump sum was $100000, would that mean that VAC would now obliterate the monthly ELB for 2 years, as they subtract $ for $ any outside income the veteran takes in?

by propat Tue 25 Jun 2019, 12:22

well I did lay out a scenario earlier where it would help just on OAS . I just did the OAS however so you can just consider in that example they are on CPPD thus must take CPP at 65 anyway . there will be circumstances where delaying both or one ore the other will help .

70 % of your IRB excluding your protected CIAS portion is your starting point . deduct everything except OAS/GIS and CPP unless on CPPD .

then just go from there .

propat

by AirLog Tue 25 Jun 2019, 10:17

I am receiving the CIA Supplement so that is my saving grace. I know what my bottom line is and unless the government changes the rules and takes CPP and OAS out of the offset equation I will be taking by offsets at 65.

AirLog

by Unknown Soldier Tue 25 Jun 2019, 09:58

AirLog wrote:After sleeping on it, I ran 3 scenarios with my very particular numbers. End result, it is in my financial interest to take start taking all my offsets (CPP, OAS & private pension) at 65 years old. If I delay until 70 years old the breakeven point will be about 90 years old before it makes it worthwhile to take it at 70 years old. So 65 years old it is to take all benefits. Definitely worth doing the math and talking it through on this forum. Thanks for all of your perspectives.

AirLog

are you getting CIAS as well?, if not your situation sounds exactly like me,...I’m no good with math, so I guess I’ll do what you’re doing, lol

by Guest Tue 25 Jun 2019, 09:53

I agree too Air Log - This is a very interesting discussion

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