INDEX

Articles:
     Pension Splitting

Briefs:
     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
     June 6, 2008 - Elder Abuse Awareness Day

Surveys:
     Seniors Online Canada Survey
     Health Care Survey
     Seniors' Priorities Survey
     Long Term Care Survey

Other:
Manitoba Debate on a Government Bill on Teacher Pensions - Hansard record, July 21, 2008.
Cost of Living Adjustment - by Owen Corcoran, BCRTA Past President
Some Major Features of Canadian Teacher Retirement Plans 2007-08 -  submitted by Vaughn Wadelius, ACER-CART Vice President
Example Letter to Members of Parliament on Pension Splitting
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 clawback 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 MP’s 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. MP’s 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!!!

BACK TO TOP
 

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