A "message" from Message - "Claw-Back" of a portion of the Canadian Forces Superannuation (CFSA)
All.............You may be interested in this LEGION letter just mailed
to the Minister of National Defence concerning clawback of our CFSA
benefit....
Duane Daly
Dominion Secretary
________________________________________________________________________
6 May 2008 File: 82-7-2
The Honourable Peter Gordon MacKay, P.C., M.P.
Minister of National Defence
National Defence Headquarters
101 Colonel By Drive
Ottawa, ON K1A 0K2
Dear Minister Mackay:
I would like to share with you my grave concerns about an issue of
fairness regarding the claw-back of a portion of the Canadian Forces
Superannuation (CFSA) benefits when a retired Service member starts
collecting Canada Pension Plan (CPP) benefits at age 65. As you are
aware, this issue has been and continues to be discussed at length in
various fora, including Parliamentary and Senate committees.
From a Legion perspective, the issue is simple. Canadian Forces (CF)
members are special Canadians who volunteer under exceptional terms of
unlimited liability to serve their country and, in doing so, put their
lives at risk. CF members were never asked if they wanted a "stacked
approach" to CFSA and CPP benefits. It is acknowledged that the
implementation concept was explained with the CPP introduction in 1966,
but the reality is that the "stacked approach" has not resulted in a
fair and equitable pension return to military personnel.
Under normal circumstances, as in private industry, the combined
separate CPP and Defined Benefit Plan rates as paid by employees rarely
exceeds that rate paid by Service members for their CFSA plan. But,
these civilian employees receive their CPP benefits in addition to those
paid under their Defined Benefit plans. This is not the case with
Service personnel. The claw-back of a portion of the member's
Superannuation benefit at age 65 is unfair and imposes a burden on many
of those who depend fully on their pensions including any additional CPP
benefit that would normally have been obtained. Moreover, the
exceptionally high CFSA contribution rate paid by Service members has
resulted in plan surpluses which have not been shared with the members.
The situation is compounded by the forced payment of Unemployment
Insurance during the member's career with no authority to draw the
insurance on retirement. Another injustice.
I urge you to speak up for the many loyal and devoted veterans of the
Canadian Forces who have dedicated their lives to the service and
defence of Canada and who now face this demeaning and unfair reduction
in superannuation. The payment of CPP should not be considered as a
plug to fill the claw-back gap but as an additional benefit which has
been paid for in contribution rates and earned in unparallel service.
The cancellation of the CFSA claw-back at age 65 would be welcomed most
gratefully by serving personnel and veterans alike and would reflect
your government's high esteem, respect and gratitude for their
commitment and years of loyal service.
Sincerely,
Jack Frost
Dominion President
cc: The Right Honourable Stephen Harper, P.C. Prime Minister
The Honourable Greg Thompson, P.C. M.P.
____________________________________________________________________
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Macdonald Realty 1st Pioneer, 22424 Fraser Highway, Langley, BC
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