December 21, 2006
OTTAWA – The Honourable Gordon O’Connor, Minister of Defence, and General Rick Hillier, the Chief of Defence Staff, are pleased to announce that all Reserve Force members will now be eligible to contribute to and earn benefits from the Canada Pension Plan (CPP) for all periods of Reserve service.
The amendment to the Canadian Forces Superannuation Regulations means that starting January 1, 2007, all Reserve Force members will contribute to CPP on the same basis as any other Canadian worker earning above the basic exemption, regardless of the nature or length of the Reserve service.
“Canada’s New Government has made this change because we believe that all Reservists should be able to collect a pension that will allow them to build for retirement and provide their families with basic financial protection,” said O’Connor. “Canada’s New Government is proud of the brave men and women who serve our country daily and this amendment is another example of our commitment to support them.”
“This change is excellent news for Reservists,” said Hillier. “Whether Canadians choose to serve full-time or part-time in the CF, they will be able to start building upon their CPP pension and create a more secure future,” he added.
At least 8,500 Reserve Force members previously excluded will now be eligible to contribute to and earn benefits under the CPP. As of January 1, 2007, Reserve Force members will pay CPP contributions of 4.95% on their Reserve Force earnings that range between the Year’s Basic Exemption of $3,500 (or earn more than $291 a month) and the Year’s Maximum Pensionable Earnings (YMPE) set by CPP, which will be $43,700 in 2007.
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For more information on the Reserve Pension Plan please visit: http://www.forces.gc.ca/hr/dgcb/cfpmp/.
