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Retirement Income Security Benefit (RISB)

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Re: Retirement Income Security Benefit (RISB)

Post by grosgig on Thu 09 Apr 2015, 20:34

i have wait before claping my hands. The two new benifices will not be for me. i got eelb, pia and supplement, vac pension, cf pension. My cf pension (18 years ) will push me away from risb. i'm happy for those who will have it. The two  things i hope they will not count is : in quebec we have a provincial rent RRQ. when you work you pay for that, but i think in others province you don't have that. It will be not fair i think to count it, because it will lower your risb, it's become an provincial income at 65. Also, if you have took a lot of RRSP (REER in french). At 69 or 71 you can change it for an annuity rent do they will count it. it will be an income ? Lot of details has to be more clear. They have to clear the definition of what will be count or be consider an income. It will not affect me because i will not touch risb but for those who can touch it i think it is important to clarified that. And why they dont change the age for 67 they will change the age of retirement. so if they dont change that we lost eelb at 65 but no cpp until 67 ?

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Re: Retirement Income Security Benefit (RISB)

Post by Guest on Thu 09 Apr 2015, 16:52

So I think I understand better now the difference between the two minimum amounts, one being $43'400 for those who are receiving PIA or PIAS an $29'600 for those only receiving ELB or SISIP.
I was not quite sure on the different minimums, but now I understand.

I think it's a good benefit, but I have some doubts on the estimated amount of individuals that will benefit from it.

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Re: Retirement Income Security Benefit (RISB)

Post by bigrex on Thu 09 Apr 2015, 16:20

Teen thanks for the examples, but it is as I suspected. If you have a CF pension, you will be no better off after the RISB comes into affect, than if they had totally ignored the reports recommendations. Because even the minimum pension for someone earning $65000 in the CF, would be around $13000, zeroing out the RISB. So even though the legislation doesn't specifically exclude those with CF pensions form being eligible, it makes it almost impossible for those getting one to actually receive anything from this benefit.
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Re: Retirement Income Security Benefit (RISB)

Post by pinger on Thu 09 Apr 2015, 14:59

Thank you Teen. pinger.
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Re: Retirement Income Security Benefit (RISB)

Post by Guest on Thu 09 Apr 2015, 13:56

ya I think its great you can get these answers but not only that easy to read coherent and with some numbers that actually represent some vets instead of constantly using PIA grade 1 as an example and stuff like that.

propat

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Re: Retirement Income Security Benefit (RISB)

Post by Teentitan on Thu 09 Apr 2015, 13:51

I have to admit it this new veteran-centric approach is working. In the past when I asked for info like this I never got good solid answers.

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Re: Retirement Income Security Benefit (RISB)

Post by Guest on Thu 09 Apr 2015, 13:47

ok thanks teen those are great examples .

propat

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Re: Retirement Income Security Benefit (RISB)

Post by Teentitan on Thu 09 Apr 2015, 13:38

So I asked for more examples of calculating the RISB and I'm sorry for taking so long to post it but I'm on the road right now and using internet cafes. Hope these examples help what you all have been asking....

Three things to keep in mind

These are approx. figures and are done using basic math. There may be variations depending on the income level or benefits, but this is generally how it works.

The second issue is that these are all in 2015 dollars. RISB, PIA/S and EL are all indexed, so they’ll keep in line with inflation when the Vet retires.

It is entirely possible that CPP and OAS amounts will be lower, because most of the time the Veteran stops paying into those benefits when they leave the CF. In these cases, the RISB amount will increase to offset the difference up to the 70% floor.



Two scenarios

(All pre-tax/2015 dollars)

Veteran 1

Salary in the CF pre injury – $65,000

Seriously injured and eligible for PIA (Grade 3) and PIAS

Earning Loss = (75% of $65,000) = $48,750
PIA = $585 (a month) x 12 months = $7020
PIAS = $1074 (a month) x 12 months = $12,888
Total Pre-65 from Veterans Affairs = $68,658

(Note – this Veteran is collecting over 100 % of pre-release salary, from injury until at 65)

RISB Floor = 70% of VAC/SISIP income in 64th year.
RISB Floor = 70% of $68,658 = $48,060.60

So, this Veteran will not go below $48,060 from all sources in retirement. Now, what will this Vet collect in retirement?

1) PIA/PIAS – as they remain unchanged and continue for life – annual total is $19,908
2) CPP - $1065 a month x 12 months = $12,780
3) OAS - $563.74 a month x 12 months = $6,764
4) Military Pension = X?

Total annual Income after 65 = $39,452
RISB Floor = $48,060
RISB yearly benefit $8,608 (assuming no military pension)

The point of RISB is that the Veteran will not go below 70% of their 64 year income from VAC(SISIP Service Related)


Veteran 2

Salary in CF - $29,000 (private)

Injured in training and medically released but not seriously injured so ineligible for PIA/PIAS

Earning Loss = 75% of pre-release salary ($29,000) = $21,750

******BUT, due to C-55 from 2011, this Veteran’s Earning Loss is bumped up to $42,424***************


*****Note – This Veteran is receiving 140% of their pre-release CF income******

Therefore…

Earning Loss = $42,424
Total pre-65 income from VAC/SISIP = $42,424
RISB floor = 70% of $42,424 = $29,696.80

In retirement, this Veteran will not go below $29,696.80

How will the Veteran get there?

1) CPP - $1065 a month x 12 = $12,780
2) OAS - $563.74 a month x 12 = $6,764

Total annual income after 65 = $19,544
RISB Floor = $29,696
RISB yearly benefit = $10,152

The floor is only a guide that tells us how much the Veteran will receive from all sources as a minimum. If a Veteran is in receipt of PIA/PIAS, they cannot go below $43,400 after 65. If the Veteran is in receipt of only EL or SISIP LTD(for service), they cannot go below $29,600. Scenario 1 is a Veteran who was making more than the minimum, which is to show that the Veterans can and will receive more than the floor in some cases, but they will not go below it.
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Re: Retirement Income Security Benefit (RISB)

Post by Guest on Tue 31 Mar 2015, 22:08

ya buds gotta stay calm I stand a chance to lose a lot as well so I know how ya feel . im hoping they are going to make changes to the regulations as well making this pill easier to swallow . failing that maybe they can be convinced to amend this bill to include an opt out clause.

just got to wait and see I guess .

propat

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Re: Retirement Income Security Benefit (RISB)

Post by rucksack031 on Tue 31 Mar 2015, 21:31

Thanks, bigrex,Propat I wont add anymore questions or scenarios at this time, and like rest will wait for more to follow. But I must say, should this issue over those receiving other benefits ,only to possibly make less after 65 is just a kick in the old sand bag, after the gauntlet each Vet has endured to qualify , goes against everything we fought for. I am usually calm in most matters, but When some says they have my fn 6 I take that to heart, hopefully this pans out time will tell.
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Re: Retirement Income Security Benefit (RISB)

Post by Teentitan on Tue 31 Mar 2015, 18:16

Important thing to remember about the RISB if your calculations are UNDER $43K the RISB is bumped to that.

So the minimum for RISB is $43K so that is one benefit to remember.
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Re: Retirement Income Security Benefit (RISB)

Post by bigrex on Tue 31 Mar 2015, 18:13

Just using PIA for the RISB calculations would put you below the minimum threshold, so the RISB would be around $3580. They would then deduct the CFSA, CPP and OAS from that amount, and if they combine to more than $3580, you will bot benefit from the program. The problem I will have is if they force everyone getting benefits, to take the RISB at 65. Because, in your case, you would effectively lose $2800/month that you would have otherwise have had for life.
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Re: Retirement Income Security Benefit (RISB)

Post by Guest on Tue 31 Mar 2015, 18:07

rucksack I believe the benchmark is a carryover from past legislation to make sure a disabled vet does not fall below that amount I see nothing in the proposed legislation having this benchmark as a qualifier for the RIBS .

unfortunately I don't see an opt out either .

you are in a strange situation however collecting PIA and sup but no ELB .

do you mean not on ELB or on ELB but zero sum due to deductions???

propat

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Re: Retirement Income Security Benefit (RISB)

Post by rucksack031 on Tue 31 Mar 2015, 17:35

Dam sorry to here that teen.

Thanks for your response REX always a good read, What I was getting at is that my military pension being at the bench mark my example .
military pension at or above set bench mark of 43000
PIA PLUS SUP AT level 1 combined = 2800
DVA pa at 100%
NO ELB
NO LTD
then at 65 cpp, oas just and example how would the said RISB affect myself . just trying to figure out like many and wrap my head around this.
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Re: Retirement Income Security Benefit (RISB)

Post by Teentitan on Tue 31 Mar 2015, 17:20

Yep it looks like I was lied to and believe me I am on it!!
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Re: Retirement Income Security Benefit (RISB)

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