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Royal Canadian Mounted Police
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Change in CPP Reduction Factor
You may have received the attached Notice mailed to RCMP pensioners in
the Fall of 2007 announcing a slight change in the CPP Reduction Factor,
for RCMP pension plan members who were born after 1942, and will turn 65
in 2008 or later. The RCMP pension of members born after this date will
still be reduced at age 65 for integration with CPP, but the reduction
will be slightly smaller.
For a Member born after 1947 with 30 years of pensionable service, it
will mean approximately $933 more RCMP pension per year, each year,
after age 65. It is not an issue for survivors or the Pension
Continuation Act pensioners, since RCMP survivor pensions and PCA
pensions are not reduced for CPP integration. The size of the change
will depend on the length of service and the date of birth.
As noted on page one of the Notice, the RCMP as the pension
administrator, is required to issue a PSPA (Past Service Pension
Adjustment, Exempt from Certification) T215 Form to all plan members
who receive the benefit of this pension improvement. These T215 notices
went out to pensioners and serving Members in April 2008. The number
reported in Box 2 of the T215 Form will affect the RRSP room of members
in 2009. It may not be an issue for pensioners who are no longer earning
any taxable earned income, and who are not still making RRSP
contributions.
The RCMP is required to send a copy of each T215 Form to CRA, so
Members need not report or do anything with the T215 Form sent to them.
We have attempted to train Morneau Sobeco call center staff to handle
questions from pensioners. Any questions on the tax implications for
plan members will be referred to CRA, since the RCMP and Morneau, have
no records of plan members' RRSP contribution history or RRSP room still
available. These types of questions are best answered by CRA.
As a Member of PAC and PFOC, Bill Gidley has been aware of this issue and process, but if you receive questions from RCMP pensioners on this issue feel free to email me for clarifications, as required.
This issue is not to be confused with any attempt by some to eliminate
the CPP reduction factor for RCMP and CF pensions all together. That is
another matter, and another story.
Bob Slipp
RCMP - GRC
Policy Analyst/Analyste de politiques
National Compensation Services/
Services nationaux de rémunération
(613) 993-4709
(fax) 993-0795