Canadian Forces Reservists can join in the Canada Pension Plan

As I reported on CTV Newsnet a few minutes ago, Defence Minister Gordon O’Connor is to announce later this afternoon that, as of Jan. 1, all Canadian Forces reservists will be able to contribute to and receive benefits from the Canada Pension Plan — just like any other worker in Canada.

Until this change, reservists were not part of the Canadian Pension Plan and, as a result, some reservists might have found themselves penalized financially so far as their future retirement income goes if they took time off their regular job to serve with the regular forces. Hundreds of reservists are doing, have done, or are about to do combat tours in Afghanistan.

In making this small  administrative change, O’Connor is trying to eliminate any obstacles that might prevent a reservist and his or her family from committing to a tour in Afghanistan.

Last week, O’Connor made another administrative change to the salary and benefits package with the same goal of removing obstacles that might hinder recruitment or reservists. He decreed that any soldier that receives some extra danger pay for serving in a combat zone will continue to get that extra pay even if he or she is injured and sent back home.

Right now, soldiers in Afghanistan receive an “operational allowance” of about $1,900 a month tax-free on top of their regular salary for the six or nine months their unit is Afghanistan. But those soldiers were injured no longer received that operational allowance if they were sent back to Canada. Now those soldiers will will qualify to receive an “Allowance for Loss of Operational Allowance” to be paid for as long as they were originally supposed to overseas receiving an operational allowance.

 

 

 

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