Pension Administration Update

Transcription

1 Pension Administration Update June 2014 Transfer of RCMP Pension Administration. As you may be aware, on July 2, 2014, the administration of RCMP Pension Plans will be transferred to Public Works and Government Services Canada (PWGSC). On that date, PWGSC will also start to administer the RCMP pensioner medical and dental insurance plans. Since 2003, these services have been provided by Morneau Shepell who will continue to provide insurance administration services for the RCMP Group Life and Accidental Death and Dismemberment Plans. What this means for you. The move to PWGSC will mean enhanced services, greater security, and longterm stability for RCMP Pension Plans. PWGSC is a stable and secure option that does not require re-tendering the contract with private sector suppliers every 7 years and the possibility of transferring your personal data between companies each time. Through PWGSC, you will have access to specialists at the Government of Canada Pension Centre. These experts administer pensions for thousands of federal public service employees and have extensive knowledge of federal public sector pensions and pension benefits. How to contact the Government of Canada Pension Centre. Starting on July 2, 2014, you can reach a pension expert by: 1. Telephone Toll-Free: Executive Services: (C/Supt, EX-01 and above) Monday to Friday: 8:00 a.m. to 4:00 p.m. (your local time) Outside Canada and the United States: (collect calls accepted) 1

2 Monday to Friday: 8:00 a.m. to 5:00 p.m. (Atlantic time) Telephone Teletype (TTY): (collect calls accepted) Monday to Friday: 8:00 a.m. to 5:00 p.m. (Atlantic time) Fax 4. Mail (418) Public Works and Government Services Canada Government of Canada Pension Centre Mail Facility 150 Dion Boulevard PO Box 8500 Matane, QC G4W 0E2 Where to find more information. Starting on July 2, 2104, the RCMP Pension and Benefits Web site, hosted by PWGSC, will provide detailed information on all aspects of pension administration for prospective members, active members, retired members, survivors and dependants. You will not require a username or password to access the information. To update your personal information (e.g. mailing address) or to make changes to your pension benefits (e.g. beneficiary), contact the Pension Centre by telephone or (see contact information above). This is the RCMP s public Web site. From the Home Page, click on Family Corner to find a comprehensive package of Frequently Asked Questions under Administration of RCMP Pension Plans. PAOP-PIAP@rcmp-grc.gc.ca 2

3 If you can t find the answer on either of the Web sites listed above, send your question about the transfer of pension administration services to the RCMP project team. How to find assistance with RCMP Group Life Insurance or Accidental Death and Dismemberment Plans. Morneau Shepell will continue to administer these plans after July 2, Contact details for Morneau Shepell will remain as follows: Your pension payments. Telephone (toll-free): Web: Your pension file will be transferred automatically from Morneau Shepell to PWGSC. There will be no interruption to your monthly benefit payments, which will be generated by PWGSC starting in July The transfer from one pension system to another may lead to a modest change in your benefit payment. For the vast majority of pensioners, the change will be less than $20 per month (plus or minus). This difference is due primarily to the way that federal income tax is calculated under the new pension system. Currently, Morneau Shepell calculates your income tax deduction based on the total exemption(s) you have identified on your TD1 form. Under the PWGSC system, this exemption amount will be placed within a specified range and the income tax will be calculated based on the midpoint of that range. This is the same method used to calculate income tax for approximately 255,000 public service retirees. The Canada Revenue Agency has confirmed that both methods are valid, so you can expect either an increase or decrease in your monthly benefit of up to $20. When you file your 2014 tax return, you may qualify for a refund if more tax was withheld than what you owed over the course of the year. Conversely, you may be required to pay additional taxes if the amount withheld during the year was less than what you owe. 3

4 Previous benefit payments issued through Morneau Shepell will not be affected in any way by the tax calculation method used by PWGSC. The RCMP defined benefit pension plan provides a guaranteed retirement income regardless of fluctuations in the economic situation, investment returns and interest rates. Ultimately, as an RCMP pensioner, survivor or dependant, you will receive your full entitlements under the new pension solution at PWGSC. Direct deposit. If you have not done so already, you may wish to register for direct deposit of your monthly pension payment to take advantage of additional services available through PWGSC after July 2, Prior to July 2, 2014, you can request a copy of the direct deposit form by contacting the RCMP Benefits Administration Centre at , Monday to Friday between 7:30 a.m. and 6:00 p.m. EST or visiting After July 2, 2014, you can request a copy of the form by contacting the Government of Canada Pension Centre (see contact information above). If you have already signed up for direct deposit, there is no need to re-apply. Your pension stub. The Government of Canada is moving away from mailing printed monthly pension stubs. The new approach is more environmentally friendly and less costly for taxpayers. If you normally receive your pension cheque in the mail, you will no longer receive a printed stub with your cheque after PWGSC takes over administration of the RCMP Pension Plans in July Similarly, if you receive your pension payment via direct deposit, you will no longer receive a monthly stub in the mail. Your monthly pension stubs are being replaced by an annual statement in January that will summarize your pension payment amount and deductions. Furthermore, if there are changes to your monthly pension amount of +/- $2 or more at any time during the year, you will receive a pension stub confirming the change. 4

5 You can choose to receive these documents electronically via epost, Canada Post's secure online delivery service. The first step is to apply for direct deposit of your pension payment into your bank account. The second step is to create an account for epost (see below). Signing up for epost. epost is free to subscribe and gives you the option to receive and view your pension documents online. You can access your pension documents from a simple and secure location -- anytime, anywhere, for up to 7 years. To register for epost, you need a Payee Account Key. In July 2014, if you are receiving your pension payments through direct deposit, you will receive a onetime direct deposit stub in the mail that includes your Payee Account Key. You will find it in the upper right-hand corner of the direct deposit stub, just below the date. For detailed instructions on how to create your epost account and subscribe to receive your pension documents electronically, visit the Family Corner section of the RCMP s public Web site at From the Family Corner page, click on the link for Administration of RCMP Pension Plans where you ll find an extensive package of Frequently Asked Questions. Temporary interruption of service. ~~~~~ Through the month of June 2014, there will be a reduction in service through the RCMP Benefits Administration Centre operated by Morneau Shepell while data is converted and transferred to PWGSC. Operators at the RCMP Benefits Administration Centre ( ) will be available to receive calls from pension plan members throughout this period. If your request cannot be completed in June, it will be transferred automatically to the Government of Canada Pension Centre for follow up after the transition on July 2, The Government of Canada Pension Centre is expecting higher-than-normal workload during the months of July and August, so you may experience longer wait times during that period. 5