In a meeting with CBC Vice-President Marco Dubé on September 7, we were assured that the CBC Pension administration is working on completing the necessary work to generate payment to retirees and employees before year end. Currently, we are not able to provide a firm date for payout.
The process involves calculations for more than 20,000 individual contributors for two separate years. Additionally, we are awaiting approval from the Office of the Superintendent of Financial Institutions (OSFI).
Pensioners, employees, surviving spouses and deferred pensioners are eligible for a payout of pension surplus for both 2021 and 2022. The amounts that will be paid out to each individual will be based on a percentage of your total contributions with interest. Eligible surviving spouses will receive 60% of retirees’ contributions. Determining the actual percentage is part of the calculations currently being made.
There have been several questions concerning taxes. What we do know is that those with access to RRSP room will be able to direct funds to their individual RRSP accounts. Those with no room or those older than 71 will not have access to RRSPs and will have payments made directly to them. For those who do not have access to an RRSP or other tax deferral option, the Memorandum of Agreement requires the withholding of minimum taxes. Currently, those amounts are:
- 10% ( 5% for Quebec) on amounts up to and including $5,000
- 20% (10% for Quebec) on amounts over $5,000, up to and including $15,000
- 30% (15% for Quebec) on amounts over $15,000
If you have specific tax-related questions, we recommend that you consult a financial advisor.
We anticipate meeting with CBC officials over the coming weeks and will provide further details as they become available.
Dan Oldfield