9 years vs. 20 years

[rdschultz]

Ok, I just got back from an information session that was a little confusing, at best.  I intend to do some research on my own, but I figured I'd throw a post here to get another viewpoint or two on the matter.  Any advice is appreciated. 

I'll explain my situation.  I've been in since September.  When I signed on, I signed the typical 9 year service engagement that officers join on with.  I just learned that I have until the end of the week to decide if I want to extend that to 20 years, because they are required to offer us an IE (to extend our contract to a total of 20 years) before 1 April, due to the way the TOS are changing.  Anyways, thats the basic story.

My understanding is that if I continue with my current engagement (an SE, I believe?) and finish after 9 years, I am entitled to a free move back to my place of enrolment (or equivalent distance), possible EI, and return of pension contributions.  If I take the 20 years and decide in 9 that I want out, I can be released, but I will only get a return of contributions.  The main benefit of taking the IE is that if I can start collecting a pension in 20 years vs. 25 (although we were told that without taking the IE, and getting out after 20 may still be possible with the modernization of the pension program, but with reduced contributions. 

Anyways, thats all I've got for now, so any input is greatly appreciated. 

 

[zero-five-two]

I think you have to ask yourself what it is you want in your life. If you know youre a company man in for the long haul, sign the IE. If you think maybe you would like to take your career in a civilian direction, or are not sure, don't sign. If you decide after a time that yes, you are in for the long haul, take the five years on the chin as the price you pay for not being tied down and able to make that decision.

 

[MJP]

Check out the links in this thread and see if they help clarify it for you.

http://army.ca/forums/threads/22704.0.html

I've got some powerpoints at work that I think explain the benifits under each plan pretty good.  Let me know if you want them and I'll dig them up for you.

 

[rdschultz]

Thanks, that explains things a little bit better.

If you could, I would certainly like to look the powerpoints.  A detailed look at the benefits would be helpful, because the benefits I mentioned in my post are basically all that was presented during the briefing earlier this afternoon.  What was provided wasn't really enough to make an informed decision, so anything and everything helps. 

 

[acheo1]

ok...I want a short answer here. I already visited DPSP web site so please don't referred me to it.

If I enrolled 3 years ago am I going to be offered the 20 year pension plan when I sign my IE in 4-5 years or the only option available will be the 25 year plan?

I personally believe it will be 25 but I heard that one commanding officer told its members that if you were hired prior to the modernization plan beginning date you could be offered both options when time comes. That would be too good to be true!

 

[garb811]

If you're now on an IE you will have the option of staying on the 20 year plan or rolling into the 25 year plan, I think you'll have a year to decide which you want to elect.   If you're only on your BE and you do not sign your IE prior to the implementation of the new plan, your only option will be 25 years.

If I recall correctly, there was a CANFORGEN which came out in 2004 or late 2003 which authorized COs to bring people onto IEs before they would normally do so in order to "beat" the system and guarantee the option of 20 years.   As hoser pointed out, there are some pitfalls to signing your IE prematurely if you change your mind and decide you don't want to hang around for 20.