http://www.oag-bvg.gc.ca/internet/English/parl_oag_201104_03_e_35222.html
No news here. We know it is screwed up.
Extract: 3.10 To date, there has been little benefit payment activity in the Reserve Force Pension Plan. Information that National Defence provided indicates that, as of 31 March 2010, 99 individuals were receiving an annuity, an annual allowance, or a survivor benefit. A further 627 had received a return of contributions, and there were 977 transfers (rollovers) to the Canadian Forces Pension Plan. About 190 reservists had received a benefit payment under the Canadian Forces Pension Plan.
3.13 Our scope did not include the Treasury Board of Canada Secretariat, which is responsible for overall pension policy and general guidance to National Defence on accounting for the plans. In addition, we did not audit Public Works and Government Services Canada, which manages the pension payroll function on behalf of National Defence and is the lead department for the modernization of business and system processes of all major federal pension plans. Furthermore, we did not examine the Canadian Forces Pension Plan for Regular Force members. Lastly, we did not assess the policy and design of the Reserve Force Pension Plan.
Press Release:
Poor planning and administration have led to backlogs
(Chapter 3—Reserve Force Pension Plan—National Defence—Spring 2011 Report of the Auditor General)
Ottawa, 9 June 2011—National Defence failed to adequately plan and implement a new pension plan for members of the Canadian Forces Reserves, says John Wiersema, Interim Auditor General of Canada, in a Report tabled today in the House of Commons. The Office of the Auditor General undertook a performance audit of the Reserve Force Pension Plan because of problems encountered in its financial audits of the Plan.
“The Reserve Force Pension Plan had been under discussion and development for more than ten years, yet the Department of National Defence dropped the ball,” said Mr. Wiersema. “As a result, many reservists could face delays of seven years or longer to find out what their pension benefits will be.”
The audit found serious backlogs—roughly half of the 21,000 reservists in the Plan have sought to buy back past service, and very few of these requests have been processed. Based on National Defence projections, many reservists could wait seven years or longer to know what pension benefit to expect and what it will cost them. Other pension services are backlogged as well.
Creating a new pension plan is a rare and complex undertaking. National Defence underestimated what it would take to deliver pension services to reservists. As a result, it did not have enough staff or adequate systems and procedures in place to operate the pension plan when it came into effect. The Department did not adequately inform reservists about their options and obligations.
The Department has taken some actions over the past three years to improve administration of the plan, including hiring more staff, acquiring new office space, and developing systems and procedures, but these have not yet resulted in better delivery of pension services to reservists.
“Reservists play a critical role within the Canadian Forces,” said Mr. Wiersema. “They should not have to wait this long to receive the pension services they are entitled to.”
