Hello Frank,
Note that it sounds as though one can opt out of the joint life pension requirement if one's spouse agrees to that.
The College Pension Plans website at:
https://college.pensionsbc.ca/choose-your-pension-option
states this:
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If you have a spouse, by law, you are required to choose a minimum 60% joint life pension. However, your spouse can sign a waiver giving up this right.
You can only choose a single life option if either of the following applies:
You do not have a spouse
Your spouse has signed a waiver giving up their right to a minimum 60% joint life pension
You can only choose a single life option if either of the following applies:
You do not have a spouse
Your spouse has signed a waiver giving up their right to a minimum 60% joint life pension
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Cheers,
Nina
Nina Saklikar,
Head, eBranch
Simon Fraser University Library
Email: nsaklika@sfu.ca / Tel: 778.782.5861
From: Frank Lee <f.lee@sfu.ca>
Sent: Friday, November 16, 2018 2:54 PM
To: academic-discussion@sfu.ca
Subject: Re: Pension formula
Sent: Friday, November 16, 2018 2:54 PM
To: academic-discussion@sfu.ca
Subject: Re: Pension formula
Julian just reminded me that I should have clarified that this was for a very specific scenario. Interestingly, the calculus changes depending on the age of your spouse. The closer in age you are to your spouse (or if they are older then you) then your
rate also increases (but will probably always be below 2%). But if your spouse is much younger then your rate decreases. You can do your own calculation here:
https://www.pensionsbc.ca/portal/page/portal/general_pension_estimator/cpp_general_estimator
Frank
From: Frank Lee [mailto:f.lee@sfu.ca]
Subject: Pension formula
Date: Fri, Nov 16, 2018 1:02 PM PST
To: academic-discussion@sfu.ca <academic-discussion@sfu.ca>
Frank
From: Frank Lee [mailto:f.lee@sfu.ca]
Subject: Pension formula
Date: Fri, Nov 16, 2018 1:02 PM PST
To: academic-discussion@sfu.ca <academic-discussion@sfu.ca>
My apologies if this has already been discussed.
The formula that is being presented as the calculation for our pension under the new plan is: 2% X (average best 5 years salary) X (years of service). However, this is "based on a single life pension option with a 10-year guarantee". This is from BCCPP's website (https://college.pensionsbc.ca/how-we-calculate-your-pension). For those members with spouses we are automatically enrolled as joint-life, which means we will immediately be below the 2% rate right from the get-go.
I used a mock scenario using the BCCPP pension calculator and came up with these rates for the different options:
