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Archive for the ‘Mature workers’ Category

Canadian Pension Updates – as of April 16, ’12

April 16, 2012 Leave a comment

The age to receive OAS, old age security, has been increased from 65-67. You can also choose to defer taking your OAS until much later thereby increasing it.  If the legislation passes, you can start deferring as soon as July 2012. The Star gives the example “Rita who turns 65 in December 2013, plans to work for as long as she can. She ops to work until 70. Here pension will then be $8,814, rather that $6,481 (in 2012 dollars).

For all recent updates go to:

canada-pension-plan-changes

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The Advantages of Experience

With our society’s current reverence for all things new and technical, individuals in the workplace sometimes lose sight of the benefits often gained by seasoned veterans in their jobs.

A recent article in the Globe and Mail highlights some of the advantages including the benefit of composure during critical moments – you can’t learn it from books, you have to have gone through the intensity, confusion and hysteria of events.

One investment firm manager says “I’ve been through the end of the world a number of times”. Other mature workers explain that experience has given them the ability to pull back and get away from the day-to-day “noise” of the workplace in order to keep perspective.

“Globe and Mail”, Report on Business, May 27 2011, p B11

Canada Pension Plan Changes 2012-Updates April 16 2012

The age to receive OAS, old age security, has been increased from 65-67. You can also choose to defer taking your OAS until much later thereby increasing it.  If the legislation passes, you can start deferring as soon as July 2012. The Star gives the example “Rita who turns 65 in December 2013, plans to work for as long as she can. She ops to work until 70. Here pension will then be $8,814, rather that $6,481 (in 2012 dollars).

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Changes have been approved, some for those who started receiving CPP before 2012, some for those who begin during or after 2012.

The following changes to the CPP will be phased in gradually between 2011 and 2016, with the first major change occurring in January 2011 for people retiring after age 65:

  • Your monthly CPP retirement pension amount will increase by a larger percentage if you take it after age 65 (gradually from 2011 to 2013).
  • Your monthly CPP retirement pension amount will decrease by a larger percentage if you take it before age 65 (gradually from 2012 to 2016).

Therefore encouraging older workers to work longer.

  • The number of years of low or zero earnings that are automatically dropped from the calculation of the CPP retirement pension will increase (in 2012 and 2014).

Which will in general help workers.

  • You will be able to begin receiving your CPP retirement pension without any interruption even if you remain working (starting in 2012)
  • If you are under 65 and you work while receiving your CPP retirement pension, you and your employer will have to make CPP contributions.
  • If you are age 65 to 70 and you work while receiving your CPP retirement pension, you can choose to make CPP contributions.

The strategy for these changes is to improve retirement flexibility for working individuals in Canada, enhance pension coverage, and improve equity in the CPP (providing those of us not retiring for some time will still be eligible).

Pension Update Dec.6 What is changing?

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Bill C-51, receiving assent in parliament on December 15, 2010, will take affect in 2012. Some of these changes include:

  1. Workers will no longer have to cease work or reduce their earnings in order to collect CPP retirement pension benefits before age 65. Currently, workers must stop working (or keep earnings to a maximum amount) to collect benefits (this is called the “work cessation test”).
  2. The rates of Canadians’ low earning years are excluded from the calculation of their benefits entitlements. Pensionable earnings levels used to calculate CPP pension benefits will increase, leading to better pensions.
  3. Those workers receiving CPP retirement pension benefit recipients can continue making premium contributions if they choose.
  4. The penalty for early receipt of benefits (before 65 yrs old) will increase and the bonus for not collecting benefits until later will be better.

For more information, see:

Service Canada

Today’s Workers not Retiring

March 15, 2011 Leave a comment

Current employees whether they are 55 or 70, tend to keep working. Since they are generally healthy and well-connected, this age group prefers to stay busy. A worldwide Barclay survey found that “40% of wealthy individuals who have retired have opted to work part-time….individuals want to remain active and engaged yet desire more freedom as well as more time for their families and avocations”.

Those of you who have heard my thoughts on this matter know that I am concerned about the next generation of workers (GenXers, GenYers, and the Millenials, all aged 20-45) and their ability to enter and move through the workforce with sufficient quality opportunities. Hopefully older workers who continue to stay employed, will hire younger workers, pass on their knowledge, and keep their money circulating in the economy.

Every generation owes the upcoming one something to hope for.

 

Workers caring for Parents

January 27, 2011 Leave a comment

The Obama administration is taking action to persuade employers to support workers caring for aging parents. The President’s Budget for FY2011 provides many initiatives to build work-family policies including investments to support caregivers for elderly relatives or family members with disabilities and to build employers’ knowledge base about policies.

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Some highlights in the recent report by the executive office of the  President Council of Economic Advisers are:

-Nearly one-fifth of employed people were caregivers who provided care to a person over age 50, even when the figure was researched in 2008

-Only about 15 percent of workers report working from home at least once per week.

-The costs to firms of adopting [flexible work practices] can be outweighed by reduced absenteeism, lower turnover, healthier workers, and increased productivity.

-The need for flexibility in jobs has been caused by changing demographics in the workplace since WWII. “In 1950, women constituted about 30 percent of the labor force; in 2009, they comprised nearly half. At the same time, people born around 1940 have a life expectancy over 10 years longer than those of the previous generation (born in 1910), producing added responsibilities for the care of older family members as well.”

-“A substantial fraction of work could, in principle, be conducted from home or a satellite office. One study estimated that in 2000 more than half of all jobs were amenable to telecommuting, at least on a part-time basis, and undoubtedly that fraction has increased since then as a result of the spread of high-speed internet and mobile technology.”

-“Perhaps the ultimate form of workplace flexibility is the evaluation of employees based on what they produce rather than the number of hours they work. This management practice, called ‘results-only work environment’ (or ROWE), allows for flexibility along multiple dimensions because it permits workers to choose when, where, and for how long they work, as long as they are sufficiently productive.”

-“There is evidence that workers take into account the entire compensation package—and not only wages—when considering job offers….[skilled] workers must be paid higher wages to accept jobs without health insurance, partly to help pay for their health expenses. Similarly, workers who have little workplace flexibility require higher wages to help pay for services such as emergency child care and elder care…if the value to employees of flexible arrangements exceeds the costs of providing them to the employer, flexibility is a cost-effective tool for attracting and retaining workers.”

-“A growing literature links job stress to poor health (such as chronic hypertension and heart disease) linking poor worker health to poor economic outcomes, such as lower productivity and slower economic growth.”

-“Flexible practices may help society in ways that are not taken into account by either an employer or employee (what economists call “social benefits”). For several reasons it is possible that these social benefits are larger than the private ones. Taxpayers and society as a whole benefit from having productive individuals in the workforce because they are more likely to make contributions in the form of taxes (and conversely are less likely to use the social safety net). As another social benefit, allowing workers to work during atypical hours can reduce the commuting time for other workers that may not be taken into account by a profit-maximizing manager.73 One study found that in 2005, peak-period drivers spent 38 extra hours a year in traffic as a result of highway congestion, up from 14 hours in 1982.74 Moreover, over a third of drivers report that traffic congestion is a serious problem in their community.”

-“Especially at this time as the U.S. rebuilds after the Great Recession, it is critical for the 21st century U.S. workplace to be organized for the 21st century workforce”

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I will follow up with knowledge and studies on workplace flexibility in future posts, but it is heartening to know that high level governments may soon assist with the vital need to support employees with multiple family care demands.

The full Work Life Balance report

Canada Pension Plan changes 2012

December 7, 2010 Leave a comment

Changes have been approved, some for those who started receiving CPP before 2012, some for those who begin during or after 2012.

The following changes to the CPP will be phased in gradually between 2011 and 2016, with the first major change occurring in January 2011 for people retiring after age 65:

  • Your monthly CPP retirement pension amount will increase by a larger percentage if you take it after age 65 (gradually from 2011 to 2013).
  • Your monthly CPP retirement pension amount will decrease by a larger percentage if you take it before age 65 (gradually from 2012 to 2016).

Therefore encouraging older workers to work longer.

  • The number of years of low or zero earnings that are automatically dropped from the calculation of the CPP retirement pension will increase (in 2012 and 2014).

Which will in general help workers.

  • You will be able to begin receiving your CPP retirement pension without any interruption even if you remain working (starting in 2012)
  • If you are under 65 and you work while receiving your CPP retirement pension, you and your employer will have to make CPP contributions.
  • If you are age 65 to 70 and you work while receiving your CPP retirement pension, you can choose to make CPP contributions.

The strategy for these changes is to improve retirement flexibility for working individuals in Canada, enhance pension coverage, and improve equity in the CPP (providing those of us not retiring for some time will still be eligible).

Pension Update Dec.6  What is changing?

———————————————-

Bill C-51, receiving assent in parliament on December 15, 2010, will take affect in 2012. Some of these changes include:

  1. Workers will no longer have to cease work or reduce their earnings in order to collect CPP retirement pension benefits before age 65. Currently, workers must stop working (or keep earnings to a maximum amount) to collect benefits (this is called the “work cessation test”).
  2. The rates of Canadians’ low earning years are excluded from the calculation of their benefits entitlements.  Pensionable earnings levels used to calculate CPP pension benefits will increase, leading to better pensions.
  3. Those workers receiving CPP retirement pension benefit recipients can continue making premium contributions if they choose.
  4. The penalty for early receipt of benefits (before 65 yrs old) will increase and the bonus for not collecting benefits until later will be better.

For more information, see:

Service Canada

Human Resources and Skills Development Canada Guidelines

Pension Update Dec. 6 How CPP May Change

December 7, 2010 Leave a comment

The Canadian Labour Congress wants benefits for CPP doubled, which may hurt the economy due to increased payroll taxes for employers.

Politicians, actuaries, and Canadian workers consider raising the retirement age to 70 years.

Support could be provided to Canadians who save including assistance for employers offering RRSP plans and increases to individuals’ RRSP limits.

The Guaranteed Income Supplement benefit could be enhanced for those with smaller retirement incomes.

Individual Canadians could be allowed to opt out of CPP if they would rather control their own retirement savings and investments.

Related articles:

Is the Piggy bank broken ?

Ideas to enhance CPP