All of Canada’s members of Parliament and the entire cabinet will be forced to make retroactive payments into their pension plans following technical glitches in the federal government’s troubled Phoenix pay system.
In a letter to members, chief human resources officer Pierre Parent wrote that, between May and September 2016, pension contributions were deducted from members’ pay at a lower rate than required. He added that the issue has been rectified and contributions have been deducted at the appropriate rate starting with the pay issued on Oct. 31, 2016.
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The missing pension contributions will be deducted from the three remaining monthly payments for 2016, according to the letter. “For the pay issued on October 31, 2016, members can expect to see, on average, a difference of approximately $235, while ministers will see a difference of approximately $83,” Parent wrote.
“The impact on the net earnings of each member will vary depending on their total earnings and specific personal income tax situation.”
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