Evidence of meeting #12 for Veterans Affairs in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was insurance.
A recording is available from Parliament.
BGen Sanzio Bonotto
Yes, because the budget is not from the military. We get the money from that, so we are going to reduce because the budget is going down every year. We are going to change our armed forces, but we have to reduce.
Conservative
Greg Kerr Conservative West Nova, NS
Part of what I was going to ask was whether the reduction would be across the board or whether some units would be reduced more than others. Will there be less sea and more land or something like that?
BGen Sanzio Bonotto
It depends. Some units that are very big will be reduced. Other units are going to be closed.
BGen Sanzio Bonotto
Looking at the air force, there are some squadrons that will disappear. Some squadrons will be put together with other squadrons to reduce the costs of the unit. They are going to reduce. It depends on the unit. They will have to see everything.
Conservative
Greg Kerr Conservative West Nova, NS
So we'll stay tuned and watch how it works out, I guess.
You were giving the overall view. I'm almost back to where Judy started off on this one. If you added every possibility together, including the golden handshake, what is the maximum, as against the salary, that a person could receive in pension? In other words, if you took all the combinations and possibilities anyone could do, what's the maximum you could get? Is it 80%? Or does it go up to 100% of salary?
BGen Sanzio Bonotto
No. The maximum is 80% of the basic salary, but with some indemnities and some bonds, you sometimes can reach 100% of salary. Don't ask me which kind of indemnity, because in the salaries we have some indemnities that are not pensionable, so they are capped in the salaries. But there are others that, if you go onto the pension, grow from 100% to 110%.
At least, people tell me that when you go onto the old age pension it's much the same, so the salary and the pension are much the same for five years. After five years, of course, they go down, because after five years you go out of auxiliary service, right? If you receive an indemnity, that is the difference between the salary if you stay in the service, and the pension. Seventy per cent of the difference is given to me, so it is something that gives me more money at the end of the month; at least, it's 100% of the salary.
Conservative
BGen Sanzio Bonotto
That's if you get the maximum pension, of course. If you have less than 80%, and the 40 years of service, you are going to reduce it. You don't have the same salary available.
Conservative
Greg Kerr Conservative West Nova, NS
Okay.
Maximum retirement is at age 60 unless you're the most senior of officers, and then, you mentioned, it's at age 65.
BGen Sanzio Bonotto
For me, as a brigadier general, it's 60. For a major general, it is 63 years, I think, and for a lieutenant general it is from 63 to 65.
Conservative
Greg Kerr Conservative West Nova, NS
Okay, and they're calculated up to 65. They're not eligible for the old age pension until they reach that particular year of 63 or 65.
Conservative
Greg Kerr Conservative West Nova, NS
With the normal retirement at 60, you'd be automatically eligible for the old age pension part.
Conservative
Greg Kerr Conservative West Nova, NS
But if you're in the category you're talking about, which is 63 or 65, you're not eligible for that old age part of it until you reach that age. Or do you get your old age pension at 60 regardless?
BGen Sanzio Bonotto
No. You get the pension if you go at 63 or 65. I'm not sure I understand your question.
Conservative
Greg Kerr Conservative West Nova, NS
Let me think on that. I'll get back to you in the next round. I was looking at everybody reaching the old age pension at age 60, but yet was there this category that could go up to age 65?
Conservative
BGen Sanzio Bonotto
Yes. It is the rank. It is not the category. For all the pilots who are brigadier generals, the maximum age is 60. For pilots who are major generals, it is 63. For three-star generals or the chief of the defence staff, it's 65. When you reach those stages, you have to go on pension.