Retirees Returning to Work

If an individual who is receiving a pension from the CSI Pension Plan provides services for compensation to a school that participates in the CSI Pension Plan, he or she is considered a re-employed pensioner and subject to the Plan’s provisions.  This applies whether the person is employed by the school, self-employed or hired through a third party, such as a personal service corporation.

The Plan’s provisions require that the payment of pension be suspended if an individual earns more than 35% of the Years Maximum Pensionable Earnings ($16,520 for 2010) with a participating school (for Manitoba the threshold is 25% - $11,800 for 2010) in any year following the commencement of the pension.

Whether an individual is “employed” for purposes of the CSI Pension Plan is determined on the basis of all relevant facts and circumstances.  The existence of formal titles, a personal service corporation or other arrangements which make the relationship appear to be something other than that of “employment” does not change the fact that the provision of services for compensation is considered re-employment.

If you have questions about a particular situation please contact me at 877-274-8796 ext. 226 or by email at .

Full Issue: No. 175 - September 1, 2010

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