A friend of mine is teturning to India for good due to lot of family responsibilites. As he works for the govt, he will be getting his pension when he quits. He wants the pension from the govt to be deposited to his a/c here in Canada and collect it in rupees in Hyderabad, wihtout any fees paid. Same for his RRSP also. He's looking for a monthly pay out, around $300 I think, to be encashed in rupees. That should ensure his family a decent living. According to him, chances of returning to Canada is remote as of now.
He started calling some MNC banks who operate in Canada and Hyderabad. Everyone wants him to open an NRI account first. No one is telling him the actual procedure. We are wondering is there a way to do this? Otherwise there may be around $30 to transfer fee from here and again the comission in India also. He told me that one fo the banks wanted Rs. 25 lakhs as deposit in India over a period of 1-2 yrs to be a premier customer, whatever tha tmeans.
I think there could be some way of doing. Can CDs weigh in on this?
KM
It can be done through ICICI Bank but not without any fees. Open a ICICI account in Canada, have them deposit money there or else transfer the CAD there through online banking. Through online banking at ICICI Canada's website transfer to any bank in India and withdraw in INR. For fee, etc., contact ICICI Bank Canada or visit their website.
It may be possible to do the same through SBI Canada also but you will have to check with them.
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Also you can use Bank's debit card to withdraw in India. Check the back of the debit card, if it says "Plus" or something else and if ATM in India displays that sign, cash can be withdrawn. There would be some fees there too in terms of exchange rate difference and ATM's fee.
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Sir just wondering and curious of the pension amount 300 CAD, i thought the pension is around 1000CAD.
Also there is State Bank of India in Toronto and Union Bank of India will be opening a branch in Toronto shortly.
Service charges of the above mentioned bank are nothing as compared to ICICI
Location: God's own country
Posted on: 29-05-10 09:08:35
Quote:
Originally posted by ritz3645Sir just wondering and curious of the pension amount 300 CAD, i thought the pension is around 1000CAD.
Welcome to Canada.
The max. payout of Canadian pension for the year 2010 is around $ 936 a month (inflation adjustable).
This is for a person who started work at age 18 in Canada and contributed to CPP and retired at age 65. For years from 18-65, he must have earned about $ 42K a year.
You just canot come into this country and work for a year and expect $ 1000 a month in pension. My great country will never give this.So for others, it is pro-rata.
For people with low CPP and who have otherwise fulfilled 10 years of stay in Canda, the OAS kicks in.For stay of 10 years, you will get 10/40 of the max. OAS allowed/ payable. For OAS you need to stay in Canada and possibly (and they will make you to) spend the money here.
To the OP :
My understanding is that pension (CPP) is paid only after the age of 60.
Does the Govt pension (a extra pension like the teachers pension) start when you quit / leave the company at whatever age, say like 45? It is a big ambigous. Hope your friend is not under some misconception about how Canadian systems works like a lot of newbies.
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I am a Gents and not a Ladies.
To the OP :
My understanding is that pension (CPP) is paid only after the age of 60.
Does the Govt pension (a extra pension like the teachers pension) start when you quit / leave the company at whatever age, say like 45? It is a big ambigous. Hope your friend is not under some misconception about how Canadian systems works like a lot of newbies.
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Canada Pension Plan, CPP, is different from regular pension. CPP can start at 60 at a reduced rate as compared to 65. My friend is turning 50 next year and is eligible for pension that kicks in any time after 50 once he leave his govt job. He told me that his CPP benefits will be around $200 per month since he has contributed only abt 12 yrs.
KM
Quote:Correct, but if someone chooses to take it at 60, there is a reduced benefit "penalty".
Originally posted by tamilkuravan
My understanding is that pension (CPP) is paid only after the age of 60.
The longer you wait, the better the benefit.
So someone starting CPP at 70 will get max benefit, all else being equal.
In 2009, govt. increased the penalties for taking CPP early.
Maybe they are hoping that some of the folks who wait between 60 and 70 may not end up taking CPP at all, for obvious (unfortunate) reasons.
Quote:There is coordination of benefits between DBP (like teachers, health care, etc.) and CPP.
Does the Govt pension (a extra pension like the teachers pension) start when you quit / leave the company at whatever age, say like 45? It is a big ambigous.
45 is too early for any type of full DBP benefits to kick in.
55 is perhaps the earliest at which one can get full DBP benefits.
But to get full DBP at 55, it would probably have been the person's first job out of school and he/she would have stuck to it for 30 full years.
Once CPP kicks in, the DBP is adjusted to account for the CPP.
The net effect is more or less the same (not exactly the same because of actuarial assumptions, but close enough).
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