Just kinda re-reading off capfriendly here...
When a team trades a player, they have the option to retain a part of their salary (and cap hit). The team who retains the salary then pays the retained percentage of the salary, and also retains the percentage of the cap hit until the contract expires. The following requirements must be met to retain salary:
The percentage retained cannot exceed 50 percent of the player’s salary (including all bonuses) and Salary Cap Hit.
The same percentage must be retained for both the player’s salary and Salary Cap Hit, and cannot be modified.
All teams are limited to a maximum of 3 retained salary contracts per season.
Teams cannot retain an aggregate amount of more than 15 percent of the Salary Cap Upper Limit.
Players’ contracts are limited to 2 retained salary transactions per contract.
Once a retained salary transcation has occured, there are various limitations, such as:
A team cannot reacquire a player whom they have retained salary from for a minimum of one year after the date of the transaction, or unless the player's contract expires or is terminated prior to the one-year date.
All teams involved in a retained salary transaction will have cap implications if the contract is bought out or terminated.
Teams who retain salary on a players contract, will have the full value of the cap hit act against the teams salary cap total, regardless of whether the player is reassigned to the minors by their current team.
If we retain 50% of Baer's salary($3,366,666/2=$1,683,333) to, say, mtl, then they bury him in the minors, that takes another $1.075 mil off mtl's cap hit leaving it at $608,333, (original math was right) while we still get hit with the $1,683,333 regardless... or am I missing something here?