Q: Is there an early retirement incentive if I am subject to a workforce adjustment?
A: The Treasury Board has a policy, pursuant to the Public Service Superannuation Act, that allows public service employees in certain WFA situations to retire at age 55 with at least ten years of service. In these cases, the normal pension reduction would be waived, in whole or in part, so that the employee may retire with no penalty or a reduced penalty.
If you are an indeterminate employee under Treasury Board who has been affected by a WFA situation, you must meet one of the following conditions in order to qualify:
- you are a surplus employee who has not received aguarantee of a reasonable job offer (an “opting employee”) and a) are laid-off, b) resign in exchange for a payment in lieu of surplus, or c) resign with atransition support measure; OR
- you are an employee whose services are no longer required by reason of a total facility closure, arelocation of a work unit, or an alternative delivery initiative who has not received a reasonable job offer, and you resign with a retention payment.
Note that employees in receipt of a guarantee of a reasonable job offer, employees who choose the education allowance, or employees who refuse a reasonable job offer, are not entitled to the pension waiver.
For more information about the pension waiver, see Workforce Adjustment and Pension Waivers.
Q: Are the transition support measure and the education allowance pensionable earnings?
A: In accordance with the provisions of the Public Service Superannuation Act and Regulations (PSSA), the transitional support measure and education allowance are not considered as pensionable earnings.
Q: What if I am ready to retire and want to exchange positions with someone who is surplus, so I can access the WFA payments?
A: A person who wants to leave the public service and is not affected by WFA can indicate to management that they want to alternate with an opting employee, in exchange for resigning with the transition support measure or the education allowance. They may then be eligible for the pension penalty waiver (if they meet certain conditions). See the question and answer regarding alternation for information on these conditions.
See also Retiring from the Public Service of Canada: Some Useful Tips