If an employee is affected and declared surplus, they may receive a Guarantee of a Reasonable Job Offer. In this case, they remain in surplus preferred status and continue to be paid until the employer provides them with a reasonable job offer.

The definition of a reasonable job offer is an offer of indeterminate employment within the CRA, normally at an equivalent level, but which could include lower levels. Surplus employees must be both trainable and mobile.

Where practicable, a reasonable job offer shall be within the employee’s headquarters as defined in the NJC Travel Directive. A reasonable job offer may also come from another public service employer, provided the appointment is at a rate of pay and salary maximum not less than the employee’s current amount, and it is a seamless transfer of all employee benefits.

A Guarantee of a Reasonable Job Offer cannot be rescinded.

If you are given a reasonable job offer at a lower classification level, you will be salary protected at your prior substantive classification level for the duration that you occupy the new position. This salary protection is known informally as red circling. If you deploy out of the position or resign and later return to the CRA, you are no longer entitled to salary protection. In rare cases, your new classification level may move above the value of your prior classification, in which case you would be entitled to eliminate your salary protection.

In the event you secure a reasonable job offer that is located more than 40 km from your prior home office, you are entitled to relocation costs under the CRA Directive on Relocation.

In accordance with Article 1.1.6 of the WFA Appendix in your collective agreement, the commissioner is expected to provide a Guarantee of a Reasonable Job Offer (GRJO) to affected employees for whom they know or can predict that employment will be available at the CRA. This requirement has generally been interpreted to mean management has to consider job opportunities that might become available in the following year.

The 120-day period begins on the date of receipt of the letter notifying the employee that they are deemed an opting employee. It does not begin when the employee receives the notice of affected status letter, unless the letter states that the employee is being made opting then. If the employee fails to communicate their choice within the stated timeframe, they will be deemed to have selected option 6.4.1a, to be placed on the surplus preferred list for a period of 12–16 months, after which they will be laid off if no employment has been secured.

There are no provisions to “pause” the employee’s 120-day opting period once the opting letter is issued.

If you select Option A in Article 6.4.1 of the WFAA, you will have a 12–16-month surplus preferred period. This means that for any job for which you meet the essential merit criteria, your candidacy is identified to the hiring manager through the preferred list, and you are entitled to the position above all other candidates. While this process is automated, you still share responsibility for locating suitable work and bringing to your managers’ attention any job opportunities that you would like to be considered for. You are removed from the preferred list as soon as you find alternative work.

If you believe you have a suitable alternative job available, you could choose Option A of Article 6.4.1 in the WFAA and pursue the employment opportunity with surplus preferred status. However, you should be cautious about any informal or verbal commitment and seek appropriate counselling before making your decision.

A member who chooses Option A is expected to continue to be given meaningful work during their surplus preferred period. However, their number one priority is finding a new job, and management must facilitate that. They must be given time to job search and are entitled to assistance.

The Workforce Adjustment Appendix outlines many of management’s obligations. See article 1.1.29.

The employer may offer a surplus preferred employee a reasonable job offer (RJO) that involves relocation, but in practice this is unlikely to occur. Usually, a reasonable job offer is found by the employee during their surplus preferred period, so if an employee is not interested in relocating then they will not pursue this job opportunity.

The employer has the same duty to accommodate employees who are surplus, just as for those who are not surplus.

The surplus employee’s number one priority is finding a new job, and management must facilitate that. They must be given time out of their workday to job search, attend interviews, work on their CV, network, and they are entitled to assistance from the employer to carry out these activities.

The collective agreement does not limit the tuition reimbursement to specific institutions or types of study. There are no limits on what you can study as long as it’s a program at a recognized educational institution, such as a college or university. It can also be used for multiple programs. You must provide receipts to be reimbursed.

The collective agreement is silent about the specific kinds of education that members can claim, but past practice has not narrowly limited either the type or duration of an employee’s education for the purposes of the Education Allowance. You may attend school full-time or part-time and may attend any “recognized learning institution” (college, university, CEGEP, any provincially recognized school board, or certified private educational institution). You are also eligible to attend a recognized learning institution in another country. The CRA has a list of recognized universities and higher educational institutions outside Canada that may assist.

Definitions of “recognized institution” may be found in organizations governed by provincial and territorial income tax acts. Other sources include the Canadian Information Centre for International Credentials (CICIC) Directory of Universities, Colleges and Schools in the Provinces and Territories of Canada, the master list of designated educational institutions in Canada, and the database of private educational institutions.

These are guidelines. There may be other “recognized learning institutions” that are not included but would still be eligible.

Yes, you are entitled to the pension waiver if you meet the eligibility criteria. However, access to the pension waiver is limited to a 12–16-month surplus preferred period. If you take a longer surplus preferred period, you will not have access to the pension waiver.

The Voluntary Departure Program (VDP) allows affected employees to leave their CRA employment by selecting either a Transition Support Measure (TSM) lump-sum payment or a TSM with an additional Education Allowance. Those participating in the VDP are also entitled to severance as per your collective agreement and may be eligible for a pension waiver.

The CRA must establish a VDP for all WFA situations involving five or more affected employees working at the same group and level and in the same work unit.

It is an entirely individual decision to participate or not participate in the VDP. It is important that you assess whether the WFA entitlements are of benefit to you. If you decide VDP is not right for you, then you must wait to learn whether a retention process will take place, whether you will be given a Guarantee of a Reasonable Job Offer, or whether you will be made opting. If there are more volunteers than there are positions to be cut, the volunteers are selected in order of seniority with the most senior granted voluntary departure.

If you participate in a Voluntary Departure Program (VDP) and resign, you are deemed to have been laid off and are therefore eligible to Employment Insurance regular benefits. However, your Transition Support Measure and any severance must first be allocated based on your normal gross weekly earnings, delaying your first week of entitlement to EI benefits accordingly. There are further conditions to demonstrate eligibility for EI benefits in any given week.

Your record of employment (ROE) should indicate “Code G – Retirement (mandatory/approved under the Work Force Reduction program)” as the reason for separation.

Members may apply for Employment Insurance benefits. However, they must meet both the qualifying and entitlement conditions under the Employment Insurance Act. Once an application is submitted, Service Canada will assess whether the individual meets these conditions in order for benefits to be payable.

Eligibility determinations are made on a case-by-case basis, and as such, advice cannot be provided in advance regarding whether an individual will qualify or remain entitled to EI benefits.

Management has the right to determine your departure date. Participating in the Voluntary Departure Program gives you access to Options B and C of Article 6.4.1 of the WFA Appendix of your collective agreement. Article 6.4.2 states: Management will establish the departure date of opting employees who choose Option (b) or Option (c) above.

In Annex B of the WFAA, you will find the years of service calculations for the amount of the Transition Support Measure (TSM).

The calculation of years of service for TSM purposes follows the TBS definitions of continuous and discontinuous service, which is one or more periods of service in the public service as defined by the Federal Public Sector Labour Relations Act (FPSLRA).

Under these definitions, all periods of leave without pay (LWOP) exceeding three months are excluded from the calculation of years of service, with the following exceptions:

• Illness
• Maternity
• Parental
• Educational leave when it is determined to be to the benefit of the employer

The severance article of your collective agreement provides a calculation of severance in the event of layoff and is additional to the TSM. You are also entitled to a payout of any vacation balance outstanding in your account, prorated to the month of your termination.

“Years of service in the public service” for the purposes of the Transition Support Measure is calculated based on continuous/discontinuous service, which “is defined as one or more periods of service in the public service as defined by the Federal Public Sector Labour Relations Act (FPSLRA).”

All periods of leave without pay exceeding three months are excluded from the calculation of years of service, with the following exceptions:

• Illness
• Maternity
• Parental
• Educational leave when it is determined to be to the benefit of the employer

The FPSLRA applies to Schedule I, IV, and V employers. CRA, Parks Canada and CFIA are all Schedule V employers. Crown corporations are Schedule III employers and, therefore, years of service at these would not be included in the calculation of years of service in the public service (for example, the National Gallery of Canada, the National Capital Commission, or the International Development Research Centre). Military members are not subject to the FPSLRA and, therefore, these years of service are also not included.

The TSM is issued no sooner than the effective date of the employee’s notice of resignation and can be paid in one or two lump sums over a maximum two-year period. See Article 6.4.1b) of the Workforce Adjustment Appendix of your collective agreement.

For most work types related to workforce adjustment and related terminations, including the issuance of the Transition Support Measure, the service standard is 25 business days. Once a WFA-related termination case arrives at the Pay Centre, a compensation advisor is assigned to guide the opting employee through the required steps, manage the file through to completion, and ensure that separation payments are issued in a timely manner.

It is important to note, however, that timely issuance of final payments is dependent on the receipt of the completed severance and TSM option forms that the assigned compensation advisor will provide to the employee for completion. Delays in receiving completed documents from the employee will impact timelines for the issuance of these payments.

Yes, the TSM is taxable. No, it is not pensionable.

Article 62 on Severance in the collective agreement requires first calculating the amount of severance owed based on total years of continuous service and then the total amount of the prior termination benefit is subtracted from this amount.

For example, a member who has 29 years of service is entitled to 32 weeks’ pay of severance. However, if they cashed out their 15 years of service in 2012 (an entitlement of 17 weeks), they will now be entitled to 15 weeks of severance (32 weeks minus 17 weeks).

Your Public Service Health Care Plan (PSHCP) and Public Service Dental Care Plan (PSDCP) will be affected as follows:

If you are laid off under a workforce adjustment situation and have a lay-off priority status (unpaid) — meaning you have not received a reasonable job offer and have come to the end of your 12–16-month paid surplus period — you will be eligible to maintain your PSHCP and PSDCP coverage for up to a one year period by paying both the employee and employer share of the PSHCP and PSDCP contributions.

If you resign and accept a Transition Support Measure (TSM), your PSHCP and PSDCP benefit entitlements will stop on the day you stop being employed in the public service.

If you accept a TSM, plus the Education Allowance, you may choose to go on leave without pay for up to two years and can continue your PSHCP and PSDCP coverage by paying both the employee and employer share of the PSHCP and PSDCP contributions. Following these two years, if you do not receive a reasonable job offer, you will be eligible to maintain your PSHCP and PSDCP coverage for up to one year by paying both the employee and employer share of the PSHCP contributions and the PSDCP contributions.

If you are eligible to receive an immediate public service pension benefit at retirement age, you may apply to continue your coverage under the PSHCP as a retired member.

You may also apply for coverage under the Pensioners’ Dental Services Plan (PDSP) as a retired member when in receipt of your immediate public service pension benefit.

Source: Life events: public service group insurance benefit plans (Canada.ca)

Sun Life does not offset any severance or Transition Support Measure payments as “other income.” You are entitled to keep the full value without your disability insurance benefits being reduced.

A retirement is involuntary when an indeterminate employee resigns or is laid off under workforce adjustment or employment transition because of:

• A lack of work;
• The discontinuance of a function;
• A relocation of a work unit where the employee does not wish to relocate;
• An alternative delivery initiative.

To be considered involuntary, you did not receive a Guarantee of a Reasonable Job Offer, and you did not receive an Education Allowance.

A pension waiver must be requested by the person who acts as deputy head, typically the commissioner for CRA. Deputy heads do not have the authority to approve or deny waivers; they only certify whether the employee meets the eligibility criteria. You may ask your manager to have the form completed by the deputy head, so that you can submit it.

The form must be sent to the plan administrator — the Government of Canada Pension Centre for federal employees — which will process the waiver if all conditions are met.

Yes. Separate agencies follow the same pension waiver guidelines as Treasury Board departments. They must also ensure that involuntary departure benefits do not exceed those offered under Treasury Board.

However, non-Treasury Board employees are not eligible if any of the following apply:

• You receive an Education Allowance or similar benefit;
• You refuse a reasonable job offer or hold a Guarantee of a Reasonable Job Offer;
• You receive a surplus period longer than 12 months;
• You receive a Transition Support Measure over 52 weeks;
• You receive greater involuntary departure benefits than those offered.

Involuntary departure benefits refer to any WFA-related benefit in which the duration or amount exceeds what is provided in the core public administration. This includes differences in the surplus preferred period (Option A), Transition Support Measure (Option B), or Education Allowance (Option C).

No. Deputy heads do not have the authority to approve or deny waivers; they only certify whether the employee meets the eligibility criteria.

Yes, if you are eventually laid off (involuntary termination) or if you voluntarily resign during the 12–16-month surplus period, you are still eligible for the pension waiver. For members working at CRA, if you receive a preferred surplus period longer than 12 months, you are not eligible for the pension waiver unless you request layoff at 12 months and decline payment for the remaining period.

Yes, an opting employee who chooses Option B is eligible for the pension waiver.

Yes, but only if you selected Option B and meet all the other criteria.

Yes, if you meet the eligibility criteria and select Option B. You are not eligible if you choose Option C (Education Allowance).

This refers to any WFA-related benefit in which the duration or amount exceeds what is provided in the core public administration. This includes differences in the surplus preferred period (Option A), Transition Support Measure (Option B), or Education Allowance (Option C).

While it is important to start right away with gathering all the information required to make this decision, it is important to emphasize that formal notice of retirement should only be given following approval of an alternation request.

That said, once an alternation is approved, you will finalize the date of retirement with your employer. The employer is required to forward this notice and date to the Government of Canada Pension Centre to calculate and process your pension and benefit entitlements.

In the interim, you can contact the Pension Centre at 1-800-561-7930 to obtain a retirement information package.

Alternation is a powerful tool to reduce involuntary layoffs and provide flexible options for both affected and non-affected employees. It is a negotiated process under the Workforce Adjustment Appendix that allows affected indeterminate employees who have been declared surplus or made opting to exchange positions with non-affected indeterminate employees who voluntarily want to leave the CRA.

Alternations can take place between qualified candidates working at the CRA. Opting employees have 120 days to decide on one of three options or to alternate with a non-affected employee. Employees who are in the 12–16-month surplus preferred period under Option A can also alternate with non-affected employees. Alternations may occur between employees in the same group and level or when the positions are considered equivalent.

Yes. Under Article 6.3 of the WFAA, the CRA must participate. However, alternation can only occur between employees at the Canada Revenue Agency.

To maximize alternation opportunities, create a profile on the PSAC alternation platform, and the CRA alternation platform.

Two positions are equivalent if they are in the same group and level or if the higher-paid position’s maximum salary is no more than 6% higher than the lower-paid position.

Alternation works as a job-saving strategy by allowing an affected employee to remain employed while enabling a non-affected employee to leave with the benefits outlined under Option B or C.

Opting employees may pursue alternation during their 120-day opting period. Those who choose Option A (12–16-month surplus status) may also pursue alternation until the end of their surplus period, or until they accept a reasonable job offer. However, if an employee alternates during their surplus period, their non-affected alternate’s TSM will be reduced by each week that the surplus employee has been in their surplus period at the time of the alternation request.

If you are an opting or surplus employee looking to alternate, or if you are a non-affected employee who wants to leave the public service, you should:

• Advise your manager in writing that you are interested in alternation;
• Request in writing that your employer provide details about the current alternation process;
• Create a profile on the PSAC alternation platform, and CRA’s intranet InfoZone.

To improve your chances of finding a successful match:

• Contact multiple potential alternates;
• Keep track of all potential matches and correspondence;
• Request in writing how your employer plans to assist with the process;
• If a conversation happens by phone, request an email follow-up;
• Save all emails in a secure, accessible location;
• Be assertive and follow up on timelines;
• Keep your union representative informed.

A successful alternation must:

• Permanently eliminate the surplus employee’s position;
• Involve an affected employee who meets all qualifications and language requirements;
• Occur on the same day for both employees;
• Not involve a domino effect or future considerations.

Non-affected employees can express interest in alternation at any time. Opting employees may pursue alternation during their 120-day opting period. Those who choose Option A (12–16-month surplus status) may also pursue alternation until the end of their surplus period, or until they accept a reasonable job offer.

You can withdraw your request at any time prior to exchanging positions.

Once a match is identified, both employees should notify their manager and local union representative in writing and include:

• The name of the other employee;
• A request that your manager/HR officer meet their obligations under Article 6.3 of the WFAA;
• A short response deadline (2–3 days) to avoid delays.

If no match is found within the 120-day opting period, you must decide:

• If you choose Option A, you can continue searching during the 12–16-month surplus preferred period. The non-affected employee will receive a reduced Transition Support Measure benefit.
• If you choose Option B or C, you are no longer eligible to alternate.

If an employee is declared surplus and does not receive a Guarantee of a Reasonable Job Offer, they become an opting employee and must choose one of three options within 120 days:

• Option A – Surplus preferred status for 12–16 months;
• Option B – Transition Support Measure;
• Option C – Education Allowance with Transition Support Measure.

All opting employees are entitled to up to $1,200 for counselling services.

Employees who alternate to leave the CRA are entitled to either Option B or Option C:

• Option B – Transition Support Measure: a lump sum payment based on years of service.
• Option C(i) – Education Allowance: the same Transition Support Measure, plus up to $17,000 for reimbursement of receipted educational expenses.

If an affected employee alternates during their 12–16-month surplus preferred period, the non-affected employee will receive a reduced benefit.

Yes, if the alternation happens during the opting employee’s 120-day period. If it happens during the surplus preferred period, the benefit is reduced by one week for each completed week after surplus status began.

Alternation is a contractual obligation under the collective agreement. Managers can only refuse a request if they can demonstrate that the match won’t retain the necessary skills required to meet operational needs, and retraining couldn’t address the perceived skill gap.

Alternations should not be denied because:

• The alternate’s branch doesn’t want to participate;
• The surplus employee is not a perfect match;
• The Agency isn’t meeting their obligations to assess an alternation in a timely manner;
• The language requirements of the job may change in the future;
• The Agency has future reorganization plans;
• A position was planned to be left vacant after an employee’s future retirement unless the employee has already provided formal notice.

No. If the surplus employee has found a suitable match with a non-affected employee in a different location and is willing to move to that location, management may not refuse the alternation due to relocation.

It depends. If you have been denied the security clearance required or are unable to pass the required second language evaluation, your alternation request may be denied.

However, a request for an alternation cannot be refused solely on the basis that you do not currently have these requirements. The employer should arrange the second language evaluation or submit a security clearance request and make the determination based on the results.

Additionally, an alternation request cannot be refused based solely on the timeliness of an administrative process, such as a second language evaluation or security check.

If you think your alternation request is being delayed or denied without proper justification:

• Keep detailed written records of all conversations;
• Always ask for email follow-ups after verbal discussions;
• Stay in contact with your union representative throughout the process and discuss the possibility of filing a grievance.

The union can take action to support you and uphold your rights during the alternation process, including:

• Raise issues at joint WFA committees or union-management consultation committees;
• Provide advice and support to employees navigating the process;
• Assist you in filing a grievance due to improper denials or delays;
• File policy grievances if the alternation problems extend to other employees.

Yes. During the 2012–2014 Deficit Reduction Action Program, many alternations were denied because managers deliberately ignored the alternation request, security clearances took too long, or managers changed the requirements of a position to create barriers. In response, the PSAC and many of its members grieved these management obstacles and won. The remedy forced the employer to reinstate workers and revisit alternation situations.

No. Salary protection only applies to members moved into lower-level positions and not equivalent positions, which is the case with an alternation.

You don’t need your PSAC member ID to create an account. However, you do need to be a member in the PSAC database. If our records don’t have your current name or email, that may cause an issue. If you need support creating your account, please contact PSAC.

Click on the Edit account tab at the top of the page. Make your changes and ensure all fields are complete before saving.

To delete your posting, you’ll have to delete your account. Click on the Profile tab at the top of the page. At the bottom, you’ll see an option to delete your account. Click Confirm and your posting will be removed. Deleting your account will also remove your access to the platform.

Alternation can only occur between employees who have the same employer. For example, employees under Treasury Board can alternate with each other, but not with employees at CRA, Parks Canada, or CFIA.

The platform was designed to help PSAC members connect directly with one another to explore potential matches and take advantage of this important provision in the collective agreement. A key part of setting up a successful alternation is being able to contact the other member to discuss details. For that reason, your name, email, and job information are visible to other registered members.

No. This platform is exclusively for PSAC members. If you belong to another union, please check with them directly, as other federal unions may have their own systems to support members through the alternation process.

The platform helps you identify potential matches. If another member is interested in your posting, they can reach out to you directly using the email address linked to your account. All communication between members takes place outside the platform. We encourage you to be proactive in your search for a match.

Once you’ve identified a potential match, both of you must bring the proposal to your managers for review and approval. The employer makes the final decision. They cannot unreasonably deny requests or delay to the point of preventing the alternation from taking place. If your request is denied, ask for the reasons for the denial in writing and reach out to your PSAC component for support.

For more information and resources, visit the workforce adjustment. page. Helpful tools include the member guide, affected employee checklist, alternation platform, process flowchart, and glossary.

For personal assistance, contact your local representative, PSAC component, or PSAC regional office.

The ERI allows eligible members to retire up to five years earlier than the current pension waiver entitlement and without the normal pension reduction that usually applies when someone retires before meeting the regular age and service requirements.

Budget 2025 received Royal Assent on March 26, 2026. This means that the government’s temporary, voluntary ERI program is now in effect. Consider your options before deciding if this new program is right for you.

Eligible employees can apply to retire with an unreduced pension until July 24, 2026, and approved applicants must retire by January 20, 2027.

Meeting the age and service rules does not guarantee approval. The government has confirmed that each applicant must also be approved based on whether the organization needs to reduce its workforce, whether services can be maintained, and whether operational needs will continue to be met. In other words, you may be eligible to apply, but management still decides whether you can go.

Consider your options before deciding if this new program is right for you.

No. Even if you meet the age and service rules, the government says your Deputy Head must still confirm that:

• the organization needs to reduce its workforce;
• services will be maintained;
• operational or business needs will continue to be met.

That means ERI is discretionary. Meeting the basic eligibility rules is only one part of the process.

No. A letter means you may be eligible to apply. It does not mean you will be approved, and it does not tell you whether ERI is actually the best option for you. The government says approval still depends on Deputy Head review and whether your departure fits workforce reduction and operational needs.

For many PSAC members working in the federal public service, the question is whether ERI is a better option than the negotiated protections and rights already available under the Workforce Adjustment Appendix.

Consider your options before deciding if this new program is right for you.

No, you can only access one or the other. You will have to review the implications of accessing WFA entitlements compared to the ERI to determine which is most advantageous for you.

Yes. If you qualify for the pension waiver under WFA, that is generally the option to compare first, because WFA may also come with other negotiated entitlements that ERI does not provide.

Depending on your situation, taking ERI could mean giving up other entitlements negotiated under collective agreements to reduce the harm of job cuts, including:

• A cash payment based on years of service (the Transition Support Measure)
• Up to $17,000 in reimbursable educational expenses
• Up to $1,200 for counselling services to support potential re-employment or retirement, including financial counselling and job placement assistance

No. ERI offers an unreduced pension if approved, but it does not come with the cash payments or supports that may be available through WFA pathways. That is why the real comparison is not just reduced pension versus unreduced pension.

There is no one-size-fits-all answer. This is exactly the kind of situation where you need to compare:

• what ERI would give you;
• whether you may qualify for an existing pension waiver;
• the value of any TSM, Education Allowance, or other WFA entitlements;
• how much flexibility you are willing to give up.

The government says that once your manager accepts your resignation, you can no longer withdraw your ERI application. Your retirement date becomes irrevocable, unless the Pension Centre later decides you do not meet the eligibility requirements.

Before applying for ERI, members should:

• Get a pension estimate by signing in to My GC Pension Portal to create or view your pension estimates (accessible only on the Government of Canada network), by using the basic pension calculator, or contacting the Pension Centre.
• Calculate the value of possible existing entitlements, including the Transition Support Measure or Education Allowance, using PSAC’s member materials for guidance.
• Check whether you may qualify for an existing pension waiver under the WFA Appendix.
• Speak with your PSAC component or local union representative before making a decision.
• Contact the Pension Centre or book an ERI pension counselling appointment (e.g., monthly pension benefits and payment options, health and dental insurance coverage, impacts of periods of leave without pay, buyback of prior pensionable service, division of pension benefits following separation or divorce).
• Consider getting independent financial advice.

Alternation allows a non-affected indeterminate employee to swap positions with an affected or surplus employee, allowing the affected employee to remain employed while the alternate leaves the public service. If you alternate to leave, you may be entitled to Option B: Transition Support Measure and/or Option C(i): Education Allowance, including the same lump sum plus up to $17,000 in education expenses. That means for some members, alternation may be a more valuable pathway than ERI.