Message to PIPSC Members regarding Severance Pay
Dear VM & S&A members,
As you are aware, now that your contracts are settled, there is the issue of severance pay that needs to be dealt with. Employees have 3 options on what to do with their severance pay: cash out their accumulated severance pay, cash out some and leave the rest until retirement, or leave it all in until retirement. Depending on how many years of service you have, this can be a sizable amount for many of you and the payout benefit is a taxable amount.
You may want to be aware and prepared for this possibility. Some of you may need to ensure you have sufficient RRSP space to avoid tax liability. This is a video that was sent to PIPSC members who have signed collective agreements in the past 3 years and we hope you find some time to view as well as find useful information.
A Severance Video by PIPSC to give you options as you await our anticipated collective agreement being finalized this year.
Section 13 of this retirement video discusses Severance Pay and explains the prior to 1996 provision, which will be helpful for some.
In hopes you find this material useful,