Notice to all Public Service Physicians
As you know, severance pay due to resignation or retirement was eliminated under the terms of the new collective agreement. Severance termination benefits will be paid according to section 19.05 with three terms of payment options stated in section 19.06:
“The amount to which an employee is entitled shall be paid, at the employee’s discretion, either:
(a) as a single payment at the rate of pay of the employee’s substantive position as of DATE OF SIGNING OF NEW COLLECTIVE AGREEMENT, or
(b) as a single payment at the time of the employee’s termination of employment from the core public administration, based on the rate of pay of the employee’s substantive position at the date of termination of employment from the core public administration, or
(c) as a combination of (a) and (b), pursuant to 19.07 (c)”
You will have six months from June 12, 2012 (the date of signing of the new collective agreement) to advise the employer of your payment option. As physicians are receiving a significant pay increase on October 1, 2012, it is to your advantage to go with option (b) if you can wait. In all cases, the Professional Institute generally recommends you discuss these payment options with a financial advisor. For physicians this is quite a unique set of circumstances, therefore we feel you need to consider these options with even more care.