Pension Reduction Waiver and Workforce Adjustment (WFA)
A waiver is the removal of the normal reduction to a pension benefit that is applied because the individual, at termination, did not meet the age and service thresholds to receive an unreduced pension. This reduction would normally be five percent (5%) for every year that the individual's pensionable service credit is less than thirty years or the age is less than 60 years.
There are provisions in place that allow for this reduction to be "waived" or set aside under Workforce Adjustment. To be eligible for a Waiver (unreduced benefit), certain requirements need to be met:
- the employee's position must be declared "surplus";
- the employee must be between age 55 and 59 (up to age 60);
- the employee must have at least 10 years of employment in the public service.
An employee is only eligible for a waiver under certain conditions, including the following which is pertinent for PIPSC members affected by WFA:
- a surplus employee who has not received a guarantee of a reasonable job offer under the WFA and who is laid-off, or resigns in exchange for a payment representing payment in lieu of surplus period;
- an employee whose services will no longer be required because of a work force adjustment situation, who has not received a guarantee of a reasonable job offer and who is granted a Transition Support Measure in accordance with the WFA and who resigns from the public service;
- the employee cannot be in receipt of an educational allowance.
The form must be certified by the Deputy Head or the delegated authority for the employing department to ensure you meet the conditions to process an Annual Allowance with a waiver of the reduction.
This waiver is not an entitlement within the WFA provisions of the collective agreement and questions about the waiver should be directed to your Compensation Advisor, your manager and/or the Public Service Pension Centre at 1-800-561-7930
The Pension Waiver Request form is available at: