Council Approves Retirement Incentive Offer
It was announced by the Manager of Human Resources today that at the July 26, 2012 closed Council meeting, Council endorsed a recommendation to offer employees who are comtemplating retirement in 2012 or early 2013 an incentive for early notification.
- Regular Employees 55 years old @ 2012-12-31
- Regular Employees 15+ years of service
Incentive Offer for Eligible Employees:
- Employee must submit ‘notice to retire’ before September 30, 2012
- Employee’s ‘last day on the job’ must be before December 31, 2012
- Earn annual 2013 vacation entitlement plus bonus vacation for 2013, if eligible, even though vacating position in 2012
- If retirement date is in 2012, the 2013 vacation incentive may be taken prior to retirement date or will be paid as a lump sum in January 2013 (budget/taxation year)
- Option to use eligible retiring allowance as ‘salary continuance’ - extends termination date and is considered pensionable contributions/service.
- Using retiring allowance as salary continuance must commence no later than December 1, 2012.
- Retiring employee may be assigned to train their replacement or position may remain vacant until next fiscal year.
- Once retirement notification is accepted by the District, the employee’s decision is irrevocable for any and all reasons
- A one-time offer only
- Offer open until September 30, 2012
Benefit to employee:
- Employees often wait until early the following calendar year to qualify for their full annual vacation entitlement. This plan offers 2013 vacation in 2012 in exchange for early retirement notification.
- When retiring allowance is paid as salary continuance it may bridge employee to MPP rule of ‘90/80’ or to age 60 for an unreduced pension or simply increases pensionable service.
- Salary continuance postpones termination (retirement) date and earnings are considered pensionable contributions and service
- Health benefits are maintained until retirement date but employee is no longer entitled to accrue entitlement such as seniority/vacation leave/sick leave or LTD (exempt only).