Severance Pay

[Chargersfan]

If getting medically released, are the severance pay weeks ‘pensionable time’?

 

[dapaterson]

No. Severance pay is not pensionable for the purposes of the CFSA.

 

[Chargersfan]

No. Severance pay is not pensionable for the purposes of the CFSA.

Thanks! So, the only deductions should be tax and CPP, EI?

 

[dapaterson]

That's my understanding.

Severance Pay is paid out after your release.

 

[dapaterson]

If you have available RRSP contribution room you can have severance deposited directly into your RRSO, without tax withholding.

You will also have severance pay adjusted if there is a retroactive pay increase that affects the pay rate on the date of your release.

 

[Chargersfan]

If you have available RRSP contribution room you can have severance deposited directly into your RRSO, without tax withholding.

You will also have severance pay adjusted if there is a retroactive pay increase that affects the pay rate on the date of your release.

Awesome, thanks!