Directive on Retirement Leave

Effective Date: April 1, 2018
Responsibility: Vice-President, People and Culture

APPLICATION

This Directive applies to employees who are eligible for long service gratuity and elect an immediate pension at time of retirement from active service.

DEFINITIONS

Long Service Gratuity: A lump sum payment provided, if eligible, at time of election for an immediate pension, also commonly known as “LSG”.

Retirement Leave: A long service gratuity entitlement (or part thereof) used as a period of leave with pay in lieu of a lump sum payment.

DIRECTIVE STATEMENTS

Note: Governing policies and procedures for unionized employees found in the applicable collective agreements apply if they differ from this Policy and its subsidiary instruments.

  1. An employee eligible for long service gratuity from the Corporation is entitled to elect an equivalent period of Retirement Leave in lieu of the lump sum payment, or a combination of Retirement Leave and lump sum payment.
  2. Retirement Leave must be taken in complete calendar months and the leave cannot exceed the equivalent severance payment entitlement.
  3. The period of Retirement Leave will count as service for the purpose of the CBC Pension Plan and the employee must make the appropriate contributions.
  4. Retirement Leave cannot extend beyond November 30 of the year an employee turns 71, at which time an employee must take his/her pension (in accordance with Income Tax Act regulations).
  5. During the period of Retirement Leave, an employee will continue coverage for the Corporation’s group benefit plans, with the exception of short-term disability (STD) and long-term disability (LTD), as the employee will not be entitled to these coverages. Deductions will be made accordingly.
  6. An employee does not accumulate leave credits while on Retirement Leave, and is not eligible for any other form of leave (such as annual leave, special leave and short-term disability), nor will the employee be eligible for paid statutory holidays occurring during the period of Retirement Leave.
  7. The period of Retirement Leave does not count as service for the purpose of determining a severance pay entitlement or long service awards.
  8. While on Retirement Leave, an employee is eligible to receive scale increases and anniversary increases.
  9. An employee, whose long service gratuity entitlement is not based on current salary in accordance with policy or collective agreement (i.e., at March 31, 2005 or at July 1, 2005), is placed on a secondary salary to reflect the applicable salary during the Retirement Leave period. Group benefits and pension continue to be based on primary salary.
  10. An employee who is working a part-time schedule at the time of retirement is placed on a secondary full-time salary to reflect the period of his/her Retirement Leave.
  11. Once an employee elects the Retirement Leave option, his/her decision is irrevocable; the employee is considered separated and deemed retired from the Corporation and, consequently, may not return to work during or after the period of Retirement Leave.

TOOLS

REFERENCES

INQUIRIES

All questions pertaining to the application of this Directive should be referred to the Shared Services Centre.

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