Yes.

Yes.

Members may receive their eligible Severance pay entitlement in cash, transfer to an RRSP*, take as a leave with pay or a combination.

*Transfers to an RRSP: There is an Income Tax Act provision that allows $2,000 for each year or part year of service up to December 31, 1995, plus an additional $1,500 per year for service before January 1, 1989 if the pension for that period was not vested with the employer. The employer will determine if a member is eligible to transfer any of the Severance payment under this provision which does not affect a member’s Personal RRSP Deduction Limit.

NOTE: The $1,500 calculation above will not apply to members who have been employed by the Ontario Provincial Police (OPP) /Ontario Public Service (OPS) and have always paid into the Public Service Pension Plan and have completed or are in the processing of “buying back” any non-contributory OPS service.

Example:
OSS/OPS Hire Date: December 14, 1981

Retirement Date: December 31, 2011

Salary: $90,997.00

Entitlement: 26 weeks x $1,743.95 = $45,342.70

ITA provision: 1995 – 1981 = 15 years x $2,000 = $30,000 (Refer to “Transfers to an RRSP”)

Member can transfer up to $30,000 of the $45,342.70 to an RRSP (member RRSP only) with no income tax deducted and the balance of $15,342.70 can be paid in cash, transferred to an RRSP (member or spousal RRSP) if the member has personal RRSP room, take a leave with pay or a combination.

As per Article 8 of the Uniform Collective Agreement and Article 31 of the Civilian Collective Agreement:

• Members hired by the Ontario Public Service after January 1, 1970 are entitled to one week of salary for each year of continuous service to a maximum of 26 week’s salary.
• Members hired by the Ontario Public Service after January 1, 2009 are entitled to one week of salary for each year of continuous service to a maximum of 13 week’s salary.

NOTE: Leaves WITHOUT pay greater than 30 days may affect severance entitlement (excluding Pregnancy, Parental, LTIP or WSIB leaves)

Please note that the Severance Pay must be confirmed by the employer. Refer to question 10.

Yes, based on your Severance entitlement, refer to question 3.

Yes, based on your Severance entitlement, refer to question 3.