{"id":167113,"date":"2025-12-04T03:48:16","date_gmt":"2025-12-04T03:48:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/167113\/"},"modified":"2025-12-04T03:48:16","modified_gmt":"2025-12-04T03:48:16","slug":"early-retirement-and-pension-waivers-what-you-need-to-know-as-a-federal-public-service-worker","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/167113\/","title":{"rendered":"Early retirement and pension waivers: What you need to know as a federal public service worker\u00a0"},"content":{"rendered":"<p paraeid=\"{102d5e82-e641-48a7-b980-85a4b5c3d70c}{171}\" paraid=\"127919382\">The federal government\u00a0announced plans\u00a0in\u00a0last month\u2019s budget\u00a0to move ahead with\u00a0tens of thousands of\u00a0cuts\u00a0to\u00a0federal\u00a0the\u00a0public\u00a0service.\u00a0\u00a0<\/p>\n<p paraeid=\"{7e4ab753-6939-459b-b379-21d6058829fd}{54}\" paraid=\"174912887\">But that\u00a0doesn\u2019t\u00a0mean\u00a0you\u2019ll\u00a0lose your job.\u00a0While the employer says many of these cuts will be through attrition and early retirement, PSAC is pushing back on cuts to services, and\u00a0we\u2019ll\u00a0be there to fight to ensure you receive the full benefits\u00a0of your collective agreement.\u00a0That\u2019s\u00a0because for decades,\u00a0we\u2019ve\u00a0negotiated the strongest Workforce Adjustment protections in the country that lay out clear options if your job is\u00a0impacted\u00a0\u2013 and\u00a0we\u2019re\u00a0at the bargaining table right now\u00a0<a href=\"https:\/\/psacunion.ca\/pa-bargaining-union-pushes-new-protections-job\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">fighting for even stronger safeguards<\/a>.\u00a0<\/p>\n<p paraeid=\"{d8246544-af8c-4944-94b6-66ba22efcd19}{237}\" paraid=\"867695860\">During the sweeping Harper cuts, one in seven PSAC members received affected notices, but WFA protections like alternation and other measures meant that only a fraction\u00a0of affected\u00a0members\u00a0left the public service\u00a0involuntarily.\u00a0<\/p>\n<p paraeid=\"{8460f3fa-d9a6-495b-8c60-55d2728866dd}{66}\" paraid=\"26204648\">Although the government\u00a0hasn\u2019t\u00a0announced the full scope,\u00a0timing, or locations\u00a0of these cuts, you should understand\u00a0your rights and\u00a0your options\u00a0as PSAC continues to fight these cuts and defend your\u00a0rights under\u00a0the\u00a0collective agreement.\u00a0<\/p>\n<p>New early retirement incentive\u00a0<\/p>\n<p paraeid=\"{6c11e214-3cd9-474c-b5b5-52a02f61f04d}{224}\" paraid=\"92373991\">This week, PSAC members have started receiving letters from their employer\u00a0notifying them\u00a0they may be eligible for the\u00a0government\u2019s\u00a0<a href=\"https:\/\/psacunion.ca\/psac-seeks-clarification-treasury-board-and-cra\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">new early retirement incentive<\/a>\u00a0(ERI).\u00a0While the employer says ERI exists outside of the negotiated workforce adjustment process,\u00a0PSAC\u2019s\u00a0position is that all involuntary layoffs\u00a0fall under the collective agreement, and we will enforce it.\u00a0\u00a0<\/p>\n<p paraeid=\"{db19cad5-cda9-450d-8208-87dea70399b2}{236}\" paraid=\"2071024593\">The government\u00a0hasn\u2019t\u00a0announced all\u00a0the\u00a0details\u00a0of the program.\u00a0But\u00a0one thing is clear:\u00a0accepting\u00a0the\u00a0ERI\u00a0means\u00a0you\u00a0may\u00a0not\u00a0be\u00a0entitled to the\u00a0transition\u00a0support\u00a0measure \u2014 the\u00a0lump sum payment based on years of service\u00a0that PSAC\u00a0negotiated\u00a0as\u00a0part\u00a0of\u00a0the\u00a0workforce adjustment and employment transition\u00a0process.\u00a0That means you\u00a0may not\u00a0receive\u00a0the\u00a0entitlements\u00a0negotiated in our collective agreements to mitigate the harm of job cuts.\u00a0<\/p>\n<p paraeid=\"{6c11e214-3cd9-474c-b5b5-52a02f61f04d}{229}\" paraid=\"206545645\">PSAC welcomes\u00a0efforts\u00a0to\u00a0prevent involuntary layoffs. But\u00a0any\u00a0early departure program must be negotiated with the union and\u00a0must\u00a0honour\u00a0the hard-fought contractual benefits enshrined in\u00a0our collective\u00a0agreements.\u00a0We are pressing\u00a0the government\u00a0to meet with us to discuss\u00a0the\u00a0full details\u00a0of the\u00a0ERI.\u00a0Once\u00a0we have this information,\u00a0we will\u00a0provide\u00a0further\u00a0advice\u00a0to members.\u00a0<\/p>\n<p paraeid=\"{cdb5d506-e776-4cdb-8dd6-94d554780d33}{255}\" paraid=\"1790264786\">Members should carefully consider their options and understand their rights before making an informed\u00a0decision.\u00a0\u00a0<\/p>\n<p>Existing pension waiver\u00a0option\u00a0<\/p>\n<p paraeid=\"{9155daab-85e0-4d7a-9444-1d2f347a3add}{107}\" paraid=\"19492549\">Under the\u00a0Public Service Superannuation Act,\u00a0Treasury\u00a0Board can waive the pension reduction that normally applies when an employee retires\u00a0before meeting the plan\u2019s age and service requirements.\u00a0<\/p>\n<p paraeid=\"{023a24c8-426c-4231-b702-cf7d880b212c}{240}\" paraid=\"1302280891\">Normally, your pension is reduced by\u00a05% for each year\u00a0you retire early. For example,\u00a0retiring\u00a0five years early\u00a0would mean\u00a0a\u00a025%\u00a0reduction.\u00a0However, during\u00a0workforce adjustment or employment transition\u00a0\u2014\u00a0including when you are laid off\u00a0or alternate with\u00a0someone\u00a0who\u00a0has been declared surplus\u00a0\u2014\u00a0this reduction\u00a0can be\u00a0waived for eligible employees.\u00a0<\/p>\n<p paraeid=\"{615eee3c-9fb6-46c9-ab21-be10df25529d}{99}\" paraid=\"573708261\">To qualify, you must meet all the following conditions:\u00a0<\/p>\n<p>You retired involuntarily (this includes voluntary departure programs and alternation);\u00a0<br \/>\n\tYou are within five years of the\u00a0pension\u00a0eligibility\u00a0age;\u00a0<br \/>\n\tYou have two or more years of pensionable service;\u00a0<br \/>\n\tYou have worked in the federal public service for at least 10 years in total.\u00a0<\/p>\n<p paraeid=\"{615eee3c-9fb6-46c9-ab21-be10df25529d}{113}\" paraid=\"127023165\">Check which rules apply to you\u00a0in terms of age requirements:\u00a0<\/p>\n<p>How to apply for a pension waiver\u00a0<\/p>\n<p paraeid=\"{6c11e214-3cd9-474c-b5b5-52a02f61f04d}{128}\" paraid=\"1021479662\">A pension waiver must be\u00a0certified by your\u00a0deputy head\u00a0\u2014 typically\u00a0a\u00a0deputy minister for Treasury Board\u00a0departments, the commissioner for CRA, chief executive officer for Parks, and president for CFIA. Deputy heads\u202fdo not\u00a0approve or deny waivers, they only confirm\u00a0whether\u00a0you meet\u00a0the eligibility criteria.\u00a0<\/p>\n<p paraeid=\"{6c11e214-3cd9-474c-b5b5-52a02f61f04d}{134}\" paraid=\"356134507\">You may ask your manager to have\u00a0<a href=\"https:\/\/www.tpsgc-pwgsc.gc.ca\/remuneration-compensation\/services-paye-pay-services\/form\/html\/2429-eng.html\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">the form<\/a>\u00a0completed by the deputy head, so that you can\u00a0submit\u00a0it to the\u00a0<a href=\"https:\/\/www.canada.ca\/en\/public-services-procurement\/services\/pay-pension\/public-service-pension-plan\/contact.html\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">Government of Canada Pension Centre<\/a>. If all conditions are met, the Pension Centre will process the waiver.\u00a0<\/p>\n<p paraeid=\"{6616ab38-6a71-4fdc-92d2-b0d4c56870b4}{31}\" paraid=\"1033065926\">If your\u00a0pension waiver\u00a0request is\u00a0denied, contact\u00a0your\u00a0<a href=\"https:\/\/psacunion.ca\/components\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">PSAC\u00a0component<\/a>\u00a0to\u00a0understand why and discuss your next steps.\u00a0<\/p>\n<p>How alternation works\u00a0<\/p>\n<p paraeid=\"{30d19947-759d-4a08-ad47-bfb6faaefbc0}{83}\" paraid=\"2007560737\">If retirement is on the horizon for you,\u00a0alternation\u00a0may be\u00a0an option. Alternation\u00a0allows\u00a0a non-affected, indeterminate employee to\u00a0\u201cswap\u201d positions with an\u00a0employee who\u00a0has been declared affected or surplus. This lets the affected\u00a0employee\u00a0keep their\u00a0job and\u00a0would allow you to leave\u00a0the\u00a0public\u00a0service early.\u00a0<\/p>\n<p paraeid=\"{a81908a5-bdd4-4237-b6e9-aa4b0366e81e}{227}\" paraid=\"2028392085\">Key considerations:\u00a0<\/p>\n<p>Alternation is available from the start of the 120-day decision period until the end of the\u00a0surplus period\u00a0(for those who chose\u00a0Option\u00a0A).\u00a0<br \/>\n\tThe alternation must result in the\u00a0permanent elimination\u00a0of the affected employee\u2019s position.\u00a0<br \/>\n\tManagement has final approval.\u00a0<br \/>\n\tAlternation must be between\u00a0employees in the same group and level or equivalent positions, as long as salary discrepancies do not exceed six per cent.\u00a0<\/p>\n<p paraeid=\"{36585e26-0611-4c49-8267-62e49ecef1f2}{26}\" paraid=\"1763781857\">If you alternate to leave the public service, you are entitled to:\u00a0<\/p>\n<p>Option\u00a0B \u2013 Transition support measure:\u00a0A\u00a0lump-sum\u00a0payment based on years of service.\u00a0<br \/>\n\tOption\u00a0C (i) \u2013 Education allowance:\u00a0The same\u00a0lump sum payment,\u00a0plus up to $17,000 in reimbursable education expenses.\u00a0<\/p>\n<p paraeid=\"{f84ce763-e321-47ff-9f10-526149f74f1d}{248}\" paraid=\"373091376\">Visit PSAC\u2019s\u00a0<a href=\"https:\/\/psacunion.ca\/alternation-links\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">alternation platform<\/a>\u00a0to register and browse listings for\u00a0potential\u00a0alternation matches.\u00a0<\/p>\n<p>Next steps\u00a0<\/p>\n<p paraeid=\"{8b4fbf7a-3770-4180-a3fe-840c1f3b462c}{11}\" paraid=\"1345023021\">Before making any decisions about retirement, alternation,\u00a0or voluntary departure,\u00a0speak with\u00a0your\u00a0<a href=\"https:\/\/psacunion.ca\/components\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">PSAC\u00a0component<\/a>\u00a0to understand how the pension waiver,\u00a0alternation,\u00a0or the proposed\u00a0ERI might apply to your specific situation.\u00a0<\/p>\n<p paraeid=\"{228ebaa9-b38f-48c2-83e8-95c6d57ca5ad}{148}\" paraid=\"2011545681\">PSAC is fighting\u00a0these cuts\u00a0on every front,\u00a0through\u00a0government relations, media, and direct engagement with members. We will continue\u00a0to defend your rights\u00a0and the protections\u00a0you\u2019ve\u00a0secured through collective bargaining.\u00a0<\/p>\n<p paraeid=\"{8b4fbf7a-3770-4180-a3fe-840c1f3b462c}{47}\" paraid=\"1613673292\">Visit\u00a0our\u00a0<a href=\"https:\/\/psacunion.ca\/faq-links\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">frequently asked questions<\/a>\u00a0to learn more about pension\u00a0waivers,\u00a0alternation, and the workforce adjustment\u00a0and\u00a0employment transition process.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"The federal government\u00a0announced plans\u00a0in\u00a0last month\u2019s budget\u00a0to move ahead with\u00a0tens of thousands of\u00a0cuts\u00a0to\u00a0federal\u00a0the\u00a0public\u00a0service.\u00a0\u00a0 But that\u00a0doesn\u2019t\u00a0mean\u00a0you\u2019ll\u00a0lose your job.\u00a0While the employer&hellip;\n","protected":false},"author":2,"featured_media":167114,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":{"0":"post-167113","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz","13":"tag-personal-finance","14":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/167113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=167113"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/167113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/167114"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=167113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=167113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=167113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}