Retiring Allowances
  • arise from severance pay, sick leave credits, court awards for wrongful dismissal
  • included in earned income, but can transfer tax-free to your RRSP without using up the contribution limits
  • provided while working but not part of employer’s RPP or DPSP; max 2.5x former employee’s 5 year average salary (confirm)
  • earned for each year of employment up to and including 1995
    • none for employment in 1996 or later
  • amount varies by year
    • before 1996: $2,000, plus
    • before 1989: $1,500
before 1989 before 1996 1996+
$1,500 per year of employment for which employer contributions to pension plan have not vested $2,000 per calendar year of service $0

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