INTENT
Carraway Inc. is committed to showing respect and recognition to any employees who have reached the age of 65, with the understanding that there is no mandatory retirement age in Canada. This policy has been adopted to serve as a guide for the retirement process, and the actions required on the part of both management and the employees to ensure a smooth transition. This policy includes the best practice of providing guidance to retiring employees regarding their income options following retirement.
DEFINITIONS
Federal definitions of retirement options were provided by the Government of Canada on the Service Canada website.
Canada Pension Plan (CPP) retirement pension – The CPP retirement pension is a monthly benefit for CPP contributions age 60 and over.
Old Age Security (OAS) pension – The OAS pension is a monthly benefit for people aged 65 and over.
Guaranteed Income Supplement (GIS) – The GIS is a tax-free benefit for low-income Canadians age 65 and over who receive the OAS pension.
Allowance – The Allowance is a tax-free benefit for individuals aged 60 to 64 with low income. To qualify, you must be the spouse or common-law partner (current or surviving) of a GIS recipient.
GUIDELINES
Employees must provide at least two weeks’ written notice of their intent to retire, along with their departure date to their manager or supervisor.
However, employees considering retirement should discuss the matter with their manager and Human Resources at least 6 months prior to the intended date in order to ensure sufficient time for workforce planning and preparation of the necessary paperwork.
Once the retirement date is established, a signed letter confirming retirement is provided to the manager who then forwards a completed “Notice of Employee Leaving” form to Human Resources Services for appropriate action.
The employee should also be provided with information concerning their income options following retirement. The definitions are provided above and more information can be accessed through the Government of Canada Website.
Prior to departure, the company should give the employee enough time to complete unfinished projects or tasks and document his or her work so that others can access records and/or files (e.g., provide computer passwords).
The employee should also provide instructions to successors and inform their supervisor as to the status of any ongoing projects.
Depending on the wishes of the retiring employee, an announcement may be either informally emailed or formally announced at a staff meeting of their impending departure.
On their final day, the retiring employee needs to return any assets or property belonging to the organization (credit cards, keys, etc.).
An exit interview should be conducted involving at least one senior manager with each retiring employee. The interview will provide information concerning the employee’s reason for leaving at this time, and is also an opportunity for the departing employee to offer suggestions for improvements within the company. This information could be used to improve processes within the company and decrease turnover.
All remaining salary and vacation accruals should be paid to the employee no later than one week following their departure, along with a formal Record of Employment (ROE).
The employee needs to be reminded that any document developed during their tenure is the intellectual property of Carraway Inc.
The employee should also be informed of the company’s policy regarding their ability to provide references should the employee choose to end their retirement and commence employment at another company. In addition, the company should emphasize the need for continued confidentiality in any future jobs.