In recent weeks, we have been in discussions with the provincial government regarding more options for the severance payout.
Until now, members were required to elect which quarter of the 2018-19 fiscal year they wished to receive their severance entitlement.
We are pleased to report today that members will have the additional option of choosing to defer their severance and have it held by the provincial government until a later date or upon retirement. Details regarding the deferral are in the Letter of Understanding attached.
The severance monies being held will not accrue interest and will not increase in value during the period that they are being held – the severance owed will be frozen at the March 31, 2018, amount until it is withdrawn.
This is a major benefit to our members, particularly those who are maternity leave, seasonal workers, or those who simply wish to defer their severance payout until a later date or upon their retirement.
The details are outlined in the following Letter of Understanding (LOU).