Retirement Allowance

Long-serving BC Public Service employees are eligible for a retirement allowance that can be taken as pre-retirement leave, a cash payout or directed into a Registered Retirement Savings Plan (RRSP).

Eligibility

Retiring employees are eligible if they

  • Have 20 or more cumulative years with the BC Public Service (10 or more for salaried physicians)
  • Have reached age 55 (50 for corrections employees)
  • Will go directly from pay to public service pension

 Contact us at least one year prior to your anticipated retirement date to check on your eligibility.

Service Entitlement
20 years 21.75 days
21 years 26.10 days
22 years 30.45 days
23 years 34.80 days
24 years 39.15 days
25 years 43.50 days
26 years 47.85 days
27 years 52.20 days
28 years 56.55 days
29 years 60.90 days
30 or more years 65.25 days

 

 
Retirement Allowance Amounts for Salaried Physicians
Service Entitlement
10 years 21.75 days
11 years 23.93 days
12 years 26.10 days
13 years 28.28 days
14 years 30.45 days
15 years 32.63 days
16 years 34.80 days
17 years 36.98 days
18 years 39.15 days
19 years 41.33 days
20 years 43.50 days
21 years 45.68 days
22 years 47.85 days
23 years 50.03 days
24 years 52.20 days
25 years 54.38 days
26 years 56.55 days
27 years 58.73 days
28 years 60.90 days
29 years 63.08 days
30 or more years 65.25 days

 

Cash Payout Options

Select the one payout option that works best for you or decide to combine the options. A T4 will be sent to you in February of the year following the payout.

The retirement allowance falls under the Income Tax Act. Tax laws change and individual circumstances vary widely. You should seek the advice of a reputable financial planner or financial institution before deciding how payments should be disbursed.

Direct cash payout

If you prefer your retirement allowance as cash, you will receive payment in the month following your last day on payroll. The payment is subject to withholding tax deductions.

Payment Amount Withholding Tax
$5,000 or less  10%
$5,001-$15,000 20%
$15,001 or more 30%

If you have a pre-1978 sick bank and are taking it as cash, the sick bank accumulation and retirement allowance payments are combined to apply the correct withholding tax rate. You should note that, depending on your overall tax situation, there could be additional tax payable with respect to these amounts when you complete your next income tax return.

Direct to an RRSP

Avoid the withholding tax by directing all or a portion of the allowance to an RRSP or RPP.

You can direct your allowance to an RRSP in accordance with Canada Revenue Agency (CRA) rules. Currently the rules are $2,000 per year of contributory service pre-1996. Alternatively, you can direct the allowance to an RRSP in accordance with CRA statement of accumulated RRSP contribution room. A copy of the latest tax assessment notice is required to confirm the available room.

Complete a Direct Transfer of an Eligible Retiring Allowance (TD2R) (PDF, 11KB) form and submit it with your Paid Absence Prior to Retirement (PAPR) form to AskMyHR. Both forms need to be submitted together so they are processed at the same time.