Pre-Retirement Transition Leave

What is Pre-Retirement Transition Leave?

Pre-retirement transition leave is a special working arrangement whereby eligible persons who are within two years of retirement have their workweek reduced by up to 40 per cent. The employee's pay is adjusted to reflect the shorter work week, but his or her pension and group insurance benefit coverage continues at pre-arranged levels. The Canada Pension Plan, Québec Pension Plan, and Employment Insurance premiums continue based on the reduced rate of pay. Employees must agree to resign at the end of the pre-retirement transition leave period.

Terms & Conditions for Approving Pre-Retirement Transition Leave

Management may approve pre-retirement transition leave provided the following conditions have been met:

a. A determination has been made that for the two-year work-arrangement period, it is operationally feasible to allow the work arrangement;

b. the person applying for the work arrangement must:

have indeterminate employment status;
not be surplus at the start of the leave arrangement;
be eligible for an unreduced pension at the start of the leave arrangement or be within two years of becoming eligible for an unreduced pension (that is, 53 years of age with at least 28 years of pensionable service or 58 years old with at least 2 years of pensionable service at the time of retirement) and agree to resign effective at the end of the leave arrangement (the employer's acceptance of the resignation is conditional upon the leave arrangement being completed);
agree not to work for the federal public service while on leave without pay,
submit an Application for Pre-retirement Transition Leave Form (TBS 325-9E).

Cancellation of the Special Working Arrangement

Cancellation of the approved pre-retirement transition leave working arrangement is allowed only in exceptional or unforeseen circumstances. A request, by the person, to cancel the working arrangement must be provided in writing, with reasonable notice, and may be approved at the discretion of the person with the delegated authority.

References

Directive on Leave and Special Working Arrangements
Questions and Answers - Policy on Pre-retirement Transition Leave - Archived