Phased Retirement

Retiring from employment is a significant life event, and you may want the opportunity to transition into retirement gradually. A phased retirement can also be beneficial to the university by allowing more time for cross-training and succession planning. 

Eligibility 

Please review your collective agreement or handbook to determine:

  • if you are eligible to apply for phased retirement
  • the options available in terms of hours of work and length of the phased period
  • notice and approval required
  • benefits coverage during the phased retirement period

If you would like to apply for phased retirement, please speak with your supervisor.

Benefits and Pension During Phased Retirement

The information below summarizes the period of phased retirement and what coverage applies. Please note that continued coverage is subject to any normal end dates (see Working After Age 65).

PHASED PRE-RETIREMENT 

This option is for eligible employees who elect a period of reduced works hours leading up to their retirement. The employee is paid according to the hours worked, and the reduced hours are treated as a leave without pay (LWOP).

Benefit coverage continues during the phased pre-retirement period.

  • Your PER allocation will be prorated if you are an Academic employee who elects the 33 1/3% workload option.

Pension service and contributions continue as follows: 

  • PSPP or UAPP will verify if you are eligible to contribute for the period of LWOP and for how long. The Income Tax Act (Canada) imposes maximums on unpaid leave periods that can be included in pensionable service.
  • If you have already contributed the maximum leave period, pension contributions during phased pre-retirement period will be based on the reduced salary only (i.e., actual time worked).
  • For the period of time you are eligible to contribute for the LWOP, your contributions must be based on your deemed full-time salary and you will accrue full-time pensionable service.
  • The university will contribute on the same basis as the employee.

PHASED POST-RETIREMENT

This option is for Academic and MAPS employees who officially retire and are rehired in a part-time, temporary position.

Benefits during the phased post-retirement period are the same as before you retired except the following:

  • Coverage for long term disability, dependent life insurance, voluntary AD&D, and critical illness (basic and voluntary) will end on your retirement date.
    • You may be eligible to convert some of this coverage to an individual policy. More information is available on the Ending Employment page.
  • Basic life insurance reduces to $50,000 coverage.
  • Optional life insurance you had in place at retirement may continue at your request.
  • Your PER allocation will be prorated if you are an Academic employee who elects the 33 1/3% workload option.

 Pension participation ends on your retirement date:

  • You and the university will no longer contribute to UAPP. 
  • You may elect to start your UAPP pension benefit on or after your retirement date.
  • If you have a supplemental retirement plan benefit, you will receive your payment information within six weeks of your retirement date.