A work force adjustment (WFA) situation arises when the service of an employee in the federal public service is no longer required. Members subject to a WFA may be presented with options, some of which could have an impact on your pension:
Reasonable Job Offer: Members who receive a reasonable job offer or otherwise maintain a job eligible for the public service pension will continue to accrue pensionable service. Salary protection provisions, when applicable, means that members continue to accrue the same pension benefit.
Education Allowance with Delayed Departure: Members who accept an education allowance with a two year leave without pay option can elect to continue to accumulate pensionable service by contacting the pension centre to request they purchase pensionable service for this time period.
Other options with salary continuance: Members who select an option where they continue to collect a regular salary for a period of time, such as during priority status, will continue to contribute to the pension plan and accumulate pensionable service as usual.
Lay-Off: Members who are laid off from the public service as a result of a WFA will cease to contribute to the pension plan and accumulate pensionable service. Normal end of employment provisions will apply, except in cases where a member is eligible for a Pension Waiver.
Pension Waiver: This program allows someone who resigns or is laid off because of WFA prior to their normal retirement age (60 or 65) to receive an unadjusted pension benefit. In normal circumstances, a pension plan member who retires prior to their normal retirement age will incur a pension adjustment of five percent per year. This reduces the value of the pension to account for the longer pension benefit period. With a waiver, this adjustment is not applied - meaning a recipient obtains the full value of the pension upon retirement even if they retire years before their normal retirement age. Members are only eligible for a pension waiver in certain circumstances.
Members with questions about the pension implications of the WFA options eligible to them should contact the Pension Centre for guidance. Members who encounter any difficulties obtaining information from the Pension Centre can contact the PIPSC Pensions & Benefits team for additional support. Your local PIPSC steward can support you with work force adjustment questions.