August 2020: Termination and Severance Options are important to understand and are often presented at a time of stress and uncertainty. Did you receive proper notice or pay in lieu? Did you have a contract? Was your dismissal Without Reason or was is a Constructive Dismissal? Should you defer part of the payment, or transfer part to your RRSP? Different types of payments have different tax implications (Salary Continuation, Retiring Allowance, Damages, Employment/Vacation/Sick pay).
Regardless of the circumstances, when leaving an employer, do you need to replace lost benefits like Extended Health, Vision and Dental, and your insurance (Life, Disability, Critical Illness)? What are your best options for your Pension and Group RRSP? Should you transfer them or are their other important aspects to consider?
Getting personalized professional legal and financial advice is critical to ensure you make the best decisions for you and your family’s specific needs.