Information for Civilian Defence Team Members: How a Lump Sum Payment Affects Your Pension’s Best 5 Years
April 21, 2020 - Defence Stories
If you receive a retroactive salary payment as a result of a new collective agreement, your pension’s best 5-year calculation will also be adjusted. However, retroactive salary increases are associated to the period during which they were earned and not when the monies were paid out.
For example, if someone was paid $5,000 retroactively and related to a period of 3 years of prior service, the revised earnings for the 5-year average calculation would be recorded based on when they were accrued and not in the year paid.
For any questions, call HR Connect RH at 1-833-747-6363.
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