Personal Finance

Forced Retirement / EI afterwards?

  • Last Updated:
  • Nov 11th, 2013 6:40 pm
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[OP]
Sr. Member
Jul 2, 2008
593 posts
42 upvotes
Toronto

Forced Retirement / EI afterwards?

Lets say you are getting terminated but they offer retirement (AGE 64) package, Can you go on EI or is it better to say no thanks to forced retirement and just get fired?
8 replies
Deal Fanatic
Nov 21, 2011
8678 posts
1533 upvotes
Edmonton
As long as you're not retiring from the workforce and you're still actively looking for work, you're eligible. That being said, the terms of the package will determine how much you get and when you get it
Deal Addict
User avatar
Nov 18, 2007
3446 posts
489 upvotes
Valleywood
Don't take any lump sum until 2014. Otherwise your income and the taxes owed will be above normal for 2013.
[OP]
Sr. Member
Jul 2, 2008
593 posts
42 upvotes
Toronto
fastlayne wrote:
Nov 10th, 2013 8:19 pm
Don't take any lump sum until 2014. Otherwise your income and the taxes owed will be above normal for 2013.
Yes I did hear that.
Sr. Member
Oct 14, 2012
622 posts
334 upvotes
Woodstock
Some things to consider:
-if you are laid off and they give you cash as part of your severance package, for example 1 week pay per year of service, you will not qualify for any EI payment until you have used up all of that cash at the deemed rate of (severance $$)/(EI payment) weeks. For example, if you get $5010, and your EI payment is $501 per week, you will not get any EI until 10 weeks plus the 2 week waiting period = 12 weeks have passed; if you get $50,100 you will not get any EI for almost 2 years.
-EI is very low to live off of. The ON maximum is $501 per week. You have to pay tax on that $501.
-most forced early retirements offer bridge financing e.g. extra pension payments until you are old enough to qualify for CPP and OAS. Often the bridging is a good deal.

Sorry to hear you're facing a loss of work. I hope it works out ok.
Deal Addict
Feb 15, 2013
2445 posts
553 upvotes
Consult an employment lawyer. Seriously.
[OP]
Sr. Member
Jul 2, 2008
593 posts
42 upvotes
Toronto
It is not for me, I think my job is safe :) I was trying to get info for a dispute i have with a coworker. Either way. Employment lawyer would be the best, we were just concerned about the EI.... if elgible
Deal Fanatic
May 9, 2007
6672 posts
1620 upvotes
Vancouver Island, BC
raxa wrote:
Nov 10th, 2013 7:48 pm
Lets say you are getting terminated but they offer retirement (AGE 64) package, Can you go on EI or is it better to say no thanks to forced retirement and just get fired?
Generally speaking, if a person is fired, (dismissed for cause) he is not eligible to receive EI. So that doesn't seem like a good option.

Your description of "they offer retirement" is unclear. Would he be proceeding to immediately draw a pension? If so, he would be considered to have left the workforce and not be eligible upon receiving pension income. He would be eligible to re-qualify for EI by reentering the workforce and reestablishing himself as a claimant, i.e., by working the number of required weeks in the geographic area.

There is an EI expert on RFD. I suggest you search for his ongoing thread and benefit from the knowledge of someone who worked in the field for many years.
Earthlings, you're evicted.
You are not getting the damage deposit back.

God
Deal Fanatic
Nov 21, 2011
8678 posts
1533 upvotes
Edmonton
MexiCanuck wrote:
Nov 11th, 2013 3:13 pm
Generally speaking, if a person is fired, (dismissed for cause) he is not eligible to receive EI. So that doesn't seem like a good option.

Your description of "they offer retirement" is unclear. Would he be proceeding to immediately draw a pension? If so, he would be considered to have left the workforce and not be eligible upon receiving pension income. He would be eligible to re-qualify for EI by reentering the workforce and reestablishing himself as a claimant, i.e., by working the number of required weeks in the geographic area.

There is an EI expert on RFD. I suggest you search for his ongoing thread and benefit from the knowledge of someone who worked in the field for many years.
Receiving a pension doesn't make you ineligible, provided you're still looking for work. The pension monies would be allocated and deducted from your payments.

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