Taking The Best Deal  (PART I)
part 2 

Transition Planning
This is the first of a two part series on Transition Planning. In this part we review severance payments. In the next part we'll cover pensions and other benefits.

If you change jobs through downsizing, early retirement or choosing a new career, you may receive many forms of payment from your former employer. You could have to make decisions involving hundreds of thousands of dollars and you will need to review pension documents and other complex reports. As your financial advisor, my role is to help you understand your options and assist you in selecting those best suited to your needs relative to your overall financial plan.

Severance Payments
Your severance payments will depend upon the situation under which you leave your job.
Employers are usually required to give Pay in Lieu of Notice based on provincial minimums only in cases of involuntary departure. Vacation Pay and Accumulated Overtime may also be payable, even if you quit. Unfortunately there is no special tax planning for these incomes.

Employers may also distribute an additional Retiring Allowance. This is usually paid at the company's discretion to ward off wrongful dismissal suits but you may have an employment contract that mandates a payment. Depending upon the years of service and participation in company plans you may be able to shelter some of this in a personal RRSP. Your employer will tell you how much can be rolled over to a registered plan but this calculation should always be double-checked.

“As your financial advisor my role is to help you understand your options”

All of these payments are usually made only if the employee is dismissed. Someone who quits won't normally receive a severance payment, but there may be exceptions. I'll ask to see all of your severance documentation to ensure that you don't miss the opportunity to shelter some of the income.

If you receive a termination package from your employer, or you are simply interested in knowing what your options are if you are looking to change jobs, please give me a call
and we can review your benefits package and see how the pieces fit into your financial plan. Recognizing that the process can be complex and time-consuming, the best choice for you can only be determined by a detailed analysis.

Tel: (613) 798-4229
Fax: (613) 798-4246
Toll-free: 1-800-665-3383

Email: douglas.wright@nbpcd.com
Website: www.dougwrightnb.com

As your financial advisor my role is to help you understand your options