The all to familiar CPP
(Canada pension plan)
not the most sensible
choice?
Qute as per brochure: "Many
Canadians are impacted by employers who decide
to reduce their workforce. At that point, the
employee will have decisions to make about the
payments offered to them by their employer.
There are two possible forms of payments
an employee can recieve upon early retirement.
Retiring allowance: is considered termination
pay or severance package. It is usually granted
when an employee's position has come to an end.
In many cases, early retirement plans are designed
to reduce the number of positions in a company and
a retiring allowance is a payment in respect to
those plans.
RSP eligible: A retiring allowance can be
transferred to an employee's RSP:
- without affecting the deduction limit
- with no immediate taxation
The maximum amount eligible to be transferred on a tax....
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