Retiring allowance

Retiring allowance, also called severance pay, is an amount you receive on or after retirement from an office or employment in recognition of long service.

Retiring allowance can include payment for unused sick leave and amounts you receive for loss of office or employment, whether as a payment of damages or a payment under an order or judgement of a tribunal.

Certain amount of retiring allowance can be transferred to your own RPP, SPP, or RRSP.