Retiring allowance

A 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. It 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 judgment of a tribunal. The eligible part (calculated by the payer) of a retiring allowance can be transferred to the individual's own RPP, SPP, RRSP or PRPP. Only an eligible retiring allowance can be transferred directly or indirectly. 

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