Voluntary Retirement Incentive Program (VRIP)

The program offers eligible employees the opportunity to retire in 2025 with an additional incentive payment.

Participants must meet specific criteria. The VRIP is offered to full-time continuing professional staff and faculty members who are 55 or older and have a combined age and years of service totaling 75 or more (examples: 55 years of age plus 20 years of service/62 years of age plus 13 years of service). Please note that research, grant, and contract roles are excluded from this program.

Faculty members who already have submitted their intent to retire under Article 13.7 of the Carleton-CUASA Collective Agreement are ineligible for the VRIP.

If you do meet the criteria, you will receive an email notification from Human Resources on November 21, 2024.

The Department of Human Resources will send application instructions to employees who are eligible to participate in this program. If the application is approved, applicants cannot withdraw their application.

The incentive for retiring under the program is a lump-sum payment from the university in an amount equal to 1 month of pay at your regular salary for each completed year of service, up to a maximum of 12 months.

The program is not mandatory, and eligible employees are encouraged to assess their situations to make an informed decision. If you don’t participate in the VRIP, your employment status remains as is.

The benefits offered through the VRIP are in addition to, and not a replacement for, any retirement benefits outlined in your collective agreement or individual employment contract. Your existing retirement entitlements remain intact and unaffected by this program.

If you are retiring under the Money Purchase Provision (MPP) of Carleton’s registered pension plan, your monthly pension payment is determined by the total value of contributions and interest earnings at the date of your retirement. As neither service nor salary are used for this calculation, there is no pension adjustment based on your age at retirement.

If you are retiring under the Minimum Guarantee Provision (MGP) of the pension plan, your earnings and service are used to calculate your pension income at your normal retirement date (July 1^st of the year in which you turn age 65).

• If you retire earlier than your normal retirement date, your monthly income is actuarially adjusted to reflect that you have less service, and that your benefit must cover a longer period of retirement.
• If you have passed your normal retirement date, your pension is actuarially adjusted to reflect the additional period of contributions and a shorter period of retirement.

The pension calculator automatically performs both MPP and MGP calculations and produces the monthly annuity amount that provides the plan member with the best retirement option. Any actuarial adjustments will be performed automatically and will form part of the pension quote so that you can make an informed decision. For more information, please visit the Planning Your Retirement page on the HR website.

Taking advantage of the VRIP will not change any of the benefits you are entitled to in retirement. For more information about your benefits in retirement, please refer to the benefits guide for your employee group.

Following the employee’s resignation date, the lump-sum payment will be made on the next pay date. Alternatively, the employee may choose to receive a partial payment on that pay date, followed by a second payment on the first regular payroll date in 2026.

Applicable income tax will be deducted at source from your lump-sum payment.  No other statutory (e.g., CPP, EI) deductions will be made from this payment. You may wish to speak with a financial advisor about whether taking the lump-sum as a single payment or in two payments helps your personal tax situation.

Once the VRIP form is approved, it becomes binding. If you wish to withdraw your application, please contact Human Resources before the closing of the application period (January 31, 2025).

The deadline to apply is January 31, 2025.

Following the deadline date for submission, your Resource Planning Committee Chair (President, Vice-President, Dean or University Librarian) will review all applications in their respective areas. Final decisions will be made by the Provost and Vice-President (Academic) and the Vice-President (Finance and Administration). Applicants can expect to receive an update on the status of their applications by the end of February. All approvals will be subject to operational requirements.

To be eligible, employees must not have already submitted a resignation or retirement notice. However, any professional staff or faculty member who has submitted a notice of retirement during the month of November 2024 is eligible for the VRIP.

The university is committed to providing support to all employees who are considering participation in the VRIP. The Department of Human Resources will be available to assist with any questions regarding benefits, pension plans or other retirement-related matters. The university will also host information sessions to review the program and answer questions. Dates for these sessions will be announced when available.

We have also engaged the Retirement Planning Institute to provide one-day workshops on December 4, 2024, and January 17, 2025. These workshops can assist individuals in financial planning and preparing for the transition into retirement.

The VRIP is a limited-time, one-time offer. As this opportunity is not a recurring program, it’s important for eligible individuals to consider participating in the program while it is available.

All employees participating in the VRIP must retire in the 2025 calendar year. On the application form, staff members will have an opportunity to choose any retirement date in 2025. Note that the approval process will run until the end of February, so staff members should not pick a date prior to April 1. Faculty members will have an opportunity to choose a retirement date of either June 30, 2025 or December 31, 2025.

Your last workday must be within 2025, so the last day of work needs to be on or before December 31, 2025.

Participation in the VRIP will not automatically result in the replacement of positions. The program is designed to offer eligible employees the opportunity to retire with financial incentives, and the university is not committed to filling all vacated roles. Workforce needs will be assessed and adjusted as necessary to ensure continued operational efficiency.

Answers to most questions can be found on the  Pension website.  You can also access the Carleton Retirement Planner to obtain a pension estimate. If you have further questions about your pension or your benefits entitlements in retirement, please contact the Pension services team. 

If have any further questions about your pension or about the VRIP, please complete the following form.