Severance Payout for Salaried Physicians
Deadline to submit written notification for Payment of Severance is July 15, 2022
In accordance with the recently signed MOA, as per Article 37, accumulated entitlement to severance pay (to June 30, 2019) will be paid to eligible salaried physicians, and there shall be no further accumulation of service for severance pay purposes. (Please note this does not apply to GFT physicians who are not considered RHA employees).
NLMA Members with one (1) or more years to a maximum of twenty (20) years of continuous service are entitled to severance pay.
Salaried physicians are asked to choose a quarter in the 2022-23 fiscal year in which they wish to receive your severance payout. The last three quarters of the fiscal year 2022/23 are:
- July 1, 2022 to September 30, 2022
- October 1, 2022 to December 31, 2022
- January 1, 2023 to March 31, 2023
You may also elect to defer the severance to a later date.
You may choose to receive it in cash, transfer it to an RRSP or a combination of both.
Salaried physicians must notify their RHA (Medical Services) in writing by July 15, 2022 to identify which of the quarters they wish to receive their severance entitlement or if they are electing to defer the severance to a later date. Physicians must also indicate in writing if they wish to have all, or a portion of their severance entitlement paid into an RRSP. (Note: the June 30, 2022 notification deadline outlined in the MOA was extended to July 15, 2022).
If no option is chosen by the July 15, 2022 deadline, salaried physicians will receive a cash payment in the last quarter of the fiscal year 2022-23 (January 1, 2023 to March 31, 2023).
All salaried physicians are encouraged to speak to their personal financial advisors as soon as possible to discuss the choices above with respect to tax implications and how it may affect financial and retirement planning. NLMA does not offer financial or tax advice.
Physician information packages are listed below by regional health authority as well as key contacts for each RHA for those who have inquiries.