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Ottawa Paves Way for Phased Retirement

In
March of this year, the Federal Government enacted legislative changes
to the Pension Benefits Standards Act, enabling pension plan sponsors
to offer phased retirement as a means to retain mature workers. Phased
retirement programs allow employees to receive a portion of their
accrued pension while continuing to work reduced hours.

This
allows companies to keep key personnel active in their business, while
still allowing them the benefits of retirement. A phased approach to
retirement can allow significant breathing room in transitioning roles
and experiential knowledge critical to company success.

In
Canada, the most recent census indicates that what has previously been
viewed as the "core" working age population between 20 and 55 years of
age, is decreasing while the population above 55 is increasing. Phased
retirement offers employers an option to manage the retirement patterns
of employees, to manage these demographic changes.

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