Jack is retiring on July 31. On August 1, his first OMERS pension payment will be deposited into his bank account. To celebrate retirement, he and his wife will be heading out on a trip across Canada. Jack has 20 days of unused sick time, which his employer is paying out in a lump sum. His retirement date will not be changed to include the 20 days.
Should the lump-sum payment for the 20 days of unused sick time be included in Jack’s contributory earnings?
Correct! A lump-sum payment for unused sick days can only be included in contributory earnings when the retirement date and the credited service are extended by the number of days covered by the payment. For example, if Jack’s credited service had been extended 20 days, the lump-sum payment would be included in his contributory earnings, his retirement date would be revised and his pension would begin on the first day of September.
This is the incorrect answer.