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Canada Revenue Agency
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Retiring allowance (severance pay)

This is an amount received in recognition of long service on or after retirement, or an amount that is received for dismissal from an office or employment. This amount includes payment for unused sick leave and amounts you receive for loss of office or employment, whether or not received as a payment of damages or a payment under an order or judgment of a tribunal.

Transferring retiring allowances
Eligible part Non-eligible part

Forms and publications