A Canadian Retirement Resignation Letter is a formal written document by which an employee notifies their employer of the decision to retire from active employment. Unlike a standard resignation letter, the retirement resignation letter reflects the culmination of a career with the employer and typically involves considerations unique to retirement, including employer-sponsored pension plan entitlements, Canada Pension Plan (CPP) benefits, group benefit conversion options, and longer notice periods to facilitate succession planning and knowledge transfer.

Canadian law treats retirement as a voluntary termination of employment by the employee. Mandatory retirement has been abolished in all Canadian provinces and territories, meaning employers cannot force employees to retire at any specific age. The Canadian Human Rights Act (R.S.C. 1985, c. H-6) and provincial human rights codes prohibit age discrimination in employment. The standard age for commencing Canada Pension Plan (CPP) benefits is 65, though employees may begin receiving reduced CPP as early as age 60 or enhanced CPP if they delay to age 70. Old Age Security (OAS) benefits begin at age 65, with the option to defer to age 70 for a higher monthly payment.

The notice requirements for a retirement resignation are the same as for any voluntary resignation under provincial Employment Standards Acts. In Ontario, the ESA, 2000 (S.O. 2000, c. 41, s. 63) requires at least one week of written notice for employees with three or more months of service. In British Columbia, the ESA (R.S.B.C. 1996, c. 113, s. 63) requires two weeks of notice for employees with one or more years of service. Alberta's Employment Standards Code does not impose a statutory notice obligation on employees. However, for retirement, best practice calls for significantly more notice than the statutory minimum, often one to six months, to allow the employer adequate time for succession planning, recruitment, and knowledge transfer. Many employment contracts and employer retirement policies specify a longer notice period for retirement, and employees should review these provisions carefully.

The retirement resignation letter serves as the official record of the employee's decision and triggers a series of employer obligations, including the payment of all outstanding wages and accrued vacation pay within the provincial statutory timeline, the issuance of a Record of Employment to Service Canada within five calendar days, the provision of pension information and election forms, and the communication of options for converting group benefits to individual coverage.

A Canadian Retirement Resignation Letter is needed whenever an employee decides to end their active employment and enter retirement, regardless of the employee's age. Since mandatory retirement is prohibited across Canada, the decision to retire is entirely voluntary and personal. The letter formalizes the employee's intention and initiates the administrative processes that the employer must complete upon the employee's departure.

The retirement resignation letter should be submitted well in advance of the intended retirement date. While the statutory minimum notice under most provincial Employment Standards Acts is one to two weeks, retirement is a unique circumstance that benefits from significantly more advance notice. Employees in senior, specialized, or long-tenured positions should consider providing one to six months of notice to allow for proper succession planning, recruitment of a replacement, and comprehensive knowledge transfer. For federal public service employees, the Treasury Board of Canada recommends notifying the Pension Centre at least three to six months before the intended retirement date.

The letter is particularly important for employees with employer-sponsored pension plans. Defined benefit pension plans, defined contribution plans, and group RRSP arrangements each have specific administrative requirements and election deadlines that must be coordinated with the retirement date. The employee should contact the employer's pension administrator well in advance to understand pension commencement options, spousal survivor benefits, bridge benefits, and the tax implications of pension income. Separately, employees approaching 65 should consider applying for Canada Pension Plan retirement benefits through Service Canada and Old Age Security benefits through Service Canada.

The retirement resignation also triggers the employer's obligation to issue a Record of Employment to Service Canada within five calendar days. While retirees typically do not apply for regular Employment Insurance benefits, the ROE is an important administrative record. The employee should also request a T4 slip and information about the continuation or conversion of group health, dental, and life insurance benefits.

An effective Canadian Retirement Resignation Letter must clearly identify the employee by full legal name, job title, and department, and must be addressed to the appropriate recipient. The letter must contain a clear statement that the employee is retiring, along with the intended last day of work. The number of years of continuous service should be stated, as this affects pension entitlements, statutory severance calculations (where applicable), and the employee's legacy within the organization.

The notice period should be clearly specified and should meet or exceed both the statutory minimum under the applicable provincial Employment Standards Act and any contractual notice requirement. For retirement, best practice calls for significantly longer notice than the statutory minimum. If the employment contract contains a specific retirement notice provision, the employee should honour it. The letter should reference any employment contract by title, number, and date if the employee wishes to demonstrate compliance with contractual notice obligations.

The letter should request all outstanding entitlements upon retirement, including final wages, accrued and unused vacation pay at the applicable percentage under the provincial ESA (minimum 4% of gross wages for two weeks of vacation, 6% for three weeks after five years in Ontario), any earned but unpaid bonuses or commissions, and a Record of Employment. The letter should also request information about the employee's employer-sponsored pension plan options, group RRSP contribution status, and the process for converting group benefits (extended health, dental, vision, life insurance) to individual coverage.

A transition assistance offer demonstrates professionalism, particularly for senior or long-tenured employees. The employee should offer to train their replacement, complete outstanding projects, prepare handover documentation, and transfer institutional knowledge. A gratitude statement reflecting on the employee's career with the organization is customary and appropriate. The letter should be signed, dated, and delivered in a manner that creates proof of delivery. The governing province should be referenced for applicable employment standards legislation.