120.The end-of-engagement indemnity shall be paid in the following ways and in the following order:
(1) A retirement allowance corresponding to the maximum amount that may be transferred into a retirement instrument under the applicable tax legislation, and taking into account any sick days that qualify under this heading. The allowance is payable no later than 30 days after the officer’s departure;
(2) A mandatory contribution by the employer to the officer’s retirement plan, to compensate for the actuarial reduction applicable to the officer when he becomes eligible for his retirement pension with such a reduction. If the employer’s contribution does not compensate fully for the actuarial reduction, the officer may use the amount of the retirement allowance described in subparagraph 1 as full or partial compensation. Such compensation is valid as long as the retirement plan provides therefor;
(3) An additional retirement allowance, for the amount by which the end-of-engagement indemnity exceeds both the transferable retirement allowance and the employer’s contribution, payable to the officer in 2 equal instalments, the first in the 30 days following the officer’s departure and the second on 15 January of the following year. However, the employer may agree with the officer to pay the whole of the additional retirement allowance no later than 30 days following his departure.
O.C. 1218-96, s. 120; O.C. 926-97, s. 12; T.B. 196312, s. 72.