Bargaining
CapilanoU – Enhanced Voluntary Severance FAQ
October 28, 2026
To: All MoveUP Members at CapilanoU
MoveUP members have asked us questions about Capilano University’s Voluntary Severance Program (VSP). We have summarized all the information available from your employer to date so you can understand the offer and consider your options.
Applying for voluntary severance and making a final decision
- Does applying commit me to accepting voluntary severance?
No. After you apply, the employer will provide you with a calculation of your VSP payment. If you accept that calculation, that would be considered a binding commitment.
If you prefer to review the amount before applying, you can request a calculation first and then decide whether to submit an application.
- Can People, Culture and Diversity (PCD) deny my application?
PCD cannot deny your application for voluntary severance if you meet the program’s requirements.
- Can the 75% offer be increased, including for long-service employees?
No. MoveUP has negotiated the package to the fullest extent possible. An increased offer or enhanced package for long-service employees is not available.
- Can I receive both the VSP and an early retirement incentive?
No. You may apply for the VSP or for an early retirement incentive under Article 29.07 of your collective agreement, but you cannot receive both.
An early retirement incentive would be assessed against the actual labour cost savings and would likely result in a substantially lower payment than the VSP.
Calculating your payment
- How are years of service calculated? Does earlier employment count?
Service is calculated from your date of hire. Earlier employment separated by a layoff or break in service is not included.
Partial years count proportionately; your employer will not round up to the next full year.
- What salary is used to calculate the payment? What if I am in a temporary position?
The calculation uses your salary at the time of departure. If you are working in a temporary position, this means the salary you are receiving in that position at departure.
- What happens to unused vacation, banked time and other outstanding amounts?
Unused vacation, banked time, and other outstanding amounts owing will be paid out.
- When will severance be paid?
Severance will be paid in the next pay cycle following your departure date.
- Can I direct some or all of the payment to an RRSP?
Yes. You can direct some or all of your VSP payment to an RRSP if you have sufficient contribution room.
The information available at this time does not confirm whether payment can be deferred until 2027.
- How will the payment be taxed?
VSP will be treated as a lump-sum retirement allowance, with withholding based on the payment amount:
| Payment amount | Withholding rate provided by the employer |
| Up to $5,000 | 10% |
| Over $5,000 and up to $15,000 | 20% |
| Over $15,000 | 30% |
These are withholding rates, rather than a determination of your final tax liability. Members should review their individual circumstances, including any RRSP transfer, with an accountant or tax adviser.
- Will I receive retroactive wage increases after I leave? Will my severance be adjusted?
If you depart the university after the tentative agreement has ratified, you will receive retroactive wage increases.
Departure dates and benefits
- How is my departure date determined? Can I leave earlier if I find another job?
Your departure date is mutually agreed between you and your employer.
Changing your departure date after both sides have already agreed requires your employer’s approval. Although your employer has generally been flexible, they can decline a request to change the date.
Before you commit to an earlier departure, you should obtain confirmation of the revised date and any impact that may have on your VSP payment. The information currently available does not specify a minimum notice period for requesting a change.
- When do extended health, dental and other benefits end?
Benefits end on your departure date. Your employer has declined to extend coverage beyond that date.
- What happens to my accrued pension benefits?
Accepting the VSP does not affect pension benefits you have already accrued. Your pension options depend on your individual circumstances and the choices you make.
For information specific to your pension, contact your pension plan directly.
- Will the VSP payment include pension deductions?
The VSP payment is not considered pensionable earnings for Municipal Pension Plan (MPP) purposes, and no MPP deductions will be taken from it.
- What happens if I am on parental leave? Will I have to repay my top-up?
Employees who opt into the VSP will not have to repay parental leave top-up already received. Your employer will waive the repayment requirement.
However, any ongoing top-up payments will stop immediately when your VSP application is approved.
- Can I still use MoveUP Professional Development funds for a course next year?
Yes, provided the training is completed by your departure date.
Employment Insurance and future employment
- Has Service Canada confirmed that the program meets section 51 of the Employment Insurance Regulations?
Service Canada has confirmed the program meets section 51.
The information currently available does not specify what written confirmation will be supplied to individual participants.
- The agreement prevents me from seeking or accepting employment with CapU for two years. Does that include contract work?
Your employer is restricted from contracting out bargaining unit work.
- Will accepting the VSP prevent me from working for another public sector employer or post-secondary institution?
No, it does not.
In solidarity,
Carley Fitzpatrick, Job Steward
Nathan Beausoleil, Senior Union Representative
Christy Slusarenko, Vice-President, Combined Units