Pension Buyout Offers in Canada

Is your company downsizing?

When an employer is downsizing or restructuring their business, the company might provide employees with an offer for a one-time amount of money if you leave your job voluntarily.

Companies call this a buyout deal.

Sometimes this ‘buyout’ deal also includes benefits such as prolonged health and oral insurance coverage.

A buyout isn’t like severance pay, which your company may need to pay you if you lose your job through no fault of your own.

How Is A Buyout Offer Calculated?

The buyout offer amount your employer may offer you depends on several factors such as:

  • Your salary while working there
  • Your tenure / how long you’ve worked for the company

What To Look For In A Buyout Offer

If you receive a buyout offer, read it carefully and make sure you fully understand everything they are offering you! Before signing any documents you may want to have them looked at by an employment lawyer or financial advisor. If you’re unsure about anything, ask questions. Never feel pressured into signing anything.


  • What your employer will cover as part of the buyout deal.
  • How long that coverage will last.
  • What premiums or fees you may be required to pay to get coverage.
  • What options you have when coverage such as health insurance stop.
  • What would happen if you decline the buyout deal.

Buyout deals are voluntary

You might choose to say no to the offer and stay employed. However, before declining the offer, check to make certain you’ll get severance pay if you lose your job at a later date. In some cases, companies will offer buyout deals first before doing layoffs at the company.

Your buyout deal may give you more money and advantages then severance pay will. If your company ends up being bankrupt, it may be more difficult to get your severance pay.

Speak with a professional financial advisor to weigh your choices.

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