Early Gratuity Payout
The ETT office has received a number of emails and calls regarding the Early Gratuity Payout. Hopefully, this memo will respond to some of those concerns.
The Early Gratuity Payout, with a financial penalty, was negotiated by ETFO in the last round of negotiations. It is an opportunity for teachers, if they wish, to realize their gratuity now, with a financial penalty, rather than wait until retirement.
Each Teacher should have received a communication from the TDSB detailing the Early Gratuity Payout, with an individual calculation of the penalty for each individual. It is the individual choice of each Teacher as to whether to take the payout or not.
Questions have been asked as to how the victory of the court challenges could impact on the decision to take the gratuity now in terms of future compensation awards that may be granted. ETFO has consistently stated that it is impossible to say if there will be any impact on taking early gratuity and possible financial awards that may be granted in the future. It is far too early to predict any sort of impact, as this process may take several years to reach a conclusion. This position was confirmed by ETFO’s legal counsel at meetings last week.
ETFO and ETT do not provide financial advice as it pertains to the Early Gratuity Payout. We recommend that members consult a personal financial advisor.