Bridging to Retirement Program

To be eligible for support through the Bridging to Retirement Program (the Program):

Forestry Workers must:

• have been working full time in a B.C. mill or as a forestry-dependent contractor or their full-time employee;
• be at least 55 years old at the date of the application submission;
• have worked for the last two consecutive years in a mill or business;
• be:
  1. displaced on or after Nov. 2, 2021 due to an old growth deferral decision, a fibre supply shortage or a pause in BC Timber Sales resulting in a permanent or indefinite closure, or a curtailment of at least four months, or:
  2. willing to voluntarily retire, with their employer agreeing to participate in the Program, the worker and employer have a mutually agreed upon retirement date and they must not have retired prior to receiving Program confirmation.

Employer participation includes agreeing with the Program to keep the position available so it can be filled by a more junior worker and the employer must also provide an agreed upon contribution amount to include in the worker’s benefit amount total.

If you are approved for Program benefits, you will receive a confirmation letter with your eligible benefit amount from the Ministry of Labour. If workers retire prior to the mutually agreed upon date or prior to receiving Program approval confirmation, they may be deemed ineligible to receive benefits.

Forestry-Dependent Contractor Owners must:

• be at least 55 years old at the time of the application submission;
• be a B.C. resident;
• operate a B.C.-based business; 
• have worked as a contractor in the forestry sector for at least the last two consecutive years;
• have at least 60% of business income that comes from contracts dependent on old growth deferral areas (value-added and remanufacturing businesses are included);
• demonstrate that there has been a reduction in business income from contracts dependent on old growth deferral areas;
• not have net business equipment asset ownership exceeding $1 million if there are 1-2 employees;
• not have net business equipment asset ownership exceeding $3 million if there are 3 or more employees;
• agree to close their business and not work as an employee or start their own business in the forestry industry for at least 18 months.

A forestry-dependent contractor is a business that receives 60% or more of its business income/revenue from contracts in the forestry industry. Employees of a forestry-dependent contractor can apply if they are impacted by an old growth deferral decision or fibre supply shortages.

The maximum amount available for a 55-year-old worker with 15 or more years of experience is $75,000. The maximum amount available decreases by $5,000 per year until the age of 65. To receive the maximum amount, you must have 15 years or more of experience in the forestry industry. The actual benefit amount will be determined based on factors such as years of experience, age at retirement and employer contribution for length of service compensation under B.C.’s Employment Standards Act.

After receiving bridging benefits, you can be an employee in any industry, except the forestry industry for 18 months. Retirees can open and run their own business, as long as it’s not in the forestry industry.

The Bridging to Retirement Program defines the forestry industry as set out by the Ministry of Forests which also aligns with the Statistics Canada Classification. The seven forestry sub-sectors are:

1. Forestry and Logging
2. Support Activities for Forestry
3. Sawmills and Wood Preservation
4. Veneer, Plywood and Engineered Wood Product Manufacturing
5. Other Wood Product Manufacturing
6. Pulp, Paper, and Paperboard Mills and
7. Converted Paper Product Manufacturing.

Please note: those retirees already in the Program prior to July 13, 2023 who were approved to own and operate a business in the forestry industry may continue to operate their business and will not be affected.

Yes, workers and contractors are eligible if they were displaced or lost contracts on or after Nov 2, 2021, due to an old growth deferral decision or a pause on BC Timber Sales resulting in fibre supply shortages leading to a permanent or indefinite closure or a curtailment of at least four months.

The Program is designed to support full-time forestry mill workers or employees or owners of a forestry-dependent contractor in B.C. who are impacted by an old growth deferral decision, resulting in job loss, indefinite curtailment or shift reduction on or after Nov 2, 2021.

Given recent mill curtailments and closures there has been significant interest in the Program this year. Because of this, all impacted worker applications are being prioritized subject to available funding.

The Bridging to Retirement Program is designed to help support forestry mill workers or employees of forestry-dependent contractors and communities impacted by the old growth deferral process leading to job loss, indefinite curtailments and permanent mill closures or work reduction. If that happens to you, you are welcome to apply to the Program.

You may still be eligible if you had gaps in work during those two years, depending on if you were working in the forestry sector in B.C. and the reason for those gaps. Collecting Employment Insurance is an acceptable reason for a gap in consecutive employment. Other acceptable reasons include, but are not necessarily limited to medical leave, maternity/paternity leave and jury duty.  The Program will evaluate reasons for gaps on a case-by-case basis, so you are encouraged to apply and provide as much supporting documentation as possible.

The Bridging to Retirement Program was launched on Nov. 2, 2021, and is intended to operate until March 31, 2025, to support impacted forestry mill workers and employees of forestry-dependent contractors who experienced job loss or shift reduction due to an old growth deferral decision during this period. 

The application intake is open to workers from B.C. forestry mills, and forestry-dependent contractors and their employees.

While the process is intended to be as quick as possible, processing time varies depending on things like the completeness of the application and how long it takes for any additional information that may be needed from you or your employer. 

Please be aware that any benefit you may be eligible for will not be processed until after application approval, payment information is confirmed, and after your approved retirement date. Please note payment processing times may vary, depending on your method of payment.

The Bridging to Retirement Program requires a recent T4 slip and two years of income tax returns to show all income sources and verify as an employee that your primary income is from a B.C. forestry mill or from a forestry-dependent contractor. This cannot be determined from just a Notice of Assessment and T4. The Program requires a copy of your return, also called an “Income Tax and Benefit Return” by the CRA, which is usually 3-4 pages (example), but does not require the supporting schedules and worksheets. A copy of the electronic filing of your return is also acceptable.

Please note: if you have already provided a Notice of Assessment, it may be used later by the Program to confirm RRSP confirmation room if your application is approved, and you want your benefit to go towards your RRSP.

We are processing impacted applications at this time. The Bridging to Retirement Program will contact you if there is any missing information, to ensure your application is complete. Completed applications will be reviewed to determine if you are eligible. The Program will send you a letter of approval or decline of eligibility by email or mail. If you are approved, the letter will include the eligible benefit amount and describe the next steps.

Yes. The Bridging to Retirement Program will calculate the bridging benefit and send a letter to inform you of the bridging amount. If you decide to proceed, you will be required to provide written, signed confirmation of your retirement date and acceptance of your obligations for receiving the benefit

After you have applied and you receive confirmation of your eligibility from the Bridging to Retirement Program, you must agree:

1. If you are a worker, to permanently vacate your position and relinquish all seniority with the employer and to not work as an employee or contractor in the forestry industry for 18 months.
2. If you are a forestry-dependent contractor, to close your business, and not start another business in the forestry industry for 18 months.

The timing of the benefit payment depends on your retirement date and when the Bridging to Retirement Program receives your direction for the payment. If you are approved, you will be provided with a Direction to Pay form so you can direct the bridging benefit portion to be paid via cheque, direct deposit and/or as an RRSP contribution. Payments cannot be made until the Program receives both your completed form and confirmation that you have retired. You can cancel your application any time prior to the program receiving your completed Direction to Pay form.

Once your eligibility has been confirmed and the benefit amount calculated, you can direct the bridging benefit portion to be paid via cheque, direct deposit and/or as a contribution to your RRSP.

• To receive funds by direct deposit, you will need to provide banking information.
• To make contributions to your RRSP, you will be required to provide RRSP transfer information, along with your most recent income tax Notice of Assessment, prior to receiving the payment. The Notice of Assessment is mailed each year after submitting your income tax return. On the Assessment, the ‘Available Contribution Room’ section shows the available RRSP contribution amount for the next year.
• When your application is processed there may be other options to direct how you receive your benefit.

The bridging benefit is a taxable benefit; the taxes to be paid will depend on how you choose to direct the payment between a cheque, direct deposit or as a contribution to your RRSP.   It is recommended that you seek tax advice to understand any impact to your tax situation.

No, receiving the bridging benefit does not require that you start taking your pension. The Bridging to Retirement Program is intended to support you in your transition to retirement.

A forestry-dependent contractor is a business that derives 60% or more of its business income/revenue from work in the forestry industry.

Employees of forestry-dependent contractors may apply if they are impacted by an old growth deferral decision.