Retirement Waiting Period

A retirement waiting period is the period after a person's retirement during which the Government of Canada generally cannot use the services of that former public office holder under a government contract. The standard period is one year following retirement. For former ministers, the prescribed period is two years.

The rule comes from Canada's conflict-of-interest and post-employment regime. It applies when a federal contracting authority considers engaging a former public servant or former public office holder, and it is treated as a compliance check before a contract is awarded. Suppliers whose proposed resources include recent retirees from government need to understand it.

How long the waiting period lasts

The federal Supply Manual states that the normal waiting period is one year following retirement before the services of a former public office holder can be used on a government contract. The same guidance sets the period for former ministers at two years. Both figures are stated in the Supply Manual and in a companion volume of the manual.

The legal instruments behind the rule

CanadaBuys directs buyers to adhere to three instruments when contracting with former public servants or public office holders:

• the Conflict of Interest Act
• the Post-Employment Measures in the Values and Ethics Code for the Public Sector
• the Conflict of Interest and Post-Employment Code for Public Office Holders

The Supply Manual ties the waiting period to earlier versions of these codes: the Conflict of Interest and Post Employment Code for Public Office Holders and the Conflict of Interest and Post Employment Code for the Public Service. The CanadaBuys guidance on elements to consider before award identifies the retirement waiting period as one of the issues a buyer must address.

Where the rule is checked in the contracting process

The retirement waiting period is a pre-award consideration. It becomes relevant when a contract involves services supplied by a former public servant or public office holder, and particularly when that person is receiving a pension or a lump-sum retirement payment. CanadaBuys states that heightened scrutiny and fairness are required in those circumstances.

Government contracting authorities carry the responsibility for assessing which legal and policy instruments apply. The buyer, not the supplier, makes the final determination, but the supplier's information is what the buyer relies on to make it.

Who is exempt from the waiting period

The retirement waiting period does not apply to former members of the Canadian Forces or the Royal Canadian Mounted Police. Both CanadaBuys and the Supply Manual state this exception. A retired member of either organisation is therefore not caught by the one-year or two-year waiting period. Other former public servants and public office holders remain within the rule.

What it means for a supplier bidding on Canadian public contracts

If your team proposes a recent retiree from the federal public service or from public office, treat the waiting period as a gate to clear before you offer that person's services. Identify anyone in that position early. Disclose their former role, and confirm that the applicable conflict-of-interest and post-employment requirements are satisfied before the services are offered or provided. Check how long ago the person retired against the one-year period, or the two-year period for a former minister. Where the person receives a pension or lump-sum payment, expect the buyer to look more closely. Former Canadian Forces and RCMP members fall outside the rule.