Proposed Early Retirement Incentive - Canada.ca
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Program Overview
The temporary, voluntary Early Retirement Incentive program is proposed in Budget 2025 and is not yet available. It aims to manage workforce reductions primarily through voluntary departures and attrition within the federal public service.
Legislative Changes
Budget 2025 proposes amendments to the Public Service Superannuation Act and the Income Tax Regulations to introduce this program through the federal public service pension plan. Implementation is planned by January 15, 2026, or upon receiving Royal Assent for the legislation.
Program Details
- Eligible employees can retire early with an immediate pension.
- The pension will be calculated based on total years of pensionable service until the early retirement date.
- There will be no reduction applied due to early retirement.
- The government intends to complete the process within one year of implementation.
Budget 2025 proposes to introduce a temporary, voluntary Early Retirement Incentive program through the federal public service pension plan.
Eligible employees would be able to retire with an immediate pension based on years of service with no reduction for early retirement.
Further Information
More details will be provided once Parliament approves Budget 2025 and the related legislative amendments. Bookmark this page for ongoing updates.
Author’s summary: The Canadian government plans a temporary early retirement incentive to ease workforce reductions by allowing eligible federal employees to retire early with full pension benefits, pending approval by 2026.