Proposed Early Retirement Incentive

This page will be updated as new information becomes available. Please refer to it regularly for the latest updates.

Overview of the Program

The temporary, voluntary Early Retirement Incentive program is proposed in Budget 2025 and is not yet available. It aims to offer an early retirement option through the federal public service pension plan.

Legislative Changes

Budget 2025 proposes amendments to the Public Service Superannuation Act and Income Tax Regulations to enable this program. The implementation is planned for January 15, 2026, or once the legislation receives Royal Assent.

Implementation Timeline and Approval

The government intends to complete the process within one year after implementation. Further details will be provided after Parliament approves Budget 2025 and any required legislative amendments.

Purpose and Benefits

The program seeks to manage workforce reductions primarily through attrition and voluntary departures.
Eligible employees can retire immediately with a pension based on years of service, without any reduction for early retirement.
The pension amount will be calculated using total years of pensionable service up to the early retirement date.

"Eligible employees would be able to retire with an immediate pension based on years of service with no reduction for early retirement."

Note to Users

Please bookmark this page to stay informed as updates become available.

Author's summary: Budget 2025 proposes a voluntary early retirement program allowing public service employees to access full pensions early, easing workforce adjustments through voluntary departures.

Canada.ca — 2025-11-05