Proposed Early Retirement Incentive - Canada.ca
This page will be updated as new information becomes available. Please refer to it regularly for updates.
Program Overview
The temporary, voluntary Early Retirement Incentive program is proposed in Budget 2025 and is not yet available. The program aims to assist workforce reductions primarily through attrition and voluntary departures.
Legislative Changes
Budget 2025 proposes amendments to the Public Service Superannuation Act and the Income Tax Regulations to establish the Early Retirement Incentive program within the federal public service pension plan.
The program’s implementation would begin by January 15, 2026, or once the legislation receives Royal Assent.
Program Details
- Eligible employees could retire early with an immediate pension.
- The pension will be calculated based on total years of pensionable service without any reduction for early retirement.
- The government plans to complete the program within one year of implementation.
Next Steps
More details will be provided following Parliamentary approval of Budget 2025 and necessary amendments to related legislation.
Budget 2025 proposes to introduce a temporary, voluntary Early Retirement Incentive program through the federal public service pension plan. This incentive would help manage workforce reductions to the greatest extent possible through attrition and voluntary departures.
Please bookmark this page for ongoing updates as more information becomes available.
Author’s summary: Budget 2025 outlines a voluntary Early Retirement Incentive for federal employees, enabling immediate, unreduced pensions to ease workforce transitions by January 2026.