Proposed Early Retirement Incentive

Proposed Early Retirement Incentive - Canada.ca

This page will be updated as new information becomes available. Please check back regularly for updates.

Overview of the Early Retirement Incentive Program

The temporary, voluntary Early Retirement Incentive program is proposed in Budget 2025 and is not yet in effect. The program aims to support workforce management through voluntary departures and attrition within the federal public service.

Legislative Changes and Implementation

Budget 2025 proposes amendments to the Public Service Superannuation Act and the Income Tax Regulations to establish this incentive through the federal public service pension plan. Implementation is planned by January 15, 2026, or upon the legislation’s Royal Assent.

The government plans to complete the program’s process within one year of its start.

Program Details

Eligible employees can retire early with an immediate pension based on years of service.
The pension will not be reduced due to early retirement.
The annual pension amount will be calculated using total years of pensionable service up to the retirement date.

Budget 2025 proposes to "introduce a temporary, voluntary Early Retirement Incentive program through the federal public service pension plan."

Further information will be provided once Parliament approves Budget 2025 and related legislative amendments.

Note

Please bookmark this page as updates will be posted as available.

Author’s summary: The proposed voluntary early retirement program, pending legislative approval, aims to help manage federal workforce reductions by allowing eligible employees to retire early with full pension benefits.

Canada.ca — 2025-11-05