Proposed Early Retirement Incentive Program
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Overview
The temporary, voluntary Early Retirement Incentive program is proposed in Budget 2025 and is not yet active. Implementation is planned by January 15, 2026, or upon the legislation receiving Royal Assent.
Legislative Amendments
Budget 2025 proposes amendments to the Public Service Superannuation Act and Income Tax Regulations to establish this voluntary program within the federal public service pension plan.
Program Goals and Details
- The program aims to support workforce reductions primarily through attrition and voluntary departures.
- Eligible employees could retire early with an immediate pension based on years of service, without any penalty for early retirement.
- The pension amount will be calculated using all pensionable service years up to the retirement date.
Implementation Timeline
The government plans to complete the early retirement process within one year after the program’s launch, contingent on parliamentary approval and necessary legal amendments.
Budget 2025 proposes to introduce a temporary, voluntary Early Retirement Incentive program through the federal public service pension plan.
Please bookmark this page for ongoing updates as more details are approved and released.
Author's summary: The Canadian government plans a temporary early retirement program by early 2026 to manage workforce reductions through voluntary departures, allowing immediate pensions without penalties for eligible public servants.