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.
Budget 2025 suggests changes to the Public Service Superannuation Act and Income Tax Regulations to introduce this program through the federal public service pension plan.
The implementation is expected by January 15, 2026, or when the legislation receives Royal Assent.
The government aims to complete this process within one year of the program's start.
Purpose and Eligibility
The incentive program assists with workforce reduction primarily through attrition and voluntary retirements.
Eligible employees can retire with an immediate pension calculated based on their years of service, without any reduction for early retirement.
"Eligible employees would be able to retire with an immediate pension based on years of service with no reduction for early retirement."
The annual pension amount will be calculated using the total years of pensionable service up to the retirement date.
Next Steps
Further details will be provided upon Parliament's approval of Budget 2025 and any required amendments to relevant acts and regulations.
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