The Treasury Board Secretariat has confirmed that the Early Retirement Incentive (ERI) for federal public service workers is now open for applications for TBS Core Public Administration employees.
At the time of publication, these measures have not been made available to members of separate employer groups; however, we anticipate that similar programs for members of separate agencies will be announced in the near future.
What is the ERI Program?
Introduced as part of public service cuts in the 2025 Budget, ERI allows eligible employees to retire up to 10 years before their normal retirement age (60/65) without the usual 5% per year early pension adjustment.
For example, a 50-year-old member with 25 years of service could retire immediately and receive an unreduced annuity equal to 50% of their best years of earnings. Without this program, this member’s pension benefit would be reduced by 50% to offset the fact that the member retired 10 years before their normal retirement age. As a result, the member would benefit from an additional 10 years of pension benefits.
An attack on workers and their money
The ERI is an employer-imposed program, created behind closed doors and funded entirely by the Public Service Pension Plan’s surplus – half of which comes from employee contributions.
The government estimates that ERI will cost the fund upwards of $1.5 billion. PIPSC and other unions have objected to the employer’s unilateral decision to use the pension fund to fund its layoffs. Furthermore, we have raised an alarm about ERI’s infringement of collectively bargained WFA provisions. Among these are how ERI undermines the voluntary departure program, alternation opportunities and subverts transition support measures.
Together with other unions, we continue to lobby the government to reconsider its decision and are considering taking legal action to hold the government accountable.
While we fully recognize the importance of programs like ERI in mitigating the impact of government downsizing, we also believe that the employer, not members, should assume the costs of its austerity measures and negotiate fair ERI provisions through meaningful, collaborative forums.
Who qualifies for ERI?
To qualify, candidates must be employed in the public service for 10 years, including at least 2 years of accumulated pensionable service, and be within 10 years of their normal retirement age (60/65). Approval is also subject to the discretion of Deputy Heads, who will consider the request in light of current and future operational requirements. This includes:
- current and future staffing needs
- departmental reduction requirements
- and the ERI applicant’s role and skill set
Opting employees under Workforce Adjustment who have already selected their options are not eligible for this program. Members who have received a WFA letter but have not yet selected an option may be eligible for ERI.
Application process
Applications are due by July 24, 2026. You may propose to begin your early retirement as late as January 20, 2027. Interested individuals must first confirm eligibility using the ERI eligibility tools. If eligible, they may then submit an application online through the TBS Application Portal or via a paper application.
Once an application is accepted, the employer considers it final and not eligible to change. Additional information on the process can be found here.
Pension benefit
Interested members should use the online calculator available through the My GC Pension Portal to determine their pension benefit.
While this ERI program eliminates the early retirement adjustment, it does not provide additional years of pensionable service. This means that many ERI eligible candidates will not have accumulated the 35 years of service required for a full pension (70% of the best 5 years).
It is important to consider the financial implications of electing for an early retirement. PIPSC cannot provide financial advice; however, you may wish to contact a fee-only Certified Financial Planner (CFP) of your choosing for guidance. This type of CFP is compensated directly by clients rather than through commissions, helping to avoid conflicts of interest and ensuring advice is based solely on your best financial interests.
Special cases
Members with an accepted retirement date or who have already accepted a WFA measure are not eligible for this program. The employer does not allow members to change confirmed retirement dates or revise WFA selections to be eligible for ERI.
Members on long-term disability who are accepted for medical retirement, or members with operational service pension benefits, will generally not benefit from the ERI program. Both medical retirement and operational service offer the same early retirement adjustment waiver proposed by the ERI.
More information
The Pension Centre is offering counselling sessions through an online booking tool. The pension centre remains the best resource for up-to-date information on this program.
PIPCS is preparing additional resources, which will be published on our website as they become available. Members can also expect informational webinars with our pension experts in the coming few weeks.
