The Early Retirement Incentive (ERI) program for federal public service workers (Core Public Administration) is now accepting applications.
Applications are due by July 24, 2026. If approved, you can begin your early retirement as late as January 20, 2027. Note that this FAQ is about the ERI program for the Treasury Board. Different, but similar procedures and criteria apply for members at separate agencies with an ERI program.
What is the Early Retirement Incentive?
The Early Retirement Incentive (ERI) program was introduced as part of Budget 2025. The ERI program is voluntary and temporary, allowing eligible, approved members to retire up to 10 years before their normal retirement age without the usual 5% per year early pension adjustment.
Who can apply?
Applications are currently open to TBS Core Public Administration members in the Public Service Pension Plan (PSPP). The CRA, CFIA, and NRC have announced similar programs, with other agencies expected to follow in the very near future. Please use the procedures published by these agencies to apply for those specific programs.
To be eligible to apply to the Early Retirement Incentive program, you must meet the following eligibility parameters:
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Group 1 (G1): Joined PSPP pre-2013 |
Group 2 (G2): Joined PSPP 2013+ |
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You joined the public service pension plan on or before December 31, 2012, and:
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You joined the public service pension plan on or after January 1, 2013, and:
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Note that, for most PIPSC members, public service employment and pensionable service will be the same thing. Exceptions apply to things like student employment, unpaid leaves not purchased, and other exceptional employment circumstances.
Will my application be automatically accepted?
Approval is subject to the discretion of Deputy Heads, who will consider the request in light of current and future operational requirements. This will include things like current and future staffing needs, departmental workforce reduction requirements, and the role and skill set of the ERI applicant.
What makes this program different from other current retirement pathways?
Members approved for ERI will receive an immediate pension based on their years of service up to their retirement date with no adjustment, despite the longer benefit period. However, it is also important to keep in mind that:
- the ERI program 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 best 5 years)
- unlike either standard retirement options or the collectively bargained Workforce Adjustment provisions, ERI does not include additional lump-sum amounts (severance, if applicable; or Transition Support Measures)
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Standard programs |
Early Retirement Incentive (ERI) |
WFA Pension Waiver |
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Regular retirement |
Early retirement |
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Eligibility |
Age 60+ (or 55 with 30 years’ service) (G1) or age 65 (or 60 with 30 years’ service) (G2); min. 2 years pensionable service |
Under age 60/65; |
Age 50+ (G1) or 55+ (G2); min. 10 years employment and 2 years pensionable service |
Age 55+ (G1) or 60+ (G2); min. 10 years employment and 2 years pensionable service Has not received a reasonable job offer or an education allowance |
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Pension impact |
Unreduced immediate annuity |
Permanent 5% reduction per year under age 60/65 |
Reduction waived; unreduced pension based on years of service |
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Additional benefits |
Standard severance (if applicable through your collective agreement) |
No additional lump sums or Transition Support (TSM) |
Includes TSM (up to 52 weeks’ pay) and severance |
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Voluntary |
Yes |
Yes (but requires Dept Head approval) |
No (must be “affected” or “surplus” status) |
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Timing |
Anytime the eligibility criteria are met |
Application deadline of July 24, 2026 Can retire in a 300-day window: March 26, 2026, to January 20, 2027 |
Opting period: 120 days |
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Are there any other eligibility considerations?
If you have already accepted another pension pathway or another option that offers similar benefits, you cannot apply for ERI.
You are not eligible if you:
- have a confirmed retirement date
- have selected an option under Workforce Adjustment (WFA)
- are on long-term disability and are accepted for medical retirement
- have operational service pension benefits (e.g. certain roles at the Correctional Service of Canada)
You may be eligible if you:
- have received a WFA letter, but have not yet selected an option
- think you meet the ERI criteria, but have not received a letter – in this case, contact the Pension Centre.
How much will my pension be?
Interested members can use the calculator on My GC Pension Portal or the Basic pension calculator to estimate their pension benefit based on salary and service history. The more general Canadian Retirement Income calculator is another useful tool.
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Example: A 51-year-old member with 24 years of service could retire immediately (if their application is approved) and receive an unreduced annuity equal to 48% of their best years of earnings. Without this program, this member’s pension benefit would be reduced by 45% to offset the fact that the member retired 9 years before their normal retirement age and will receive 9 extra years of pension benefits. |
It is important to consider the financial implications of electing for an early retirement. For example, your CPP entitlement is based on how much and how long you contributed. If you retire early, you may have more years with low or no contributions, which can reduce your benefit.
PIPSC cannot provide financial advice; however, you may wish to contact a fee-only Certified Financial Planner (CFP) of your choosing for guidance, including on optimal timing for starting CPP. 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.
Will I still have health and dental coverage?
Yes, you are generally eligible for post-retirement benefits, such as the Public Service Health Care Plan (PSHCP) and dental coverage, provided you retire directly into a pension. You must enroll within 60 days of your pension effective date. Details are available on the Treasury Board website under Life events: Preparing for retirement.
How can I apply?
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. Additional information on the process is found here.
Once an application is accepted, the employer considers it final and not eligible to change.
What else should I know about the ERI?
The ERI is an employer-imposed program, created behind closed doors without any consultation with bargaining agents and funded entirely by the Public Service Pension Plan’s surplus, half of which comes from employee contributions (that’s you).
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 have taken legal action, including filing a policy grievance against the employer for the heavy-handed implementation of ERI.
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.
How can I find out more?
The Treasury Board has published this website about the program. This includes links to reserve a counselling session with the Pension Centre. PIPSC will be hosting a webinar in mid-April, which will be recorded for those who cannot attend. Event details will be published on our website. Please also check out the PIPSC WFA portal for further information on WFA and ERI.