FAQ: Early Retirement Incentive Program

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. 

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:

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.

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.

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)

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.

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. 

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.

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.

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

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.

You can apply for ERI until July 24, 2026. It’s important to inform yourself about the implications of retiring early for your specific situation before applying. It may be worthwhile if you are eligible for ERI and:

• already planned to leave or retire but are not eligible for a WFA package
• can either comfortably retire on the pension amount you’ll receive, or can seek other employment to supplement it
• are certain you want to retire, as it is irrevocable once formally accepted by your employer

The Workforce Adjustment (WFA) layoff provisions are collectively bargained protections that activate if the employer eliminates your position. If you’re eligible for both ERI and WFA, deciding which is better for you is dependent on your age, finances, career plans and your department’s processes.

In general terms, the WFA is more valuable if you’re also eligible for a pension waiver. It matches the ERI provision to eliminate the 5% early pension adjustment and may also include significant severance or transition support measures, in some cases up to 52 weeks of salary depending on your years of service and the applicable WFA provisions. You can also apply for positions through the alternation platform. Log in to your My GC Pension portal or contact the Pension Centre to compare options and confirm details before deciding. Note that ERI and WFA are separate and cannot be combined. for further information on WFA and ERI.

The Pension Waiver (PW) is part of the negotiated WFA layoff provisions, initiated if the employer eliminates your position. If eligible for both ERI and a WFA PW, consider:

• both the ERI and PW eliminate the 5% early pension adjustment
• WFA PWs may also come with significant severance or transition support measures, subject to your years of service and the WFA provisions in your collective agreement

A key difference between the two is the age criteria:

• ERI is available to employees who are within up to 10 years of their normal retirement age, provided they also meet the service requirements. The WFA Pension Waiver is generally available to employees who are within 5 years of their normal retirement age.
• If your job is affected by WFA but you do not meet the PW age criteria, do not rush to resign via the ERI; instead:
  • verify if you can use the WFA Alternation process to swap positions with an eligible senior colleague;
  • OR contact the Pension Centre to calculate if your WFA severance payment outweighs the lifetime cost of your early retirement penalty

Both ERI and medical retirement (MR) eliminate the 5% early pension adjustment. As a result, ERI benefits will never exceed those provided under MR. However, MR can be approved under fewer requirements if supported by sufficient medical evidence:

• no age criteria (vs age 50 / 55 for ERI)
• a minimum of 2 years of pensionable service (vs 10 years’ employment for ERI)

In addition, members on LTD continue to earn pensionable service, which increases their pension amount (after buyback), while they consider their options. Generally, MR may be a better option for workers under 50 who are on LTD and have a permanent condition preventing them from working. Deciding which option would work best is a very personal decision. Contact the Pension Centre to determine pension amounts for both options, your medical team to determine the best path based on your health, and inform yourself about the application processes for each option.

The Treasury Board has published this website about the program. This includes links to reserve a 30-minute counselling session with the Pension Centre (not a prerequisite for applying). You can receive personalized information on your monthly benefits, health and dental insurance, and available pensionable service buybacks. PIPSC held a webinar on the ERI in April – here is the recording. Please also check out the PIPSC WFA portal for further information on WFA and ERI.