Note that this program is not yet approved, and currently no action can be taken by members. PIPSC will continue to follow developments, and will update this information once more details are available.
What is the proposed Early Retirement Incentive program?
The 2025 federal budget has proposed a voluntary and temporary Early Retirement Incentive (ERI) program for the public service. If approved, it would allow eligible employees to apply to receive an immediate pension based on their years of service with no adjustment for early retirement. Usually, members retiring prior to their normal retirement age (60/65) are subject to an adjustment to their pension benefits to offset the longer benefit period.
Who will be eligible to apply?
Information shared so far indicates that members of the federal public service pension plan (PSPP) who meet the following criteria may apply.
If you’re in Group 1 (joined the PSP on or before December 31, 2012):
- age 50 or above
- at least 10 years of employment
- at least 2 years of pensionable service
If you’re in Group 2 (joined the PSP on or after January 1, 2013):
- age 55 or above
- at least 10 years of employment
- at least 2 years of pensionable service
More details are to be shared on other criteria to be set by Treasury Board “to maintain essential services and business continuity".
What makes this program different from a regular retirement?
The standard PSP criteria for receiving a pension without an early retirement adjustment are:
- Group 1: age 60 with at least 2 years of pensionable service (or age 55 with 30 years of pensionable service)
- Group 2: age 65 with at least 2 years of pensionable service (or age 60 with 30 years of pensionable service)
Generally, if you retire early your pension benefit is permanently reduced by 5% per year, e.g. if you retire 5 years early, your pension would be reduced by 25%.
Under the proposed ERI program, your pension amount would be calculated using your total years of pensionable service up to the early retirement date with no adjustment. You can create a personalized estimate using different scenarios on the Pension Portal or using the Basic pension calculator; you can also contact the Pension Centre.
Still to be communicated is any possible impact on other benefits or allowances, such as severance pay or insurance.
When could I apply?
The budget must pass through the House of Commons and the Senate before receiving royal assent. This process can take several weeks to a few months.
Information shared to date indicates that, if approved:
- implementation would start by January 15, 2026
- the program would be implemented over one year
Exact timing and application processes are to be communicated.
Is this program related to the WFA Pension Waiver?
No, it is separate from Workforce Adjustment (WFA). Here is some information on pension waivers in the context of WFA.
Where do I find out more?
PIPSC will publish additional information to our website as it becomes available. At this time, we have no further details on how this proposed program will work. Members thinking about early retirement may wish to delay making a decision until further details of this program are released.