Proposed Early Retirement Incentive
The Government of Canada has proposed a temporary and voluntary Early Retirement Incentive as part of Budget 2025. The initiative aims to ease workforce adjustments primarily through voluntary departures within the federal public service.
Program Overview
The proposal involves amendments to the Public Service Superannuation Act and the Income Tax Regulations. Once enacted, the program will be implemented by January 15, 2026, or upon receiving Royal Assent.
Implementation and Duration
The government plans to complete the process within one year after implementation. Updates will be provided as more details become available, and the page will continue to serve as the main source for program updates.
Key Benefits for Employees
- Participation is entirely voluntary.
- Eligible employees may retire early with an immediate pension.
- The pension will be calculated based on total years of pensionable service up to the early retirement date, without reduction for early retirement.
“Budget 2025 proposes to introduce a temporary, voluntary Early Retirement Incentive program through the federal public service pension plan.”
Details and eligibility criteria depend on the approval of Budget 2025 and related legislative amendments.
Additional Information
This page will continue to be updated as new information becomes available. Visitors are encouraged to bookmark it to stay informed.
Author’s summary: The Canadian government plans a voluntary early retirement program under Budget 2025, allowing eligible public servants to retire early with full pensions once the law is enacted.