The 2025 federal budget announced the Early Retirement Incentive (ERI). While the legislation that would enable ERI is not yet passed and there are no processes in place, the Employer has started to reach out to public servants who may be eligible for the new program.
There is no information available yet on how ERI and WFA may work together. Members who may be eligible to leave the federal public service under either program should ensure they are fully informed on available options and the consequences and impacts of each.
What is ERI?
According to the limited information being provided by the Employer, the ERI will be a temporary, voluntary program that will offer eligible members a pension reduction waiver. Put another way, individuals approved under the ERI will be eligible for an immediate pension based on years of service without the 5 percent annual reduction that is normally applied for each year of early retirement under the Federal Public Service Pension Plan.
Am I eligible for ERI?
To be eligible for ERI, individuals must meet the following requirements. However, the federal government has stated that individuals who meet these requirements are not guaranteed to be approved for ERI. Manager approval will necessary.
Age |
50+ |
55+ |
|
Date joined the Public Service Pension Plan |
Joined on or before Dec 31, 2012 |
Joined on or after Jan 1, 2013 |
|
Pensionable service |
Minimum 2 years |
|
|
Public service employment |
Minimum 10 years |
|
When will ERI be available?
Implementation of the ERI would begin once the legislation comes into force. The timeframe for ERI will be limited, with applications required within 120 days of the legislation coming into force, and retirements within 300 days.
Individuals who meet the initial eligibility criteria are not guaranteed access to the ERI. An application process will be required.
What are key differences between ERI and the WFA Directive pension waiver?
Details of the ERI are not fully known.
However, there are two key differences between the ERI and the pension waiver available under the WFA Directive:
The pension waiver under WFA is available to eligible individuals who are 55 to 59 years old, with at least ten years of service.
-
With the WFA pension waiver, eligible individuals may benefit from additional financial supports, such as the Education Allowance or Transitional Support Measure.
How do I get more information on the ERI?
For more information on eligibility criteria, individualized pension information and to keep up to date on announcements about ERI, consult:
-
Proposed Early Retirement Incentive – Treasury Board of Canada Secretariat for the latest information on ERI
-
Follow the progress of Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025