This FAQ explains what a WFA is, the different stages of the process, and what your options are depending on your situation.
Normally, federal public servants who choose to retire early are subject to a 5 percent annual pension reduction for each year of early retirement. For example, retiring five years early would normally mean a 25 percent pension reduction (5 percent per year).
A pension waiver under WFA allows eligible public servants the option to retire with an immediate pension based on their years of service, without the 5 percent annual reduction that is normally applied for each year of early retirement.
Do I qualify for a pension waiver under WFA?
To qualify for a pension waiver under the WFA Directive, members must be leaving the public service through involuntary retirement (including Voluntary Departure Program and alternation) (selecting Option B under WFA) and meet the following age and service requirements:
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Age 55 to 59
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At least 10 years of service with the federal government, including at least two years of pensionable service
How do I apply?
Members can apply for a pension waiver by:
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Discussing with their manager and having the deputy head confirm that the employee meets the criteria for pension waiver and complete the Request for a pension reduction waiver under the Public Service Superannuation Act
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Submitting the completed form to the Government of Canada Pension Centre
If all conditions are met, the Pension Centre will process the waiver.
If your pension waiver request is denied, submit an Intake form to the AJC to discuss next steps.
How do I get more information on the pension waiver?
Consult the following resources for more information on pension waivers:
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MyGC Pension Portal for a pension estimate calculation
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Government of Canada Pension Centre
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.
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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:
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Proposed Early Retirement Incentive – Treasury Board of Canada Secretariat for the latest information on ERI
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Follow the progress of Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025
Members continue to be employees during possible phases of the WFA process (Affected, VDP, SERLO, Surplus, Opting Period). They continue working and nothing changes regarding salary and benefits. These periods also count as pensionable time.
If you want to leave the public service, you can try to alternate – in other words, give your position to someone who is opting and wants to stay in the public service. If your alternation is approved by management and is successful, two options are available to you:
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Option B – TSM and a pension waiver (if applicable)
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Option C (i) – TSM plus reimbursement of up to $17,000 for receipted expenses for tuition fees, costs of books, and relevant equipment
Information on the pension waiver:
Under option B, the Pension Waiver applies if the person became a plan member before January 1, 2013, and is at least 55 years old with at least 10 years of service at the end of their employment (not in receipt of an RJO and is laid-off); or the person became a plan member on or after January 1, 2013, and is at least 60 years old with at least 10 years of service at the end of their employment (not in receipt of an RJO and is laid-off).
For both options, you would resign and your departure date would be established by management.
A non-affected employee cannot select Option A (12-month surplus priority period to secure a reasonable job offer) or Option C (ii) (go on leave without pay for up to two years).
If the employee does not find a match through the alternation program during the opting period, they need to select one of the options outlined in the opting letter by the 120-day deadline. If they do not select an option by the deadline, they will default to Option A.
As an opting member, the employee will be entitled to $1,200 for financial and job placement counselling services. If they wish to leave the public service and make a career change, Option C may be a good option.
There are two possible directions to take under Option C.
If they opt for Option C(i), the member effectively resigns from the federal public service. They receive a lump-sum amount ranging from 4 to 52 weeks salary and up to $17,000 for receipted expenses for tuition fees, costs of books and relevant equipment.
If they opt for Option C(ii), the member does not resign from the federal public service right away. They request a leave without pay for a maximum of two years. While pursuing Option C(ii), the member must provide proof of registration within the 12 months of starting LWOP. At the end of the two years pursuing Option C(ii), the member is laid off unless alternate employment is found.
If an opting member wishes to remain in the federal public service, the best option is Option A. Option A is the 12-month surplus period in which to secure a reasonable job offer.
During this 12-month period, the member remains an employee and is provided meaningful work.
During this time, their home department considers them a statutory priority. This means their home department will appoint them ahead of all others, with the exception of Canadian Armed Forces members. Meanwhile, another department considers an employee on the PSC Priority List as being a regulatory priority. An employee considered a regulatory priority is appointed after employees with a statutory priority, but in no relative order. Refer to Priority Types (section 1.2 of the Guide on Priority Entitlements) to see the order of appointment based on statutory priority and on regulatory priority.
If an opting employee accepts a GRJO during the 12-month surplus period and their salary is to a lower-level position, their salary is protected until appointed or deployed to a position with a maximum rate of pay equal to or higher than that of the surplus position. Additionally, they are considered a Reinstatement Priority for reappointment to a former level. If applicable, they may also be eligible for retraining.
If an opting employee does not find a GRJO after the 12-month surplus period, they will be laid off. The lay-off notice must be provided to them one month before the scheduled lay-off date.
In this scenario, the employee discontinues working as of the resignation day and is considered to have been laid-off for purposes of severance pay entitlement. They maintain lay-off priority rights for appointment to positions in the Core Public Administration (CPA) for one year following the lay-off date. They would also be entitled to the following:
- A pension waiver if they are between 55 and 59 years of age with at least 10 years of service;
- Pay in lieu of the unfulfilled surplus period for a surplus employee who resigns before the end of the 12-month surplus period;
- A lump-sum payment equal to the surplus regular pay for the remaining balance of the surplus period, up to a maximum of 6 months (the amount cannot exceed the maximum that would have been received under Option B).
If an opting employee finds a match through the alternation program and is able to exchange positions with another member who wants to leave the federal public service, both employees need to present the exchange to their respective managers for approval. If the alternation is approved, the WFA process ends for the opting employee once they’ve alternated with their match, on the same day.
If you opt for Option B, you are entitled to a lump-sum payment based on your years of service in the Public Service. This payment ranges from 4 to 52 weeks' salary. Employees with 16-29 years of service are entitled to the maximum amount.
In this scenario, you are considered laid-off for severance pay purposes and can work with management to determine a departure date. After your date of departure, you will receive the lump-sum payment, severance pay and a vacation pay out. See Article 22 of the LP Collective Agreement for severance details.
Under option B, the Pension Waiver applies if the person became a plan member before January 1, 2013, and is at least 55 years old with at least 10 years of service at the end of their employment (not in receipt of an GRJO and is laid-off); or the person became a plan member on or after January 1, 2013, and is at least 60 years old with at least 10 years of service at the end of their employment (not in receipt of an RJO and is laid-off).
If you opt for Option B, you relinquish any rights for reappointment.
To increase chances of finding a GRJO, an employee should actively participate in seeking a new position.
This includes:
- Actively networking and reaching out to managers;
- Being available for job interviews;
- Giving serious and thoughtful consideration to all job opportunities, including different classifications;
- Being aware of your entitlements and obligations associated with your priority status;
- Self-referring to job postings on GC Jobs that have closed, provided that a letter of offer has not yet been signed and the member has not already been considered in the process;
- Using departmental resources such as managers, HR advisors, and the Career Transition Centres.
If you are identified as a Surplus GRJO employee, and not an Opting employee, you are not eligible for alternation, therefore, you cannot be added to the TBS Alternation List or the AJC Alternation List.