Early Retirement Incentive Program Applications Open Until July 24, 2026

OTTAWA, ON, March 27, 2026 /CNW/ - Budget 2025 delivers on the government's Comprehensive Expenditure Review to modernise government, improve efficiencies, and deliver better results and services for Canadians.

To manage workforce reductions through voluntary departures to the greatest extent possible, the government introduced an Early Retirement Incentive. Under this program, eligible employees can apply to retire with an immediate pension based on years of service, with no reduction for retiring early.

With the passing of the Budget Implementation Act, the application period for the Early Retirement Incentive is now open until July 24, 2026. Eligible employees will receive a letter with instructions on how to apply.

Quote

"As proposed in Budget 2025, workforce reductions will be managed to the greatest extent possible through attrition and voluntary departures. The Early Retirement Incentive is proceeding with an emphasis on voluntary, structured options to retire early with clarity and predictability."

• The Honourable Shafqat Ali, President of the Treasury Board

Quick Facts

• The Public Service Pension Plan is designed to provide federal public servants with a retirement income payable during their lifetime. Pension benefits are based on an employee's salary, pensionable service, age and reason for termination.

• Normally, when an employee retires before meeting the age and service requirements for an immediate annuity, their pension is permanently reduced by 5% for each year they retire early. For example, if they retire 5 years early, their pension will be reduced by 25%.
  Associated Links

• Early Retirement Incentive

• Budget 2025

• Public service pension at a glance
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SOURCE Treasury Board of Canada Secretariat

Contacts (media): Mohammad Kamal, Director of Communications, Office of the President of the Treasury Board, [email protected]; Media Relations, Treasury Board of Canada Secretariat, Telephone: 613-369-9400, Toll-free: 1-855-TBS-9-SCT (1-855-827-9728), [email protected]

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