Proposed Early Retirement Incentive
The Government of Canada has proposed a temporary, voluntary Early Retirement Incentive (ERI) program as part of Budget 2025. The initiative aims to manage workforce reductions primarily through attrition and voluntary retirement.
Program Overview
The ERI program would allow eligible federal public service employees to retire early with an immediate pension based on their years of service. There would be no reduction in the pension amount for early retirement.
Legislative Framework
Budget 2025 proposes amendments to the Public Service Superannuation Act and the Income Tax Regulations to establish this program within the federal pension framework.
Implementation Timeline
- The program would take effect by January 15, 2026, or upon receiving Royal Assent.
- The government plans to complete the process within one year after implementation.
Additional Information
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Further details will be provided once Parliament approves Budget 2025 and the related legislative amendments.
Author’s Summary
The Early Retirement Incentive in Budget 2025 allows eligible federal employees to retire early with full pension benefits, pending legislative approval.