Proposed Early Retirement Incentive - Canada.ca
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Overview of the Early Retirement Incentive Program
The temporary and voluntary Early Retirement Incentive program is proposed in Budget 2025 and is not yet available. The proposal includes amendments to the Public Service Superannuation Act and the Income Tax Regulations to establish this program through the federal public service pension plan.
Implementation Timeline
- The program implementation is expected by January 15, 2026, or upon receiving Royal Assent for the legislation.
- The government plans to complete the process within one year after implementation.
Program Details
The Early Retirement Incentive aims to facilitate workforce management primarily through attrition and voluntary retirements.
Eligible employees will have the option to retire early with an immediate pension based on their years of service, without any reduction for early retirement.
The annual pension amount "would be calculated using the total years of pensionable service up to the early retirement date."
Further Information
Additional details will be provided once Parliament approves Budget 2025 and any necessary amendments to related acts and regulations.
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Author's summary: Budget 2025 proposes a temporary, voluntary Early Retirement Incentive program for the federal public service, allowing eligible employees to retire early with full pension benefits to help manage workforce reductions.