Federal public servants have a limited-time opportunity to apply for an Early Retirement Incentive (ERI) program, allowing them to retire with an immediate pension based on their years of service and without a reduction for early retirement. This initiative is a key component of the federal government's broader strategy to reduce the size of the public service by 2029.
As of mid-June 2026, over 7,500 applications had been received for the ERI program, with more than 4,600 confirmed to meet the established criteria. Public servants have until July 24, 2026, to submit their applications, and those approved must depart by January 19, 2027, with January 20, 2027, being the latest possible retirement date.
The ERI program, introduced through Budget 2025, aims to manage workforce reductions primarily through attrition and voluntary departures. Unlike traditional early retirement scenarios, where pensions are typically reduced by five per cent for each year below the standard age and service requirements, the ERI allows eligible employees to avoid this penalty. For instance, an employee retiring five years early would normally face a 25 per cent reduction in their pension. Under the ERI, this reduction is waived, provided all criteria are met and the application is approved.
Eligibility for the ERI program is divided into two groups. Group 1 includes members who joined the public service pension plan on or before December 31, 2012, and are at least 50 years old with a minimum of two years of pensionable service and ten years of public service employment. Group 2 encompasses members who joined the plan on or after January 1, 2013, and must be at least 55 years old, possess at least two years of pensionable service, and have a minimum of ten years of employment in the public service.
Federal unions have voiced concerns regarding the program's rollout, citing issues with consultation obligations and potential impacts on collective agreement protections. Despite these concerns, the ERI program represents a significant effort by the federal government to streamline its workforce while offering a potentially attractive exit for many long-serving public servants.
