The federal government’s new Early Retirement Incentive (ERI) program is now in effect. Eligible employees can apply until July 24, 2026, and approved applicants must retire by January 20, 2027. 

Under ERI, eligible employees may be able to retire up to five years early without the pension reduction that would normally apply when someone retires before meeting the age and service requirements. 

That may sound appealing at first glance. But whether ERI is the right choice depends on your personal circumstances, your financial situation, and what other options may be available to you. 

Who is eligible? 

ERI notices were sent to employees of the Governments of Nunavut and Northwest Territories. These workers are covered by the Public Service Superannuation Act (PSSA), the federal legislation that governs pension plan benefits for federal public service workers and other participating employers. Employees of the Office of the Auditor General (OAG), the Canadian Security Intelligence Service (CSIS), and certain federal museums and art galleries also participate in the PSSA and may be eligible for ERI. 

Employees of the Government of Yukon were initially invited to participate, but have since been advised by their employer that Yukon has been excluded from the program. Workers in Yukon who are considering retirement continue to have access to the regular retirement options available under the Public Service Pension Plan.

If you work in the core federal public service or at agencies such as the Canada Revenue Agency, the Canadian Food Inspection Agency, and Parks Canada, read our detailed guidance on how ERI compares with existing workforce adjustment or employment transition provisions in your collective agreement. 

Addressing a common misconception 

ERI may allow you to access your pension earlier without a penalty, but that does not mean you will receive the same pension you would have received had you continued working. 

Retiring early means accumulating fewer pensionable years of service. So, even though there is no early access penalty under ERI, your pension may still be lower than it would have been if you had stayed in the workforce longer.  

Who may want to take a closer look at ERI  

ERI may be worth considering if you: 

• Are already planning to retire 
• Have greater financial flexibility 
• Have access to other job opportunities 
• Have retirement plans that are less dependent on maximizing your pension 

Meeting the age and service criteria does not guarantee approval. The government has confirmed that applications are discretionary and will be assessed based on whether the organization needs to reduce its workforce, whether services can be maintained, and whether operational requirements can still be met.  

In other words, being eligible to apply does not guarantee your application will be approved.  

Before you decide, understand the full picture 

ERI is not a simple retirement offer. It is a decision with long-term financial and career implications. 

Before applying, you should: 

• Get a pension estimate from your employer  
• Understand how leaving early will affect your total pension value  
• Review any workforce-specific benefits, entitlements, or supports that may apply 
• Speak with your union representative  
• Consider seeking independent financial advice 

The government has also confirmed that once your manager accepts your resignation, your ERI retirement date is irrevocable. That is why members should be extremely careful and make sure to understand the full picture before applying.