The federal government’s new Early Retirement Incentive (ERI) program is now in effect. Eligible employees can apply to retire early without penalty until July 24, 2026, and approved applicants must retire by January 20, 2027.
That may sound appealing at first glance. But for many PSAC members working in the federal public service, the question is whether ERI is a better option than the negotiated protections and rights already available under the Workforce Adjustment Appendix, or Employment Transition Policy for members at CFIA.
What ERI could mean for members
The government says ERI allows eligible employees to retire up to five years earlier than the current pension waiver entitlement and without the normal pension reduction that usually applies when someone retires before meeting the regular age and service requirements.
But meeting the age and service rules does not guarantee approval. The government has confirmed that each applicant must also be approved based on whether the organization needs to reduce its workforce, whether services can be maintained, and whether operational needs will continue to be met.
In other words, you may be eligible to apply, but management still decides whether you can go.
Why members should be cautious
PSAC has previously warned members that choosing ERI could mean giving up important protections and benefits available under existing workforce adjustment (WFA) and employment transition processes. That’s because some members may already be eligible for a pension waiver if they are leaving through alternation or voluntary departure pathways. In those cases, they may have access to both pension protection and additional financial benefits like the Transition Support Measure, the education allowance, and counselling support.
Use this chart to compare your options
For more information on those protections and pathways, visit PSAC’s workforce adjustment and employment transition landing page, which includes a flowchart of options and member guide.
PSAC has also filed a policy grievance and an unfair labour practice complaint over the rollout of ERI. The program was introduced outside the negotiated WFA framework, even though it may affect members facing the same pressures under sweeping federal government cuts.
The federal government needs to come clean about the true scope of ERI and how it will operate alongside existing workforce adjustment and employment transition provisions. Where pension waivers are already available as part of negotiated job-reduction processes, ERI should be harmonized with those provisions, so members are not forced to navigate overlapping systems with unclear and potentially unequal entitlements.
Who may want to take a closer look at ERI
For some members, ERI may still be worth serious consideration.
There is a group of members — particularly some in the 50 to 54 age range — who may qualify for ERI but would not normally qualify for the existing pension waiver under workforce adjustment or employment transition that could benefit from the new program.
ERI may also be more attractive to members who are already planning to retire and do not expect to have access to a workforce adjustment or employment transition package. It may also appeal more to members who have greater financial flexibility, stronger access to outside job opportunities, or retirement plans that are less dependent on the additional support available through workforce adjustment and employment transition.
But ERI is discretionary, and approval is not guaranteed. Members should not assume that receiving a letter inviting them to apply for the program means they will be approved.
The government has also confirmed that once your manager accepts your resignation, your ERI retirement date becomes irrevocable. That is why members should be extremely careful before applying. You may not be able to change course later if a better option becomes available.
Before you decide, compare the full package
For some members, ERI may be the right option. But for many others — especially those who may be entitled to protections under workforce adjustment and employment transition — it may not be the better one.
Before applying for ERI, members should:
- Get a pension estimate by signing in to My GC Pension Portal to create or view your pension estimates (accessible only on the Government of Canada network), by using the basic pension calculator, or contacting the Pension Centre.
- Calculate the value of possible existing entitlements, including the Transition Support Measure or education allowance, using PSAC’s member materials for guidance.
- Check whether you may qualify for an existing pension waiver under the WFA Appendix or Employment Transition Policy.
- Speak with your PSAC component or local union representative before making a decision.
- Contact the Pension Centre or book an ERI pension counselling appointment.
- Consider getting independent financial advice.
The ERI is not a simple retirement offer. It is a decision that may involve trading away negotiated protections, entitlements, and flexibility. Before making any decisions, ensure you understand the full picture.
This article was first published on the PSAC website.
