Earl Retirement Incentive program sees 12 requests denied and almost 4,400 confirmed
More than 7,000 federal public servants have lined up to leave early under a new pension incentive that waives the penalty normally attached to an early exit, according to data released by the federal government.
As of June 9, 2026, the federal government reported 7,310 applications received, 4,398 confirmed to meet the criteria, and 12 denied. The figures reflect only submissions made through the Early Retirement Incentive (ERI) tool in the Treasury Board of Canada Secretariat (TBS) Applications Portal.
The program became available after Budget 2025 received Royal Assent on March 26, 2026, opening a window for eligible employees to apply until July 24, 2026.
The retirements will take effect no later than Jan. 20, 2027.
The portal in accessible here.
Pension sweetener built for downsizing
A federal employee who retires before meeting the thresholds for an immediate annuity normally pays a steep price. According to the federal government, an employee's pension "is permanently reduced by 5% for each year they retire early" — a 25% permanent cut for someone leaving five years early.
The incentive removes that penalty. Eligible employees, the federal government says, "can apply to retire based on age and years of service with no reduction for early retirement," with the pension calculated on total pensionable service to the early-retirement date.
It is not a no-strings buyout. The design ties an individual's benefit directly to an organizational headcount objective: Budget 2025 marked a significant shift in the federal government’s approach to public sector management, with plans to reduce the size of the federal public service by about 40,000 positions — or 10 per cent — by 2028-29.
“As proposed in Budget 2025, workforce reductions will be managed to the greatest extent possible through attrition and voluntary departures,” Shafqat Ali, President of the Treasury Board, said back in March. “The Early Retirement Incentive is proceeding with an emphasis on voluntary, structured options to retire early with clarity and predictability.”
Eligibility requirements
The ERI sorts employees by when they joined the pension plan. Group 1 members, who joined on or before Dec. 31, 2012, must be at least 50; Group 2 members, who joined on or after Jan. 1, 2013, must be at least 55. Both need at least two years of pensionable service and 10 years of employment.
The government, however, is blunt: "Meeting the eligibility parameters does not guarantee you will be approved for the Early Retirement Incentive." Each application is reviewed by the employee's deputy head against three Treasury Board criteria — that the workforce needs reducing, that services to Canadians are maintained, and that operational needs continue to be met.
Once accepted, there is no reversing course. The federal government warns that "[o]nce your manager accepts your resignation, you can no longer withdraw your Early Retirement Incentive program application," and that "[y]our retirement date is irrevocable" barring a later eligibility finding.
The program also excludes employees already owed severance-type payments, stating the incentive "is not available to employees who are entitled to a separation benefit under the terms of any workforce adjustment or employee transition instruments or provisions."
Earlier this year, the federal government’s early retirement incentive program for public servants prompted formal labour complaints from the Public Service Alliance of Canada (PSAC), which alleged Ottawa is bypassing negotiated processes and undermining the union’s role as bargaining agent.
