Updated July 2026. The federal government’s Early Retirement Incentive (ERI) program lets eligible federal public servants retire before their standard retirement age without the usual pension penalty. The application deadline is July 24, 2026 — if you’re a federal employee weighing this option, time is short.
What the Program Actually Does
Normally, retiring before meeting the age and service requirements for an immediate annuity triggers a permanent pension reduction of 5% per year retired early — retiring five years early would mean a 25% reduction for the rest of your retirement. The ERI eliminates that penalty entirely for approved applicants, letting you retire with an unreduced pension based on your actual years of service and salary, up to 10 years before your normal retirement age.
Key Dates
- Budget 2025 Royal Assent: March 26, 2026
- Application portal opened: March 27, 2026
- Application deadline: July 24, 2026
- You must retire by: January 20, 2027
Who Qualifies
Eligibility splits into two groups based on when you joined the pension plan:
- Joined on or before December 31, 2012: at least 50 years old, 2+ years of pensionable service, 10+ years total federal public service employment
- Joined on or after January 1, 2013: at least 55 years old, 2+ years of pensionable service, 10+ years total federal public service employment
Note that bought-back service from outside the public service doesn’t count toward the 10-year employment requirement — only actual federal employment does. Meeting eligibility criteria doesn’t guarantee approval, and the program isn’t available to employees already entitled to a separation benefit under workforce adjustment provisions.
How to Apply
- Confirm your eligibility — you should have received a notification through the My GC Pension Portal or by mail. If you believe you’re eligible but haven’t heard anything, contact the Government of Canada Pension Centre directly.
- Estimate your pension using the tools in My GC Pension Portal, or book a dedicated pension counselling appointment through the Pension Centre.
- Notify your manager of your intent to apply, though formal approval only happens after your Deputy Head reviews the application.
- Submit your application through the ERI tool in the TBS Applications Portal, or via the manual paper form.
- Await review and approval from your department.
Uptake So Far
By late May 2026, roughly 2,800 federal employees had already been approved for early retirement under the program, out of approximately 68,000 who received eligibility notifications when the program launched.
Source: Treasury Board Secretariat, Early Retirement Incentive: Program overview.
