With Bill C-15 receiving royal assent, the federal government is moving forward with pension reforms that allow thousands of frontline workers to retire after 25 years of service without penalty, according to a press release by the Public Service Alliance of Canada.
This reform was first confirmed in the 2025 federal budget. The changes amend the Public Service Superannuation Act to provide equitable retirement benefits for workers in demanding public safety roles.
Workers expected to benefit from these reforms include frontline border services staff, search and rescue technicians, wildland firefighters, firefighters on military bases, as well as correctional officers, paramedics and firefighters working for the three territorial governments.
Read: Unions welcoming equitable pension reform for frontline public safety, law enforcement workers
As a result of Bill C-15 passing, the federal government’s new early retirement incentive program is now in effect. Eligible employees can apply until July 24, 2026, and approved applicants must retire by Jan. 20, 2027, according to the release.
Under the program, 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.
Notices were sent to employees of the Governments of Nunavut and Northwest Territories, who are covered by the Public Service Superannuation Act. Employees of the Office of the Auditor General, the Canadian Security Intelligence Service and certain federal museums and art galleries may also be eligible for the incentive.
Read: Government sending early retirement info to nearly 70,000 public employees
However, being eligible to apply doesn’t guarantee an application will be approved. According to the release, 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.
The release also notes even though the incentive may allow workers to access their pension earlier without a penalty, that doesn’t mean they’ll receive the same pension they would’ve received had they continued working.
Additionally, the government has confirmed that once an employee’s manager accepts their resignation, their retirement date under the incentive is irrevocable, the PSAC noted.
Read: Union calling for better benefits, pension accrual for wildland firefighters