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Early retirement
Budget 2025 proposes amending superannuation and tax rules to offer a voluntary early retirement incentive (ERI) program through the Public Service Pension Plan.Under the proposal, employees as young as 50 with at least 10 years of employment and at least two years of pensionable service would be eligible to apply.
If approved, they would be able to retire with an immediate pension based on years of service, with no penalty for leaving early.
The ERI program would go into effect as early as Jan. 15, 2026. The program would conclude within a year, so the window for opting in will be tight.
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Cutting back on consultants
At the same time, Budget 2025 vows to reduce spending on management and other consulting services over the next three years, "in order to reduce wasteful spending and empower the public service to take on more responsibility and accountability."Alongside reductions in spending on administration, travel, training and other areas, limiting the use of external consultants is expected to save $25.2 billion over four years, according to the budget document.
Some departments including Immigration, Refugees and Citizenship Canada, Innovation, Science and Economic Development Canada, and Shared Services Canada specifically mention reducing their reliance on external consultants as a way of meeting their budget targets.
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