How does the pension calculation change?
In the federal government website, the Treasury Board Secretariat’s illustrated the financial impact of the early retirement offer using two example calculations. In one, a 53-year-old Group 1 member with 19 years of pensionable service and an average salary of $55,556 would normally face a 35 percent pension reduction for retiring seven years early, producing an annual pension of approximately $13,722. Under the incentive, the same employee would instead receive an unreduced pension of approximately $21,111 per year.