Federal Budget 2025: Key Highlights for Employers and Pension Plan Administrators

On November 4, 2025, the federal government presented its 2025 budget, titled “Canada Strong.” While the primary focus was on economic spending, infrastructure, and housing, the budget also introduced important initiatives affecting employers, pension plan administrators, and human resources professionals.

Measures for Federal Public Service Employees

The budget proposes extending the existing operational service early retirement program to include additional frontline employee groups. This benefit permits firefighters, border services officers, parliamentary protection officers, and others to retire early with an immediate unreduced pension after completing 25 years of actual operational service, or at age 50 with 25 years of combined actual and deemed operational service, provided at least 10 years are actual service.

The budget would also extend the existing operational service early retirement program to additional specific frontline employee groups.

Next Steps

The government is expected to release the corresponding Budget Bill soon. A more detailed summary of employment, labor, pension, and benefits-related initiatives from both the budget and the Budget Bill will be provided upon its release.

If you have questions about the budget, please contact your Hicks Morley lawyer.

This article provides general information and should not be relied on as legal advice or opinion.

Author's summary: The 2025 budget introduces important changes affecting public service early retirement eligibility and promises further detailed employment and pension measures to follow with the Budget Bill.

Hicks Morley — 2025-11-05