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." Although the focus was on economic spending, infrastructure, and housing, the budget also introduced important measures affecting employers, pension plan administrators, and human resources professionals.

Significant Announcements

The budget includes extensions to the operational service early retirement program for certain frontline federal employees. This special benefit enables 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. Alternatively, retirement is possible at age 50 with 25 years of combined actual and deemed operational service, provided at least 10 years are actual service.

Further Details Upcoming

The release of the corresponding Budget Bill is awaited. A detailed overview of the key employment, labour, pension, and benefits-related initiatives in both the budget and the Bill will be provided once available.

Should you have any questions about the budget, please contact your Hicks Morley lawyer. The information provided in this update is general and not to be considered legal advice or opinion.

Author's summary: The 2025 budget introduces important retirement benefits for frontline federal employees and promises further detailed guidance upon the Budget Bill's release.

Hicks Morley — 2025-11-05