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Early Retirement Incentive Plan (ERIP)

Last updated on May 6, 2025

The Early Retirement Incentive Plan (ERIP) is a voluntary early retirement plan for eligible B.C. Government employees who are receiving Long Term Disability (LTD) plan benefits.

Participation in the ERIP program is by invitation only, based on meeting eligibility criteria. 

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What’s the Early Retirement Incentive Plan (ERIP)?

ERIP is an incentive for eligible employees who receive Long Term Disability (LTD) benefits to voluntarily retire early.

Employees must meet a list of eligibility criteria to receive a lump sum payment equal to 6 months of their base salary at the last day of the Short Term Illness or Injury Plan (STIIP) period. 

ERIP provisions have been negotiated with:

Eligibility for ERIP

To be eligible for ERIP you must meet the following criteria:

  • You’re currently receiving LTD benefits in the ‘Totally Disabled Any Occupation’ coverage period
  • You’re 55 or older (age 50 for correctional facilities employees)
  • Your LTD claim meets a financial formula based on actuarial data that results in savings to the LTD Plan
  • You’re a member of the Public Service Pension Plan
  • You’re a member of one of the following unions/associations, with applicable provisions in their collective agreements: BC General Employees' Union (BCGEU), BC Nurses' Union (BCNU), Professional Employees Association (PEA) or Unifor
  • You belong to one of the following excluded employee groups of the BC Public Service: Management covered under the Management Classification and Compensation Framework (MCCF) rules, Schedule A or ​​OIC Category B

If you’re eligible for the program, you'll receive an invitation to apply before June 1.

Benefits of retiring with ERIP

The following benefits are available for eligible employees who choose to retire through ERIP:

  • You will receive a one-time lump sum payment that is equal to 6 months of your base salary on the last day of your Short-Term Illness and Injury Plan (STIIP) period
  • Your monthly income may increase. The Public Service Pension Plan does not deduct other disability income(s), such as Canadian Pension Plan (CPP) disability and WorkSafeBC payments
  • You won’t have to submit regular medical reports that are required to receive LTD benefit payments

Is ERIP right for you?

You need to consider your personal circumstances, financial needs, changes to your extended health and dental coverage and whether early retirement is a goal you’d like to pursue.

It's recommended that you seek both independent financial advice and union advice to assist in making a decision.

ERIP might be an option if you compare what you currently receive as LTD benefits against the combination of:

  • A pension
  • The ERIP lump sum payment
  • Other disability income (such as WorkSafeBC pension or CPP)

Sample scenarios

These scenarios illustrate how your monthly income may change by accepting your ERIP offer or remaining on Long Term Disability (LTD).

Scenario 1: Linda

  • Age: 55
  • Worked at the BC Public Service for 30 years
  • Been on LTD for 10 years

Linda received an ERIP offer letter and is unsure if she should accept the offer or stay on LTD.

To help her decide, Linda:

  • Requested a pension estimate from the Public Service Pension Plan
  • Met with her financial advisor to review the pros and cons of early retirement

Linda’s current monthly income on LTD:

  • LTD benefit payment (after deductions): $2,000/month
  • CPP Disability payment: $800/month

Total monthly income on LTD: $2,800

If Linda retires with ERIP, her monthly income will be:

  • Pension payment: $2,500/month
  • CPP Disability payment: $800/month (to age 65)

Total monthly income if Linda retires with ERIP: $3,300

She will also receive:

  • One-time ERIP lump sum payment: $14,000 (before tax)

Linda may be in a better financial position each month if she retires with ERIP, as the combination of her monthly CPP and pension results in a higher total income than staying on LTD ($3,300 versus $2,800).

Scenario 2: Raman

  • Age: 50
  • Works as a Correctional Officer
  • Worked at the BC Public Service for 12 years
  • Been on LTD for 10 years

Raman received an ERIP offer letter and is not sure what they should do.

Raman decided to:

  • Request a pension estimate from the Public Service Pension Plan
  • Attend the annual pension webinar for employees offered in July
  • Use the Financial Advice Services offered through the Employee and Family Assistance Services (EFAS) program to help them evaluate the pros and cons of early retirement

Raman does not receive a monthly LTD benefit payment because it is fully

offset by their other disability benefit payments.

Raman’s current monthly income is:

  • WorkSafe BC benefits payment: $2,000/month
  • CPP Disability payment: $700/month

Total monthly income on LTD: $2,700

If Raman retires with ERIP, their monthly income will be:

  • Pension payment: $2,100/month
  • CPP Disability payment: $700/month (to age 65)
  • WorkSafeBC pension payment: $300/month

Total monthly income if Raman retires with ERIP: $3,100

 They will also receive:

  • One-time ERIP lump sum payment: $20,000 (before tax)

Raman may be in a better financial position each month if they retire with ERIP, as the combination of their monthly WorkSafeBC, CPP disability, and pension results in a higher total income than staying on LTD ($3,100 versus $2,700).

Scenario 3: Suzanne

  • Age: 60
  • Worked at the BC Public Service for 5 years
  • Been on LTD for 2 years

Suzanne received an ERIP offer letter and is unsure if she should accept the offer or stay on LTD.

To assist with her decision-making, she decided to:

  • Request a pension estimate from the Public Service Pension Plan
  • Use the ERIP Income Comparison Worksheet
  • Consult an independent financial advisor to help her make an informed decision

If Suzanne retires with ERIP, her monthly income will be:

  • LTD benefit payment (after deductions): $2,000/month
  • CPP Disability payment: $1,200/month

Total monthly income on LTD: $3,200

If Suzanne retires with ERIP, her monthly income will be:

  • Pension payment: $1,000/month
  • CPP Disability payment: $1,200/month (to age 65)

Total monthly income if Suzanne retires with ERIP: $2,200

She will also receive:

  • One-time ERIP lump sum payment: $25,000 (before tax)

Suzanne may not be in a better financial position each month if she retires with ERIP, as the combination of her monthly CPP and pension results in a lower total income than staying on LTD ($2,200 versus $3,200).

 The application process

Eligibility for the program is determined by the BC Public Service Agency once a year. If you’re eligible for the program, you’ll receive an invitation to participate by June 1.

The ERIP invitation will include an offer letter, information package and application form.

Submit your application between June 1 to August 31 each year. 

A program manager from Corporate Health Programs will contact you within three weeks of receiving your submission, confirm your enrolment in the ERIP program and provide you with next steps.

Your retirement date will be October 1.

Submit your application

Submit your application by August 31. There are three ways to submit your application:

  1. Online: gov.bc.ca/earlyretirementincentiveplan
  2. By email: CorporateHealthPrograms@gov.bc.ca
  3. By mail: 

BC Public Service Agency
Workplace Health and Safety
PO BOX 9404 STN PROV GOVT
Victoria, BC V8W 9V1

Contact information

AskMyHR: Monday to Friday, 8:30 am to 4 pm PST

BC Public Service Pension Plan: Monday to Friday, 8:30 am to 4:30 pm PST

 

AskMyHR Toll Free
1- 877-277-0772
BC Public Service Pension Plan Office
1-800-665-3554
BC Public Service Pension Plan Email
PSPP@pensionsbc.ca

Contact information

Employee and Family Assistance Services (EFAS)

These free services for B.C. government employees offer confidential advice and resources related to retirement and financial planning.

EFAS Office
1-800-655-5004