The federal government is informing approximately 70,000 employees about its proposed early retirement initiative. The Liberal government aims to reduce the number of federal public service positions by around 40,000 from a peak of 368,000 in 2024, with an additional 16,000 job cuts anticipated by 2029.
In an effort to increase attrition rates and protect younger workers from layoffs, the government is introducing a voluntary early retirement program that allows employees to retire earlier without facing pension penalties. Mohammad Kamal, the Director of Communications for the Office of the President of the Treasury Board, mentioned that notifications are being sent to about 68,000 public servants who may qualify for the program.
Under the plan, employees aged 50 and above with a minimum of 10 years of service and at least two years of pensionable service can apply for early retirement. If approved, they can retire with a full pension based on their years of service without any penalties for early departure.
The government estimates that the program will cost $1.5 billion over five years, with half of the expenses expected in the next year. It is projected to save taxpayers approximately $82 million annually, primarily from reduced pension contributions. Although the program is slated to commence on January 15, 2026, legislative approval is still pending.
Sharon DeSousa, the National President of the Public Service Alliance of Canada, expressed skepticism about the uptake of the early retirement incentive due to the high cost of living, stating that she does not anticipate many members opting for it.
