The Canadian government is informing nearly 70,000 employees about its upcoming early retirement initiative. The aim is to reduce the federal public service workforce by approximately 40,000 positions from a peak of 368,000 roles in 2024, with an additional 16,000 cuts expected by 2029.
To encourage voluntary attrition and prevent layoffs among younger staff, the government is offering a program that allows eligible workers to retire early without facing pension penalties. Mohammad Kamal, the Office of the President of the Treasury Board’s communications director, mentioned that around 68,000 public servants are receiving notifications regarding their potential eligibility for this program.
Under this scheme, employees aged 50 or older with at least a decade of service and two years of pensionable experience can apply for early retirement. If approved, they can retire with an immediate pension based on their years of service without any financial repercussions for leaving early.
The government estimates that the initiative will cost $1.5 billion over five years, with roughly half of the expenses anticipated in the next year. It is projected to save taxpayers approximately $82 million annually, mainly through reduced pension contributions. Although the government plans to launch the one-year program by January 15, 2026, legislative approval is still pending, according to Kamal.
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, noting that she does not anticipate a significant number of members opting for it.