The federal government is currently informing nearly 70,000 employees about its upcoming early retirement program. The Liberals aim to reduce the number of federal public service positions by around 40,000 from the peak of 368,000 in 2024, leaving approximately 16,000 more job cuts by 2029.
To encourage attrition and protect younger workers from layoffs, the government is offering a voluntary early retirement initiative that allows employees to retire without facing pension penalties. Mohammad Kamal, Director of Communications for the Office of the President of the Treasury Board, mentioned that letters are being sent to approximately 68,000 public servants who qualify for the program.
Under the proposed plan, employees aged 50 or above with at least a decade of service and two years of pensionable experience can apply. If approved, they can retire with an immediate pension based on their years of service, without any early withdrawal penalties.
The government estimates 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, mainly from reduced pension contributions.
Although the government plans to launch the one-year program by January 15, 2026, legislation is still necessary to proceed with the initiative, as indicated by Kamal. Sharon DeSousa, the National President of the Public Service Alliance of Canada, expressed skepticism about member participation in the early retirement offer, citing the high cost of living as a deterrent.