The federal government is informing approximately 70,000 employees about its upcoming early retirement program. The Liberals aim to reduce federal public service positions by around 40,000 from a peak of 368,000 in 2024, with about 16,000 more cuts expected by 2029.
To encourage attrition and protect younger employees from layoffs, the government is offering a voluntary early retirement initiative that allows workers to retire without facing pension penalties. Mohammad Kamal, the communications director for the Office of the President of the Treasury Board, mentioned that letters are being sent to about 68,000 potentially eligible public servants.
Under the proposed program, employees aged 50 or older with a minimum of 10 years of service and at least two years of pensionable service can apply for early retirement without penalty. If approved, they can retire immediately with a pension based on their years of service.
The government estimates the program will cost $1.5 billion over five years, with approximately half of the expenses incurred next year. It is projected to save taxpayers around $82 million annually, mainly from reduced pension contributions. The implementation of the one-year program is scheduled for January 15, 2026, pending the necessary legislation.
Sharon DeSousa, the National President of the Public Service Alliance of Canada, expressed skepticism about significant member enrollment in the early retirement program due to the high cost of living.