Thousands of federal public servants apply for early retirement

Thousands of federal workers have applied for early retirement packages as the federal government looks to trim the public service. CTV’s Austin Lee reports.

Thousands of federal public servants have applied for an early retirement package, as the federal government looks to trim the size of the public service by 2029.

Approximately 68,000 early-retirement notices were issued to federal public servants in December, informing them they could be eligible for early retirement.

• Here’s what you need to know about the federal government’s early retirement package

Mohammad Kamal, the director of communications for Treasury Board President Shafqat Ali, told CTV News Ottawa on Wednesday approximately 4,600 public servants have applied for the early retirement incentive program since the application process opened on March 27.

Public servants have until July 24 to apply for the early retirement (ERI) program, which will allow employees to retire with no financial penalties. Any public servant approved for the early retirement incentive package must retire by Jan. 20, 2027.

“Under this program, eligible employees can apply to retire with an immediate pension based on years of service, with no reduction for retiring early,” the federal government said.

“Eligible employees will receive a letter with instructions on how to apply.”

The Canada Strong Budget 2025, released in November, outlined a plan to cut the size of the federal public service by 28,000 positions by 2029, including 12,000 employees and 350 executive positions cut through attrition and early retirement packages.

Kamal told CTV News Ottawa on April 2 that participation in the early retirement incentive program is “entirely voluntary” for public servants. Kamal said workforce reductions will be achieved “to the greatest extent possible through attrition and voluntary departures.”

Both the Public Service Alliance of Canada and the Professional Institute of the Public Service of Canada have filed a policy grievance over the early retirement incentive program. PIPSC said the program “violates consultation obligations and undermines collective agreement protections.”

The federal government says to be eligible for early retirement, you must meet the following parameters on the day you leave the public service.

Group 1: Members who joined the public service pension plan on or before Dec. 31, 2012, and who:

• Are at least 50 years old
• Have at least two years of pensionable service
• Have at least 10 years of employment in the public service

Group 2: Members who joined the public service pension plan on or after Jan. 1, 2013, and who:

• Are at least 55 years old
• Have at least two years of pensionable service
• Have at least 10 years of employment in the public service

According to the government’s website, meeting the eligibility parameters for the Early Retirement Incentive “does not guarantee you will be approved.”

“Your Deputy Head (or equivalent) will review your application to confirm whether the following Treasury Board-approved criteria have been met — the organization needs to reduce its workforce, services to Canadians will be maintained, and current and future operational or business needs will continue to be met.”

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