The federal government is currently informing approximately 70,000 employees about its upcoming early retirement program. 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 expected by 2029.
To achieve this reduction, the government is implementing a voluntary early retirement program to encourage attrition without affecting younger employees negatively. This program allows eligible workers, as young as 50 with at least a decade of service and two years of pensionable service, to retire early without facing any pension penalties.
Mohammad Kamal, the Director of Communications at the Office of the President of the Treasury Board, mentioned that notifications are being sent to approximately 68,000 public servants who may qualify for the program. The government estimates the program will cost $1.5 billion over five years, with a significant portion of expenses anticipated for the upcoming year. This initiative is projected to save taxpayers around $82 million annually, primarily through reduced pension contributions.
Although the program is set to be launched by January 15, 2026, pending the required legislation, Public Service Alliance of Canada National President Sharon DeSousa expressed skepticism about the participation of members due to the high cost of living.