More than 10,000 federal public servants applied for an early retirement package, as the federal government looks to cut the size of its workforce.
The Liberal government launched the Early Retirement Incentive Program this spring, inviting eligible public servants to apply to retire with an “immediate pension based on years of service, with no reduction for retiring early.”
Approximately 68,000 federal public servants received notices last December informing them they could be eligible for early retirement. The application portal opened in March, and public servants had until last Friday to apply.
The Treasury Board of Canada Secretariat says as of July 28, 10,006 applications have been received for the Early Retirement Incentive program. A federal official said the federal government also received paper copies of the applications that will need to be processed.
The federal government approved 6,855 applications for early retirement so far, while 41 applications have been denied. Federal officials previously said the applications denied were mainly due to eligibility requirements for the program.
Federal employees approved for the early retirement package must retire by Jan. 20, 2027.
A spokesperson for Treasury Board President Shafqat Ali says the Early Retirement Incentive Program offers “voluntary and structured options that allow employees to retire early with clarity and predictability.”
“Canada’s government is managing workforce reductions with fairness and compassion, and in line with Canada’s obligations as an employer,” Mohammad Kamal, the director of communications for Ali, told CTV News Ottawa.
“As proposed in Budget 2025, workforce reductions will be managed, to the greatest extent possible, through attrition and voluntary departures. In that context, the government introduced the Early Retirement Incentive. With the application period now closed, over 10,000 applications have been received, including over 6,855 that have already been confirmed to meet the eligibility criteria, and that number will continue to grow as the remaining applications move through the eligibility review process.”
The government has said being eligible for the Early Retirement Incentive program does not guarantee your application will be approved. The Deputy Head in a department will review the applications 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
- Current and future operational or business needs will continue to be met
Front-line officers and staff in operational roles at the Canada Border Services Agency and the Royal Canadian Mounted Police were not eligible to apply for the Early Retirement Incentive program. Public service employees with the RCMP were eligible to apply for the early retirement incentive.
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.
Early retirement eligibility
The federal government said to be eligible for early retirement, public servants had to 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.”
The federal government says currently, an employee retiring before meeting the age and service requirements will have their pension permanently reduced by five per cent for each year they retire early.
“Under the Early Retirement Incentive program, eligible employees can apply to retire based on age and years of service with no reduction for early retirement,” the government said.
“The annual pension amount will be calculated using the total years of pensionable service up to the early retirement date.”
