The federal government is preparing to unveil a new early retirement program aimed at federal public servants, impacting nearly 70,000 employees. This initiative is part of broader efforts to reduce the number of federal public service jobs by approximately 40,000 from a peak of 368,000 positions by 2024.
Details of the Early Retirement Program
Eligible employees for the early retirement program must be at least 50 years old. They should also have a minimum of 10 years of employment and two years of pensionable service. Those who meet these criteria will have the opportunity to retire early without facing pension penalties.
Implementation Timeline
The government plans to begin this voluntary early retirement program on January 15, 2026. However, legislation is necessary for the program to proceed. Communications Director Mohammad Kamal has confirmed that letters will be sent to around 68,000 public servants, detailing their eligibility.
Financial Implications
- The program is expected to cost $1.5 billion over five years.
- Approximately half of this cost will be incurred in the first year.
- It is projected to save taxpayers around $82 million annually, primarily due to reduced pension contributions.
Concerns from Public Sector Leaders
Sharon DeSousa, the National President of the Public Service Alliance of Canada, has expressed skepticism regarding the early retirement initiative. She believes that the high cost of living may deter many members from participating in the program.
As the government works to implement this early retirement plan, it hopes to expedite workforce attrition and prevent layoffs, particularly among younger employees. The emphasis remains on voluntary participation, providing a way for seasoned workers to exit the public service while alleviating budgetary pressures.
