The federal government has initiated a significant downsizing effort, sending detailed information about a planned early retirement program to approximately 68,000 public servants. This move is a direct implementation of cost-cutting measures outlined in the 2025 federal budget, passed in November, which calls for a reduction of about 40,000 jobs from the public service's peak of 368,000 positions in the 2023-24 fiscal year.
Details of the Early Retirement Initiative
According to Mohammad Kamal, director of communications for the Treasury Board Secretariat, letters have already been mailed to thousands of employees who may qualify for the program. The initiative is designed to be voluntary and structured, aiming to provide clarity and predictability for workers considering early departure.
The government's broader target is to shrink the public service by a total of 70,000 positions by the end of the 2028-29 fiscal year. Ottawa plans to achieve these cuts primarily through increased attrition and by adjusting retirement rules, a strategy intended to shield younger workers from involuntary layoffs.
Eligibility and Program Parameters
The early retirement offer has specific eligibility criteria. Employees who joined the public service before 2013 and are over age 50, or those who joined after 2013 and are over age 55, may qualify. Applicants must also have at least 10 years of employment and a minimum of two years of pensionable service to retire early without penalty.
However, the program is not a guaranteed offer for all who meet the age and service requirements. The Treasury Board will set parameters to maintain essential services and business continuity. Consequently, an employee's application to participate is subject to approval and not automatic. The program is slated to run for one year, pending legislative approval.
Union Reaction and Next Steps
The Public Service Alliance of Canada (PSAC), the largest union representing federal civil servants, has responded cautiously. In a statement posted on its website, PSAC stated it welcomes efforts to prevent involuntary layoffs but emphasized that any early departure program must be negotiated with the union and must respect existing collective agreements.
Sharon DeSousa, PSAC's national president, expressed skepticism last month about the program's uptake, suggesting she does not expect a large number of members to sign up. The union is pressing the government for a meeting to discuss the full details of the Early Retirement Initiative (ERI) and has promised to advise its members further once more information is available.
This large-scale notification marks a pivotal moment in the federal government's plan to streamline its operations and reduce expenditures, setting the stage for a transformed public service in the years ahead.
