Thousands of federal public servants have already been approved under the Early Retirement Incentive program, a senior government source confirmed to the Ottawa Citizen. As of late May, approximately 2,800 public servants have received approval and are expected to depart the public service over the coming months.
Eligible federal employees have until July 24 to apply for the exit packages, which are part of the government's strategy to reduce spending across departments and agencies. The program aims to mitigate layoffs, particularly among younger workers, by encouraging voluntary early retirements.
Surge in Applications
In the past week alone, about 1,300 applications were approved, according to the senior source. The total number of applications has risen to around 6,800, indicating strong interest in the program. The government expects that many of these applications will be approved in the coming weeks, with some decisions arriving after the deadline.
Eligibility Criteria
Last December, approximately 68,000 public servants received letters informing them of their eligibility. The program targets two groups:
- Employees who joined the public service on or before December 31, 2012, are at least 50 years old, and have at least two years of pensionable service and 10 years of employment.
- Employees who joined on or after January 1, 2013, are at least 55 years old, and have at least two years of pensionable service and 10 years of employment within the public service.
Government’s Stance
Shafqat Ali, President of the Treasury Board Secretariat, stated: “The Early Retirement Incentive is proceeding with an emphasis on voluntary, structured options to retire early with clarity and predictability.” He added that workforce reductions will be managed through attrition and voluntary departures, as proposed in Budget 2025.
So far, 17,000 public servants have received layoff notices, but the government hopes early retirements will offset many of those potential job losses. The overall goal is to reduce the public service by about 30,000 employees, or 16,000 full-time equivalents, through layoffs, attrition, and early retirements.
Union Frustration
Federal public-service unions have expressed frustration with the program, arguing it bypasses the workforce adjustment process established in collective bargaining agreements since the 1990s. They contend that the incentives undermine negotiated protections for employees facing layoffs.
The Early Retirement Incentive Program was announced in Budget 2025 last fall, but applications only opened in late March after Bill C-15, the budget implementation bill, received royal assent. Eligible employees are encouraged to apply before the July 24 deadline to take advantage of the voluntary exit packages.
