OttawaThe federal government is in the process of sending information on its planned early retirement program to nearly 70,000 employees as it works to reduce the size of the public service. Roughly 68,000 workers may be eligible, says Treasury BoardCatherine Morrison · The Canadian Press · Posted: Dec 03, 2025 2:47 PM EST | Last Updated: 2 hours agoListen to this articleEstimated 2 minutesThe audio version of this article is generated by text-to-speech, a technology based on artificial intelligence.People walk near the Place du Portage federal government complex in Gatineau, Que., in mid-November. (Simon Lasalle/Radio-Canada)The federal government says it’s in the process of sending information on its planned early retirement program to nearly 70,000 employees.The Liberals are looking to cut the number of federal public service jobs by about 40,000 from a peak of 368,000 positions in 2024, meaning that as of about a month ago there were about 16,000 more to come by 2029.The government is trying to boost the rate of attrition and avoid cuts to younger workers by offering a voluntary program allowing workers to retire earlier without incurring a pension penalty.Mohammad Kamal, director of communications for the Office of the President of the Treasury Board, said letters are being sent to roughly 68,000 public servants who may be eligible for the program.Under the proposal, employees as young as 50 with at least 10 years of employment and at least two years of pensionable service would be eligible to apply.If approved, they would be able to retire with an immediate pension based on years of service, with no penalty for leaving early. The federal government is predicting the program will cost $1.5 billion over five years, with about half of that expense coming next year. It’s expected to save taxpayers about $82 million annually, largely from pension contributions. The budget said the government intends to implement the one-year program as soon as Jan. 15, 2026, though Kamal said legislation is still required for the government to move the plan forward.Public Service Alliance of Canada National President Sharon DeSousa told reporters last month she doesn’t expect to see many members sign up for the early retirement incentive given the high cost of living. ABOUT THE AUTHORCatherine Morrison is a reporter for The Canadian Press.
Early retirement info coming soon for federal public servants, government says
