Government sending early retirement info to about 70,000 public servants

OTTAWA – The federal government is in the process of sending letters with information on its planned early retirement program to almost 70,000 employees as it works to reduce the size of the public service.

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.

Ottawa is looking to cut the number of public service jobs by about 40,000 from a peak of 368,000 positions in 2023-24. About 10,000 jobs were eliminated over the past year.

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.

A digital copy of the letter, shared with The Canadian Press, said public servants are not required to take action at this time.

It also said the program will be available only to certain employees who apply to participate under parameters set by the Treasury Board.

“These parameters would be designed to maintain essential services and business continuity,” the letter said.

“As such, acceptance of an employee’s application to participate would not be guaranteed.”

The budget said the government intends to implement the one-year early retirement program as early as January, though Kamal said legislation is still required to move the plan forward.

The letter said the application window would be within 120 days of Jan. 15, 2026, or 120 days from the date the legislation comes into force, whichever is later. It also said employees whose applications are accepted would be required to retire within 300 days.

The letter said further details about the program’s requirements and timelines, and how employees can express interest, will be released.

Kamal did not answer a question about whether government departments and agencies will be announcing any job cuts before the government gauges employees’ interest in the program. 

Instead, Kamal said workforce reductions will be managed to the greatest extent possible through attrition and voluntary departures. He also said departments are working to reassign employees where possible.

Kamal said anybody who is eligible for the early retirement program will get the letter.

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.

In a statement Wednesday, DeSousa said the government hasn’t shared the full details of the program and that taking the early retirement incentive could mean giving up a lump-sum payment based on years of service.

“That’s real money owed to workers under the collective agreement that this government seems to be trying to bypass,” she said. 

DeSousa said the union supports efforts to prevent layoffs and that PSAC urges its members to consider their options and talk to their union representatives before making any decision about early retirement.

She said any early departure program “must be negotiated with the union, because no one should be pressured into giving up hard-fought rights.”

“We are pushing the government to meet with us and release the full details so we can properly assess what this means for workers,” DeSousa said. “Let’s be clear: any involuntary layoff falls under our collective agreement, and we will enforce those protections.”

The budget said the early retirement program would be sourced from the Public Service Pension Fund.

“It’s all well and good to protect the jobs of younger people, but they are the ones who, throughout their careers, will pay half the cost of the program through their contributions to the pension plan,” said Nathan Prier, president of the Canadian Association of Professional Employees.

“In the same vein, the government is using civil servants’ money as if it were its own, which sounds like borderline theft.”

Prier said the union isn’t against a voluntary departure program but action should be taken after “consultation and thoughtful process.”

This report by The Canadian Press was first published Dec. 3, 2025.