Ottawa Grants Unreduced Early Pensions to 9,346 Federal Employees Under Downsizing Plan

The Canadian federal government has approved early retirement packages for 9,346 public servants as part of an overarching strategy to reduce the size of the federal workforce. According to official figures, the government received a total of 10,006 applications under the Early Retirement Incentive program. Out of these, 69 applications have been rejected so far. The deadline for federal workers to submit their requests under the voluntary program was July 24. Under the terms of the initiative, qualifying employees will receive an immediate pension based on their years of service without facing any early retirement financial penalties. Normally, public servants retiring before meeting standard age and service thresholds face a permanent pension reduction. However, the current incentive waives this reduction entirely. All approved applicants are required to officially retire no later than January 20, 2027. The program follows notices sent in December, when approximately 68,000 federal employees were informed that they might be eligible to apply. Eligibility was generally extended to workers who met specific age and minimum service conditions. However, frontline operational staff from certain agencies, including the Canada Border Services Agency and operational personnel within the Royal Canadian Mounted Police, were excluded from the scheme. The early retirement approvals align with the government's broader objective to reduce the federal public service by 28,000 positions by 2029. Officials plan to achieve this target through attrition, voluntary departures, and early retirement programs.