Eligibility rules limit who can exit early
About 4,600 federal public servants have applied for an early retirement package since the application window opened last month, as the Canadian government moves to reduce the size of its workforce by 2029, according to a government official.
Mohammad Kamal, director of communications for Treasury Board president Shafqat Ali, told CTV News Ottawa on Wednesday that applications have been coming in since the process opened on March 27. Public servants have until July 24 to apply for the Early Retirement Incentive (ERI) program. Those approved must leave their positions by Jan. 20, 2027.
The push for a smaller public service stems from the Canada Strong Budget 2025, released in November, which outlined a plan to eliminate 28,000 positions by 2029 – including 12,000 jobs and 350 executive roles through attrition and early retirement packages.
Immediate pension
Approximately 68,000 early-retirement notices were sent in December, informing workers of their potential eligibility.
“Under this program, eligible employees can apply to retire with an immediate pension based on years of service, with no reduction for retiring early,” the federal government said. “Eligible employees will receive a letter with instructions on how to apply.”
Kamal told CTV News Ottawa on April 2 that participation remains “entirely voluntary,” adding that workforce reductions will be achieved “to the greatest extent possible through attrition and voluntary departures.”
Eligibility
The Early Retirement Incentive program was formally activated after the Budget Implementation Act received royal assent on March 26, 2026. The program allows eligible employees to retire without the standard pension reduction, which would otherwise cut benefits by about 5% for each year of early departure.
Eligibility depends on when a worker joined the public service pension plan. Those who enrolled on or before Dec. 31, 2012, must be at least 50 years old, have at least two years of pensionable service, and have at least 10 years of employment in the public service. Those who joined on or after Jan. 1, 2013, must be at least 55, with the same service requirements.
Meeting those criteria, however, does not guarantee approval. According to the government’s website, each application is reviewed by a deputy head to confirm that the organization needs to reduce its workforce, that services to Canadians will be maintained, and that operational needs will continue to be met.
Opposition
The program has drawn opposition from labour groups. Both the Public Service Alliance of Canada and the Professional Institute of the Public Service of Canada (PIPSC) have filed policy grievances. PIPSC said the program “violates consultation obligations and undermines collective agreement protections.”
