More Than 9,400 Federal Employees Approved for Early Retirement

Ottawa has approved more than 9,400 public servants for early retirement as part of a federal effort to downsize its workforce.

Federal employees who met the eligibility criteria had until July 24 to submit their applications for the Early Retirement Incentive program, according to Treasury Board data.

The program received a total of 10,006 applications and 9,438 were confirmed to meet the government’s criteria for early retirement as of Sept. 1, the data showed. Another 68 applications were denied and 196 applications were discontinued.

Employees who have received approval for the early retirement package must retire no later than Jan. 20, 2027, the Treasury Board said.

Budget 2025 presented a plan last fall aimed at decreasing the federal public service by 28,000 positions by 2029.

Included in this strategy was the Early Retirement Incentive, which aims to eliminate 12,000 employees and 350 executive positions through attrition and early retirement options. The program allows employees to retire with an immediate pension without any penalties for retiring early.

“Under the Early Retirement Incentive program, eligible employees can apply to retire based on age and years of service with no reduction for early retirement,” the Treasury Board said. “The annual pension amount will be calculated using the total years of pensionable service up to the early retirement date.”

Approximately 68,000 federal public servants received notices late last year informing them they could be eligible for the program. The notifications were issued in December 2025 to all public service employees whose age and years of service automatically flagged them as potentially meeting the program’s criteria

There are two different streams of the program which are defined by the date an employee joined the public service pension plan.

Group 1 included public servants aged 50 or older who had begun their service on or before Dec. 31, 2012. They were required to have at least two years of pensionable service and a minimum of 10 years of total employment within the federal public service.

Group 2 was for public servants who were at least 55 and had joined on or after Jan. 1, 2013. This grouping carried the same requirements of at least two years of pensionable service and a minimum of 10 years of total employment with the federal government.

Applications were received from dozens of departments, with the largest agencies experiencing the greatest volume.

The Canada Revenue Agency leads with the highest number of applications, totalling 1,552, followed by Employment and Social Development Canada with 1,053, the Department of National Defence with 764, and Public Services and Procurement Canada with 705.

A total of 394 applications were filed by employees of Correctional Services Canada, while Indigenous Services Canada had 346 applications, and Health Canada workers submitted 320 applications.

While the upfront cost is substantial, the budget said, the $82 million in annual savings will continue permanently after the initial five-year spending window closes, eventually offsetting the initial investment.