More than 7,300 federal public servants have applied for the Government of Canada’s new Early Retirement Incentive program, a key component of Ottawa’s plan to reduce the size of the federal workforce over the next several years. However, a small number of applicants have already been denied eligibility for the retirement package.
According to the Treasury Board of Canada Secretariat, 7,310 federal employees had submitted applications for the Early Retirement Incentive (ERI) program as of June 9. Of those applications, 4,398 have already been approved, while 12 applications were rejected.
Government officials indicate that the denied applications were found to be ineligible under the program’s retirement criteria. The 12 rejected cases represent approximately 0.02 per cent of all applications received, making the denial rate extremely low.
The Early Retirement Incentive program was introduced earlier this year as part of the federal government’s broader workforce adjustment strategy. Under the program, eligible employees can retire with an immediate pension based on their years of service without facing the normal pension reductions that typically apply to early retirement.
The initiative follows notices sent to approximately 68,000 federal employees last December advising them that they may qualify for the program.
The retirement package forms part of the federal government’s workforce reduction strategy outlined in the Canada Strong Budget 2025. The plan calls for the federal public service to shrink by approximately 28,000 positions by 2029. The reductions are expected to include roughly 12,000 positions eliminated through attrition, retirement, and workforce management measures, along with a reduction of approximately 350 executive positions.
Employees interested in the program have until July 24, 2026, to submit applications. Those approved for the incentive must leave the public service no later than January 20, 2027.
Eligibility requirements vary depending on when an employee joined the federal public service pension plan.
Employees who became members of the pension plan on or before December 31, 2012, must be at least 50 years old, have a minimum of two years of pensionable service, and possess at least 10 years of employment within the federal public service.
Those who joined the pension plan on or after January 1, 2013, must be at least 55 years old, have at least two years of pensionable service, and have accumulated a minimum of 10 years of public service employment.
However, meeting these basic eligibility requirements does not automatically guarantee approval. Each application is reviewed by a department’s deputy head or equivalent executive authority. Decision-makers must determine whether approving the retirement request aligns with workforce reduction goals while ensuring that services to Canadians are maintained and that operational needs continue to be met.
Certain groups of employees are excluded from the program entirely. Front-line personnel and operational staff working for the Canada Border Services Agency, the Royal Canadian Mounted Police, and the Communications Security Establishment are not eligible for the incentive.
The retirement initiative has not been without controversy. Both the Public Service Alliance of Canada and the Professional Institute of the Public Service of Canada have filed policy grievances challenging the program.
Union representatives argue that the government failed to meet consultation obligations and that aspects of the program may undermine protections contained in collective agreements. The Professional Institute of the Public Service of Canada has specifically stated that the initiative raises concerns regarding employee rights and labour relations processes.
Despite those challenges, the strong response from employees suggests significant interest in the retirement package. Thousands of public servants are now weighing retirement opportunities as the federal government works toward its goal of reshaping and reducing the size of Canada’s public service over the next several years.
As the July application deadline approaches, departments across the federal government will continue reviewing requests while balancing workforce reduction targets against the need to maintain essential public services for Canadians.