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Thousands of federal public servants over the age of 50 — and in some cases 55 — can now apply to retire early without facing financial penalties.
The federal government first announced the incentive in its 2025 budget last November as a way to trim the federal workforce through voluntary departures.
Treasury Board announced on Fridau that applications are finally open, now that the omnibus budget bill received royal assent on Thursday following weeks of debate.
Those who are eligible will receive a letter in their online pension portal or in the mail with instructions, and will have until July 24 to apply. They must retire no later than Jan. 20, 2027.
The first group of eligible employees are those who joined the public service pension plan before Dec. 31, 2012, and are at least 50 years old. Those who joined the pension plan after that date must be at least 55 years old to apply.
Both groups must have at least two years of pensionable service and have worked at least 10 years in the public service.
Late last year, Treasury Board estimated about 68,000 workers might be eligible for the program.
Not everyone who is eligible will be approved. Their organization will look at the need to reduce the workforce, how services to Canadians will be maintained, and whether operational needs can still be met.
Normally, a public servant’s pension is reduced by five per cent for each year they retire early.
The federal government estimated in its 2025 budget that the early retirement program would cost $1.5 billion over five years.
The Public Service Alliance of Canada has raised concerns with the Federal Public Sector Labour Relations and Employment Board, claiming that offering the incentive amounted to “interference.”