Overview
- Roughly 68,000 notices have gone out as part of a plan to reduce the federal workforce by about 40,000 from its recent peak, largely through attrition.
- The voluntary, one-year incentive would waive normal early-retirement pension reductions and is backed by about $1.5 billion in budgeted funding.
- Eligibility splits into two groups: those who joined the pension plan on or before Dec. 31, 2012 can qualify at age 50, and those who joined on or after Jan. 1, 2013 can qualify at age 55, with at least 10 years of employment and two years of pensionable service required.
- If authorized, the government signals a rollout as early as January, with letters describing a target launch of Jan. 15, 2026 or upon Royal Assent, a 120-day application window, and a requirement to retire within 300 days if accepted.
- PSAC urges caution, warning that accepting the incentive could forfeit lump-sum and other entitlements available under negotiated Workforce Adjustment rules.