The government has confirmed almost 7,000 of the applications and denied 41 so far
About 10,000 federal public servants applied to retire early without the pension penalty that usually follows an early exit, before the government's incentive window closed on July 24.
The Treasury Board of Canada Secretariat logged 10,006 applications through its online portal as of July 28, according to figures posted on the federal government's website.
The Early Retirement Incentive strips out the reduction that normally shrinks a pension when an employee leaves before meeting the plan's age and service thresholds.
An employee who retires early usually loses 5 percent of their pension for every year they go before qualifying for an immediate annuity, the Treasury Board said, so a departure five years early cuts the payout by 25 percent.
Approved applicants instead keep an unreduced pension calculated on their total pensionable service to the retirement date, according to the government.
Ottawa notified roughly 68,000 employees last December that their age and years of service qualified them to apply, CBC News reported, and opened the portal on March 26.
Front-line officers at the Canada Border Services Agency and the Royal Canadian Mounted Police could not take part, per CTV News, though RCMP public service staff could.
The government has confirmed 6,855 of the applications met its criteria and rejected 41, most on eligibility grounds.
Meeting the parameters does not guarantee approval: a deputy head weighs each file against Treasury Board tests covering the need to shed staff, the maintenance of services to Canadians, and continuing operational needs.
Budget 2025 forecast the incentive would cost $1.5bn over five years, about half of it this year, and save taxpayers roughly $82m annually, largely in pension contributions, CBC reported.
The incentive anchors a wider drive to trim the federal payroll.
CBC reported the budget promised to cut the public service by 4.5 percent, or 16,000 jobs, within three years, while CTV put the target at 28,000 positions by 2029, including 12,000 employees and 350 executive roles through attrition and early retirement.
Ottawa aimed to bring the workforce down to about 330,000 by this past March, but it still numbered about 345,000 in late March, according to CBC.
Two unions have challenged the program at the federal labour relations tribunal.
Sean O'Reilly, president of the Professional Institute of the Public Service of Canada, said Ottawa introduced the program "without any consultation or any negotiations with the unions," according to Radio-Canada.
He warned it could cause "a lack of expertise" and "hollow out the public service."
The Public Service Alliance of Canada filed a parallel complaint.
The government has cast the reductions as voluntary.
“Canada's government is managing workforce reductions with fairness and compassion, and in line with Canada's obligations as an employer,” Mohammad Kamal, director of communications for Treasury Board President Shafqat Ali, told CTV News Ottawa.
Ottawa has said it wants to reach its targets mainly through attrition and voluntary departures.
Approved employees must retire by January 20, 2027, the latest date the incentive allows.
The government does not expect the final tally until early 2027, CBC reported, and CTV said officials still have paper applications to process.
