More than 10,000 public servants apply for early retirement incentives

About 68,000 public servants were eligible for the early retirement incentive program. Photo by Spencer Colby /POSTMEDIA

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More than 10,000 public servants applied for the federal government’s early retirement incentive program by its deadline.

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According to the latest government data, about 10,006 public servants submitted applications and 6,855 have been approved so far. Only 41 applications have been rejected.

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If a large chunk of these applications are approved, it could mean that the federal government could shed about one-third of its targeted public-service job cuts through the early retirement program, which it introduced as a way to mitigate layoffs. The government is looking to cut the size of the federal public service by about 30,000 jobs as part of Prime Minister Mark Carney’s spending review.

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It’s unclear how many of the remaining applications will be approved. Paper submissions are expected to be processed in the coming days and weeks, which could increase the amount of approvals at a future date, officials say.

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Department heads are responsible for approving early retirements, taking into consideration budget reductions and the operational needs of their organizations.

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“With the application period now closed, over 10,000 applications have been received… that number will continue to grow as the remaining applications move through the eligibility review process,” Mohammad Kamal, director of communications for Shafqat Ali, the president of the Treasury Board, told the Ottawa Citizen.

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“We thank public servants for their invaluable service to Canada and Canadians. We will continue to support employees as they consider their options and make the decision that is right for them.”

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In the run up to the application period, which ran until July 24, the federal government sent letters to about 68,000 eligible public servants to let them know they could apply.

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The program allows public servants to retire early without incurring costly penalties on their pensions.

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Normally, employees who retire before meeting a certain age and requirements could see their pension reduced by five per cent each year they retired early.

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Two groups are eligible for the program, including those who joined the federal government on or before Dec. 31, 2012, are at least 50 years old and have at least two years of pensionable service and 10 years of employment.

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The second group includes those who joined the public service on or after Jan. 1, 2013, are at least 55 years old and have at least two years of pensionable service and 10 years of employment.

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The last possible day of employment for those taking the retirement package is set for Jan. 19, 2027, while the latest possible retirement day is Jan. 20, 2027.

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Carney’s spending review aims to reduce the operating budgets of most departments and agencies by 15 per cent over several years.

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The federal government will fund the retirement incentives through a surplus within the Public Service Pension Plan, which has ran successive surpluses.