Canada Revenue Agency leads federal early-retirement exodus with 1,552 applications

The Canada Revenue Agency has recorded 1,552 applications for the federal Early Retirement Incentive as of September 8—the highest of any federal organization, according to a new online tracker launched Tuesday.

The CRA's 1,552 applicants represent about 3 percent of its workforce of 48,774 employees. Treasury Board received a little more than 10,000 applications total, with 9,438 confirmed as meeting criteria as of September 8, 68 denied, and 196 discontinued.

The Early Retirement Incentive was announced in Budget 2025 to limit layoffs from federal spending cuts. The federal government is targeting a reduction of about 40,000 positions—around 10 percent of the public service's peak headcount of 368,000 in 2023-2024.

Other organizations with high application numbers include Employment and Social Development Canada, National Defence, Public Services and Procurement Canada, and Correctional Service Canada. Canada Economic Development for Quebec Regions saw the highest percentage uptake relative to workforce size, at 5.44 percent of its 349 workers.

Eligible public servants were notified of the program approximately 68,000 in total. The incentive allows early retirement without the normal pension penalties. Two eligibility groups apply: those who joined the public service on or before December 31, 2012, must be at least 50 years old; those who joined on or after January 1, 2013, must be at least 55. Both groups need at least 2 years of pensionable service and 10 years of employment.

Job classifications with the highest uptake include administrative services, program administration, and information technology roles. The federal government is targeting $60 billion in savings over five years from operational budgets.