The Canadian government is reviving a strategy from the 1990s to reduce the size of the civil service by offering financial incentives for early retirement. This initiative, known as the Early Retirement Incentive, aims to cut the federal workforce without resorting to mass layoffs. The program is expected to cost $1.5 billion over five years, with an average annual expenditure of $300 million. However, it will only yield annual savings of approximately $82 million. This means it could take up to 18 years for the program to break even. According to federal budget documents, the initiative is set to begin next year. By 2044, the anticipated savings from the incentive are expected to equal the costs incurred from implementing it. Currently, the Canadian civil service has a record high of 367,772 employees, a number that has increased significantly during Prime Minister Justin Trudeau's administration, which saw a 42 percent rise in federal bureaucrats and a 68 percent increase in payroll over nine years. Prime Minister Mark Carney's recent budget outlined plans to create a "more sustainable public service" by reducing the workforce by 40,000 positions. The government currently employs 357,965 individuals. The Early Retirement Incentive will specifically target civil servants aged 50 and older, with notifications sent to 68,000 public servants this week. Under the most favorable terms of the program, a civil servant with just 10 years of service could retire up to five years early while still receiving their full pension. This means eligible employees can retire without facing the usual penalties associated with early retirement. Typically, retiring early results in a permanent reduction of the pension amount, with a five percent decrease for each year taken early. For example, if a civil servant expects to receive an average pension of $38,870, retiring five years early would reduce that amount by $9,500 annually. The Early Retirement Incentive eliminates these penalties, allowing employees to retire early while maintaining their full pension benefits. The Public Service Alliance of Canada has expressed support for the initiative, stating, "PSAC welcomes efforts to prevent involuntary layoffs." The government hopes that this approach will minimize labor disruptions, similar to early retirement initiatives from the 1990s, which were part of a broader strategy to reduce debt under former Prime Minister Jean Chretien. The previous program also waived pension penalties for early retirees, resulting in significant personnel reductions with minimal involuntary departures. As the government moves forward with this new incentive, it aims to balance workforce reduction with the need for stability within the public service.