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April 7, 1997
(Executive Council)

240 leaving under Voluntary Departure Program

On February 21, 1997, government announced a $10 million Voluntary Departure Program to encourage and facilitate the early departure of employees who wished to leave the public service. Government expected half of the 400 employees who were within three years of receiving a pension to avail of this program. Finance and Treasury Board Minister, Paul Dicks, announced today that more than half of eligible people, 240 employees, have elected to voluntarily leave the public service under this program.

The 240 employees come from government departments, health care institutions, colleges, school boards and other agencies. Their benefits account for approximately $8 million.

"Government is delighted with the take-up under the Voluntary Departure Program," said Mr. Dicks. "These 240 individuals will leave the public service without penalty. In effect, this will mean 240 less layoffs in the system. This type of program is exactly the kind which gives employees incentive to leave the public service at an age when they are approaching retirement, while allowing government to preserve the jobs of younger workers and minimize workforce reductions outlined in the 1997 Budget."

The program provides benefits in accordance with government's existing redundancy policy, to a maximum of 62 weeks. Employees may also choose to use their benefits to help offset early retirement pension reductions.

In addition to those leaving under the Voluntary Departure Program, there are approximately 600 employees who are eligible for a full, unreduced pension. With a usual 50 per cent take-up rate on normal retirements, about 300 more people may retire this year from the public service. If this happens, the 300, in addition to the 240 employees leaving under the Voluntary Departure Program, will mean 540 less layoffs within the public service.

Contact: Karen McCarthy, Director of Communications, (709) 729-0110.