Fed bureaucrats collected $1.2 billion in severance without being laid off

By Jason Fekete, Postmedia NewsJune 7, 2012

OTTAWA - The federal government paid $1.2 billion in voluntary severance last fiscal year to 91,613 public servants who either remain in their jobs, retired or quit on their own - a perk unheard of to most Canadian taxpayers who are footing the bill. Business groups and spending watchdogs say the voluntary payouts are both "staggering" and "outrageous," considering Canadians in the private sector are generally only paid severance when they lose their job - not if they continue working or leave on their own.  All told, taxpayers are on the hook for more than $1.5 billion in regular and voluntary severance to 102,589 public servants in 2011-12, according to new federal numbers obtained by Postmedia News. The total severance payout includes the $1.2 billion to more than 90,000 employees who voluntarily requested the payments, as well as additional cash for those who received regular severance benefits (payment upon termination of employment regardless of circumstances), according to Public Works and Government Services, the department responsible for the payments.  The numbers include payments to federal departments, agencies and most Crown corporations, but don't factor in large, independent corporations like Canada Post and Bank of Canada, which pay their employees separately.  The government also is projecting it will spend at least another $850 million in the current 2012-13 fiscal year on accumulated severance payouts (including for resignation and retirement) owed to federal employees as per collective agreements signed by successive governments over several years.  The Conservative government, as of October 2010, halted the accumulation of severance benefits for resignations and retirements, but is renegotiating a number of collective agreements with public sector unions to cover what is already owed. (more)