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Nearly 10,000 Public Service Workers Depart CRA Amid Benefit Changes, Operational Issues
A sudden exodus of nearly 10,000 public service workers from the Canada Revenue Agency (CRA) during the recent tax season has caused operational challenges. The departure was primarily prompted by changes and uncertainties surrounding federal workers' retirement benefits and the improper use of administrative leave.
Key causes included the:
- Proposed Elimination of the Federal Employees Retirement System (FERS) supplement, triggering widespread alarm among federal employees. This supplement, offering income comparable to Social Security for retirees aged 62 and older, was slated for removal, leading to a potential reduction of up to 32% in retirement income for those retiring under the Deferred Resignation Program (DRP). The sudden threat of losing this benefit accelerated retirement adjustments among federal workers[2].
- Misuse of Administrative Leave: Extended periods of paid administrative leave were imposed on tens of thousands of federal employees, including CRA workers, in violation of legal limits, which restrict such leave to 10 days. Administrative leave served as a tool to bypass due process protections and congressional intent, leading to operational dysfunction and workforce instability[3].
- Confusing Mass-Resignation Incentives: Federal employees were offered incentives to resign, such as continued pay and benefits until September 2025. However, subsequent updates made the clarity of these incentives unclear, causing uncertainty among public service workers, likely accelerating resignations[4].
- Exit Options: The CRA provided mechanisms like "immediate resignation" with severance pay and "leave without pay," enabling employees to depart swiftly or delay departure while retaining some benefits, fueling the wave of resignations[1].
In essence, a combination of pension benefit cuts, improper administration of administrative leave, and unclear mass-resignation incentives drove the crisis at the CRA, leading to the departure of nearly 10,000 public service workers during a critical period, resulting in significant capacity issues[1][2][3][4].
The financial uncertainty caused by proposed changes to the Federal Employees Retirement System (FERS) supplement, which threatened to reduce retirement income for some, contributed significantly to the mass exodus of public service workers from the Canada Revenue Agency (CRA). Additionally, misuse of administrative leave, complications with mass-resignation incentives, and exit options provided by the CRA further fueled this business and technology-driven crisis, leading to significant operational challenges within the CRA during the recent tax season.
