Retirements may not help shrink public service budget

Fear of job losses in Ottawa came with the Conservative's budget promise to find $11 billion in government savings over the next four years.

With as many as 80,000 public servants supposed to retire in the next few years, that could make up a significant portion of those savings.

But the impact of those retirements is unknown.

John Gordon, head of the Public Service Alliance of Canada, said many in public service may keep working to shore up their finances.

"They want to stay working a bit longer because they've got other obligations, kids going to university and the likes," he said. "They don't take that into the fact when they talk about attrition."

Brian Card of the Corporate Research Group said when civil servants retire, they get about 65 per cent of their salary going forward.

He says this means the economic impact is lessened further, so other job cuts will happen in Ottawa.

"There will be job losses and they will be here," he said.

With a report from CTV Ottawa's Norman Fetterley.