HUMA committee briefing binder: Appearance by the Minister of Citizens’ Services – May 6, 2024

Overview

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) has invited you to appear in view of its study of the Supplementary Estimates (C), 2023-2024 and Main Estimates 2024-2025.

Committee proceedings

Your appearance is scheduled to take place on May 6, 2024, from 4:30 to 5:30, following the appearance of Minister Boissonnault on the first panel of the day. Other ESDC ministers (Ministers Khera and O'Regan) have appeared on April 29^th and Minister Sudds will appear on May 9^th.

You will be accompanied by:

• Cliff Groen, Chief Operating Officer for Service Canada
• John Ostrander, Business Lead, Benefits Delivery Modernization
• Brian Leonard, Director General and Deputy Chief Financial Officer

You have no outstanding follow up written responses due to the Committee.

HUMA has agreed that questioning of witnesses would be allocated as follows:

In round one, there are six minutes for each party in the following order:

• Conservative Party;
• Liberal Party;
• Bloc Québécois; and
• New Democratic Party.

For the second and subsequent rounds, the order and time for questioning is as follows:

• Conservative Party, five minutes;
• Liberal Party, five minutes;
• Bloc Québécois, two and a half minutes;
• New Democratic Party, two and a half minutes;
• Conservative Party, five minutes; and
• Liberal Party, five minutes

Parliamentary environment

You are expected to receive questions clustered around the two following themes:

• Benefits Delivery Modernization (BDM): this programme has been drawing substantial attention from parliamentarians. In December, Senior ESDC officials testified on this program at the Public Accounts Committee in relation to an Auditor General report. In the same vein, you received a number of related questions during your last appearance before HUMA in early February. Moreover, ESDC officials were recently before the Standing Senate Committee on National Finance where, in the context of Supplementary Estimates C, they received questions on the budget and user experience related to BDM. You may therefore be questioned on:
  • Budget 2024 announcement for additional funding
  • Projected timelines and costing of the programme
  • Auditor General's report on information technology systems at risk of failing
• Service delivery: HUMA has in the past been focused on different issues related to service delivery, notably on passports. Also, prior to your appointment, members would question from time to time your predecessors or officials on file specific issues in EI or other benefits delivery. Therefore, you may be asked about:
  • Meeting the needs of diverse groups and hard-to-reach populations
  • Canada Dental Benefit
  • ESDC/Service Canada employees who claimed COVID-19 emergency benefits
  • Delivery of Employment Insurance benefits
  • Delivery of Canadian Dental Care Plan
  • Passport service standards and wait times

Drive the digitalization of government services, with particular emphasis on accelerating and expanding the use of Canadian Digital Service across government (a similar commitment was in 2021 mandate letter)

Develop and implement a modern, resilient, secure and reliable services and benefit delivery system (this commitment was in the 2021 mandate letter)

Encourage more agile, open and user-focused methods when designing services for Canadians (a similar commitment was in 2021 mandate letter)

Provide seniors with a single point of access to a wide range of government services and benefits

Serve as our government's champion for service delivery excellence, placing Canadians at the core of how we design and deliver their services

Develop a whole-of-government Cabinet directive that outlines our objectives, expectations, and plans with respect to the delivery of federal services

Bolster Service Canada's leadership role in delivering services to Canadians, including identifying high-impact service improvements and supporting the delivery of priority initiatives, like the Canadian Dental Care Plan

Create a trusted digital identity platform to support seamless service delivery to Canadians across the country

Drive government-wide coordination and focus to ensure that the full suite of government -services are delivered in a more efficient, timely, and accessible manner for Canadians

Explore opportunities to organize the delivery of services in more convenient ways for Canadians, including by life events

Take steps to proactively identify potential service delivery challenges and develop mitigation plans

Question 1

ESDC reports (OPQ 2364) that since 2015, it has awarded over $835M in contracts for consulting services to the following companies:

• (i) McKinsey & Company
• (ii) Deloitte
• (iii) PricewaterhouseCoopers
• (iv) Accenture
• (v) KPMG
• (vi) Ernst and Young
• (vii) GC Strategies
• (viii) Coredal Systems Consulting Inc.
• (ix) Dalian Enterprises Inc.
• (x) Coradix Technology Consulting Ltd
• (xi) Dalian and Coradix in joint venture.

Question 2

What percentage of the Department's budget was spent on these companies and what has been the contracting trends since 2015?

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Can you confirm that you have had contracts with GC Strategies Inc. and if so:

Issue

BDM Costs and Timeline

Background

The Benefits Delivery Modernization (BDM) Programme is critical to ensuring the ongoing delivery of Old Age Security (OAS), Employment Insurance (EI) and the Canada Pension Plan (CPP).

BDM is the core initiative that will deliver on the Minister of Citizens' Services 2023 mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live".

Key facts - Costs

As of the end of March 2024, the Programme has spent $1.1 billion (including taxes).

In 2020, BDM's programme authority was set at $2.2 billion (including taxes).

Given the recent Budget 2024 announcement, to date, the Federal Government has committed $4.4 billion dollars (excluding taxes) to the Benefits Delivery Modernization programme.

This represents the evolving costs based on the experience and further clarity on the scope, timeline, and dependencies.

Key facts - Timeline

BDM was originally announced in Budget 2017, and this commitment was reiterated in Budgets / off-cycle requests in 2018, 2019, 2020, 2022, 2023 and 2024.

In spring 2021, BDM started its implementation phase and switched to OAS as the first benefit to onboard.

In autumn 2022, the Common Benefits Delivery Platform was built, and the OAS re-plan was approved.

In June 2023, the first OAS release went live with over 600,000 foreign benefit recipients now being served through the new platform. OAS on BDM, is at this time, on track to onboard all remaining OAS accounts by December 2024.

Between 2024 and 2028, BDM will turn its attention to the implementation of EI, the continuous improvement of OAS, and planning for CPP.

Between 2027 and 2030, BDM will focus on the implementation of CPP, the continuous improvement of OAS and the continuous improvement of EI.

As a pathfinder Programme in the GC, estimates can only be assessed with what is known at a point in time. This means that costs will continue to evolve as the complexity of unravelling the current legacy systems is further assessed.

Key messages

BDM is first and foremost a business-led change that in addition to replacing the underlaying technology platforms, will modernize, evolve and ultimately transform how Canadians interact with Service Canada. In June 2023, the first OAS release went live with over 600,000 foreign benefit recipients now served through the new platform and OAS on BDM is, at this time, on track to onboard all remaining OAS accounts by December 2024.

While the BDM programme is a very sizable investment, during the 10-year life of the programme, over $1.5 trillion in EI, OAS and CPP benefits will be paid out, and the current and projected costs are consistent with similar transformations undertaken in other jurisdictions.

The projects are meticulously planned and governed with ongoing project reviews conducted on a regular basis by internal audit and third-party assurance, with findings and actions reviewed by Programme governance.

BDM has a single responsible Deputy Minister solely accountable for the Programme, and BDM's governance structure includes both partner vendors and partner departments such as Treasury Board, Public Services and Procurement Canada and Shared Services Canada.

Since EI is onboarding second, BDM will have valuable firsthand experience with the onboarding process and well-documented lessons learned from OAS on BDM.

The BDM procurement plan for each stage of the Programme is carefully developed, in accordance with the roadmap, project plans and input from TBS, PSPC and SSC. Contracts are competitively procured based on business and technical requirements led by PSPC.

Issue

What is the status of OAS on BDM?

Background

The Benefits Delivery Modernization (BDM) Programme will introduce modern and responsive applications and incorporate leading-edge technologies and methods to enable the delivery of Old Age Security (OAS) benefits initially, followed by Employment Insurance (EI) and then Canada Pension Plan (CPP). BDM is on track to modernize OAS, EI, and CPP over three phases, with an expected completion date of 2030.

OAS will be the first benefit onboarding to the BDM Common Benefits Delivery platform, and we are at this time on track to deliver the full OAS benefits implementation by December 2024.

OAS-on-BDM will be implemented across three (3) releases:

• Release 1 (June 2023) - is a case management solution which supports International Agreement Foreign Benefit clients.
• Release 2 - which is essentially a full Non-Production Pilot is a full end-to-pilot to test the functionality of the solution and ensure the business is prepared to use the new solution.
• Release 3 (December 2024) - is the implementation of the full end-to-end solution supporting all new and existing OAS clients.

Key facts

The BDM Programme supports the Minister's mandate to develop and implement modern, resilient, secure, and reliable services and benefit delivery systems for Canadian citizens.

OAS Release 1 went live on June 12, 2023, and enables 600,000 OAS Foreign Benefits clients to be served through the modernized system. The successful deployment of Release 1 demonstrated that we have a stable and secure solution for the delivery of benefits to Canadians.

The subsequent OAS on BDM milestone was Release 1.1, which went live on October 30, 2023. Release 1.1 built upon the Release 1 capabilities adding a platform upgrade, bug fixes, enhanced features, and integration with the Pension legacy system.

The next release is a non-production release of the OAS solution. This will be a fully simulated office pilot which will test the end-to-end functionality of the system and not directly impact clients. A dry run is scheduled for August, after which the Business Pilot will begin on September 3.

OAS Release 3 is currently on track for December 2024, and will transition the rest of the 7.3 million OAS clients to the Common Benefit Delivery platform. It will introduce a redesigned OAS/GIS application, life event reporting (e.g., marital and legal status changes), and other self-service features (e.g., requests for reconsideration and voluntary tax deduction) for our OAS benefit recipients.

[Redacted, 4 sentences]

Key messages

The Department recognizes the critical need to get the OAS implementation right. Putting vulnerable seniors' payments at risk is not an option.

OAS-on-BDM is focused on delivery of a solution that meets the quality expectations of Canadians, safeguards their information, and ensures the continuity of services to clients.

The BDM programme successfully implemented Phase 1 of Old Age Security (OAS) bringing the first group of OAS clients onto the new Common Benefits Delivery platform in June 2023. The implementation included Case Management Support for over 600,000 Foreign Benefit Clients.

This release was the first step towards fully modernizing and delivering digital services to citizens and is a key affirmation of the Government's capacity to transform and modernize technology.

The next phases of the OAS migration, scheduled to be completed in December 2024, will see approximately 7.3 million new and existing OAS clients transitioned onto the new platform.

There will be no disruption to benefit payments, and Canadians can expect a seamless transition from the legacy system to the new platform.

Once complete, Canadians will benefit from a modern, stable OAS system deployed on current technology that can be more quickly modified to adapt to changes in policy or legislation. It will feature a new user experience that will be easily adapted to changes in user preferences, and will be safe and secure, ensuring that benefits will be properly managed and paid for years to come.

Employment Insurance (EI) Processing

• In 2024-25, as of the week ending April 20, 2024, 86.3% of Employment Insurance (EI) payments, or notifications of non-payment, were made within 28 days, compared to 74.24% for the same period in 2023-24.
• In 2023-24, the average number of days it took for a client to receive their first EI benefit payment was 18 days, compared to an average of 24 days over the same period in 2022-23.
• In 2024-25, as of the week ending April 20, 2024, 45,975 EI Initial and Renewal applications have been received and 49,315 have been processed.

EI Call Centre Wait Times

• On November 3, 2022, the Fall Economic Statement announced $483 million to reduce EI Call Centre wait times.
• In 2024-25, as of the week ending April 19, 2024, the EI Call Centre answered 337.1 thousand calls with an average annual wait time of 5.8 minutes, compared to an average of 4.1 minutes for the same period in 2023-24 and an average of 30.6 minutes for the same period in 2022-23.

Pensions Processing and Wait Times

Canada Pension Plan / Canada Pension Plan Disability

Issue

Service Canada maintains a network of in-person points of service across the country to support Canadians with personalized access to a wide range of government services and benefits and provides support to Indigenous communities and vulnerable client segments through community outreach.

Background

• 96% of Canadians have access to various services from Service Canada within a 50-kilometer radius of where they live.
• The in-person service delivery network consists of 600 points of service across the country.
• Service Canada's Community Outreach and Liaison Service builds relationships and provides support to Indigenous communities and vulnerable client segments to increase access to programs, services, and benefits, for clients who face distinct barriers to program access.
• The Service Canada Outreach Support Centre is a toll-free telephone service that ensures access to service for Indigenous communities and other vulnerable clients, such as seniors and persons with disabilities, facing barriers to accessing Government of Canada programs and benefits.
• Service Canada's Service Referral Initiative enables organizations to refer vulnerable clients who may require additional support directly to a Service Canada employee for tailored assistance.
• Service Canada Centre locations and office sizes are strategically determined after a detailed analysis of community needs and client demand; consideration of forecasted volumes and stakeholder engagement; and are dependent on real property market availability.

Key facts

• The in-person network consists of 317 Service Canada Centres; 249 scheduled outreach sites; 15 service delivery partner sites; and 19 passport service sites.
• Scheduled Outreach sites offer, on a scheduled basis, all the services available at a Service Canada Centre in rural and remote locations.
• The Community Outreach and Liaison Service has well-established relationships with 740 Indigenous communities.
• Between April 1, 2023, and March 31, 2024, Community Outreach and Liaison Service staff completed 12,536 engagements with 53,886 service delivery partners and employers. They also conducted 9,261 outreach activities in FY 2023-24, providing 205,233 clients with a tailored access to services and benefits.
• In FY 2023-24, 20,825 clients called the Outreach Support Centre to receive support for 25,515 service requests.
• Information about Service Canada programs, services and benefits are available online at www.canada.ca or via online services, such as My Service Canada Account, Social Insurance Number online and the Service Canada online request form (eServiceCanada), which are accessible 24 hours a day, 7 days a week,
• Services by phone are accessible from 8:00 a.m. to 5:00 p.m. local time at 1 800 O-Canada (1-800-622-6232)

Key messages

• Service Canada provides access to a wide range of programs and services through its in-person network including, Service Canada Centres, Service Canda Centre Passport Service, Scheduled Outreach, and Community Outreach and Liaison Service
• Community Outreach and Liaison Service provides access to programs, services, and benefits to clients where they live and/or spend time, with a focus on vulnerable and underserved clients facing barriers to accessing benefits and services.
• As part of our commitment to reconciliation, we continue to find ways to improve access to government services and benefits by working collaboratively with Indigenous communities and other key partners.
• Service Canada continually assesses the needs of its clients and communities to ensure that its services align with client demand and remain responsive to the needs of Canadians.
• Canadians who require in-person services should consult the find a Service Canada office webpage to find services close to their home.
• Community organizations who would like to request information on Community Outreach and Liaison Service or an Outreach activity can do so on the Service Canada Community Outreach and Liaison Service Canada.ca webpage.

Issue

Some clients have to travel significant distances in order to obtain passport services. Road access and weather conditions can impact access to services.

Key facts

• Service Canada's Passport Service Delivery model has evolved significantly through the years, continually expanding access to clients and in alignment with the modernization plans of the Program. Following the passport surge in 2022 and to help distribute the passport volumes across the network, expedited services with a 10-day service standard were introduced in several Service Canada Centres
• At this time, clients can apply for and receive their passport within 20 business days (plus mailing time) at Service Canada Centres and Scheduled Outreach sites, while a 10-business day service is available in all Passport Offices and select Service Canada Centres (including consolidated sites and expedited service sites)
• Canadians can obtain urgent pick-up services in 1-2 days and express services in 2-9 days in offices that have a printer on site or within close proximity to the site. There are 28 Service Canada Centres Passport Service that currently offer urgent and express services across Canada. When a client requires a passport urgently, they are required to go to directly to these offices.

Key messages

• Service Canada continuously assesses how services are delivered across the country. Offering passport services to meet Canadians' need is a priority.
• Expanding urgent and express services in some cases requires the installment of new printers and associated real property costs. Service Canada is diligently working with its partners from Immigration, Refugee, and Citizenship Canada to assess feasibility and opportunities to enhance and expand services currently being offered.
• Passport services are funded through the Passport Revolving Fund, which operates on a cost recovery basis from revenues generated through service delivery fees. It is therefore important to work with Immigration, Refugee, and Citizenship Canada as program owner to balance service delivery and cost of expanding services.
• Service Canada recognizes that some communities could benefit from expanded passport services. Alternate service delivery options are being assessed to determine what additional service delivery improvements may be possible and feasible.
• Service Canada is currently undergoing major transformation initiatives specific to passport service delivery. Deploying additional printers is also tied to a successful deployment of these modernization initiatives.

Issue

In recent years, the department's programs have increasingly become the target of fraud. Both the nature and volume of fraud have expanded, including cyber-based fraud. The schemes are more sophisticated and organized.

Background

• Globally, public sector institutions are dealing with increasingly sophisticated and complex cyber attacks. Fraudsters are leveraging stolen personal information to access social benefits.
• Service Canada takes the integrity of its programs very seriously and remains committed to the financial stewardship of its programs.
• Service Canada must balance the protection of public funds against the need to put clients into pay as quickly and seamlessly as possible.
• Integrity activities at ESDC focus primarily on detection, with the most significant of these activities being directed towards investigations. The department uses a variety of tools and processes to help identify and address instances of error, abuse, and fraud. In 2023-24, ESDC conducted more than 183,900 investigations relating to the EI, CPP/OAS and SIN programs.

Key facts

• The department leverages data analytics and intelligence capabilities to identify fraud vectors/patterns and proactively take action to prevent payments from being issued to fraudsters.
• The department has enhanced its security posture in an effort to mitigate ongoing threats. These include:
  • Enhancing firewalls to screen out certain kinds of inappropriate access;
  • Protection from automated / scripted / robotic accesses to systems ("bots");
  • Behaviour pattern analysis to flag suspicious activity in our systems; and
  • Some internal activity and access monitoring to screen for internal threats.
• Furthermore, between April 2023 and April 2024, more than 5,400 stop-pays were imposed. These stop-pays have detected over $18.7 million in overpayments and prevented an estimated $28 million in payments from being issued to fraudsters.
• In Volume III of the Public Accounts of Canada 2022-2023, ESDC reported an amount of $96.5 million ($53.3 million in 2021-2022) in losses of public money due to an offence, illegal act or accident. The majority of this amount ($95.8 million) is related to fraudulent claims for Employment Insurance.

Key messages

• Service Canada takes the integrity of its programs very seriously.
• The department leverages data analytics and intelligence capabilities to disrupt, detect and prevent fraud.
• New IT solutions have been implemented to identify fraud patterns earlier in the application process and prevent fraudulent applications from being submitted online.
• Allegations of fraud or illegal acts are fully investigated and could be referred to law enforcement agencies as appropriate. Debts are established and penalties imposed when allegations are founded.
• Measures are in place to support clients impacted by identity theft/fraud on a priority basis.
• Service Canada also works closely with the Canadian Anti-Fraud Centre, the Canadian Centre for Cyber Security, other government departments, law enforcement and financial institutions to help defeat fraudsters.

Issue

ESDC/Service Canada terminated the employment of departmental employees upon finding that they had misrepresented their circumstances in order to obtain COVID-19 Emergency Benefits to which they were not eligible.

Background

• As part of its mandate to develop and implement a modern, resilient, secure and reliable service and benefit delivery system for Canadians, ESDC/Service Canada continues to strengthen and enhance its control mechanisms to prevent, detect and address fraud, error and abuse. To preserve the integrity of the program and maintain the trust of Canadians, ESDC/Service Canada promotes early detection and resolution.
• ESDC/Service Canada remains committed to the protection of its information holdings, its assets and people, including from insider risks.
• Due to the urgency in getting money in the hands of eligible Canadians as quickly as possible, the rollout of COVID-19 Emergency Benefits programs provided for post payment rather than prepayment eligibility verification, thus increasing the potential for fraud, error and abuse. However, the questions were written in plain language requiring the applicant to answer with "Yes/No" answers to all questions in order to be eligible and to certify to the truthfulness of their answers.
• The Minister of Employment and Social Development is responsible for COVID-19 Emergency Benefit Programs, as per the applicable Acts. Departmental employees are expected to support ministers in their responsibilities.
• Every day, ESDC/Service Canada provides numerous services and benefits to Canadians in accordance with the provisions of various Acts governing those services and benefits. In general, departmental employees have better knowledge and a greater understanding of eligibility requirements than the ordinary applicants.

Key facts

• While conducting administrative investigations pertaining to other allegations, ESDC/Service Canada discovered that some departmental employees were in receipt of COVID-19 Emergency Benefits while continuing to receive their full pay from employment with the department.
• Persuant to the Department of Employment and Social Development Act, ESDC/Service Canada compared data from its human resources and pay systems with COVID-19 Emergency Benefits program data to identify employees who received benefit payments as well as pay from employment with the department for the same periods.
• ESDC/Service Canada conducted administrative investigations and, in accordance with the Treasury Board Secretariat's Standard on Security Screening, reviewed the reliability status of employees who misrepresented their circumstances in order to obtain COVID-19 Emergency Benefits to which they were not eligible.
• As of April 1, 2024, 54 employees had their reliability status revoked and were terminated following a review of their Security status. Ongoing diligence continues.
• The recovery of ineligible payments occurs following the completion of the investigative process. All cases were referred to program administrators for post-payment verification and ESDC has taken action to recover ineligible payments.

Key messages

• Protecting the integrity of its programs and departmental information holdings, its assets and people is of the utmost importance and requires that ESDC/Service Canada maintains rigorous security practices, including taking proactive measures against the risks posed by departmental employees.
• ESDC/Service Canada actively promotes a strong ethical culture by providing all employees with resources, tools, training, communications, and support on values and ethics. This includes a cyclical requirement to recertify specific training, such as the Stewardship of Information and Workplace Behaviours training.
• In all 54 cases, ESDC/Service Canada's Chief Security Officer found that the employees misrepresented their circumstances in order to obtain COVID-19 Emergency Benefits they were not eligible to receive. In doing so, they lost the employer's trust and were terminated as they no longer met their terms of employment.

Issue

Integrity of the Canadian passport and application processing.

Background

• The integrity of the Canadian passport is internationally recognized and respected and is a key factor in maintaining safe, secure, and visa-free access to over 180 countries for Canadians.
• The Canadian Passport Order (CPO) dictates who is entitled to a regular (blue) passport, how it is issued, and when a passport can be refused, cancelled, or revoked.
• As part of the passport issuance process, all required documentation is reviewed to ensure accuracy and determine applicant eligibility. Security checks are performed against Immigration, Refugees and Citizenship Canada's Central Index file, which are used as a decision support mechanism for either issuing or refusing a passport to an individual.
• There are multiple Government of Canada departments involved in the delivery of the Passport Program:
  • Immigration, Refugees, and Citizenship Canada (IRCC): Accountable for the overall Passport Program. Is mandated by the Canadian Passport Order to issue, cancel, revoke, withhold and recover Canadian passports
  • Minister of Public Safety: Responsible for passport cancellation, refusal, and revocation in cases of terrorism and national security
  • Employment and Social Development Canada (ESDC): Provides domestic service delivery (through Service Canada)
  • Global Affairs Canada (GAC): Provides passport services abroad through its consular service network

Key facts

• Canadians can submit completed paper applications for a passport by going to any of the 317 Service Canada Centres, 19 passport offices or by mail.
• As of March 28, 2024, 249 Scheduled Outreach sites offer passport services.
• Passport Officers or Citizen Service Officers review and validate the information provided by applicants to ensure completeness, including photos, documentary evidence of citizenship, supporting documents, signature, and payment information.
  • First-time applicants completing a general application must obtain a guarantor to confirm their identity. A verification is completed with a guarantor and/or references when applicable.
• If needed, applications may be referred to IRCC for further review.

Key messages

• The Passport Program follows an established process for identity management. Applicants must submit supporting documents, photos, guarantors, and references information to obtain a passport in accordance with Program requirements. These elements are key to ensuring the integrity of Canadian passports.
• The Passport Program utilizes documents previously issued by other governmental authorities to determine identity.
• Employees are trained to identify fraudulent documents. Processes are in place for employees to inform Immigration, Refugees and Citizenship Canada of any suspicious patterns or irregularities they may come across in the course of their daily duties.
• When evidence of suspected fraudulent activity is found or reported, IRCC launches an investigation where Service Canada may provide support and information. Investigations may result in passport refusal and/or revocation.
• Service Canada, in collaboration with Immigration, Refugees and Citizenship Canada, continuously works to review and improve processes to ensure passport misuse and/or entitlement fraud does not occur.
• Service Canada is committed to protecting personal information and understands the importance that Canadians place on the protection of their personal information. As responsible stewards of client information, Service Canada has well established procedures and processes around the management of personal information and the reporting of privacy breaches.

Issue

Current passport service delivery service standards and volumes.

Background

• Beginning in July 2013, Canadians were given a choice between a 5-year validity passport and a 10-year validity passport. Early applicants for the 10-year validity passports have begun to apply for new passports before their passports began to expire starting in July 2023.
• To coordinate delivery of the Passport Program, ESDC/Service Canada's service delivery approach is based on forecasts received from Immigration, Refugees and Citizenship Canada (IRCC). These forecasts are broken down by month and by the predicted channel (Service Canada Centre - Passport Office, Service Canada Centre or mail) that applicants will use to apply for their passport.
• ESDC/SC uses the mid-range forecast to determine the workforce needed to handle the volumes. During some peak periods, ESDC/SC leverages alternate methods (e.g. overtime) to manage through the short period increase.
• Over the last year, ESDC/Service Canada has taken several actions to improve passport services to Canadians:
  • Aligned the operational passport workforce to meet the forecasted surge in passport applications starting in 2023-24.
  • Maintained the appointment-booking tool that directs clients to the right location for service.
  • Applied line management strategies to provide all clients in line with a service solution.
  • Increased access to passport services, with 22 Service Canada Centres offering 10-day service.
  • Expanded the delivery of passport services to scheduled outreach sites to help meet the passport needs of rural and remote communities.
  • Maintained and improved the online Passport Status checker that allows more clients to self-serve the status of their passport application.

Key facts

Key messages

• As a result of the expiration of the 10-year validity passports, passport volumes are expected to remain high in fiscal years 2024-25 and 2025-26 with forecasted annual volumes between 4.9M and 5.4M.
• Volumes are forecasted to stabilize for 2026-27 and 2027-28 and then decline for the rest of the 10-year cycle from 2028-29 to 2032-33.
• Renewal applications tend to be quicker and less complicated to review and process as the applicant is known to the program.
• ESDC/SC has continued to review existing processes and apply efficiency to support the processing network.
• Work continues on passport service delivery modernization initiatives, including the installation of new passport printers and implementation of a new passport intake and issuance system.
• Clients have access to passport services at close to 600 points of service across the country, including Scheduled Outreach sites.
• In cases where offices experience high volumes, ESDC/SC staff implement operational solutions to manage line ups.

Issue

ePayroll is a new "digital first" reporting framework, led by the Canada Revenue Agency (CRA), that would change when and how businesses report the monies they paid to an employee and other payroll information to government.

Background

• ePayroll would create an information-rich data bank on incomes, HR and employment history for whole-of-government to exploit benefits of real-time data like connecting hard to reach populations to benefits to which they are entitled, making application forms simpler for Canadians to apply for programs and services, and simplifying businesses' task of responding to requests for labour market information without compromising Canadians' personal information.
• Today, 1.3M businesses report information like salary and tax withholdings to the CRA once a year, in ways not aligned to their standard payroll processes. With ePayroll, employers would automatically report employees' payroll information to the CRA each ‘payday' through ePayroll-enabled software.
• Employers are also required to provide additional employment history information to Service Canada throughout the year by issuing a Record of Employment (ROE) when an employee experiences an interruption of earnings. With ePayroll, employers could meet their existing Employment Insurance (EI) reporting obligations to the Commission without having to issue an ROE.
• Industry stakeholders have long pushed for the government to accelerate work towards ePayroll and were lifted by the language in Budget 2021: "[We] strongly recommend that the Government of Canada adopt international best practices by introducing ePayroll in a pilot form prior to full program deployment. To accomplish that, the Government of Canada should advance the ePayroll initiative and allocate necessary budgetary resources in the 2024-2025 fiscal year to ensure its timely completion and implementation."
• The Auditor General's Fall 2022 Report 10-Specific COVID-19 Benefits "found that the Canada Revenue Agency and Employment and Social Development Canada (ESDC) did not have a modern real‑time payroll data requirement for businesses. Real‑time data could have been used to assess program eligibility, calculate the benefit payment, and improve the overall efficiency of managing the COVID‑19 programs as reported in the above section on limited pre‑payment controls." In the management response, both organizations agreed "to develop options for the implementation of the ePayroll solution."
• The Prime Minister has repeatedly indicated strong support to accelerate "a real-time e-payroll solution that will reduce red tape, and increase the delivery, speed, and accuracy of services and benefits."
• To support this, Budget 2021 invested $43.9M (over three years) to accelerate the government's commitment to implementing "E‑payroll as a ‘tell-us-once' approach that will streamline employer reporting by collecting electronic payroll, employment, and demographic data directly from businesses in real-time." (1) CRA was provided with $32.2 million, $10.2 million to ESDC and $1.5 million to Treasury Board of Canada Secretariat (TBS).
• In May 2023, to operationalize ESDC's commitment to the PM and "ready the EI program as a consumer of an ePayroll service" the Department's deputy ministers endorsed a vision to deliver the expected results by using ePayroll information to improve the accuracy of EI payments, to streamline employers EI reporting obligations via ePayroll and to simplify the EI Client experience. The full value of ESDC's vision can only be realised once most businesses are transitioned to ePayroll reporting.
• The CRA recommended, with ESDC's support a fully costed business case to guide the implementation phase for a "Government-wide approach will advance developing an ePayroll solution," including a "Blueprint for how ePayroll can help bring our government services to the 21st century by delivering the common sense ‘tell us once' experience people rightly expect from government."
• Budget 2024 announced, "the government also remains committed to implementing an ePayroll solution which would reduce the reporting burden on Canadian businesses, especially small businesses, while modernizing and improving how benefits are provided through the Employment Insurance and tax systems".

Key facts

• Other jurisdictions have implemented systems and reporting requirements to collect payroll information in a timely manner, led by their taxation organization. Australia, the United Kingdom and Ireland used their real‑time payroll data to help manage their COVID‑19 benefits.
• In 2017, the EI Service Quality Review recommended that ESDC engage with key stakeholders in the co‑creation of a real‑time payroll information‑sharing solution.
• The CRA is leading this project for the Government of Canada in partnership with ESDC and the Office of the Chief Information Officer (OCIO) in the Treasury Board of Canada Secretariat.
• The ePayroll project is part of the government's commitment in Budget 2021 to propose a real-time ePayroll solution to better enable service to Canadian Business.
• Ending on March 31, 2024, Phase One of the ePayroll project delivered a costed business case for the implementation of an ePayroll solution for the Government of Canada proposing an investment and approach to deliver the expected results and move to implementation.

Key messages

• ePayroll is not a payroll processing system run by the government. Canadian employers will still be free to choose the payroll processing system that suits them.
• The ePayroll project is a Government of Canada initiative to modernize how employers send payroll, employment, and demographic information to government departments and agencies.
• Budget 2024 reiterated the Government's commitment to implementing an ePayroll solution which would reduce the reporting burden on Canadian businesses, especially small businesses, while modernizing and improving how benefits are provided through the Employment Insurance and tax systems.
• We continue to work with stakeholders and government partners to help advance this important initiative.

Issue

Service Canada will manage the application process for the Canadian Dental Care Plan.

Background

• Budget 2023 announced $13.0 billion over five years, starting in 2023-2024, and $4.4 billion to implement the Canadian Dental Care Plan (CDCP).
• The CDCP is led by Health Canada and aims to increase dental care coverage by removing cost barriers to dental care to the greatest extent possible, with a focus on diagnostic, preventative, and restorative services.
• It is estimated that up to nine million individuals may be eligible for the plan once fully implemented.
• On behalf of Health Canada, Service Canada will:
  • Respond to Canadians' enquiries and provide support in applying for the plan
  • Accept, manage, and process applications; and
  • Determine eligibility and communicate enrolment information to applicants (beneficiaries) and to a Third-Party Administrator, Sun Life.
  • Sun Life will deliver the actual dental benefit to Canadians.

Key facts

• From December 2023 to March 2024, 4,000,146 letters were mailed to Canadians aged 70 and over, as planned, bringing the scheduled mailouts of invitations to apply to a close. These letters were sent to those that were partially qualified based on CRA data.
• The department has received over 1.6M completed attestations and 98.4% of applicants have been deemed eligible.
• 77.36% of the seniors who have applied completed their application using the automated IVR system, requiring no assistance from a call agent.
• To date, the specialized call centre has responded to over 400K inquiries about the CDCP with negligible wait times.
• Over 100K citizens have come to our Service Canada Centres to enquire about the CDCP. This represents 2.6% of SCC visits.
• To date, the department has liaised with over 12,304 organizations and held more than 908 events to raise awareness and assist vulnerable populations.

Key messages

• Service Canada is proud to work with Health Canada to help deliver the Canadian Dental Care Plan.
• Service Canada's expertise and experience in delivering benefits and services to millions of Canadians each year positions us to deliver this important priority.
• Our teams of experts are working together to ensure the CDCP provides an integrated and seamless experience for all applicants.
• Our priority is to minimize barriers to access while maintaining security and integrity of personal information.
• From December 2023 to March 2024, over 4M letters were mailed to Canadians aged 70 and over, as planned, inviting them to apply for the CDCP by automated phone system. As of March 31^st, over 1.6M seniors have registered for the Plan, and the first groups of CDCP clients will be eligible to visit an oral health provider as early as May 2024.
• In May, Service Canada is launching an online application system for seniors aged 65 and over. This digital service model will extend to persons with disabilities and children in June.
• A reminder that seniors aged 70 and over who received invitation letters with a personalized application code but didn't apply before April 30, can apply using the online application, provided they have filed their 2023 tax return.
• The eligibility for seniors who received letters inviting them to apply with personal application codes was based on their 2022 tax returns. These codes expire on April 30.

If Pressed (Service Delivery)

The delivery of the Canadian Dental Care Plan is complex. Service Canada is working collaboratively with Health Canada, the initiative lead, and the Canada Revenue Agency to ensure a service delivery system that is user friendly, safe, and responsive.

If Pressed (full implementation)

• As the lead for the CDCP, Health Canada has put forward a staggered implementation plan that will ensure a successful roll out of the CDCP.
• This plan has been a key success factor in the implementation of the CDCP thus far.
• Every effort will be made to ensure we continue to meet citizen expectations as we onboard additional cohorts with the online application system.

Issue

Update on efforts to provide seniors with a single point of access to a wide range of government services and benefits, in collaboration with the Minister responsible for Seniors (Minister of Labour and Seniors).

Background

• Launched on June 27, 2023, the Retirement Hub was the result of ESDC's visionary Seniors' Journey Lab initiative-an ambitious 24-week project aimed at understanding and improving the experiences of clients and employees.
• It is an accessible user-friendly online tool designed to:
  • Help Canadians understand how to plan, apply for, and receive the retirement income security benefits to which they are entitled.
  • Serve all Canadians and reach underserved communities and communities of care, including by helping them become aware of various retirement benefits.
  • Offer a variety of retirement planning tools such as the retirement ready quiz, Old Age Security Benefits Estimator and the Canadian Retirement Income Calculator to assist Canadians in obtaining personalized results tailored to their unique needs.
• An improved version of the Old Age Security Benefits Estimator on Canada.ca is included within the Retirement Hub, offering new features including spousal estimates, the partial Old Age Security pension, and the additional Guaranteed Income Supplement.
• Bundling these services and benefits in a single web application focused on a notable life event also advances a new Mandate Letter Commitment of mine, specifically that government places Canadians at the core of how we design and deliver their services, with an emphasis on delivering services where and when Canadians need them.

Key facts

• The Retirement Hub receives over 1,000 visitors each day.
• Visitors to the Retirement Hub can explore the various services and benefits available related to retirement, take the retirement ready quiz, and receive a checklist of steps on preparing for retirement, tailored to their individual needs and vision of this stage of their lives.
• In addition, the improved version of the OAS Benefits Estimator-which is part of the Retirement Hub's suite of tools-has had close to over 735,000 unique visitors since it was launched in July 2023.

Key messages

• ESDC and Service Canada provide services to help Canadians move through life's transitions, from school to work, from one job to another, from unemployment to employment and from the workforce to retirement. A key part of ESDC's operational mandate is to lead changes that will improve the lives of Canadians and their interactions with the Federal government.
• The Retirement Hub's bundled suite of tools provides seniors, near seniors, and those who support them with an abundance of retirement information at their fingertips. This not only improves their experiences as an ESDC client, but also empowers them with the knowledge to make informed decisions on their retirement needs.
• The Retirement Hub is a scalable model and complimentary resource to other departmental tools and is a meaningful first step in centralizing thematic information for Seniors.

List of abbreviations

This is the complete list of abbreviations for the C15. Digital Services

• SC: Service Canada
• OAS: Old Age Security System
• EI: Employment Insurance
• CPP: Canadian Pension Plan
• CDS: Canadian Digital Service
• CIRNAC: Crown-Indigenous Relations and Northern Affairs Canada

Issue

Digital Services: Enabling Canadians to access modern, reliable and secure digital services is a government priority.

Background

• For many Canadians, digital services are the most convenient service channel, as they can apply at a time most convenient for them, without having to travel to a Service Canada (SC) centre or wait on the phone. Despite this, as outlined in the Government of Canada's Digital Ambition 2022, roughly 68% of Canadians had difficulty accessing services online.
• The government faces many challenges in advancing digital services. For example, the age of systems running Canada's largest benefits programs hinders efforts to improve service delivery. The current Old Age Security system (OAS) is nearly 60 years old, and runs on a mainframe computer using COBOL, one of the earliest computer programming languages. Employment Insurance (EI) uses over 150 custom system solutions built over the past 50 years.
• We are making progress, however. SC is undertaking one of the most ambitious IT transformation projects that the Government of Canada has ever embarked upon: to upgrade and modernize our Benefits Delivery Systems, which manage and deliver benefits like OAS, EI, and the Canadian Pension Plan (CPP).
• We've also taken steps to recruit and develop our digital talent to enhance service delivery more broadly across government. Canadian Digital Services (CDS) was started as a pilot project in 2017 with a mandate to help government improve how it delivers services, using modern approaches and tools to reduce the risk of product failure, lower costs, ensure users' privacy and system security, and, above all, improve people's lives by putting their needs and concerns front and centre. CDS officially became a part of Service Canada in August 2023.

Key facts

• The government is redoubling efforts to improve the digital experience for clients and enhance the reliability and security of services and the systems that support them. In June 2023, 600,000 Canadians were successfully transitioned to the modernized benefits system with the first phase of the OAS roll out. The migration is scheduled to conclude for all client segments in December 2024, followed by a nine-month stabilization period. EI and CPP will follow onto the new platform through iterative releases between 2025 and 2030.
• We're scaling work that makes engaging with the government more consistent and seamless. This includes making it easier for clients to find the relevant information and services they need online, to apply for digital services, and to stay updated on the status of their application digitally, reducing the need to phone in or visit an in-person centre.
• In April 2023, CDS launched work that will guide the transformation of the government's web presence for the public, including its flagship website Canada.ca. This work will help improve the speed and success rate with which clients can undertake many service tasks, such as looking up whether they are eligible for services. The OAS Benefits Estimator on the Retirement Hub site enables clients to quickly access vital information and plan for their futures with more certainty. Clients are now able to find the answer they need (85% success rate of use), with 215,000 visits since launch, and 80% of clients finding the Estimator easy or very easy to use.
• We're helping clients start and finish service applications online. GC Forms is a tool that allows government departments and agencies to build simple, accessible, secure, online forms, making it easier for people and businesses to submit applications and complete other service transactions. For example, Statistics Canada, in conjunction with Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), is currently using the Forms platform to conduct a consultative engagement on the Missing Persons Data Standards this consultation is in support of the Call for Justice in the Murdered and Missing Indigenous Women and Girls National Inquiry Final Report. These modern, accessible, ready-made forms have begun to replace the thousands of PDF and paper forms across government that lead people away from the digital channel and contribute to service delays from manual data entry errors. Currently, there are over 390 live Forms used by 52 different departments across the Government of Canada. The volume of submissions on these forms has increased tenfold since the same time last year (5.9K in March 2023 to 65.5K in March 2024).
• We're enabling clients to stay up to date 24/7. Through the GC Notify tool, clients can sign up for email and text notifications for services and has supported numerous initiatives across government, from helping Canadians stay up to date with product recalls, to supporting the Afghanistan withdrawal. As of April 2024, GC Notify had approximately 480 live services across more than 54 departments and agencies to help people keep up to date.
• We are working to reduce the numerous usernames and passwords clients must remember and improving the experience when clients sign in. There are currently over 60 different entry points to Government of Canada services; that is too many. Budget 2024 includes $25.1M over five years to establish a modern, single sign-in service for federal government services. The Canadian Digital Service will lead this work, collaborating with partners across the Government of Canada, including Treasury Board Secretariat. The single sign-in service will replace 60+ different entry points to Government of Canada services, allowing individuals and businesses to obtain benefits and services quickly and easily.

Key messages

• Canadians expect modern services that meet their needs when they need them. The government is committed to doing so regardless of which channel they choose or which government organization they're interacting with.
• We're working to meet these expectations in many ways, including through large transformations to the services people most commonly access such as EI, OAS, and CPP, and by implementing government-wide service initiatives so that clients are provided with a more consistent, reliable and secure digital service experience when interacting with any department or agency.

Issue

Update on Social Insurance Number (SIN) Processing norm.

(Fiscal Year 2023 to 2024; A fiscal year runs from April 1 to March 31)

Background

• Since 1964, the SIN is a 9-digit number used for federal programs and benefits.
• SIN role:
  • Managing federal programs and services
  • Identifying Canadians' accounts
  • Sharing data
• SIN program in 2022-2023 represents 2.6 million transactions:
  • 1.5 million first-time SINs
  • 1.1 million of SIN amendments and confirmations
• Canadians can get secure and true services and benefits with the SIN program.

Key facts

Clients may obtain a SIN using one of the following 4 channels. Here are the service standards for each of these channels when a client provides all their documents.

• Mail: 20 business days once Service Canada receives the SIN application
• In-person: Clients receive their SIN in one in-person visit
• SIN@Birth: 10 business days
• eSIN: SIN applications are processed within 5 business days
  • Clients may view their SIN through their My Service Canada Account; or
  • Clients receive a SIN confirmation letter by mail
• Service standards results for Fiscal Year 2023-2024 are as follow:
  • Mail: 95% (target 90%)
  • In-person: 98.9% (target 95%)
  • SIN@Birth: 100% (target 99%)
  • eSIN: 94.8% (target 90%)

Key messages

• Our department aims to meet SIN Program service standards.
• Improving the successful delivery of SINs to clients is a priority.

Issue

Why does Employment and Social Development Canada (ESDC) require additional authorities in the Supplementary Estimates (C) for fiscal year ending March 31, 2024?

Key Facts

Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year.

ESDC is requesting a total of $1.5 billion in additional authorities through the Supplementary Estimates (C).

• An increase of $55.1 million in Vote 1 Operating expenditures
• An increase of $4.4 million in Vote 5 Grants and Contributions
• An increase of $215.5 million in Vote 10 Debt write-off
• A decrease of $28.0 million in Statutory items
• An increase of $1,260.3 million in non-budgetary Statutory items

Response

ESDC is requesting adjustments for:

Background

Key Quotes

Nil

Issue

What are the financial highlights for the Department of Employment and Social Development's Main Estimates for the fiscal year ending March 31, 2025?

Key facts

In Part II of Main Estimates for the fiscal year ending March 31, 2025, the Department of Employment and Social Development presents planned budgetary expenditures of $98.7 billion, which is over $4.5 billion higher than the planned budgetary expenditures of $94.2 billion for the fiscal year ending March 31, 2024.

Response

• Planned budgetary expenditures for the fiscal year ending March 31, 2025, totalling $98.7 billion for the Department of Employment and Social Development, are showing a net increase of more than $4.5 billion (approximately 5%) over the Main Estimates of $94.2 billion for the fiscal year ending March 31, 2024.
• The increase is primarily attributable to statutory items. The most significant item being an increase of $4.5 billion to the Old Age Security Pension, the Guaranteed Income Supplement and Allowance forecasts resulting from an expected increased number of beneficiaries due to the aging population and expected increases to average monthly amounts paid mainly due to the indexation of benefits.

Background

Approximately $98,732.2 million in total budgetary funding is anticipated through the Main Estimates ($11,482.3 million in voted appropriations and $87,249.9 million in statutory spending). This excludes funding anticipated through Budget 2024. Over 88% of planned budgetary expenditures will directly benefit Canadians through statutory transfer payment programs, including the Old Age Security (OAS) program. Please note Employment Insurance and Canada Pension Plan benefits and related administrative costs are not included in the Estimates but are reflected in the Departmental Plan.

Overall, the Department of Employment and Social Development's total budgetary authorities for the year ending March 31, 2025 show a net increase of $4,579.9 million, or approximately 4.9%, from the previous year's total Main Estimates of $94,152.3 million.

This increase is primarily attributable to statutory items:

• An increase of $4,538.0 million to the OAS pension, Guaranteed Income Supplement (GIS) and Allowances, mainly explained by an expected increased number of OAS pensioners and GIS recipients due to the aging population, and expected increases to average monthly amounts paid, resulting mainly from the indexation of benefits.
• An increase of $187.6 million for service delivery to the public on behalf of other government departments under the Department of Employment and Social Development Act, which is mainly due to a new 2‑year agreement with Health Canada for the Canadian Dental Care Plan.
• An increase of $40.0 million to Canada Education Savings Grants and to Canada Learning Bonds, mainly due to payments and the number of beneficiaries returning to pre-pandemic levels in 2024.
• These increases are offset by the following decreases:
  • A decrease of $324.3 million to the Canada Student Financial Assistance Program and Canada Apprentice Loans, mainly due to decreased expected expenses for the Repayment Assistance Plan and alternative payments to non-participating provinces and territories due to the permanent elimination of interests on Canada Student Loans announced in the Fall Economic Statement 2022 and Budget 2023.
  • A decrease of $168.4 million to Canada Disability Savings Grants and Bonds, mainly due to a reduction in average contributions from beneficiaries as well as a larger proportion of new Registered Disability Savings Plans being opened by beneficiaries with higher income, and therefore eligible for lower grant amounts and/or ineligible for bonds.
  • A decrease of $9.7 million for other items.

Voted grants and contributions (Vote 5) are expected to reach $10,185.6 million by March 31, 2025, an increase of $293.3 million from the Main Estimates for the year ending March 31, 2024 mainly attributable to an increase to payments to provinces and territories for Early Learning and Child Care, partly offset by a decrease in funding related to the Sectoral Workforce Solutions Program, the Apprenticeship Service, Skills for Success, the Youth Employment and Skills Strategy and the Social Finance Fund.

In addition, the Department plans to spend $1,296.7 million in net operating expenditures (Vote 1) in the year ending March 31, 2025, representing an increase of $23.4 million from previous year's total Main Estimates of $1,273.3 million. The increase is mainly related to compensation adjustments for new collective agreements.

Figures in the 2024‑25 Main Estimates include a reduction of $40.5 million for the Refocusing Government Spending exercise announced in the Budget 2023.

Regarding non-budgetary loans, there is a net increase in authorities of $1,048.4 million from the Main Estimates for the year ending March 31, 2024, mainly due increased Canada Student Loans disbursements related to the temporary measure announced in the Budget 2023, which proposed to raise the Canada Student Loan limit from $210 to $300 per week for the 2023‑24 academic year, and to lower Canada Student Loans repayments, mainly due to the economic situation and the permanent elimination of interests accrued, which can allow some borrowers to elect to pay off other debts with higher interest rates.

Key Quotes

Nil

Additional information [text not in original document]

Descriptive text: Figure 3

• ESDC has 317 Service Canada Centres
• ESDC has 247 Scheduled Outreach sites
• ESDC has 19 Service Canada centres - Passport Services
• ESDC has 15 Service Delivery Partner sites

Service Canada's in-person service network as of December 11, 2023.

As of April 1, 2024, ESDC's total number of Full-Time Equivalents (FTE) is 36,543.

For fiscal year 2024‑25, ESDC has reductions of $40.5 million related to the Refocusing Government Spending exercise. Reductions are as follow:

• Grants and Contributions = $24.3 million
• Travel and Professional Services = $8.0 million
• Operating expenses = $8.2 million