HUMA Committee briefing binder: Appearance by the Minister of Job and Families – March 26, 2026

Official title: Appearance by: Minister of Job and Families. Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA). Subject: Cúram Software and the processing of Old Age Security (OAS). Date: March 26, 2026 - 8:15 am to 9:15 am

On this page

• 1. Opening remarks
• 2. Scenario Note
• 3. Seniors Poverty
• 4. The Old Age Security Pension
• 5. Old Age Security (Bill C-261)
• 6. Old Age Security - Service Delivery Modernization
• 7. Employment Insurance on Benefits Delivery Modernization
• 8. Response to information requested by HUMA - Processing errors with Curàm
• 9. The Case of SAAQclic
• 10. Benefits Delivery Modernization - Costing Overview.
• 11. Benefits Delivery Modernization Professional Services Costs

1. Opening remarks

Speaking Notes for The Honourable Patty Hajdu, Minister of Jobs and Families and Minister Responsible for the Federal Economic Development Agency for Northern Ontario for an appearance before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) - House of Commons - March 26, 2026

Thank you, Mr. Chair.

I am pleased to be here to speak about the Benefits Delivery Modernization Programme and specifically address programme costs, how the new system is working and the timeliness and accuracy of payments.

As committee members know, we've been investing in Benefits Delivery Modernization (or BDM) because Canadians deserve functional, responsive, and dependable services.

In 2010, the Auditor General issued a report titled "Aging Information Technology Systems," which noted a high risk that IT infrastructure would not be able to support the delivery of core programs.

This committee's study of that report said, "it is essential that departments properly prepare for and manage the maintenance or upgrading of their aging IT systems."

We took action to ensure the millions of Canadians receiving these critical benefits would be assured of receiving payments accurately and on time.

When we began this process in 2017, OAS benefits were delivered on legacy technology systems that were practically the age of the clients being served.

The programming languages underpinning this country's major benefits programs are old and obsolete. Maintaining them has required more than $1 billion over the past decade.

This is not sustainable.

The BDM Programme is a massive undertaking but also immensely important.

Any interruption could significantly affect recipients' abilities to meet their daily needs, such as buying food or paying rent.

Doing the job correctly has required significant investment and, yet, costs have not exploded; costs have not even surged.

The recently completed Old Age Security on Benefits Delivery Modernization project was delivered as planned and under budget.

Between 2017 and December 31, 2025, the Government has spent $1.8 billion on the Benefits Delivery Modernization Programme.

What has evolved is the estimate of the total cost to complete this once‑in‑a‑generation transformation.

The programme's long‑term estimate of $6.6 billion now covers the completion of four main projects by 2031: the full transformation of benefits delivery for all of OAS, EI, and CPP, and modernizing all of ESDC's call centres, 14 in total.

The myriad costs could not possibly have been known at the outset. This was reinforced in the 2023 OAG report where it was stated that estimates were "well below industry average" while acknowledging the department's commitment to revise estimates as a better understanding of the work was undertaken.

Current estimates have been refined over time due to three main factors:

• we have gained a greater understanding of the complexity of unraveling 60-year-old systems and the work required
• increased cyber security threats - the cyber security landscape and risks have certainly evolved since 2017, and we need to ensure that the solutions we are building today are ready to address these threats
• the scope of the programme has expanded. For example, in 2017, the migration of the 14 different call centres was not part of the original scope

Now, about the new platform: Cúram is one of the most widely used systems for delivering social benefit programs globally.

It is designed specifically for complex benefits delivery and supports 970 social programs in 12 countries.

Our procurement strategy conforms to Treasury Board and PSPC guidelines.

Expertise in cybersecurity and data architecture is scarce and no organization, public or private, can complete a programme like this alone. It must be a partnership.

But every contract includes clear deliverables, financial caps and phased work. All contracts are competitively awarded and proactively disclosed in accordance with the rules in place.

We are fully transparent. We follow standard practices and the BDM programme is subject to rigorous oversight by central agencies and the Auditor General.

Finally, allow me to address the claim that the new platform is causing payment delays. This isn't true.

The new system is working as intended.

Last year, 7.4 million OAS clients were migrated to the new platform. Every one of those clients continued receiving their payments - on time, no disruption.

As of last month, the new system had issued 89.6 million payments to more than 7.7 million clients, with a value of $84.7 billion in benefits.

Some seniors have waited longer than they should, but these delays were not technical issues.

These were operational issues for files largely involving new applications or changes to payments, and the department has work underway to improve processing times.

In fact, the new system is helping reduce inventories of new applications more efficiently than the legacy platforms ever could. Additionally, it is much more efficiently helping us preventatively counter fraud and errors compared to our legacy system.

The number of clients waiting beyond their first month has already begun to decline. I last told the committee that 85,000 OAS clients had not received payment within their first month of eligibility. Today it stands at 69,180.

Closing

Mr. Chair, the new platform is working. This transformation has been undertaken in a responsible and transparent manner in a series of well-planned and prudent phases within the appropriated budget.

Thank you.

We look forward to answering your questions.

-30-

2. Scenario Note

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA), Minister of Jobs and Families on Business Delivery Modernization / Old Age Security / Cúram, March 26, 2026 - 8:15 a.m. - 9:15 a.m.

Overview

• On Thursday, February 5, 2026, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities adopted the following motion "That the committee invite the following individuals to testify for two hours each:
  • Ms. Patty Hajdu, Minister of Employment and Families, accompanied by officials
  • Mr. Joël Lightbound, Minister of Government Transformation, Public Works, and Procurement; To answer the committee's questions about the Curàm software with the goal of developing a rapid and effective action plan to resolve problems in the processing of the Old Age Security (OAS) benefit claims and to provide an update on past and future cost overruns; and that the ministers testify no later than March 12, 2026."
• Further to this matter, on February 12, 2026, HUMA ordered the following Production of Papers: "Considering that the Minister informed the House that 85,000 people have been affected by processing errors caused by the Curàm software; That, pursuant to Standing Order 108(1)(a), the committee order the Department of Employment and Families to provide the number of cases, broken down by region, no later than the day the Minister appears before the committee." The response was submitted to the HUMA Clerk on March 12, 2026 (see Tab 10).
• While opposition HUMA members have been mainly preoccupied with the impact of the changes on service delivery, ensuring that seniors can access their benefits seamlessly, opposition members of the Public Accounts Committee (PACP) have criticized the contracting, costing and final price tag of the Benefits Delivery Modernization Programme (BDM).
• PACP tabled its Report 1 - The Benefits Delivery Modernization Programme which focussed on detailed cost estimates, implementation scheduled, risks, contingency plan and benefits realization plan. A Government Response was presented to the House on February 5, 2026. On March 11, 2026, PACP adopted a motion that "the committee report to the House to request that the government establish a public and independent inquiry into cost overruns on IT contracts, including the Phoenix pay system, ArriveCAN and Benefits Delivery Modernization programme." Bloc Québécois MPs have likened the escalating costs to the SAAQcliq contracting scandal.
• On March 12, 2026, ESDC officials gave a briefing to the parliamentary critics from the Conservative Party and the Bloc Québécois on the BDM Programme.
• The Minister previously appeared before HUMA on February 5, 2026, on the subject matter of Bill C-15, Budget 2025 Implementation Act, No. 1. Since then, the Committee has mainly been seized with its study of Bill C-222, An Act to amend the Employment Insurance Act and the Canada Labour Code (death of a child). Bill C-20, Build Canada Homes Act, was referred to HUMA on March 13, 2026, but that examination has not yet begun.

Committee Proceedings

• During this appearance, five minutes will be provided to deliver opening remarks for each minister. Following that, questioning will begin:
  • the first round of questions will give six minutes each to the CPC, LPC and BQ, in that order
  • the second (and subsequent rounds) of questions allocate five minutes to the CPC and LPC, two and a half minutes to the BQ, and then five minutes to the CPC and the LPC
• The Minister of Government Transformation, Public Works and Procurement will be at the table, joined by his officials.
• Senior officials in attendance will be:
  • Paul Thompson, Deputy Minister of Employment and Social Development
  • Cliff Groen, Associate Deputy Minister of Employment and Social Development and Chief Operating Officer for Service Canada
  • Arianne Reza, Deputy Minister of Public Services and Procurement
  • Joëlle Paquette, Acting Associate Assistant Deputy Minister, Procurement Branch

3. Seniors Poverty

Issue

How is the Government of Canada helping address poverty and food insecurity among seniors?

Background

• The Government has made significant investments in social programs and income supports that support the wellbeing of seniors and help to reduce poverty among seniors, including by:
  • restoring the age of eligibility from 67 to 65 for both the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS), which helped 100,000 seniors aged 65 and 66 avoid falling into poverty
  • increasing the maximum GIS benefit for single seniors by 10% in 2016, improving the financial security of close to 900,000 seniors who rely almost exclusively on the OAS pension and the GIS. This provided up to $1,150 in additional benefits in 2023, indexed to inflation every quarter
  • raising the OAS pension by 10 per cent for seniors 75 years and older, which provided more than $800 in new support to full pensioners over the first year, and increased benefits for more than 3 million seniors
  • indexing OAS benefits quarterly to keep pace with the rising cost of living
  • implementing the Canadian Dental Care Plan, which provides dental coverage to uninsured Canadians with annual family incomes of less than $90,000.

Key Facts

• The latest data from the Canadian Income Survey (CIS) shows that the poverty rate for seniors was 5.5% in 2023 as measured by Canada's Official Poverty Line (the Market Basket Measure, using the 2023-base), compared to 6.3% in 2022. In 2023, seniors' poverty in Canada was 26.2% lower than the level observed in 2015. The number of seniors living in poverty in Canada in 2023 was estimated at 408,000.
  • In 2023, the poverty rate for senior women (5.7%) was slightly higher than for senior men (5.3%).
  • Single seniors continue to have higher poverty rates than those living in families. The poverty rate for single seniors was 12.5% in 2023, while the poverty rate for seniors living in families was 3.0%.
  • Seniors with disabilities had higher poverty rates (6.9%), compared to seniors without disabilities (3.9%).
  • In 2023, using the 2018-base MBM (the latest data available), seniors aged 75 and older had a lower poverty rate (3.8%) than those aged 65-74 (5.9%). Both rates declined from 2015, when they were 7.6% and 6.8% respectively.
  • In 2023, seniors from vulnerable groups such as Indigenous seniors living off reserve (7.9%), immigrant seniors (7.0%), and visible minority seniors (8.7%) had relatively higher poverty rates than the overall senior population.
• According to the 2023 CIS, 9.0% of Canadian seniors experienced food insecurity in 2023 (measured as moderate or severe food insecurity), significantly lower than the national average (19.1%). Yet, this rate was up from 8.0% in 2022 and 6.3% in 2021
• According to Food Banks Canada, a national charitable organization representing the food bank community across Canada, there were nearly 2.2 million visits to food banks in March 2025, an all-time high. 8.3% of food bank visits were by seniors in March 2025, up from 6.8% in March 2019. Senior food bank clients are part of a more recent increase in users who primarily rely on government pensions that have not kept pace with expenses and are affected by rising food and housing costs.

Key Messages

• Our Government is committed to continuing to build a strong economy that works for everyone by bringing down costs for Canadians - including seniors - and helping them to get ahead.
• To support seniors, the Government has made significant investments, including increasing the maximum GIS for single seniors, and increasing the OAS pension for seniors 75 and older. OAS benefits are also indexed quarterly to help keep up with the rising cost of living.
• We are also making historic investments in key initiatives that support seniors'
• well-being, such as Canada's Housing Plan and the Canadian Dental Care Plan.
• Additional measures introduced in Budget 2025 include significant and decisive actions to improve affordability and promote income inequality for all Canadians, including seniors. These include:
  • introduction of a temporary, non-refundable Top-Up Tax Credit for individuals whose non-refundable credits exceed the first tax bracket and who could owe more tax due to the reduction of the first personal tax rate and related credit rate
  • introduction of legislation to reduce taxes for nearly 22 million Canadians, saving a two-income family up to $840 a year
  • implementation of Automatic Federal Benefits, starting in the 2026 tax year, to help Canadians access benefits more easily. This measure is expected to benefit 5.5 million low-income Canadians by the 2028 tax year and will strengthen Canada's social safety net
  • build Canada Homes to significantly increase the supply of affordable and non-market housing
• In January 2026, the government introduced the new Canada Groceries and Essentials Benefit, effectively replacing the Goods and Services Tax (GST) Credit, and increasing its amount by 25% for five years beginning in July 2026, as well as a one-time payment, equivalent to a 50% increase this year. The new Canada Groceries and Essentials Benefit will provide additional, significant support for more than 12 million Canadians, including seniors.
• Our poverty reduction efforts are working. The poverty rate among seniors stood at 5.5% in 2023, which represents a 26.2% reduction in poverty among seniors since 2015.
• We will continue to stand with seniors who are feeling the impact of higher costs and ensure they have the support they need to meet their basic needs and live with dignity.

4. The Old Age Security Pension

Issue

How is the Old Age Security (OAS) pension supporting seniors?

Background

• The OAS program plays a significant role in providing income security to Canadians in their senior years. Its objective is to provide a minimum level of income to seniors and contribute to their income replacement in retirement
• The benefits under the OAS program include:
  • the quasi-universal OAS pension, which is paid to all seniors aged 65 or over who meet the residence and legal status requirements
  • the Guaranteed Income Supplement (GIS) which provides additional support for OAS pensioners who have little or no income other than the OAS pension
  • the Allowances for low-income Canadians aged 60 to 64 who are the spouses or common-law partners of GIS recipients, or who are widows or widowers
• To ensure that they retain their value over time, OAS benefits are reviewed four times per year (in January, April, July and October) in accordance with changes in the Consumer Price Index (CPI). The CPI measures the price of a collection of foundational goods and services, such as food, shelter, gas and clothing, commonly purchased by Canadian households
• Quarterly indexation ensures that OAS benefits are increased quickly when prices go up. In addition, the Old Age Security Act contains a guarantee ensuring that benefits can never be reduced, even in the event of a decline in the CPI

Key facts

• In 2024 to 2025, $80.2 billion was paid in OAS program benefits (OAS, GIS and Allowance) to 7.5 million beneficiaries. This included $60.6 billion in OAS pension benefits to 7.4 million seniors and $18.9 billion in GIS benefits to 2.5 million low-income OAS pensioners
• In January 2026, a senior aged 65 to 74 can receive a maximum monthly OAS pension benefit of $742.31, while a senior aged 75 and over can receive a maximum monthly benefit of $816.54
• For the January to March 2026 quarter, OAS pension benefits increased by 0.3% compared to the October to December 2025 quarter, for a cumulative increase of 2.0% over the past year, from January 2025 to January 2026
• In 2024 to 2025, 87.5% of OAS benefits were paid within the first month of entitlement, compared to 86.6% in 2023 to 2024 and 87.6% in 2022 to 2023. The service standard target is at least 90%
• In March 2025, the OAS program successfully migrated from its 60-year-old system to a new and modern system platform called Cúram
• Service Canada will continue to modernize OAS service delivery through a digital first approach and will continue to expand automation and the use of new and emerging technology such as Artificial Intelligence (AI) to enhance service to Canadians

Key messages

• The Government of Canada is committed to strengthening public pensions and improving the lives of Canada's seniors
• Since 2016, the Government has implemented several enhancements to the OAS pension to improve the financial security of Canadian seniors
• In 2016, the Government restored the age of eligibility for the OAS pension to 65, preventing thousands of future 65- and 66-years olds from falling into poverty
• In July 2022, the OAS pension was increased by 10% for seniors aged 75 and over to provide additional support to seniors as they age
• The Government is also helping low-income OAS pensioners through enhancements to the GIS. In 2016, the Supplement amount for the lowest income single seniors was increased by 10%, providing up to almost $1,150 in additional benefits in 2023, indexed to inflation every quarter. In 2020, the GIS Earnings Exemption was enhanced to further assist low-income seniors who work
• Since 2025, the Government is focused on bringing down costs, keeping communities safe, diversifying trade, and building one Canadian economy. It has already passed legislation to cut taxes for the middle class and first-time home buyers. The Government will continue to review measures to make life more affordable for Canadians
• With seniors among the fastest-growing segment of the Canadian population, the government is committed to ensuring seniors receive the level of service they have come to expect while modernizing for the future
• As a Department, Employment and Social Development Canada (ESDC) and Service Canada are committed to ensuring continued timely service delivery to seniors by simplifying communications to clients, streamlining processes, enhancing the client experience and increasing efficiencies through its digital first delivery focus and the use of automation and AI

Questions and answers

Q1. How is entitlement to the OAS pension determined?

A1. To receive an OAS pension, a person must be at least 65 years of age, meet the residence requirements, and be lawfully in Canada on the day their application is approved.

The amount of a person's OAS pension is determined by how long they have resided in Canada:

• to qualify for a full OAS pension, a person must have lived in Canada for at least 40 years after the age of 18
• a person is eligible for a partial OAS pension if they have lived in Canada between 10 and 39 years after the age of 18. The partial pension is paid at the rate of 1 to 40 of the full amount for each year of residence in Canada after 18 years of age

Prorating the OAS pension based on the number of years of residence in Canada provides a good compromise between a person's contribution to Canadian society, and the right to a lifelong pension.

Q2. Why is the OAS pension higher for seniors aged 75 and over?

A2. In July 2022, the OAS pension was permanently increased by 10% for seniors aged 75 and over.

This measure was designed to help address the increased financial vulnerability that seniors face as they age.

Seniors are living longer than ever before. With increasing age, seniors tend to have lower incomes and often face higher health-related expenses because of the onset of illness or disability.

This financial vulnerability is further compounded by fewer opportunities to supplement income with paid work, and the risk of outliving personal savings.

Q3. The leader of the opposition party, the Honourable Pierre Poilievre, has stated that seniors are being affected by tariffs. What is the Government doing to reduce costs for seniors?

A3. The Government is committed to strengthening public pensions and improving the lives of Canada's seniors.

To keep pace with the cost of living, OAS benefits are reviewed four times per year (in January, April, July and October) in accordance with changes in the CPI. Quarterly indexation allows for faster benefit increases when prices rise. In the event of a decline in the CPI, the Old Age Security Act guarantees that OAS benefit amounts stay at the same level as during the previous quarter.

Because the OAS pension is indexed quarterly, benefit increases may look small. However, when the change in the inflation rate is taken into consideration over the course of a year, the increase is actually larger. For the January to March 2026 quarter, OAS benefits have increased by 0.3% compared to the October to December 2026 quarter, for a cumulative increase of 2.0% over the past year, from January 2025 to January 2026.

Moreover, since 2016, the Government has undertaken several measures to improve the financial security of low-income seniors.

• In 2016, the Government restored the age of eligibility for the OAS pension and the GIS to 65, preventing an estimated 100,000 future 65- and 66-years olds from falling into poverty
• The Government also increased the maximum GIS benefit for single seniors by 10%, providing up to almost $1,150 in additional benefits in 2023, indexed to inflation every quarter, and the GIS Earnings Exemption was enhanced to further assist low-income seniors who work
• In July 2022, the OAS pension was increased by 10% for seniors aged 75 and over to provide additional support to seniors as they age

Since 2025, the Government is focused on bringing down costs, keeping communities safe, diversifying trade, and building one Canadian economy. It has already passed legislation to cut taxes for the middle class and first-time home buyers. The Government will continue to review measures to make life more affordable for Canadians.

Q4. On October 21, 2025, the National Post published an article by Dr. Paul Kershaw, founder of Generation Squeeze, entitled "Liberals urged to cut Old Age Security spending in upcoming budget". As in similar earlier articles, Dr. Kershaw is calling for OAS pension payments to be reduced for retired couples with incomes over $100,000, arguing that this proposal would save Canadians $7 billion per year, which would be enough to lift most of the approximately 400,000 seniors living in poverty to an adequate standard of living. Is the Government considering changes to the phase-out design of the Old Age Security Recovery Tax?

A4. Employment and Social Development Canada (ESDC) is aware of the proposal that has been suggested by Generation Squeeze.

As the OAS Recovery Tax is a measure that is legislated under the Income Tax Act, its design parameters fall within the purview of the Honourable François-Philippe Champagne, Minister of Finance and National Revenue.

Q5. When will the Government deliver on its commitment to temporarily increase the GIS by 5% for one year?

A5. The Government's 2025 electoral platform included a commitment to "give a temporary income boost to low‑income seniors by increasing the GIS by 5%, providing up to an additional $652 in income per year, tax free".

While the proposed temporary increase to the GIS was not included in the 2025 Federal Budget, this remains a priority for the Government of Canada. Once final decisions have been made, details will be made public.

5. Old Age Security (Bill C-261)

Issue

What does Private Member's Bill C-261 propose?

Background

• On February 9, 2026, MP Claude DeBellefeuille (Beauharnois-Salaberry-Soulanges-Huntingdon) tabled Bill C-261, An Act to amend the Old Age Security Act (amount of full pension), in the House of Commons. The Bill proposes two sets of amendments to the Old Age Security Act (OAS Act):
  1. a 10% increase to the full monthly Old Age Security (OAS) pension for seniors aged 65 to 74, effective July 2025; and
  2. an increase to the amount of the full Guaranteed Income Supplement (GIS) Earnings Exemption from $5,000 to $6,500, and an extension to the partial earnings exemption from the next $10,000 of qualifying work income to the next $13,000 of qualifying work income, effective July 2025
• This Private Member's Bill (PMB) was originally tabled in the previous session as Bill C-319. It passed committee review at the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) and had reached Report Stage in the House of Commons. However, it ultimately expired when the 44th Parliament was dissolved on March 23, 2025

10% increase to the OAS pension for seniors 65 to 74

• In July 2022, the OAS pension was permanently increased by 10% for seniors aged 75 and over. This increase was introduced because seniors' incomes typically decline as they age, while their health-related expenses often rise due to illness or disability. This increased vulnerability is further compounded by a reduced ability to work, the risk of outliving personal savings and the risk of becoming a widow or widower. This measure was put into place to help make life more affordable for Canadians as they age and has benefitted over 3 million OAS pensioners aged 75 and over in 2023 to 2024

GIS Earnings Exemption

• The GIS Earnings Exemption is a provision under the OAS Act which allows GIS recipients who wish to remain active in the labour market to exempt a portion of their earnings from the calculation of their GIS benefit, helping them keep more of what they earn. Since July 2020, a GIS recipient can fully exempt up to $5,000 of their annual employment and/or self-employment earnings, as well as a 50% exemption of their next $10,000 of earnings. This provides a total exemption of $10,000 of a person's first $15,000 of employment and self-employment earnings. Bill C-261's proposed amendments to the GIS Earnings Exemption would increase the maximum exemption amounts from $10,000 to $13,000 for single seniors, and from $20,000 to $26,000 for senior couples where both members work

Key facts

• In 2024 to 2025, $80.2 billion was paid in OAS benefits to 7.5 million beneficiaries. This included $60.6 billion in OAS pension benefits to 7.4 million seniors and $18.9 billion in GIS benefits to 2.5 million low-income OAS pensioners
• When originally costed as Bill C-319, the Chief Actuary estimated that Bill's proposed increase to the OAS pension would have provided higher benefits for 4.1 million OAS pensioners aged 65 to 74 in the first full year of implementation, at a cost of $3.24 billion. These costs would increase over time with aging demographics and the quarterly indexation of OAS program benefits
• The Chief Actuary further estimated that C-319's proposed enhancement to the GIS Earnings Exemption would have cost approximately $235 million in the first full year of implementation. These costs would increase over time with population aging and benefit indexation
• In total, the Chief Actuary estimated that C-319's proposed amendments to the OAS Act would increase OAS program costs by $19.76 billion over the first six years, with costs increasing significantly over time
• Updated costing is being prepared by the Chief Actuary

Key messages

• On February 9, 2026, the Bloc Québécois put forward Private Member Bill C-261, which primarily proposes to increase the amount of the full monthly OAS pension for seniors aged 65 to 74 by 10%
• Implementing this Bill would undermine the policy rationale for the targeted 10% increase to the OAS pension introduced in July 2022 for seniors aged 75 and over. These older seniors face greater financial vulnerability as they tend to have lower incomes and higher health-related expenses
• Creating a single OAS pension rate for all pensioners, regardless of age, would mean that the OAS program would no longer reflect the differing needs and economic realities faced by these two age groups

6. Old Age Security - Service Delivery Modernization

Issue

What is the status of Old Age Security (OAS) service delivery results and Benefits Delivery Modernization (BDM)?

Background

• OAS is one of the Government's largest programs, currently providing 7.7 million seniors with pension benefits every month, many of whom rely on OAS as their primary or only source of income.

• Rising life expectancy, increased international mobility, and a growing senior population have significantly increased the complexity and volume of OAS workload, including applications, revisions, and appeals.

• The first OAS on BDM release on the new, more modern platform (Cúram) occurred on June 12, 2023, when 600,000 OAS Foreign Benefits clients were migrated to the modern system.

• On March 17, 2025, all remaining 7.4 million OAS clients were migrated to the new benefits delivery system. Since then, the new Cúram system is operating correctly and, to date, 89.6 million payments have been issued, with a value of nearly $84.7 billion.

Key Facts

• In 2025-2026, as of February 2026, 75.2% of OAS benefits were paid in the client's first month of entitlement, as compared to 87.3% for the same period in 2024-2025 (target is 90%).

• In 2025-226, as of the week ending March 15, 2026, the Pensions Call Centre has answered 2.88 million calls with an average wait time of 15 minutes.

• The overall inventory of new applications has decreased by 26% from 249,922 to 184,295 between September 30, 2025, and February 28, 2026.
• Clients waiting beyond their first month of entitlement for their first benefit payments has been reduced from approximately 85,000 in January 2026, and is now approximately 69,000 applications as of February 28, 2026.

• Employees continue to receive extensive training and real‑time support, including through the Department's first generative AI‑powered chatbot, which enhances productivity and strengthens service delivery during this major system transition.

Key Messages

• Service Canada is committed to supporting seniors through timely delivery of OAS benefits, including the Guaranteed Income Supplement (GIS). There are 7.7 million Canadians currently receiving their OAS benefit payments accurately and on time, every month.

• Following migration, the Department continues to enhance and refine the new OAS system to enable ongoing process simplification and achievement of efficiencies.

• Some OAS applications may take longer to process for a variety of reasons, such as missing or additional information needed from clients, and this can result in late initial payment of their benefit. This was also the case before the transition to the new platform.

• Service Canada has implemented an action plan to address OAS benefits service delivery delays for seniors who have waited more than a month to receive their first payment. As a result, the number of new applications waiting to be processed has decreased by 26% since September 2025.

• Seniors experiencing delays are supported through multiple channels, including a dedicated call centre, mobile outreach services, and automatic enrolment for eligible clients, ensuring timely access to benefits.

• The migration to the modern benefits platform is already delivering results, including the best GIS renewal outcomes in program history and new online self‑service options that make it easier for Canadians to apply and report life events.

• The system is also more efficiently helping prevent fraud and error compared to legacy.

7. Employment Insurance on Benefits Delivery Modernization

Issue

What is Employment Insurance (EI) on Benefits Delivery Modernization (BDM)?

Background

• The EI program is one of the pillars of Canada's social safety net, providing vital income support to workers when they need it most. The Department makes every effort to serve all individuals fairly and in a timely manner.

• The EI legacy IT system is over 50 years old and is comprised of over 150 bespoke applications. Its complexity and rigidity hinder rapid policy and legislative updates, and it cannot meet modern digital service expectations.

Key Facts

• For 2025-2026, as of March 6, 2025, there have been 3.26M EI applications received, and 2.40M EI claims have been approved for 2.75M recipients.

• EI on BDM will enhance client experience, strengthen integrity controls -to reduce errors, omissions, and fraud-, improve payment accuracy, and boost efficiency through a new benefits delivery platform.
• The new EI Benefits Estimator, launched in October 2024, is already helping Canadians navigate job loss or major life events with greater confidence, generating over 1.6 million estimates from 1.8 million visits as of January 2026.

Key Messages

• EI on BDM will transform how Canadians access EI by improving client experience, expanding digital tools, and strengthening integrity controls, building on the successful migration of Old Age Security to the new platform.

• Employment Insurance service delivery modernization will be rolled out in phases from 2025 to 2028, which began with the first release of Compassionate Care Benefits for the self-employed in November 2025.

• New clients will be served on the new platform if they apply after their benefit is onboarded by the time their application is processed, whereas existing clients will remain on legacy systems until full migration of EI onto BDM in 2028.

• Additional features and enhancements will be introduced throughout the life of the EI on BDM project. This iterative, agile approach to deployment reduces risk and enables an improved user experience.

8. Response to information requested by HUMA - Processing errors with Curàm

Motion

Considering that the Minister informed the House that 85,000 people have been affected by processing errors caused by the Curàm software;

That, pursuant to Standing Order 108(1)(a), the committee order the Department of Employment and Families to provide the number of cases, broken down by region, no later than the day the Minister appears before the committee.

Response

• Please note that these service delivery issues are not related to the implementation of the new Cúram system. Every month, the new platform delivers Old Age Security (OAS) payments to over 7.7 million clients, accurately and on time.
• As of January 26, 2026, there were 85,537 OAS initial applications that were past due, having not been processed before the start of their earliest entitlement or, for late appliers, within 60 days. Service Canada is focused on reducing the number of older applications and getting clients past their entitlement date into pay.
• We are seeing meaningful progress. As of February 28, 2026, there were 69,180 OAS initial applications that were past due.
• Service Canada distributes its OAS workload across four regions, covering the whole of Canada. The approximate regional breakdown of the OAS initial applications that were past due is as follows:
  • pending Past Due Applications as of January 26, 2026:
    • Atlantic Region: 3,038
    • Quebec Region: 11,535
    • Ontario Region: 34,544
    • Western and Territories Region: 35,012
    • Region Pending:1,408
  • "Region Pending" is a separate work queue that contains files with incomplete information (for example, clients that have not provided their correct province or territory of residence). While these can't be broken down by region at this time, these applications will still be assigned to officers for action the same as all other client files.
    • Total: 85,537
• pending Past Due Applications as of February 28, 2026:
  • Atlantic Region: 1,364
  • Quebec Region: 9,222
  • Ontario Region: 24,496
  • Western and Territories Region: 31,515
  • Region Pending^: 2,583
  • Total: 69,180

9. The Case of SAAQclic

Issue

Bloc québécois MPs have regularly tried to establish a link between the issues they associate to Cúram with the case of SAAQclic and have called for the establishment of a public inquiry.

Background

• The Société de l'assurance automobile du Québec (SAAQ) is a state-owned enterprise responsible for licensing drivers and vehicles and providing public automobile insurance to all road accident victims. The SAAQ's board of directors is appointed by the government.
• In 2011, the SAAQ designs a sustainability plan to address the obsolescence of its computer systems. It introduces a comprehensive multi-phase plan worth $364 million over an 11-year period.
• On 20 February 2023, a new SAAQclic portal, designed to support the issuing of driver's licences and registration certificates, opens to all SAAQ customers. The system is either unavailable or slow. The situation rapidly escalates. Businesses, unable to perform certain types of transactions on SAAQclic, redirect their clients to SAAQ service outlets. Clients unable to make online transactions also turn up in person. The situation deteriorates to the point where the SAAQ must call in the police to prevent queues from degenerating into riots. The consequences are major, ranging from the slow-down of work tools to unjustified arrests and detentions due to the SAAQ system's inaccessibility to police services.
• The SAAQ now estimates that the program will cost approximately $955 million over a 10-year period, including both the contract with the outside providers and its internal costs. However, these total costs cover a technological solution of lesser scope than originally planned.
• In March 2025, in response to public and political pressure, the Québec government establishes a Public Inquiry into the management of the project (known as the Commission Gallant). Its report was tabled in February 2026. This note is comprised of extracts from this report.

Key Facts

• In its findings, the Commission identifies two main factors for the failure. First, the program was too big, too bold and needed to be done too fast:
  • the approach taken for the program's design significantly increased its risk of failure. Its program was colossal, in both preparation and execution. It involved a contract with an initial cost of $458 million, a 10-year duration, and three major deliveries. The SAAQ tied itself to a single provider for many years, giving itself few off-ramps in case of disagreement
  • further, the SAAQ used this already risky program as an innovation lab. Testing many new concepts within the same megaproject inevitably hiked the risk level. An unprecedented tendering process involved a succession of steps that eliminated all competition between software publishers before the financial envelopes were opened
  • the SAAQ made other decisions that further increased the program's level of risk. Notably, it imposed a compressed implementation schedule, and chose a "big bang" approach, i.e. the new system goes live in a single step over a short time instead of a progressive rollout alongside the old systems
• The second factor was an excessively centralized governance:
  • the governance of the program lacked functioning checks and balances. The SAAQ benefited from reduced regulatory oversight, granted at the outset of the program by the government at the request of the SAAQ. This limited the usual government controls over a largescale program. Further, many key positions were held by a single person, which is incompatible with a healthy control environment
  • the program's control plan was unable to counterbalance this individual's strong personality preventing many bodies within the SAAQ to fully perform their oversight and control mandates
• The Commission also found that, for much of the program's duration, the SAAQ lied to parliamentarians, ministers and their staff about the program's implementation status. It submitted multiple misleading reports to the State authorities to conceal the program's cost overruns.

Key Messages

• BDM has a multilayered oversight structure that ensures strong checks and balances, that validates progress against objectives:
  • Independent audit assurance
  • Interdepartmental representation
  • Arms-length ESDC Audit and Review team conducting continuous assurance activities
  • Office of the Auditor General - 2023 Report
  • Regular reporting and appearances before Parliamentary Committees
  • Treasury Board Secretariat oversight list since 2017
• All contracts are challenged through governance and approved within the delegations set by Treasury Board and further executed on by Public Services and Procurement Canada, to confirm that the right set of work is being procured from the qualified vendors to achieve the intended outcomes.
• ESDC has already successfully migrated benefits onto the new BDM platform:
  • in March 2025, OAS migrated 7.4 million clients to the new platform. There are currently 7.7 million seniors receiving their OAS pension benefits on time, every month, using this new system
  • in November 2025, the first EI benefit was successfully migrated onto the new platform - the EI Self-Employed Compassionate Care benefit. The first client received their EI payment from this system in December 2025

10. Benefits Delivery Modernization - Costing Overview.

Issue

Overview of Benefits Delivery Modernization (BDM) Programme Costing

Background

• Canada's social programs have grown increasingly complex over the past several decades, but aging benefit delivery systems limit policy agility and operational efficiency; maintaining these legacy platforms has cost over $1 billion in the past decade and would continue to escalate without modernization.
• The BDM Programme is modernizing outdated systems that deliver a growing amount-over $160 billion each year-in Old Age Security (OAS), Employment Insurance (EI), and Canada Pension Plan (CPP) benefits to Canadians.
• Although the estimated cost of $6.6 billion is a significant investment, it is well worth the cost and emphasizes the Government's priority in ensuring Canadians continue to receive these benefits.

Key Facts

• The current Programme Authority for BDM, which is the estimated total cost from launch in 2017 through to the projected completion in 2031, is $6.6 billion. This Programme Authority does not denote expenditures.
• Once completed, the BDM platform will deliver OAS, EI, and CPP benefits to more than 17 million clients annually, meaning an approximate investment of $388 per client in 2026 dollars ($6.6 billion divided by 17 million clients).
• As a pathfinder initiative with few comparable government precedents, BDM collaborates closely with central agencies and industry experts to mitigate risk, strengthen planning, and ensure accurate costing.
• BDM funding is managed through a Special Purpose Allotment that provides dedicated oversight, while competitive procurement, continuous expenditure monitoring, and embedded costing expertise from the Office of the Comptroller General help validate, refine, and update cost estimates as system complexity and requirements become better understood.

Key Messages

• In 2017, the preliminary planning assumption for BDM was $1.75 billion. This was an estimate based on early assumptions using previous projects, both internal to ESDC and from other jurisdictions, noting that BDM was operating as a pathfinder at unprecedented scale and that this would continue to be refined.
• Today, the estimate is $6.6 billion, which is the estimated total cost of BDM from launch in 2017 through to completion by 2031.This is not the amount spent.
• As of December 31, 2025 the amount spent to date on BDM was $1.8 billion.
• The estimate has evolved from early planning assumptions as the Department gained a clearer understanding of the complexity of replacing decades‑old legacy systems at unprecedented scale, as well as increased cyber security threats, and an expanded scope of the BDM Programme - for example, including migration of the 14 Departmental Call Centres.
• BDM validates costs through competitive procurement, embeds costing expertise from the Office of the Comptroller General, and continuously monitors expenditures to ensure accuracy and accountability.

11. Benefits Delivery Modernization Professional Services Costs

Issue

What are the professional services costs associated with the Benefits Delivery Modernization (BDM) programme, specifically those arising from Cúram-related issues and required training activities?

Background

• Through extensive industry consultations from 2016 to 2017 held by Public Service and Procurement Canada (PSPC), and learning from past IT transformation projects, options were explored to leverage the capabilities of more than one industry provider to de-risk Programme capacity challenges, and to mitigate the risk of single point of failure by relying on only one transformation partner.

• Through the procurement qualification process, PSPC sought to qualify up to four system integrators (SI) and up to three Core Technology vendors.

• Working with PSPC, ESDC created a qualified group of suppliers, which includes some of the world's leading technology developers and SIs.

• This process resulted in Accenture, CGI, Deloitte, and Fujitsu being qualified as SIs, and IBM Canada as the Core Technology Vendor with its Cúram software.

Key Facts

• The below amounts have been spent by each vendor as of February 2026:
  • IBM: $114,562,609.68
  • Accenture: $202,430,181.77
  • CGI Information Systems and Management Consultants: $63,827,242.26
  • Deloitte: $396,356,169.13
  • Fujitsu Consulting: $47,691,556.70

• BDM operates under strict oversight, including Treasury Board monitoring, Special Purpose Allotment controls, Public Services and Procurement Canada (PSPC)‑managed procurement, fairness monitors, internal audit, and milestone‑based task authorizations.

• There is significant and rigorous control built into BDM Procurement Management which involves both governance internal to the department and also external within the Government of Canada with the Treasury Board Secretariat (TBS). This includes a semi-annual report to TBS with an update on procurement activities and results.

Key Messages

• BDM relies on targeted external expertise due to the scarcity of specialized skills-such as Cúram development, cloud engineering, and large‑scale system integration-while ensuring knowledge transfer to strengthen internal capacity.
• The use of external resources varies at any given time depending on the specific project requirements. At any given time, there are as many public servants working on BDM as external resources.
• Vendor spending reflects the scale and complexity of work completed to date, including the successful migration of OAS to the new platform and ongoing efforts to stabilize service and reduce backlogs.
• Oversight is critical for a programme of the scale of BDM, ensuring transparency, accountability, and successful implementation.
• All contracts are challenged through governance and approved within the delegations set by Treasury Board and further executed on by Public Services and Procurement Canada, to confirm that the right set of work is being procured from the qualified vendors to achieve the intended outcomes.