HUMA Committee appearance binder: Appearance Deputy Minister Flack - March 16 2021

Full title: Appearance of Minister of Employment, Workforce Development and Disability Inclusion - Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) - March 16, 2021

On this page

Opening statement

1. Speaking notes

Top Issues

Main Estimates

2. Overview – 2021 to 2022 Main Estimates

Supplementary Estimates C

3. Overview – 2020 to 2021 Supps C

Votes 1 and 5

4. Canada Student Loans debt write-offs
5. Stabilization of information technology
6. Canada Emergency Student Benefit (CESB) – pending applications
7. Benefits delivery modernization
8. Youth digital gateway
9. Safeguarding Canadians’ personal information
10. Resumption of in-person access at Service Canada centres
11. Improving gender and diversity outcomes in skills programming

Transfers

12. Indigenous skills and employment training agreement between ESDC and Kativik Regional Government
13. Internal reallocation of resources to write-off debts
14. Indigenous skills and employment training funding transfer to CIRNAC for the Cree Nation Government
15. Indigenous skills and employment training funding transfer to CIRNAC for Self-Governing Yukon First Nations

Statutory

16. Old Age Security (OAS) Pension
17. Guaranteed Income Supplement (GIS)
18. Allowance Payments
19. Canada Disability Savings Grants
20. Canada Disability Savings Bonds
21. Contributions to employee benefit plans

Canada Recovery Benefits Act

23. Canada Recovery Benefit
24. Canada Recovery Caregiving Benefit
25. Canada Recovery Sickness Benefit

Economic Statement Implementation Act

25. Canada Emergency Response Benefit

Act respecting further COVID-19 measures

26. One-time payment to persons with disabilities

Public Health Events of National Concern Payments Act (PHENCPA)

27. Canada Emergency Response Benefit
28. Canada Emergency Student Benefit
29. Payments to Support a Safe Restart in Indigenous Communities

Miscellaneous

30. Chronology of EI – CERB – CRB
31. Budgetary Sheet on EI – CERB – CRB
32. CERB overpayments (including Remission Order)
33. CERB Integrity
34. PTs clawing back social assistance benefits
35. Temporary Foreign Worker (TFW) Program (including quarantine issues)
36. Personal support worker training in long-term and home care
37. EI Independent Review
38. Provincial and Territorial job training efforts

Committee and parliamentary information

39. Parliamentary background and analysis
40. Committee membership and biographies

Supplementary documents

41. Ministerial correspondence from critics and HUMA members
42. Vote 1 – Increase in operating funds
43. Canada Student loan write-off trends
44. Example of money spent on safeguarding personal information
45. Annuities write-off
46. CERB Statistics Website – $7B variance
47. CRB Statistics Website
48. One time payment for persons with disabilities – estimate and amount spent to date
49. Qs and As – OAS and GIS related to Mains and Supps C

1. Speaking notes

Speaking Notes for the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough - Appearance before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) - Supplementary Estimates C 2020 to 2021 and Main Estimates 2021 to 2022 - March 16, 2021

2021 PA 0222

Check Against Delivery

Mr. Chair and Committee members, thank you for inviting me to join you today.

I will be speaking to the Supplementary Estimates C for 2020 to 2021 and the Main Estimates for 2021 to 2022 for the Department of Employment and Social Development Canada (ESDC).

The Supplementary Estimates C for 2020 to 2021 request an additional $225 million in voted authorities, offset by a decrease of $708 million in statutory authorities. This decrease is due primarily to updated forecasts for the Canada Emergency Response Benefit and the Canada Emergency Student Benefit (CERB).

The 2021 to 2022 Main Estimates present planned expenditures of $82.4 billion, which is an increase in $13.8 billion from the original planned budgetary expenditures for 2020 to 2021.

Let me explain.

Since the start of the pandemic, the Government of Canada has been unwavering in its support for Canadians. In the Fall Economic Statement, we laid out our plan to position Canada for a strong recovery. The appropriations requested in these Estimates will help us implement that plan.

The Main Estimates include funding for our Canada Recovery Benefits. The Supplementary Estimates C include funding to support students, to improve youth programming and to improve gender and diversity outcomes in skills programming. They also include funding for Canadians with disabilities.

I will now provide you with some more details.

CERB, CRB and EI

Within weeks of the first lockdown, we set up the CERB, a keystone piece of economic support for nearly 9 million Canadians.

Then, when the CERB was due to finish last summer, we made changes to the Employment Insurance (EI) program so that more people could access benefits, including regular and special benefits.

For Canadians who didn’t qualify for EI, we introduced a complementary new suite of recovery benefits—the Canada Recovery Benefit, the Canada Recovery Sickness Benefit and the Canada Recovery Caregiving Benefit.

Today, through the Main Estimates, we are requesting an increase totalling $10.3 billion for these 3 temporary recovery benefits.

And we are still in a crisis. We’ve continued to monitor the economic situation, and Canadians still need support.

That is why, over the past few weeks, we introduced Bill C-24, which your committee will begin to study soon, to temporarily increase the maximum number of weeks for EI regular benefits. We are also planning to increase the number of weeks available under the Canada Recovery Benefits through regulations.

Support for Students

Many young people have struggled financially—and continue to struggle—due to a loss of income caused by the pandemic.

In response, last spring, the Government of Canada stepped up to support Canadian youth. We introduced a comprehensive emergency package for students. It included boosts to job programs, direct income support and increased financial assistance through grants and loans and a pause on student loan repayments.

Through the Main Estimates, we are requesting an increase of $438.5 million to the Canada Student Loans Program and Canada Apprentice Loans.

Now, let me talk about job creation.

Job Creation

We are committed to creating a million jobs, restoring employment to pre-pandemic levels, making the largest training investment in Canadian history, and creating opportunities for young people. We are focused on strengthening workers’ futures by ensuring they have the skills they need for the changing nature of work and the labour market.

This will be done by using a range of tools, including immediate training to quickly skill up workers. We also intend to improve youth programming and to improve gender and diversity outcomes in skills programming.

For example, we will significantly scale up the Youth Employment and Skills Strategy, providing more paid work experiences for young Canadians who face barriers to entering the workplace.

And this year, the Canada Summer Jobs program is aiming to have a total of 120,000 jobs for students—that’s 50% more than last year!

Support for Persons with Disabilities

The Government of Canada has also committed to support persons with disabilities during the pandemic.

The Supplementary Estimates C provide funding for the one-time payment of up to $600 to help Canadians with disabilities offset the extra expenses during the pandemic.

We will also bring forward a bold plan—the Disability Inclusion Action Plan—that will include a new disability benefit, an employment strategy and an overhaul of how people access programs and services.

Conclusion

I would like to thank you for your attention to these Estimates. Together, we can provide Canadians with the support they need to get through the pandemic.

I would now be happy to take your questions.

- 30 -

2. Overview – 2021 to 2022 Main Estimates

Issue

What are the financial highlights of the 2021 to 2022 Main Estimates for the Department of Employment and Social Development?

Key facts

In Part II of the 2021 to 2022 Main Estimates, Employment and Social Development presents planned budgetary expenditures of $82.4 billion, which is $13.8 higher than the planned budgetary expenditures for 2020 to 2021 of $68.6 billion.

Response

• Planned budgetary expenditures for 2021 to 2022, totalling $82.4 billon for the Department of Employment and Social Development, are showing a new increase of $13.8 billion (approximately 20%) over the 2020 to 2021 Main Estimates of $68.6 billion.
• The increase is mainly explained by the 3 temporary recovery benefits introduced to ensure that Canadians continue to receive the support they need when their employment is affected by COVID-19 and by an increase to Old Age Security Pension, Guaranteed Income Supplement and Allowances payments resulting from an expected increased number of beneficiaries due to the aging population and expected changes to the average monthly amounts paid.

Background

Table 1: Key Fact: Variance 2021 to 2022 versus 2020 to 2021 planned budgetary expenditures

Planned budgetary expenditures	Vote 1 Operating	Vote 5 Grants and Contributions	Statutory Items	Total
2021 to 2022 Main Estimates	$1,076.9 M	$3,107.6 M	$78,255.2 M	$82,439.7 M
2020 to 2021 Main Estimates	$803.3 M	$3,021.4 M	$64,817.0 M	$68,641.7 M
Variance	$273.6 M	$86.2 M	$13,438.2 M	$13,798.0 M

Approximately $82,439.7 million in total budgetary funding is anticipated through the Main Estimates ($4,184.5 million in voted appropriations and $78,255.2 million in statutory). This excludes funding anticipated through Budget 2021. Almost 95% of planned budgetary expenditures will directly benefit Canadians through the Old Age Security Program and other statutory transfer payment programs.

Overall, the Department of Employment and Social Development’s total budgetary authorities for 2021 to 2022 have a net increase of $13,798.0 million, or approximately 20.0%, from the previous year’s total Main Estimates of $68,641.7 million.

This increase in funding is primarily attributable to statutory items:

• an increase totaling $10,335.0 million for 3 temporary recovery benefits introduced to ensure that Canadians continue to receive the support they need when their employment is affected by COVID-19: the Canada Recovery Benefit, the Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit
• an increase of $2,843.0 million to the Old Age Security Pension, the Guaranteed Income Supplement and to Allowances, explained by an expected increased number of beneficiaries due to the aging population and expected changes to the average monthly amounts paid
• an increase of $438.5 million to the Canada Student Loans Program and Canada Apprentice Loans, mostly due to increased grant amounts for low-income, middle-income and part-time students provided through the Canada Student Grants and to alternative payments to non-participating provinces and territories related to the temporary COVID-19 measure doubling the grant amount for loan year 2020 to 2021, and
• an increase of $12.5 million for other items

These increases are offset by a decrease of $190.8 million to Canada Disability Savings Grants and Bonds, which is due to an adjustment to the forecasting model to better reflect trends in actual expenditures.

The Department plans to spend $1,076.9 million in 2021 to 2022 in net operating expenditures (Vote 1), representing an increase of $273.6 million from the 2020 to 2021 Main Estimates of $803.3 million. The net increase is mainly related to additional resources approved for the administration and the integrity of the Canada Emergency Response Benefit, the Canada Emergency Student Benefit and the Employment Insurance Emergency Response Benefit, Old Age Security workload, compensation adjustments and the Canada Summer Jobs program.

In addition, voted grants and contributions (Vote 5) are expected to reach $3,107.6 million in 2021 to 2022, an increase of $86.2 million from the 2020 to 2021 Main Estimates, mainly attributable to investments to the Canada Summer Jobs program, the Student Work Placement Program, Reaching Home and Personal Support Worker Training and other measures to address labour shortages in long term and home care (COVID-19), offset by decreasing funds for the payments to provinces and territories for Early Learning and Child Care, until renewed in 2021 to 2022.

With respect to non-budgetary loans, there is a net decrease in authorities of $60.3 million from the 2020 to 2021 Main Estimates. Despite a forecasted increase to loans related to COVID-19 measures, which temporarily increased the loan limit and waived the student and spousal contribution, the growing repayment portfolio has resulted in a net decrease in 2021 to 2022.

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management

Phone number: 819-654-6402

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer, Chief Financial Officer Branch

Phone number: (819) 654-6634

Approved by

Name: Mark Perlman

Title: Chief Financial Officer, Chief Financial Officer Branch

Phone number: (819) 654-6634

Date

Date approved in SADMO / CFOO: February XX, 2021

3. Overview – 2020 to 2021 Supplementary Estimates (C)

Issue

Why does Employment and Social Development (ESDC) require additional authorities in the Supplementary Estimates (C) for Fiscal Year ending March 31, 2021?

Response

• Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year, including items that were unforeseen at the time the Main Estimates were prepared
• ESDC is requesting adjustments for:

A. Voted appropriations

1. Funding to write-off unrecoverable debts owed to the Crown for Canada Student Loans – $188.1 million
2. Funding to stabilize information technology to support program delivery – $11.0 million
3. Funding for Canada Emergency Student Benefit (COVID-19) (This item received funding from Treasury Board Vote 5 – Government Contingencies) - $8.0 million
4. Funding for Benefits Delivery Modernization – $6.7 million
5. Funding for the Youth Digital gateway – $5.0 million
6. Funding for Safeguarding Canadians’ Personal Information – $3.1 million
7. Funding for the resumption of in-person access at Service Canada Centres (COVID-19) – $2.6 million
8. Funding to improve gender and diversity outcomes in skills programming – $0.9 million, and
9. Funding to authorize the inclusion and adjustment of an authority embedded in vote wording – $1 (The 1-dollar item is used to include an internal transfer from Vote 1 to Vote 10 to write off debts due to the Crown related to overpayments from the Government Annuities Account.)

B. Transfers

1. Transfer from the Department of Indigenous Services for the Kativik Regional Government to streamline delivery of youth programming – $0.6 million
2. Internal reallocation of resources to write off debts due to the Crown related to overpayments from the Government Annuities Account – $25,064, and
3. Transfer to the Department of Crown-Indigenous Relations and Northern Affairs to support skills and employment training services delivered by The Cree Nation Government for youth, and to support skills and employment training services delivered by the 11 self-governing Yukon First Nations– $0.1 million

C. Statutory Budgetary Authorities

1. Payments for the Canada Emergency Response Benefit pursuant to the Public Health Events of National Concern Payments Act – Decrease of $12.4 billion
2. Old Age Security benefit – Decrease of $100.1 million
3. Guaranteed Income Supplement – Increase of $37.8 million
4. Payments for the Canada Recovery Benefit pursuant to the Canada Recovery Benefits Act – Increase of $10.1 billion
5. Payments for the Canada Emergency Student Benefit pursuant to the Public Health Events of National Concern Payments Act – Decrease of $2.2 billion
6. Payments for the Canada Recovery Caregiving Benefit pursuant to the Canada Recovery Benefits Act – Increase of $2.9 billion
7. Payment to support Persons with Disabilities one-time payment under An Act respecting further COVID-19 measures – Increase of $0.4 million
8. Payments for the Canada Recovery Sickness Benefit pursuant to the Canada Recovery Benefits Act – Increase of $0.8 billion
9. Allowance – Decrease of $5.8 million
10. Payments for the Canada Emergency Response Benefit pursuant to the Economic Statement Implementation Act, 2020 – Increase of $500.0 million
11. Canada Disability Savings Grant – Decrease of $40.6 million
12. Total Adjustment to Contributions to Employee Benefit Plans – Increase of $1.7 million
13. Canada Disability Savings Bond – Decrease of $200.5 million, and
14. Payments to support a safe restart in Indigenous communities pursuant to the Public Health Events of National Concern Payments Act – Decrease of $0.1 million

Background

A. Voted appropriations

1. Funding to write-off unrecoverable debts owed to the Crown for Canada Student Loans – $188.1 million

An amount of $188,099,201 is requested to write-off 30,289 debts related to direct Canada Student Loans (CSL) in these Supplementary Estimates. Of this amount, $795.96 are write-offs associated with 466 Canada Apprentice Loan accounts.

The CSL write-offs are related to student loan debts for which all reasonable collection efforts have been exhausted.

The write-off of unrecoverable Canada Student Loans is an annual accounting exercise, which seeks approval to remove the value of uncollectible debts from the Canada Student Loans Program portfolio.

This year's write-off of $188.1 million represents less than 1% of the Canada Student Loan Program portfolio value, which is consistent with the proportion of loans written-off in previous years.

Access to post-secondary education is key in building a strong middle class. In 2019 to 2020, the Government of Canada provided $1.6 billion in Canada Student Grants and $3.4 billion in Canada Student Loans to over 656,000 students. Many of them would not be able to attend post-secondary education without support from the Government.

The write-off of $188.1 million in 2020 to 2021 is for loans where all reasonable collection efforts have been made. It represents less than 1% of the $20 billion portfolio. Over 80% of these debts are from loans that have not been acknowledged by the borrower for 6 or more years, and as a result, the government can no longer pursue collection efforts.

ESDC is requesting authority to include $188,099,201 in Vote 15 (Debt write-off – Canada Student Loan) as part of the Supplementary Estimates (C) 2020 to 2021.

2. Funding to stabilize information technology to support program delivery – $11.0 million

ESDC is the largest federal service delivery organization. However, decades of underinvestment in information technology (IT) has put ESDC in an unprecedented situation where the systems could fail and affect the ongoing delivery of critical programs and services to Canadians.

[Part of the sentence redacted], such as improving disaster response for Employment Insurance IT services and improving coast to coast network performance.

The $11 million represents the Consolidated Revenue Fund [part of the sentence redacted]. The remaining funding for 2020 to 2021 is being sourced from the Employment Insurance Operating Account and the Canada Pension Plan Account.

ESDC is requesting authority to include $11,020,603 in Vote 1 (Operating expenditures, excluding EBP costs of $158,782) for Stabilization of IT in Support of Program Delivery as part of the Supplementary Estimates (C) 2020 to 2021.

3. Funding for Canada Emergency Student Benefit (CESB) (This item received funding from Treasury Board Vote 5 – Government Contingencies) - $8.0 million;

The CESB provided close to $3 billion in financial relief to over 700,000 eligible students and recent graduates. Eligible students received $1,250 per month, plus an additional $750 per month if they had dependants or a disability for a maximum of $2,000 per month.

The CESB was available from May to August 2020 and students could apply retroactively until September 30, 2020. While the CESB has ended, the CRA is still processing approximately $8.0 million in applications. These applications were received prior to the September 30, 2020 deadline and are still pending due to verification delays.

ESDC is requesting authority to include $8,000,000 in Vote 5 (Grant) for Canada Emergency Benefit (CESB) as part of the Supplementary Estimates (C) 2020 to 2021.

4. Funding for Benefits Delivery Modernization – $6.7 million

The Government of Canada committed $12.5 million in Budget 2019. [Two paragraphs redacted]. [Two paragraphs redacted].

ESDC is requesting authority to include $6,690,134 in Vote 1 (Operating expenditures, excluding EBP costs of $543,897) for the Benefits Delivery Modernization Programme Definition as part of the Supplementary Estimates (C) 2020 to 2021.

5. Funding for Youth Digital Gateway – $5.0 million

ESDC is requesting $5.0 million in funding for Youth Digital Gateway to support work this fiscal year related to the build and delivery of digital services that address the needs of the youth segment.

Seeking to be the GC digital channel for youth employment, skills development, learning, and services, the YDG vision will be achieved by providing holistic, client-centric and new services for youth and youth partners that are accessible across a range of digital channels.

In consultations with young Canadians on the modernization of YESS and the CSC, youth have informed the GC about how they would like to access information and what tools they envision to support them in their transition to the workplace and in taking part in volunteer service.

The YDG project will respond to their suggestions and engage youth directly in the design, co-creation, and testing of new and improved digital services.

ESDC is requesting authority to include $5,001,890 in Vote 1 (Operating expenditures, excluding EBP costs of $624,807) for Youth Digital gateway as part of the Supplementary Estimates (C) 2020 to 2021.

6. Funding for Safeguarding Canadians’ Personal Information – $3.1 million

ESDC collects personal information from almost every Canadian, as well as a number of organizations, to facilitate timely, efficient and accurate delivery of its programs and services These programs and services range from collaborating with the provinces and territories to deliver the Social Insurance Number (SIN) at birth to providing benefits to eligible citizens via some of the Government of Canada's major statutory programs such as EI, CPP, OAS and voted grants and contributions.

Recent high-profile breaches of personal information in both the public and private sector demonstrate that the risk of breach is real and present for organizations such as ESDC. Moreover, because these private sector data breaches compromised a significant number of Social Insurance Numbers (SIN) and other personal information used for identity validation, fraudulent phone scams targeting Canadians who access the Department’s programs and services are on the rise.

With this in mind, the Department needs additional funds to invest in an access monitoring platform and program to prevent, detect and address insider threats and information misuse, as well as create stronger authentication tools and processes, and enhance digital solutions, to support identity verification and prevent fraud.

For this initiative in fiscal year 2020 to 2021 ESDC received a total of $17,139,591 excluding EBP costs for $1,704,787. This includes funding of $14,003,702 from the EI Operating Account and $3,135,889 from the CRF.

ESDC is requesting authority to include $3,135,889 in Vote 1 (Operating expenditures, excluding EBP costs of $315,701) for Safeguarding Canadians’ Personal Information as part of the Supplementary Estimates (C) 2020 to 2021.

7. Funding for the resumption of in-person access at Service Canada Centres (SCC) (COVID-19) – $2.6 million

To reopen SCCs safely while adhering to physical distancing measures, the department introduced Commissionaires/security guards stationed at the entrance to control entry, confirm health status and manage the number of walk-ins based on capacity limits while enhancing cleaning protocols in every SCCs.

The department also installed see-through barriers (for example Plexiglas) at client-receiving workstations and floor markers, signage and barriers to control flow.

For this initiative in fiscal year 2020 to 2021 ESDC received a total of $17,690,233. This includes funding of $13,530,319 from the EI Operating Account, funding of $1,559,968 from the CPP Account and the CRF portion of $2,599,946.

ESDC is requesting authority to include $2,599,946 in Vote 1 (Operating expenditures) for the resumption of in-person access at Service Canada Centres as part of the Supplementary Estimates (C) 2020 to 2021.

8. Funding for improving gender and diversity outcomes in Skills programming – $0.9 million

The Government of Canada is committed to improving gender and diversity outcomes in skills programs.

Budget 2019 announced new funding of $5.0 million over 5 years to develop a strategy and improve capacity to better measure, monitor and address gender disparity and promote access of underrepresented groups across skills programming.

This funding will enable ESDC to build on work already underway with key partners to improve the inclusiveness of skills programming.

Having access to skills programs will enable more Canadians to get the skills they need to find and keep good jobs today and in the future.

ESDC is requesting authority to include $896,560 in Vote 1 (Operating expenditures, excluding EBP costs of $100,706) for improving Gender and Diversity Outcomes in Skills Programming as part of the Supplementary Estimates (C) 2020 to 2021.

9. Funding to authorize the inclusion and adjustment of an authority embedded in vote wording – $1

The 1-dollar item is used because no additional funding is required but an amount must be presented for parliamentary approval of the item. The 1-dollar item is used to include an internal transfer from Vote 1 to Vote 10 to write off debts due to the Crown related to overpayments from the Government Annuities Account.

B. Transfers

1. Transfer from the Department of Indigenous Services to the Department of Employment and Social Development for the Kativik Regional Government to streamline delivery of youth programming – $0.6 million

In March 2020, the Prime Minister announced additional investments of $492 million through the First Nations and Inuit Youth Employment Strategy (FNIYES) across Canada who are facing barriers to employment.

This funding will complement the programs and services that the Kativik Regional Government (KRG) delivers with respect to employment and training.

This transfer to the KRG, provided through the Indigenous Skills and Employment Training agreement between ESDC and KRG, consolidates funding, allowing for a reduction in administrative burden on KRG, especially in reporting, and allows for more streamlined service delivery to youth in Nunavik.

ESDC is requesting authority to transfer $560,125 in Vote 5 (Contributions) for a transfer from the Department of Indigenous Services for the Kativik Regional Government to streamline delivery of youth programming as part of the Supplementary Estimates (C) 2020 to 2021.

2. Internal reallocation of resources for the write-off debts due to the Crown related to overpayments from the Government Annuities Account – $25,064

The Department is requesting a transfer of $25,064 from Vote 1 (Operating Expenditures) to Vote 10 (Debt write-off – Government Annuities Account) to allow the write-off of debts due to the Crown related to 465 overpayments from the Government Annuities Account.

The Government Annuities Account write offs pertain to debts from 2015 to 2020.

The majority of overpayments result from late notification of death.

After all collection efforts have been exhausted, and overpayments cannot be recovered, the debts are then considered for write off.

Provide authority to transfer from Employment and Social Development Vote 1, Operating expenditures, $25,064 in 2020 to 2021 to Vote 10 (Debt write-off - Government Annuities Account).

3. Transfer to Crown-Indigenous Relations and Northern Affairs Canada to support skills and employment training services for youth, delivered by The Cree Nation Government, and to support skills and employment training services delivered by the 11 Self-Governing Yukon First Nations – $120,000

In April 2019, ESDC launched the Indigenous Skills and Employment Training (ISET) program, the successor to the Aboriginal Skills and Employment Training Strategy (ASETS). The ISET program includes a number of new flexibilities, such as longer-term agreements, less administrative oversight and a different approach with modern treaty and self-governing groups.

This approach under the ISET program included the transfer of program funding to the Department of Crown-Indigenous Relations and Northern Affairs for a number of modern treaty and self-governing groups, including the Cree Nation Government.

An outstanding amount of $120,000 for 2020 to 2021 is being transferred from ESDC to the Department of CIRNAC through the 2020 to 2021 Supplementary Estimates (C) accompanied by an interdepartmental letter of agreements for the Cree Nation Government. [One sentence has been redacted].

ESDC is requesting authority to transfer $120,000 in Vote 5 (Contributions) for a transfer to Crown-Indigenous Relations and Northern Affairs Canada to support skills and employment training services for youth, delivered by The Cree Nation Government, and to support skills and employment training services delivered by the 11 Self-Governing Yukon First Nations as part of the Supplementary Estimates (C) 2020 to 2021.

C. Statutory Budgetary Authorities

1. Payments for the Canada Emergency Response Benefit pursuant to the Public Health Events of National Concern Payments Act – Decrease of $12.4 billion

The statutory forecast for the Canada Emergency Response Benefit was reduced to match the amount presented in the Fall Economic Statement in November 2020.

2. Old Age Security (OAS) Pension – Decrease of $100.1 million

The decrease of $100.1 million is an amalgamation of 3 components:

• a decrease in the forecasted average monthly rate for the OAS pension from $593.89 to $585.78, which accounts for a decrease of $648.4 million
• an increase in the estimated number of beneficiaries from 6,617,129 to 6,649,521, which accounts for an increase of $232.6 million, and
• a decrease in the anticipated OAS benefit re-payment which accounts for an increase in estimated OAS benefit payments of $315.7 million

3. Guaranteed Income Supplement (GIS) – Increase of $37.8 million

The increase of $37.8 million is an amalgamation of 2 components:

• a decrease in the estimated number of beneficiaries from 2,220,198 to 2,210,957, which accounts for a decrease of $57.3 million, and
• an increase in the forecasted average monthly rate from $522.54 to $526.14, which accounts for an increase of $95.1 million

4. Payments for the Canada Recovery Benefit pursuant to the Canada Recovery Benefits Act Benefit – Increase of $10.1 billion

When Canadians needed support the most, the Canada Emergency Response Benefit (CERB) was introduced, which helped more than 8.5 million people pay their bills during this challenging time.

As the CERB came to an end, there was a transition to a simplified and more accessible EI Program and 3 new temporary recovery benefits were introduced to ensure that Canadians continue to receive the support they need when their employment is affected by COVID-19.

The temporary Canada Recovery Benefit (CRB) is one of these 3 benefits to support workers who are not eligible for EI.

To be eligible, workers must not be employed or self-employed for reasons related to COVID-19 or must have had a reduction of at least 50% in income due to COVID-19.

Under this benefit, a worker could receive $500 per week for up to 26 weeks as long as they are available and looking for work.

This will help support Canadians and promote economic recovery.

As of January 31, 2021, the CRB has helped over 1.7 million Canadians, for approximately $8.7 billion.

5. Payments for the Canada Emergency Student Benefit pursuant to the Public Health Events of National Concern Payments Act – Decrease of $2.2 billion

The statutory forecast for the Canada Emergency Student Benefit was reduced to match the amount presented in the Fall Economic Statement in November 2020.

6. Payments for the Canada Recovery Caregiving Benefit pursuant to the Canada Recovery Benefits Act – Increase of $2.9 billion

The Canada Recovery Caregiving Benefit helps workers who must stay home to provide care to a young child or a family member who requires supervision when the school or facility is closed due to COVID-19 or the child or family member cannot attend due to COVID-19.

It provides up to 26 weeks of support per household at $500 per week.

As of January 31, 2021, over 0.3 million workers have received CRCB, for over $1.25 billion.

7. One-time payment to persons with disabilities pursuant to An Act respecting further COVID-19 measures – Increase of $0.4 million

As a result of COVID-19, Canadians living with disabilities are facing significant challenges, with some experiencing job insecurity. Others are seeing increased costs for personal support workers and other disability supports including; internet costs due to physical distancing requirements, and increased use of taxis and home delivery for food, medication and medical supplies.

The Department of Employment and Social Development is requesting $0.4 million for adjustments to support Persons with Disabilities one-time payment as a result of the recently announced extension of the deadline to apply for the Disability Tax Credit (DTC) from September 25, 2020, to December 31, 2020. This requires ESDC to process and issue another payment in Spring 2021.

8. Payments for the Canada Recovery Sickness Benefit pursuant to the Canada Recovery Benefits Act – Increase of $0.8 billion

The Canada Recovery Sickness Benefit (CRSB) benefit provides $500 per week for up to 2 weeks for workers who are not receiving other paid leave and who are unable to work at least 50% of their normal work schedule because they contracted COVID-19, they must self-isolate for reasons related to COVID-19, or they have an underlying condition that would make them more susceptible to COVID-19.

As of January 31, 2021, over 0.25 million workers have received the CRSB, for over $311 million.

9. Allowance Payments – Decrease of $5.8 million

The decrease of $5.8 million is an amalgamation of 2 components:

• a decrease in the forecasted average monthly rate from $621.11 to $616.09, which accounts for a decrease of $5.2 million, and
• a decrease in the estimated number of beneficiaries from 85,871 to 85,782, which accounts for a decrease of $0.6 million

10. Canada Emergency Response Benefit pursuant to the Economic Statement Implementation Act, 2020 – Increase of $500 million

As the COVID-19 pandemic and resulting public health measures spread across the country and workplaces shuttered, the Government of Canada introduced the Canada Emergency Response Benefit (CERB).

CERB provided temporary income support to workers who had to stop working or were without employment or self-employment income because of reasons related to COVID-19.

Workers received $2,000 for a 4-week period (the same as $500 a week), between March 15 and September 26, 2020. The deadline to retroactively apply for CERB was December 2, 2020.

The CERB helped more than 8.5 million workers pay their bills during this challenging time, providing over $81 billion in benefit payments.

The $500 million requested is for CERB applications received prior to the application deadline but paid after the December 31, 2020 repeal date of the Public Events of National Concern Payment Act.

11. Canada Disability Savings Grants – Increase of $40.6 million

The decrease in Canada Disability Savings Grant expenditures is due to a change in the forecasting model. The original 2020 to2021 estimate was prepared based on a forecast simulation which overestimated expenditures for the grants. Since then, the program has adjusted its approach to forecasting expenditures and in the future the model will rely more heavily on the use of actual historical data to arrive at a more accurate forecast. Similar to previous years, grant forecasts will continue to be adjusted to better reflect the trends in actual expenditures in bonds and grants.

12. Contributions to employee benefit plans (EBP) – Increase of $1.7 million

An adjustment of $1,743,953 to EBP costs related to 5 items requested in the Supplementary Estimates 2020 to2021 (C).

The 5 items are:

• funding for Youth Digital gateway ($624,867)
• funding for Benefits Delivery Modernization ($543,897)
• funding for Safeguarding Canadians’ Personal Information ($315,701)
• funding for Stabilization of IT in Support of Program Delivery ($158,782), and
• funding for improving Gender and Diversity Outcomes in Skills Programming ($100,706)

13. Canada Disability Savings Bonds – Decrease of $200.5 million

The decrease of $200.5 million in bond expenditures is due to a change in the forecasting model. The original 2020 to 2021 forecast was prepared based on a forecast simulation which overestimated expenditures for the bond. Since then, the program has adjusted its approach to forecasting expenditures and in the future the model will rely more heavily on the use of actual historical data to arrive at a more accurate forecast. Similar to previous years, bond and grant forecasts will continue to be adjusted to better reflect the trends in actual expenditures in bonds and grants.

14. Payments to support a safe restart in Indigenous communities pursuant to the Public Health Events of National Concern Payments Act – Decrease of $0.1 million

In response to Covid-19, $120 million in new federal investments were approved to support the safe reopening of the Indigenous Early Learning and Child Care (IELCC) sector. In September 2020, access was granted to $91.6 million of these funds. The final $28.4 million were accessed in November 2020 and divided between ESDC, Indigenous Services Canada, and the Public Health Agency of Canada based upon engagement from Indigenous governments and stakeholders. The ESDC allocation has changed slightly, decreasing by $124,910, based upon these consultations.

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB, ESDC

Phone number: 613-793-3084

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer, CFOB, ESDC

Phone number: 613-295-2555

Approved by

Name: Mark Perlman

Title: Chief Financial Officer, CFOB, ESDC

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

4. Canada Student Loan Debt Write-Off

Issue

Can the Minister explain the write-off of $188.1 million in student loans?

Suggested Response

• Access to post-secondary education is key in building a strong middle class. In 2019 to 2020, the Government of Canada provided $1.6 billion in Canada Student Grants and $3.4 billion in Canada Student Loans to over 656,000 students. Many of them would not be able to attend post-secondary education without support from the Government
• The write-off of $188.1 million in 2020 to 2021 is for loans where all reasonable collection efforts have been made. It represents less than 1% of the $20 billion portfolio. Over 80% of these debts are from loans that have not been acknowledged by the borrower for 6 or more years
• For borrowers facing financial difficulties, the Government offers the Repayment Assistance Plan, which ensures that no borrower is required to make payments on their Canada Student Loan until they earn at least $25,000 per year. Over 297,000 borrowers received support under the Repayment Assistance Plan in 2019 to 2020

Background

As loan write-offs are recorded as expenditures, [part of the sentence redacted], as well as Parliamentary approval sought via Supplementary Estimates.

Canada Student Loans may be written-off for the following reasons:

• Statute-Barred loans: The Government’s legal authority to collect ends 6 years after a borrower last acknowledged their debt. For 2020 to 2021, this represented 81.04% of the dollar value of write-offs, and 41.38% of written-off accounts.
• Further action not cost effective: If the loan balance is less than $20, it is recommended for write-off. This represented less than 0.1% of the dollar value of write-offs, but accounted for 51.03% of written-off accounts.
• Other reasons include Bankruptcy (18.5% of the dollar value of write-offs); Hardship (0.3% of the dollar value of write-offs), and Compromise Settlements (0.1% of the dollar value of write-offs).
• Measures implemented by the Government have led to a steady decline in Canada Student Loans default. The 3-year default rate (proportion of loans going into default within 3 years of entering repayment) has declined from 28% for the 2003 to 2004 cohort to 8% for the 2017 to 2018 cohort.
• The Government of Canada is committed to providing financial relief to post-secondary students during the Covid-19 pandemic. Canada Student Loan repayments were paused and interest did not accrue for the period of March 30 to September 30, 2020. Approximately 1.3 million student loan borrowers benefited from this measure. The Government of Canada also introduced the Canada Emergency Student Benefit (CESB), which provided $2.9B in financial support to over 708,000 post-secondary students and recent graduates who could not find summer employment due to COVID-19.

To support new and returning post-secondary students this fall, the Government also introduced enhancements to Canada Student Loans and Grants, effective for 1 year starting August 1, 2020. These measures are supporting approximately 765,000 returning and prospective students in 2020 to 2021:

• doubling Canada Student Grants for all eligible full-time students to up to $6,000 and up to $3,600 for part-time students. The Canada Student Grants for Students with Permanent Disabilities and Students with Dependents were also doubled
• removing the expected student and spousal contribution, in recognition that many students and families will struggle to save for school this year
• raising the maximum weekly loan amount that can be provided to a student in 2020 to 2021 from $210 to $350

On November 30, 2020, the Government announced further support for students in the Fall Economic Statement. To make repayment more manageable, interest will be eliminated on the federal portion of Canada Student Loans and Canada Apprentice Loans for the 2021 to 2022 year. This measure will bring $329.4 million in relief to up to 1.4 million Canadians who are looking for work or in the early stages of their careers.

Prepared by

Name: Joshua Diener

Title: Senior Policy Analyst, Canada Student Loans Program

Phone number: 343-550-3019

Key contact

Name: Agata Frankowicz

Title: A/Director General, Canada Student Loans Program

Phone number: 613-618-4780

Approved by

Name: Atiq Rahman

Title: A/Assistant Deputy Minister, Learning Branch

Phone number: 613-898-5995

And

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

5. Stabilization of Information Technology

Issue

Why is Employment and Social Development Canada (ESDC) requesting $11.0 million in funding for Stabilization of IT in Support of Program Delivery in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

$11.0 million for ESDC’s Stabilization of IT

Context

ESDC is requesting $11.0 million in funding for Stabilization of IT in Support of Program Delivery in the Supplementary Estimates (C) for fiscal year ending March 31, 2021.

Key Facts

• ESDC provides more than $122 billion in direct benefits to millions of Canadians every year
• ESDC information technology (IT) systems that enable the Department's service delivery are at risk of failure due to years of underinvestment
• Recognizing the short term need to stabilize and remediate ESDC's IT systems, in May 2020 the Government of Canada approved $469 million over 6 years (2020 to 2021 to 2025 to 2026) to mitigate the risk
• [One sentence redacted].

Suggested Response

• ESDC is the largest federal service delivery organization in Canada. However, chronic underinvestment in information technology (IT) has put ESDC in an unprecedented situation where the systems could fail and affect the ongoing delivery of critical programs and services to Canadians
• [Part of the sentence redacted], such as improving disaster response for Employment Insurance IT services and improving coast to coast network performance
• The $11 million represents the Consolidated Revenue Fund's portion of the total cost of the initiative for the fiscal year 2020 to 2021. The funding required for the rest of the cost is being covered by the Employment Insurance Operating Account and the Canada Pension Plan Account

Background

ESDC's IT systems that support the 3 major statutory programs (Employment Insurance, Canada Pension Plan and Old Age Security) [part of the paragraph redacted] Notably, the Department identified its aging IT systems as the top risk in its 2020 to 2021 Departmental Plan that was tabled in Parliament on March 10, 2020.

In May 2020, the Government of Canada [part of the paragraph redacted].

In November 2020, an initial investment of $149 million was approved from the total approved funding of $469 million over 6 years to initiate the first phase of work needed to improve network performance, establish disaster recovery systems, and stabilize aging IT systems.

[Part of the sentence redacted]. $11 million is sourced from the Consolidated Revenue Fund, $6 million from the Canada Pension Plan Account and $30 million from the Employment Insurance Operating Account.

Funding ($000’s) and FTE

FTE

Existing FTEs – 0

Supps C – 2020 to 2021 FTEs – 6

Total FTEs – 6

Salary

Existing Funding: $0

Supps C – 2020 to 2021: $588

Total Funding: $588

O and M

Existing Funding: $0

Supps C – 2020 to 2021: $10,433

Total Funding: $10,433

Total Operating

Existing Funding: $0

Supps C – 2020 to 2021: $11,021

Total Funding: $11,021

EBP

Existing Funding: $0

Supps C – 2020 to 2021: $159

Total Funding: $159

Sub-Total

Existing Funding: $0

Supps B – 2020 to 2021: $11,180

Total Funding: $11,180

Vote 5 G&C

Existing Funding: $0

Supps C – 2020 to 2021: $0

Total Funding: $0

Total

Existing Funding: $0

Supps C – 2020 to 2021: $11,180

Total Funding: $11,180

Prepared by

Name: Nathalie Beaulieu

Title: Director General, Business Solutions Innovation, Innovation, Information and Technology Branch

Phone number: 613-410-8178

Key contact

Name: Peter Littlefield

Title: Chief Information Officer

Phone number: 819-654-6634

Approved by

Name: Peter Littlefield

Title: Chief Information Officer

Phone number: 819-654-1400

and

Name: Mark Perlman

Title: Chief Financial Officer

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

6. Canada Emergency Student Benefit – pending applications

Issue

Why is Employment and Social Development Canada (ESDC) requesting $8.0 million in funding for Canada Emergency Student Benefit (CESB) in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Additional Funding for CESB

Context

• The department is seeking an additional $8.0 million in the Supplementary Estimates (C) to ensure that funding is available for the CESB applicants with pending applications

Suggested Response

• The CESB provided $2.9 billion in financial relief to over 700,000 eligible students and recent graduates. Eligible students received $1,250 per month, plus an additional $750 per month if they had dependants or a disability for a maximum of $2,000 per month
• The CESB was available from May to August 2020 and students could apply retroactively until September 30, 2020. While the CESB has ended, the CRA is still processing some applications. These applications were received prior to the September 30, 2020 deadline and are still pending due to verification delays
• The request for $8.0 million in the Supplementary Estimates (C) ensures that funding is available for the CESB applicants with pending application

Response

The CESB provided financial support to post-secondary students, and recent post-secondary and high school graduates who, due to COVID-19, were unable to work, unable to find work, or worked but made less than $1,000 per 4-week CESB period.

$2.9 billion of financial relief was provided to more than 700,000 unique recipients including over 116,000 students with disabilities and dependants. Eligible students received $1,250 per month, plus an additional $750 per month if they had dependants or a disability for a maximum of $2,000 per month.

CESB funding received through the Public Health Events of National Concern Payments Act (PHENCPA) expired on December 31, 2020. This request for funding as part of the Supplementary Estimates (C) is to ensure that eligible applicants, whose CESB payments were delayed due to verification issues can receive their payments.

Background

The Canada Emergency Student Benefit (CESB) provided $2.9 billion in financial relief to over 700,000 students. Students and recent graduates were eligible for the Canada Emergency Student Benefit (CESB) if they are a Canadian citizen, a registered Indian, a permanent resident or a protected person and they were enrolled in a post-secondary education (PSE) program; or had ended PSE studies no earlier than December 2019; or had completed, or will complete, high school in 2020 and had applied for a PSE program that begins before February 1, 2021.

In addition, students attested that for COVID-19 related reasons, they were unable to work; or were seeking work but were unable to find it; or they were working but did not expect to make more than $1,000 (before taxes) over the 4-week period for which they had applied; and they were not receiving the Canada Emergency Response Benefit or Employment Insurance benefits for the same 4-week period as their application.

While the CESB ended on September 30, 2020, some applications are still being reviewed and processed by the Canada Revenue Agency (CRA). Funding for the CESB was provided through the Public Health Events of National Concern Act (PHENCA), which expired on December 31, 2020. In order to ensure that eligible applicants receive the CESB payments, the Government of Canada is requesting an additional $8M through the Supplementary Estimates (C). This will ensure that eligible applicants can receive the CESB payments once verification activities are completed.

Key quotes

“The future of our economy and our country relies on the opportunities and support we provide to Canadian students today. To promote a sustainable economic recovery, we need a strong workforce and good job opportunities for young people. That means giving them the support they need to continue their studies and encouraging them to serve their communities. Together, we will get through this difficult time.”

-- The Rt. Hon. Justin Trudeau, Prime Minister of Canada

Funding ($000’s) and FTE

FTE

Existing FTEs – 0

Supps C – 2020 to 2021 FTEs – 0

Total FTEs – 0

Salary

Existing Funding: $0

Supps C – 2020 to 2021: $0

Total Funding: $0

O and M

Existing Funding: $0

Supps C – 2020 to 2021: $0

Total Funding: $0

Total Operating

Existing Funding: $0

Supps C – 2020 to 2021: $0

Total Funding: $0

EBP

Existing Funding: $0

Supps C – 2020 to 2021: $0

Total Funding: $0

Sub-Total

Existing Funding: $0

Supps B – 2020 to 2021: $0

Total Funding: $0

Vote 5 G and C

Existing Funding: $0

Supps C – 2020 to 2021: $8,000

Total Funding: $8,000

Public Health Events of National Concern Payments Act – 2020 to 2021

Existing Funding $0

Supps A – 2020 to 2021: $5,250,000

Supps C – 2020 to 2021: $(2,227,800)

Total Funding: $3,022,200

Total

Existing Funding: $0

Supps A – 2020 to 2021: $5,250,000

Supps C – 2020 to 2021: $(2,219,800)

Total Funding: $3,030,200

Prepared by

Name: Joshua Diener

Title: Senior Policy Analyst, Canada Student Loans Program

No phone number: 343-550-3019

Key contact

Name: Agata Frankowicz

Title: A/Director General, Canada Student Loans Program

Phone number: 613-618-4780

Approved by

Name: Atiq Rahman

Title: A/Assistant Deputy Minister, Learning Branch

Phone number: 613-898-5995

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

7. Benefits Delivery Modernization

Issue

Why is Employment and Social Development Canada (ESDC) requesting $6.7 million in funding for Benefits Delivery Modernization Programme in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

• The Government of Canada announced the Benefits Delivery Modernization (BDM) Programme in Budget 2017, when $12.1M was committed to developing modern approaches to service delivery for Employment and Social Development Canada (ESDC)’s 3 statutory programs, in a phased approach beginning with Employment Insurance (EI)
• [One paragraph redacted]
• The Department of Employment and Social Development is requesting $6.7 million in funding to undertake activities to close the Programme Definition phase of the Benefits Delivery Modernization Programme
• Benefits Delivery Modernization (BDM) Programme will ensure ESDC can continue to reliably and accurately provide Canadians with EI, CPP, and OAS benefits
• The BDM Programme is modernizing IT systems to enable service improvements, which will expand self-service options, reduce wait times, streamline application processes and enable resolution at first point of contact

Programme’s Objectives

BDM will completely renew the business processes and technology for EI, CPP, and OAS, thereby transforming benefits delivery. BDM includes a business-focussed initiative to build a more responsive service delivery environment and an enabling technology component focused on replacing a suite of systems and tools built over 40 years ago, with a modern, integrated technology solution that will respond quickly to policy and other business changes as well as support expanding service delivery expectations of the future.

BDM is taking a phased approach to transform; leveraging best practices and lessons learned from the private sector and governments globally.

Foundational Work

Over the past 2 years foundational work has been undertaken as part of the BDM Programme, including:

• engaging with industry and stakeholders to develop a comprehensive implementation plan
• engaging with citizens and ESDC employees to design the modernized service delivery model
• completing the first step in a collaborative procurement process, resulting in the onboarding of 7 qualified suppliers of IT systems and business solutions
• establishing a Partner Relations Management (PRM) function, including delivery and implementation of key elements of the PRM Framework and the completion of the first round of vendor performance reviews based on COVID-19 and Prototyping TA performance
• selecting BDM Core Technology through a well managed and transparent process
• drafting of the vendor performance management guide for inclusion in the system integrator master services agreement
• conducted 7 prototypes (Cloud, Deployment Approach, Curam capabilities, Data Model and Governance, Workforce and Workload mgt, User Experience and Solution Architecture) to de-risk the programme and inform design decisions, and
• developing a relationship management charter

Allocation of Funds

[Part of the paragraph redacted]. The funding identified in this request represents the Consolidated Revenue Fund portion (which supports the Old Age Security related activities of BDM, Programme Definition Phase).

Anticipated Results

A long-term, multi-phase BDM Programme will make the next generation of benefits processing capable of addressing dynamic client expectations, changing business and economic environment.

BDM is a business-led, IT-enabled transformation that will deliver tangible benefits for clients and employers through a broad range of e-services that are easy to use. Canadians will be provided with an enhanced, consistent, and modern client experience. Wait times will be reduced, applications streamlined, and there will be efficient delivery with faster payment of benefits, proactive communication and status updates to keep clients well-informed.

Funding ($000’s) and FTE

FTE

Existing FTEs – 4

Supps C – 2020 to 2021 FTEs – 20

Total FTEs – 24

Salary

Existing Funding: $536

Supps C – 2020 to 2021: $2,014

Total Funding: $2,550

O and M

Existing Funding: $720

Supps B – Reprofile: $1,781

Supps C – 2020 to 2021: $4,663

Total Funding: $7,164

Total Operating

Existing Funding: $1,256

Supps B – Reprofile: $1,781

Supps C – 2020 to 2021: $6,677

Total Funding: $9,714

EBP

Existing Funding: $144

Supps C – 2020 to 2021: $544

Total Funding: $688

Sub-Total

Existing Funding: $1,400

Supps B – Reprofile: $1,781

Supps C – 2020 to 2021: $7,221

Total Funding: $10,402

Total

Existing Funding: $1,400

Supps B – Reprofile $1,781

Supps C – 2020 to 2021: $7,221

Total Funding: $10,402

Key contact

Name: Annik Casey

Title: DG, Special Projects

Phone number: (819) 654-0569

Approved by

Name: Susan Ingram

Title: Director-General, Special Projects

Phone number: (819) 654-6163

And

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date: February 12, 2021

Date approved in SADMO / COO:

8. Youth Digital Gateway

Issue

Why is Employment and Social Development Canada (ESDC) requesting $5.0 million in funding for the Youth Digital gateway in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

The Youth Digital Gateway (YDG) will establish a Government of Canada (GC) digital platform for services and tools supporting youth employment, skills development and service for the Canada Service Corps (CSC) and the Youth Employment and Skills Strategy (YESS).

Suggested Response

• ESDC is requesting $5.0 million in funding for the Youth Digital Gateway to support work this fiscal year related to the build and preparation work, such as setting up technical environments to support future delivery of digital tools and services that address the needs of the youth segment
• Seeking to be the GC digital channel for youth employment, skills development, learning, and services, the YDG vision will be achieved by providing new online tools and services for youth and youth partners (for example, youth organizations, employers, and broader youth ecosystem) that are accessible through their mobile phones, PC or tablet
• In consultations with young Canadians on the modernization of YESS and the CSC, youth have informed the GC about how they would like to access information and what tools they envision to support them in their transition to the workplace and in taking part in volunteer service
• The YDG project will respond to their suggestions and engage youth directly in the design, co-creation, and testing of new and improved digital tools and services. The funds for 2020 to 2021 will be used to begin the iterative process to meet the 5-year goals by focusing on providing young Canadians an enhanced experience when accessing GC online tools and services and create an opportunities and resource finder tool gathering programs, tools and opportunities aimed at youth
• Budget 2019 announced continued investments in both the Canada Service Corps (CSC) and Youth Employment and Skills Strategy (YESS), which included an investment of approximately $32M over 5 years for the YDG ending in March 2025

Background

In consultations with young Canadians on the modernization of YESS and the CSC, youth have told the GC how they would like to access information and what tools they envision to support them in their transition to the workplace and in taking part in volunteer service. The YDG project will respond to these suggestions and engage youth directly in the design, co-creation, and testing of new and improved digital tools and services.

ESDC is requesting authority to include $5,001,890 in Vote 1 (Operating expenditures, excluding EBP costs of $624,807) for Youth Digital gateway as part of the Supplementary Estimates (C) 2020 to 2021.

The GC is on a modernization journey to improve the GC digital experience for youth for employment, skills development, and service delivery through digital channels. The YDG has been identified as a major project that will advance the digital experience for youth and youth partners (for example, youth organizations, employers, and broader youth ecosystem).

The YDG will deliver 5 digital products over the next 5 years. Digital products can be described as a logical grouping of work (digital content / tools / solutions) required to achieve desired user outcomes and not one single product or solution. They include:

• enhanced Digital Experience - Provide youth with an intuitive, engaging digital experience that meets their needs and expectations
• opportunities and Resource Finder - Enable youth and youth partners to access CSC and YESS programs and services anywhere, any time, and on any device
• youth Account and Personalization - Enable youth and youth partners to receive a personalized experience when interacting with the government through digital channels
• youth Ecosystem Support - Improve the support youth receive from the youth ecosystem by optimizing and enhancing our partners' digital experience, and
• career Assistant - Empower youth to make informed decisions about their future, including potential careers

In addition to establishing a digital channel for youth programming and services, the project will advance the digital architecture and platforms required to lay the groundwork for the delivery of personalized services for youth in Canada. The project will also establish a service design and delivery capability that will enable the GC to co-design and co-create digital services with youth and stakeholders in the youth eco-system. The YDG will work with various stakeholders across the Public Service (such as the Canadian Digital Service) to leverage experience and best practices.

The YDG project will also contribute to the broader GC digital transformation agenda. This includes alignment with ESDC’s Benefits Delivery Modernization (BDM) Programme and digital work stream, where both initiatives will serve as Digital Service Accelerators for common, reusable solutions.

Funding

Budget 2019 committed $32M over 5 years to develop the Youth Digital Gateway. [One sentence redacted].

Expenditure authority was approved on December 17, 2020 to release the remaining Budget 2019 funding of $29.6M ($20.1M for CSC and $9.5M for YESS) over 5 years.

In July 2019, YDG entered a planning phase where user needs, organizational needs, and a product roadmap were defined. The YDG team also sought and received project approval through the Department's Major Project Investment Board on August 31, 2020. Enterprise Architecture Review Board (EARB) endorsement for the YDG technical architecture was received on October 22, 2020.

The YDG team has begun building and is preparing to start delivering the services based on real user needs identified and validated by youth.

Initial releases in 2021 to 2022 will include an enhanced user experience for youth and an opportunities and resource finder to connect youth to benefits, information, and resources available to them. Engagement and testing with youth and youth stakeholders on digital tools and service solutions will be conducted throughout the design to delivery process.

Key contact

Name: David Todd

Title: Executive Director, Special Projects

Phone number: 819-654-5520

Approved by

Name: Susan Ingram

Title: Director General, Major Projects Execution

Phone number: 819-654-6163

Date

Date approved in SADMO / COO:

9. Safeguarding Canadians’ Personal Information

Issue

Why is Employment and Social Development Canada (ESDC) requesting $3.1 million in funding for Safeguarding Canadians’ Personal Information in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

It is critical that the Government of Canada continue to invest in measures to protect the personal information of Canadians.

Suggested Response

• The Government of Canada is committed to the timely, efficient, and accurate delivery of its programming, benefits and services and to protecting the integrity and privacy of the personal and sensitive information entrusted to it by Canadians
• ESDC is the federal government's lead organization responsible for developing, managing and delivering a range of social programs and services. This mandated work inherently involves the collection of personal information from almost all Canadians at various points throughout their lives
• Accurately providing the right programs, benefits and services starts with acquiring and maintaining the right information from Canadians, and ensuring that this data is effectively safeguarded
• The proposed investment of $3.1 million, in addition to $14 million received from the EI Operating Account, will enable the Government to continue to strengthen its internal access monitoring and to support the automation of death notification processes with provinces, increasing its capacity to protect Canadians’ personal information against both internal and external threats
• These investments will advance work on an access monitoring platform and program that will provide ESDC with the visibility and traceability of the information accessed internally by employees across its programs, applications and databases
• Funding will also support Provinces in the shift from paper to digital death notification processes enabling a more timely exchange of accurate information to reduce the risk of overpayment and fraud for benefits

Background

ESDC collects personal information from almost all Canadians to facilitate timely, efficient, and accurate delivery of its programs and services.

As part of its core responsibilities, ESDC is committed to protecting the integrity and privacy of the personal data that it collects and retains through strong, well-established policies and procedures, which are continuously reviewed, updated and improved.

A recent risk and vulnerability assessment conducted by ESDC illustrates that while there are a number of security measures and controls in place, the Department needs to keep pace in an increasingly digital environment and do more to protect itself - and the information disclosed to it by Canadians - from proliferating and increasingly sophisticated threats.

The Office of the Privacy Commissioner’s 2018 to 2019 Survey of Canadians on Privacy highlighted that 92% of Canadians have voiced concern about the protection of their privacy. In addition, 90% of Canadians have expressed feelings of fear about the potential for their personal information to be used to attempt or to steal their identity.

In 2020 to 2021, total funding of $17.81 million is required strengthen ESDC's capacity to protect the privacy of personal and sensitive information of Canadians. The program is sourced from the EI Operating Account for an amount of $14.0 million and the Consolidated Revenue Fund for an amount of $3.1 million.

Of this amount, funding of $3.1 million from the Consolidated Revenue Fund (CRF) is required for 2 priorities:

• CRF funding in the amount of $0.4 million is required in 2020 to 2021 to advance work on a near real-time Access Monitoring platform and program that will provide ESDC with the visibility and traceability of the information accessed internally by employees across its programs, applications and databases
• in addition, CRF funding in the amount of $2.7 million is required in 2020 to 2021 to enable ESDC to work with federal-provincial/territorial (F-P/T) partners to advance a shared approach to client identity validation that will make it is easier for Canadians to securely access the Government of Canada's services

These investments will help to improve the integrity activities across ESDC programs, contributing to the Department’s continuing efforts to reduce, prevent, identify and address error, abuse, fraud and potential identity theft.

It will also ensure that ESDC is better equipped to respond appropriately and effectively to existing and emerging threats of insider malfeasance, data hacks or leakages and privacy breaches.

Key Quotes

“Privacy is one of the single biggest issues of our time and our government is working hard to protect the privacy of Canadians in this digital age.”

- The Honourable Jean-Yves Duclos, President of the Treasury Board of Canada

“Our government is committed to making sure that Canadians’ personal information is protected and secure.”

– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

Funding ($000’s) and FTE

FTE

Existing FTEs – 0

Supps C – 2020 to 2021 FTEs – 13

Total FTEs – 13

Salary

Existing Funding $0

Supps C – 2020 to 2021: $1,169

Total Funding: $1,169

O and M

Existing Funding: $0

Supps C – 2020 to 2021: $1,967

Total Funding: $1,967

Total Operating

Existing Funding: $0

Supps C – 2020 to 2021: $3,136

Total Funding: $3,136

EBP

Existing Funding: $0

Supps C – 2020 to 2021: $316

Total Funding: $316

Total

Existing Funding: $0

Supps B – 2020 to 2021: $3,452

Total Funding: $3,452

Prepared by

Name: Jessica Stark

Title: Policy Officer

No phone number: 613-262-5125

Key contact

Name: Jennifer Carter

Title: Senior Director

Phone number: 613-799-1176

Approved by

Name: Rachel Wernick

Title: Senior Assistant Deputy Minister, Skills and Employment Branch

Phone number: (819) 654-5991

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date: February 12, 2021

10. Resumption of in-person access at Service Canada Centres

Issue

Why is Employment and Social Development Canada (ESDC) requesting $2.6 million in funding for Service Canada Centres in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Service Canada Centres; Funding

Context

Why is ESDC seeking $2.6 million in founding for SCC’s for the fiscal year ending March 31, 2021?

Suggested Response

• To reopen SCCs safely while adhering to physical distancing measures, the department introduced Commissionaires/security guards stationed at the entrance to control entry, confirm health status and manage the number of walk-ins based on capacity limits while enhancing cleaning protocols in every SCCs
• The department also installed see-through barriers (for example, Plexiglas) at client-receiving workstations and floor markers, signage and barriers to control flow
• The department is seeking $2.6 million in 2020 to 2021 to meet the cost of providing in-person services while protecting the health and safety of clients and employees during the COVID-19 pandemic

Background

Service Canada provides in-person service through its network of 604 points of service; 317 full-time and part-time Service Canada Centres, 15 Service Delivery Partners, 247 Scheduled Outreach sites and 25 offices offering only passport services.

SCCs closed to the public in March 2020 as a temporary measure to protect the health and safety of employees and the public during the COVID-19 pandemic.

At the same time, a new approach to service delivery was launched where clients can request help online and are then contacted by telephone within 2 business days. This online/callback service enables the continued delivery of services while protecting the health of clients and employees.

As local public health conditions permitted, 303 Service Canada Centres reopened to the public since July 2020.

To deliver in-person services, the department introduced Commissionaires/security guards stationed at the entrance to control entry, confirm health status and manage the number of walk-ins based on capacity limits while enhancing cleaning protocols in every SCCs.

Total funding of 2.6 million is requested through the 2020 to 2021 Supplementary Estimates C to meet costs associated with physical distancing requirements to protect the health and safety of citizen and employees.

Total Operating

Existing Funding: $0

Supps C – 2020 to 2021: $2,600

Total Funding: $2,600

Prepared by

Name: Joël Parent

Title: Director, Citizen Service Branch

No phone number: 819-921-7334

Approved by

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

11. Improving Gender and Diversity Outcomes in Skills programming

Issue

Why is Employment and Social Development Canada (ESDC) requesting $0.9 million in funding for improving Gender and Diversity Outcomes in Skills Programming in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Improving Outcomes in Skills Programming

Context

ESDC is requesting $0.9 million in funding to undertake work on an initiative announced in Budget 2019 to develop a strategy to better measure, monitor and address results across skills programming in support of addressing gender disparity and removing barriers for underrepresented groups.

Suggested Response

• The Government of Canada is committed to improving gender and diversity outcomes in skills programs.
• Budget 2019 announced new funding of $5.0 million over 5 years to develop a strategy to better measure, monitor and address gender disparity and promote access of underrepresented groups across skills programming.
• This funding will enable ESDC to build on work already underway with key partners to collect, monitor and analyse the data required to improve the inclusiveness of skills programming.
• Improved data is critical to undertake the GBA+ analysis that ensures the Government’s skills programs are inclusive and ensure all Canadians can get the skills they need to find and keep good jobs today and in the future.

Background

In Budget 2018, the Government committed to a horizontal review of skills programming. The suite of federal skills programs was reviewed to ensure Canadians are well-supported in navigating a rapidly-changing labour market. Of particular significance, Recommendation 15 of the Review stated that the Government should:

a) systematically meet differentiated needs (for example as identified using a GBA+ evaluation) on an ongoing basis through the design, implementation, monitoring, evaluation and redesign of skills programs, and

b) test and measure innovative interventions for targeted groups with a view to incorporating what works back into existing programs

In response to this recommendation, Budget 2019 provided $5,000 000 over 5 years, beginning in 2019 to 2020, for Employment and Social Development Canada to develop a Strategy to better measure, monitor and address results across skills programming in support of addressing gender disparity and removing barriers for underrepresented groups.

Budget 2019 indicated that the Strategy could build on work already underway to improve the quality and accessibility of labour market information, in partnership with Statistics Canada (StatCan) and the Labour Market Information Council (LMIC).

To respond to the Budget 2019 direction, Employment and Social Development Canada has established a GBA+ Unit and a GBA+ Community of Practice in the Skills and Employment Branch to implement the initiative.

The Unit and Strategy focuses on 2 key areas:

Better Data – identify and address gaps in skills and training program data collection and analysis to strengthen analysis, measurement and monitoring of GBA+ results. This work will focus on the development of a Data Design and Infrastructure Strategy to ensure Skills and Employment Branch programs have access to a full range of quantitative and qualitative data sources to enhance organizational measurement and monitoring capacity.

Collaboration with Labour Market Information Council, Statistics Canada, Women and Gender Equality, and other key organisations is underway to support this work.

Better Analysis – develop and deliver training to increase ESDC employee ability to incorporate thorough GBA+ analysis and approaches in skills and training programs; and

The strategy and new unit will drive improvement of GBA+ analysis and results measurement in skills and training program development and implementation. This improved capacity will support evidence and data-driven advice and decisions and ensure gender inequality and access for underrepresented groups is fully integrated into the design and delivery of skills programming. This work will include developing and offering a training curriculum to all employees.

This initiative is still in early stages, and is ramping up. To date, funding has been used to:

• establish the GBA+ unit, which currently has 3 FTEs and 2 partial FTEs
• contract 4 research projects for under $40K each for the 2020 to 2021 fiscal year, which will help to identify data and research needs for future years of the initiative

Overall, the funding sought in 2020 to 2021 as well as in subsequent years of the initiative, will enhance the ability to understand potential opportunities to collect and use program data to drive towards more inclusive skills programming by:

a) determining the data needed to effectively measure outcomes for the skills development and labour market participation of different populations

b) providing the tools to determine which programs and interventions are currently improving labour market outcomes for which populations

c) identifying barriers faced by different populations when accessing labour market programming and services

d) building capacity in program areas to incorporate GBA+ at all stages of policy, and

e) using advanced and innovative statistical techniques to estimate program effects at the individual level specific to different intersectionalities of participant characteristics

Funding ($000’s) and FTE

FTE

Existing FTEs – 1

Supps C – 2020 to 2021 FTEs – 4

Total FTEs – 5

Salary

Existing Funding: $102

Supps C – 2020 to 2021: $373

Total Funding: $475

O and M

Existing Funding: $16

Supps C – 2020 to 2021: $523

Total Funding: $539

Total Operating

Existing Funding: $118

Supps C – 2020 to 2021: $896

Total Funding: $1,014

EBP

Existing Funding: $27

Supps C – 2020 to 2021: $101

Total Funding: $128

Sub-Total

Existing Funding: $145

Supps B – 2020 to 2021: $997

Total Funding: $1,142

Total

Existing Funding: $145

Supps C – 2020 to 2021: $997

Total Funding: $1,142

Prepared by

Name: Jessica Stark

Title: Policy Officer

No phone number: 613-262-5125

Key contact

Name: Jennifer Carter

Title: Senior Director

Phone number: 613-799-1176

Approved by

Name: Rachel Wernick

Title: Senior Assistant Deputy Minister, Skills and Employment Branch

Phone number: (819) 654-5991

Date: March 10, 2021

12. Indigenous Skills and Employment Training agreement between ESDC and Kativik Regional Government

Issue

Why is Employment and Social Development Canada (ESDC) requesting $0.6 million for a Transfer from the Department of Indigenous Services to the Department of Employment and Social Development for the Kativik Regional Government (KRG) to streamline delivery of youth programming in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Key facts

• Since 2005, Indigenous Services Canada (ISC) has transferred contribution funds (Vote 10) to ESDC to support KRG’s Youth Employment Strategy (YES).

Response

• In March 2020, the Prime Minister announced additional investments of $492 million through the First Nations and Inuit Youth Employment Strategy (FNIYES) across Canada who are facing barriers to employment
• This funding will complement the programs and services that the Kativik Regional Government (KRG) delivers with respect to employment and training
• This transfer to the KRG, provided through the Indigenous Skills and Employment Training agreement between ESDC and KRG, consolidates funding, allowing for a reduction in administrative burden on KRG, especially in reporting, and allows for more streamlined service delivery to youth in Nunavik

Background

The transfer of funds from ISC to ESDC is to support youth programming and services delivered by ESDC to the KRG. The program helps young people aged 15 to 30, particularly those facing barriers to employment, get career information and gain the skills, work experience and abilities they need to make a successful transition into the labour market.

Signed in 1975, the James Bay and Northern Quebec Agreement (JBNQA) includes treaty obligations with respect to employment and training programs for KRG citizens. Representatives from ESDC, the KRG, and public/private partners have developed 3 (3) generations of arrangements designed to implement enhanced employment and training programs that effectively address local labour market needs. These arrangements ensure that Canada meets its human resources development obligations under the JBNQA.

In 2005, an arrangement was reached between ESDC and the KRG where responsibility for the delivery of employment, skills development training, and child care services to the 14 communities of Nunavik would be delivered through the KRG. To increase alignment of programming, and streamlining of services and reporting, INAC, ESDC, and the KRG also agreed that INAC’s First Nations and Inuit Youth Employment Strategy (FNIYES) funding would be transferred to the KRG through an existing contribution agreement.

From 2011 to 2012 to present, the KRG’s base funding level for this program has been at $497,000 due to ISC decision to fund the KRG based on population, to better align with the FNIYES funding received by other Indigenous organizations.

Funds provided to ESDC under the ILA are to be expended directly and solely for the purpose of administrating the FNIYES.

Citations / Key quotes

N/A

Vote 5 G and C

Existing Funding: $0

Supps B – 2020 to 2021: $497

Supps C – 2020 to 2021: $560

Total Funding: $1,057

Prepared by

Name: Melanie Regimbald

Title: Manager, Indigenous Program Directorate

Phone number: 819-360-9183

Name: Gillian Campbell

Title: Director, Indigenous Program Directorate

Phone number: 819-654-1663

Key contact

Name: Damon Rourke

Title: A/ Director General, Indigenous Program Directorate

Phone number: 819-654-2490

Approved by

Name: Stephanie Hébert

Title: ADM, POB

Phone number: 819-654-2447

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

13. Internal Reallocation of Resources to Write-off Debts

Issue

Why is Employment and Social Development Canada (ESDC) requesting $25,064 for an internal reallocation to Write-off of debts owed to the Crown - related to overpayments from the Government Annuities Account (GAA) in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Key Facts

• Government Annuities Account write-offs are approved by Treasury Board under section 25(2) of the Financial Administration Act (FAA). The amount of write-offs for 2020 to 2021 is $25,064.

Response

• The Department is requesting a transfer of $25,064 from Vote 1 (Operating Expenditures) to Vote 10 (Debt write-off – Government Annuities Account) to allow the write-off of debts due to the Crown related to 465 overpayments from the Government Annuities Account
• The Government Annuities Account write offs pertain to debts from 2015 to 2020
• The majority of overpayments result from late notification of death
• After all collection efforts have been exhausted, and overpayments cannot be recovered, the debts are then considered for write off
• The write off is done in accordance with the Financial Administration Act

Background

ESDC is seeking authority to transfer from ESD Vote 1, Operating expenditures, $25,064 in 2020 to 2021 to a new vote, Vote 10, within ESD to be entitled “Debt write-off – Government Annuities Account” – Pursuant to subsection 25(2) of the FAA, to write-off from the Accounts of Canada 465 debts due to Her Majesty in right of Canada amounting to $25,064 in 2020 to 2021 related to overpayments from the GAA.

These write offs pertain to debts from 2015 to 2020.

The appropriate Minister of a Department, or an officer authorized by that Minister in writing, may write‑off from the accounts of the Department a debt subject to subsection 25(2) of the Financial Administrative Act (FAA) and section 5 of the Debt Write‑off Regulations, 1994. When the Department is advised a person is deceased through a death certificate, information provided by next of kin, returned mail, or other means, the recovery process begins:

• account receivable is established when a payment is made after date of death
• letter to client or next of kin and banking institutions
• file is brought forward for 8 weeks
• amounts under $20: write-off request after 4 weeks if collection is unsuccessful, and
• amount over $20: follow-up letters to representatives and request for reimbursement from cashing bank

After 3 attempts are made to collect overpayment with no success, a write-off request letter is generated.

The majority of overpayments result from late notification of death, as illustrated in the following table:

Table 2: Debt Write-off Details

Reason for Write-off	# of Accounts	% of Accounts	Balance	% of Write-off
Further administrative expenses or other costs of collecting the debt are not justifiable in relation to the amount of the debt or the probability of collection (section 4(2)).	284	61%	$2,419.44	10%
The debtors are deceased and there is no known estate (section 4(1) and 6(a), (b) and (c) (viii)).	181	39%	$22,644.09	90%
Total	465	100%	$25,063.53	100%

Key quotes

None

Prepared by

Name: Connie Caloia

Title: Executive Director Special Projects

Phone number: (613) 716-1498

Key Contact

Name: Nathalie Manseau

Title: Senior Director General, Integrated Corporate Accounting and Accountability Directorate

Phone number: (613) 608-4783

Approved by

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date: February 12, 2021

14. Indigenous Skills and Employment Training funding transfer to CIRNAC for the Cree Nation Government

Issue

Why is Employment and Social Development Canada (ESDC) requesting to transfer $60,000 in funding to Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) to support the Indigenous Skills an Employment (ISET) Program?

Key Facts

• In April 2019, ESDC launched the Indigenous Skills and Employment Training (ISET) program, the successor to the Aboriginal Skills and Employment Training Strategy (ASETS). The ISET program includes a number of new flexibilities, such as longer-term agreements, less administrative oversight and a different approach with modern treaty and self-governing groups
• This approach under the ISET program included the transfer of program funding to the Department of Crown-Indigenous Relations and Northern Affairs for a number of modern treaty and self-governing groups, including the Cree Nation Government
• An outstanding amount of $60,000 for 2020 to 2021 is being transferred from ESDC to the Department of CIRNAC through the 2020 to 2021 Supplementary Estimates (C) accompanied by an interdepartmental letter of agreements for the Cree Nation Government. [1 sentence has been redacted]

Response

• Employment and Social Development Canada (ESDC) is committed to supporting the self-determination of Indigenous people, improving service delivery and advancing reconciliation through the design and delivery of its programs and services
• The outstanding amount of $60,000 for 2020 to 2021 is being transferred from ESDC to the Department of CIRNAC through the 2020 to 2021 Supplementary Estimates (c) [part of the sentence redacted]

Background

Signed on November 11, 1975, the James Bay and Northern Quebec Agreement (JBNQA) includes treaty obligations with respect to employment and training programs for the Cree Nation Government's (CNG) citizens. Representatives from ESDC, the CNG, and public/private partners have developed 3 generations of arrangements designed to implement enhanced employment and training programs that effectively address local labour market needs. These arrangements ensure that Canada meets its human resources development obligations under the JBNQA.

To increase alignment of programming, and streamlining of services and reporting, CIRNAC, ESDC, and the CNG agreed that ISET funding would be transferred to the CNG as a grant through the Cree Associations Amending Agreement.

Between 2011 and 2019 the CNG served 9,925 clients through the Aboriginal Skills and Employment Training Strategy (ASETS) and the ISET Program. Of the total clients served, about 2,300 were employed, while 860 returned to school.

Program’s Objectives

1) Indigenous Employment and Training Strategy Program

To continue to support the development of the Indigenous labour market and to reduce the employment and skills gaps between Indigenous and non-Indigenous people, Budget 2018 invested $2 billion over 5 years and $408.2 million per year ongoing to support the creation of the ISET program, which replaced the ASETS.

The objective of the ISET program is reduce the employment and skills gaps between Indigenous and non-Indigenous people, focusing on moving clients along the skills continuum and supporting them in achieving their employment goals.

The ISET program builds upon the success of ASETS and introduces several enhancements including a distinctions-based framework; greater stability of funding with 10-year agreements; improved flexibility; reduced administrative burden; strengthened supports for information gathering, such as labour market information; and stronger links to other programs.

Allocation of Funds

ESDC currently provides the Consolidated Revenue Fund (CRF) portion of the ISET program to the CNG as a grant. This funding approach aligns with the government’s stated objectives to advance reconciliation and promote Indigenous self-determination.

ESDC currently provides $60,000 ISET funding to support skills and employment training services to youth delivered by the CNG. [One sentence has been redacted].

[Part of this sentence has been redacted], $60,000 in CRF funding will be transferred to the Department of CIRNAC through the 2020 to 2021 Supplementary Estimates (C). [One sentence has been redacted].

Anticipated Results

ESDC continues to work with Indigenous partners on implementation of the ISET program, such as the development of distinctions-based performance measurement strategies. This work will enable ESDC to report on the 2 key outcomes of the ISET program, which is to help reduce the employment and skills gaps between Indigenous and non-Indigenous people, and enable Indigenous partners to establish appropriate measures of success and report to their citizens.

ESDC has negotiated an aggregated data-sharing agreement with CNG to gain information on key indicators of labour market performance. This data will inform ESDC on the effectiveness of funding in reducing skills and employment gaps. The nature and frequency of data-sharing is specified in the agreement. The data provided will also inform the ISET program evaluation.

Monitoring and Measurement

Financial monitoring and measurement is not applicable to these funds as the funds will be converted to grant funding.

Financial accountability for the funds is specified in the grant agreement with the CNG.

The Indigenous Skills and Employment Training (ISET) program will undergo a program evaluation in 2024 to 2025. The aggregated data provided by the CNG through data-sharing agreements will inform this evaluation.

Key quotes

None

Vote 5 G and C

Existing Funding: $0

Supps C – 2020 to 2021 – Cree - $60

Supps C – 2020 to 2021 – Self Government Yukon First Nation: $60

Total Funding: $120

Prepared by

Name: Melanie Regimbald

Title: Manager, Indigenous Program Directorate

No phone number: 819-360-9183

Name: Gillian Campbell

Title: Director, Indigenous Program Directorate

No phone number: 819-654-1663

Key contact

Name: Damon Rourke

Title: acting Director General, Indigenous Program Directorate

Phone number: 819-654-6893

Approved by

Name: Stephanie Hébert

Title: ADM, POB

Phone number: 819-654-2447

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

15. Indigenous Skills and Employment Training funding transfer to CIRNAC for Self-Governing Yukon First Nations

Issue

Why is Employment and Social Development Canada (ESDC) requesting to transfer $60,000 in funding to Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) to support the Indigenous Skills and Employment Training (ISET) Program?

Key Facts

• In April 2019, ESDC launched the Indigenous Skills and Employment Training (ISET) program, the successor to the Aboriginal Skills and Employment Training Strategy (ASETS). The ISET program includes a number of new flexibilities, such as longer-term agreements, less administrative oversight, greater recognition and a different approach with modern treaty and self-governing groups
• This approach under the ISET program included the transfer of program funding to the Department of Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) for a number of modern treaty and self-governing groups, including the 11 Self-Governing Yukon First Nations (SGYFNs)
• An outstanding amount of $60,000 for 2020 to 2021 is being transferred from ESDC to the Department of CIRNAC through the 2020 to 2021 Supplementary Estimates (C) accompanied by an interdepartmental letter of agreements for the 11 SGYFNs. [One sentence has been redacted]

Response

• ESDC is committed to supporting the self-determination of Indigenous people, improving service delivery and advancing reconciliation through the design and delivery of its programs and services

[One sentence redacted]

Background

On May 29, 1993, the Government of Canada, the Government of Yukon, and the Council for Yukon Indians (now known as the Council of Yukon First Nations, CYFN), signed the Umbrella Final Agreement (UFA). The UFA formed the basis for the negotiation of each First Nation's final agreement. The final agreements provided for the negotiation of self-government agreements, which allow SGYFNs to make decisions in relation to their lands, resources, governments and programs.

Land claims and self-government agreements came into effect for the 11 SGYFNs on the following dates:

• Vuntut Gwitchin First Nation: February 14, 1995
• Champagne and Aishihik First Nations: February 14, 1995
• First Nation of Nacho Nyak Dun: February 14, 1995
• Teslin Tlingit Council: February 14, 1995
• Selkirk First Nation: October 1, 1997
• Little Salmon/Carmacks First Nation: October 1, 1997
• Tr'ondëk Hwëch'in: September 15, 1998
• Ta'an Kwach'an Council: April 1, 2002
• Kluane First Nation: February 2, 2004
• Kwanlin Dun First Nation: April 1, 2005
• Carcross/Tagish First Nation: January 9, 2006

To increase alignment of programming and streamlining of services and reporting, CIRNAC, ESDC, and the 11 SGYFNs agreed that the Consolidated Revenue Fund (CRF) portion of their ISET program funding would be transferred to the SGYFN as a grant through their Fiscal Transfer Agreements (FTAs).

Between 2011 and 2019, the CYFN served 2,952 clients through the ASETS and the ISET Program, of which 2,039 completed their programs.

Program’s Objectives

1) Indigenous Skills and Employment Training (ISET) Program

To continue to support the development of the Indigenous labour market and to reduce the employment and skills gaps between Indigenous and non-Indigenous people, Budget 2018 invested $2 billion over 5 years and $408.2 million per year ongoing to support the creation of the ISET program, which replaced the ASETS.

The objective of the ISET program is to reduce the employment and skills gaps between Indigenous and non-Indigenous people, focusing on moving clients along the skills continuum and supporting them in achieving their employment goals.

The ISET program builds upon the success of ASETS and introduces several enhancements including a distinctions-based framework; greater stability of funding with 10-year agreements; improved flexibility; reduced administrative burden; strengthened supports for information gathering, such as labour market information; and stronger links to other programs.

Allocation of Funds

ESDC currently provides the CRF portion of the ISET program to the 11 SGYFNs as a grant. This funding approach aligns with the government’s stated objectives to advance reconciliation and promote Indigenous self-determination.

[One sentence redacted].

[Part of this sentence has been redacted] in CRF funding will be transferred to the Department of CIRNAC through the 2020 to 2021 Supplementary Estimates (C). [One sentence has been redacted].

Anticipated Results

ESDC continues to work with Indigenous partners on implementation of the ISET program, such as the development of distinctions-based performance measurement strategies. This work will enable ESDC to report on the 2 key outcomes of the ISET program, which are to help reduce the employment and skills gaps between Indigenous and non-Indigenous people, and enable Indigenous partners to establish appropriate measures of success and report to their citizens.

ESDC has negotiated an aggregated data-sharing agreement with the 11 SGYFNs to gain information on key indicators of labour market performance. This data will inform ESDC on the effectiveness of funding in reducing skills and employment gaps. The nature and frequency of data-sharing is specified in the agreement. The data provided will also inform the ISET program evaluation.

Monitoring and Measurement

Financial monitoring and measurement is not applicable to these funds as the funds will be converted to grant funding.

Financial accountability for the funds is specified in the grant agreement with the 11 SGYFNs.

The ISET program will undergo a program evaluation in 2024 to 2025. The aggregated data provided by the 11 SGYFNs through data-sharing agreements will inform this evaluation.

Key quotes

None

Vote 5 G and C

Existing Funding: $0

Supps C – 2020 to 2021 – Cree - $60

Supps C – 2020 to 2021 – Self Government Yukon First Nation: $60

Total Funding: $120

Prepared by

Name: Melanie Regimbald

Title: Manager, Indigenous Program Directorate

No phone number: 819-360-9183

Name: Gillian Campbell

Title: Director, Indigenous Program Directorate

No phone number: 819-654-1663

Key contact

Name: Damon Rourke

Title: acting Director General, Indigenous Program Directorate

Phone number: 819-654-6893

Approved by

Name: Stephanie Hébert

Title: ADM, POB

Phone number: 819-654-2447

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

16. Old Age Security (OAS) Pension

Issue

Why is Employment and Social Development Canada (ESDC) projecting a decrease of $101.1 million for the Old Age Security Program in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

It is estimated that approximately $44.9 billion in Old Age Security (OAS) benefits will be paid to eligible beneficiaries in 2020 to 2021.

Suggested Response

• The change in forecasted expenditures for Old Age Security program benefits is the result of changes in the forecasted monthly rate, the estimated number of beneficiaries, and the estimated amount recovered from higher-income seniors through the Old Age Security Recovery Tax
• The net effect is a decrease of $101.1 million in estimated Old Age Security expenditures for 2020 to 2021
• The decrease represents a more accurate estimate of expenditures than what was possible when the Main Estimates were prepared

Background

The OAS program is the cornerstone of Canada's retirement income system and provides a minimum level of income to seniors in recognition of the contribution that they have made to Canadian society and the economy.

The expenditure forecast for the OAS program in the 2020 to 2021 Main Estimates varied from the 2020 to 2021 Supplementary estimates; specifically, there is an overall decrease of $101.1 million in forecasted expenditures for the OAS program for 2020 to 2021, as estimated by Finance Canada in Fall Economic Statement 2020. This variance is the result of changes in the forecasted average monthly rate for all OAS benefits, as well as changes in the forecasted number of beneficiaries and the total amount recovered from higher‑income seniors through the OAS Recovery Tax. A more detailed breakdown is provided below:

OAS pension expenditure estimates - decrease of $100.1 million

The decrease of $100.1 million is an amalgamation of 3 components:

• a decrease in the forecasted average monthly rate for the OAS pension from $593.89 to $585.78, which accounts for a decrease of $648.4 million. While the monthly rate did not decline, the anticipated increases to the Consumer Price Index in 2020 to 2021 were lower than the estimates used for the Main Estimate forecasts
• an increase in the forecasted number of OAS pension beneficiaries from 6.62 million to 6.65 million, which accounts for an increase of $232.6 million
• a decrease in the anticipated OAS Recovery Tax, which accounts for an increase in estimated OAS pension expenditure of $315.7 million

Funding (in thousands of dollars)

Old Age Security Payments

Main Estimates 2020 to 2021: $44,966,057

Supplementary Estimates (C) 2020 to 2021: $(100,099)

Total Estimated Spending: $44,865,958

Prepared by

Name: Graham Barton

Title: Policy Analyst

No phone number: 819-654-1657

Key contact

Name: Kevin Wagdin

Title: Director, Old Age Security Policy and Public Pension Statistics

Phone number: 613-858-9247

Approved by

Name: Alexis Jonathan Conrad

Title: Senior Assistant Deputy Minister, Income Security and Social Development Branch

Phone number: 613-868-8004

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

17. Guaranteed Income Supplement (GIS)

Issue

Why is Employment and Social Development Canada (ESDC) projecting an increase of $37.8 million for the Guaranteed Income Supplement Payments program in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

• It is estimated that approximately $14.0 billion in Guaranteed Income Supplement Payments benefits will be paid to eligible beneficiaries in 2020 to 2021

Suggested Response

• The change in forecasted expenditures for Guaranteed Income Supplement Payments benefits is the result of changes in the forecasted monthly rate and the estimated number of beneficiaries
• The net effect is an increase of $37.8 million in estimated Guaranteed Income Supplement Payments expenditures for 2020 to 2021
• The increase represents a more accurate estimate of expenditures than what was possible when the Main Estimates were prepared

Background

The expenditure forecast for the GIS program in the 2020 to 2021 Main Estimates varied from the 2020 to 2021 Supplementary estimates; specifically, there is an overall increase of $37.8 million in forecasted expenditures for the GIS program for 2020 to 2021, as estimated by Finance Canada in Fall Economic Statement 2020. This variance is the result of changes in the forecasted average monthly rate for all GIS benefits and changes in the forecasted number of beneficiaries.

A more detailed breakdown is provided below:

• the increase of $37.8 million is an amalgamation of 2 components:
• a decrease in the estimated number of beneficiaries from 2.22 million to 2.21 million, which accounts for a decrease of $57.3 million
• an increase in the forecasted average monthly rate from $522.54 to $526.14, which accounts for an increase of $95.1 million

Funding (in thousands of dollars)

Guaranteed Income Supplement

Main Estimates 2020 to 2021: $13,921,587

Supplementary Estimates (C) 2020 to 2021: $37,753

Total Estimated Spending: $13,959,340

Prepared by

Name: Graham Barton

Title: Policy Analyst

No phone number: 819-654-1657

Key contact

Name: Kevin Wagdin

Title: Director, Old Age Security Policy and Public Pension Statistics

Phone number: 613-858-9247

Approved by

Name: Alexis Jonathan Conrad

Title: Senior Assistant Deputy Minister, Income Security and Social Development Branch

Phone number: 613-868-8004

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

18. Allowance Payments

Issue

Why is Employment and Social Development Canada (ESDC) projecting a decrease of $5.8 million for the Allowance Payments Program in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

It is estimated that approximately $0.6 billion in Allowance Payments benefits will be paid to eligible beneficiaries in 2020 to 2021.

Suggested Response

• The change in forecasted expenditures for the Allowance Payments program benefits is the result of changes in the forecasted monthly rate and the estimated number of beneficiaries
• The net effect is a decrease of $5.8 million in estimated Allowance Payments expenditures for 2020 to 2021
• The decrease represents a more accurate estimate of expenditures than what was possible when the Main Estimates were prepared

Background

The expenditure forecast for the Allowance Payments program in the 2020 to 2021 Main Estimates varied from the 2020 to 2021 Supplementary estimates; specifically, there is an overall decrease of $5.8 million in forecasted expenditures for the Allowance Payments program for 2020 to 2021, as estimated by Finance Canada in Fall Economic Statement 2020. This variance is the result of changes in the forecasted average monthly rate for all OAS and changes in the forecasted number of beneficiaries and the total amount recovered from higher‑income seniors through the OAS Recovery Tax. A more detailed breakdown is provided below:

Allowance Payments – decrease of $5.8 million

The decrease of $5.8 million is the amalgamation of 2 components:

• a decrease in the estimated number of beneficiaries from 85,900 to 85,800, which accounts for a decrease of $0.6 million
• a decrease in the forecasted average monthly rate from $621.11 to $616.09, which accounts for a decrease of $5.2 million. While the monthly rate did not decline, the anticipated increases to the Consumer Price Index in 2020 to 2021 were lower than the estimates used for the Main Estimate forecasts

Funding (in thousands of dollars)

Allowance Payments

Main Estimates 2020 to 2021: $640,024

Supplementary Estimates (C) 2020 to 2021: $(5,830)

Total Estimated Spending: $634,194

Prepared by

Name: Graham Barton

Title: Policy Analyst

No phone number: 819-654-1657

Key contact

Name: Kevin Wagdin

Title: Director, Old Age Security Policy and Public Pension Statistics

Phone number: 613-858-9247

Approved by

Name: Alexis Jonathan Conrad

Title: Senior Assistant Deputy Minister, Income Security and Social Development Branch

Phone number: 613-868-8004

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

19. Canada Disability Savings Grants

Issue

Why is Employment and Social Development Canada (ESDC) requesting a decrease of $40.6 million for the Canada Disability Savings Grant Program in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

• The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help people with severe and prolonged disabilities and their families save for the future. At the end of 2018, approximately 33.7% of Canadians aged 0 to 49 who are eligible for the Disability Tax Credit (DTC) had opened an RDSP
• As of the end of October 2020, RDSP assets are now worth more than $6.52 billion. Since the implementation of the program in December 2008, 208,933 registered plans have been opened, into which the Government has paid $2.89 billion in grants and $1.28 billion in bonds. On average, an individual plan has approximately $31,700 in savings

Suggested Response

• The decrease of $40.6 million in Canada Disability Savings Grant Program expenditures is expected includes:
• a decrease of $40.6 million in Canada Disability Savings Grant expenditures, and
• a decrease of $200.5 million in Canada Disability Savings Bond expenditures
• This reduction is largely due to a difference between forecast and actual expenditures. Specifically, the 2020 to 2021 Main Estimates was prepared based on a forecast simulation, which overestimated expenditures. The program has since adjusted its approach to forecasting and the future model will rely more heavily on the use of actual historical data to ensure a more accurate forecast.
• As in previous years, bond and grant forecasts will continue to be adjusted to better reflect the trends in actual expenditures in bonds and grants.

Background

Program objectives

The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help Canadians with severe and prolonged disabilities and their families save for the future. To help enhance their long term savings, Canadians who have an RDSP may also be eligible for grants and bonds:

• Canada Disability Savings Grant: is a matching grant where the Government pays into an RDSP matching grants of up to 300%, depending on the beneficiary's family income and contribution. The maximum Grant amount is $3,500 per year, up to a lifetime maximum of $70,000. Grants are paid into RDSPs on contributions that are made up to and including December 31 of the year that the beneficiary turns 49 years of age
• Canada Disability Savings Bond: is money the Government contributes to the RDSPs of low- and modest-income Canadians. A beneficiary, who qualifies for the bond, can receive up to $1,000 a year, depending on the beneficiary’s family income, up to a lifetime limit of $20,000. Bonds are paid into the RDSP if an application has been made on or before December 31 of the year the beneficiary turns 49 years of age. No contributions to an RDSP are required to receive the bond
• The establishment of the RDSP is the result of recommendations made in the report, A New Beginning, prepared by the Expert Panel on Financial Security for Children with Severe Disabilities (Expert Panel) in 2006. Budget 2007 subsequently announced the introduction of the RDSP. In December 2008, financial institutions began offering the RDSP
• Canada Disability Savings Grant and Bond payments are statutory payments made from the Consolidated Revenue Fund

Funding ($000’s)

CDSG

Existing Funding: $478,032

Supps C – 2020 to 2021: $(40,602)

Total Funding: $437,430

CDSB

Existing Funding: $401,528

Supps C – 2020 to 2021: $(200,516)

Total Funding: $201,012

Total

Existing Funding: $879,560

Supps C – 2020 to 2021: $(241,118)

Total Funding: $638,442

Prepared by

Name: Michelle Wareham

Title: Policy Analyst

No phone number: 819-654-3674

Key contact

Name: Joanne Winter

Title: Director of Programs, ODI

Phone number: 819-624-7711

Approved by

Name: Kate Rafter

Title: Executive Director, ODI

Phone number: 819-654-5577

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

20. Canada Disability Savings Bonds

Issue

Why is Employment and Social Development Canada (ESDC) requesting a decrease of $200.5 million for the Canada Disability Savings Bond Program in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

• The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help people with severe and prolonged disabilities and their families save for the future. At the end of 2018, approximately 33.7% of Canadians aged 0 to 49 who are eligible for the Disability Tax Credit (DTC) had opened an RDSP
• As of the end of October 2020, RDSP assets are now worth more than $6.52 billion. Since the implementation of the program in December 2008, 208,933 registered plans have been opened, into which the Government has paid $2.89 billion in grants and $1.28 billion in bonds. On average, an individual plan has approximately $31,700 in savings

Suggested Response

• The decrease of $200.5 million in Canada Disability Savings Bond Program expenditures includes:
• a decrease of $40.6 million in Canada Disability Savings Grant expenditures, and
• a decrease of $200.5 million in Canada Disability Savings Bond expenditures
• This reduction is largely due to a difference between forecast and actual expenditures. Specifically, the 2020 to 2021 Main Estimates was prepared based on a forecast simulation, which overestimated expenditures. The adjusted model will rely more heavily on the use of actual historical data to ensure a more accurate forecast.
• As in previous years, bond and grant forecasts will continue to be adjusted to better reflect the trends in actual expenditures in bonds and grants.

Background

Program objectives

The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help Canadians with severe and prolonged disabilities and their families save for the future. To help enhance their long term savings, Canadians who have an RDSP may also be eligible for grants and bonds:

• Canada Disability Savings Grant: is a matching grant where the Government pays into an RDSP matching grants of up to 30%, depending on the beneficiary's family income and contribution. The maximum Grant amount is $3,500 per year, up to a lifetime maximum of $70,000. Grants are paid into RDSPs on contributions that are made up to and including December 31 of the year that the beneficiary turns 49 years of age
• Canada Disability Savings Bond: is money the Government contributes to the RDSPs of low- and modest-income Canadians. A beneficiary, who qualifies for the bond, can receive up to $1,000 a year, depending on the beneficiary’s family income, up to a lifetime limit of $20,000. Bonds are paid into the RDSP if an application has been made on or before December 31 of the year the beneficiary turns 49 years of age. No contributions to an RDSP are required to receive the bond
• the establishment of the RDSP is the result of recommendations made in the report, A New Beginning, prepared by the Expert Panel on Financial Security for Children with Severe Disabilities (Expert Panel) in 2006. Budget 2007 subsequently announced the introduction of the RDSP. In December 2008, financial institutions began offering the RDSP
• Canada Disability Savings Grant and Bond payments are statutory payments made from the Consolidated Revenue Fund

Funding ($000’s)

CDSG

Existing Funding: $478,032

Supps C – 2020 to 2021: $(40,602)

Total Funding: $437,430

CDSB

Existing Funding: $401,528

Supps C – 2020 to 2021: $(200,516)

Total Funding: $201,012

Total

Existing Funding: $879,560

Supps C – 2020 to 2021: $(241,118)

Total Funding: $638,442

Prepared by

Name: Michelle Wareham

Title: Policy Analyst

No phone number: 819-654-3674

Key contact

Name: Joanne Winter

Title: Director of Programs, ODI

Phone number: 819-624-7711

Approved by

Name: Kate Rafter

Title: Executive Director, ODI

Phone number: 819-654-5577

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

21. Contributions to Employee Benefit Plans

Issue

Why is Employment and Social Development Canada (ESDC) requesting an adjustment of $1.7 million in funding to the statutory item "Contributions to employee benefit plans" in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Key facts

• Changes to statutory items are presented in the Supplementary Estimates for information purposes only as Parliament has already approved the purpose of the statutory expenditures and the terms and conditions under which they may be made through other legislation (other than Appropriation Acts)
• Contributions to employee benefit plans include costs to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account

Response

An adjustment of $1,743,953 to EBP costs related to 5 items requested in these Supplementary Estimates is being included in the 2020 to 2021 Supplementary Estimates (C).

The 5 items are:

• funding for Youth Digital gateway ($624,867)
• funding for Completion of Benefits Delivery Modernization Programme Definition ($543,897)
• funding for Safeguarding Canadians’ Personal Information ($315,701)
• funding for Stabilization of IT in Support of Program Delivery ($158,782), and
• funding for improving Gender and Diversity Outcomes in Skills Programming ($100,706)

Prepared by

Name: Jennifer Moorehead

Title: Senior Director

Phone number: 819-654-6402

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer

Phone number: 819-654-6583

Approved by

Name: Mark Perlman

Title: Chief Financial Officer

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

22. Canada Recovery Benefit

Issue

Why is Employment and Social Development Canada (ESDC) requesting a $10.1 billion for the Canada Recovery Benefit (CRB) in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

• As of January 31, 2021, the CRB has helped over 1.7 million Canadians, for approximately $8.7 billion.

Suggested Response

• The Canada Emergency Response Benefit (CERB), which helped more than 8.5 million people during the pandemic
• As the CERB came to an end, a simplified and more accessible EI Program, as well as 3 new temporary recovery benefits were introduced to ensure that Canadians continue to receive the support they need when their employment is affected by COVID-19
• The temporary Canada Recovery Benefit (CRB) is one of the 3 benefits to support workers who are not eligible for EI
• To be eligible, workers must not be employed or self-employed for reasons related to COVID-19 or must have had a reduction of at least 50% in income due to COVID-19
• Under this benefit, a worker could receive $500 per week for up to 26 weeks as long as they are available and looking for work
• This will help support Canadians and promote economic recovery
• As of January 31, 2021, the CRB has helped over 1.7 million Canadians, for approximately $8.7 billion

Background

On October 2, 2020, Royal Assent was given to the Canada Recovery Benefits Act, which established 3 temporary recovery benefits to support Canadians who are unable to work due to COVID-19: Canada Recovery Benefit; Canada Recovery Caregiving Benefit; and, Canada Recovery Sickness Benefit. The 3 benefits are delivered by the Canada Revenue Agency.

The new Canada Recovery Benefit (CRB) is part of the legislation to support Canadians who are unable to work due to COVID-19. CERB provides a benefit amount of $500 per week (available in 2-week periods) for up to 26 weeks for those who are not eligible for EI and are not employed or self-employed for reasons related to COVID-19, or have had their employment/self-employment income reduced by at least 50% due to COVID-19. The CRB is taxable and 10% income tax is withheld at source. It is effective from September 27, 2020 to September 25, 2021.

The benefit is available to residents in Canada who were present for the period in which they were unable to work and:

• are at least 15 years of age on the first day of the period for which they are applying for the benefit
• have a valid Social Insurance Number (SIN)
• are not employed or self-employed for reasons related to the COVID-19 pandemic and are not eligible for EI or are working and have had a reduction of at least 50% in their employment/self-employment income for reasons related to COVID-19
• are available and looking for work, and who must accept work where it is reasonable to do so
• had employment and/or self-employment income of at least $5,000 in 2019 or in 2020, or in the 12-month period prior to their first application for the Canada Recovery Benefit
• have not quit their job voluntarily, unless it was reasonable to do so, and
• have not rejected a reasonable job offer, rejected a request to resume work or failed to resume work if self-employed where reasonable to do so

To ensure that the benefit targets those who need it most, claimants will need to repay some or all of the benefit through their income tax return if their annual net income, excluding the Canada Recovery Benefit payment, is over $38,000. In other words, claimants will need to repay $0.50 of the benefit for each dollar of their annual net income above $38,000 in the calendar year up to a maximum of the amount of benefit they received.

Funding ($000’s)

Payments for the Canada Recovery Benefit pursuant to the Canada Recovery Benefits Act

Grant – $10,070,000

Operating – $25,000

Total Funding: $10,095,000

Prepared by

Name: Joel Reimer

Title: Senior Policy Advisor

No phone number:

Key contact

Name: Andrew Brown

Title: Director General Employment Insurance Policy

Phone number: 819-639-3532

Approved by

Name: Steven Côté

Title: Executive Director - Employment Insurance Policy

Phone number: 819-576-2722

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

23. Canada Recovery Caregiving Benefit

Issue

Employment and Social Development Canada (ESDC) is requesting $2.9 billion for the Canada Recovery Caregiving Benefit in the Supplementary Estimates (C) for fiscal year ending March 31, 2021.

Context

• As of January 31, 2021, over 0.3 million workers have received CRCB, for over $1.25 billion.

Suggested Response

• The Canada Emergency Response Benefit (CERB), helped more than 8.5 million people during the pandemic.
• As the CERB came to an end, a simplified and more accessible EI Program, as well as 3 new temporary recovery benefits were introduced to ensure that Canadians continue to receive the support they need when their employment is affected by COVID-19.
• The Canada Recovery Caregiving Benefit (CRCB) is one of these 3 benefits.
• The Canada Recovery Caregiving Benefit helps workers who must stay home to provide care to a young child or a family member who requires supervision when the school or facility is closed due to COVID-19 or the child or family member cannot attend due to COVID-19.
• It provides up to 26 weeks of support per household at $500 per week.

Background

On October 2, 2020, Royal Assent was given to the Canada Recovery Benefits Act, which established 3 temporary recovery benefits to support Canadians who are unable to work due to COVID-19: Canada Recovery Benefit; Canada Recovery Caregiving Benefit; and, Canada Recovery Sickness Benefit. The 3 benefits are delivered by the Canada Revenue Agency.

The new Canada Recovery Caregiving Benefit is effective from September 27, 2020 to September 25, 2021, and provides $500 per week, for eligible workers. Households can apply for up to 26 weeks, available in one-week periods.

The closure of schools, daycare and day program facilities to prevent the spread of COVID-19 has meant that many Canadians have been unable to work because they needed to provide care to children or support to family members who require supervision.

The benefit is available to residents in Canada who were present for the period in which they were unable to work and:

• are at least 15 years of age on the first day of the period for which they are applying for the benefit
• have a valid Social Insurance Number (SIN)
• are employed or self-employed at the time of the application
• earned at least $5,000 in 2019 or 2020, or in the 12 months preceding the day of their application
• are not in receipt of paid leave during the 1-week period claimed, and
• are unable to work for at least 50% of the time that they would have otherwise worked or devoted to their work in the week for which they claim the benefit, because they had to care for a child under the age of 12 or another family member who requires supervised care:
• because their school, daycare, day program, or facility that they normally attend is unavailable, closed or open only certain times or for certain individuals, or
• because the care services or the person that usually cares for the child or family member is not available due to COVID-19, or
• because they are sick and/or have been directed to quarantine for reasons related to COVID-19, or
• because they are at high risk of serious health complications if they contracted COVID-19

A household is entitled to a maximum of 26 weeks of the Canada Recovery Caregiving Benefit. If 2 or more persons reside in the same household, the benefit can be shared among eligible workers but only one of them may be paid a Canada Recovery Caregiving Benefit for any particular week.

Workers apply after the one-week period in which they are seeking income support and attest that they meet the requirements. The benefit is taxable, with taxes removed at source to reduce the amount of tax owed at the end of the year.

Payments for the Canada Recovery Caregiving Benefit pursuant to the Canada Recovery Benefits Act

Funding ($000’s)

Grant: $2,887,000

Operating: $10,000

Total Funding: $2,897,000

Prepared by

Name: Lina Asfour

Title: Manager

No phone number: 613-897-3155

Key contact

Name: Benoit Cadieux

Title: Director, EI Special Benefits

Phone number: 613-979-0432

Approved by

Name: Steven Côté

Title: Executive Director - Employment Insurance Policy

Phone number: 819-576-2722

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

24. Canada Recovery Sickness Benefit

Issue

Employment and Social Development Canada (ESDC) is requesting $0.8 billion for the Canada Recovery Sickness Benefit in the Supplementary Estimates (C) for fiscal year ending March 31, 2021.

Context

• As of January 31, 2021, over 0.25 million workers have received the CRSB, for over $311 million.

Suggested Response

• The Canada Emergency Response Benefit (CERB), helped more than 8.5 million people during the pandemic
• As the CERB came to an end, a simplified and more accessible EI Program, as well as 3 new temporary recovery benefits were introduced to ensure that Canadians continue to receive the support they need when their employment is affected by COVID-19
• The Canada Recovery Sickness Benefit (CRSB) is one of these 3 benefits.
• The benefit provides $500 per week for up to 2 weeks for workers who are not receiving other paid leave and who are unable to work at least 50% of their normal work schedule because they contracted COVID-19, they must self-isolate for reasons related to COVID-19, or they have an underlying condition that would make them more susceptible to COVID-19

Background

On October 2, 2020, Royal Assent was given to the Canada Recovery Benefits Act, which established 3 temporary recovery benefits to support Canadians who are unable to work due to COVID-19: Canada Recovery Benefit; Canada Recovery Caregiving Benefit; and, Canada Recovery Sickness Benefit. The 3 benefits are delivered by the Canada Revenue Agency.

The Canada Recovery Sickness Benefit provides $500 per week, for up to 2 weeks (available in 2 one-week periods), effective September 27, 2020 until September 25, 2021 for workers who are unable to work because they contracted COVID-19, self-isolated for reasons related to COVID-19, or have underlying conditions, are undergoing treatments or have contracted other sicknesses that will make them more susceptible to COVID-19.

This new benefit fulfills the Government’s commitment as part of the Safe Restart Agreement with provinces and territories to provide up to 2 weeks of sick leave to all Canadian workers in the context of COVID-19. It also encourages Canadian workers to stay home if they are sick or may be sick in order to promote the health and safety of Canadians and workplaces during this ongoing pandemic.

The benefit is available to residents in Canada who were present for the period in which they were unable to work and:

• are at least 15 years of age on the first day of the period for which they are applying for the benefit
• have a valid Social Insurance Number (SIN)
• are employed or self-employed at the time of the application
• earned at least $5,000 in 2019 or 2020, or in the 12 months preceding the day of their application
• are not in receipt of paid leave during the period claimed, and
• are unable to work for at least 50% of the time that they would have otherwise worked or devoted to their work in the week for which they claim the benefit, because:
• they are sick with or may have contracted COVID-19, or
• they have isolated themselves on the advice of their employer, a medical practitioner, a nurse practitioner, a person in authority, a government or a public health authority for reasons related to COVID-19, or
• they have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19

Workers are not required to have a medical certificate to qualify for the benefit. Workers could not claim the Canada Recovery Sickness Benefit and receive other paid sick leave for the same benefit period.

Workers apply after the one-week period in which they are seeking income support and attest that they meet the requirements. The benefit is taxable, with taxes removed at source to reduce the amount of tax owed at the end of the year.

Payments for the Canada Recovery Sickness Benefit pursuant to the Canada Recovery Benefits Act

Funding ($000’s)

Grant: $770,000

Operating: $10,000

Total Funding: $780,000

Prepared by

Name: Ian Coté

Title: Senior Policy Analyst

Key contact

Name: Lina Asfour

Title: Manager, EI Sickness and Caregiving benefits

Phone number: 613-897-3155

Approved by

Name: Steven Côté

Title: Executive Director - Employment Insurance Policy

Phone number: 819-576-2722

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

25. Canada Emergency Response Benefit pursuant to the Economic Statement Implementation Act, 2020

Issue

Why is Employment and Social Development Canada (ESDC) requesting $500 million in Payments for the Canada Emergency Response Benefit pursuant to the Economic Statement Implementation Act, 2020 in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Suggested Response

• As the COVID-19 pandemic and resulting public health measures spread across the country and workplaces shuttered, the Government of Canada introduced the Canada Emergency Response Benefit (CERB)
• CERB provided temporary income support to workers who had to stop working or were without employment or self-employment income because of reasons related to COVID-19
• Workers received $2,000 for a 4-week period (the same as $500 a week), between March 15 and September 26, 2020. The deadline to retroactively apply for CERB was December 2, 2020
• The CERB helped more than 8.5 million workers pay their bills during this challenging time, providing over $81 billion in benefit payments
• The $500 million requested is for CERB applications received prior to the application deadline but paid after the December 31, 2020 repeal date of the Public Events of National Concern Payment Act

Background

The Canada Emergency Response Benefit Act established the CERB as a new income support benefit, providing $2,000 for a 4-week period (equivalent to $500 a week). Initially established to provide up to a total of 16 weeks of income support, the program was extended to provide up to 28 weeks of income support. A claim period must fall within the period beginning on March 15, 2020, and ending October 3, 2020. Workers were able to retroactively apply for CERB until December 2, 2020.

The CERB was available to workers:

• residing in Canada, who are at least 15 years old
• who had stopped working because of reasons related to COVID-19 or were eligible for Employment Insurance regular or sickness benefits or had exhausted their Employment Insurance regular or fishing benefits between December 29, 2019 and October 3, 2020
• who had employment and/or self-employment income of at least $5,000 in 2019 or in the 12 months prior to the date of their application, and
• who did not quit their job voluntarily

When submitting their first claim, workers could not have earned more than $1,000 in employment and/or self-employment income for 14 or more consecutive days within the 4-week benefit period of their claim.

When submitting subsequent claims, workers could not have earned more than $1,000 in employment and/or self-employment income for the entire 4-week benefit period of their new claim.

Funding for the CERB was tabled in previous estimates. Initial authorities to issue payments for CERB was secured via the Public Events of National Concern Payment Act, which ceases to take effect on December 31, 2020.

To ensure that the costs associated with CERB applications received prior to the application deadline (for example, December 2, 2020) can be paid, an extension for legislative authority was obtained via the Fall Economic Statement 2020 and included in Bill C-14, the legislation to implement certain provisions of the Economic Statement tabled in Parliament on November 30, 2020. The costs associated with these remaining applications is estimated to be about $500 million.

Funding ($000’s)

Existing Funding: $0

Supps C – 2020 to 2021: $500,000

Total Funding: $500,000

Prepared by

Name: Joel Reimer

Title: Senior Policy Advisor

No phone number:

Key contact

Name: Andrew Brown

Title: Director General Employment Insurance Policy

Phone number: 819-639-3532

Approved by

Name: Steven Côté

Title: Executive Director - Employment Insurance Policy

Phone number: 819-576-2722

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

26. One-time Payment to Persons with Disabilities

Issue

Why is Employment and Social Development Canada (ESDC) requesting $0.4 million for adjustments to Payment to support Persons with Disabilities one-time payment under An Act respecting further COVID-19 measures in Supplementary Estimates (C) for fiscal year ending March 31, 2021?

One-time Payment to Persons with Disabilities

Context

Persons with disabilities have faced unique challenges and costs during COVID-19.

Suggested Response

• As a result of COVID-19, Canadians living with disabilities are facing significant challenges, with some experiencing job insecurity. Others are seeing increased costs for personal support workers and other disability supports including; internet costs due to physical distancing requirements, and increased use of taxis and home delivery for food, medication and medical supplies
• The Department of Employment and Social Development is requesting $0.4 million for adjustments to support Persons with Disabilities one-time payment as a result of the recently announced extension of the deadline to apply for the Disability Tax Credit (DTC) from September 25, 2020, to December 31, 2020. This requires ESDC to process and issue another payment in Spring 2021 to those who submit their DTC application by December 31, 2020 and are determined to be eligible; or receive a decision about their eligibility for one of the eligible programs by the end of February 2021
• The Government of Canada (GoC) will be automatically issuing a one-time non-taxable, non-reportable payment of up to $600 to approximately 1.7 million eligible Canadians to help pay for these expenses
• About 1.6 million people started to receive the payment in October of 2020. The remaining payments will go out in early 2021, for a total of $763 million for persons with disabilities
• This one-time payment provides financial support to persons living with a disability. To make it easier for eligible clients, the GoC is leveraging existing information to issue these payments rather than asking for applications to be submitted
• Many Canadians are eligible for this payment, including recipients of the DTC, Canada Pension Plan Disability (CPPD), Quebec Pension Plan disability pension (QPPD), and 7 Veterans Affairs Canada (VAC) benefits. Time was needed to put a system in place, integrate and validate the data, and ensure that payments are issued to eligible recipients

Background

On June 5, 2020, the GoC announced a one-time non-taxable and non-reportable payment of up to $600 to support Canadians with disabilities.

On July 17, 2020, the GoC announced legislative plans to make the benefit available to approximately 1.7 million Canadians with disabilities. Bill C-20 received Royal Assent on July 27, 2020.

On August 10, 2020, approval was received for $828 million plus $20.6 million in operating costs for 2020 to 2021 to be paid out of the Consolidated Revenue Fund. Departments will only seek funds for what has been spent. Costs include:

• $5.9 million for CRA to validate the Social Insurance Numbers of VAC clients and the processing of applications, and
• $14.7 million for ESDC for stakeholder engagement, system development and testing, communications, call centres, postage, and processing of undeliverable payments
• these non-taxable, non-reportable payments are issued using already existing government direct deposit and mailing information. This one-time payment is to provide financial support to the person with the disability. Caregivers, survivors, and dependents are not eligible for this payment. Until October 23, 2020, Canadians with disabilities eligible to receive the one-time payment included those who were:
• holders of a valid Disability Tax Credit (DTC) certificate from the Canada Revenue Agency (CRA)
• eligible and had applied for the DTC by September 25, 2020, and
• beneficiaries as at July 1, 2020 of the Canada Pension Plan Disability (CPPD) and the Quebec Pension Plan Disability (QPPD)

Seniors who received the one-time seniors' payment and are also eligible for this one-time payment, and should receive a cumulative amount of up to $600, broken into 2 payments:

• if they received the $300 one-time seniors' payment for the Old Age Security (OAS) pension, they should receive an additional $300, or
• if they received the $500 one-time seniors' payment for both the OAS pension and the Guaranteed Income Supplement or the Allowance, they should receive an additional $100.

Starting October 30, 2020, 1.6 million of the 1.7 million recipients started receiving their payments. The next payment is planned for January 2021 and includes eligible individuals that applied for the DTC by September 25, 2020, and have not yet received a response from the CRA, as well as those that could not be included in the October payments due to incorrect personal information.

On Oct 23rd, Minister Qualtrough announced that the deadline to apply for the Disability Tax Credit (DTC) to receive the one-time payment had been extended from September 25, 2020, to December 31, 2020. This will help more Canadians with disabilities access the benefit, as the COVID-19 pandemic has created challenges for some to collect the information needed to complete the DTC application process. An extension of the deadline will give clients more time to submit their applications, and the Government of Canada time to issue decisions regarding eligibility.

Another payment will follow in Spring 2021, to those who submit their DTC application by December 31, 2020 and are determined to be eligible; or receive a decision about their eligibility for one of the eligible programs by the end of February 2021.

Statutory Funding ($000’s) and FTE

FTE

Existing FTEs – 0

Supps B – 2020 to 2021 FTEs – 42

Supps C – 2020 to 2021 FTEs – 3

Total FTEs – 45

Salary

Existing Funding: $0

Supps B – 2020 to 2021: $3,887

Supps C – 2020 to 2021: $197

Total Funding: $4,084

O&M

Existing Funding: $0

Supps B – 2020 to 2021: $15,664

Supps C – 2020 to 2021: $120

Total Funding: $15,784

Total Operating

Existing Funding: $0

Supps B – 2020 to 2021: $19,551

Supps C – 2020 to 2021: $317

Total Funding: $19,868

EBP

Existing Funding: $0

Supps B – 2020 to 2021: $1,049

Supps C – 2020 to 2021: $79

Total Funding: $1,128

Sub-Total

Existing Funding: $0

Supps B – 2020 to 2021: $20,600

Supps C – 2020 to 2021: $396

Total Funding: $20,996

Vote 5 G&C

Existing Funding: $0

Supps B – 2020 to 2021: $828,000

Supps C – 2020 to 2021: $0

Total Funding: $828,000

Total

Existing Funding: $0

Supps B – 2020 to 2021: $848,600

Supps C – 2020 to 2021: $396

Total Funding: $848,996

Key contact

Name: Joanne Pellerin

Title: Director General, Transformation Management Branch

Phone number: 613-608-1835

Approved by

Name: Tammy Belanger

Title: A/Assistant Deputy Minister, Transformation Management Branch

Phone number: 613-759-2170

And

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

27. Canada Emergency Response Benefit pursuant to the Public Health Events of National Concern Payments Act

Issue

Why is Employment and Social Development Canada (ESDC) requesting a decrease of $12.5 billion statutory forecast for the Canada Emergency Response Benefit in the Supplementary Estimates (C) for the fiscal year ending March 31, 2021?

Context

• Planned spending for the Canada Emergency Response Benefit (CERB) in Supplementary Estimates B was $88.5B. In Supplementary Estimates C for an amount of $12.5B brings the Proposed Authorities to $76.0B
• The forecast for CERB expenditures has been decreased to reflect actual expenditures to date, and also includes forecasted expenditures for the processing of final applications received up until the legislated end date
• CERB's $88.5B proposed authorities include the initial program and the 2 extension periods. They are comprised of benefits and operational costs for both CERB and EI-ERB

Response

• The Canada Emergency Response Benefit (CERB) provides temporary income support to workers who have stopped working for reasons related to COVID-19
• The funding authority for the CERB under the Public Health Events of National Concern Payments Act ended on December 31, 2020. Any remaining CERB payments will be made through the Economic Statement Implementation Act, 2020 statutory authority
• The CERB is available from March 15, 2020, to October 3, 2020. Eligible workers can make retrospective benefit applications with respect to that period until December 2, 2020

Background

CERB

The Canada Emergency Response Benefit (CERB) provides temporary income support to workers who have stopped working related to COVID-19. The Benefit provides $500 per week, and is delivered through both Service Canada and the Canada Revenue Agency (CRA). The CERB is available to workers:

• residing in Canada, who are at least 15 years old
• who have stopped working because of reasons related to COVID-19 or are eligible for Employment Insurance regular or sickness benefits or have exhausted their Employment Insurance regular or fishing benefits between December 29, 2019 and October 3, 2020
• who had employment and/or self-employment income of at least $5,000 in 2019 or in the 12 months prior to the date of their application, and
• who have not quit their job voluntarily

PHENCPA

The Public Health Events of National Concern Payments Act (PHENCPA) authorizes payments to be made out of the Consolidated Revenue Fund for “Things that may be done in relation to a public health event of national concern”, which includes “providing income support, including the Canada emergency response benefit”. The PHENCPA is to be repealed on December 31, 2020.

Funding (in thousands of dollars)

Supplementary Estimates (A), 2020 to 2021: $60,000,000

Supplementary Estimates (B), 2020 to 2021: $28,467,769

Supplementary Estimates (C), 2020 to 2021: -$12,445,000

Total Estimated Spending: $76,022,769

Any remaining CERB payments will be made through the Economic Statement Implementation Act, 2020 statutory authority.

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone number: 613-793-3084

Key contact

Name: Andrew Brown

Title: Director General EI Policy

Phone number: 819-639-3532

Approved by

Name: Andrew Brown

Title: Director General EI Policy, ESDC

Phone number: 819-639-3532

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB, ESDC

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

28. Canada Emergency Student Benefit pursuant to the Public Health Events of National Concern Payments Act

Issue

Why is Employment and Social Development Canada (ESDC) requesting a decrease of $2.2 billion statutory forecast for the Canada Emergency Student Benefit in the Supplementary Estimates (C) for the fiscal year ending March 31, 2021?

Suggested response

• Planned spending for the Canada Emergency Student Benefit in Supplementary Estimates A was $5.2B, an adjustment of $2.2B is presented in Supplementary Estimates C brings the Proposed Authorities to $3.0B
• The Government continues to take action to support Canadians during the COVID-19 pandemic, providing support to those who need it most
• The Canada Emergency Student Benefit has helped over 700,000 students and recent graduates with approximately $3B to help them pay their bills and stay connected to the labour market
• Eligible students received $1,250 per month, plus an additional $750 per month if they have dependants or a disability for a maximum of $2,000 per month
• The $160.2M requested is for outstanding payments to students that are required after the September 30th repeal date of the Public Health Events of National Concern Payments Act (PHENCPA)

Background

• Students are eligible for the Canada Emergency Student Benefit (CESB) if they are a Canadian citizen, a registered Indian, a permanent resident or a protected person and they:
• are enrolled in a post-secondary education (PSE) program, or
• have ended PSE studies no earlier than December 2019, or
• have completed, or will complete, high school in 2020 and have applied for a PSE program that begins before February 1, 2021. High school equivalency is also eligible for CESB. Those completing high school, or equivalency, after June 7 could only apply for July and August
• In addition, students must attest that:
• for COVID-19 related reasons, they were unable to work, or
• were seeking work but were unable to find it, or
• they were working but did not expect to make more than $1,000 (before taxes) over the four-week period for which they were applying, and
• they were not receiving the Canada Emergency Response Benefit or Employment Insurance benefits for the same four-week period as their current application
• If a student was unable to work, they must have been actively looking for a job to be eligible to receive the CESB. Students should have documents readily available if they are requested to demonstrate that they were looking for work. Registering with JobBank.gc.ca would allow students to not only find available opportunities to earn an income and a meaningful work experience, but also to gather evidence of their job search
• The Government of Canada announced a comprehensive support package for post-secondary students and recent graduates of nearly $9 billion, of which $5.2 billion was allocated to the CESB which would support nearly 1 million beneficiaries
• Over 700,000 students have received approximately $3 billion in CESB. While this is lower than forecasted, it is a reflection of the other investments made by the Government of Canada including support for youth employment, which resulted in improved labour market outcomes and lower demand for CESB
• Any outstanding CESB payments after the December 31st repeal of the Public Events of National Concern Payments Act will be made through the Vote 5 CESB grant established in these Supplementary Estimates C

Funding (in thousands of dollars)

Supplementary Estimates (A), 2020 to 2021: $5,250,000

Supplementary Estimates (C), 2020 to 2021: -$2,227,806

Total Estimated Spending: $3,022,194

Prepared by

Name: Ritu Lamba

Title: Analyst

Phone number: 613-762-3617

Key contact

Name: Agata Frankowicz

Title: Director, Planning, Integrity and Repayment, CSLP

Phone number: 613-618-4780

Approved by

Name: Alexis Conrad

Title: Assistant Deputy Minister, Learning Branch

Phone number:

Date

Date approved in SADMO / COO: February 12, 2021

29. Payments to Support a Safe Restart in Indigenous Communities

Issue

Why is Employment and Social Development Canada (ESDC) requesting a decrease of $0.1 million in funding to support a safe restart in Indigenous communities in the Supplementary Estimates (C) for fiscal year ending March 31, 2021?

Context

• In response to Covid-19, $120 million in new federal investments were approved to support the safe reopening of the Indigenous Early Learning and Child Care (IELCC) sector. In September 2020, access was granted to $91.6 million of these funds. The final $28.4 million were accessed in November 2020 and divided between ESDC, Indigenous Services Canada, and the Public Health Agency of Canada based upon engagement from Indigenous governments and stakeholders. The ESDC allocation has changed slightly, decreasing by $124,910, based upon these consultations
• The new funding is to ensure the continued availability of Indigenous ELCC spaces and to offset increased costs to Indigenous ELCC centres associated with implementing COVID-19 public health measures (for example enhanced cleaning and sanitization protocols and lower child to staff ratios)
• Communities are still eligible to receive the new temporary emergency Indigenous ELCC funding if early learning and child care sites are not yet opening in accordance with public health measures. Where this is the case, the temporary emergency funding will support the provision of alternative Indigenous ELCC programs and services for children and families

Suggested Response

• Canada’s COVID-19 Economic Response Plan commits to an additional $120 million for fiscal year 2020 to 2021 to help First Nations, Inuit and Métis partners meet the challenges and costs associated with meeting COVID-19 public health measures and support the safe reopening of:
• 463 child care sites in First Nation and Inuit communities
• 341 Aboriginal Head Start programs on reserve, and
• 134 Aboriginal Head Start programs in urban and northern communities
• Up to 35,000 First Nations, Inuit and Metis children who participate in Indigenous ELCC programming are expected to benefit
• This new funding is in addition to this government’s investment of $1.7 billion over ten years, starting in 2018, for Indigenous Early Learning and Child Care and the $132 million provided annually through the 3 existing federally-funded Indigenous ELCC programs

Background

• Budget 2017 provided $1.7 billion over 10 years for the implementation of the Indigenous ELCC Framework. This funding complements investments made by provinces and territories in early learning and child care under the Multilateral ELCC Framework, in which the federal, provincial and territorial governments agreed to work together to address some of the key ELCC issues across the country
• On September 17, 2018, the Government of Canada jointly released the co-developed Framework with the Assembly of First Nations, Inuit Tapiriit Kanatami and the Métis National Council. It captures the views and recommendations of Indigenous peoples and organizations that participated in extensive 2017 engagements
• The Indigenous ELCC Framework sets the stage for Indigenous led ELCC systems policy, programs and supports for Indigenous children and families, now and in the future. It sets out a vision, principles and is a guide for all actors in the Indigenous ELCC sphere
• The distinctions-based Indigenous ELCC funding envelopes are managed in partnership with First Nations, Inuit and the Métis Nation. This partnership model – in which First Nations, Inuit and Métis Governments make decisions jointly with the Government of Canada on Indigenous ELCC funding for priorities of their choosing – is already being implemented across the country as part of the Indigenous ELCC Transformation Initiative
• It has led to funding allocation decisions at the regional level endorsed by Indigenous leadership that consider the specific context of each region
• Reporting will show how emergency funding contributed to the safe provision of ELCC programs and activities during the pandemic period, including preparation for reopening of ELCC sites. Results will be bundled as part of contribution agreement’s year-end reporting to streamline the process and ease the reporting burden. Every effort will be made by officials to apply flexibility, where required, recognizing the additional pressures relating to COVID-19

Key quotes

N/A

Funding ($000’s) and FTE

FTE

Existing FTEs – 34

Supps C – 2020 to 2021 FTEs – 0

Total FTEs – 34

Salary

Existing Funding: $3,029

Supps C – 2020 to 2021: $0

Total Funding: $3,029

O&M

Existing Funding: $315

Supps C – 2020 to 2021: $0

Total Funding: $315

Total Operating

Existing Funding: $3,344

Supps C – 2020 to 2021: $0

Total Funding: $3,344

EBP

Existing Funding: $448

Supps C – 2020 to 2021: $0

Total Funding: $448

Sub-Total

Existing Funding: $3,792

Supps B – 2020 to 2021: $0

Total Funding: $3,792

Vote 5 G&C

Existing Funding: $124,646

Supps B – 2020 to 2021: $6,395

Supps C – 2020 to 2021: $0

Total Funding: $131,041

Existing Funding: $0

Supps B – 2020 to 2021: $63,900

Supps C – 2020 to 2021: $(125)

Total Funding: $63,775

Total

Existing Funding: $128,438

Supps B – 2020 to 2021: $6,395

PHENCPA – 2020 to 2021: $63,900

Supps C – 2020 to 2021: $(125)

Total Funding: $198,608

Public Health Events of National Concern Payments Act – 2020 to 2021

Prepared by

Name: Brigitte Lewis

Title: Program Advisor

Key contact

Name: Glenda Restoule

Title: Director

Phone number: 873-353-5053

Approved by

Name: Cheri Reddin

Title: Executive Director

Phone number: 613-327-1303

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB

Phone number: 819-654-6634

Date

Date approved in SADMO / COO: February 12, 2021

30. Timeline and legislation for EI-CERB-CRB

• 1. The Canada Emergency Response Benefit

Start date: March 15, 2020

End date: October 3, 2020

The Canada Emergency Response Benefit (CERB) was an important and necessary temporary response to support Canadian workers, including the self-employed, who stopped working due to COVID-19. The CERB provided a weekly amount of $500 for up to 28 weeks, between March 15, 2020, and October 3, 2020. The deadline to retroactively apply for CERB was December 2, 2020.

Legislation

The CERB was delivered under the authority of the Canada Emergency Response Benefit Act by the Canada Revenue Agency and under the authority of the Employment Insurance Act by Service Canada.

• 2. Temporary Enhancements to Employment Insurance

Start Date: September 27, 2020

End Date: September 25, 2021

As part of Canada’s COVID-19 Economic Response Plan, the Government transitioned from the CERB to a simplified Employment Insurance (EI) program, effective September 27, 2020, to provide income support to eligible workers who remain unable to work. Recognizing that many workers impacted by the COVID-19 pandemic will have lost their jobs or are working reduced hours, a set of temporary measures have been introduced to facilitate access to EI benefits. Measures include:

• a minimum unemployment rate of 13.1% applies to all regions across Canada since August 9, 2020 and until September 11, 2021
• allowing workers with 120 insurable hours to qualify for benefits because of a one-time credit of:
• 300 insured hours if applying for regular benefits, and
• 480 insured hours if applying for sickness, maternity, parental or caregiving benefits, and
• a minimum weekly benefit of $500 per before taxes, or $300 before taxes for extended parental benefits

These measures allow Canadians to qualify for EI with a one-time eligibility of 120 hours of work, establish a minimum benefit rate of $500 per week and provide a minimum entitlement of 26 weeks of regular benefits.

To support small businesses and workers, the Government of Canada has also frozen the EI premium rate for 2 years at the current 2020 rate.

In early January 2021, Canada experienced an increase in COVID-19 infections, which resulted in additional public health measures and increased financial pressure on workers. In response, the Government of Canada waived the waiting period for all new EI claims established from January 31, 2021 until September 25, 2021. This enables eligible workers to be paid for the first week of unemployment.

Legislation and Regulations

The hours credit, minimum benefit rate and minimum weeks of entitlement were made through an interim order under the authority of the Employment Insurance Act.

The waiving of the waiting period was made through amendments to the Employment Insurance Regulations under the authority of the Employment Insurance Act.

• 3. Recovery Benefits

Start date: September 27, 2020

End Date: September 25, 2021

The Government introduced 3 temporary Recovery Benefits to provide income support to those Canadian workers who are not eligible for EI and those who require tailored support when their employment is affected by COVID-19. These benefits are effective from September 27, 2020 until September 25, 2021. These include the:

• Canada Recovery Benefit

The new Canada Recovery Benefit (CRB) provides a benefit amount of $500 per week (available in 2-week periods) for up to 26 weeks for those who are not eligible for EI and are not employed or self-employed due to COVID-19, or have had their employment/self-employment income reduced by at least 50% due to COVID-19.

• Canada Recovery Sickness Benefit

The Canada Recovery Sickness Benefit (CRSB) provides a benefit amount of $500 per week (available in one-week periods), for up to 2 weeks for those who are unable to work because they are sick or must self-isolate due to COVID-19, or have underlying conditions would make them more susceptible to COVID-19.

• Canada Recovery Caregiving Benefit

The Canada Recovery Caregiving Benefit (CRCB) provides a benefit amount of $500 per week (available in one-week periods) for up to 26 weeks for those who are unable to work because they must care for their child under the age of 12 or family member who needs supervised care.

Legislation

The Canada Recovery Benefits Act established the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, and the Canada Recovery Caregiving Benefit to support Canada’s economic recovery in response to COVID-19. The Canada Recovery Benefits Act received Royal Assent on October 2, 2020.

• 4. Extension of Employment Insurance regular benefits

Start date: March 27, 2021

End Date: September 25, 2021

On February 19, 2021, the Government announced its intention to extend EI regular benefits to a maximum of 50 weeks.

Legislation and Regulations

On February 25, 2021, the Government tabled Bill C-24 to extend the EI regular benefits. The bill is before Parliament.

• 5. Extension of the Recovery Benefits

Start date: March 27, 2021

End Date: September 25, 2021

As announced on February 19, 2021, the Government of Canada will increase the number of weeks of benefits available for the CRB and CRCB by 12 weeks through regulations. As some workers could begin to exhaust their benefits in late March 2020, this increase would ensure continued support as Canada’s economy and labour force recovers.

The Government has also announced that additional 2 weeks would be available for the CRSB so that Canadians do not have to make the choice between going to work sick with COVID-19 and putting food on the table.

Legislation and Regulations

The Government will make regulatory changes to extend the Canada Recovery Benefit, Canada Recovery Sickness Benefit and the Canada Recovery Caregiving Benefit.

31. Cost of EI-Emergency Response Benefit (EI-ERB), Canada Emergency Response Benefit (CERB), and Canada Recovery Benefits (CRB, CRCB, CRSB)

Issue

What are the cost of the EI-ERB, CERB, Canada Recovery Benefit (CRB), Canada Recovery Caregiving Benefit (CRCB), and Canada Recovery Sickness Benefit?

Key facts

• As of February 28th, 2021, $74.8 billion has been spent on EI-ERB and CERB, administered by ESDC and CRA, respectively
• As of February 28th, 2021, $12.9 billion has been spent on the 3 Canada Recovery Benefits

Response

The total spending on each measure as of February 28, 2021 is:

• EI-ERB $29.4 billion
• CERB $45.4 billion
• CRB $11 billion
• CRCB $1.6 billion
• CRSB $362.5 million
• Total of all measures $87.7 billion

Q&A

Q: Do you have a forecast of what each measure will cost at the end of each measure?

A: As has been seen, the impact of the pandemic on the economy and the labour market has been difficult to predict. This makes projecting the cost of these important demand driven programs challenging. It is important that the government be there for Canadians when needed through programs such as the emergency response and recovery benefits.

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management

Phone number: 819-654-6402

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer

Phone number: 819-654-6583

Name: Jennifer McMurtry

Title: Director General, FMAS, CFOB

Phone number: 819-654-6580

Approved by

Name: Mark Perlman

Title: Chief Financial Officer

Phone number: 819-654-6634

Date

Date approved in ADM: March 5, 2021

32. Canada Emergency Response Benefit Overpayments

Issue

Service Canada’s response to CERB overpayments

Suggested Response

• The federal government is committed to continuing to support Canadians throughout this crisis
• The Government understands there may be situations in which Canadians received a CERB payment to which they were not entitled
• Service Canada takes the integrity of its programs very seriously and remains committed to the financial stewardship of its programs
• While there will not be any penalty for Canadians if they have received a payment in error, they may be required to repay the CERB benefits for which they are not entitled
• Clients in this situation will receive a letter providing them with further information to make arrangements to repay any applicable amounts

Background

On April 6, 2020, the Government of Canada launched the Canada Emergency Response Benefit (CERB) to provide temporary income support to workers who have stopped working and are without employment or self-employment income, for reasons related to COVID-19. Through this benefit, eligible workers who lost their job or were unable to work due to COVID-19 received $500 per week.

Service Canada and the Canada Revenue Agency (CRA) jointly administered the CERB to ensure that Canadians received the money they were entitled to as quickly as possible. However, there may be situations in which Canadians received a CERB payment to which they were not entitled.

Claimants may need to return or be required to repay the CERB to the department (Service Canada or CRA) that issued them payments if they:

• returned to work earlier than expected, including being paid retroactively
• applied for CERB but later realized they are not eligible, or
• applied for and received the CERB from both Service Canada and CRA for the same eligibility period

While there will not be any penalty for Canadians if they received a payment in error, they may be required to repay the CERB benefits for which they are not entitled and will proactively receive a letter providing them with further information about the repayment process. Specifically, if they have received the CERB twice for the same benefit period, they are requested to return 1 of the payments to the CRA.

Service Canada and the CRA worked together to ensure that those situations were reconciled and payments to eligible clients did not exceed the maximum allowable benefits. To prevent these situations from happening again, CRA conducted a validation check at the application stage. If the applicant had already been approved for benefits with Service Canada, they would not have been able to continue further with the CRA-CERB application.

In March 2020, ESDC put a pause on collection activities for all of ESDC debts, including Notice of Debts (NOD) for all programs. This decision was made to focus on supporting Canadians rather than establishing new overpayments.

On September 27, 2020, ESDC began transitioning clients from CERB to a simplified EI program, and put in place new temporary measures for 1 year to facilitate access to the EI program.

Issuance of NODs and Monthly Statements of Accounts (MSAs) for ESDC debts resumed on November 1, 2020. A minimal number of NODs and MSAs were issued for CERB overpayments, mainly for clients who had provided a partial or full reimbursements of their overpayment. [One sentence has been redacted].

The information provided in this card is specific to ESDC only. Issues pertaining to CRA collection activities should be addressed to the Agency.

If pressed on net vs. gross income for self-employment income:

On December 6, 2020, articles in the media raised questions on whether the $5,000 in income required to be eligible for CERB is net or gross for the purposes of self-employed individuals.

The CRA website for CERB eligibility included the following information:

Small Business owners can receive income from their business in different ways, including as salary, business income or dividends. In determining their eligibility for the Canada Emergency Response Benefit:

• owners who take a salary from their business should consider their pre-tax salary
• owners who rely on business income should consider their net pre-tax income (gross income less expenses)
• owners who rely on dividend income should consider this as self-employment income provided it comes from non –eligible dividends (generally, those paid out of corporate income taxed at the small business rate)

In some cases, self-employed individuals had declared their total business revenue, rather than their personal self-employment income in attesting that they made $5,000 in 2019. These individuals subsequently received education letters from the CRA indicating that they may not have met the requirements for the benefit.

On February 9, 2021, the Government announced that it is allowing self-employed individuals who applied for the CERB through the CRA or Service Canada, and whose net self-employment income was less than $5,000 to keep their CERB payments, provided they meet all other eligibility requirements.

Some self-employed individuals whose net self-employment income was less than $5,000 may have already voluntarily repaid the CERB. The CRA and Service Canada will return the repaid amounts to impacted individuals. The exact process by which this will occur and the timelines within which it will be implemented are still being determined.

This approach provides a targeted resolution specifically for self-employed individuals who applied in good faith and received benefits based on unclear eligibility information provided by the Government.

Prepared by

Name: Jonathan Larocque

Title: Director, Strategic Directions Directorate

Key contact

Name: Nisa Tummon

Title: Director General, Strategic Directions Directorate

Phone number: 873-396-1062

Approved by

Name: Cliff Groen

Title: Senior Assistant Deputy Minister, Benefits and Integrated Services Branch

Phone number: 819-654-6944

Date approved in COOO:

33. CERB Integrity

Context

The Auditor General has stated that the Government should have ways to identify fraud and recoup money for the Canada Emergency Response Benefit (CERB) and employment-insurance (EI) benefits during the pandemic.

Suggested Response

• Service Canada takes the integrity of its programs very seriously
• We know that in time of crisis, the risk of fraud is heightened and we continue to conduct investigations to identify and address cases of error and fraud
• Service Canada uses data analytics and intelligence capabilities to actively monitor and identify cases of error and fraud
• In addition, the Department has been working closely with key partners, including other government departments and law enforcement agencies, to detect and disrupt cases of possible fraud
• In cases where claimants are found to be ineligible to receive the Canada Emergency Response Benefit, they will be required to reimburse the overpayment
• The Government’s Fall Economic Statement announced $260 million over four years for ESDC and the CRA to increase the capacity to detect, investigate and address cases of misrepresentation or fraud related to the Canada Emergency Response Benefit
• This investment will ensure the proper stewardship of the program

Background

In order to deal with the high volumes of applications and get money to eligible Canadians as quickly as possible during the pandemic, a number of temporary measures were implemented to simplify policy and processes while maintaining the integrity of the EI program through largely post-payment verification. Simplification measures included moving to a flat rate, and the use of attestations over the requirement for documentation.

Post-payment verification reviews will help us develop accurate estimates of fraud.

The Government’s Fall Economic Statement announced $260.4 million over 4 years for Employment and Social Development Canada (ESDC) and the Canada Revenue Agency (CRA) to increase the capacity to detect, investigate and address cases of fraud or misrepresentation related to the Canada Emergency Response.

From this, $114.3 million is to ensure that ESDC continues to have the capacity to effectively detect, investigate and address high-risk cases of abuse, misrepresentation and fraud in the Employment Insurance Emergency Response Benefit (EI ERB); and $146.1 million for the CRA to ensure it has continued capacity to advance compliance, verification and collections activities with respect to the Canada Emergency Response Benefit (CERB).

Prepared by

Name: Donna Blois

Title: Executive Director, National Enforcement and Intelligence Division

Key contact

Name: Kathleen Walford

Title: Director General, Integrity Operations

Approved by

Name: Lori MacDonald

Title: COO

Date

Date approved by COOO: March 9, 2021

34. Provinces and Territories Clawing Back Social Assistance Benefits

Context

Most provincial/territorial governments deduct amounts from Social Assistance benefits to reflect clients receiving certain federal benefits such as Employment Insurance and other emergency federal COVID-19 income supports.

Suggested Response

• Collaboration between different orders of government has been a keystone of Canada’s approach to this global pandemic
• The Government of Canada has taken immediate, significant and decisive actions to help Canadians facing hardship as a result of the COVID-19 pandemic
• It is also important to recognize that the provinces and territories have full jurisdiction over how federal benefits are treated within their own programming, including social assistance
• We will continue to work with provincial and territorial governments to help Canadians through this crisis

Background

Most Provincial/Territorial (P/T) governments allow Social Assistance (SA) recipients to earn a certain amount of additional income through work while remaining eligible for SA benefits. Some SA recipients (including some recipients with disabilities) would have met the earnings requirements for federal emergency/recovery benefits, as well as for Employment Insurance benefits. However, P/T governments have the authority to deduct federal emergency/recovery benefit income from SA benefits because the administration of SA programs is under their jurisdiction.

In April 2020, Ministers Qualtrough and Hussen wrote letters to their P/T counterparts requesting that Canada Emergency Recovery Benefit income be fully exempt when determining eligibility and benefits under social assistance in order to maximize support to vulnerable Canadians.

British Columbia (for clients eligible for SA as of April 2, 2020), Yukon and the Northwest Territories have since announced that they are fully exempting CERB income for eligible SA recipients.

[Three paragraphs have been redacted]

Concerning the new suite of federal recovery benefits and temporary enhancements to Employment Insurance announced on September 27, 2020, BC has announced that income from these sources will also be fully exempt for all individuals who are eligible for SA between April 2, 2020 and September 2021.

Ontario has announced that income received from the new suite of benefits or Employment Insurance would be deducted from SA benefits, but that individuals who were receiving SA benefits before October 2020 may be eligible to continue to receive health and other benefits while receiving federal recovery benefits or Employment Insurance.

Other P/T jurisdictions have not announced specific policy positions relative to the treatment of these new benefits within their SA programs. However, it should be noted that existing P/T SA rules do not exempt Employment Insurance income from deduction in SA benefit calculations.

Prepared by

Name: Eric Dugas

Title: Policy Analyst

Phone number: 343-204-2636

Approved by

Name: Poppy Vineberg

Title: A/Senior Director

Phone number: 613-324-2433

Date

Date approved in SADMO: March 5, 2020

35. Temporary Foreign Worker (TFW) Program (including quarantine issues)

COVID-19 Impacts and Measures

Context

COVID-19 has had an impact on travel into and out of Canada, and to working and living conditions for people in Canada, including temporary foreign workers.

Suggested Response

• Temporary foreign workers are a key source of labour, particularly in agriculture and agri-food, and ensuring their reliable entry and safe working conditions is key to the ongoing competitiveness of these sectors and to Canada’s broader economic recovery
• Early in the pandemic, a number of important steps were taken to protect the health and safety of temporary foreign workers and communities in response to COVID-19
• These include publishing guidance for employers and workers and introducing regulations that compel employers to meet new health and safety requirements. As well, there has been regular communication and engagement with provinces and territories, stakeholders and program users as new measures come into force

New Travel Measures

• New travel measures introduced in 2021 are essential to mitigating the further spread of the virus, particularly in light of new variants
• The requirement for travelers to quarantine in a government-authorized hotel while they wait for the results of their arrival COVID-19 test is deferred for certain temporary foreign workers, including those with work visas in agriculture, agri-food, and fish and seafood processing industry sectors until March 21, 2021
• The government will continue to work with partners to ensure effective and timely response to emerging issues including outbreaks throughout the 2021 season

Background

Early in the pandemic, a number of important steps were taken to protect the health and safety of TFWs in response to COVID-19.

The Government put in place regulations, which entered into force on April 20, 2020, that compel employers to meet the requirements of the Quarantine Act. This includes requiring employers to pay workers without requiring them to work during their quarantine period, as well as not preventing a worker from meeting their requirements under the Act or provincial/territorial public health laws related to COVID-19.

The Government recognizes the important role that organizations play in supporting workers to exercise their rights and protect themselves during the pandemic. On July 31, 2020, the Government announced an investment of $58.6 million to strengthen the Temporary Foreign Worker Program and safeguard the health and safety of Canadian and temporary foreign workers from COVID-19. This funding included $6 million for direct outreach to workers delivered through migrant worker support organizations and $16.2 million to strengthen the employer inspections regime and make improvements to how tips and allegations of employer non-compliance are addressed.

The COVID-19 pandemic has highlighted public health and concerns with living conditions in some employer-provided accommodations. To address this situation, on October 27, 2020, the Government launched consultations with provinces and territories, employers, workers and foreign partner countries on a proposal for minimum requirements for employer-provided accommodations as a condition for participation in the TFW Program.

More recently, new travel measures have been put in place to help prevent further introduction and transmission of COVID-19 and new variants of the virus into Canada.

On December 31, 2020, the Government of Canada announced new mandatory requirements for all air travellers to Canada, including temporary foreign workers. These measures came into force on January 7, 2021, and require travellers to provide a negative laboratory test result for COVID-19 conducted by an accredited lab in the source country within 72 hours of departure to Canada.

As of February 22, 2021, all air travelers to Canada, including temporary foreign workers, are required to take a COVID-19 molecular test on arrival in Canada before exiting the airport, and another toward the end of their 14-day quarantine period.

In addition, travellers are required to reserve a 3-night stay in a government-authorized accommodation at their own cost while they await the results of their arrival test. This requirement is deferred until March 21, 2021, for certain Temporary Foreign Workers, including those with work visas in the agriculture, agri-food, and fish and seafood sectors. These workers will proceed directly to their place of quarantine provided by their employer under existing quarantine rules. Other TFWs will need to abide by the 3-night hotel stay requirement.

Prepared by

Name: Chris Chevrier

Title: Director, Policy and Program Design

No phone number:

Key contact

Name: Philippe Massé

Title: DG, TFW Program

Phone number: 613-793-5673

Approved by

Name: Elisha Ram

Title: AADM

Phone number: 819-654-5212

Date

Date approved in SADMO / COO: March 9, 2021

36. Personal Support Worker Training in Long-Term and Home Care

Issue

Why is Employment and Social Development Canada (ESDC) requesting $1 million (excluding employee benefit plan costs) in Vote 1, $11.5 million in Vote 5 (Contributions), and $13 million in Statutory funding for Personal Support Worker Training and Other Measures to Address Labour Shortages in Long-Term and Home Care in the Supplementary Estimates (B) for fiscal year ending March 31, 2021?

Key facts

• According to the National Institute on Aging at Ryerson University, long-term care and retirement homes reported 11% of Canada’s COVID-19 cases and 73% of total deaths, as of January 5, 2021. Health Canada estimates that between 170,000 and 211,000 long-term care residents live in approximately 2,060 facilities across Canada. 93% of the residents are seniors (65+years) and 7% are adults with disabilities (2016)
• The Canadian Association for Long-Term Care forecasts that 42,000 new long-term care beds will be needed by 2023. By 2027, 45% of job openings for Personal Support Workers are expected to come from current workforce retirements

Response

• The COVID-19 pandemic has highlighted the acute need for additional workers in long-term care facilities, home care and assisted living services
• It has also exacerbated workforce challenges in these sectors, especially in long-term care facilities, which experienced the tragic impacts of COVID-19
• As announced in the Fall Economic Statement, ESDC is funding a pilot project by investing $38.5 million over 2 years
• This project will test a new recruitment and training model that will pilot online training, work-integrated learning and a micro-credential for up to 4,000 participants
• This approach will also test a shortened pathway to full certification while helping to address the ongoing labour shortages in long-term and home care facilities
• The project will also explore improving the consistency in occupational standards and best practices for personal support workers

If pressed on PT jurisdiction:

• the Government of Canada is testing a new training model. Provinces and Territories can choose if, and how, they apply the learnings from this pilot project that has colleges from across the country working together towards the common goal of high quality training that is responsive to urgent needs

Background

The shortage of Personal Support Workers in the long-term and home care systems has been a growing issue for several years, particularly in the context of an aging population. Through the pandemic, existing recruitment and retention challenges (for example low pay, challenging work conditions, and low perception of the occupation) have been exacerbated by absences due to illness, self-isolation and childcare responsibilities of current workers.

Announced in the Fall Economic Statement 2020, ESDC is funding a pilot project ($38.5M over 2 years) to help address labour shortages in long-term and home care.

The Long-Term and Home Care pilot project, which was launched on December 4, 2020, will test a new recruitment and training model through:

• accelerated curriculum to test online training and provide a timely supply of additional workers
• work-integrated learning to determine the benefits of on-the-job learning for this profession, and
• micro-credentials to better adapt to the needs of workers and employers and provide a shortened pathway to full certification

The online training is targeted to begin in Spring 2021, and will followed by paid work placements in Summer 2021.

If successful, this pilot may be scaled up to train additional Personal Support Worker interns, and may provide an innovative model for addressing acute labour shortages in other key sectors.

The pilot project led by Colleges and Institutes Canada, will recruit and train up to 4,000 new Personal Support Worker interns through an accelerated 6-week online training program, available free of cost, followed by a 4-month paid work placement. Employers that hire Personal Support Worker interns will receive a wage subsidy during the work placement period to offset the costs of increased supervision and on-the-job-training. The pilot project will also develop a Prior Learning Assessment and Recognition (PLAR) process that will recognize the skills and experience acquired from the accelerated online training and work placement, to assist new workers who opt to upgrade their micro-credential to a full Personal Support Worker certificate subsequent to the pilot project.

A contribution agreement is currently in place for the amount of $23.2M, which reflects the funds available until March 31, 2021. This amount allows for the recruitment, training and work placement of 2,600 Personal Support Worker interns. To meet the announced $38.5M ($35.2M in contributions) and 4,000 Personal Support Worker interns, [one sentence has been redacted].

To support the long-term sustainability, professional development and recognition of the supportive care sector, the pilot project will explore how to improve consistency across the sector with respect to training programs, work requirements, and core competencies, with a goal of creating common standards.

The Government of Canada recognizes provincial and territorial jurisdiction in this sector. However, as all jurisdictions are struggling with the COVID-19 crisis, the federal government can play an important convening role in bringing all parties together to help reduce the variability in Personal Support Worker training and certification requirements across Canada. This pilot project is meant to supplement, not duplicate, efforts where provincial or territorial training initiatives in the supportive care sector are already underway.

During the development phase of the pilot project proposal, the Sectoral Initiatives Program (SIP) consulted with key stakeholders such as worker, industry, educational stakeholders as well as government agencies. These included Health Canada, Immigration, Refugees, and Citizenship Canada, the Canadian Home Care Association (CHCA), Service Employees International Union (SEIU) Healthcare, the Canadian Union of Public Employees (CUPE), representatives of the Canadian Association of Continuing Care Educators (CACCE). To date, provinces and territories have been engaged through Health Canada’s F/PT Committee on Health Workforce and its PSW Working Group.

Funding (in millions of dollars)

Mains Estimates

Voted Appropriation Vote 5 Grants and contributions - Sectoral Initiatives Program (SIP): $5.7M

Supplementary Estimates (B), 2020 to 2021

Voted Appropriation Vote 1 Operating expenditures: $1.0M

Voted Appropriation Vote 5 Grants and contributions - Sectoral Initiatives Program (SIP): [one sentence redacted].

Public Health Events of National Concern Payments Act – 2020 to 2021: $13.0M

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone number: 613-793-3084

Name: Jade Desrochers Coderre

Title: Analyst, Sectoral Initiatives Program

No phone number: 613-857-8129

Key contact

Name: Jacinthe Arsenault

Title: Director, Sectoral Initiatives Program

Phone number: 613-240-7116

Approved by

Name: Chris Bates

Title: Director General, Apprenticeship and Sectoral Initiatives Directorate

Phone number: 613-868-6517

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB, ESDC

Phone number: 819-654-6634

Date

Date approved in SADMO: March 9, 2021

37. EI Independent Review

Context

Many stakeholders believe that, with the temporary EI transition measures in place until September 25, 2021, there is time to undertake a broader review of the EI program, in order to ensure that the program remains relevant and responsive into the 21st century.

Suggested Response

• The EI program provides essential support to workers who are facing unemployment and those who need to take time away from work due to life events
• The pandemic has emphasized the importance of the EI program, while also highlighting areas where improvements are needed
• Gaps in the EI program’s coverage of self-employed and gig workers have been especially apparent throughout the pandemic
• The Government will continue to improve the EI program going forward so that it can better meet Canada’s needs for the 21st century
• We will consult as appropriate and listen to Canadians as we recognize that both employees and employers have a stake in how the program evolves

Background

The EI program is reviewed on a regular basis through a number of mechanisms. The impact and effectiveness of the EI system is reviewed annually in the Monitoring Assessment Report (MAR), which is a requirement under the Employment Insurance Act (EI Act). An EI boundary review is required to be conducted every 5 years under the Employment Insurance Regulations. The program is also reviewed through Departmental evaluations, the EI Coverage Survey and other published evaluations. The results of these surveys and evaluations are available to stakeholders and the public.

As the EI program is tripartite in nature, it is important that the Government consult with both employers and employees. The EI Commissioners for Employers and Workers recently sent a letter request a comprehensive review of the program.

Prepared by

Name: George Rae

Title: Director, Employment Insurance Policy

Phone number: 819-661-0530

Key contact

Name: Stephen Johnson

Title: Director General, Labour Market Information

Phone number: 819-654-3801

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: November 2, 2020

38. Provincial and Territorial Job Training Efforts

Issue

Why is Employment and Social Development Canada (ESDC) requesting $1.5 billion to support individuals under the bilateral Workforce Development Agreements with provinces and territories in the Supplementary Estimates (B) for fiscal year ending March 31, 2021?

Key facts

• The impacts of the pandemic have been significant. Over 3 million Canadian workers lost their jobs from February to April 2020. Unemployment reached a record high of 13.7% in May 2020, up from 5.6% this past February
• The August labour force survey figures indicated that 1.8 million Canadian workers are still affected by the COVID-19 economic shutdown, with an unemployment rate of 10.2%
• Evidence shows that early participation in training enhances employment outcomes. Ensuring that Canadian workers have access to, and are aware of, the training and employment supports they need to prepare them to re-enter the labour market is key to an inclusive economic recovery
• The skills training and employment supports delivered by provinces and territories are a critical part of Canada's skills training infrastructure

Response

• ESDC requested $1.5B in additional funding in 2020 to 2021 for training and employment supports for Canadians through the bilateral Workforce Development Agreements (WDAs) with provinces and territories. The additional funding has provided timely support so provinces and territories can respond to the unprecedented increase in unemployed Canadians seeking skills training and employment supports. Provinces and territories are using their existing service delivery infrastructure to quickly reach the broadest range of Canadians
• This immediate support will reach workers and employers in sectors hardest-hit by COVID-19, as well as groups particularly disadvantaged as a result of the pandemic. This is in addition to the $3.4 billion already being provided for employment benefits and supports to individuals through the Labour Market Development Agreements and Workforce Development Agreements in 2020 to 2021
• Funding will enable individuals across Canada gain access to training delivered by provinces and territories that complies with public health requirements during Covid-19
• Training and employment supports are key to ensuring that Canadians gain the skills they need to find employment. By providing the new funding through the WDAs, we are ensuring support will be provided to groups particularly disadvantaged by the pandemic

Background

In response to the COVID19 pandemic, the Government of Canada provided an additional $1.5 billion in 2020 to 2021for training and employment supports to individuals through the bilateral Workforce Development Agreements (WDAs) with provinces and territories (PTs). This immediate support responds to the increased number of Canadians looking to re-enter the workforce, and targets workers and employers in sectors hardest-hit by COVID-19, as well as groups particularly disadvantaged as a result of the pandemic. This is in addition to the $3.4 billion already provided to PTs under the Labour Market Development Agreements (LMDAs) and WDAs in 2020 to 2021.

PTs have strong service delivery networks in place that are already adapting to social distancing requirements. Providing this investment to individuals through the WDAs ensures quick access to training for Canadian workers, including gig-workers and the self-employed. Canadians will have access to programs such as skills training, wage subsidies, job search assistance and career counselling.

The funding has been allocated among PTs based on 2 equally-weighted variables: 50% of the funding has been allocated based on the PT’s share of total employment losses in the ten most affected sectors; and, 50% has been allocated based on their share of the Canadian population.

The Government of Canada is committed to fostering an inclusive labour market that strengthens and grows the middle class. As Canada’s population ages, technology advances, and the labour market experiences increasing volatility, the Government of Canada is taking steps to ensure that all workers get the skills they need to find jobs, and that no one is left behind.

Programs delivered under the WDAs provide skills training and employment programming with a focus on those further removed from the labour market and those wishing to upskill, including those who may not be eligible for Employment Insurance (EI). The WDAs can assist individuals regardless of their employment status. Those who are unemployed, underemployed, employed or self-employed can receive supports for upskilling, career reorientation and on-the-job-training, to ultimately find and maintain good jobs.

The WDAs also include specific funding targeted for persons with disabilities, and can also be used to support members of underrepresented groups such as visible minorities, Indigenous peoples, youth, older workers, and newcomers to Canada. The WDAs can also support employers seeking to train current or future employees to fill available jobs or enhance the skills of their workforce.

FTE and Funding ($000’s)

FTE

Existing FTEs – 24

Supps B – 2020 to 2021 FTEs – 6

Total FTEs – 30

Salary

Existing Funding: $2,250

Supps B – 2020 to 2021: $595

Total Funding: $2,845

O&M

Existing Funding: $218

Supps B – 2020 to 2021: $1,161

Total Funding: $1,379

Total Operating

Existing Funding: $2,468

Supps B – 2020 to 2021: $1,756

Total Funding: $4,224

EBP

Existing Funding: $333

Supps B – 2020 to 2021: $160

Total Funding: $493

Sub-Total

Existing Funding: $2,801

Supps B – 2020 to 2021: $1,916

Total Funding: $4,717

Vote 5 G&C

Existing Funding: $922

Supps B – 2020 to 2021: $1,498,084

Total Funding: $2,420,084

Total

Existing Funding: $924,801

Supps B – 2020 to 2021: $1,500,000

Total Funding: $2,424,801

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone number: 613-793-3084

Key contact

Name: Saajida Deen

Title: A/Executive Director, SEB, ESDC

Phone number: 613-790-3566

Approved by

Name: Saajida Deen

Title: A/Executive Director, SEB, ESDC

Phone number: 613-790-3566

and

Name: Mark Perlman

Title: Chief Financial Officer, CFOB, ESDC

Phone number: 819-654-6634

Date

Date approved: March 8, 2021

39. Parliamentary background and analysis

Appearance by the Honourable Minister of Employment, Workforce Development and Disability Inclusion - Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) - Main Estimates 2021 to 2022 and Supplementary Estimates (C) 2020 to 2021 - Tuesday, March 16, 2021 | 3:30 – 4:30

1. Background

The Supplementary Estimates (C) and the Main Estimates 2021 to 22 were tabled in the House of Commons in February 2021. You are invited to appear before HUMA on March 11, for 1 hour. The following senior officials from ESDC will be supporting you, as required, during the meeting.

• Graham Flack, Deputy Minister of Employment and Social Development
• Catherine Adam, Senior Assistant Deputy Minister, Strategic and Service Policy Branch
• Cliff C. Groen, Senior Assistant Deputy Minister, Benefits and Integrated Services Branch, Service Canada
• Janet Goulding, Associate Assistant Deputy Minister, Income Security and Social Development Branch
• Benoit Long, Chief Transformation Officer, Service Canada
• Mark Perlman, Chief Financial Officer and Senior Assistant Deputy Minister

Your colleague, the Minister of Families, Children and Social Development will appear in the 2nd hour on both the Main Estimates and the Supplementary Estimates on March 11. The Minister of Seniors may appear later in March.

The meeting will provide an opportunity for Committee Members to discuss what the Government accomplished since the pandemic began. It is anticipated that a wide variety of issues will be raised; including, the repayment of the Canada Employment Recovery Benefit (CERB), the new Canada Recovery Benefits (CRB) and Employment Insurance (EI) reform. As the summer months approach, MPs could also discuss youth employment and the Canada Summer Jobs Program as well as the Temporary Foreign Worker Program to help support the agricultural sector.

On December 11, 2020, when you last appeared before the Committee, the Conservative Party of Canada (CPC) focussed many of their questions on the repayment of benefits such as CERB; whereas, the New Democratic Party (NDP) focussed on Canada’s obligations under the United Nations Convention on the Rights of Persons with Disabilities and Personal Support Worker Training in Long-Term and Home Care. MP Leah Gazan might ask you to provide additional information on these 2 topics.

2. Committee Proceedings

You will be provided with 5 minutes for your opening remarks.

HUMA is composed of 12 MPs. Two new members have joined the Committee in recent weeks. They are Manitoba MP Raquel Dancho CPC, who is also the new Shadow Minister for Future Workforce Development and Disability Inclusion, and Saskatchewan MP Corey Tochor (CPC), who is also the new Shadow Minister for Families, Children and Social Development. The Chair is Liberal MP Sean Casey and the 2 Vice-Chairs are CPC MP Raquel Dancho and Bloc Québécois (BQ) MP Louise Chabot. Ms. Chabot is the Employment Critic.

Other members are:

• Han Dong, Liberal (Lib)
• Rosemarie Falk (CPC)
• Leah Gazan (NDP)
• Wayne Long (Lib)
• Corey Tochor (CPC)
• Ryan Turnbull (Lib)
• Adam Vaughan (Lib)
• Brad Vis (CPC)
• Kate Young (Lib)

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

The first round of questioning:

• 6 minutes for the Conservative Party
• 6 minutes for the Liberal Party
• 6 minutes for the Bloc Quebecois
• 6 minutes for the New Democratic Party

For the second and subsequent rounds of questioning:

• 5 minutes for the Conservative Party
• 5 minutes for the Liberal Party
• 2.5 minutes for the Bloc Quebecois
• 2.5 minutes for the New Democratic Party
• 5 minutes for the Conservative Party
• 5 minutes for the Liberal Party

3. Parliamentary Analysis

In addition to issues specific to the Estimates documents, you might receive questions from opposition party members related to the following ESDC issues:

Employment Insurance

The topic of EI could dominate on March 11. On February 18, HUMA began a Study of the Review of the EI Program and heard from ESDC senior officials. MP Louise Chabot pressed ESDC officials to provide an overview of the changes considered by your Department and might ask for your recommendations. MP Leah Gazan was focussed on EI for the self-employed, temporary foreign workers and those in the gig economy and could follow up on these specific issues. A variety of related topics also included:

• extending CRBs, statistics on number of Canadians who have requested the benefits and the cost of the overall benefits
• bridging the gap between EI sickness and long-term disability, such as the CPP disability
• reforming all aspects of the Program: eligibility criteria and periods, benefit rates, etc.
• details on the EI seasonal pilot project (or “trou noir”)
• reviewing the EI zones led by the EI commission

Of note, ESDC officials provided an overview of Government of Canada's legacy systems that support the delivery of our key income support programs, including the EI system which is nearly 50 years old. This statement was of concern to the Committee. In recent years, the Auditor General of Canada also reported that chronic underinvestment in information technology (IT) has put ESDC in a situation where the systems could fail and affect the ongoing delivery of critical programs and services to Canadians. MPs might inquire about the legacy systems and what is being done to modernize them and ensure they remain safe and efficient in the delivery of these benefits. The Supplementary Estimates (C) includes $11 million in funding for the Stabilization of IT in Support of Program Delivery and $6.7 million in funding for Benefits Delivery Modernization.

There is a possibility that the Committee may wish to discuss Bill C-24 introduced on February 25. In general, all parties favour extending the CRBs (through Regulations). In particular, the BQ has been advocating for the Government to increase the maximum number of weeks available to workers through EI regular benefits. This line of questioning could lead to a wider discussion on what could be added to the Bill.

On the portion of the Bill regarding travel, opposition parties will likely agree that travellers returning to Canada should be ineligible to receive support from any of the CRBs for the period of their mandatory quarantine or isolation. However, MPs might turn their attention to unforeseen consequences of other new rules obliging international air travellers to quarantine in hotels upon arrival in Canada. The plan is facing criticism and the issue was discussed during Question Period.

Canadians with Disabilities: providing support to the most vulnerable

ESDC has played a significant role in developing innovative measures to financially assist Canadians during the pandemic. In general, these measures received support from opposition parties. At the November 4 meeting, BQ MP Louise Chabot asked if the Government is planning to provide additional help to Canadians with disabilities. You answered that a decision had not been made and that discussions were ongoing. In light of the anticipated federal Budget and the supplementary commitment included in your mandate letter to bring forward a Disability Inclusion Action Plan, you might receive questions on this topic.

NDP MP Leah Gazan may also used the opportunity to ask you about committing to a guaranteed basic income as a means to help vulnerable Canadians out of poverty. This issue is of great interest to the NDP.

40. House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities - (HUMA)

Committee Profile - (February 2021)

Table of Contents

HUMA Membership 3

Sean Casey (LPC) 4

Wayne Long (LPC) 5

Han Dong (LPC) 6

Ryan Turnbull (LPC) 7

Adam Vaughn (LPC) 8

Kate Young (LPC) 10

Rosemarie Falk (CPC) 11

Raquel Dancho (CPC) 12

Corey Tochor (CPC) 13

Brad Vis (CPC) 14

Leah Gazan (NDP) 15

Louise Chabot (BQ) 16

Liberal party of Canada

Sean Casey (Président), Île-du-Prince-Édouard

Han Dong, Ontario

Wayne Long, Nouveau Brunswick

Ryan Turnbull, Ontario

Adam Vaughan, Ontario, SP du ministre de la Famille, des Enfants et du Développement social (Logement)

Kate Young, Ontario, SP de la ministre du Développement économique et des Langues officielles (FedDev Ontario)

Conservative party of Canada

Raquel Dancho, Manitoba, Emploi, Développement de la main-d’œuvre et Inclusion des personnes handicapées

Rosemarie Falk, Saskatchewan, Porte-parole en matière d’aînés

Corey Tochor Saskatchewan Porte-parole en matière de Familles, d’Enfants et de Développement social

Brad Vis, Colombie Britannique, Porte-parole en matière de logement, Porte-parole en matière de Familles, d’Enfants et de Développement social

New democratic party of Canada

Leah Gazan, Manitoba

Bloc Quebecois

Louise Chabot (vice-présidente), Québec, Porte-parole en matière d’Emploi, de Développement de la main-d’œuvre et de Travail

Sean Casey, Liberal Party, Charlottetown, Prince Edward Island

Brief Biography

Sean was born in St. John’s, Newfoundland but grew up in Fredericton, New Brunswick. He received his Bachelor of Business Administration with a major in Accounting from Saint Francis Xavier University. He worked for the New Brunswick Telephone Company before attending Dalhousie Law School, graduating in 1988. While attending Dalhousie, he was on the Student Union Executive and served as President of the Law Students Association. Upon graduating, Sean served as a summer student at what was then Scales Jenkins and McQuaid (now Stewart McKelvey) in Charlottetown, Prince Edward Island.

He continued to work with the firm and was named a partner at 29 years of age. In 2003, Sean left the firm to take a leadership role in the family business, commonly known as Paderno. That was also the year he ran his first of 4 marathons. In 2008, Sean rejoined Stewart McKelvey where he served as Regional Managing Partner. In 2011, Sean was elected the Member of Parliament of Charlottetown. He was re-elected in 2015, and again most recently in 2019. In Parliament, Sean has served most recently as the Parliamentary Secretary to the Minister of Fisheries, Oceans, and the Canadian Coast Guard. He has previously served as the Parliamentary Secretary to the Minister of Justice and Attorney General of Canada, as well as the Parliamentary Secretary to the Minister of Canadian Heritage.

He is currently the Chair of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, a member of the Standing Committee on Veterans Affairs, and Chair of the Liberal Atlantic Caucus.

Wayne Long, Liberal Party, Saint John — Rothesay, New Brunswick

Brief Biography

Wayne Long is a member of the Saint John community with national and international business experience. Wayne currently serves as President of the Saint John Sea Dogs, and his efforts have helped turn the team into one of Canada’s most successful CHL hockey franchises winning the cherished Memorial Cup in 2011. That same year, Wayne was recognized with the John Horman Trophy, awarded to the Top Executive in the QMJHL.

Prior to his work with the Sea Dogs, Wayne was President of Scotiaview Seafood Inc. He was also a successful large-scale product manager with Stolt Sea Farm Inc. Wayne’s work has seen him travel across North America, negotiating contracts with national restaurant distributors, restaurant chains, and retail chains. He earned the North American Excellence in Sales and Marketing award twice. Wayne is a former Board Member for Destination Marketing and Salmon Marketing.

Wayne was born in the riding, has lived in the riding 44 years, and currently calls the area home alongside his wife, Denise, and their 2 children, Khristian and Konnor.

Han Dong, Liberal Party, Don Valley North, Ontario

Brief Biography

Raised and educated in Toronto, Han Dong, his sister, and his parents immigrated to Canada from Shanghai in 1990. Growing up working at his parent’s 24-hour coffee shop, Han learned the value of hard work, family, and community which ultimately lead him to public service.

In 2014, Han was elected as a Member of Provincial Parliament (MPP), gaining valuable legislative experience.

Han works with a Toronto based high-tech company dedicated to building safer communities with digital neighbourhood watch technology. He has also shown leadership in promoting Toronto's diversity, currently serving as the leader of the Chinatown Gateway Committee established by Mayor John Tory.

Han and his wife Sophie, are the proud parents of Emma and Matthew.

Ryan Turnbull, Liberal Party, Whitby, Ontario

Brief Biography

Ryan Turnbull is a passionate change maker, experienced entrepreneur and social innovation that has devoted his life to advance ethical leadership, social responsibility, and build a more ethical economy and society. Ryan has raised his young family in the Durham Region for over 5 years and has deep roots in the Whitby community, where he recently moved.

Ryan has taken advanced leadership training and earned an MA in philosophy from Carleton University. Ryan has taught and developed curriculum at multiple post-secondary institutions around the world. Over the last decade, Ryan has led the development of a successful social innovation consulting firm that has had a direct social impact on the organizations, communities and the people they serve, in the Durham Region and across Ontario. Ryan has worked with over 250 charitable organizations, has advised government at all levels and has led over 350 impactful projects and his work has had a direct and positive influence on the quality of life for all segments of the population including children, youth, seniors, immigrants, refugees, people with disabilities, Indigenous people, women, LGBTQ2S, and many others. Ryan has also served on the board of directors for Food Secure Canada and the Ethics Practitioners’ Association of Canada.

Adam Vaughn, Liberal Party, Spadina—Fort York, Ontario

Brief Biography

Adam Vaughan was first elected to the House of Commons for Trinity-Spadina on June 30, 2014. On October 19, 2015, Adam was re-elected in the new riding of Spadina-Fort York, and was re-elected for a second full term on October 21, 2019.

Adam was elected twice to Toronto City Council before voters sent him to Ottawa to represent urban issues in Parliament. As an activist and as a journalist, Adam has played a significant role in the social and economic growth of Toronto. Adam Vaughan brings a lifetime of experience to federal politics. On City Council he played a major role in reforming the planning process in the city. He led successful campaigns to rebuild and revitalize existing public housing stock while initiating new policies to create family housing, supportive housing and new co-op housing programs in Toronto.

Together with residents, he spearheaded the revitalization of the Alexandra Park community: a significant neighbourhood in Toronto that will see new affordable housing, new commercial space, a re-built community and more parkland added to the downtown. Adam Vaughan’s record in office demonstrates strong support for the arts and housing in Toronto.

While on council, he championed the expansion of OCAD University’s campus and led the campaign to save Theatre Passe Muraille. He also served on the Boards of the Toronto Arts Council, the Art Gallery of Ontario, Harbourfront Centre and Heritage Toronto. Before entering politics, Adam was a broadcast journalist for more than 20 years, specializing in municipal affairs for both the CBC and Citytv. He covered all 3 levels of government and has written about urban issues too.

In the 41st Parliament, Adam was appointed the Liberal Critic for Housing and Urban Affairs and worked with Justin Trudeau, Liberals, and local governments across the country to re-establish a national housing policy as part of a new urban agenda for Canada.

On December 2, 2015, Adam was appointed Parliamentary Secretary to the Prime Minister for Intergovernmental Affairs. He served in this role until January 26, 2017, when he was appointed to the position of Parliamentary Secretary to the Minister of Families, Children and Social Development (Housing and Urban Affairs).

On February 1, 2017, Adam was appointed to chair an Advisory Committee on Homelessness composed of experts and stakeholders in the field of homelessness to support the renewal of the Homelessness Partnering Strategy.

He is currently Parliamentary Secretary to the Minister of Families, Children, and Social Development (Housing) and a member of the Standing Committee on Human Resources, Skills and Social Development, and Status of Persons with Disabilities.

Kate Young, Liberal Party, London West, Ontario

Brief Biography

Kate Young was first elected Member of Parliament for London West in October 2015. She is the Parliamentary Secretary to the Minister of Economic Development and Official Languages (FedDev Ontario). She has also served as the Parliamentary Secretary for Transport for Science and Sport, and for Public Services and Procurement and Accessibility (Accessibility); and Parliamentary Secretary for Transport.

Prior to being elected, Kate had a lengthy career in journalism and public relations in both the private and public sector. Best known as the first female news anchor at CFPL-TV in London, Kate was also the Manager of Public Affairs and Community Relations for the Thames Valley District School Board and Manager of Community Relations at TD Financial Group.

As a community organizer, Kate has volunteered much of her free time with organizations that directly impact London West, including the London Health Sciences Foundation Board of Directors, the Fanshawe College Board of Directors, and the Museum London Board of Directors. In 2007, London City Press Club named Kate Newsmaker of the Year for her outstanding service to the London community.

Kate has a diploma in Journalism (Broadcast) from Fanshawe College and is the proud mother of 2 children. She is also a grandma to twin boys. Kate grew up in London West, attended Westminster Secondary School, and continues to live in the riding with her partner Brian.

Rosemarie Falk, Conservative Party, Seniors Critic, Battlefords — Lloydminster, Saskatchewan

Brief Biography

Rosemarie Falk is the federal Member of Parliament for Battlefords-Lloydminster. She was first elected to the House of Commons in a federal by-election on December 11, 2017.

Under the leadership of the Hon. Erin O’Toole, Rosemarie serves as the Shadow Minister for Seniors. She is also a member the Standing Committee on Human Resources, Skills and Social Development and Status of Persons with Disabilities.

Rosemarie was born and raised in Lloydminster, Saskatchewan. Along with her husband Adam, she is now raising her 3 children there. She has a Bachelor of Social Work from the University of Calgary. Throughout her work and volunteer experience, she has been actively engaged in her community working with some of the most vulnerable members of the community.

Rosemarie is committed to being a strong voice for seniors, families, taxpayers and rural communities. She is in federal politics to help build a stronger Canada today and for the next generation.

Raquel Dancho, Conservative Party, Employment, Workforce Development and Disability Inclusion Critic, Kildonan – St. Paul, Manitoba

Brief Biography

Raquel Dancho is the Member of Parliament for Kildonan – St. Paul – elected on October 21, 2019.

Ms. Dancho grew up in Beausejour, Manitoba, from 4 generations of Canadian farmers. Raised in a family of entrepreneurs, she learned the importance of personal responsibility, resourcefulness and perseverance at a young age. She is the first in her family to attend university and the first to work in politics.

Ms. Dancho has 15 years of diverse work experience in both the public and private sector. She dedicated many hours of volunteer work with the elderly, children in Child and Family Services, and at her local church. She has also coached various sports in her hometown and been politically active since childhood.

Ms. Dancho graduated with a French-bilingual high-school diploma and went on to receive a Bachelor of Arts degree from McGill University, majoring in Political Science, and minoring in World Religions and Canadian Studies. While attending university, she worked in a French restaurant to pay her bills and better her French skills.

Following university, Ms. Dancho earned a competitive research internship at the Frontier Centre for Public Policy in Winnipeg. Shortly thereafter, she became a policy analyst in the Progressive Conservative Caucus for Manitoba’s Official Opposition.

Following the 2016 Manitoba Progressive Conservative election victory, she became the Executive Assistant to the Minister of Sustainable Development for the Manitoba Government. She was then promoted to serve as the Special Assistant to the Minister of Sport, Culture and Heritage for the Manitoba Government.

Corey Tochor, Conservative Party, Families, Children and Social Development Critic, Saskatoon—University, Saskatchewan

Brief Biography

Corey Tochor is the Member of Parliament for Saskatoon University – elected on October 21, 2019.

Prior to entering politics, Mr. Tochor was a local Saskatoon entrepreneur who owned and operated Health Conveyance, a communications company that provides electronic messaging in health facilities across the province. He graduated with a commerce degree from the University of Saskatchewan with a major in Finance. He had a successful career in sales, e-learning consulting and pharmaceuticals before starting his own business.

As an active volunteer in his local community, Mr. Tochor has served for many years on the executive of the Kinsmen Club of Saskatoon, including on the corporate board for Telemiracle 33, chair of fundraising projects and treasurer of the Kinsmen Activity Place House, a community center supporting Saskatoon’s core.

Mr. Tochor has a wealth of legislative experience and was first elected to the Saskatchewan Legislature in the 2011 provincial election and re-elected in 2016. His legislative responsibilities began early in his first term when he served as Deputy Chair of Committees. He then served as Deputy Whip and was later appointed Deputy House Leader by Premier Wall. Shortly after being re-elected, Mr. Tochor was elected Speaker of the Legislature.

Mr. Tochor was born and raised in Esterhazy, Saskatchewan. He currently resides in Saskatoon with his wife Danielle and their 2 young sons, Jacob and James.

Brad Vis, Conservative Party, Housing Critic, Mission—Matsqui—Fraser Canyon, British Columbia

Brief Biography

Born in Matsqui, British Columbia, Brad has deep roots in the Fraser Valley. The grandson of Dutch immigrants, he was raised on the values of hard work, sacrifice, integrity and determination.

Brad has spent the majority of his career working in government, politics and the agri-business sector. His professional background extends to the fields of communications, public relations and policy development.

Brad holds a bachelor’s degree in Political Science from the University of British Columbia and a master’s degree in Political Science from Carleton University.

Elected in 2019, Brad is honoured to represent all residents of Mission–Matsqui–Fraser Canyon and is thrilled to work hard on their behalf. His mission is to raise issues and work to accomplish the goals of the riding in Ottawa rather than work as Ottawa’s representative in the riding.

Under the leadership of the Hon. Erin O’Toole, Brad serves as the Shadow Minister for Housing and is a member of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA).

Brad is happily married to Kathleen and the father of Declyn and Nicholas.

Leah Gazan, New Democratic Party, Families, Children and Social Development Critic, Winnipeg Centre, Manitoba

Brief Biography

Leah Gazan was elected as the Member of Parliament for Winnipeg Centre in October 2019. She is currently the NDP Critic for Children, Families, and Social Development, as well as the Deputy Critic for Immigration, Refugees, and Citizenship. Gazan is a member of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, and the Standing Joint Committee on the Library of Parliament. She recently introduced a private member's bill, Bill C-232, The Climate Emergency Action Act, which recognizes the right to a healthy environment as a human right.

As an educator, advisor, and media contributor, Leah Gazan has been deeply engaged with issues and organizing in Winnipeg’s core for nearly 3 decades. Gazan has spent her life working for human rights on the local, national, and international stage. Her recent success includes organizing and traveling across the country to push Bill C-262, the Indigenous Human Rights Act.

Her contributions in Winnipeg have both shaped our understanding of our collective struggles and strengths, and helped move us towards justice. As president of the Social Planning Council between 2011 to 2015, Gazan organized and pushed policy in support of an end to poverty, addressing violence against women and girls, finding solutions for housing insecurity and homelessness, ensuring fair wages, community-based actions addressing addictions, and proper supports for mental health.

Gazan was a prominent Winnipeg lead during Idle No More, articulating the movement to the Winnipeg public. Gazan also co-founded the #WeCare campaign aimed at building public will to end violence against Indigenous women and girls. Gazan is a member of Wood Mountain Lakota Nation, located in Saskatchewan, Treaty 4 territory.

Louise Chabot, Bloc Québecois, Employment, Workforce Development and Labour Critic, Thérèse-De Blainville, Quebec

Brief Biography

Louise Chabot, born in 1955 in Saint-Charles-de-Bellechasse, Quebec, is a Quebec trade unionist and politician. She was president of the Centrale des Syndicates du Québec (CSQ) from 2012 to 2018. The organization initially represented nearly 200,000 members, including 130,000 in the education and early childhood sector. She coordinated a major unionization project that resulted in the consolidation of more than 15,000 family day care managers, a first in the union world in Canada. On October 21, 2019, she was elected as a Bloc Québécois Member of Parliament for the riding of Thérèse-de-Blainville.

Subject

41. Ministerial correspondence from HUMA members and critics

Issue / question

Correspondence from HUMA members and Critics addressed to the Minister of Employment, Workforce Development and Disability Inclusion received between September 1, 2020 and February 28, 2021.

Background

Minister Qualtrough has received 17 letters between September 1, 2020 and February 28, 2021:

• MP Raquel Dancho –
• one letter received on September 9, 2020, for which a response was prepared on September 16, 2020

Topic:

Employment Insurance - Work Sharing Program:

• MP Corey Tochor –
• one letter received on February 9, 2020, for which a response is being prepared

Topic:

Federal Student Loans interest rate

MP Brad Vis – 2 letters received:

• one on January 7, 2021, for which the response was sent to MinO on February 10, 2021, for signature; and one on January 21, 2021, for which the response was sent to MinO on February 26, 2021, for signature

Topics:

Temporary Foreign Worker Program – International farm workers and housing; and Support and accessibility for Canadians living with disabilities.

MP Leah Gazan – 2 letters received:

• one on January 4, 2021, for which the response is being prepared, and
• one on February 5, 2021, for which the response is being prepared

Topics:

The Canada Emergency Response Benefit; and Support for persons living with disabilities.

MP Louise Chabot (Employment, Workforce Development and Labour Critic) – 2 letters received:

• both letters received on October 26, 2020, for which responses were prepared on February 23, 2021

Topics:

The Canada Recovery Benefit; and Temporary Foreign Workers – Agriculture.

MP Daniel Blaikie, NDP (Employment, Workforce Development and Labour Critic) – 9 letters received:

• September 14, 2020, for which the response was prepared January 13, 2021

Topic:

Employment Insurance for forestry workers

• October 5, 2020, for which the response is being prepared

Topic:

The Canada Emergency Response Benefit

• November 12, 2020, for which the response was sent to MinO on February 3, 2021, for signature

Topic:

Employment Insurance – Maternity Benefits

• December 15, 2020, for which a response was prepared on February 26, 2021

Topic:

Employment Insurance for migrant workers / The Canada Recovery Benefit

• December 18, 2020, for which a response is being prepared

Topic:

Support for persons living with disabilities

• December 18, 2020, for which a response is being prepared

Topic:

Employment Insurance – Regular and Sickness Benefit / The Canada Recovery Benefit / The Canada Pension Plan Disability

• December 18, 2020, for which the response was sent to MinO on March 4, 2021, for signature

Topic:

The Canada Recovery Benefit – Claw Back

• January 20, 2021, for which a response is being prepared

Topic:

The use of gender as identity authentication

• February 22, 2021, for which a response is being prepared

Topic:

The Canada Recovery Benefit – Administrative barriers

42. Vote 1 – Increase in Operating Funds

Context

What is causing the $273.6 million increase in Main Estimates 2021 to 2022? What are examples of big items driving this (for example hiring x additional people to deal with processing and call centres)?

Key Facts

ESDC's Operating Vote 1 was $803.3M in Main Estimates 2020 to 2021 and $1,076.9M in Main Estimates 2021 to 2022; an increase of $273.6M or 34.1%

• The largest increase is for Integrity activities related to CERB and CESB at both ESDC at CRA. ESDC is hiring 327 FTEs, of which 282 will be hired regionally to perform integrity investigations (evidence collection, in-person interviews, reporting, etc.) on Service Canada administered benefit applications. CRA will require 1,135 new FTEs in 2021 to 2022 to focus on integrity foundational work, program enhancements, and the rollout of compliance activities (for example T1 matching, identity theft, and fraud)
• Other increases in FTEs include 275 for Old Age Security (OAS) workload, and 236 for the Youth Employment Skills Strategy for the Canada Summer Jobs Program
• In order to respond to demand and service standards, ESDC has secured funds for over 2,400 additional employees in 2021 to 2022 to work on processing, call centres and other functions for EI, CPP, and OAS

Suggested Response

The increase of $273.6 million is mainly attributable to the item listed below:

• an increase of $174.0 million for administration and integrity of the Canada Emergency Response Benefits and the Canada Emergency Student Benefit
• an increase of $30.7 million to perform the integrity function for the EI Emergency Response Benefit
• an increase of $29.2 million for Old Age Security (OAS) workload
• an increase of $23.1 million for compensation adjustments
• an increase of $20.4 million for the Youth Employment Skills Strategy for the Canada Summer Jobs Program
• an increase of $14.1 million for Technical Debt Remediation which aims to stabilize IT in support of program delivery
• an increase of $1.1 million in other items

These increases are offset by a decrease of $19.0 million for the Old Age Security – Service Improvement Strategy and Platform Stabilization and Remediation.

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone Number: 819-654-6402

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer, Chief Financial Officer Branch

Phone number: 613-295-2555

Approved by

Name: Mark Perlman

Title: Chief Financial Officer

Phone Number: 819-654-6634

Date: March 8, 2021

43. Canada Student Loan Write-Off Trends

Context

What are the trends in Canada Student Loan (CSL) write-offs?

Key Facts

• $188.1 million (principal and interest) in unrecoverable student loans from 30,289 directly financed Canada Student Loan (CSL) accounts are recommended for write-off in 2020 to 2021
• In 2019 to 2020, the Government (GoC) recommended 33,098 accounts for write-off, valued at $180.4 million. The increase in the write-off amount relative to last year is explained by normal variation from year to year, and partly due to the growing size of the direct student loan portfolio, which grew 6% in dollar value from 2017 to 2018

Suggested Response

• This year’s write-off submission is for $188.1 million, compared to last year’s submission for $180.4 million. The value of loans written-off over the past several years have been approximately 1% of the overall value of the directly financed CSL portfolio. See Table 4

Table 4: Direct lending portfolio and write-offs

Loan Year	Write-Off Actual ($ millions)	Portfolio as at Aug 1* ($ millions)	Write-Off / Portfolio
2001 to 2002	0	$1,562	0
2002 to 2003	0	$3,079	0
2003 to 2004	0	$4,329	0
2004 to 2005	0	$6,050	0
2005 to 2006	0	$6,802	0
2006 to 2007	$0.3	$8,114	0.004%
2007 to 2008	$0.4	$9,259	0.004%
2008 to 2009	0	$10,290	0
2009 to 2010	0	$11,293	0
2010 to 2011	0	$12,306	0
2011 to 2012	$302.4	$13,302	2.3%
2012 to 2013	$226.8	$14,084	1.6%
2013 to 2014	N/A	$15,019	N/A
2014 to 2015	$287.4	$16,141	1.8%
2015 to 2016	$172.0	$16,934	1.0%
2016 to 2017	$174.8	$17,716	1.0%
2017 to 2018	$200.0	$18,214	1.1%
2018 to 2019	$162.2	$19,337	0.84%
2019 to 2020	$180.4	$20,516	0.88%
**2020 to 2021	$188.1	$22,066	0.92%

*Extract from the Actuarial Report on the Canada Student Loans Program as at July 31, 2019. Loan year is August 1 to July 31.
** Portfolio value as at Aug 1, 2020.

Background

The GoC has not always written-off CSLs on an annual basis. As such, write-off submissions have not always covered 12 months’ worth of loans. For example, the 2014 to 2015 submission was for loans identified for write-off over a 25-month period. This year’s write-off covers 12 months.

The Office of the Chief Actuary (OCA) monitors the performance of the CSL portfolio and makes projections for future default and write-off volumes. The $188.1 million proposed for the 2020 to 2021 write-off is lower than the $196 million projected by OCA in its most recent report published July 31, 2020. It is worth noting that this year’s projected write off for 2020 to 2021 increased from $180 million from the previous year’s OCA report. The OCA increased their estimates report based on estimates of the impact of the COVID-19 pandemic and resulting 6-month repayment and collections moratorium. The actuarial report predicts recoveries normally received between March 30 and September 30, 2020 will not be recouped in future years.

The OCA projects that write-off values will continue to represent approximately 1% of the CSL portfolio, even as the size of the portfolio continues to grow.

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone Number: 819-654-6402

Key contact

Name: Agata Frankowicz

Title: A/Director General, CSLP, Learning Branch

Phone Number: 613-618-4780

Approved by

Name: Mark Perlman

Title: Chief Financial Officer

Phone Number: 819-654-6634

Date: March 7, 2021

44. Example of Money Spent on Safeguarding Personal Information

• For safeguarding personal information ($3.1 million), does this include our work to move to2-factor authentication? Again, a practical example here would help. The answer is cut pretty high in talking about the risks we are trying to address but doesn’t give me a sense of something precise the money is being spent on (the Q&A mentions $2.7 m to advance work with P/T partners - is that just staff or is there something tangible in technology we are acquiring)
• With the increase of identity theft and cyber attacks, we must constantly upgrade our technology to better protect Canadians’ personal information that Canadians entrust in us from internal and outsider thereat
• The $3.1M from the CRF will help us replace a slow, paper based, exchange of death notification with a timely electronic death information from the provinces and d territories to reduce the risk of fraudulent use of deceased individuals’ identity. It will also allow us to better detect internal threat
• Additional work to enhance the identity validation and authentication of clients is funded through the Employment Insurance operating account, such as the use of Multi-Factor Authentication to add proof of identity before accessing My Service Canada Account or the Simplified Digital Identity Validation which will leverage provinces and private sector identity validation to confirm clients’ identity and remove the need for the access code received currently by mail

Initiative

1. Detecting insider threats

Access monitoring

Access monitoring cont’d

EI 8.7

CRF 0.4

EBP 0.5

Total of item 1 9.5

Initiative

2. Enhanced digital solutions with PTs

Death registration and notification cont’d

Death registration and notification

EI 0.5

CRF 2.3

EBP 0.4

Total of item 2 3.2

Initiative

3. Stronger Authentication and Login Credential Tools

Simplified Digital Identification Validation

Trusted Digital Identity Framework

EI 3.2

CRF 0

EBP 0.7

Total of item 3 3.9

Total 16.6

Note: * Excludes Corporate Cost and SSC

45. Annuities Write-off

Context

To what program does the annuities write-off relate?

Key Facts

• The Government Annuities Account write offs pertain to debts from 2015 to 2020
• The majority of overpayments result from late notification of death

Suggested Response

• The Government Annuities Account (GAA) was established by the Government Annuities Act that came into force on September 1, 1908. Later modified by the Government Annuities Improvement Act (GAIA) that increased the rate of return to Canadians. This program enabled Canadians to provide for their later years, through the purchase of deferred and immediate annuities, either individually or under the terms of an employer group pension plan. The sale of annuities formally ended in 1975
• As of March 31, 2020, there were 101 outstanding deferred annuities, the last of which will come into payment in 2032
• There are 21,949 active contracts as of March 31, 2020 and the average amount paid is $680.84
• The average age of annuitants is estimated to be 86, and the remaining life of the accounts is estimated at 39 years as at March 31, 2020

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone Number: 819-654-6402

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer, Chief Financial Officer Branch

Phone number: 613-295-2555

Approved by

Name: Mark Perlman

Title: Chief Financial Officer

Phone Number: 819-654-6634

Date: March 8, 2021

46. CERB Statistics Website – $7B variance

Context

What is the latest website information for CRB, CRCB, and CRSB (spend-to-date, number of unique applicants)?

Key facts

• Total Canada Emergency Response Benefit (delivered by Service Canada and Canada Revenue Agency, combined) and EI Benefits as of October 4, 2020 can be found on the following website: /content/canadasite/en/services/benefits/ei/claims-report.html
• In April 2020, the government began weekly publishing on the Canada.ca website consolidated CERB and non-CERB EI payment data. This was done to meet commitments for transparency in reporting. At that time, it was not possible to quickly separate non-CERB EI payment data from CERB payment data for public reporting purposes
• As a result, the Canada Emergency Response Benefit (CERB) data published on the Canada.ca website reported, up until February 16, CERB and EI expenditures together, showing a total expenditure of $81.64 billion. A note was included on the website to document the data limitation
• ESDC has worked to disaggregate CERB and non-CERB EI payments to allow more accurate reporting of CERB expenditures. The website was revised on Feb 16 and now reports the numbers in the Department’s data system reports for CERB payments, which total $74.08 billion as of October 4, 2020 (for example the end date of the program). The difference of $7.56 billion represents non-CERB EI payments that were made until October 4, 2020
• ESDC has also updated the Canada.ca website to include an additional footnote to clarify the changes to the previously reported total costs for CERB as of October 4, 2020. In addition, work will continue in order to update the website for applications received after October 4, 2020 for retroactive benefits paid
• The website shows benefits paid of $74.08B. The $76.5B in Supps C reflects the estimate Finance put in the FES. The $76.5B also includes operating costs

Suggested Response

• The total EI non-CERB of $7.56B includes: applications for which the benefit start date was prior to March 15, 2020; applications to renew claims that were active prior to this date; or applications for special benefits (such as Family Caregiver Benefits, Compassionate Care Benefits, Parental and Maternity benefits)

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone Number: 819-654-6402

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer, Chief Financial Officer Branch

Phone number: 613-295-2555

Approved by

Name: Mark Perlman

Title: Chief Financial Officer

Phone Number: 819-654-6634

Date: March 8, 2021

47. CRB Statistics Website

Context

What is the latest website information for CRB, CRCB, and CRSB (spend-to-date, number of unique applicants)?

Key facts

• The Canada Recovery Benefits statistics are updated by CRA on the following websites:
• CRB: /content/canadasite/en/revenue-agency/services/benefits/recovery-benefit/crb-statistics.html
• CRCB: /content/canadasite/en/revenue-agency/services/benefits/recovery-caregiving-benefit/crcb-statistics.html
• CRSB: /content/canadasite/en/revenue-agency/services/benefits/recovery-sickness-benefit/crsb-statistics.html
• On March 5, 2021, CFOB provided CRB, CRCB, and CRSB current spending data to Minister Qualtrough in preparation for her upcoming HUMA Committee appearance on Bill C-24. Due to timing issues, there are slight variances between the spending figures in the table below and the data provided to the Minister

Suggested Response

• The following data from the websites listed above, is as of February 28, 2021:

Table 5: The Canada Recovery Benefits statistics

Program	Spending to Date	Unique Applicants
CRB	$11.1B	1,760,580
CRCB	$1.58B	343,500
CRSB	$355.9M	412,160

Background

CRB Spending Information provided to Minister Qualtrough for HUMA on C-24:

• the data provided to the Minister was based upon actuals invoiced to ESDC by CRA as of February 28, 2021. The CRA invoice contains only payments made by CRA to Canadians up to February 23, 2021.
• the websites above are updated by CRA , and contain all payments made by CRA to Canadians up to February 28, 2021.
• in each case, the website figures are slightly higher than those provided to the Minister. The variances are shown in the following table:

Table 6: Variance between CRB spending information on CRA website vs. Minister’s data

Program	Website	CRA Invoices (Minister's data)	Variance
CRB	$11.1B	$10.96B	$0.12B
CRCB	$1.58B	$1.56B	$0.02B
CRSB	$355.9M	$352.5M	$3.4M

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone Number: 819-654-6402

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer, Chief Financial Officer Branch

Phone number: 613-295-2555

Approved by

Name: Mark Perlman

Title: Chief Financial Officer

Phone Number: 819-654-6634

Date: March 8, 2021

48. One time payment for persons with disabilities – estimate and amount spent to date

Context

How much has been spent to date on the One-Time Payment for Persons with Disabilities?

Key Facts

• As a result of COVID-19, Canadians living with disabilities are facing significant challenges, with some experiencing job insecurity. Others are seeing increased costs for personal support workers and other disability supports including; internet costs due to physical distancing requirements, and increased use of taxis and home delivery for food, medication and medical supplies
• The Government of Canada (GoC) is issuing a one-time non-taxable, non-reportable payment of up to $600 to approximately 1.7 million eligible Canadians to help pay for these expenses
• The initial round of payments was issued in 2020 to 2021, however the extension of the deadline to apply for the Disability Tax Credit (DTC) from September 25, 2020, to December 31, 2020 requires ESDC to process and issue another payment in Spring 2021 (fiscal year 2021 to 2022). This second payment covers those who submit their DTC application by December 31, 2020 and are determined to be eligible; or receive a decision about their eligibility for one of the eligible programs by the end of February 2021

Suggested Response

As of January 31, 2021, ESDC has spent $791.1M in One-time benefits payments to Persons with Disabilities, and $3.6M in Operating funding, for a total of $794.7M.

The statutory estimate for One-time payments to Persons with Disabilities is $849M in 2020 to 2021 Supplementary Estimates C and $11.3M in 2021 to 2022 Main Estimates, for a total of $860.3M.

Prepared by

Name: Jennifer Moorehead

Title: Senior Director, Planning and Expenditure Management, CFOB

Phone Number: 819-654-6402

Key contact

Name: Jason Won

Title: Deputy Chief Financial Officer, Chief Financial Officer Branch

Phone number: 613-295-2555

Approved by

Name: Mark Perlman

Title: Chief Financial Officer

Phone Number: 819-654-6634

Date: March 8, 2021

49. Qs and As – OAS and GIS related to Mains and Supps C

Question 1:

On statutory benefit decrease in OAS, is the lower monthly rate a function of inflation being lower than expected?

Response:

Yes. The actual rate of indexation from April 2020 to March 2021 for OAS benefits has been 0.3%.

Forecasted expenditures determined by the Department of Finance are based on forecasts from the Office of the Chief Actuary, the specific indexation rate was used by Finance for the Main Estimates was not shared with ESDC.

Question 2:

For the decrease in the repayment amount, is repayment where people pass away but we aren’t notified of their death in a timely way and/or people later reporting income that make them ineligible?

Response:

Expenditures for the OAS pension in public accounts are already net of overpayments and underpayments due to deaths and other factors.

The OAS pension card refers to repayments under the Recovery Tax, which are projected to be lower, in line with lower OAS pension expenditures overall.

The OAS Recovery Tax is an additional tax imposed on high-income pensioners. For each dollar of net income that exceeds $79,845, individuals must repay 15 cents of their OAS pension. The pension is fully recovered at an income of $129,075.

Question 3:

As per above, why is anticipated monthly GIS rate going up (when OAS is being adjusted in the other direction).

Response:

The income of GIS recipients was lower than forecasted. As a resulted in a increase to the average GIS benefits and an increase in the total GIS expenditures, despite the number of GIS recipients and the inflation rate being lower than forecasted.

Question 4:

What are “allowance payments”? Why is this monthly rate doing down like OAS when GIS is going up?

Response:

The Allowances are paid to low-income individuals aged 60 to 64 who are either the spouse/partner of GIS recipients, or who are widows/widowers. Estimated Allowances payments decreased by $5.8 million in Supplementary C estimates, as the estimated average monthly benefit was lower than expected due to the lower than anticipated rate of inflation.