EI Monitoring and Assessment Report 2012/13 Chapter 4: Program Administration

Notice: Refer to the Table of contents to navigate through the EI Monitoring and Assessment Report 2012/13.

This chapter discusses the delivery of Employment Insurance (EI) services to Canadians in 2012/13. Section I briefly examines the context in which EI benefits were delivered. Section II provides an overview of the delivery of EI benefits and related services by Service Canada. Section III explores the quality of EI services, including the accuracy of payments. Lastly, Section IV assesses the integrity of the delivery of the EI program.

I. CONTEXT

Since its creation in 2005, Service Canada has been the place where Canadians go to access programs, services, and benefits they need from the Government of Canada. One of the core benefits delivered by Service Canada is EI. Service Canada ensures that Canadians have access to EI benefits and services to which they are entitled to. Service Canada is committed to providing timely and accurate benefit payments and services, thereby ensuring quality and efficiency of business operations.

Service Canada's multi-channel service delivery model – online, by phone or in-person – is designed to meet the day-to-day demands of delivering EI benefits, while consistently and efficiently providing high–quality service to Canadians. While the model faced challenges in 2012/13 as the Government of Canada remained in a period of fiscal restraint, Service Canada continued to respond to higher–than–normal volumes of EI claims Footnote 1 . However, by developing workload management tools and strategies, the Department continues to find innovative methods to process EI benefits and effectively manage the program.

Service Canada remains committed to transforming and modernizing its business operations through automation and other process and service improvements. For example, the use of electronic reporting for EI is at 99.9% and has been at this level for the past five years. Service Canada will continue to enhance the electronic services available to individuals and businesses. Through increased automation, benefit modernization and improved service delivery, Service Canada strives to reduce costs and improve the value for money of delivering EI.

II. SERVICE DELIVERY

Service Canada supports EI clients through every stage of the service delivery process from providing benefit information, responding to enquiries and assisting employers, to processing claims and providing the means to appeal decisions. This section describes each aspect of the service delivery spectrum.

1. Information and Enquiries

Through a multi-channel service delivery model, Service Canada provides clients access to EI information on the Internet, by telephone or in person.

1.1 On the Internet (Click)

The Service Canada web site offers information on a wide variety of government programs and services that are designed to help users access the service that they need. In 2012/13, year over year growth slowed, with a 0.9% increase over the previous fiscal year, bringing the total annual visits to approximately 81 million Footnote 2 . On average, visitors viewed 4.1 pages on the Service Canada web site, with 1 in 8 visits (12.5%) associated with eight or more pages viewed. Three of the top four web pages accessed through the Service Canada home page were related to EI: "Complete your EI report" (23.3% of home page traffic), "Apply for EI Benefits" (6.2% of home page traffic) and the EI index page (5.6% of home page traffic). The top link was "Access My Service Canada Account," which received 35.3% of all home page traffic.

1.1.1 EI: Electronic Services

The EI section of My Service Canada Account (MSCA-EI) enables clients to view information on their current and previous EI claims online. In addition, MSCA-EI provides links to other electronic services, such as EI Application On-line (AppliWeb) and the Internet Reporting Service.

My Service Canada Account: EI

Through MSCA-EI, Canadians can perform the following actions on their account:

  • view their EI messages, payment information and claim information;
  • view and change their EI direct deposit details, mailing address and telephone number;
  • view and print their EI tax slips;
  • view their electronic Record of Employment (E-ROE); and
  • register in the EI program for access to special benefits for self-employed persons.

In 2012/13, logins to MSCA on the Service Canada web site decreased by 19% over the previous fiscal year, as Canadians logged onto MSCA 18.9 million times Footnote 3 . Much of the decrease in MSCA use was due to the large volumes experienced the previous year as part of the economic downturn. As well, there were more than 776,000 new registrations for MSCA, a decrease of 14% over the previous year, for a total estimated active user base of over 1.65 million. An estimated 88% of the activity on MSCA continued to be related to EI functions.

EI Application On-line (AppliWeb)

The EI Application On-line (AppliWeb) allows clients to file for EI benefits from home or anywhere else they have access to the Internet. AppliWeb is available seven days a week, 24 hours a day. Clients can also apply online for benefits by visiting their local Service Canada Centre, where they can access the EI Application On-line.

Internet Reporting Service

To receive EI benefits, most claimants must complete and submit biweekly reports to demonstrate their continuing entitlement. The Internet Reporting Service allows claimants to do so easily and securely over the Internet, 24 hours a day, seven days a week.

In addition, the Internet Reporting Service allows claimants to provide information regarding absences from Canada and/or training courses directly, resulting in fewer calls to EI call centres, enabling the auto-adjudication process and decreasing the workloads of processing centres.

The advantages of using the Internet Reporting Service to complete EI reports are as follows:

  • faster processing of EI payments;
  • availability of service to hearing-impaired claimants and claimants without access to a touch–tone telephone;
  • elimination of delays and mailing costs if the claimant subscribes to direct deposit; and
  • fast, convenient, simple and secure service.
1.1.2 Online Marketing

In 2012/13, Service Canada supported the promotion of EI initiatives including Connecting Canadians with Available Jobs, Working While on Claim, legislative changes to the Variable Best Weeks measures and changes to EI sickness benefits. To promote these initiatives, Service Canada developed web content, including videos and YouTube, printed and electronic brochures, messages on Service Canada's Digital Display Network, social media content, and electronic kits for stakeholders including emails, web buttons, articles, e-brochures and social media messages.

Service Canada continues to evaluate the following marketing activities:

  • Between April 1, 2012, and March 31, 2013, videos pertaining to EI generated 24,500 downloads a month from the Service Canada website. Web videos have proven to be a cost–effective way to help clients use self-serve options and complete transactions.
  • The Finding a Job landing page sustained its monthly page traffic (or page activity) in 2012 /13, with an average of 421,000 page views per month. The web promo boxes that feature timely and relevant information for clients were used 63,300 times by Canadians in the last quarter of 2012/13.

1.2 By Telephone (Call)

1.2.1 Specialized EI Call Centres

Service Canada's specialized EI call centre network continues to be the public's primary point of contact for client specific enquiries related to the EI program and for resolution of enquiries related to topics such as application process and status, benefit eligibility, and benefit delivery. In 2012/13, specialized call centres implemented a series of initiatives such as the development of a national agent assist line to support call centre agents in resolving complex inquiries and the revision of training products to streamline training for new agents.

When clients contact a call centre, they have access to EI information via an automated telephone information system, as well as through call centre agents. Over the course of a year, demand to the call centre network fluctuates based on a variety of factors such as bi-weekly reporting requirements, renewal of EI claims and processing speed of pay. While the call centre network makes every effort to meet these fluctuations, there are high call volume periods when the client demand exceeds the call handling capacity of the network, resulting in accessibility challenges and longer wait times to speak with an agent.

EI specialized agents handled 4.4 million client enquiries in 2012/13, which amounted to 925,000 fewer calls than in 2011/12. Agents answered 32% of these calls within 180 seconds, a 2.4 percentage point increase over the same time period but below the goal to answer 80% of calls within 180 seconds. During 2012/13, close to 12 million calls were blocked, which is 2.1 million less than in 2011/12. It is important to note that blocked calls are the total number of attempts to contact a call centre agent and do not represent the number of individual callers. In the majority of instances, if a caller is not successful on their first attempt, they will call back and reach an agent on a subsequent attempt. Further, 1.2 million calls were abandoned in 2012/13, 252,122 less than in 2011/12. An abandoned call occurs when a client hangs up while waiting to speak with an agent. Abandoned calls are partly a result of clients self-managing their time by either choosing to hang up and try calling back at a later time or choosing to hang up to use a self-serve option.

Overall, the decreased call-handling capacity and the service level results are largely attributed to call volumes relative to resource levels and increases in average handling time. While the department was not able to reach its targets, agents did resolve close to 85% of calls at the first point of contact and no further follow-up was required. More detailed information on call volume can be found in Annex 4.2.

Service Canada is strengthening its ability to effectively manage service demands, with continuous improvements to the way that it does business such as increased automation, improved online services, and a nationally-managed approach to distributing workloads. This also includes migrating clients to self-serve options for simple transactions that frees up call centre agents to resolve more complex cases. Further, current call centre metrics are being reviewed to ensure better alignment to client expectations and available resources.

1.2.2 1 800 O–Canada

The 1 800 O–Canada line is open Monday to Friday for general enquiries and is available to more than 60 countries. For callers in Canada, service is available from 8:00 a.m. to 8:00 p.m. in each time zone. For callers outside Canada, service is available from 8:00 a.m. to 8:00 p.m. Eastern time. Service is provided in English and French. In 2012/13, agents of 1 800 O–Canada answered 2.036 million calls, a 12% decrease since 2011/12. The total call volume included more than 597,000 general enquiries related to EI which represents a 0.9% decrease from 2011/12 Footnote 4 . The service delivery standard is to have bilingual agents answer calls within 18 seconds (three rings), 85% of the time. In 2012/13, 1 800 O–Canada met this target.

1.3 In Person (Visit)

Service Canada has approximately 600 in-person points of service (Service Canada Centres and Scheduled Outreach sites). In 2012/13, clients made over 4.2 million EI-related visits to an in-person point of service including 77,000 EI related visits to a scheduled outreach site across the country.

Service Canada employees provide general information to citizens on the application process and eligibility criteria, such as how to apply for the EI program, including required documents and proof of identity. They also help clients complete benefit applications, which entails identifying the client, validating supporting documents and verifying information for completeness. Service Canada aims to ensure that 90% of Canadians have access to a Service Canada point of service (Service Canada Centre or Scheduled Outreach site) within a 50-kilometre driving distance from where they live and in 2012/13 it met this service standard. The number or network of offices will be adjusted as necessitated by the demand for service.

Service Canada's in-person points of service fall under two categories.

Service Canada Centre (SCC)

A Service Canada Centre (SCC) is a full-time or part-time office, open up to five days a week, managed and occupied by Service Canada staff, offering general information and transactional services. SCCs may stand alone or be co-located with other organizations.

Scheduled Outreach Site

A scheduled outreach site is a point of service that is physically located outside an SCC but offers similar services. Service Canada employees (from a nearby SCC) travel to a pre-determined location regularly (for example, one day per week) to deliver services. Scheduled outreach is typically offered in rural or remote locations, offered at partner premises (such as band council, provincial or territorial offices), and managed through service contracts and/or memoranda of understanding.

1.3.1 Mobile Outreach Service

In addition to its network of points of service, Service Canada uses the Mobile Outreach Services (MOS) to connect with communities across the country. MOS complements the services already provided at SCCs and scheduled outreach sites. In addition, they increase awareness of Service Canada programs and service offerings, providing Canadians with information at locations such as job fairs, mass layoff sites, schools, community service organizations and retirement homes.

Between April 2012 and March 2013, through its MOS, Service Canada delivered the following:

  • 1,149 EI information sessions to employers, with 2481 companies and organizations participating;
  • 778 EI information sessions to workers facing layoffs, with a total of 16,932 participants; and
  • 310 EI information sessions to workers on Work Sharing, with a total of 7,226 participants Footnote 5 .

During the same period, citizen services specialists attended the following:

  • 15 fairs, exhibits or kiosks for employers, providing EI information to 315 participants; and
  • 15 fairs, exhibits or kiosks for workers, providing EI information to 734 participants.

Participation in fairs, exhibits and/or kiosks enables Citizen Service Specialists to reach the broadest range of target audiences in a cost-effective manner. Each region selects which fairs, exhibits and/or kiosks to participate in based on client requests and labour market conditions.

2. EI Services for Employers

Service Canada works closely with employers to ensure that the EI program is administered fairly and efficiently. As employers issue Records of Employment (ROEs), an essential component in establishing EI claims, Service Canada continues to seek ways to improve the services provided to employers.

2.1 Electronic Record of Employment

The ROE is the key document used to process EI benefits, and to determine EI entitlement, rate and claim duration. The electronic ROE (E-ROE) is a major factor in advancing the automation of the EI program.

Service Canada recognizes that the production and submission of ROEs is a challenge for employers, and one that has been raised in employer consultations. In response to the Government of Canada's Red Tape Reduction Commission, Service Canada continues to explore efficient and cost-effective methods to reduce the ROE administrative burden on employers. The E-ROE is a key tool to reduce this burden, as employers no longer need to order or store paper ROE forms, retain copies on file, or send copies to Service Canada or to their employees. E–ROEs have other advantages: employers can issue E-ROEs in alignment with pay cycles, amend them more easily than paper ROEs and submit hundreds of them in one transaction. In addition, E-ROE help minimize errors and improve service to claimants. Employers can still issue paper ROEs however.

In 2012/13, Service Canada implemented the following marketing approaches that encouraged 38,930 businesses to register and raise the proportion of E-ROEs to 70% of all ROEs.

  • In January 2013, an ROE Web insert was included with the approximately 1.1 million remittance slips that CRA distributed to all employers across Canada.
  • Service Canada implemented the first national ROE Web advertising campaign encouraging employers to register for a webinar on ROE Web. 182 payroll professionals registered for webinars between January and March 2013. Approximately 18% of webinar attendees subsequently signed-up for ROE Web. The campaign included the following components:
    • Print and web advertisements with professional associations including the Chartered Accountants of Canada, Certified General Accountants of Canada, Canadian Management Accountants, Canadian Institute of Chartered Accountants and Canadian Payroll Association.
    • For the first time, the Department used LinkedIn Advertising targeted to employer subscribers Footnote 6 . This included a web banner on the site as well as an email and polls. The LinkedIn campaign generated a total of 796 clicks and an email open rate of 27.8%. There were 506 responses to polls, averaging a 0.3% engagement rate.
    • Over a period of nine weeks the campaign Footnote 7 received 16,573 clicks on its Google AdWords with a click-through-rate (CTR) of 2.2%. Any CTR above 1% is usually considered a success.
  • Service Canada pursued an outreach campaign with trade and professional organizations.
  • Testimonial videos were created detailing four employers' positive experiences using ROE Web. Additional promotional materials were created to support the cyber-authentication renewal including emails, promotional boxes on the Service Canada website and outreach to stakeholders to ensure a smooth transition.

By the end of 2012/13, a total of 340,885 Footnote 8 employer businesses—including 39,000 Footnote 9 new ROE Web registrants—had registered for an E-ROE solution. These include ROE Web and ROE Secure Automated Transfer (SAT), a secure communication line designed to allow large payroll service providers or businesses to submit large volumes of ROEs simultaneously. Consequently, the majority of ROEs (69.7% or 6.2 million) were submitted to Service Canada electronically, a 5.8% increase over the number submitted the previous fiscal year Footnote 10 (see Chart 1).

Chart 1: ROEs Issued
Chart 1: description follows
  • Text description of Chart 1
    Chart 1: ROEs Issued
    Year E-ROEs Issued Total ROEs
    2008/09 3,951,815 9,542,365
    2009/10 4,474,093 8,768,043
    2010/11 5,150,249 8,589,149
    2011/12 5,904,097 8,970,647
    2012/13 6,247,235 8,966,935
    • Source: EI Administrative Data

2.2 Employer Contact Centre (ECC)

To enhance service to employers, the Employment Contact Centre (ECC) provides an accessible, national, single point of contact, delivering services such as ROE advice and guidance, ROE orders, and ROE Web technical support.

The ECC plays a key role in the promotion of E-ROEs and ROE Web. ROE Web marketing targeted at the employer community is implemented in collaboration with the ECC. Promotional materials and relevant campaign information are shared with the ECC to assist them in answering inquiries from employers interested in switching to E-ROEs and registering for ROE Web.

In 2012/13, ECCs answered 455,275 calls from employers, compared with 389,164 calls answered from the launch of the ECCs in June 2011 to March 31, 2012.

3. EI Services for Individuals

3.1 Claims Processing

In 2012/13, Service Canada received 2.76 million EI applications. Although this represented a 3.3% reduction from the previous fiscal year, the volume of claims remained high compared with the pre–recession volume of 2.6 million claims. Footnote 11

Speed of payment, a key performance indicator, is defined as the percentage of initial and renewal claims for which the Department sends a payment or non-payment notification to the claimant within 28 days of the date of filing. Several factors can affect speed of payment, including benefit applications that are missing information or that require clarification of information, and complex applications that require Service Canada to do fact-finding with employers and third parties to render a fair and equitable decision. Claim volumes can fluctuate dramatically from week to week. During peak intake weeks, a large percentage of claims are automated, which causes the performance indicator to rise sharply. Following a peak intake, the residual volume of complex claims requiring manual intervention may result in a dip in the speed of payment results. In 2012/13, with an ongoing high volume of claims and limited resources available for processing, the Department reached an average speed of payment of 74.5%, up 3.4 percentage points from the previous year but shy of its target of 80% Footnote 12 .

3.2 EI Special Benefits for Self-Employed People

Since January 2010, self-employed individuals who are Canadian citizens or permanent residents have been able to voluntarily enter into an agreement with the Canada Employment Insurance Commission to participate in the EI program for access to special benefits, including maternity, parental, sickness and compassionate care benefits. Since January 2011, self-employed contributors have been able to apply for EI special benefits. As of March 31, 2013, a total of 12,864 self-employed individuals were registered with the EI program. Claims from self-employed people are processed in one national specialized centre to promote service excellence.

4. Service Transformation

In 2012/13, Service Canada continued to invest in the design and use of technologies to support automated application processing and expanded Internet services, thus improving EI service delivery to Canadians. These enhancements changed the benefits processing network and expanded its ability to respond to workload volumes; and, also contributed to more accurate and consistent services for Canadians.

Since electronic EI applications were implemented in 2001/02, their proportion of all applications steadily increased, from 17% that year to 98.4% in 2012/13. Moreover, in the most recent fiscal year, 99.9% of eligible claimants filed their biweekly reports electronically, and 65.7% of all initial and renewal claims were partially or fully processed by automated means. While the annual amount of benefits paid out increased, and the number of EI applications increased slightly since 1999/2000, the cost per initial and renewal claim processed declined approximately 40%. The gradual increase in electronic services and in claims automation has reduced the amount of manual claims processing, resulting in fewer resources required to process the claims and a lower cost per claim. In 2012/13, employers submitted 69.7% of their ROEs via online services, and 90.9% of clients opted to receive their EI benefit payments via direct deposit Footnote 13 (see Chart 2).

Chart 2: Use of Electronic Services
Chart 2: description follows
  • Text description of Chart 2
    Chart 2: Use of Electronic Services
    2010/11 2011/12 2012/13
    EI Applications Received Electronically 97.2% 98.0% 98.4%
    Eligible Claimants Filing Electronic Reports 99.8% 99.9% 99.9%
    Claims Fully or Partially Automated 57.9% 59.7% 65.7%
    Records of Employment Submitted Electronically 60.0% 65.8% 69.7%
    Payment Received via Direct Deposit 83.2% 88.9% 90.3%
    • Source: EI Administrative Data

5. Appeals of EI Decisions

The EI appeals process provides claimants and employers with a means to challenge an administrative decision before an independent external authority. There are two levels of appeal under the Employment Insurance Act: boards of referees and umpires. Further recourse is available at the Federal Court of Appeal and, finally, at the Supreme Court of Canada.

A board of referees is an independent, impartial tribunal. Each three-member panel consists of a chairperson appointed by the Governor-in-Council, a member appointed by the Commissioner for Employers and a member appointed by the Commissioner for Workers. Approximately 900 part-time board members hear appeals in 83 board centres across Canada.

In 2012/13, boards of referees heard 20,099 appeals, 46.8% of which were scheduled on a hearing date that fell within 30 days of receipt of the appeal notice. Boards' decisions are normally issued within seven days of the hearing. Approximately 20% of the cases heard by boards resulted in a reversal of the Department's decisions.

Claimants, employers, and claimant and employer associations, as well as the Canadian Employment Insurance Commission, can appeal a board of referees decision to an umpire—an independent, administrative tribunal. Some 20 to 40 federal court judges or retired provincial superior court judges sit alone as umpires and hear cases across Canada.

In 2012/13, clients filed 1,309 appeals to umpires. The Department prepared and sent 95.6% of the client appeal dockets to the Office of the Umpire within 60 days of receiving the appeal notice. As this is a legislated requirement, the target is 100%. The main factor contributing to the slight variance stems from delays in the routing of paper documentation. In addition to client appeals, the Commission filed 312 appeals to umpires. Approximately 14% of the decisions rendered by umpires were favourable to the client.

Claimants, employers and the Commission can seek judicial review of an umpire's decision at the Federal Court of Appeal. In 2012/13, the Federal Court of Appeal rendered 40 decisions on cases related to EI benefits, 20% of which were favourable to the client. The Supreme Court of Canada issued 1 decision related to EI. It was not favourable to the client.

On April 1, 2013, the new Social Security Tribunal (SST) came into force as a single decision-making body replacing the four Employment and Social Development Canada tribunals for Employment Insurance (EI), Canada Pension Plan (CPP) and Old Age Security (OAS) appeals. The SST will continue to provide a fair, credible and accessible appeals process for Canadians. On April 1, 2013, a total of 1070 EI files related to umpire appeals were transferred to the new SST.

III. QUALITY

1. Payment and Processing Accuracy

1.1 EI Payment Accuracy Review

The EI Payment Accuracy Review (EI PAAR) measures the accuracy of EI benefit payments. Over the last 15 years, the payment accuracy rate has hovered around the established 95% Footnote 14 target (error rate of 5%). Footnote 15

The EI PAAR consists of a random sample of 500 EI claims per year that are reviewed by two separate reviewers. Results from both reviews are compared to ensure the accuracy and impartiality of results, and to ensure the consistency of results among reviewers. Each review provides detailed information on the root causes and dollar value of unidentified errors at the time of adjudication. EI PAAR yields statistically valid results 19 times out of 20 with a margin of error of ±5. Payments errors include overpayments and underpayments attributable to three sources: claimants, employers and Service Canada. In addition to estimating the accuracy of EI benefit payments, the EI PAAR also determines the estimated "most likely" value of incorrectly paid benefits (overpayments and underpayments) through statistical extrapolation. EI PAAR results are used to improve program delivery and sustain program integrity. The Office of the Auditor General (OAG) uses EI PAAR results in its annual financial audit of the EI Account, the results of which are reported each year as part of the Public Accounts of Canada.

The EI payment accuracy rate decreased from 95.2% (or 4.8% error rate) in 2011/12 to 94.1% (or 5.9% error rate) in 2012/13. The increase in the error rate to 5.9% is attributable to two factors: an increase in both the claimant and employer the error rates.

The Service Canada error rate had been steadily declining since reaching a high of 3.1% following the 1996 EI reforms. This positive trend continued and the error rate decreased by 0.9 percentage points from 1.9% in 2010/11 to 1% in 2011/12. The slight decrease in Service Canada's error rate, between 2011/12 and 2012/13, suggests a stable and effective processing environment (the error rate dropped by 0.1 percentage points, from 1.0% to 0.9%). In 2011/12, Service Canada proactively launched a Quality forum to assess areas for improvement and processing efficiencies (e.g. development and roll out of standardized templates to document decisions taken by processing agents). This forum heightened awareness of quality issues and contributed to the maintenance of the low Service Canada error rate in a rapidly evolving processing environment.

While Service Canada errors decreased from 2011/12 to 2012/13, other components of the error increased. Claimant errors increased by 0.3 percentage point compared with last year, from 2.0% to 2.3%. The EI PAAR data reveals that the two types of claimant error – (1) failure to report earnings, and (2) failure to report non-availability for work while in receipt of benefits – represent 73% and 27% of all claimant errors, respectively. Those proportions are generally consistent with last year's results of 80% and 20% respectively.

Employer errors increased by 0.9 percentage points, from 1.8% to 2.7% compared with last year's results. During the post-audit ROE validation with the employer, 813 ROEs were reviewed and validated (see Table 1). Of these ROEs, 99 were in error (or 12.2%). These incorrect ROEs impacted 18.8% of the PAAR files reviewed compared to 16.6% in 2011/12. Results also suggest that electronic ROEs are more accurate than paper ROEs. Out of the 500 files reviewed this year, 11 more files had ROEs in error compared to last year's sample (see Table 2).

Table 1: Accuracy of ROEs Validated as Part of the 2012/13 PAAR Review
# of ROEs validated in the PAAR review 813 ROEs were validated
  • % of Incorrect E-ROEs
  • 10% (52 out of 503)
  • % of Incorrect Paper ROEs
  • 15% (47 out of 310)




Table 2: Comparison of Number of PAAR Files Containing Incorrect ROEs
2012/13 2011/12 % Change
# and % of PAAR files which contain Incorrect ROEs 94 out of 500 files reviewed contained incorrect ROEs (18.8%) 83 out of 500 files reviewed contained incorrect ROEs (16.6%) 2.2%

Profile of Employers

A review of available data suggests that 55% of the employers who made ROE errors, were small business owners (rather than medium or large sized), which is consistent with last fiscal year's small employer profile at 58%.

Prevalence of ROE Errors by Block / Estimated Most Likely Value of Mispayments

In 2012/13, the three most frequent employer errors identified on ROEs accounted for 56.9% of all employer errors. They were in the following ROE blocks:

  • Block 15B – Number of insurable earnings (30 errors – 25.9%; estimated most likely value of $75M);
  • Block 17A – Monies paid on separation (20 errors – 17.2%; estimated most likely value of $115.4M); and,
  • Block 12 – Pay Period Ending Date (16 errors – 13.8%; estimated most likely value of $99.1K).

Based on the estimated most likely value, the three most frequent employer errors, which represent 73.5% of the most likely value of all errors found on ROEs, are:

  • Block 15A – Number of insurable hours (estimated most likely value of $121.7M);
  • Block 17A – Monies paid on separation (estimated most likely value of $115.40M); and,
  • Block 15B – Number of insurable earnings (estimated most likely value of $75M).

Service Canada continues to monitor and analyze employer errors and is working to raise awareness amongst the employer community regarding the nature and value of these errors.

Overall Summary of EI Payment Accuracy Results

Table 3 below summarizes the estimated value of errors identified in the EI PAAR review by error rate and source of error.

Table 3: EI Payment Accuracy Review Estimated Most Likely Value of Errors and Estimated Error Rate, by Source
2012/13 2011/12
Total EI Benefit Payout $15.6 billion $16.1 billion
EI Payment Accuracy Rate 94.1%** 95.2%**
Estimated Total Value of Mispayments*/Estimated Error Rate* Most Likely Value Error Rate Most Likely Value Error Rate
$923.8 million 5.9%** $772.3 million 4.8%**
Error Rate broken down by source
Employer $425.0 million 2.7% $286.0 million 1.8%
Claimant $357.5 million 2.9% $325.3 million 2.0%
Service Canada $141.3 million 0.9% $161.1 million 1.0%
  • * Mispayments are the sum of overpayments plus underpayments.
  • ** Results have been rounded to the first decimal.

1.2 EI Processing Accuracy Review

The EI Processing Accuracy Review (EI PRAR) comprises a review of a random sample of approximately 18,500 initial, renewed and revised decisions per year. It verifies that applications for benefits are adjudicated and calculated in accordance with national operational policies and procedures and measures the estimated rate of conformity with them. In 2000/01, the Department first implemented Quality Monitoring now known as EI PRAR to measure the percentage of initial claims "in order" (a claim is considered to be "in order" when all criteria relevant to the review of the claim have been met). In 2005/06, Service Canada set a national EI PRAR target of 80% Footnote 16 . Officials continue to examine whether the EI PRAR target should be raised.

In 2012/13, the processing accuracy rate increased by 1.0 percentage point to 86.9% from 85.9% in 2011/12 Footnote 17 . Each year, Service Canada develops a national quality action plan to ensure continued processing improvements. The plan focuses on the three errors that occurred most frequently across the country, as well as one or two regionally identified areas for improvement.

2. Information and Transaction Accuracy

The National Quality Assurance Program (NQAP) in EI call centres aims to ensure quality and consistency of service to clients, to identify employee training needs and opportunities for improvement, and to provide ongoing feedback and support to employees. A total of 7,233 calls were monitored in 2012/13, and results for the year were 85% against a target of 80%.

Additionally, since EI call centre agents complete a number of processing activities over the phone with clients, agents are also reviewed as part of the EI Processing Accuracy Review. In 2012/13, the processing accuracy for EI call centre agents was 91%, surpassing the target of 80%.

3. Insurability of Employment

The Minister of National Revenue is responsible for the administration of Part IV (Insurable Earnings and Collection of Premiums) of the Employment Insurance Act. This responsibility includes the issuance of rulings regarding the insurability of employment, the number of insurable hours and the amount of insurable earnings.

Service Canada requests rulings from CRA when a claim for EI benefits has been filed and the insurability of employment, the amount of insurable earnings or the number of insurable hours is in question. It does so to ensure that the claimant receives the amount of EI benefits to which he or she is entitled. CRA aims to issue a ruling within 15 calendar days when payment of a claim is pending and within 31 calendar days when payment is not pending. In 2012/13, Service Canada requested 10,601 rulings from CRA, a 3% decrease from 2011/12.

IV. INTEGRITY

Service Canada continues to place significant emphasis on the importance of protecting the information entrusted to it by Canadians.

Given the large scale of the EI program, Canadians expect sound stewardship and accountability for the program's integrity. The Department maintains a balance among detection, deterrence and prevention activities and has management frameworks, processes and risk-based controls in place to strengthen the integrity of its programs and ensure operational and service compliance . The Integrity program focuses on detection activities using a variety of programs and systems, such as Computer Post Audit, the Report on Hirings program and Automated Earnings Reporting Systems. In addition, Service Canada carries out information and prevention activities, such as Claimant Information Sessions. These activities inform claimants, employers and the general public about EI requirements and the consequences of abusing the EI system, such as penalties or prosecutions.

In 2012/13, Service Canada held 7,806 Claimant Information Sessions, to which 132,394 claimants were directed to attend. Service Canada also conducted 337,541 investigations into suspected client error and fraud. Footnote 18 Combined, these activities resulted in a total of $438.5 million in savings for the EI Operating Account (see Chart 3). These savings consist of recovered overpayments and associated penalties, as well as the discontinuation of future ineligible payments, benefitting both employee and employer premium payers alike through the reduction in the total cost of the EI program.

Chart 3 EI Total Savings
Chart 3: description follows
  • Show Data Table
    Chart 3: EI Total Savings*
    Region ($)
    2008/09 (Nat $410.9M) 2009/10 (Nat $439.2M) 2010/11 (Nat $453.5M) 2011/12 (Nat $385.6M) 2012/13 (Nat $438.5M)
    ATL 60,8 64,4 58,6 49,5 52,9
    QC 125,6 124,4 114,6 98,3 121,6
    ON 95,5 113,1 125,7 107,8 120,4
    W-T 116,5 112,5 130,2 99,1 115,0
    NIS** 12,6 24,9 24,4 30,9 28,6
  • Source: EI administrative data.
  • *The numbers have been rounded to the nearest hundred thousand. The national amounts (Nat) have been calculated using the raw data.
  • ** NIS: Cases dealing with unreported absences from Canada while on EI, as well as the Report on Hirings program, are centrally managed through Integrity's National Investigative Services (NIS) centre in Miramichi, N.B.

1. Integrity Quality Initiatives

To support the achievement of its mandate to prevent, detect and deter fraud and abuse of the EI program, a national quality team helps ensure consistency in integrity investigation activities. Its work includes ensuring that every region has quality advisors and coordinators, incorporates quality management plans in business planning, and conducts consistent monitoring based on the Employment Insurance Act and national integrity procedures. Regular monitoring visits to regional Integrity units are made to evaluate integrity program activity.

Service Canada has taken significant steps to implement a quality management and reporting system for the Social Insurance Number (SIN) program's database, the Social Insurance Register (SIR). Since 2007, it has measured the accuracy rate of all data on the SIR annually. In the 2012 calendar year, the key performance indicators for the SIR were as follows:

  • the accuracy rate for birth and deceased data was 98%; and
  • the accuracy rate for legitimate SINs in the SIR was greater than 99.9%.

In addition, since 2008, Service Canada has implemented a quality management strategy for new updates to the SIR—specifically, those related to clients applying for a SIN or updating their SIN. In 2012/13, of the updates reviewed, 99.97% were free of critical errors (i.e., no multiple SINs were issued and no date of birth errors were made). Overall, the accuracy of the SIR is fundamental to all SIN-enabled programs, including the EI program, as accurately identifying clients is crucial to ensuring benefits are paid to the correct and eligible individuals.

2. Risk Management

Enhancing service integrity is fundamental to delivering citizen-centred service and meeting the expectations of Canadian citizens, improving public trust and confidence in government, and achieving savings through the reduction of incorrect payments and the identification of overpayments.

In 2012/13, Service Canada continued to emphasize the use of risk management strategies in its approach to investigations, to improve the overall integrity of the program and to ensure that correct payments were made to eligible claimants. As part of this activity, the Department's integrity services has a robust risk analysis function to quantitatively and qualitatively assess program integrity risks and to develop appropriate mitigation strategies to address any identified vulnerabilities.

In 2012/13, EI integrity risk management activities focused significantly on an EI Stewardship Review. This Stewardship Review was undertaken to identify the nature of prominent risks and measure the extent of incorrect payments in the EI Program due to external error, abuse and fraud. The results of this review will provide the Department with a better understanding of the nature of incorrect payments and help support the identification of new measures to further enhance the integrity of the EI program.

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