Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities

Cúram Software and the processing of Old Age Security

Date: March 26, 2026

Location: In person

Present: The Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Arianne Reza, Deputy Minister Public Services and Procurement Canada

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General items

1. Opening statement

The Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, Quebec Lieutenant

Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities – Cúram Software and the processing of Old Age Security

March 26, 2026
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561 words

Good afternoon, Mr. Chair.
Before we begin, I would like to acknowledge that we are gathered on the traditional, unceded territory of the Algonquin Anishinaabe people.

I am pleased to appear before the Committee today to discuss how procurements led by Public Services and Procurement Canada is supporting ESDC in the delivery of the Government’s Benefits Delivery Modernization programme.

With me today from PSPC are:

As the government’s central purchaser, PSPC is committed to ensuring all procurements are conducted in a fair and transparent manner, while delivering the requirements defined by client departments.

PSPC is supporting ESDC by overseeing the procurement process for the BDM programme. This includes conducting competitive procurements and managing contracts.

The Employment Insurance, Canada Pension Plan and Old Age Security programs—on which millions of Canadians rely—have long been supported by legacy technology, systems, and processes.

This is the result of incremental changes, extensions and layers being added to systems, some of which were designed in the 1960s and 1970s.

PSPC, jointly with Treasury Board of Canada Secretariat, and Shared Services Canada, is supporting ESDC in delivering the BDM programme in a way that protects the continuity of the Old Age Security, Canada Pension Plan and Employment Insurance benefits, and enables the transition of IT systems and business processes to deliver accurate and timely benefits.

Through a staged approach, ESDC and the BDM programme are modernizing the way the federal government serves Canadians by replacing aging and complex legacy systems with a single modern and secure software platform.

By 2031, the new solution will provide an integrated and secure cloud-based platform that is agile, adaptable and responsive to future technological innovations and policy changes.

Mr. Chair, I note that the role of PSPC is limited to procurement and contract management, which includes rigorous oversight mechanisms. Program planning, system operation, requirement definition and benefit payments are managed by ESDC.

In 2021, following an open competitive process, PSPC, on behalf of ESDC, awarded a competitive contract to procure a core technology platform.

The winning bidder was IBM, which proposed the Cúram software to deliver Old Age Security, Employment Insurance, and Canada Pension Plan benefits. The current contract value is $120.5 million-dollars, excluding taxes.

IBM provides Canada with software licenses, maintenance, and support for the Cúram software, as well as professional services related to software architecture, implementation support, optimal use of the software, and training on the software.

In spring 2021, through a competitive procurement process, PSPC awarded Master Systems Integrator contracts to 4 qualified suppliers to provide complex technology integration services.

In Spring 2022, Old Age Security implementation work was competed between these 4 suppliers, and Old Age Security became the first benefit delivered on the Cúram-based software in 2025.

It’s important to note that Cúram was designed specifically for government-operated social programs. It is currently being used to deliver of more than 900 government social programs for more than 60 million people in nearly 20 countries.

Closing

Mr. Chair, PSPC plays an important role in supporting the BDM programme through procurement.

We will continue to support ESDC and other partners to apply lessons learned and ensure that the government delivers accurate and timely benefits for all Canadians.

On that note, I’m happy to take any questions you may have for me.

Thank you.

Delivery Modernization programme

2. Old Age Security payment issues

Issue

Media is reporting on delays and errors in payments to seniors in the delivery of Canada’s Old Age Security pension benefits.

Key facts

Key messages

If pressed on comparisons to SAAQclic:

Background

Benefits Delivery Modernization is a long-term federal initiative to replace obsolescent systems used to deliver payments to Canadians for Old Age Security (OAS), Employment Insurance and the Canada Pension Plan. Public Services and Procurement Canada (PSPC) supports the program by conducting competitive procurements and managing contracts on behalf of Economic and Social Development Canada (ESDC). Individual benefits are onboarded in stages to manage risk and ensure service continuity. PSPC continues to work with ESDC to apply lessons learned as additional benefits are modernized.

Through a competitive procurement process, PSPC awarded 4 Master Systems Integrator Contracts to 4 qualified Systems Integrators in Spring 2021. OAS implementation work was competed between these suppliers.

In 2021, PSPC awarded a competitive contract to procure Cúram software to IBM Canada, currently valued at $120.5 million, excluding taxes.

Related documents

3. Office of the Privacy Commissioner’s report on the investigation related to the development of ArriveCAN

Issue

On March 12, 2026, the Office of the Privacy Commissioner of Canada released its report on the investigation into the contracting practices of the Canada Border Services Agency related to the development of ArriveCAN.

Note: All questions relating to the definition of security requirements should be answered by the Minister of Public Safety and referred to the Canada Border Services Agency.

Key facts

Key messages

If pressed on the one vendor that did not have a Designated Organization Screening with approved Document Safeguarding Capability at contract award:

Background

When Public Services and Procurement Canada (PSPC) is the contracting authority for a Government of Canada contract with security requirements, PSPC administers contract security throughout the contract lifecycle. PSPC conducts organizational and personnel screening for contractors and private-sector personnel requiring access to protected or classified information, assets, or sites. Client departments remain responsible for defining contract security requirements and safeguarding their information, assets, and facilities.

Designated Organization Screening and Facility Security Clearance are both organizational screenings. Designated Organization Screening covers Protected information, while Facility Security Clearance extends access to Classified information.

Following its investigation, the Office of the Privacy Commissioner found no contravention of sections 7 or 8 of the Privacy Act and deemed the complaint not well‑founded.

4. Contracts related to ArriveCAN

Issue

The Canada Border Services Agency was responsible for developing and managing the ArriveCAN tool based on the Public Health Agency’s health requirements enforced by the Quarantine Act.

Key facts

Key messages

If pressed on subcontracting:

If pressed on why Public Services and Procurement Canada will not provide the names of subcontractors:

If pressed on who made the decision to contract with GC Strategies:

If pressed on GC Strategies’ ability to continue to contract with federal government:

Background

Public Services and Procurement Canada provided procurement support to the Canada Border Services Agency and the Public Health Agency of Canada in the delivery of the ArriveCAN program. Specifically, Public Services and Procurement Canada awarded 31 of the 46 contracts used in the development, launch, and maintenance of the ArriveCAN app.

In pressing emergencies where there is significant human and/or financial risks, Public Services and Procurement Canada may enter into non-competitive contracts under exceptional emergency contracting authorities provided for in the Government Contract Regulations and in accordance with the Treasury Board Directive. Public Services and Procurement Canada leveraged those authorities for 4 of the ArriveCAN contracts.

It is important to understand that contract management is a shared responsibility between Public Services and Procurement Canada and its clients. While Public Services and Procurement Canada negotiates and awards contracts, departments are responsible for monitoring and certifying the delivery of goods and services under a contract. In the case of professional services contracts, departments also determine what priorities contractors will work on within the allowable scope of each contract.

In June 2025, new authorities under the Ineligibility and Suspension Policy enabled the Registrar of Ineligibility and Suspension to declare GC Strategies ineligible from competing for or being awarded federal contracts or real property agreements for a period of 7 years. The ineligibility period for the company reflects the severity and duration of the misconduct, as well as the significant impact on the federal procurement system.

5. Office of the Auditor General’s Report on Modernizing the Pay System

Issue

The objective of the Office of the Auditor General’s audit was to examine if the Treasury Board of Canada Secretariat and Public Services and Procurement Canada were managing the Human Resources and Pay Transformation Project so that they could ensure that federal public servant's pay transactions would be accurate and on time, and the project would provide value for money, once implemented. There were 3 recommendations implicating Public Services and Procurement Canada.

Key facts

Key messages

Background

The Office of the Auditor General of Canada has tabled a report examining the government’s efforts to modernize the federal pay system following the challenges associated with the Phoenix pay system.

The Auditor General found that progress was slow regarding simplification of pay rules, that Public Services and Procurement Canada (PSPC) made limited progress in eliminating the backlog of pay transactions, and that PSPC had gaps in its preliminary cost estimates. The Auditor General concluded that the Treasury Board Secretariat (TBS) and PSPC are managing the HR-to-Pay Transformation in a way that ensures the future system will deliver accurate pay on time and demonstrate value for money.

The Auditor General recommends that TBS and PSPC fix gaps in service standards, and that PSPC assess and mitigate any adverse effects of its backlog reduction approach, especially for departments that will onboard Dayforce later in the project, while considering factors that could increase pay transactions, such as workforce reductions. The Auditor General further recommends that PSPC’s cost estimates include costs to transition departments and agencies to the new system, and that PSPC determine if costs to process pay transactions will decrease with Dayforce, compared to the current state.

Lessons learned from previous pay initiatives

We are taking a cautious and deliberate approach to reduce operational risks, avoid mistakes of the past, and apply lessons from Goss Gilroy’s 2018 independent review, such as:

6. Update on the move to Dayforce

Issue

Progress continues to be made on the transition from the Phoenix system to the Dayforce human resources and pay solution.

Notes:

Key facts

Key messages

If pressed on the effects of Workforce Adjustment and the backlog:

If pressed on the 10-year Phoenix report by the Professional Institute of the Public Service of Canada :

Background

In 2025 to 2026 and 2026 to 2027, Public Services and Procurement Canada (PSPC), in collaboration with its partners, will focus on finalizing the building and testing of the Dayforce solution. In parallel, essential change management activities will be undertaken to support departmental, operational, and enterprise readiness for a potential deployment.

On August 21, 2025, the acquisition of Dayforce by Thoma Bravo, a private equity firm specializing in software investments, based in the United States, was announced. The contract between the Government of Canada and Dayforce, which was amended on March 31, 2025, remains valid. The solution is hosted in Canada and all the resources who work on the contract directly require Canadian clearances or equivalent. The contract also requires that all data be stored in Canada. Dayforce reaffirmed its commitments to the Government of Canada and emphasized that the acquisition would not affect the existing partnership, service delivery, or contractual obligations.

Since the launch of Phoenix, PSPC has implemented a series of measures focused on stabilizing the administration of pay. We have also focused on other operational priorities in pay administration including parental leave, disability management, terminations, and overpayment recovery. We have improved service standard compliance while managing sustained increases of transactions submitted to the Pay Centre by departments and agencies. PSPC is looking at Artificial Intelligence (AI) to further automate case processing. AI will play a key role in managing transactions at the Pay Centre, and it will help to process transactions faster, with greater efficiency and accuracy. We are also taking a proactive approach to transparency by publicly sharing updates on our AI activities and achievements.

In addition, the Automated Benefit Enrollment initiative is a multi-phase project designed to streamline and automate benefits enrollment. By reducing manual processes, this initiative allows compensation advisors to focus on complex transactions across the Government of Canada.

Dayforce

Following extensive research, rigorous testing and a comprehensive feasibility assessment, the Government of Canada confirmed that Dayforce will replace Phoenix and more than 30 existing HR systems. This new approach is grounded in lessons learned, including strengthened governance, robust engagement with departments and bargaining agents, phased implementation, and full transparency.

As part of the change management approach, training will be a key factor for success and efforts to begin supporting organizations in their readiness to onboard have already begun. These efforts aim to ensure a smooth transition and reflect the government’s commitment to transparency, efficiency, and paying public servants on time and accurately.

Overpayments

Since October 2021, we have increased our efforts to seek repayment from employees and former employees who were overpaid. In the 2025 calendar year, pay accuracy now sits around 98.4%, and most remaining errors are caused by human resources (HR) actions that are delayed or entered incorrectly. The most common cause of an overpayment is a late entry or processing of a transaction that affects an employee's pay, which accounts for about 70% of all overpayments. Strong HR management and accountability are essential. Departments and managers must enter information on time and accurately. When they do not, it can lead to incorrect pay, including overpayments. The Pay Centre provides regular updates where the importance of timely and accurate data entry by HR within our client departments is reiterated.

Additionally, as part of the Unified Actions for Pay (UAP) initiative, Treasury Board of Canada Secretariat and PSPC introduced new measures to strengthen HR and pay practices and improve the reliability and consistency of HR data. These measures support better pay outcomes for employees, increase system automation and enhance data quality within existing procedures and standards.

Status of the backlog

As of February 25, 2026, the overall inventory of transactions waiting to be processed at the Pay Centre has decreased by 63% since the peak of January 2018, representing a reduction of 417,000 transactions. Additionally, there are 98,000 outstanding transactions over one year old, a decrease of 7,000 from the previous month.

Between April 2025 and June 2026, PSPC estimates that it will process a total of 122,500 backlog and priority cases as part of its commitment to the backlog and in preparation for the initial onboarding to Dayforce.

7. General information on Information Technology Software Procurement

Issue

Public Services and Procurement Canada, as a common service provider, is responsible for the procurement of application software to help client departments conduct day to day business operations.

Key facts

Key messages

Background

Public Services and Procurement Canada (PSPC) plays a central role in federal operations as the Government of Canada’s central purchasing agent. PSPC is responsible for the procurement of requirements related to software applications, technology-enabled major projects, digital transformation and innovation.

PSPC supports a broad spectrum of software procurements—from low‑complexity requirements and renewals of maintenance and support services for existing licences to highly complex digital‑transformation initiatives, including major projects such as Employment and Social Development Canada’s Benefit Delivery Modernization, Immigration, Refugees and Citizenship Canada’s Digital Platform Modernization, and Canada Border Services Agency’s Assessment and Revenue Management system.

Application software refers to computer programs designed to help users perform specific tasks or functions. Unlike system software (like operating systems), which runs the computer itself, application software is what people actually use to get work done.

Shared Services Canada is responsible for software procurement related to Data centers, networks, email, cloud services and workplace technologies.

PSPC administers several software procurement vehicle, including the Artificial Intelligence Source List, the Software Licensing Supply Arrangement for on-premise software and the Software-as-a-Service Supply Arrangement for cloud-based solutions.

8. Committee member interventions regarding Old Age Security and Cúram

Andréanne Larouche

Political Affiliation: Bloc Québécois

Constituency: Shefford, Quebec

At the Standing Committee on Human Resources, Skills and Social Development’s meetings in February 2026, MP Larouche discussed the implementation of the Cúram software, stating that processing errors have impacted 85,000 seniors. She noted reports of individuals experiencing benefit delays of up to 9 months and characterized the situation as a risk to their financial stability. MP Larouche highlighted a 277% increase in project costs and cited low performance ratings from public servants as evidence of systemic issues. To address these concerns, she moved motions on February 5 and February 12, 2026, requesting that Minister Lightbound and Minister Hajdu testify before the committee and the latter provide a regional breakdown of affected cases. Her aim is to ensure these administrative challenges are resolved before the software is expanded to Employment Insurance and the Canada Pension Plan.

Annie Koutrakis

Political Affiliation: Liberal

Constituency: Vimy, Quebec

At the Standing Committee on Human Resources, Skills and Social Development’s October 28, 2025, meeting, MP Koutrakis questioned the Secretary of State for Seniors on the operational priorities and goals of the Employment and Social Development Canada. She acknowledged that while the Old Age Security (OAS) system is being modernized with a self-serve portal, some seniors have experienced delays in accessing their benefits and services. MP Koutrakis raised inquiries into what is being done to improve service delivery and reduce wait times for seniors applying for OAS and Guaranteed Income Supplement despite the modernization of the system. She also sought to understand how the mandate to provide a comfortable retirement for those who worked their whole lives aligns with the broader goals of the department.

Natilien Joseph

Political Affiliation: Liberal

Constituency: Longueuil—Saint-Hubert, Quebec

At the Standing Committee on Human Resources, Skills and Social Development’s February 5, 2026 meeting, MP Joseph addressed reported delays and service problems regarding OAS benefits. He noted that Quebec media had recently highlighted issues for seniors receiving these payments and requested a specification of the measures being implemented to ensure beneficiaries in his riding and across Canada receive their benefits reliably and on time. MP Joseph sought to understand how the government is addressing these service challenges to maintain the reliability of the system for seniors.

Laila Goodridge

Political Affiliation: Conservative

Constituency: Fort McMurray—Cold Lake, Alberta

At the Standing Committee on Human Resources, Skills and Social Development’s February 5, 2026, meeting, MP Goodridge discussed administrative delays within the OAS, drawing comparisons to previous federal payroll transitions (i.e. Phoenix). She cited a constituent's 150-day wait for benefits and noted the difficulties seniors face when attempting to resolve these issues through standard contact channels. MP Goodridge expressed concern that technical errors may be causing significant stress for beneficiaries and suggested that a lack of resolution has led many to seek assistance from the media. She emphasized the need to ensure that system issues are addressed before the software is implemented for other federal programs.

Rosemarie Falk (Vice-Chair)

Political Affiliation: Conservative

Constituency: Battlefords—Lloydminster—Meadow Lake, Saskatchewan

During the Standing Committee on Human Resources, Skills and Social Development’s meetings in February 2024, MP Falk criticized federal policies regarding OAS, arguing that the 2022 increase restricted to seniors aged 75 and older created "2 classes of seniors." She expressed support for Bill C-319, which seeks to extend the 10% pension increase to seniors aged 65 to 74, while questioning the government's willingness to provide the necessary royal recommendation for the bill to proceed. MP Falk also highlighted that financial pressures and the rising cost of living are reportedly forcing some seniors to remain in or return to the workforce, and she requested that the committee be provided with data on the number of retirees returning to work to ensure ministerial accountability.

Other members of the committee have not made significant interventions at committee related to OAS and Cúram.

9. Shared Services Canada’s role in the Benefits Delivery Modernization programme

Issue

Shared Services Canada supports Employment and Social Development Canada’s in the delivery of the Benefits Delivery Modernization programme.

Key facts

Key messages

If pressed on payment delays due to the Cúram platform:

Background

The Treasury Board of Canada Secretariat (TBS), Shared Services Canada (SSC), and Public Services and Procurement Canada (PSPC) support Employment and Social Development Canada (ESDC)’s Benefits Delivery Modernization (BDM) programme.

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2026-07-07