Organizational Expenditure Overview - 2014-15 Departmental Performance Report - Treasury Board of Canada Secretariat

Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Minister: The Honourable Scott Brison, President of the Treasury Board

Institutional Head: Yaprak Baltacioglu, Secretary of the Treasury Board

Ministerial Portfolio: The Treasury Board of Canada Secretariat and the Canada School of Public Service. Operating at arm's length and reporting to Parliament through the President of the Treasury Board are the Public Sector Pension Investment Board, the Office of the Commissioner of Lobbying of Canada and the Office of the Public Sector Integrity Commissioner of Canada.

Enabling Instruments: Financial Administration Act, R.S.C., 1985, c. F-11

Year of Commencement: 1966

Organizational Context

Raison d'être

The Treasury Board of Canada Secretariat (Secretariat) is the administrative arm of the Treasury Board, and the President of the Treasury Board is the Minister responsible for the Secretariat. This organization supports the Treasury Board by making recommendations and providing advice on program spending, regulations and management policies and directives, while respecting the primary responsibility of deputy heads in managing their organizations, and their roles as accounting officers before Parliament. In this way, the Secretariat strengthens the way government is managed and helps to ensure value for money in government spending and results for Canadians.

Responsibilities

The Secretariat supports the Treasury Board in each of its roles (see text box “Treasury Board Roles”). Within the Secretariat, the Comptroller General of Canada provides government-wide leadership, direction, oversight and capacity building for financial management, internal audit and the management of assets and acquired services. The Chief Human Resources Officer provides government-wide leadership on people management through policies, programs and strategic engagements and by centrally managing labour relations, compensation, pensions and benefits and contributing to the management of executives. The Chief Information Officer provides government-wide leadership, direction, oversight and capacity building for information management, information technology, government security (including identity management) and access to information, privacy, and internal and external service delivery.

The Treasury Board Portfolio consists of the Secretariat and the Canada School of Public Service. The Public Sector Pension Investment Board, the Office of the Commissioner of Lobbying of Canada and the Office of the Public Sector Integrity Commissioner of Canada are arm’s-length organizations that report to Parliament through the President of the Treasury Board.

When working with federal departments, agencies and Crown corporations, the Secretariat plays three central agency roles:

  • A leadership role in driving and modelling excellence in public sector management and in identifying and launching government-wide horizontal initiatives that target administrative efficiencies;
  • A challenge and oversight role that includes reporting on the government’s management and budgetary performance and developing government-wide management policies and standards; and
  • A community enabling role to help organizations improve management performance.

Strategic Outcome and Program Alignment ArchitectureFootnote 1

In 2014–, the Secretariat’s Program Alignment Architecture included six programs that contributed to the achievement of its Strategic Outcome, “Government is well managed and accountable, and resources are allocated to achieve results.” Detailed information about the Secretariat’s Strategic Outcome and about each program can be found in Section II: Analysis of Programs by Strategic Outcome.

2014– Program Alignment Architecture

Strategic Outcome: Government is well managed and accountable, and resources are allocated to achieve results.

  • 1.1 Program: Management Frameworks
    • 1.1.1 Sub-Program: Strategic Management and Governance
    • 1.1.2 Sub-Program: Sound Management and Decision Making
    • 1.1.3 Sub-Program: Service Modernization
    • 1.1.4 Sub-Program: Information Management, Access and Privacy
    • 1.1.5 Sub-Program: Management of Information Technology
    • 1.1.6 Sub-Program: Government Security
    • 1.1.7 Sub-Program: Communications and Corporate Identity
    • 1.1.8 Sub-Program: Regulatory Management
  • 1.2 Program: People Management
    • 1.2.1 Sub-Program: Direction Setting
    • 1.2.2 Sub-Program: Enabling Infrastructure
    • 1.2.3 Sub-Program: Comprehensive Management of Compensation
  • 1.3 Program: Expenditure Management
    • 1.3.1 Sub-Program: Results-Based Expenditure Management
    • 1.3.2 Sub-Program: Expenditure Management Advice and Reporting
    • 1.3.3 Sub-Program: Compensation Expenditure Management
  • 1.4 Program: Financial Management
    • 1.4.1 Sub-Program: Financial Management, Oversight and Reporting
    • 1.4.2 Sub-Program: Internal Audit
    • 1.4.3 Sub-Program: Assets and Acquired Services
  • 1.5 Program: Government-Wide Funds and Public Service Employer Payments
  • Internal Services

Organizational Priorities

In its 2014– Report on Plans and Priorities, the Secretariat established five organizational priorities that contribute to its Strategic Outcome:

  • Priority 1: Strengthen government financial and expenditure management to support value for money, ongoing cost-containment and increased operational efficiency;
  • Priority 2: Modernize people management to support a productive, high-performing, and affordable public service;
  • Priority 3: Provide leadership in information management (IM) and strategic use of information technology (IT) to enable more efficient and effective enterprise delivery of government programs and services;
  • Priority 4: Further reduce red tape for business, and streamline internal government rules to increase efficiency and reduce costs; and
  • Priority 5: Continue to implement the Secretariat’s workplace renewal initiative to modernize its office space, technology and internal operations and improve efficiency.

The results achieved under each priority are summarized below. Further information on results can be found in the “Performance Analysis and Lessons Learned” section of each of the Secretariat’s programs in Section II: Analysis of Programs by Strategic Outcome.

Priority 1: Strengthen government financial and expenditure management to support value for money, ongoing cost-containment and increased operational efficiency.
Typetable 1 note 1 Programs
Table 1 Note 1

Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the RPP or DPR.

Return to table 1 note 1 referrer

Ongoing

Expenditure Management
Financial Management

Summary of Progress

In 2014–, the Secretariat:

  • Engaged the Costing Centre of Expertise to review more than 90 Cabinet documents, with combined cost estimates of over $100 billion.
  • Implemented the Guideline on Chief Financial Officer Attestation for Cabinet Submissions, to provide additional clarity and to support decision making by ensuring a consistent approach in departments' costing of funding proposals.
  • Enhanced the TBS InfoBase, a searchable online database that provides financial and human resources information on government operations.
  • Established the Financial Management Transformation (FMT) Program Management Office and developed plans for FMT work. This work includes standardizing and consolidating government-wide financial management systems and improving reporting and analytical tools across the Government of Canada.
Priority 2: Modernize people management to support a productive, high-performing, and affordable public service.
Type Programs

Ongoing

People Management

Summary of Progress

In 2014–, the Secretariat:

  • Developed the mandates, strategies and advice intended for the reform of the public service's disability and sick leave system.
  • Implemented the changes to the Public Service Health Care Plan negotiated in 2014, with a view to achieving a 50-50 cost-sharing ratio with pensioners by .
  • Implemented performance management across the core public administration for employees subject to the Directive on Performance Management, using an automated process built around the Public Service Performance Management Application.
Priority 3: Provide leadership in information management (IM) and strategic use of information technology (IT) to enable more efficient and effective enterprise delivery of government programs and services.
Type Programs

Ongoing

Management Frameworks

Summary of Progress

In 2014–, the Secretariat:

  • Consolidated over 1,500 individual websites into Canada.ca through the Web Renewal initiative. In addition, over 40 departments contributed datasets to the Open Government portal on this website.
  • Continued to lead the Open Government initiative by publishing Canada's second Action Plan on Open Government.
  • Continued to support secure online service delivery that provides users with a single secure login to online services. Over 7 million active credentials are in use.
  • Developed a strategy to consolidate, standardize and increase the efficiency of the government's back office administrative systems and business processes. The strategy received government-wide support.
  • Strengthened the Enterprise Security Architecture framework, which is focused on providing standardized solutions for cost-effective, resilient and secure IT services.
Priority 4: Further reduce red tape for business, and streamline internal government rules to increase efficiency and reduce costs.
Type Programs

Ongoing

Management Frameworks

Summary of Progress

In 2014–, the Secretariat:

  • Renewed the Management Accountability Framework (MAF) assessment process and launched the new MAF portal. The Secretariat uses MAF to gain a broad perspective on the state of management practices and performance in the federal government, as well as to monitor key areas of policy compliance and implementation.
  • Launched a review of the Treasury Board policy suite to streamline policy requirements, improve coherence and clarity, and support cost-effective reporting and compliance.
  • Provided leadership on five horizontal commitments in the Destination 2020 report, including the launch of the Blueprint 2020 Internal Red Tape Reduction initiative. A tiger team was established to identify issues and derive solutions from the perspectives of the end-users.
  • Continued to offset administrative burden on business and eliminate regulations in accordance with the One-for-One Rule.
Priority 5: Continue to implement the Secretariat’s workplace renewal initiative to modernize its office space, technology and internal operations and improve efficiency.
Type Programs

Ongoing

All programs, including Internal Services

Summary of Progress

In 2014–, the Secretariat:

  • Finalized plans to move to new office accommodations in 2015–, with a view to consolidating and reducing office space. The plans included a move to 90 Elgin for 65 per cent of the Secretariat’s operations, the relocation of its records office to a space at 45 Sacré-Coeur, and an interim move to existing offices at 140 O’Connor for 35 per cent of its operations, with a planned move to renovated offices at 219 Laurier and a third location at a later date. The Secretariat also implemented technologies to support collaboration and a mobile and connected workforce.
  • Renewed its internal governance structure after a comprehensive review. The new structure provides oversight over the department’s project and resourcing issues, as well as over government-wide policy issues. The internal processes also make better use of new technology to transition from paper-based meeting materials to electronic formats.
  • Unified multiple transformation initiatives, including Blueprint 2020 initiatives, under the “This is TBS” steering committee, creating a more collaborative, open and agile organization with better enabling technologies and reduced office space.
  • Renewed its Strategic Outcome, Program Alignment Architecture and Performance Measurement Framework to better support resource alignment and management for results.

Risk Analysis

The Secretariat actively monitors its operating environment to identify and manage risks that could affect progress toward its Strategic Outcome and organizational priorities. Key risks are captured in the Secretariat's Corporate Risk Profile, which is updated annually. These risks are outlined in the table and narrative below.

Key Risks
Risk Risk Response Strategy Link to Program Alignment Architecture
1. Cyber-Security
There is a risk that a cyber-attack could breach current Government of Canada (GC) information systems and infrastructure, resulting in the compromise of sensitive data and information.

In 2014–, the Secretariat:

  • Led a coordinated response to a number of critical cyber-incidents across the GC, resulting in a lessons learned exercise and an ongoing action plan.
  • Revised the IT Incident Management Plan to incorporate lessons learned.
  • Further strengthened the Enterprise Security Architecture framework.

All responses for this year were completed as planned.

Government Security (1.1.6)

2. Back Office Transformation
There is a risk that the complexity and pace of the transformation agenda may exceed departments' and the Secretariat's capacity to drive the standardization and consolidation of the back office.

In 2014–, the Secretariat:

  • Developed a strategy to consolidate and increase the efficiency of the government's back office administrative systems and business processes, for which it received government-wide support.
  • Established governance structures for overseeing back office transformation.
  • Laid the groundwork for the development of the first GC-integrated IT Plan, enhancing the government's ability to manage the portfolio of IT applications and expenditures at the enterprise level.

All responses for this year were completed as planned.

3. Expenditure Management
There is a risk that gaps in the Secretariat's information and analytic capacity may limit its ability to perform a robust challenge function and to provide sound advice to ministers on costs and expenditure management.

In 2014–, the Secretariat:

  • Reviewed cost estimates through the Costing Centre of Expertise, to improve the quality of cost estimates presented to ministers, with total combined cost estimates of over $100 billion.
  • Engaged departments in the development of new project proposals to implement the federal infrastructure initiative and other budget decisions.
  • Strengthened the financial analysis capacity of its analysts across government through community development and training.

All responses for this year were completed as planned.

4. High-Performing Public Service
There is a risk that there is a misalignment between the skills and abilities required for an evolving and high-performing public service and the current people management policies and tools.

In 2014–, the Secretariat:

  • Fully implemented performance management across the core public administration for employees subject to the Directive on Performance Management.
  • Updated the key leadership competencies for the federal public service, to reflect the complexity and challenge of the current environment.
  • Reviewed the Performance Management Program for Executives.

All responses for this year were completed as planned.

In 2014–, the Secretariat continued to work in a dynamic environment to promote good governance and sound stewardship and enable efficient and effective service to Canadians. The Secretariat's top four risks were primarily driven by external factors—rapid technological change and the increased use of mobile devices, diminished fiscal flexibility, and the increased complexity of whole-of-government systems.

The Secretariat managed its top four risks by seeking to set clearer expectations for other government departments, by increasing engagement with departments, by strengthening the capacity of functional communities, and by improving governance over enterprise-wide initiatives.

The following risk analysis elaborates on the above-mentioned external factors and on the relevance of the identified risks.

1. Cyber-Security

While technological change provides opportunities for greater efficiency, it also presents potential risks from a security perspective. Rapidly evolving cyber-threats are an ongoing concern. In the face of such incidents, Canadian citizens and federal government partners (including industry and other jurisdictions) will demand that the Government of Canada protect their information so that program and service delivery is secure and resilient.

As the government-wide lead on IT security policy and standards, the Secretariat has a responsibility to work with other federal organizations to support a coordinated and strategic approach to cyber-security. Despite the maturity of its current risk response, this area of risk is ongoing. The Secretariat remains focused on progressively evolving its risk response in order to keep up with the pace of technology and counter significant threats.

2. Back Office Transformation

The government continues to use technology to increase efficiency and reduce the administrative costs associated with its back office functions (e.g., human resources, finance, and information management). This involves standardizing, consolidating and simplifying the administrative processes and systems that support the operations of federal organizations.

As a central agency, the Secretariat is well positioned to facilitate a strategic and coordinated approach across government to achieve intended reforms. Developing a government-wide strategy and staging the roll-out of individual back office initiatives is helping to reduce the risks associated with implementing back office transformation. However, this area of work is complex, and some uncertainty remains—particularly when adopting novel approaches and working in areas of shared accountability. The Secretariat is managing the risks by focusing on enterprise governance, change management, strategic communications, outcomes management and performance management.

3. Expenditure Management

The Secretariat continued to focus on providing comprehensive, accurate and reliable financial and non-financial information to Cabinet and Parliament to ensure sound financial decisions. Ongoing measures in this area include efforts to improve information management, business processes, data and analysis, financial community development, and due diligence.

4. High-Performing Public Service

After several years of reduced recruitment and workforce adjustments, the public service is again turning to attracting, developing and retaining talent in order to prepare for long-term demographic shifts.

The Secretariat is simultaneously coordinating multiple complex human resources initiatives to modernize people management and support a productive, high-performing and affordable public service. Specific steps are being taken to improve departmental and public service–wide analysis of workforce needs.

Actual Expenditures

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending
(authorities used)
Difference
(actual minus planned)

Note:
See Program 1.5 in Section II for an explanation of the variance between planned spending and actual spending.

7,364,924,114 7,364,924,114 5,255,176,055 3,221,689,682 -4,143,234,432
2014– Human Resources (full-time equivalents [FTEs])
Planned Actual Difference
(actual minus planned)
1,891 1,835 -56
Budgetary Performance Summary for Strategic Outcome and Programs (dollars)
Strategic Outcome, Programs and Internal Services 2014–15
Main Estimates
2014–15
Planned Spending
2015–16
Planned Spending
2016–17
Planned Spending
2014–15 Total Authorities Available for Use 2014–15
Actual Spending (authorities used)
2013–14
Actual Spending (authorities used)
2012–13
Actual Spending (authorities used)

Note: Any minor numerical differences are due to rounding.

Strategic Outcome: Government is well managed and accountable, and resources are allocated to achieve results
Management Frameworks 51,725,463 51,725,463     57,678,755 54,481,225 57,875,343 58,544,372
People Management 64,550,201 64,550,201     139,264,938 128,785,777 57,834,089 60,974,838
Expenditure Management 31,791,958 31,791,958     31,548,046 30,431,157 35,573,464 31,046,559
Financial Management 32,235,681 32,235,681     31,429,596 31,231,325 31,291,934 30,866,718
Government-Wide Funds and Public Service Employer Payments 7,106,195,208 7,106,195,208     4,905,924,725 2,898,360,909 2,629,221,633 2,500,372,808
Strategic Outcome: Good governance and sound stewardship to enable efficient and effective service to Canadians
Decision-Making Support and Oversight     47,506,141 47,927,651        
Management Policies Development and Monitoring     73,826,361 71,875,824        
Government-Wide Program Design and Delivery     50,671,220 48,051,421        
Government-Wide Funds and Public Service Employer Payments     6,645,161,074 6,333,254,397        
Subtotal 7,286,498,511 7,286,498,511 6,817,164,796 6,501,109,293 5,165,846,060 3,143,290,393 2,811,796,463 2,681,805,295
Internal Services Subtotal 78,425,603 78,425,603 75,279,537 64,308,499 89,329,995 78,399,289 80,724,486 80,220,719
Total 7,364,924,114 7,364,924,114 6,892,444,333 6,565,417,791 5,255,176,055 3,221,689,682 2,892,520,949 2,762,026,013

In 2015–, the Secretariat revised its Program Alignment Architecture to better reflect core business activities and support the achievement of expected results. Due to significant differences between the Secretariat's previous Program Alignment Architecture and the current structure, no historical spending has been restated leading to 2014–.

The above tables provide the Main Estimates, the planned spending, the total authorities available for use, and the actual spending (authorities used) related to each program for 2014–, which are explained by program in the Analysis of Programs by Strategic Outcome section. For comparison purposes, planned spending is provided for 2015– and 2016–, and actual spending is provided for 2012– and 2013–.

The Government-Wide Funds and Public Service Employer Payments program is the largest portion of the Secretariat's planned spending. Based on a three-year average, government-wide funds account for approximately 59 per cent of planned spending for this program. These funds are available for transfer to, and spending by, other departments and agencies. This includes the transfer of funding for centrally managed Votes such as government contingencies, government-wide initiatives, operating and capital budget carry forward, paylist expendituresFootnote 2 and compensation requirements (Central Votes 5, 10, 15, 25, 30 and 33) to other departments and agencies. The Secretariat's total funding available for use is reduced accordingly. The remaining 41 per cent is accounted for by public service employer payments, which go to paying the employer's share of the contributions to employee pensions and benefits plans, including statutory payments.

Overall, planned spending is projected to decrease by $800 million from 2014– to 2016–. This amount is based on an expected decrease of $877 million in spending, of which $850 million is due to a decrease in paylist-related expenditures following the elimination of severance benefits for voluntary separation (i.e., for retirement or resignation), offset by a projected increase of $77 million in spending—largely for an expected increase in Public Service Health Care Plan usage, an increase in service costs to deliver the Pensioners' Dental Services Plan and the Public Service Dental Care Plan, and higher employer contributions directly related to increases in the payroll envelope.

Actual spending increased by $329 million from 2013– to 2014–. This was primarily to address a funding shortfall within the plan to provide benefits to the increased number of medically released Canadian Armed Forces members following the Afghanistan mission, and to implement approved benefit changes to the Public Service Health Care Plan totalling $268 million. In addition, there was an increase of $61.6 million mostly attributable to new funding received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit launched against the Crown, Buote Estate v. Canada, 2014 FC 773 (CanLII), involving the elimination of the Pension Act offset provision under the Royal Canadian Mounted Police Long Term Disability Insurance Plan.

For the previous year, actual spending from 2012– to 2013– increased by $130.5 million. This was mainly due to an increase in disability and health care expenditures, offset by reduced recoveries from the departments that remit the employer's share of public service insurance benefits related to their employees.

Alignment of Spending With the Whole-of-Government Framework

Alignment of 2014– Actual Spending with the Whole-of-Government Framework (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2014-15 Actual Spending

Government is well managed and accountable, and resources are allocated to achieve results.

1.1 Management Frameworks Government Affairs Well-managed and efficient government operations 54,481,225
1.2 People Management Government Affairs Well-managed and efficient government operations 128,785,777
1.3 Expenditure Management Government Affairs Well-managed and efficient government operations 30,431,157
1.4 Financial Management Government Affairs Well-managed and efficient government operations 31,231,325
1.5 Government-Wide Funds and Public Service Employer Payments Government Affairs Well-managed and efficient government operations 2,898,360,909
Total Spending by Spending Area (dollars)
Spending Area Total Planned Spending Total Actual Spending
Note: The figures above do not include Internal Services.
Economic Affairs N/A N/A
Social Affairs N/A N/A
International Affairs N/A N/A
Government Affairs 7,286,498,511 3,143,290,393

Departmental Spending Trend

Figure 1: Treasury Board of Canada Secretariat 2014– Actual Spending ($ millions)
Treasury Board of Canada Secretariat 2014–15 Actual Spending ($ millions). Text version below:
Figure 1. Treasury Board of Canada Secretariat 2014– Actual Spending ($ millions) - Text version

This graphic is a pie chart that illustrates the actual spending breakdown of $3.2 billion for the Secretariat in 2014-. The pie chart is broken down into two spending areas as follows: 10 per cent ($323 million) of total spending is attributed to the Secretariat's operations, and 90 per cent ($2,898 million) of total spending is attributed to centrally managed funds.

Any minor differences are due to rounding.

The Secretariat spent a total of $3.2 billion toward achieving its Strategic Outcome. Approximately 10 per cent of its total spending was directly related to operating expenditures. Most of the remainder related to Public Service Employer Payments, which the Secretariat manages in its role as the employer for the core public administration.

Figure 2: Treasury Board of Canada Secretariat Public Service Employer Payments and Various Statutory Items 2014– Actual Spending ($ millions)
Treasury Board of Canada Secretariat Public Service Employer Payments and Various Statutory Items 2014–15 Actual Spending ($ millions). Text version below:
Figure 2. Treasury Board of Canada Secretariat Public Service Employer Payments and Various Statutory Items 2014– Actual Spending ($ millions) - Text version

This graphic is a pie chart that illustrates the actual spending breakdown of $2.9 billion under public service employer payments and various statutory items in 2014-15. The pie chart is divided into six spending areas, broken down as follows: 22 per cent is attributed to provincial payroll taxes and health care premiums ($631 million); 31 per cent is attributed to the Public Service Health Care Plan ($886 million); 12 per cent is attributed to dental care plans ($344 million); 13 per cent is attributed to service income security insurance plan ($368 million); 8 per cent is attributed to disability insurance, and other ($224 million); and the remaining 15 per cent is attributed to statutory items ($444 million).

Any minor differences are due to rounding.

Total spending for Public Service Employer Payments was $2.5 billion in 2014–. The amount includes payments made toward 16 public service benefit plans and their associated administrative expenditures. Statutory payments, which relate to the employer contributions made under the Public Service Superannuation Act and other retirement acts and the Employment Insurance Act, totalled $444 million.

Figure 3: Departmental Spending Trend for Program Expenditures (Vote 1)
Departmental Spending Trend for Program Expenditures (Vote 1). Text version below:
Figure 3. Departmental Spending Trend for Program Expenditures (Vote 1) - Text version

This bar graph illustrates the spending trend for Secretariat program expenditures (Vote 1) related to actual spending for fiscal years 2012-, 2013- and 2014- and planned spending for fiscal years 2015-, 2016- and 2017-.  Financial figures are presented in dollars along the y axis, increasing by $50 million and ending at $350 million.  These are graphed against fiscal years 2012- to 2017- on the x axis.

There are two items identified for each fiscal year, the first one being statutory items, largely comprised of contributions to employee benefit plans, and the other, the Secretariat's program expenditures (Vote 1).

In 2012-, actual spending was $29,775,712 for statutory items and $231,877,492 for program expenditures.

In 2013-, actual spending was $29,075,263 for statutory items and $234,224,053 for program expenditures.

In 2014-, actual spending was $27,477,862 for statutory items and $295,850,911 for program expenditures.

Planned spending for statutory items goes from $27,681,925 in 2015-, to $26,794,261 in 2016- and to $26,569,830 in 2017-.

Planned spending for program expenditures goes from $219,601,334 in 2015-, to $205,369,133 in 2016-, and to $202,432,972 in 2017-.

In general, the Secretariat's operating expenditures include salaries, non-salary costs to deliver programs, and statutory items. These items primarily consist of contributions to the Secretariat's employee benefit plans.

There was an increase of $61.7 million in total program expenditures between 2012– and 2014–. The increase was mostly due to new funding received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit. The subsequent decrease between 2014– actual spending and 2015– planned spending was mostly related to the payout of the same out-of-court settlement, as well as to reduced funding related to the Web Renewal initiative.

Decreases in program expenditures are expected to continue until 2017–, due to the sunsetting of initiatives such as the Workspace Renewal initiative, the Joint Learning Program, the Web Renewal initiative, the Federal Contaminated Sites Action Plan, and the Workplace Wellness and Productivity Strategy.

Figure 4: Public Service Employer Payments (Vote 20) and Various Statutory Items – Spending Trend Graph
Public Service Employer Payments (Vote 20) and Various Statutory Items – Spending Trend Graph. Text version below:
Figure 4. Public Service Employer Payments (Vote 20) and Various Statutory Items – Spending Trend Graph - Text version

This bar graph illustrates the spending trend for the public service employer payments (Vote 20) and various statutory items related to actual spending for fiscal years 2012-, 2013- and 2014- and planned spending for fiscal years 2015-, 2016- and 2017-. Financial figures are presented in dollars along the y axis, increasing by $500 million and ending at $3.5 billion.  These are graphed against fiscal years 2012- to 2017- on the x axis. 

There are two items identified for each fiscal year, the first one being statutory items, largely comprised of payments under the Public Service Pension Adjustment Act, and the other for public service employer payments.

In 2012-, actual spending was $443,023,226 for statutory items and $2,057,349,583 for public service employer payments.

In 2013-, actual spending was $443,088,925 for statutory items and $2,186,132,708 for public service employer payments.

In 2014-, actual spending was $444,049,205 for statutory items and $2,454,311,704 for public service employer payments.

Planned spending for statutory items will remain the same for fiscal years 2015- to 2017- in the amount of $443,000,000.

Planned spending for public service employer payments goes from $2,250,070,604 in fiscal year 2015-, to $2,337,061,397 for fiscal years 2016- to 2017-.

In general, expenditures for public service employer payments and statutory items include the employer's share of contributions required by the insurance plans sponsored by the Government of Canada. They also include statutory payments made under the Public Service Pension Adjustment Act and employer contributions made under the Public Service Superannuation Act, the Employment Insurance Act, and related acts.

Expenditures for public service insurance increased by $129 million from 2012– to 2013– following:

  • A premium rate increase to the employer for the Disability Insurance Plan;
  • Reinstatement of premiums for the Royal Canadian Mounted Police Long Term Disability Plan; and
  • Higher usage of the Public Service Health Care Plan.

This increase was offset by reduced recoveries from designated government departments that remit the employer's share of public insurance benefits related to their employees.

Public service employer payments increased by $268 million from 2013– to 2014–. This increase was mostly to address a funding shortfall within the plan to provide benefits to the increased number of medically released Canadian Armed Forces members following the Afghanistan mission. It was also due to the implementation of the changes to the Public Service Health Care Plan negotiated in 2014 that increased premiums for pensioners with a view to achieving a 50-50 cost-sharing ratio with pensioners by .

Planned spending between 2015– and 2017– is expected to increase by $87 million, largely due to an expected increase in Public Service Health Care Plan usage, an increase in service costs under the Pensioners' Dental Services Plan and the Public Service Dental Care Plan, and higher employer contributions directly related to increases in the payroll envelope.

Estimates by Vote

For information on the Secretariat's organizational Votes and statutory expenditures, consult the Public Accounts of Canada 2014 on the Public Works and Government Services Canada website.

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