President of the Treasury Board Appearance at the Standing Committee on Government Operations and Estimates (OGGO) - President of the Treasury Board's Mandate & Priorities - October 2025

Treasury Board

The Treasury Board consists of the President of the Treasury Board (the President), the Minister of Finance and four other members of the King’s Privy Council for Canada that are designated as members by an order in council. The composition of the Treasury Board is set out in the Financial Administration Act, which also provides for the appointment of alternates who can serve in the place of members. The Treasury Board’s quorum is three members (including alternates).

The Treasury Board exercises authority over a range of issues, and its role can generally be classified into powers of supervision, recommendation, decision, approval, reporting and regulation-making. While the primary statute setting out the role of the Treasury Board is the Financial Administration Act, there are over 20 other statutes that also establish its roles and authorities. The Treasury Board’s powers and responsibilities are also set out in regulations, orders in council, policies, guidelines and practices.

Treasury Board (Governor in Council)

Since December 2003, the members of the Treasury Board have also been asked to serve as members of the Committee of the Privy Council advising the Governor in Council. This role is often referred to as “Treasury Board, Part B.” The principal role of Treasury Board, Part B, is to provide regulatory oversight, reviewing and approving most regulations and orders in council.

When advising the Governor in Council, the quorum for Treasury Board, Part B is four members. The composition of the Treasury Board, Part B, is not specified by the Financial Administration Act. In the absence of a sufficient number of Treasury Board members, other Cabinet ministers may be invited to participate.

President of the Treasury Board

Treasury Board of Canada Secretariat

TBS was established as a department in 1966 as the administrative arm of the Treasury Board. It 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 in their roles as accounting officers before Parliament. In this way, TBS helps to strengthen government performance, results and reporting and supports good governance and sound stewardship.

The business lines of TBS are expressed through its Departmental Results Framework, which sets out the following core responsibilities for the organization:

• spending oversight
• administrative leadership
• employer
• regulatory oversight
• internal services

The Departmental Results Framework also focuses on the results the department is aiming to achieve in these core areas, as well as how progress will be assessed. This information helps support TBS’s reporting to Parliament through its Departmental Plan and Departmental Results Report. The Departmental Plan, tabled in the spring, describes what TBS will do over the next three years to achieve results for Canadians and the resources that are required to do so. The Departmental Results Report, tabled in the fall, describes TBS’s actual performance and the resources it used during the previous fiscal year.

The Secretary of the Treasury Board

The Secretary of the Treasury Board is the deputy head of TBS. The Secretary is appointed by the Governor in Council.

Subsection 12(1) of the Financial Administration Act sets out the powers assigned to deputy heads in the core public administration, which include, among others:

• determining the learning, training and development requirements of public service employees
• establishing standards of discipline and setting penalties (including termination of employment, suspension, demotion or financial penalties)
• providing for the termination of employment or demotion of public service employees for disciplinary reasons, unsatisfactory performance or other non-disciplinary reasons

The Secretary is an accounting officer pursuant to sections 16.1 through 16.4 of the Financial Administration Act, as are all other deputy heads and chief executive officers. Accounting officers are senior officials that can be called to testify before a parliamentary committee regarding the management of their department and the performance of their duties.

Under section 16.5 of the Financial Administration Act, the Secretary has a role in providing guidance on the interpretation of policies, directives or standards issued by the Treasury Board in disputes between deputy heads (as accounting officers) and ministers.

Although the Secretary oversees TBS, three other senior officials within the department, established under the Financial Administration Act and appointed by order in council, have specific government-wide leadership responsibilities:

• the Comptroller General of Canada provides leadership, direction and oversight of financial management, internal audit, and investment management
• the Chief Human Resources Officer:
  • provides leadership on people management through policies, programs and strategic engagements
  • centrally manages labour relations, compensation, pensions and benefits
  • contributes to the management of executives
• the Chief Information Officer of Canada provides leadership, direction and oversight of information management, information technology, government security, access to information, privacy and internal and external service delivery

The Treasury Board may delegate to the Secretary any of the powers or functions it is authorized to exercise under any Act of Parliament or by any order made by the Governor in Council (section 6(4) of the Financial Administration Act). The Treasury Board may also delegate some of its powers to the three other senior officials listed above, in addition to other officials (sections 6(4), (4.1) and (4.11) of the Financial Administration Act). Such delegated powers can be further delegated. Any sub-delegation is subject to the terms and conditions of the original delegation (section 6(6) of the Financial Administration Act).

Overview of the legislative mandate of the Treasury Board and the President

The Financial Administration Act is the primary statute that outlines the role of the Treasury Board and the President. Other federal laws also contain provisions that implicate the Treasury Board and the President.

Appendix: Statutes for which the President is named as responsible minister

• Access to Information Act (note: the President’s responsibility is shared with the Minister of Justice)
• Alternative Fuels Act
• Auditor General Act
• Canada School of Public Service Act
• Conflict of Interest Act
• Diplomatic Service (Special) Superannuation Act
• Federal Real Property and Federal Immovables Act
• Government Services Act, 1999
• Government Services Resumption Act
• Lieutenant Governors Superannuation Act
• Lobbying Act
• Members of Parliament Retiring Allowances Act
• Privacy Act (note: the President’s responsibility is shared with the Minister of Justice)
• Public Pensions Reporting Act (note: the President’s responsibility is shared with the Minister of Employment and Social Development)
• Public Sector Compensation Act
• Public Sector Pension Investment Board Act
• Public Servants Disclosure Protection Act
• Public Service Employment Act (note: the President’s responsibility is shared with the President of the King’s Privy Council for Canada and the Minister of Canadian Heritage)
• Public Service Pension Adjustment Act
• Public Service Superannuation Act
• Red Tape Reduction Act
• Special Retirement Arrangements Act
• Supplementary Retirement Benefits Act

List of Treasury Board policies and directives by policy area

Issue

What are the priorities of the President of the Treasury Board and the department?

Response

TBS’s 2025–26 Departmental Plan, outlines key priorities of my department, including sound fiscal management, digital government, and regulatory modernization.

Importantly, we are undertaking a Comprehensive Expenditure Review to ensure operating spending is focused on core priorities and delivers value for Canadians.

We are leading the Public Service AI Strategy to enhance efficiency and service to Canadians through the responsible AI use across departments.

And finally, we are reducing regulatory burden through a government-wide Red Tape Reduction initiative to eliminate outdated rules and streamline processes.

Background

The President of the Treasury Board is leading several priority initiatives to help implement the government’s agenda. These include:

Issue

Can you provide an update on the Comprehensive Expenditure Review?

Response

The government has committed to balancing its operating budget over the next three years.

In this context, the government is undertaking a Comprehensive Expenditure Review to ensure government spending is responsible and delivers results for Canadians.

With a phased approach over the next three years, organizations have been asked to develop savings proposals of up to 15% of their assigned spending base.

Proposals are intended to identify operational efficiencies and to target programs that are duplicative, ineffective or misaligned with the federal mandate or government priorities.

We are currently assessing these proposals, and final decisions will be presented in due course.

If pressed on impacts on Canadians

In some cases, it may be necessary to wind down or change programs to focus on more impactful investments.

This exercise is about making sure that government spending is responsible, cost effective and delivers results for Canadians.

If pressed on job loss

Departments will aim to minimize the number of impacted employees by using all HR planning tools at their disposal, including attrition and assisting employees in securing alternative positions within the federal public service.

The government will respect existing Work Force Adjustment provisions.

Background

On July 7, 2025, the President of the Treasury Board and the Minister of Finance launched the Comprehensive Expenditure Review by sending a letter to all ministers.

Organizations were required to submit, by August 28, saving proposals totalling up to 7.5% in 2026–27, 10% in 2027–28 and 15% in 2028–29 of their review base (that is, voted operating and transfer payment budget as per the Main Estimates 2025–26).

• Given the significant investment in their activities, however, National Defence, Canada Border Services Agency and the RCMP will be subject to lower targets. Their targets amount to 2% per year of their review base, starting in 2026–27.

Organizations have been directed to target programs and activities that are underperforming, not core to the federal mandate, duplicative, or misaligned with government priorities.

The Cabinet Committee on Government Transformation / Government Efficiency is responsible to review department proposals and to make recommendations to the Prime Minister.

All approved reductions will be reflected in the 2026–27 Main Estimates.

Issue

How will the shift to a fall budget and the new Capital Budgeting Framework address concerns from the Parliamentary Budget Officer and OGGO Committee about the disconnect between the federal budget and Main Estimates, and improve Parliamentarians’ ability to scrutinize spending?

Response

The government is committed to providing Parliamentarians and Canadians with useful, timely information about its use of public funds.

The Capital Budgeting Framework will allow Parliamentarians and Canadians to clearly see the day-to-day cost of running government versus the long-term investments being made to strengthen Canada.

This approach will fully comply with Public Sector Accounting Standards, providing reliable, trustworthy accountability.

Moving to a fall budget schedule will allow more budget investments to be reflected in the Main Estimates.

This change will give parliamentarians a clearer view of planned spending before the fiscal year begins and will provide departments with the opportunity to receive approved funds earlier in the year.

Background

On October 6, 2025, the Minister of Finance announced changes to the federal budget to enhance financial reporting, predictability and alignment with the Main Estimates.

Capital Budgeting Framework

The government will introduce a new Capital Budgeting Framework. By distinguishing day-to-day operational spending from capital investment, this new framework will guide decisions and help prioritize investments that generate long-term benefits for Canadians, such as major projects, housing, clean energy, and infrastructure that will help grow our economy and attract private investments. The new framework will enhance—not replace—existing financial reporting. The Public Accounts of Canada will remain fully compliant with Public Sector Accounting Standards.

Under the new Capital Budgeting Framework, capital investment is defined broadly as any government expense or tax expenditure that contributes to public or private sector capital formation, held directly on the government’s balance sheet or on that of a private sector entity, Indigenous community or another level of government.

Spending that is not categorized as capital investment would be considered day-to-day operating spending. This will include major government expenditures like transfers to persons, health and social transfers, and the costs of running government operations and services, including salaries and benefits.

Issue

What oversight does the GC have regarding the use of public funds?

Response

The government is committed to making sure that public funds are well managed, so Canadians are well served.

Before any new money can be spent, my department thoroughly assesses plans and projections to make sure that expenditures are reasonable, cost-effective and provide value for money.

These plans are then submitted to Treasury Board for further scrutiny.

Should proposed spending plans be approved by Treasury Board, they are submitted to Parliament for review, debate, and a vote by all members. New funding can only be spent after receiving parliamentary approval.

To ensure transparency and accountability, all proposed spending and actual expenditures are reported to both parliamentarians and the public. As well, government departments report every year on the results they achieved on behalf of those they serve.

If pressed: responsive of rules and controls for government spending

• The Treasury Board sets requirements for the prudent management of public funds. Deputy heads are responsible for following these rules, and the Risk and Compliance Process will help them verify that the right systems, processes and practices are in place in their departments.

Background

Under its core responsibility for spending oversight, TBS reviews spending proposals and authorities as well as existing and proposed government programs for efficiency, effectiveness and relevance. This includes providing information to Parliament and Canadians on government spending.

Issue

Is the government laying off employees across the public service?

Response

When programs, activities and budgets change, departments may need to reduce their workforce.

The government is committed to ensuring that employees affected by workforce adjustment are treated fairly in accordance with their collective agreements, terms and conditions of employment, and the Values and Ethics Code for the Public Sector.

Through workforce adjustment or career transition provisions, permanent employees whose jobs are no longer required will either be provided the possibility of remaining in the public service by moving to another job or to pursue a range of supports, should they have to exit the public service.

Background

When departments face budget reductions and must reduce their expenditures, they will generally complete a human resources analysis; and consider ending non-permanent staffing, such as contracts, term employees, casual workers and students. As needed, departments may consider full-time permanent employees.

The Work Force Adjustment Directive and Workforce Appendices which form part of collective agreements outline the provisions for workforce adjustment for indeterminate employees.

Executives are subject to the career transition appendices E, F and G of the Directive on Terms and Conditions of Employment for Executives, which facilitate the career transition of executives in a workforce reduction situation.

The workforce adjustment provisions can be used when:

• the services of one or more indeterminate employees will no longer be required beyond a specified date due to a lack of work
• there is a discontinuance of a function
• a relocation of a work unit in which the employee does not wish to participate, or
• an alternative delivery initiative

For executives, career transition provisions can be used when there is a:

• lack of work
• discontinuance of a function, or
• transfer of work or a function outside those portions of the federal public administration named in Schedule I, IV or V to the Financial Administration Act

The aim is to ensure that indeterminate employees whose services are no longer required because of a workforce adjustment situation are, wherever possible, provided with alternative employment opportunities.

The department will confirm to an employee if they will:

• receive a “guaranteed reasonable job offer” at the same level and skill set within the core public administration, or
• be provided four options:
  • Option A: 12-month surplus priority entitlement – they will be referred to public service jobs
  • Option B: Transition Support Measure (TSM) – lump-sum payment in exchange for resignation
  • Option C (i): TSM and an Education Allowance
  • Option C (ii): TSM, an Education Allowance and up to two years’ leave without pay

For executives, the department will plan and leverage mobility provisions (for example, agreement to being deployed is a condition of their employment). And where a career transition situation exists, the department notifies the executive of their timelines and two options:

• Option 1: Leave the core public administration and seek employment elsewhere, or
• Option: Seek continuing employment in the core public administration

Issue

What is the government doing to reduce the size of the public service?

Response

The government is in the midst of a Comprehensive Expenditure Review to ensure government spending is responsible, cost-effective and delivers results for Canadians.

Organizations have brought forward savings proposals targeting efficiencies, as well as programs and activities that are underperforming, not core to the federal mandate, duplicative, or misaligned with government priorities.

Many of these proposals are expected to include public service reductions.

Final decisions will be presented in the due course.

Background

The population of the federal public service was 257,034 in 2015 and grew to 367,772 in 2024 and then reduced to 357,965 in 2025.

The population of the federal public service compared with the Canadian population grew from 0.72% in 2015 to 0.90% in 2024 and reduced to 0.86% in 2025.

Managing hiring, talent and departures within organizations is the responsibility of deputy heads.

The size and composition of the public service adjust to meet government priorities, with deputy heads ensuring the workforce aligns with departmental mandates and program delivery requirements.

Since the start of the pandemic, the public service expanded significantly to support emergency response efforts and recovery programs and other government priorities, such as immigration. Despite this growth, the public service remains relatively stable as a proportion of Canada’s population, currently representing 0.86% in 2025. This is still lower than the levels seen in the 1980s and early 1990s, when the proportion was higher. Annual growth slowed to 2.9% between 2023 and 2024 and then experienced a 2.7% annual reduction between 2024 and 2025, compared to an average annual growth of 5.5% from 2019 to 2023.

Budget 2023 announced the Refocusing Government Spending initiative to reallocate spending starting in 2023–24 from across departments to priority areas. Details of specific budget reallocations by department are available online at Refocusing Government Spending: Refocusing Government Spending: Results for 2024–25, 2025–26, and 2026–27.

Budget 2024 announced the second phase of refocusing government spending, requiring departments to cover part of their increased operating costs through existing resources starting on April 1, 2025. These savings are expected to be achieved primarily through natural attrition to the extent possible.

The platform of the Liberal Party of Canada included an explicit commitment to “capping” public service employment and ensuring that the size of the federal public service meets the needs of Canadians.

Prime Minister Carney’s announcement on May 2, 2025, outlined the government’s priority to “… balance our operating budget over the next three years by cutting waste, capping the public service, ending duplicative programs and deploying technology to boost public sector productivity.”

On May 21, 2025, the Prime Minister’s Mandate Letter to Cabinet included a commitment to spend less on government operations so that Canadians can invest more in the people and businesses that will build the strongest economy in the G7. The May 27, 2025, Speech from the Throne committed to reducing the government’s operating budget from a growth rate of 9% annually to below 2% and confirmed a public service employment cap would be put in place to achieve this goal.

Issue

Why did the government spend $142.5 million on performance pay for federal executives in 2023–24?

Response

The Performance Management Program for Executives helps build a high-performing leadership team that can deliver results to Canadians.

Under this program, a portion of executives’ compensation is held back each year and only paid if executives meet the expectations outlined in their performance agreements.

For a small proportion of executives who demonstrate exceptional performance, performance pay also includes a bonus.

On average, executives in the core public administration received performance pay equal to 10.8% of their salary, well below the average received by executives in other Canadian public and private sector organizations.

Background

Performance pay is a key component of executive compensation in the federal public service. It is not an automatic entitlement. Each year, a portion of executives’ total compensation is held back and only paid once it is confirmed that they have met the performance objectives outlined in their performance agreements. This ensures accountability for results.

In addition to this base amount, a smaller portion of executives, those who exceed expectations, may receive a bonus. Bonuses are the only fully discretionary component of performance pay.

Executives do not receive performance pay when their performance does not meet expectations or cannot be assessed for a variety of reasons (for example, when an executive is absent from the job for a significant portion of the performance cycle).

On July 31, 2025, TBS published the results of the Performance Management Program for Executives for 2023–24 on Canada.ca. In the 2023–24 performance pay cycle, 7,960 executives (97%) in the core public administration received performance pay, including 623 (7.6%) who received a bonus for exceptional performance. Compared to the 2022-2023 performance pay cycle, where 7,689 executives (97%) across the core public administration earned performance pay with 705 (8.9%) of them receiving a bonus.

The total spending for performance pay was $142.5 million in 2023–24, including $3.8 million for bonuses, which is an increase of $15.6 million (+12.3%) compared to 2022–23 ($126.9 million). The increase is primarily due to:

• salary adjustments, including compounded salary increases totalling 5.8% for 2022–23 and 2023–24, and other salary changes (for example, promotions and in-range movements); the salary increases align with those provided to the majority of employees across the federal public service
• 3.5% increase in the number of executives who received performance pay, from 7,689 to 7,960

In 2023–24, the average performance pay per executive increased from $16,498 to $17,869. On average, executives in the core public administration received performance pay equal to 10.8% of their salary, well below the 27.0% average received by executives in other Canadian public and private sector organizations.

Issue

How will the GC commit to advancing pay equity in the public service?

Response

The GC is committed to ensuring that all employees receive equal pay for work of equal value, regardless of gender.

That’s why we’re implementing the Pay Equity Act across the core public administration, the Royal Canadian Mounted Police, and the Canadian Armed Forces.

Given the size and complexity of these groups, this is a significant undertaking, but we are working with bargaining agents and employee representatives to develop pay equity plans within the timelines granted to us by the Pay Equity Commissioner.

Background

The GC is committed to creating an inclusive public service that promotes equal opportunity and fairness. Ensuring that women receive equal pay for work of equal value is one key initiative that supports this goal.

Although it is recognized that other groups may experience wage discrimination, this initiative is intended to address the persistent gender wage gap where women continue to earn less than men for work of equal value. TBS, on behalf of the Treasury Board as the employer, is responsible for implementing the Pay Equity Act for employees in the core public administration, as well as for members of the Royal Canadian Mounted Police and the Canadian Armed Forces.

This multi-year initiative includes developing pay equity plans with bargaining agents and employee representatives and then adjusting wages, as required, to ensure women receive equal pay for work of equal value moving forward. Once the plans are implemented, they must be reviewed at least once every five years to ensure that wage gaps continue to be addressed so that pay equity can be maintained.

Issue

What is the government doing to strengthen public service integrity in the wake of issues such as ArriveCAN?

Response

As a condition of employment, all public servants must adhere to the Directive on Conflict of Interest and the Values and Ethics Code for the Public Sector.

They must identify and address any situations of real, apparent or potential conflict of interest.

Further to this, all employees must now resubmit a conflict-of-interest attestation annually.

A review of the Directive on Conflict of Interest is also underway and the results will be communicated soon.

We have one of the best public services in the world and we will continue to seek opportunities to maintain the highest levels of integrity and public trust.

Background

The avoidance, prevention, and resolution of conflicts of interest are among the key ethical responsibilities of public servants and are essential to maintaining public trust. Because of the authority, influence, or power that public servants may exercise in their official responsibilities, they must resist any offers to exchange advantages for the exercise of that authority, influence, or power, and the appearance of having done so.

The Values and Ethics Code for the Public Sector sets a high standard of ethical behaviour. Public servants must carry out their duties in a non-partisan and impartial manner, avoiding the appearance of a conflict of interest, ensuring that the public interest is protected, and providing decision makers with all of the information, analysis and advice they need in a candid and impartial manner. Public servants must be non-partisan in their work and serve each duly elected government loyally.

The Directive on Conflict of Interest provides direction to public servants on how to identify, prevent and resolve conflicts of interest. Compliance with the Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest is a condition of employment and breaches of either are subject to discipline up to and including termination of employment. The deputy head of each organization is responsible for the systems used in their organizations for reporting on conflicts of interest, and for supporting a positive culture of values and ethics.

The parliamentary and media focus on ArriveCAN has led to a heightened interest in values and ethics and particularly Conflict-of-Interest declarations made by public servants in relation to contractual relationships with the GC.

On March 20, 2024, the former President of the Treasury Board and former Minister of Public Services and Procurement Canada (PSPC) announced a series of actions and commitments to enhance effective management of government procurement. One of the actions has been a review of the Directive on Conflict of Interest to clarify the responsibilities of employees who engage in contracting with the government.

The Office of the Comptroller General has also taken several actions in the past year to enhance integrity in procurement. These actions include:

• release of an update to the Manager’s Guide: Key Considerations when procuring professional service with guidance to help managers make decisions that demonstrate a prudent use of tax dollars
• added new requirements to the Directive on the Management of Procurement to strengthen accountabilities. New requirements are related to values and ethics, documentation and reporting, and a requirement to integrate PSPC’s Code of Conduct for Procurement into all government procurements
• undertook a horizontal audit across several large departments to assess governance, decision-making, and controls associated with professional services contracts; audit results were published in March 2025
• published a Guide to Mitigating Conflict of Interest in Procurement that highlights conflict of interest requirements in relevant laws and policies including reporting and monitoring, documentation, supplier obligations, and reporting fraud and wrongdoing

Issue

What are the ongoing efforts being taken by the GC regarding whistleblower protections?

Response

The government is committed to promoting a positive, respectful, and safe public sector culture that is grounded in values and ethics and inspires public trust.

The Public Servants Disclosure Protection Act protects public servants against reprisals when they report wrongdoing in the workplace.

We will continue to work to make meaningful improvements to the federal disclosure process so that employees feel confident bringing forward cases of wrongdoing.

As part of these ongoing efforts, a task force was appointed in November 2022 to review this act and identify opportunities to improve the disclosure process. I look forward to receiving their recommendations once they have completed their work.

Background

As part of the former Minister’s mandate to take action to improve the government’s whistleblower protections and supports, the Public Servants Disclosure Protection Act Review Task Force was created in November 2022. Composed of people who bring significant experience and diverse expertise within the field, the task force began its work in January 2023 and is expected to conclude its review with a report to be provided to the President of the Treasury Board once they have completed their work.

This review is considering the work conducted by the Standing Committee on Government Operations and Estimates and the recommendations from its 2017 report, research on the latest developments in whistleblowing in other jurisdictions, current input from stakeholders, a survey accessible to the public sector and members of the general public, as well as views expressed during Parliamentary consideration of Private Members Bill C-290, An Act to amend the Public Servants Disclosure Protection Act, introduced in the previous Parliament by Bloc Québécois MP Jean-Denis Garon in June 2022.

Bill C-290 was introduced to address various aspects of the disclosure process, strengthen whistleblower protections, and to add supports to public servants. The Bill passed third reading in the House of Commons on January 31, 2024, and was referred to the Senate. The Bill was terminated upon the dissolution of Parliament on March 23, 2025. The Bloc Quebecois continued to focus on the need to enhance whistleblower protections in their 2025 platform and may re-introduce similar legislation.

On November 5, 2024, the Annual Report on the Public Servants Disclosure Protection Act for 2023–24 was tabled by the former President of the Treasury Board. It showed that 250 public servants made 266 internal disclosures concerning 425 allegations of wrongdoing. This compares to 152 public servants who made 246 internal disclosures concerning 356 allegations of wrongdoing in 2022–23.

Issue

Why did the government take funds from the Public Service Pension Fund?

Response

The GC is committed to providing federal public servants with a well-managed, stable and sustainable pension plan.

As a result of strong investment returns, last year the public service pension plan had a non-permitted surplus of approximately $1.9 billion.

In line with legislation, the government transferred this non-permitted surplus to the Consolidated Revenue Fund (CRF).

We continue to assess next steps following the transfer of the non-permitted surplus funds to the CRF. No decisions have yet been taken.

Public servants can rest assured that this transfer has no impact on the pension benefits of current or future public service retirees.

Background

The funding position of the public service pension plan is regularly monitored through actuarial reviews. Among other things, the actuarial review establishes whether the plan is in a deficit (funding ratio below 100%), surplus (funding ratio above 100%) or non-permitted surplus position (funding ratio above 125%).

Legislation requires that, every three years, the Chief Actuary of Canada prepare an actuarial valuation report which provides information on the funding position of the pension plan and present this report to the President of the Treasury Board. The President of the Treasury Board is required to table the actuarial report in Parliament.

As the regular periodic actuarial report dates are prescribed by the Public Pensions Reporting Act and reflect an inherent time delay of approximately 18 months before the reports are tabled in Parliament, the President may form an opinion on the funded status of the plan based on reasonable and relevant evidence. Using authority under the Public Service Superannuation Act, the former President requested a Special Actuarial Report on the financial position of the Public Service Pension Fund as of 31 March 2024 to provide such evidence.

On November 25, 2024, the former President of the Treasury Board tabled in Parliament the Special Actuarial Report on the financial position of the Public Service Pension Fund as of 31 March 2024 which confirmed the Public Service Pension Fund to be in a non-permitted surplus position of approximately $1.94 billion and with a funding ratio of approximately 126%.

The announcement generated steady media attention in November and December 2024, as well as reactions from bargaining agent and retiree associations. Bargaining agents positioned the government’s response as “pension theft” and publicly criticized the actions as only being taken to the benefit of the employer and not plan members.

The government is currently considering options for the funds transferred to the Consolidated Revenue Fund and, depending on the scope of the potential actions the government wishes to consider, relevant stakeholders will be engaged, as appropriate.

Transferring the non-permitted surplus to the Consolidated Revenue Fund has no impact on the pension benefits of current or future public service retirees.

The terms and conditions of the public service pension plan are outlined in the Public Service Superannuation Act and its Regulations. The plan is a defined benefit pension plan and it is funded through employer and employee contributions, as well as investment earnings. Plan members receive benefits based on a set formula that considers years of service, salary, and age at retirement. The government has a legislated obligation to make pension payments to retired members based on the established formula and regardless of the funding position of the pension plan.

When a non-permitted surplus exists in the Pension Fund, the Public Service Superannuation Act provides for its reduction through an employer contribution holiday, a full or partial cessation of employee contributions and/or a transfer of funds from the Pension Fund to the Consolidated Revenue Fund. In contrast, when the pension plan is in a deficit position, the government is fully and solely accountable for making the required deficit payments.

All decisions have been taken in accordance with the legislation and the governance structure of the pension plan, which sees the GC bear the full risk and responsibility for funding the pension benefits.

Issue

What is the government doing to deliver on its promise to provide early retirement for frontline safety and security workers?

Response

The GC values the important work of our frontline public service safety and security workers.

We are committed to providing early retirement eligibility for these employees.

This will provide consistency across federal employee groups that support safety and security, recognizing the demanding nature of their day-to-day duties.

Background

The Liberal Party platform committed to “amend the Public Service Superannuation Act to expand early retirement eligibility, also known as ‘25 and out’ for frontline employees including firefighters, paramedics, correctional service employees, border services officers, parliamentary protection officers, and search and rescue.”

The operational service early retirement program allows eligible pension plan members to retire earlier with an immediate unreduced pension. This is commonly referred to as the “25 and out” program. Currently, only certain employees of Correctional Services Canada are eligible for operational service early retirement benefits.

On June 13, 2024, following receipt of a recommendation from the Public Service Pension Advisory Committee, a previous President of the Treasury Board announced the former government’s intention to introduce legislative changes to expand operational service early retirement benefits to front-line employees in certain occupational groups who critically promote and protect the safety and security of Canadians and participate in the federal public service pension plan. These include:

• firefighters (federal and territorial governments)
• paramedics (territorial governments)
• correctional service employees (territorial governments)
• border services officers (federal government)
• parliamentary protection officers (federal government)
• search and rescue technicians (federal government)

On December 16, 2024, the government announced that the required statutory amendments to the Public Service Superannuation Act would be part of the implementing legislation for the 2024 Fall Economic Statement. However, with the dissolution of Parliament on March 23, 2025, the implementation legislation did not proceed.

Issue

Is the government going to require all public servants to return to the office full time?

Response

Working together onsite supports the teamwork, collaboration and culture needed to effectively deliver services to Canadians.

The current hybrid model, which requires public servants to spend the majority of each work week in the office, remains in place.

Background

Following the Clerk of the Privy Council’s June 2022 message encouraging departments to explore hybrid work models, federal organizations began testing various approaches to support service delivery to Canadians. The Chief Human Resources Officer collected data through three questionnaires between fall 2022 and fall 2023, revealing a wide range of hybrid arrangements and a need for greater consistency. In response, TBS introduced the Direction on prescribed presence in the workplace in December 2022, requiring eligible employees to work onsite two to three days per week by March 2023, with time-limited exceptions for certain groups based on specific work models (for example, call centre employees). Further refinements to the Direction were made in May 2024 to increase the minimum onsite presence to three days weekly starting September 2024, with executives expected onsite four days, and previously exempt groups required to comply by September 2025.

Bargaining agents (BAs) have continued to express their dissatisfaction with the May 2024 update to the Direction in a variety of ways, including launching unfair labour practice complaints, grievances and a judicial review of the decision taken by the Chief Human Resources Officer. At the end of January 2025, the three largest BAs (Canadian Association of Professional Employees (CAPE), Professional Institute of the Public Service of Canada (PIPSC) and the Public Service Alliance of Canada (PSAC)) launched a campaign called #RemoteWorks, which encourages all Canadians (not just public servants) to support the message that a one-size-fits-all approach to remote work is ineffective.

The Direction sets out the requirement for deputy heads to implement and monitor a minimum requirement of three days per week in the workplace for all public servants eligible for a hybrid work arrangement. Workplaces vary from one organization to the other. Deputy heads are to use discretion and adapt to their operational requirements. This includes in the application of certain exceptions in a limited set of circumstances, which are explicitly outlined in the Direction, and monitoring compliance within their organizations.

Issue

Following the modernization of the Official Languages Act in 2023, what is the President of the Treasury Board doing to support official languages in Canada?

Response

I am committed to ensuring that the Official Languages Act is implemented and respected across all federal institutions.

We are actively working on new regulations under Part VII of the Act to better support minority language communities, promote the French language, and strengthen opportunities for learning in the minority language.

I look forward to tabling the draft regulations in the near future.

Efforts are also underway to review the language designation of all federal points of service, which will lead to an increase in the number of bilingual offices.

We are also strengthening the use of official languages in the workplace by ensuring that all employees in bilingual regions are supervised in the official language of their choice, and by raising second language proficiency requirements for supervisory roles.

On a personal note, I look forward to improving my ability to work more regularly in both official languages.

If pressed on vacancies of unilingual and bilingual positions

We recognize that vacancy rates for unilingual and bilingual positions can vary across regions. Treasury Board policies require that the language requirements of each position be based on the duties of the role and the bilingual capacity of the work unit.

We continue to support departments and agencies in applying these rules consistently, so that Canadians receive high-quality services in the official language of their choice.

Background

Following the modernization of the Official Languages Act in 2023, the Treasury Board remains responsible for developing and coordinating federal policies and programs related to:

• Communications with and services to the public (Part IV)
• Language of work in federal institutions (Part V)
• Participation of English-speaking and French-speaking Canadians in the federal public service (Part VI)

In addition, the modernized Official Languages Act has given:

• to the President of the Treasury Board the responsibility of assuming an overall leadership role in the implementation, coordination and good governance of the Official Languages Act
• to Treasury Board a strengthened monitoring, auditing and evaluation role for compliance of federal institutions with their official languages responsibilities
• to the Minister of Canadian Heritage the role of developing a government-wide official languages strategy, in consultation with the President of the Treasury Board, and of conducting a 10-year review of the Act and its application

Issue

How is the government addressing members’ concerns regarding international services under the Public Service Health Care Plan?

Response

The GC is committed to seeing that public servants receive the health care services they deserve.

For services within Canada, Canada Life has been meeting the service level requirements since early 2024.

For services outside of Canada, Canada Life continues to work with their subcontractor, MSH International, on an action plan.

MSH is now processing calls and claims within expected service levels, but there is still work to do to improve the quality of out-of-country health services.

We continue to work closely with Canada Life and MSH to resolve the outstanding challenges.

Background

Per the Financial Administration Act, Treasury Board has authority for all aspects of the public service benefit plans. The President of the Treasury Board, as Employer of the Public Service, is responsible for the overall administration of the public service benefit plans.

TBS is the Project Authority responsible for all matters concerning the technical content of the plan administrators’ work. PSPC is the Contract Authority responsible for the contract with the plan administrators. Questions relating to the procurement process, including contract performance and remedies, should be directed to PSPC.

On July 1, 2023, Canada Life began the administration of the Public Service Health Care Plan contract. Canada Life subcontracted MSH International to provide out-of-country coverage for members living, working, or travelling abroad.

Issues arose with the service from MSH International, and a customer service action plan was developed. As a result, average call wait times and claims processing are now within expected service levels.

However, work remains ongoing to ensure the quality of the services continues to improve. MSH has an action plan to continue to improve services with a focus on quality, including expanding the escalation processes to ensure urgent claims are quickly identified and prioritized. Further actions are also being taken to enhance the member experience including improving agent knowledge through education and training, ongoing Member Portal enhancements, applying member feedback and maintaining open and transparent communication about progress with plan members and Global Affairs Canada.

Issue

Why has the number of assistant deputy ministers (EX-04 and EX-05) grown faster than the number of classified positions at those levels, resulting in overages?

Response

Public service executives led large and urgent efforts to support Canadians during the pandemic and played an important leadership role in advancing government priorities.

This led to an increase in senior executive positions, some of which extend beyond departments’ ongoing requirements and established organizational structures.

My department is now working with deputy heads to stabilize this situation and prevent further growth of the assistant deputy minister community.

The goal is a sustainable executive structure that delivers strong leadership capacity to serve Canadians effectively.

Background

Classification is how the federal public service evaluates and assigns a level to a job based on the work performed, its responsibilities, and its impact. For executive jobs, including assistant deputy ministers, this is done using the Executive Group Job Evaluation Standard. Proper classification ensures that:

• jobs are aligned with the organization’s mandate and size
• responsibilities are clearly defined and matched to the right level
• employees are compensated according to the level and nature of the work they are performing
• structures are efficient, avoid unnecessary layers, and support accountability

Classification of assistant deputy minister–level positions is important because of the effect on their subordinate structure (the roles that report to them). Without appropriate classification, organizations risk creating positions that are not at the right level, with responsibilities that are unclear or that overlap with other roles, leading to inefficiencies, unclear accountabilities, and increased costs.

Public service executives led departmental efforts to support Canadians during the pandemic and played an important leadership role in advancing government priorities. This led to a spike in senior executive positions, some of which extend beyond departments’ ongoing requirements and established organizational structures.

In July 2025, there were 59 more substantive EX-04 and EX-05 executives than permanent positions at these levels. This overage is being driven by overreliance on special deployments and multiple banked positions (when multiple individuals are appointed to a single position).

TBS is working with organizations to stabilize the ADM overage situation and prevent further growth through temporary oversight of EX-04 and EX-05 staffing decisions. As of September 17, 2025, the overage has been reduced to 47.

Corrective measures will be determined by each deputy head, working within the requirements of TBS classification policy instruments. Possible actions could include reclassifying positions to the correct level, expanding the scope of responsibilities where appropriate, and only using situations where two people hold the same position in rare, specific cases, for example, when preparing for an upcoming departure. Deputy heads are responsible for identifying any non‑compliance and taking the necessary steps to align with policies and standards of the core public administration. TBS monitors and provides advice to support deputy heads in meeting these obligations.

Issue

What actions has the government taken in response to procurement issues uncovered through the ArriveCAN case and other situations where procurement rules were broken?

Response

The use of professional services is a normal part of government operations.

Like all spending, the use of professional services must be sensible, well managed and directed to priorities that provide value for Canadians.

Very little of what the government spends goes to management consultants. Most is for specialized expertise and capacity needed to advance key priorities.

For example, the government uses contracting to hire construction firms to build and maintain various assets, to secure nurses for health care in the north, and to manage contaminated sites across the country.

If pressed on IT contracting

While contracting for IT services is sometimes necessary, we are focused on building our own digital workforce.

Through our digital talent strategy, we are investing in skills development and training so the federal public service has the in-house talent needed to deliver secure and efficient digital services.

If pressed on measures being taken to improve procurement

To strengthen procurement oversight, the government has:

• updated the manager’s guide and introduced new mandatory procedures for procuring professional services
• published the Directive on Digital Talent to support the development of a robust internal digital workforce, establishing reasonable thresholds for departments to ascertain whether qualified talent is available before contracting out
• completed a horizontal audit to evaluate governance, decision-making, and contracting controls. The audit found that we have processes in place to manage and oversee procurement, in compliance with roles, responsibilities and accountabilities
• developed a new Risk and Compliance Process to assess controls and risk in procurement and other key administrative areas, which was launched in June 2025

Background

Government spending on external professional services – this is a broad type of services, including, but not limited to health and welfare, engineering and architectural services, scientific services and management consulting – increased by $2.0 billion (14%) in 2023–24 when compared to fiscal 2022–23. 65% of departments have increased their external professional services in fiscal 2023–24 which is consistent with prior year, and the year-over-year variance or “growth rate” of 14% for the GC is higher than the average increase for the past four years (9.7%).

While absolute procurement spending has increased, the proportion of spending on external professional services has decreased slightly when compared to overall adjusted gross expenditures of the past 10 years (9.7% compared to an average of 11.6%). Specifically, total departmental external professional services in 2014 was 11.1% of gross external expenditures excluding transfer payments and public debt charges as compared to 12.4% in 2023. Through those years, the range was from 10.6% (2021) to 11.8% (2016 and 2017).

TBS and PSPC published the results of their review of contracts with McKinsey & Company in June 2023. The independent audits conducted as part of the review found no evidence of political interference in the contracts awarded to McKinsey. The review also found that certain administrative requirements and procedures were not consistently followed. TBS has since implemented several measures to address these findings. This includes amendments made in June 2023 to the Directive on the Management of Procurement and the Guide to the Proactive Publication of Contracts to increase transparency and strengthen risk-based systems of internal control and documentation requirements. ​

There have been serious questions raised regarding the integrity of the federal procurement system, including the practices of certain suppliers to the GC. Recent and ongoing audits (including by the Office of the Auditor General, Indigenous Services Canada, and departmental internal auditors), practice reviews (by the Procurement Ombud), investigations (including by internal departmental investigators, the Privacy Commissioner, and the Royal Canadian Mounted Police) and studies by parliamentary committees concerning the use of professional services have consistently identified gaps in contracting practices and documentation.

In their reports, the Auditor General of Canada and the Procurement Ombud confirmed there are clear rules in place to ensure sound procurement management practices across government, but more can be done. In response, TBS and PSPC announced a series of new measures on March 20, 2024, to strengthen management and oversight of government procurement. This includes undertaking a horizontal audit of professional services contracts governance (complete), updating the Manager’s Guide on procuring professional services (complete), and new mandatory procedures on procuring professional services (compete). TBS and PSPC are continuing to explore and action procurement modernization efforts with the intent to strengthen procurement and management practices.

While contracting is a normal and acceptable delivery strategy, the Government of Canada Digital Talent Strategy supports skills development and training for the federal public service’s digital and IT community and helps ensure it has the in-house digital talent and leadership needed to build, deliver, and maintain simple, secure, and efficient digital services and programs.

Issue

A June 2025 Auditor General Report has concluded that government contracts with GC Strategies and the payments made to it were not in accordance with applicable policy instruments and that value for money for these contracts was not obtained. The Auditor General was also critical of three instances in which TBS used services without a contract in place. What is the government doing to fix this situation?

Response

The government has stringent requirements for procurements so they are conducted in a fair, open and transparent manner.

The Auditor General has been clear that procurement rules are in place but have not been consistently followed.

Efforts have been taken or are underway to strengthen compliance with procurement rules, including:

• producing a manager’s guide with mandatory procedures for procuring professional services,
• launching a new Risk and Compliance Process which will help departments assess compliance in various areas of management, including procurement

If pressed on recommendations

While the Auditor General did not provide any recommendations for TBS in her most recent report, my department has implemented corrective measures to respond to previous recommendations.

Background

The Office of the Auditor General (OAG) Audit on Professional Services Contracts (GC Strategies) was tabled in the House of Commons on June 10, 2025.

It focused on whether professional services contracts awarded and payments made by federal organizations to GC Strategies and other companies incorporated by its co-founders were in accordance with applicable policy instruments and whether value for money for these contracts was obtained.

From April 2015 through March 2024, federal organizations awarded 106 professional services contracts to GC Strategies, with a maximum value of $92.7 million, of which $64.5 million was ultimately paid out.

The report was critical of three instances in which TBS used confirming orders to pay for services (valued at less than $100,000) where resources worked without a contract in place. While the total value of these contracts was relatively low, TBS has since taken measures to ensure these situations do not reoccur.

The audit concluded that these professional services contracts and the payments made were not in accordance with applicable policy instruments and that value for money for these contracts was not obtained.

No recommendations were issued as part of this audit report, but the OAG encouraged federal organizations to implement the recommendations from other procurement audits recently completed, including the Horizontal Audit conducted by the Office of the Comptroller General.

PSPC and TBS continue to work in close collaboration with client departments and agencies to address the gaps identified in previous audits related to professional services contracting, including improving data collection, increasing transparency in procurement decisions, clarifying roles and responsibilities and strengthening oversight and accountability in procurement activities.

These changes will help strengthen the federal procurement process, improve the way the government does business with suppliers and ensure best value for Canadian taxpayers.

The OAG appeared at the Standing Committee on Public Accounts (PACP) regarding this report on June 19, 2025. TBS officials may be called to appear at PACP during the fall regarding this audit.

Issue

A June 2025 Auditor General Report found that TBS’s ability to provide leadership and coordination for the federal real property portfolio was reduced after TBS’s Centre for Expertise for Real Property was dissolved. The Auditor General also found that with the increased presence of government employees in the workplace announced by TBS in May 2024, PSPC lost most of its flexibility to achieve its plan to reduce the government’s use of office space by 50% over 10 years. What will TBS do to re-establish its leadership and finish implementing the recommendations of the Horizontal Fixed Asset Review?

Response

The government is committed to sound management of its real property.

The Auditor General report acknowledges that good progress was made in real property management by TBS’s Centre of Expertise and recommended that we assess our capacity to resume its work.

While funding expired in 2024 and the Centre was wound down, TBS continues to provide guidance and support to federal organizations.

This year, we will also review and prioritize additional work that could be undertaken, taking into consideration feedback from the real property community.

Background

This audit explored the government’s current and future use of its office portfolio, including the use of surplus assets to support investments in housing. The audit scoped in PSPC, Housing Infrastructure and Communities Canada, Canada Mortgage and Housing Corporation and TBS. TBS’s role included the sunsetted Centre of Expertise for Real Property, which was part of the Office of the Comptroller General from 2021 to 2024, as well as the Office of the Chief Human Resources Officer and the Direction on Prescribed Presence in the Workplace.

The OAG audit found that TBS’s ability to provide leadership and coordination for the federal real property portfolio was reduced after TBS’s Centre for Expertise for Real Property was dissolved. The Centre had been established in 2021 with time-limited funding to help ensure that the federal real property portfolio would be modern, agile and right-sized. The Centre wound down in 2024 when the funding sunsetted.

Further to this finding, the report recommended that TBS should assess its capacity and resources and, as appropriate, resume the work of the former Centre of Expertise for Real Property to enhance the management of federal real property.

TBS agreed with the recommendation. In response, TBS indicated that it, through the Office of the Comptroller General, supports the overall improvement of the management of federal real property as part of its core mandate. These core activities, which include delivering guidance and training, and supporting interdepartmental governance, provide leadership to the real property community and support the management of real property across the government.

TBS’s ability to provide hands-on support to custodians and leadership in implementing the 119 recommendations from the Horizontal Fixed Asset Review (FAR) diminished upon the dissolution of the Centre of Expertise for Real Property, as that had been its mandate.

In 2025-2026, TBS will review and prioritize the outstanding FAR recommendations, taking into consideration feedback from the real property community. Following this review, TBS will consider options to address the identified priorities, including exploring funding strategies and identifying what can be delivered with existing resources.

The report also referred to TBS in a finding that more work is needed to reach PSPC’s 10-year plan to reduce government office space by 50%. In particular, the report found that with the increased presence of government employees in the workplace announced by TBS in May 2024, most of the built-in flexibility was lost in PSPC’s office space reduction plan.

In response to a recommendation, PSPC agreed that it would work with central agencies and other departments to explore with federal tenants how to reduce the office space they occupy.

Issue

What is the GC doing to advance regulatory cooperation within Canada and with our international trading partners?

The government is working with provinces and territories to unleash free trade across Canada, cut red tape and unlock economic potential.

In June, the government passed the Free Trade and Labour Mobility in Canada Act, paving the way for Canadians to work and conduct business freely without federal barriers in their way.

We’re working on a Mutual Recognition Agreement (MRA) with provinces and territories that will allow a wide range of products approved for sale in one jurisdiction to be automatically approved in all others.

Canada is also deepening global partnerships to diversify trade, align regulations, and break down barriers.

Background

Issue

What is the GC doing to address concerns about red tape?

The GC is committed to cutting red tape.

On July 9, I launched a 60-day review of regulations. Delivering on this review, on September 8, ministers published progress reports, marking a major step forward in eliminating red tape.

More than 30 progress reports were published, identifying nearly 500 initiatives aimed at streamlining services, eliminating duplication and reducing costs for Canadians.

For example, these initiatives will:

• introduce new medications for Canadians more quickly
• speed up decision-making and processes in economic sectors, such as transportation and agriculture
• support more efficient reviews of projects to drive economic growth

The publication of these reports is an important milestone, but it marks the start of a journey. Going forward, TBS’s Red Tape Reduction Office will engage with regulators and stakeholders to deliver initiatives that eliminate unnecessary rules and reduce costs.

Background

Issue

How is the GC advancing its responsible artificial intelligence (AI) adoption to improve how it serves Canadians, accelerates scientific research, and protects Canadian security and interests?

Response

The government is committed to taking advantage of to increase productivity and efficiency.

This work is being guided by the AI Strategy for the Federal Public Service.

The objective of the strategy is to accelerate responsible AI adoption to deliver better services for Canadians and businesses and enhance the work of public servants.

The strategy was developed through extensive consultations with experts and the public. It will be renewed every two years to ensure it remains relevant and responsive to technological advances.

In the coming months, an implementation plan will be published to propel this work forward.

Background

The AI Strategy for the Federal Public Service, published in March 2025, is intended to accelerate the responsible adoption of AI across the GC to deliver better and more efficient services to Canadians, improve decision-making, advance research, and protect Canada and its interests.

TBS broadly engaged stakeholders, partners and the public to develop the strategy, publishing a What We Heard Report in January 2025. Participants agreed that AI should be used to modernize and streamline service delivery.

The strategy sets out key actions to advance responsible AI adoption within the GC. Some that contribute directly to public service modernization include:

• establishing an AI centre of expertise to support teams developing and scaling AI tools
• removing policy and legislative barriers and bedding a “think AI” approach within all planning and funding requests
• providing all departments with common access to infrastructure, tools, and solutions
• addressing obstacles to recruiting and retaining AI and data talent and upskilling current public servants at all levels to work with AI
• outlining key activities for new and emerging digital roles and linking them to learning programs and paths to build future-ready digital professionals and teams

While AI use in the GC is not new, current and significant modernization projects are underway across the GC that leverage AI to drive better service both internal and external to the public service. Examples include:

• The Benefits Delivery Modernization program (Employment and Social Development Canada) is using AI to address:
  • workloads and backlogs for Employment Insurance claim recalculations
  • identifying potential cases of misuse or abuse of the Old Age Security program and fraud in temporary resident applications
• Immigration, Refugees and Citizenship Canada is using AI to:
  • complete administrative tasks for immigration applications, such as data matching and bulk email creation
  • streamline the processing of routine, low-risk cases for temporary work permits, passports, and temporary residency applications
• Inside the public service, PSPC is using AI to provide a translation tool for public servants. The tool will ensure the workforce has access to protected and on-demand translation tools which will result in operational efficiencies.

Issue

What is the government doing to protect itself and the information of Canadians from cyber attacks?

Response

The GC, like all organizations, faces constant cyber threats.

Canadians can rest assured that we have robust safeguards in place to protect their information, our systems and our ability to deliver secure and reliable digital services.

Cyber security protections continuously monitor, detect and investigate potential threats so that active measures can be taken to neutralize them.

As well, the Government of Canada’s Enterprise Cyber Security Strategy, published last spring, is helping to further strengthen the government’s ability to effectively combat cyber threats and remediate vulnerabilities.

Background

The government works continuously to enhance cyber security in its services by preventing attacks through implementation of protective security measures, identifying cyber threats and vulnerabilities, and by preparing for and responding to all kinds of cyber incidents to better protect Canada and Canadians.

Cyber security is a shared responsibility across government. Departments and agencies have a responsibility to ensure that cyber security is managed within their organization, including the cyber security of departmental programs and services. TBS, Shared Services Canada (SSC) and Communications Security Establishment Canada (CSE) are the primary stakeholders with responsibility for ensuring the government’s cyber security posture is effective and able to respond to evolving threats. CSE, in concert with Public Safety Canada, also provides support on cyber security from a national perspective. TBS provides policy leadership, advice and guidance for all matters related to government security, establishes and oversees a whole-of-government approach to security, and provides strategic oversight of government cyber security event management to ensure effective coordination of major security events and support government-wide decision-making. The Chief Information Officer of Canada sets information technology security policy, defines cyber security requirements, and executes decisions on the management of cyber security risks on behalf of the GC.

Over the past decade, the government has taken incremental steps to improve its cyber security posture by standardizing IT infrastructure and integrating cyber defence services, establishing the Canadian Centre for Cyber Security, and putting in place clear governance, policies, and tools to support cyber security.

In November 2024, TBS launched mandatory cyber security awareness training for all employees of the core public administration, which aims to establish a consistent level of foundational cyber security knowledge across departments.

Despite this progress, gaps still remain. The Government of Canada’s Enterprise Cyber Security Strategy aims to address these gaps and ensure the government is well positioned to address future cyber threats. It is a forward-looking plan that will serve as a framework to move the government even more from a defensive position to a proactive cyber security approach. Budget 2024 provided $11.1 million over three years, starting in 2024-25 with no ongoing funding, for TBS to support implementation of a whole-of-government cyber security strategy. Specifically, funding supports key actions including:

• establishing a centralized evaluation system with independent assessments and thorough reviews of departments’ cybersecurity to identify and prioritize risks
• creating a federated integrated risk management platform to enable prioritization and data-driven reporting as a key part of a broader enterprise portfolio management system
• creating a government-wide vulnerability management program for a coordinated vulnerability disclosure process and will focus on people, processes, policies, and technology
• forming a new team that conducts active, strategic oversight of policy compliance and cyber hygiene by emulating techniques used by threat actors against government systems; this proactively tests and audits the systems for any security gaps and recommends strategies to resolve them. This type of team did not previously exist in the government

TBS has completed a policy review that identifies recommendations on strengthening the Office of the Chief Information Officer’s authorities to enhance enterprise-wide cyber security. Currently, not all federal organizations, for example, Crown corporations, are subject to Treasury Board cyber security requirements under the Policy on Government Security and the Policy on Service and Digital. To improve cyber security external to the GC, in February 2025, Public Safety Canada published the Canada’s National Cyber Security Strategy (NCSS). The new NCSS focuses on whole-of-society engagement that include partnerships with other levels of government, law enforcement, Indigenous communities, the private sector, academia and civil society. The NCSS includes three pillars:

• working with partners to protect Canadians and Canadian businesses from cyber threats, for instance, through public-private partnerships to address national-level cyber security challenges, policy priorities, and cyber operations via the new Canadian Cyber Defence Collective
• making Canada a global cyber security leader through initiatives such as the Canadian Cyber Security Certification program which will enhance cyber security in the defence sector
• detecting and disrupting cyber threat actors including strengthening partnerships with owners of critical energy infrastructure

TBS and Public Safety Canada also have responsibilities related to cyber security event management. TBS maintains the Government of Canada Cyber Security Event Management Plan (GC CSEMP). The GC CSEMP is the whole-of-government incident response plan providing an operational framework which outlines the stakeholders and actions required to ensure that cyber security events are addressed in a consistent, coordinated, and timely fashion across the government. The plan is applicable to all departments subject to the Policy on Government Security. To ensure that the GC CSEMP is up to date and effective, the plan is tested regularly, reviewed on an annual basis, and updated if changes are warranted, for example, in light of lessons learned from cyber events. The latest version of GC CSEMP was published in October 2023. The most recent cyber simulation took place in May 2025 as part of the government’s executive level cyber simulation exercises designed to test how the GC responds to a significant cyber event impacting multiple GC departments.

PS maintains the Federal Cyber Incident Response Plan (FCIRP) which is the incident response plan for ensuring the effective GC coordination of cyber security events or incidents affecting non-GC systems.

In response to cyber incidents affecting the GC, in August 2024, TBS issued the Improving Cyber Security Health: Security Policy Implementation Notice to reinforce specific requirements under the Policy on Government Security and the Policy on Service and Digital. TBS is monitoring progress on departmental compliance within the 3-6-9-month requirements.

In July 2025, a GC CSEMP Level 2 was stood up in response to the zero-day vulnerability affecting on-premises Microsoft SharePoint servers. TBS, in collaboration with the Canadian Centre for Cyber Security, held regular meetings to ensure that departments and agencies were taking proactive steps to implement remediation measures to reduce the risk to the GC systems. In addition, Public Safety Canada also stood up an FCIRP Level 3 to ensure situational awareness and a coordinated approach for non-GC systems.

Cyber incidents have also impacted services contracted out by the government. Compromises within the supply chain have an impact on the GC and introduce operational risks when third-party services are used. Managing cyber security risks in supply chains requires ensuring the integrity, security, quality and resilience of the supply chain and its products and services. TBS, SSC and CSE are working together to strengthen supply chain risk management within the GC through updated supply chain integrity review processes integrated earlier within acquisitions that include robust security contract clauses, establishing a diversification strategy, and strengthening governance.

Issue

What steps is the President of the Treasury Board taking to strengthen coordination and ensure federal departments are better equipped to respond to cyber threats?

Response

We welcome the Auditor General’s findings and, together with our partners, have developed a clear action plan to strengthen Canada’s cyber defences.

We’re working to improve coordination across departments during cyber incidents, so that critical information can be shared quickly and responses can be more effective.

We’re accelerating efforts to ensure federal organizations deploy cyber defence sensors and address vulnerabilities in their systems.

Through the Government of Canada’s Enterprise Cyber Security Strategy, we’re driving a more unified, proactive approach to cyber security that improves visibility, strengthens governance, and enhances our ability to respond to threats.

Background

The OAG tabled its report on the Cyber Security of Government Networks and Systems on October 21, 2025.

The objective of the performance audit was to determine whether TBS, CSE and SSC, had the governance and tools in place to protect and defend government networks and systems against cyber-threats in a coordinated manner.

The audit concluded that:

• a strategy and governance structure were in place to manage cybersecurity, but better coordination is needed in responding to major cyber attacks
• cyber defence tools and services were made available to protect federal organizations, but risks existed due to some federal organizations that were not using them.
• there is a lack of tools to address all aspects of dealing with cyber attacks and responses to them as reflected by:
  • a gap in visibility on cyber security events occurring on the government’s networks and systems
  • no complete inventory and no tool to view the government’s IT assets that were at risk of cyber attacks
  • no central tool to communicate, track, monitor and document cyber attacks

Among the audit’s five recommendations, two recommendations have been directed to TBS and its partners:

• TBS, in consultation with CSE, should ensure that federal organizations:
  • implement cyber defence sensors on all of its IT endpoint devices so that their associated vulnerabilities can be identified
  • remediate vulnerabilities in a timely manner
• TBS, CSE and SSC should re-evaluate their cyber security incident management practices and protocols to enable better coordination and timely access to required critical information when responding to cyber security incidents affecting federal organizations

The remaining recommendations were directed to TBS’s partners:

• SSC, in collaboration with CSE, should develop a clear action plan with defined criteria and a timeline to develop a Security Information and Event Management application that addresses the existing gaps in cyber security monitoring
• SSC should:
  • ensure that it has an up-top-date inventory of networks and systems across federal organizations it services, and a process to manage devices that need to be patched, updated, maintained or replaced
  • determine a solution to resolve the challenges facing the Endpoint Visibility, Awareness, and Security project
• CSE should finalize its funding request and prioritize its work to develop and implement a cyber security event collaboration platform and incident case management tool to enable support for centralized information sharing of cyber events that is accessible by TBS, SSC and other federal organizations

The work demonstrates the importance and relevance of the Government of Canada’s Enterprise Cyber Security Strategy as published in May 2024. The strategy represents a significant step towards safeguarding government information and assets from increasing cyber threats. This strategy is a proactive, risk-based approach developed by TBS, in collaboration with CSE and SSC and outlines a vision and plan for the cyber security of government of operations. It aims to improve collaboration among departments and enhance overall cyber security across the government.

Overall, TBS has confirmed its acceptance of the OAG’s recommendations, in concert with partners. A management response has been developed to respond to the recommendations. In addition, an action plan has been developed that outlines actions and deliverables to address the recommendations. The action plan outlines that:

• TBS, in consultation with CSE, will work with federal organizations to ensure that cyber defence sensors are implemented on all IT endpoint devices so that their associated vulnerabilities can be identified and remediated in a timely manner. This includes:
  • leveraging the endpoint visibility and awareness (EVA) capability that will be available as part of SSC’s Endpoint Visibility, Awareness and Security initiative, which will enable the GC to identify assets that do not have cyber defence sensors deployed
  • as part of the GC Enterprise Vulnerability Management Program, TBS, in collaboration with SSC and the Canadian Centre for Cyber Security will work with departments to identify, assess and prioritize the remediation of vulnerabilities on IT endpoint devices following a risk-based approach
  • establishment of a Federated Asset Inventory of GC Applications and Systems (pending funding)
• TBS, CSE and SSC will re-evaluate their cyber security incident management practices and protocols to enable better coordination and timely sharing of required critical information when responding to cyber attacks affecting federal organizations. This includes:
  • testing the GC CSEMP via a cyber simulation exercise to ensure its effectiveness. Following the completion of a cyber simulation exercise, TBS will update and publish the GC CSEMP no later than the end of fiscal year 2025–26
  • establishment of a GC-wide cyber security event collaboration platform and incident case management tool will enable seamless collaboration when managing GC response to cyber events. TBS will support CSE who is lead for the development and implementation of a cyber security event management platform and tool

Progress on implementing the actions to address the OAG recommendations will be provided in due course.

Issue

What is being done to improve transparency through access to information?

Response

Transparency is a fundamental principal of democracy, and an area where more can and must be done.

The 2025 review of the Access to Information Act is underway.

Stakeholders and Indigenous partners will be able to make their voices heard on opportunities for improvement in the upcoming weeks and months.

At the same time, we continue to advance other initiatives to enhance access to information such as modernizing systems and tools, including exploring the use of artificial intelligence, so departments can respond more efficiently to requests.

Background

The GC is committed to the core principles of transparency, accountability and participation, which are integral to a healthy, functioning democracy, and to maintaining public trust.

In line with the government’s commitment to transparency, the 2024 federal budget proposed $84 million in funding for TBS and LAC to maintain the access to information and privacy (ATIP) regime and expedite requests. Some funding for TBS and LAC will be devoted specifically to advance the work on declassification and disclosure and support other key actions.

On May 29, 2024, the President of the Treasury Board announced the publication of the Government of Canada Trust and Transparency Strategy, which sets out a whole-of-government blueprint to strengthen public trust in federal institutions.

The Government of Canada Trust and Transparency Strategy is made up of two key pillars: the Access to Information Modernization Action Plan (ATI MAP) and the National Action Plan on Open Government:

Issue

What is the government doing to green its operations?

Response

We are committed to government operations that are net zero, climate resilient and green.

The Greening Government Strategy establishes the GC’s targets and commitments to get to net-zero and green operations by 2050 and enhance the climate resilience of its operations by 2035.

Our efforts have resulted in positive results. As of 2023-24:

• 83% of the applicable light-duty vehicles purchased by the federal government were green
• greenhouse gas emissions from our real property and conventional vehicle fleet were reduced by 42% compared to 2005 levels

TBS will continue to work with departments and Crown corporations to meet our targets and attain net-zero emissions in government operations by 2050.

If pressed (electric vehicle mandate)

The GC remains committed to supporting the transition to cleaner transportation. Greening our fleet is a key part of our strategy, and we will continue to lead by example.

Background

As the owner and manager of the largest fixed asset portfolio in Canada (over 30,000 buildings; 20,000 engineered assets, such as bridges and dams; and over 40,000 vehicles), the GC has a critical role to play in meeting Canada’s climate objectives.

With over $40 billion in annual procurement, the government is the largest public buyer in Canada and is well positioned to leverage its procurement power to stimulate market demand for low carbon products from Canada’s emerging clean technology sector.

The GC is transitioning to net-zero emissions and climate-resilient operations, while also reducing environmental impacts beyond carbon, including reductions in waste and water use and improvements to biodiversity.

The Greening Government Strategy: A Government of Canada Directive specifies greening government commitments for:

• government-owned buildings
• government-owned fleet
• government procurement
• climate resilience (adaptation)

The strategy was created in 2017 and updated in 2020 and 2024.

The Centre for Greening Government supports TBS’s mandate by:

• providing strategic advice to other federal departments and agencies regarding net-zero emissions, climate resilient and green operations through:
  • providing practical guidance and tools for net-zero, resilient and green real property, fleet and procurement
  • convening interdepartmental working groups and external stakeholder communities of practice to share expertise, successes, and best practices among departments
• tracking and publicly disclosing government environmental performance information, including greenhouse gas emission reductions for federal operations
• administering the Greening Government Fund to reduce emissions and support projects that can be replicated within and across departments
• administering the Low-Carbon Fuel Procurement Program
• working with PSPC on common procurement tools that incorporate greening criteria

Issue

Regarding the effective management of public funds, how is the government addressing concerns relating to transparency, accountability and timing of the Public Accounts of Canada?

Response

We plan to table the Public Accounts in the coming weeks, well in advance of the legislated tabling deadline of December 31.

Background

Issue

What is the Risk and Compliance Process?

Response

Canadians expect departments to be well managed.

Deputy ministers are responsible for delivering on this expectation. They are accountable for making sure their departments follow applicable rules and policies, such as those relating to procurement.

The Risk and Compliance Process helps deputy heads verify they have the controls and practices in place to meet their accountabilities, and to effectively manage risks within their organizations.

Each year, departments must complete a self-assessment to review how they’re managing key areas like financial management, procurement, and technology.

Deputy heads formally attest to their assessments and outline how they plan to address any gaps identified.

Starting in 2026, a summary of each department’s results and any follow-up actions, will appear in their Departmental Results Reports, and TBS will publish an annual report highlighting government-wide trends.

Background

On March 20, 2024, the then President of the Treasury Board announced a series of actions and commitments to strengthen and streamline oversight of federal government management practices.

One of the actions was the introduction of a new Risk and Compliance Process, which was officially launched on June 12, 2025.

The main objectives of the Risk and Compliance Process are to:

• help deputy heads verify they have controls and practices in place to meet their accountabilities under legislation and Treasury Board policy and to effectively manage risks within their organizations
• serve as an additional tool to help TBS maintain the effectiveness of its policy suite

The Risk and Compliance Process is an annual process that requires 68 organizations to complete a self-assessment of compliance and performance in up to 11 areas of administration and a self-assessment of risk. Deputy heads are responsible for attesting to their self-assessments and taking action to address non-compliance, poor performance or unacceptable levels of risk.

A summary of each organization’s Risk and Compliance Process results, and any actions taken in response will be included in their annual Departmental Results Report. In addition, TBS will annually publish a report presenting key government-wide Risk and Compliance Process findings.

The Risk and Compliance Process replaces the Management Accountability Framework, which had been TBS’s annual process to monitor the management performance of federal organizations since 2003.