President of the Treasury Board Appearance at the Standing Committee on Government Operations and Estimates (OGGO) - Main Estimates 2026-27

Issue

Can you provide an update on the Comprehensive Expenditure Review?

Response

The Government of Canada is committed to spending less on government operations to invest more in our country and grow our economy.

Budget 2025 introduced long-term savings through the Comprehensive Expenditure Review, with reductions beginning in 2026–27 to ensure fiscal sustainability.

The review will achieve savings of $9 billion in 2026–27, $10 billion in 2027–28 and $13 billion in 2028–29.

Savings are coming from programs and activities that were underperforming, not core to the federal mandate, duplicative or misaligned with priorities.

If pressed on impacts on Canadians:

The Comprehensive Expenditure Review required the government to make challenging but responsible choices to ensure that spending is cost-effective and delivers results for Canadians.

Savings are drawn from efficiencies as well as programs and activities that are no longer needed or aligned with the federal mandate.

If pressed on job loss:

The Comprehensive Expenditure Review will reduce the public service by 16,000 full-time equivalents by 2028–29, bringing the size of the public service to roughly 330,000.

To manage reductions to the greatest extent possible through voluntary departures, an Early Retirement Incentive program has been recently launched through the Public Service Pension Plan.

Questions and answers

Q. The Deputy Minister of Finance has said that the Comprehensive Expenditure Review will have no impact on reducing the deficit. What’s the point of this exercise?

A. The objective of the Comprehensive Expenditure Review is to ensure that public funds and the government activities they support are directed toward priorities that matter most to Canadians and our country.

Each organization was responsible for identifying savings from programs and activities that were underperforming, not core to the federal mandate, duplicative or misaligned with government priorities. These savings are being reinvested in priority areas that are strengthening Canada, such as the Armed Forces, the economy, and important programs and supports that Canadians need.

Background

On July 7, 2025, the President of the Treasury Board and the Minister of Finance launched the Comprehensive Expenditure Review (CER) 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).

Organizations were 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 (GTGE) was responsible for reviewing department proposals and for making recommendations to the Prime Minister.

Savings across departments and programs vary, reflecting the need to protect the important mandates that some organizations have in delivering front-line services, social programs, and priorities such as defence and security.

• National Defence, the Royal Canadian Mounted Police (RCMP) and the Canada Border Services Agency’s annual savings target was set at 2% of the review base. Given their essential role in keeping our country safe, this approach is also being taken with the Canadian Security Intelligence Service and Communications Security Establishment Canada.
• A resilient Canadian economy needs to advance research and attract and retain the top research talent to supercharge our growth. Recognizing this priority, the targets of the Natural Sciences and Engineering Research Council, the Social Sciences and Humanities Research Council and the Canadian Institutes of Health Research are also being set at 2% to protect the councils’ important contributions in improving our global competitiveness and contributing to the economy of the future.
• The Department for Women and Gender Equality (WAGE) empowers women and 2SLGBTQI+ people through programs to eliminate discrimination and advance the rights of women and 2SLGBTQI+ communities. To support WAGE in continuing this critical work, its annual savings target is being set at 2% of its review base.
• The government remains committed to reconciliation. Crown-Indigenous Relations and Northern Affairs Canada and Indigenous Services Canada deliver important programs that are legally or constitutionally required, including child and family services, primary health care, and essential community infrastructure. To protect these important programs, the annual savings target for these organizations was set at 2% of their respective review base.

Budget 2025 includes high-level information about the proposed savings measures (Chapter 5) as well as more detailed information on planned reductions by organization (Annex 3).

The Main Estimates also reflect savings approved under the government’s Comprehensive Expenditure Review. Departmental Plans also provide additional details on the review.

The Treasury Board of Canada Secretariat’s (TBS’s) Departmental Plan notes that to meet the savings requirements of the Comprehensive Expenditure Review, TBS will be reducing its spending by $57.8 million by 2028–29. It will achieve these savings by winding down temporary programs and initiatives, streamlining work, and focusing on priorities that strengthen the public service.

Issue

What is included in the Main Estimates 2026–27 for TBS and for the government as a whole?

Response

Each year, the government seeks Parliament’s approval for planned spending and provides Canadians with information through the Estimates process.

The 2026–27 Main Estimates outline $502.8 billion planned in budgetary spending.

This includes $300 billion in transfer payments, which help build a stronger and more resilient Canada. This funding supports priorities such as elderly benefits, the Canada Health Transfer, infrastructure projects, and fiscal equalization across provinces and territories.

The Estimates also include over $48 billion to support National Defence. These investments support modern equipment, training and cooperation with international partners, helping keep Canadians safe and contributing to global stability.

If pressed on spending for TBS:

My department is seeking $11.8 billion in the Main Estimates. The vast majority of this amount is for government-wide costs, such as public service insurance and government contingencies.

The Main Estimates also include $1 billion for central Vote 50, which gives government flexibility to respond quickly to unforeseen defence and security pressures.

TBS’s operating budget for 2026–27 includes a reduction of $28.9 million as a result of the Comprehensive Expenditure Review. TBS’s annual savings will reach $57.8 million annually by 2028–29.

Questions and answers

Q. Budget 2025 announced savings of $9 billion in 2026–27, yet these Main Estimates are much higher than last year. How is this possible?

A. Through the Comprehensive Expenditure Review, savings have been identified so that we can invest in areas that matter most to Canada and Canadians. This isn’t about cutting; it’s about making deliberate decisions to reallocate funds from lower priorities to higher ones. To that end, we are making significant investments to meet this pivotal moment.

There has been a rise in planned spending on various priorities, notably increases in defence planned spending to reach Canada’s NATO targets, transfers to provinces for health care and social programs, and benefits to individuals such as elderly benefits to meet the growing needs of Canada’s population.

Q. What is the new Central Vote 50 and how does it work?

A. Treasury Board Central Vote 50 is for government contingencies specifically related to defence and security spending.

The new central vote operates in a similar fashion to Treasury Board Central Vote 5 (Treasury Board Vote 5). Central Vote 50 provides authorities that are urgently required before the next supply process is completed. Authority to access the funds requires Treasury Board approval, and allocations from this fund are published in the next Supplementary Estimates or year-end reporting for transparency.

Both National Defence and other federal organizations involved in defence and security can access the vote.

Q. How will Parliament review proposed spending against this vote?

A. All allocations from this fund will be published online. Interim reports will be published at the same time as Supplementary Estimates and in a final report for the year published in the fall. Allocations from the vote will also be shown in Public Accounts. Through the Main Estimates process, Parliament will have the opportunity to review and approve Vote 50 annually.

Q. Has Vote 50 been accessed by departments since your last appearance?

A. $1 billion was included in Supplementary Estimates (C), 2025–26 for Treasury Board Central Vote 50 – Defence and Security Initiatives. Up until April 29, 2026, $944.4 million has been allocated to two organizations. Details of these 2025–26 allocations will be publicly reported alongside the Supplementary Estimates (A).

$24.4 million was allocated to Communications Security Establishment Canada for software licences to enhance the capacity of its digital infrastructure.

$920 million was allocated for National Defence for:

• weapons and radar systems for the River-class destroyers
• Halifax Gate, a 475-acre site on the waterfront of the Eastern Passage of Halifax Harbour, which will support the movement of personnel, supplies and ships
• the Integrated Underwater Surveillance System, which contributes to the defence of Canadian maritime approaches by detecting, classifying and tracking underwater threats
• the Long-Range Precision Strike (Land) system, which will provide missile defence capability

As of April 29, 2026, no funding has been allocated from the 2026–27 funding for Treasury Board Vote 50, which was included in the Main Estimates.

Q. The Main Estimates show planned spending of over $26.6 billion on professional services. Why does the government continue to spend so much on consultants?

A. Contracted services have always been an important part of how the government delivers programs and services to Canadians, acquire special expertise, meet unexpected fluctuations in workload, or complement the work of the professional public service.

In these Main Estimates, proposed allocations for professional services support a variety of priorities, including the following:

• National Defence:
  • Engineering services for design and construction of the River-class destroyers
  • Facilities to accommodate the tanker transport fleet
  • Training of pilots, air combat systems officers and airborne electronic sensor operators
• Public Services and Procurement Canada:
  • Construction services for the Centre Block, the new Parliament Welcome Centre, and the rehabilitation for the West Memorial Building
  • Remediation services for contaminated sites in the North
• Employment and Social Development Canada:
  • Service provider fees for administration of Canada Student Loans and Canada Apprentice Loans
  • Support for the Benefits Delivery Modernization project

Professional services will continue to play an important role for the government to deliver on its mandate. At the same time, the government has recently been strengthening procurement oversight with updated guidance for departments and the launch of the Risk and Compliance Process to assess controls and risk in procurement to support the diligent planning and use of professional services as required.

The government is committed to reducing expenses on management and other consulting services by 20% in three years’ time in order to reduce wasteful spending and empower the public service to take on more responsibility and accountability.

Background

Issue

What kind of performance targets are in TBS’s 2026–27 Departmental Plan?

Response

TBS’s 2026–27 Departmental Plan lays out concrete actions TBS is taking to modernize government, reduce red tape and improve services for Canadians.

We are advancing key priorities, such as cutting regulatory burden, strengthening internal trade, deepening regulatory cooperation, implementing the Buy Canadian Policy, and accelerating responsible artificial intelligence (AI) across government.

My department will meet its Comprehensive Expenditure Review target. This means reducing spending by $57.8 million by 2028–29 by winding down temporary initiatives and streamlining operations.

These actions support the government’s commitment to spend less on operations so Canadians and businesses can drive economic growth.

Questions and answers

Q. What details are provided in the Department Plan about TBS’s Comprehensive Expenditure Review savings?

A. As a department, TBS’s Departmental Plan reflects a reduction of more than $125 million over three years and a decrease of approximately 294 full-time equivalents by 2028–29.

TBS will achieve these reductions by focusing on its priorities, rethinking how it works, and winding down temporary programs.

TBS will transform its internal operations by consolidating work units, right-sizing management and administrative support, and modernizing key processes. This includes leveraging automation to drive consistency, scalability and service excellence across the organization.

Q. Why is there a lack of details regarding the Comprehensive Expenditure Review in the 2026–27 Departmental Plans?

A. Departments were asked to include Comprehensive Expenditure Review (CER) details in their Departmental Plan, including the savings for each fiscal year (2026–27, 2027–28 and 2028–29), a description of how the savings would be achieved, the number of reductions in full-time equivalents by 2028–29, and information about measures that were not included in Annex 3 of Budget 2025.

Certain institutions are still finalizing the implementation of their reductions, and this information will be reflected in future Estimates documents.

Background

TBS’s 2026–27 Departmental Plan outlines how TBS will deliver on its mandate to support effective government, foster innovation and uphold public service values. In particular, it provides details on TBS’s priorities, plans and associated costs for the upcoming three fiscal years.

The plan highlights how TBS will help advance key government initiatives announced over the past year by the President of the Treasury Board and those announced in Budget 2025. For example, it notes that TBS will be:

• advancing cross-jurisdictional cooperation to reduce trade barriers within Canada
• deepening Canada’s regulatory alignment with the European Union through the new Canada–EU strategic partnership
• using horizontal reviews to identify ways to reduce regulatory burden, streamline processes and get products to market faster
• reviewing key regulatory policy instruments and related legislation to remove red tape in the federal regulatory system
• supporting the government in adopting a more regular and predictable review schedule to ensure government resources are continuously optimized
• accelerating responsible AI adoption within the federal public service
• supporting implementation of the new Buy Canadian Policy

This year’s plan includes a new central vote (Vote 50), which has been added to TBS’s budget. The new vote allows TBS to transfer funds from the vote to National Defence to cover unforeseen expenditures related to national defence or national security. As with the other six central votes managed by TBS, any funds in Vote 50 that are not allocated during the year will lapse at the end of the fiscal year.

The plan also notes that to meet the savings requirements of the Comprehensive Expenditure Review, TBS will be reducing its spending by $57.8 million by 2028–29. It will achieve these savings by winding down temporary programs and initiatives, streamlining work, and focusing on priorities that strengthen the public service.

Issue

What is being done to ensure the contractors are being used prudently?

Response

I expect all spending to be well managed and directed to priorities that provide value for Canadians.

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

Very little of what the government spends goes to management consultants, and in 2025, spending on management consulting and IT services decreased by 10%.

Professional and special services are mostly used 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, secure nurses for health care in the North, and 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: Key Considerations When Procuring Professional Services 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

Questions and answers

Q. Can you provide details on your government’s plan to reduce expenses on management and other consulting services by 20% over the next three years?

A. Plans to achieve this reduction are being finalized and will be shared as soon as possible.

This reduction will build on progress already made. For example, expenditures on management consulting last year saw a decrease in total spending of 46% ($837,842,000 in 2024 versus $449,824,000 in 2025).

The public service continues to look at internal resources as a preferred option before seeking external help. To support this focus, we are advancing talent‑management and workforce strategies to help build internal capacity. As well, we have strengthened oversight and governance in procurement to ensure that contracting decisions remain appropriate and cost‑effective.

Q. Why are you spending billions on management consultants?

A. Professional services is a broad category of spending that includes a range of services, including construction, translation and health care.

Annually, management consultants make up a very small percentage – less than 5% – of all professional services spending.

All public servants are expected to ensure that spending is prudent and directed to priorities that provide value for Canadians.

Background

Contracted services have always been an important part of how the government delivers programs and services to Canadians. For example, professional services might be needed to acquire special expertise, meet unexpected fluctuations in workload, or complement the work of the professional public service.

“Professional and special services” is a broad category of the Public Accounts that includes a wide range of services such as engineering and architectural services, legal services, and health and welfare services, among others. It represented less than 5% of the total government expenditures in 2025.

The increase in professional services expenditures compared to last year is largely attributable to increases in engineering and architectural services for:

• National Defence, Fisheries and Oceans Canada, and the Canadian Space Agency
• health and welfare services
• other services for specialized training services

Since April 2024, the government has taken a number of concrete actions to strengthen procurement oversight and reduce departments’ use of management and IT consultants, including:

• 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, and took concrete actions to enhance mechanisms to identify procurement-related risks and non-compliance through a new Risk and Compliance Process
• developed a Risk and Compliance Process to assess controls and risk in procurement and other key administrative areas, which was launched in June 2025

Issue

Given the Procurement Ombud’s report on March 26, 2026, that found that reporting against the 5% target overstates results, what actions is TBS taking to ensure departments’ reporting accurately reflects the actual value of work performed by Indigenous businesses?

Response

Through the minimum 5% Indigenous procurement target, the government is strengthening its economic relationship with Indigenous businesses and communities.

TBS will support Indigenous Service Canada’s efforts to modernize the way the government procures with Indigenous businesses and strengthen how the value of that work is reported.

If pressed:

Indigenous Services Canada is best placed to speak to how it is modernizing the way the government procures with Indigenous businesses.

Background

Issue

Is the government laying off employees across the public service?

Response

The government has committed to returning the public service to a more sustainable size.

The Comprehensive Expenditure Review will reduce the public service by 16,000 full-time equivalents by 2028–29, bringing the size of the public service to roughly 330,000.

We are committed to managing reductions through voluntary departures and attrition to the greatest extent possible. The recently implemented Early Retirement Incentive supports this goal.

All employees affected by workforce adjustment are being treated fairly, with compassion and in accordance with their collective agreements.

If pressed about executive reductions:

As the size of the public service adjusts, so too must its leadership. This is why we announced the reduction of 1,000 executive positions over the next two years.

Questions and answers

Q. How many public servants are currently subject to workforce adjustment measures, broken down by department and region?

A. To support transparency, TBS has made available on its website a detailed breakdown of workforce reductions announced by organizations to date. This information will be updated regularly as employees are notified.

Q. How much are workforce adjustment measures expected to cost the government?

A. The cost per employee will depend on factors such as years of service and the option each individual employee selects under the applicable workforce adjustment measures in their respective organizations. As such, we are not in a position to provide an overall estimate at this time.

Q. How much will career transition measures for executives cost the government?

A. Career transition agreements are negotiated between executives and deputy heads, based on a variety of factors, including age and years of service. They also include both cash and non-cash elements. Therefore, it is not possible to precisely predict the total cost of these agreements.

Q. Are front-line staff being reduced at the Canada Border Services Agency?

A. The government has committed to hire 1,000 new Canada Border Services Agency service officers.

This work is underway, and by June, the Canada Border Services Agency will have hired approximately 100 officers and will have 180 in training at the college in Rigaud.

A new cohort of officer trainees will start at the College every five weeks until the Canada Border Services Agency delivers on its commitment to hire 1,000 new officers by 2028–29.

Background

In Budget 2025, the government committed to bringing the federal public service back to a more sustainable level of about 330,000 employees, down from approximately 369,000 in 2023–24, for a total reduction target of roughly 40,000 positions.

Reductions began in 2024–25 with a decrease of about 9,800 employees due to the Refocusing Government Spending initiative and attrition. Additional reductions are expected in 2025–26 because of attrition and funding that has not been renewed (exact figures will be available following the end of the fiscal year).

Over the next three years, the Comprehensive Expenditure Review (CER) is expected to reduce the size of the federal public service by an estimated 16,000 full-time equivalents. When combined with natural attrition and voluntary departures, these measures will collectively bring the public service down to the target of approximately 330,000 employees.

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 adjustment appendices that 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
• there is a relocation of a work unit in which the employee does not wish to participate, or
• there is an alternative delivery initiative

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.

In the case of non-executive employees, the department will confirm with an employee whether they will:

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

One of the key provisions under the workforce adjustment provisions is that organizations must establish a voluntary departure program for a minimum of 30 days in work units with five or more employees at the same group and level who are notified that their services may no longer be needed. Departments may also choose to offer the voluntary departure program to smaller groups of affected employees. This allows public servants who wish to depart to do so and reduces the number of involuntary departures. These voluntary departure programs can be initiated only once employees receive a notice that their position may be affected.

Data on workforce reductions in the core public administration is available on Canada.ca. Information for certain departments is not yet presented, as these institutions are still finalizing the implementation of their reductions. This data will be updated on a regular basis as these phases are completed and as additional information becomes available.

Issue

How will the recently implemented ERI program announced in Budget 2025 help manage workforce reductions?

Response

The government is returning the size of the public service to a more sustainable level of roughly 330,000 employees.

To manage these reductions to the greatest extent possible through voluntary departures, a temporary ERI program allows eligible employees to apply for early retirement without the normal penalty.

This program is funded from the Public Service Pension Plan and designed to maintain essential services and business continuity.

With the passing of the Budget Implementation Act in March, the application period for the program is now open, and eligible employees may apply until July 24, 2026.

Questions and answers

Q. How many public servants have applied for ERI, broken down by department? How many are approved versus denied?

A. To support transparency, TBS has made available on its website a breakdown of ERI applications. This information will be updated regularly. The number of applications that have been accepted and rejected will be made available in due course.

Q. How will the ERI affect workforce capacity, particularly in critical and specialized areas of the public service?

A. Applications for the ERI program must meet specific criteria set by the Treasury Board before being approved. These include maintaining service to Canadians and ensuring that current and future operational or business needs continue to be met.

Q. What is the estimated cost of the ERI?

A. The ERI is funded from the Public Service Pension Fund. It is estimated that it will cost $1.5 billion over five years, starting in 2025–26, while providing ongoing savings of $82 million per year.

Q. If ERI is meant to prevent layoffs in the public service, why did workforce adjustment happen first? What impact will this have on the number of employees who may be able to apply for ERI?

A. The workforce adjustment process unfolds over several months, so most eligible employees in a workforce adjustment situation will have been able to apply for ERI before any involuntary departures take effect. It is also important to note that the ERI is separate from the workforce adjustment process. Eligible employees can apply for the incentive whether or not they are in a workforce adjustment situation.

Q. Will departments be able to replace employees who decide to take ERI?

A. While the ERI is intended to help the government reach its reduction goals, it is recognized that there is also a need for some organizations to adjust and renew their teams and structures to most effectively deliver on their mandates. The ERI can be used to support this renewal.

Q. What is your response to grievances filed by unions about the ERI?

A. The Government of Canada has committed to returning the public service to a more sustainable level. The ERI will help manage workforce reductions through voluntary departures to the greatest extent possible by providing eligible employees the opportunity to retire early without penalty.

We won’t comment on unions’ decision to file grievances against this program.

Background

The government has committed to returning the federal public service population to a more sustainable level of 330,000 from close to 368,000 in 2023–24 as part of its Comprehensive Expenditure Review.

To manage workforce reductions through voluntary departures to the greatest extent possible, the government introduced the ERI. Normally, when an employee retires before meeting the age and service requirements for an immediate annuity, their pension is permanently reduced by 5% for each year they retire early. Under this program, eligible employees can apply to retire with an immediate pension based on years of service, with no reduction for retiring early.

With the passing of the Budget Implementation Act on March 26, 2026, the application period for the ERI is now open, and eligible employees have until July 24, 2026, to apply.

Letters have been sent to approximately 69,000 employees who may meet the program’s age, pensionable service, and employment criteria to inform them that they may be eligible to apply. To be eligible to apply to the ERI program, employees must meet the following eligibility parameters and retire no later than January 20, 2027.

Group 1: Members who joined the public service pension plan on or before December 31, 2012, and who:

• are at least 50 years old
• have at least two years of pensionable service
• have at least 10 years of employment in the public service

Group 2: Members who joined the public service pension plan on or after January 1, 2013, and who

• are at least 55 years old
• have at least two years of pensionable service
• have at least 10 years of employment in the public service

Deputy heads must confirm that the following criteria are met in order for an eligible employee’s application for the ERI program to be accepted. These criteria were approved by the Treasury Board as follows:

• the organization needs to reduce its workforce
• services to Canadians will be maintained
• current and future operational or business needs will continue to be met

As established by the Treasury Board, the ERI is not available to employees who are entitled to a separation benefit under the terms of any workforce adjustment or employee transition instruments or provisions.

The ERI program is different from the existing pension waiver available under the Public Service Superannuation Act under certain conditions, such as workforce adjustment. Employees who resign or are laid off because of a workforce adjustment or career transition situation may be eligible for an existing pension waiver.

This program, which will be sourced from the Public Service Pension Fund, is estimated to have a net fiscal impact of $1.5 billion over five years, starting in 2025–26, while providing ongoing savings of $82.0 million annually.

Issue

Why did the government spend $146.3 million on performance pay for federal executives in 2024–25?

Response

Performance pay is a common component of executive compensation in private and public sector organizations.

A portion of executives’ compensation (on average about 11%) is held back each year and paid only if executives meet the expectations outlined in their performance agreements.

A small proportion of executives (about 7% in 2024–25) who demonstrate exceptional performance may also receive a bonus.

Questions and answers

Q. Departments have consistently failed to meet their own performance targets and yet an overwhelming number of executives in those departments continue to get performance pay. Why?

A. Departmental Plans set out broad, high-level targets for departments and their programs while performance commitments for executives are based on a set of performance measures specific to each of their roles and responsibilities. To compare the two does not provide an accurate picture of either.

Executives can get performance pay if they meet their annual commitments and demonstrate key leadership skills.

Q. Is it appropriate to pay performance awards during a period of spending restraint?

A. Performance pay is a longstanding component of executive compensation designed to support accountability and results. Payments are not automatic, are subject to strict eligibility criteria, and must be earned through demonstrated performance, including during periods of fiscal restraint.

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 January 30, 2026, TBS published the results of the Performance Management Program for Executives for 2024–25 on Canada.ca. In the 2024–25 performance pay cycle, 7,987 executives (98.1%) in the core public administration (CPA) received performance pay, including 559 (6.9%) who received a bonus for exceptional performance. In comparison, in the 2023–24 performance pay cycle, 7,960 executives (97.4%) across the CPA earned performance pay with 623 (7.6%) of them receiving a bonus.

The total spending for executive performance pay was $146.3 million, including $3.4 million for bonuses, which is an increase of $3.8 million (+2.7%) compared to 2023–24. The increase is primarily due to:

• salary adjustments that account for $3.7 million (95.2%) of the total increase in performance pay expenditures; the salary increases align with those provided to the majority of employees across the federal public service
• a 0.3% increase in the number of executives who received performance pay, from 7,960 to 7,987, which accounts for $0.5 million (12.6%) of the total increase in performance pay expenditures

In 2024–25, the average performance pay per executive increased from $17,869 to $18,316 (+2.4%). On average, executives in the CPA received performance pay equal to 10.7% of their salary, well below the 19.7% average received by executives in other Canadian public and private sector organizations.

The Government of Canada has fully paid out performance pay or bonuses for the 2024–25 fiscal year.

Issue

What is the government doing to strengthen public service integrity?

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 in due course.

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 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.

TBS continues to strengthen the federal public sector conflict of interest regime by modernizing policy instruments and by enhancing guidance and tools for employees, managers, executives and deputy heads. TBS promotes ethical leadership and culture that supports the Values and Ethics Code for the Public Sector by providing organizations with policy advice, practical resources and communities of practice that help embed public sector values into everyday behaviours and organizational practices.

The Office of the Public Sector Integrity Commissioner (PSIC) has written to the President regarding the funding pressures faced by her office. Funding requests from the PSIC follow an established process consistent with its position within the portfolio of the President of the Treasury Board. When the PSIC identifies a need for additional funding, its request is submitted directly to the President of the Treasury Board for consideration. TBS officials do not have a formal role in managing or advancing such funding requests on behalf of portfolio organizations. If the President supports the request, a signed letter of support accompanies the transmission of the request to the Minister of Finance. Officials from the PSIC then engage directly with the Department of Finance Canada, which is responsible for determining next steps with respect to the request, including whether and how it may be considered in future budgetary or estimates processes.

Issue

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

Response

The Government of Canada values the important work of our front-line public service safety and security workers.

With the recent passage of the budget bill in March 2026, the Public Service Superannuation Act has been amended to expand early retirement eligibility for front-line safety and security workers that participate in the public service pension plan.

Newly eligible employees will include front-line firefighters, paramedics, correctional service employees, border services officers, parliamentary protection officers, and search and rescue technicians.

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

Work is now underway to develop the regulatory changes that will allow this expansion to come into force.

Questions and answers

Q. How much will expanding early retirement for front-line safety and security workers cost? Will it affect the long-term sustainability of the public service pension plan?

A. The cost of expanding early retirement eligibility is estimated to include one-time costs of approximately $163 million and ongoing annual costs of approximately $21 million shared between the employer and employee.

These costs would be covered by the Public Service Pension Plan, which continues to maintain a strong financial position and remains sustainable over the long term.

Q. When will the proposal to expand early retirement for front-line safety and security workers come into effect?

A. Now that the Budget Implementation Act has received royal assent, regulatory amendments are required before the expanded program can take effect. These amendments, currently in development, will confirm the coming-into-force date of the program expansion, as well as the specific definitions of these newly eligible occupational groups.

Background

Further to an announcement by the Prime Minister on October 17, 2025, Budget 2025 proposed to amend the Public Service Superannuation Act to expand the operational service early retirement program (also known as “25 and out”) to front-line employees of the following additional occupational groups participating in the public service pension plan:

1. firefighters (federal and territorial governments)
2. paramedics (federal and territorial governments)
3. correctional service employees (territorial governments)
4. border services officers (federal government)
5. parliamentary protection officers (federal government)
6. search and rescue personnel (federal and territorial governments)

Participation in the operational service program would allow the newly eligible employees to access a special early retirement benefit. More specifically, they will be able to retire early with an immediate unreduced pension after completing 25 years of actual operational service or at age 50 with 25 years of actual and deemed operational service combined (at least 10 years must be actual). This special benefit is currently available only to employees of Correctional Service Canada working in a federal correctional institution.

The statutory amendments to the Public Service Superannuation Act that are required for the program expansion received royal assent on March 26, 2026, through their inclusion in the Budget 2025 Implementation Act, No. 1. Implementation of the expanded program, however, requires the completion of additional actions, such as the finalization of regulatory amendments and changes in the pay and pension systems. The implementation date of the expanded program will be announced at a later date following the completion of all the required implementation actions. The Government of Canada plans to advance these actions as soon as possible.

The proposal in Budget 2025 mirrored a commitment made in the government’s most recent election platform. It also mirrored a commitment made by the former government, with that commitment being informed by a recommendation from the Public Service Pension Advisory Committee. The required statutory amendments to expand the operational service program were previously included as part of the implementing legislation for the 2024 Fall Economic Statement; however, that legislation did not proceed due to the dissolution of Parliament on March 23, 2025.

Bargaining agents have generally praised the commitment to expand the operational service program. However, some bargaining agents representing groups that are not included in the proposed expansion have called for the expansion to be reviewed in support of the inclusion of those groups.

Issue

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

Response

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

By law, the government must address a surplus in the pension fund above an allowable limit.

On December 17, 2025, I tabled a report in Parliament confirming that the fund was in a non-permitted surplus position (approximately $0.9 billion and with a funding ratio of approximately 125.5%).

The non-permitted surplus was calculated after factoring in the cost of the Early Retirement Incentive (ERI) program and the expansion of the Operational Service Early Retirement program (“25 and out”), which are both being funded out of the pension fund.

Non-permitted surplus amounts have been transferred the Consolidated Revenue Fund, which also contains the non-permitted surplus amounts from 2024. No decisions about the use of these funds have been made.

The public service pension plan is fully guaranteed by the Government of Canada. In the event of a shortfall, the government – not employees – would cover any deficit, as it did previously from 2013 to 2018.

Questions and answers

Q. You previously indicated the $1.9 billion surplus would be held pending a decision on next steps. With the surplus moved into general revenues, what decision was ultimately made on how the funds will be used?

A. No decisions have been made yet. The non-permitted surplus amount is being held in the Consolidated Revenue Fund while next steps are considered and discussions with stakeholders will be held as appropriate.

Q. Where exactly within the Public Service Pension Fund will the money come from for the ERI? Will it be from the non-permitted surplus?

A. The ERI is being funded from the Public Service Pension Fund. This cost was reflected in the Special Actuarial Report on the Financial Position of the Public Service Pension Fund as at 31 March 2025, tabled in Parliament on December 18, 2025. Even with this potential cost factored in, the fund was still in a non-permitted surplus position.

Q. If you’re taking it from the pension fund, how will you ensure taxpayers aren’t eventually on the hook for these increased costs?

A. The Public Service Pension Fund has shown very strong performance over a number of years and is projected to remain in a surplus position after taking into account the maximum costs of the ERI program.

Background

The terms and conditions of the public service pension plan are outlined in the Public Service Superannuation Act and its Regulations. Per section 113 of the Federal Public Sector Labour Relations Act, the terms and conditions of the plan cannot be negotiated through collective bargaining.

The funding position of the public service pension plan is regularly monitored through actuarial reviews. Among other things, the actuarial reviews establish 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%). The funding ratio is calculated by comparing the plan’s assets in relation to its liabilities.

Legislation requires that, every three years, the Chief Actuary of Canada prepare an actuarial valuation report that provides information on the funding position of the pension plan and present this report to the President of the Treasury Board. The President is required to table the triennial actuarial report in Parliament. The President may also, at any time, request that the Chief Actuary of Canada provide him with a special actuarial report.

The President may form an opinion on the funded status of the plan based on reasonable and relevant evidence. When a non-permitted surplus exists in the Public Service Pension Fund, the Public Service Superannuation Act provides for its reduction through an employer contribution holiday, a full or partial employee contribution holiday, 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. From 2013 to 2018, the government made deficit payments totalling $2.8 billion, including interest.

Issue

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

Response

The government has put forward ambitious plans to deliver on priorities for Canadians and to strengthen our country.

Working together onsite, with all hands on deck, is an essential foundation needed during this pivotal moment and beyond.

This why we announced our intention to increase the onsite presence of public service employees.

As of May 4, 2026, executives are required to work onsite five days per week. For all other employees, the intention is to have them work onsite four days a week as of July 6, 2026.

We’ve engaged with bargaining agents to seek their input on the implementation of this plan.

Questions and answers

Q. What is the cost of increasing onsite presence for executives and employees?

A. While the government has announced its intention to increase onsite presence for both employees and executives, details of implementation, including any potential costs, are still being determined following the engagement sessions held with bargaining agents.

Q. When will the government provide details on the implementation of four days per week?

A. TBS officials have finished their engagement with bargaining agents and will be communicating a decision and implementation details in due course.

Q. Some departments say they lack sufficient office space to bring employees in four days per week by July. What are you doing to ensure proper implementation?

A. The government has expressed its intention to have non-executive employees work onsite four days per week as of July 6, 2026. Many organizations currently have sufficient space to welcome their employees to the office four days per week and executives for five days per week. Some organizations will require additional capacity in certain sites, and in these situations, deputy heads are able to adjust their implementation schedules to match their workplace realities.

Public Services and Procurement Canada (PSPC) is working closely with departments to ensure that adequate workspaces are available for employees as quickly as possible, including to support the goal of increasing assigned seating across the public service.

Q. Some unions have declared an impasse in bargaining, claiming that you are changing the terms and conditions of their employment? Are you allowed to do this?

A. As has always been the case, the employer has the management right to designate the location of work and to require employees to report to their designated worksite. That being said, we value the perspectives of bargaining agents and have engaged with them to discuss the government’s intent to increase onsite presence for its employees.

TBS has held four meetings with bargaining agents to seek their input about important elements, such as the potential for assigned seating, occupational health and safety, and the duty to accommodate.

Q. What happens now that Public Service Alliance of Canada has declared an impasse for the PA and EB groups? What are next steps?

A. We encourage the Public Service Alliance of Canada to return to the bargaining table to pursue negotiations in good faith. The employer remains determined to reach an agreement that is fair to employees and reasonable for Canadians.

Out of respect for the collective bargaining process, we won’t comment on negotiation priorities or proposals.

Q. Is the government considering increasing onsite presence to five days per week for all employees?

A. Our intent is to move to a model of four days of in-office work. We will continue to assess the operational requirements of the government and adjust accordingly.

Q. Why are you doing this when you have committed to spending less on government operations?

A. The Comprehensive Expenditure Review is focused on reducing spending on day-to-day operations. That said, there is a cost associated with a highly effective public service that can effectively deliver for Canadians. That includes supporting onsite work, where collaboration, strong culture and innovation can thrive.

Background

TBS introduced the direction on prescribed presence in the workplace in December 2022, requiring those who were eligible for telework to work onsite two to three days per week by March 2023. In May 2024, the direction was updated to three days per week for non-executives and four days per week for executives as of September 9, 2024.

On February 5, 2026, the government announced its intention to increase the onsite presence of executives and employees who are eligible for hybrid work. As a first step, executives will be required to work onsite five days per week by May 4, 2026. For all other employees, the intention is to increase onsite presence to four days per week as of July 6, 2026. The announcement also indicated that TBS would engage bargaining agents to obtain their feedback on the implementation of this intention.

Subsequently, TBS held four engagement sessions with bargaining agents in February 2026 covering key topics related to the implementation of the government’s announced intention, such as assigned seating and occupational health and safety.

Since summer 2025, bargaining units representing about 70% of employees have begun the collective bargaining process. To date in this round of collective bargaining, the Public Service Alliance of Canada and the Professional Institute of the Public Service of Canada, collectively representing over 200,000 employees, have put forward bargaining proposals that seek to enshrine telework in collective agreements. The employer continues to maintain its position that the location of work is an exclusive management right.

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 taking concrete steps to ensure that the Official Languages Act is respected across all federal institutions.

In December, I announced that 733 federal offices will be newly designated as bilingual. This raises the proportion of bilingual offices across Canada from 34% to 40%.

That same month, I tabled draft regulations under Part 7 of the Act to better support minority language communities, promote the French language, and strengthen opportunities for learning in the minority language.

If pressed on language rights of public servants:

Respecting language rights in the public service is non‑negotiable. This is why we are strengthening the use of official languages in the workplace.

All employees in bilingual regions now have the right to be supervised in the official language of their choice, and we have raised second language proficiency requirements for supervisory roles.

If pressed on Air Canada:

As President of the Treasury Board, I am responsible for setting government‑wide policies and accountability frameworks and overseeing their implementation across federal institutions.

While Air Canada is not a federal institution, it is still subject to the Official Languages Act.

Language rights are not optional, and we fully expect Air Canada to comply with all its obligations under the Act, including providing services and a work environment that respect both official languages.

Questions and answers

Q. How will you ensure that departments will continue to meet their official languages obligations with all the cuts to the public service?

A. The government will continue to respect its legal obligations to ensure that federal public services are delivered to Canadians in the official language of their choice and is dedicated to fostering a bilingual and inclusive work environment.

Q. You tabled the regulations for Part VII of the Official Languages Act before Christmas, but when can we actually expect these regulations to be fully approved and in force?

A. Parliamentarians currently have an opportunity to view and provide input on the draft regulations until the Governor in Council decides to move forward. The draft regulations will then be published in the Canada Gazette for another 30 days for public comment. There will then be an analysis of the feedback received, including feedback from parliamentarians, and the final regulations will be drafted and submitted for approval by Governor in Council before coming into force.

Background

Following the 2023 modernization of the Official Languages Act, 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:

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

Issue

What are the ongoing efforts being taken by the Government of Canada regarding whistleblower protections?

Response

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

As part of ongoing efforts to promote a positive, respectful and safe public service culture, a task force was appointed to review the Act and identify opportunities to improve the disclosure process.

The task force has made 35 recommendations, which we are carefully considering as part of our ongoing efforts to strengthen Canada’s whistleblowing regime.

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 provided its report to the President of the Treasury Board on December 1, 2025.

The report was released on April 24 and contains 35 recommendations to improve the whistleblowing regime that address key issues such as fear of retaliation, lack of accountability, unclear reporting mechanisms, lack of awareness of reprisal protections and the need for cultural change. Its tone is neutral and balanced.

This review considered 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, 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. The Bloc Québécois has continued to focus on the need to enhance whistleblower protections in its 2025 platform and may reintroduce similar legislation.

On October 31, 2025, the Annual Report on the Public Servants Disclosure Protection Act 2024 to 2025 was tabled by the President of the Treasury Board. It showed that 279 public servants made 278 internal disclosures concerning 727 allegations of wrongdoing. This compares to 250 public servants who made 266 internal disclosures concerning 425 allegations of wrongdoing in 2023–24.

Issue

What is TBS doing in response to the Auditor General’s report, Modernizing the Pay System, tabled on March 23, 2026?

Response

We welcome the Auditor General’s report and its recommendations, which support our ongoing work to stabilize pay in the public service.

Over the past several years, we have worked to simplify pay rules, reduce manual processes, and strengthen the integrity of HR and pay practices across the Government of Canada.

A significant portion of the work to simplify pay relates to conditions of employment across many collective agreements and requires the agreement of bargaining agents.

My department will continue to work with PSPC to stabilize pay operations and prepare for the future HR and pay solution.

If pressed on service standards:

We fully agree with the Auditor General’s recommendation that gaps in service standards for pay transactions must be addressed.

My department has already started important work, in coordination with PSPC, to improve how we monitor performance.

Questions and answers

Q. What concrete progress has been made to simplify pay?

A. TBS has made significant progress on advancing pay simplification through policy changes and standardization of HR practices within its authorities.

For example, the Directive on Terms and Conditions of Employment for Executives was revised to clarify, update and simplify processes to reduce the burden of retroactive and ongoing pay administration work.

The harmonizing of rates of pay between RCMP civilian members and employees performing equivalent work elsewhere in the public service was also completed. Lastly, we established national rates of pay for groups that had regional disparities.

Q. Why, after 10 years, hasn’t more progress been made? How much more time is needed to address all these issues?

A. Pay rules from collective agreements are a joint responsibility of the employer and bargaining agents. Any changes to pay rules from collective agreements would require negotiation with and concurrence from bargaining agents.

TBS continues to table proposals to standardize terms and conditions of collective agreements where it makes sense, and to avoid retroactive application where possible of new or modified monetary benefits.

Background

The recent Office of the Auditor General of Canada audit looked at how PSPC and TBS are modernizing the HR and pay system as part of the HR and Pay Transformation Project and focused on whether PSPC and TBS were managing the project to ensure that public service employees are paid accurately and on time.

TBS is the business owner of the project, and its responsibilities include defining business requirements, ensuring the project meets the business requirements, and providing oversight of the project through senior governance committees, which it co-chairs with PSPC.

The audit had three main lines of enquiry, focusing on the simplification and standardization of pay rules and processes, eliminating the backlog of pay transactions and the cost of processing pay.

The audit covers the period from January 1, 2017, to September 30, 2025 (for the backlog and costing, the period covered is from November 2023 to September 2025).

The overall message of the audit is that:

• PSPC and TBS were still in the planning phase of the project at the end of the audit and are not expected to complete that phase until 2027
• PSPC and TBS are managing the project to ensure that public service employees are paid accurately and on time, and that the project will provide value for money once implemented
• TBS and PSPC have time to course-correct as the project evolves to address emerging risks

With respect to the three lines of enquiry, the Office of the Auditor General of Canada found that:

• TBS has made slow progress in simplifying pay rules
• PSPC has made limited progress in eliminating the backlog of pay transactions
• PSPC shortened the schedule to mitigate the costs of running two systems in parallel, and PSPC will need to monitor and mitigate the risks of a shortened schedule

The Office of the Auditor General of Canada also found that, as TBS has been unable to reach an agreement with unions regarding pay simplification, PSPC is developing cloud extensions estimated to cost $4 million annually.

Key findings include:

• TBS was slow in making progress to simplify and standardize pay rules and processes, which resulted in PSPC seeking cloud extensions at an annual cost of $4 million
• PSPC had begun to standardize HR and pay processes
• PSPC made limited progress in eliminating the backlog of pay transactions and missed targets for eliminating the backlog and was evolving its approach
• service standards for processing pay did not account for the entire duration of processing
• PSPC had gaps in its preliminary cost estimates; preliminary cost estimates did not include costs for departments to transition to Dayforce

Issue

What is TBS’s overall response to the Office of the Auditor General of Canada audit on accessibility, and how is it exercising its leadership role to drive improvements across the federal public service?

Response

We agree with the Auditor General’s recommendations and remain committed to building a diverse, accessible and inclusive federal public service.

We will work with departments to continue advancing accessibility in consultation with employees with disabilities.

We continue to support the implementation of the accessibility strategy for the public service of Canada that provides a comprehensive roadmap to guide the journey of becoming a leader in accessibility and inclusion.

Accessibility in the public service is about ensuring employees have what they need to succeed so they can fully contribute to serving Canadians.

Background

The objective of the recent Office of the Auditor General of Canada audit was to determine whether seven federal organizations fostered an accessible workplace for public service employees with disabilities. The seven departments implicated in this audit were TBS, PSPC, the Canadian Revenue Agency, the Canada School of Public Service, Shared Services Canada, Employment and Social Development Canada, and the Public Service Commission of Canada. They were chosen due to their size and impact on the public service as well as their leadership role in the Accessibility Strategy for the Public Service of Canada.

The audit found that for all seven organizations:

• progress was made in representation and advancement of persons with disabilities
• accessibility practices were integrated, but more consultation is needed
• processes to handle volume of accommodations requests were ineffective
• supervisors had different levels of awareness and training, leading to mixed employee experience

The audit’s three recommendations were each addressed to all seven organizations:

1. organizations should consult with their network of persons with disabilities to establish organizational frameworks for meaningful consultation
2. organizations should review their accommodation processes in consultation with their network of persons with disabilities to address the root causes of delays and implement a data-driven approach to identify trends in accommodation requests
3. organizations should take concrete steps to strengthen the array of support systems for their supervisors so that they have the necessary access to resources and awareness of accessibility tools to effectively address and remove barriers for employees with disabilities

TBS agrees with all recommendations in the report and has started making progress. In response, TBS will formalize departmental governance for accessibility and network consultation, streamline the accommodations process, and assess learning and resource gaps for supervisors.

Issue

What is the Government of Canada doing to address concerns about red tape?

Response

The Government of Canada is committed to cutting red tape.

Our Red Tape Review of regulations has identified 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

We are also proceeding with horizontal reviews to identify additional system-wide opportunities to reduce regulatory barriers for businesses and deliver an effective regulatory system for Canadians.

TBS’s Red Tape Reduction Office will continue to engage with regulators and stakeholders to deliver initiatives that eliminate unnecessary rules and reduce costs.

Questions and answers

Q. What is the Red Tape Reduction Office doing to reduce red tape, and when will we see concrete progress on the red tape review?

A. The Red Tape Reduction Office is overseeing the review of regulations across federal departments and agencies with regulatory responsibilities.

Their work will help accelerate the elimination of red tape by speeding up the removal of unnecessary or outdated rules.

The office is also responsible for establishing measures to track, assess and communicate results of regulatory action and engage with Canadians and Canadian businesses for feedback on regulatory red tape.

Following the 60-day red tape review, which concluded in September, the Red Tape Reduction Office is working closely with federal organizations on the implementation of these initiatives, and a progress report will be available later this spring.

The Red Tape Reduction Office is also working with the Government of Ontario to co-host a federal provincial/territorial meeting in May to identify collaboration opportunities to further eliminate red tape, including for streamlining permits.

Background

Issue

How is the Government of Canada advancing its responsible AI adoption to improve how it serves Canadians?

Response

The government is exploring areas where AI can improve service delivery and enhance the work of public servants.

The AI Strategy for the Federal Public Service is guiding this work along with various policy tools that ensure the responsible use of AI.

To provide transparency, we maintain a publicly available AI Register that lists where and how federal institutions are using or testing AI.

If pressed on the use of AI for access to information and privacy (ATIP) tools:

When it comes to the processing of ATIP requests, regardless of any technology used to support this work, all files are reviewed by ATIP professionals to ensure legal requirements for disclosure are being properly met.

Questions and answers

Q. How many jobs will you be able to eliminate with AI? What types of jobs will these be?

A. We are adopting AI to help our public servants become more effective and efficient.

The goal is not job reduction; it’s service improvement for Canadians.

Q. How will the government’s AI strategy fit into the new Office of Digital Transformation announced in Budget 2025? Is there any progress on this office?

A. The Government of Canada’s AI strategy aims to align departments and accelerate responsible AI adoption within the federal public service. It outlines how we are leveraging AI technology to improve productivity and deliver enhanced digital services to Canadians.

Work is underway to plan and establish the office, and additional details will be provided when available.

Background

The AI Strategy for the Federal Public Service 2025-2027, published in March 2025, is intended to accelerate the responsible adoption of AI across the Government of Canada 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 Government of Canada. 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 Government of Canada is not new, current and significant modernization projects are underway across the Government of Canada 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
• Launched in September of 2025, GCtranslate was the first lighthouse project under the strategy and stands out as a transformative solution for bilingual service delivery. Built on Canadian-trained AI models, GCtranslate is already improving translation speed and accuracy across departments, reducing turnaround times for official documents while maintaining linguistic quality.

Issue

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

Response

We are reviewing the Access to Information Act to make sure that Canadians can access government information quickly and easily.

Feedback from Canadians and stakeholders is an important part of this work, and we are seeking input from the public until June 15.

To guide this engagement, TBS published potential policy approaches that focus on greater transparency, improved access, historical declassification, modernized information management, protection of Indigenous information and strengthened oversight.

I look forward to hearing from a wide range of stakeholders on this important issue.

If pressed on concerns from the Information Commissioner:

I was pleased to recently meet with the Information Commissioner to discuss this review and her views. I look forward to receiving her submission as part of formal engagement activities.

If pressed on information management practices:

The government is committed to managing its information securely and in a way that facilitates access, transparency and accountability.

All employees are responsible for the proper management and safekeeping of information based on its value, and deputy heads are responsible for responding to non-compliance.

Questions and answers

Q. Is the government considering rolling back the powers of the Information Commissioner?

A. No, the government is not removing or reducing the Information Commissioner’s order-making powers. The government is examining whether the Information Commissioner’s current oversight framework is effective and whether the Commissioner would benefit from additional tools to ensure that the order-making process is as efficient as possible. The Information Commissioner will have an opportunity to share her views on potential changes to the Act as part of formal engagement activities, which are currently underway.

Q. Do you think it’s appropriate for government records to be automatically erased after 15 days, thereby hiding important information from Canadians, parliamentarians and media?

A. It is appropriate for the Government of Canada to make sure its information is secure while being open and accessible to Canadians. Good information management helps government make decisions and provide better services. It also protects Canadians’ right to access government information and keeps their personal information safe.

Each institution is responsible for setting their own retention period for information and data under Treasury Board policy.

In addition, public servants must keep information that shows the activities and decisions of government. This includes information from any application or format, including email, meeting records, handwritten notes or instant messaging. Information of business value must be saved in the department’s official storage system and deleted only as authorized.

That said, not all government information is of business value or should be kept long-term. Good information management includes deleting transitory records as soon as they are no longer needed. This makes it easier to find important information quickly and lowers storage and maintenance costs.

Background

The Government of Canada 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 Library and Archives Canada to maintain the access to information and privacy (ATIP) regime (including conducting the 2025 review of the Act) and expedite requests. Some funding for TBS and Library and Archives Canada will be devoted specifically to advance the work on declassification and disclosure and support other key actions.

Issue

How is the Government of Canada advancing with the modernization of the Privacy Act?

Response

TBS has launched a review to modernize the Privacy Act, which hasn’t been substantially updated since 1983.

The review aims to ensure that the Act is responsive to Canadians’ expectations and meets the needs of the digital age.

Specifically, the review is an opportunity to enable better services for Canadians, strengthen privacy protections for the digital age, and update the foundation and oversight of the federal government privacy regime.

Engagement with the public, Indigenous partners and stakeholder groups, including the Privacy Commissioner, will take place until summer 2026 to obtain feedback.

Our intent is to publish proposed recommendations for modernizing the Privacy Act, along with a collection of feedback received, by winter 2026–27.

Questions and answers

Q. Why is the government looking to make changes to the Privacy Act?

A. TBS has launched a review to modernize the Privacy Act to ensure Canada’s federal privacy laws are responsive to Canadians’ expectations and meet the needs of a digital age.

Engagement started in early April will continue until July 10, 2026, and proposed recommendations for modernizing the Privacy Act, along with a collection of feedback received, will be published this winter (2026–27).

Q. If government knows what needs to be updated in the Privacy Act, why is a prolonged engagement period required?

A. The Government of Canada is committed to protecting the privacy rights of people in Canada. To do so effectively, engagement with Indigenous partners and stakeholders is critical.

Policy approaches containing key themes for feedback have been published on Canada.ca to support engagement activities. The feedback collected from the review will inform the government’s path forward to strengthen and modernize the Privacy Act.

Background

The Privacy Act, in force since 1983, sets rules for how federal institutions collect, use, disclose, retain and dispose of personal information. It gives individuals the right to access and correct their own information. The Act applies only to federal institutions; the private sector is subject to different legislation.

The President of the Treasury Board is the designated minister for the administration of the Privacy Act across more than 250 federal institutions.

The Act has not been significantly updated since 1983 and predates modern digital government. As a result, it no longer reflects contemporary technologies, service delivery models or public expectations regarding privacy.

Over time, Privacy Act Extension Orders have broadened who has a right of access to personal information under the Act, to inmates in 1983, to all individuals present in Canada in 1989, and to all individuals (including foreign nationals abroad) in 2021.

There have been repeated calls from the Standing Committee on Access to Information, Privacy and Ethics (ETHI) and the Privacy Commissioner for the modernization of the Privacy Act.

ETHI has issued several reports focused specifically on modernization, including:

• 1987: Open and Shut: Enhancing the Right to Know and the Right to Privacy
• 2009: Report on the Review of the Privacy Act: First Steps Towards Renewal
• 2016: Protecting the Privacy of Canadians: Review of the Privacy Act

Following ETHI’s 2016 report, the Department of Justice Canada led consultations with federal institutions, experts, Indigenous partners and Canadians, publishing discussion papers and reports, the most recent released in 2022.

ETHI has also made related recommendations in broader studies addressing federal collection and use of data and emerging technologies, including:

• 2022: collection and use of mobility data by the Government of Canada and related issues
• 2022: facial recognition technology and the growing power of artificial intelligence
• 2022: device investigative tools used by the RCMP and related issues
• 2024; re-tabled in 2025: federal government’s use of technological tools capable of extracting personal data from mobile devices and computers

In its responses to ETHI’s report, the government acknowledged the need for reform. On April 2, 2026, the President of the Treasury Board launched public consultations on a policy proposal on how the Act could be modernized. The policy approaches target challenges related to the administration of the Act and aim to enable better services for Canadians, strengthen privacy protections for the digital age, and update the foundation and oversight of the federal government privacy regime.

Issue

How is the government responding to the cyber incident affecting Canada Life, a managed service provider for the Government of Canada, which resulted in a privacy breach?

Response

The protection of the personal information of employees is a top priority for the Government of Canada.

Last week, Canada Life notified the Government of Canada of a cyber incident impacting its systems.

Since then, Canada Life has been conducting an assessment to determine the extent of the breach.

Canada Life has confirmed that the Government of Canada is not the impacted large client referenced in media reports.

To date, they have informed us that members of the public service benefit plans do not appear to have been impacted.

We are in daily contact with Canada Life and expect to receive real-time updates about this situation as further details become known.

Background

On April 11, 2026, Canada Life informed the Government of Canada of a cyber incident impacting its systems.

Upon discovery, Canada Life initiated an immediate investigation with support from leading third-party cybersecurity experts, and they notified required authorities, including the Government of Canada. Canada Life is responsible for the administration of the Public Service Health Care Plan, the Public Service Dental Care Plan and the Pensioners’ Dental Services Plan, as well as the insurer for the RCMP Disability Insurance Plan on behalf of the Government of Canada.

The cyber incident has been contained and regular operations and services continue. Plan members may continue to submit claims and can call the Canada Life Contact Centre for assistance.

Canada Life is now investigating the incident and whether there is any impact on the Government of Canada plans. As soon as the investigation is completed, Canada Life will have further information to provide. The time frame for completing the data analysis/investigation is not known at this time.

The protection of the personal information is a top priority for the Government of Canada. The Government of Canada will continue to work with Canada Life to monitor this situation and ensure that appropriate security measures are put in place to reduce the risks to the Government of Canada and to plan members.

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 such as financial management, procurement and technology.

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

Starting this year, 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 (RCP), which was officially launched on June 12, 2025.

The main objectives of the RCP 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 RCP is an annual process that will require 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 RCP 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 RCP findings.

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

Issue

How have rules around advertising changed, and what is being done to ensure transparency and impartiality?

Response

As the government responds to increased uncertainty in a more dangerous and divided world, it is essential that Canadians receive timely, accurate and essential information about government priorities and initiatives.

To support this, the government has streamlined and simplified the advertising review process while maintaining strict requirements to ensure government advertising is non-partisan.

In addition to the advertising review process, a public complaints process is in place to ensure government advertising continues to meet the highest standards of non‑partisan communications.

Questions and answers

Q. How are you ensuring that government advertising is not partisan?

A. The Policy on Communications and Federal Identity and its related instruments require that Government of Canada communications are non-partisan.

Since 2016, government advertising has been subject to a third-party review process to verify that it is non-partisan against established criteria.

These reviews are mandatory for campaigns with budgets over $250,000 and optional for smaller budget campaigns.

In October 2025, the review criteria were updated as part of a 12-month pilot to clarify and streamline the review process while maintaining safeguards against partisan elements.

To reinforce transparency, any issues flagged through the review process are disclosed publicly on Canada.ca along with actions taken by the department. In addition, since 2020, members of the public have been able to submit complaints regarding advertising they believe to be partisan. To date, there have not been any founded complaints.

Q. What changes were made in October 2025?

A. Key updates include:

• The criterion requiring advertising to be objective, factual and accurate was modified to recognize departmental subject matter expertise and the existing responsibilities of deputy ministers for compliance. Departments may accept or reject recommendations from Ad Standards and must attest to the factual accuracy of advertising content.
• For all other criteria, departments must continue to revise advertising creative to address any issues identified by Ad Standards before campaigns go to market.
• The criterion related to political party slogans was clarified to exclude slogans that originate from election platform commitments that are subsequently incorporated into the official name of a Government of Canada program, policy or initiative.

Other federal policy requirements also apply to advertising. Notably, the Directive on the Management of Communications and Federal Identify requires departments to ensure that programs requiring parliamentary approval or trade deals requiring ratification are not advertised until such approval has been obtained.

Q. How many campaigns have been reviewed since these changes came into effect, and what were the results?

A. From October 20, 2025, to March 31, 2026, Ad Standards reviewed 32 advertising campaigns. During this period, Ad Standards made 32 recommendations and identified two instances where modifications were required. All advertising creatives were deemed to have completed the review process.

Q. What constitutes non-partisan communications?

A. In the context of the Government of Canada, non-partisan is defined as:

• objective, factual and explanatory
• free from political party slogans, images and identifiers; bias; designation; or affiliation
• the primary colour associated with the governing party is not used in a dominant way, unless an item is commonly depicted in that colour
• advertising is devoid of any name, voice or image of a minister, member of Parliament or senator

Background

In October 2025, TBS updated advertising review criteria to clarify and streamline the process while maintaining safeguards against partisan elements. These changes, which will be piloted over a 12-month period, responded to operational challenges identified by departments and to evolving information needs in a more uncertain global environment.

Key updates include:

• Greater flexibility: The criterion to ensure that advertising is objective, factual and accurate was modified to recognize the subject-matter expertise within departments and existing responsibilities of deputy ministers and heads of communications in ensuring compliance.
• Removing subjectivity: The criterion related to” self-congratulatory in nature” was removed, as it was subjective, not well understood and applied inconsistently. Furthermore, it did not directly align with the policy definition of non-partisan communications.
• Removal of duplicative restrictions: An existing policy requirement prohibiting advertising before parliamentary approval or trade agreement ratification was removed. This requirement already exists in the Directive on the Management of Communications and Federal Identity, making the stand-alone criterion redundant.
• Refined criterion on slogans: The restriction on partisan-associated slogans no longer applies when they originated in a political party platform but have since become the official name of a government program, policy or initiative. Political slogans not tied to official program names are not permitted.

Issue

What is TBS’s reaction to the May 4, 2026, Commissioner of Environment and Sustainable Development’s audit on progress of federal departments to become more resilient to the climate impacts?

Response

We agree with the recommendations from the Commissioner of Environment and Sustainable Development’s audit on protecting federal assets, services and activities from climate change.

Climate change is one of the greatest challenges of our time.

The Government of Canada is committed to making its operations net-zero emissions, climate-resilient and environmentally responsible.

The Greening Government Strategy is a blueprint for coordinating and advancing federal emissions reduction, climate resiliency and greening government initiatives in the government’s operations, including real property, fleet and procurement.

The TBS Centre for Greening Government coordinates the Greening Government Strategy: A Government of Canada Directive and the Policy on Green Procurement, while departments are responsible for implementation.

Background

Through the Greening Government Strategy: A Government of Canada Directive, the Government of Canada has committed to enhance the climate resilience of its critical assets, services and operations by 2035.

Canada is one of the only governments in the world that has established climate resilience commitments for its own operations. In doing so, disruptions to services and activities will be minimized. By taking action to enhance climate resilience, departments can also reduce eventual costs incurred from damage to their real property or mobilization of their resources resulting from extreme climate events.

The Commissioner of the Environment and Sustainable Development’s audit, Protection Against Climate Change, focuses on the effectiveness of measures taken by the federal government to protect assets from the impacts of climate change and whether TBS led the Greening Government Strategy to enhance climate resilience of federal assets, services and activities. The audit also assesses the progress of key departments such as Fisheries and Oceans Canada, National Defence, and PSPC in safeguarding their assets, services and activities from climate change.

The audit concluded that there were gaps in TBS’s oversight of climate resilience commitments in the Greening Government Strategy and that the departments evaluated had made limited progress in implementing actions to proactively enhance the climate resilience of their assets, services and activities.

The federal government manages over 34,000 buildings and 20,000 engineering assets with a replacement value of more than $100 billion, underscoring the urgent need for proactive action to reduce the risk of climate impacts on these assets. Protecting these buildings and assets also minimizes the risk of interruptions to the delivery of critical services to Canadians.

The Centre for Greening Government works closely with departments in meeting the commitments 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
• working with PSPC on common procurement tools that incorporate greening criteria

Issue

What are the key items included in the 2026 Spring Economic Statement?

Response

The Spring Economic Statement builds on the momentum from Budget 2025 with strategic investments that support productivity, growth and competitiveness:

• getting nation-building infrastructure built across Canada
• supporting workers and young people
• supercharging the housing sector and making it easier to afford a home
• investing in stronger and safer communities

It also includes a 20% reduction in external consulting services over three years, delivering savings of $450 million in 2027–28 and $900 million annually thereafter. This furthers our commitment to spending less on day-to-day operations so we can invest more in Canada’s future.

Background

The Spring Economic Update projects the federal budget deficit for 2025–26 to be $66.9 billion, lower than the $78.3 billion projected in Budget 2025. Key announcements include:

• $25 billion over three years to seed the Canada Strong Fund, a sovereign wealth fund that will be managed by a new Crown corporation; the fund will invest in strategic Canadian projects and companies alongside other investors, with a clear objective to achieve commercial returns to build the wealth of Canada
• Team Canada Strong, an initiative to recruit, train and hire 80,000 to 100,000 new Red Seal skilled trades workers by 2030–31
• $103.8 million over five years, starting in 2026–27 and $22.3 million ongoing to establish and operate the Defence Investment Agency as a stand-alone entity, along with proposed enabling legislation and amendments to the Defence Production Act to provide the agency with expanded authorities
• proposed amendments to the Canada Pension Plan that would implement a reduction in the contribution rate in the base Canada Pension Plan (CPP) from 9.9% to 9.5%, effective January 1, 2027
• updating the Buy Canadian Strategy by launching a new Small and Medium Business Procurement Program later this spring to make it easier for Canadian firms to compete and win in federal procurements
• a proposed amendment to the Red Tape Reduction Act to add the Official Languages Act to the list of exempted statutes for regulatory sandboxes
• reducing spending on external management and other consulting services by 20% over the next three years, achieving savings of $450 million in 2027–28 and $900 million annually from 2028–29 onward; in 2024–25, the government spent $5.1 billion on management and other consulting services (22% of spending on professional and special services: $23.1 billion):
  • management and other consulting services includes professional services related to advisory and technical services, IT support, engineering and scientific advice, and training

To stand up a new Financial Crimes Agency, the government proposes to provide:

• $352.7 million over five years starting in 2026–27, with $57.8 million in remaining amortization and $82.1 million ongoing to the agency
• $46.2 million over five years and $11.5 million ongoing to the Public Prosecution Service of Canada
• $19.6 million over five years and $1.5 million ongoing to the Department of Finance Canada