Question Period Note: “Mission critical: Overhauling federal benefits systems without creating a new Phoenix mess”

An article by David Reevely, published on May 3, 2023 on the independent news platform The Logic, covered the Benefits Delivery Modernization (BDM) initiative that will overhaul programs such as Old Age Security (OAS) and the Canadian Pension Plan (CPP).

The goal of Benefit Delivery Modernization (BDM) is to improve the delivery of Canada’s main statutory benefit programs, including Old Age Security (OAS), Employment Insurance (EI) and Canada Pension Plan (CPP), by replacing the current aging IT infrastructure with a modern platform.

Building off of lessons learned from other large-scale IT transformation intiatives, and to mitigate potential risks, BDM will use three releases to implement the new system for OAS.

This approach involves direct client engagement, comprehensive testing, as well as extensive pilot activities to ensure the safe onboarding onto the new platform.

The first release for OAS is on track for June 2023, with third and final release slated for December 2024.

The next phases of BDM will follow similar approaches for the implementation of the EI and CPP programs onto the new platform.

IF PRESSED

ESDC is making use of extensive research, best practices and lessons learned from both the private and public sectors, Canadian provinces, the United Kingdom, Australia, and the United States, who have successfully undertaken similar transformations.

ESDC will follow a phased approach in the implementation of the new systems in order to efficiently manage possible risks without interrupting benefit payments to Canadians.

ESDC will effectively risk manage the switch to new systems by:

Keeping the existing systems running in parallel for the entire transformation.

Using a phased approach by gradually introducing new systems and processes in accordance with a solid change management strategy.

Minimizing the impact of potential issues by only transferring small groups of clients into the new systems at a time.

Applying change management to help employees embrace, adopt and use new systems.

BDM is a business-led, IT-enabled transformation that will deliver tangible benefits for clients and employers through a broad range of e-services that are easy to use. Canadians will be provided with an enhanced, consistent, and modern client experience. Wait times will be reduced, applications streamlined, and delivery of benefits made more efficient with faster payment of benefits, proactive communication, and status updates to keep clients well-informed.

A long-term, multi-phase BDM Programme will establish a platform that will make the next generation of benefits processing capable of addressing dynamic client expectations, changing business, and economic environment.

The BDM Programme is following an agile approach to implementation – iterative, incremental, and progressive builds – with a strong focus on business change management and risk management. The modernized platform is being implemented incrementally, over 10 years.

The Benefits Delivery Modernization (BDM) Programme is the largest transformation initiative ever undertaken by the Government of Canada.

The goal of BDM is to modernize and streamline the structure, process, performance and client experience of common benefits including Old Age Security (OAS), Employment Insurance (EI) and Canada Pension Plan (CPP).

Improving the delivery of OAS, EI and CPP benefits means modernizing the current information technology systems that they use to operate.

Improvements to BDM will be gradual as elements are tested, piloted, and verified prior to full implementation.

OAS will be the first benefit to onboard onto the BDM platform and will be implemented in phased releases. The first release is scheduled for June 2023, and the full system is planned to be implemented by December 2024.