Question Period Note: PAY – NEXT GENERATION PAY SYSTEM

To provide an update on the Next Generation HR and Pay system.

• We continue to work towards creating a long-term, sustainable, and efficient solution to meet the diverse needs of federal employees across Canada. Our priority remains delivering an integrated HR and Pay system that will pay our employees accurately and on time.
• In September 2019, the government committed $117 million to the NextGen HR and pay solution. We are committed to investing what is necessary to pay employees and to this end we have established a list of qualified vendors – Ceridian, SAP and Workday.
• We will establish partnerships with one or more of these vendors for pilot projects to test solutions against the real complexity of federal government HR and pay needs.
• The Government is currently working to identify a preferred vendor to conduct these pilot projects.

Budget 2018 announced the government’s intention to move away from Phoenix and begin development of a pay system that will be better aligned with the complexity of the federal government’s human resources and pay structure.
The Treasury Board Secretariat received $16 million over two years, beginning in 2018-19, to explore replacement options for a next generation human resources and pay solution.
Ongoing stabilization efforts of the Phoenix Pay System remains a top priority for the government and is being pursued by Public Services and Procurement Canada, even as the Treasury Board Secretariat develops options for the next generation system to eventually replace Phoenix.
These options are being identified through a new, gated agile procurement process.
In June, following an innovative and agile procurement process, the government announced it had selected Ceridian, SAP, and Workday as the qualified vendors for the Next Generation solution. These vendors will continue to work with the government to identify the path forward in preparation for the replacement of Phoenix.
In September, the government announced that it will invest $117 million to co-design and deliver pilot projects for the NextGen HR and Pay system.
The government continues to work with stakeholders, such as bargaining agents, employees, and HR and pay practitioners, and will continue to engage in an open and transparent manner, so that the new solution can address the needs of a modern public service and its employees as soon as possible.

KEY FACTS • In June, following an innovative and agile procurement process, the government announced it had selected Ceridian, SAP, and Workday as the qualified vendors for the Next Generation solution.
• In September, the government announced that it will invest $117 million to co-design and deliver pilot projects for the NextGen HR and Pay system.