Frequently Asked Questions (FAQs)

Pay Modernization Project

What is the Pay Modernization Project all about?

Public Works and Government Services Canada (PWGSC) received Treasury Board approval to proceed with the Pay Modernization Project, which will modernize the Government of Canada (GC) pay system.

The goal of the Pay Modernization Project is to replace the 40-year-old Regional Pay System (RPS) with a modern, commercial, off-the-shelf pay system. The duration of this project is 6 years, starting in 2009-2010 and ending in 2015-2016. Once implemented, the modernized system will establish a platform for more efficient compensation processes. This project will provide a new pay system that will benefit all departments. It will offer extensive Web capabilities for managers and employees of departments using the government-endorsed GC Human Resource Management System (PeopleSoft).

What does the pay system do?

The pay system administers the payroll for more than 300,000 employees within 110 departments and agencies, the largest payroll in Canada. It carries out approximately 8.9 million annual transactions valued at approximately $17 billion.

Why is the pay system being replaced?

There are several important reasons why the Pay Modernization Project is going forward.

The Government of Canada is concerned about the long-term sustainability of the pay system operated by PWGSC. It is more than 40 years old with several generations of workarounds and patches. Its maintenance is dependent on the specialized knowledge, skills and experience of employees, many of whom are due to retire within the next few years.

It is difficult and expensive to make changes to the current pay system. The current pay system is unable to meet increasing employee and client demands for greater efficiency and variety in service options. It is also increasingly difficult to meet timelines associated with changes needed as a result of collective bargaining.

A pay benchmarking study identified that the Government of Canada falls in the bottom range of performance measures for cost and quality/efficiency. Examples of inefficiency include the requirement for duplicate entry of data stored in departmental human resource systems and in the pay system and the extensive manual work processes.

What are the main benefits of a new pay system?

The new pay system will ensure the long-term sustainability of the GC Payroll Administration as it will be less dependent on aging technology.

It will also provide employees and managers of departments using the GC Human Resource Management System (PeopleSoft) with self-service capabilities that will not only improve efficiency but also reduce the timeframes to process pay transactions and payments.

The new system will significantly reduce errors and delays associated with duplicate data entry, manual paper-based processes, etc. by providing seamless integration with the GC Human Resource Management System (PeopleSoft).

Will PWGSC be developing a new system?

No. PWGSC will replace the existing pay system with a commercially available off-the-shelf pay solution that uses modern, widely-used technology based on industry standard practices. Software and services required to implement the new system will be acquired, through open competition, from a qualified, experienced private sector company. Not only will the existing system be replaced with an industry-leading technology, but industry standard business processes will be adopted. The new system will be implemented by 2015-2016.

Will there be job losses as a result of this project?

The impact of the new pay system on the current operations will not be known until the system is acquired and the necessary analysis is completed. Once the new pay system is implemented (2015-2016), automation will likely change the nature of the activities within the compensation community. As a result, new roles that rely on different skills and/or competencies may be identified. The project will develop a long-term plan that will identify any new or emerging roles, along with a strategy to ensure all staff can acquire the skills and competencies they need under the new service delivery model.

Where can I find more information on the Pay Modernisation Project?

A communication plan is being developed. A Web site is being developed and will be updated on a regular basis. It will include a project schedule with upcoming communications events.

How can a new solution ensure the exact application of thousands of compensation rules?

The project team has documented the business requirements needed to implement a new pay solution with the help of experienced staff. Using these requirements, PWGSC will replace the existing pay system with a commercially available off-the-shelf pay solution that uses proven technology based on industry standards.

How long will PWGSC continue to support the Regional Pay System?

Until the new pay solution is made available for all departments and agencies, PWGSC will continue to support the Regional Pay System. It is expected that the new pay system will be implemented in 2015-2016 in all departments and agencies.

What makes you think that this project will be successful; PWGSC has tried to replace the pay and pension systems in the 1990's and failed?

In the 1990's,the Public Service Compensation System (PSCS) Project was based on a recommendation that the new pay and pension systems would be designed and built from scratch to account for the complex nature of compensation administration.

Today, PWGSC is working to replace the existing pay system with a commercially available off-the-shelf pay solution that uses modern, widely-used technology based on industry standard practices. Software and services required to implement the new system will be acquired, through open competition, from a qualified, experienced private sector company. Not only will the existing system be replaced with an industry-leading technology, but industry standard business processes will be adopted.

How will the service be better?

The Pay Modernization Project will improve access to services for clients through the use of Web self-service. At the same time, the new pay system will reduce the potential for errors, not only because it will be a more robust but also because its integration with departmental Human Resources (HR) management systems will reduce the current level of duplication in employee pay data entry.

Will the work of the Compensation Advisors change?

Yes. Once the new pay system is in place, new business processes will be adopted and these changes will come into force in all departments, irrespective of the HR application they use.

The introduction of increased self-service functionality will allow employees to have better control over their own pay administration and thus reduce the number of basic-level enquiries. This decrease in overall volume will allow the compensation advisors to concentrate on more complex cases, expanding on their advisory role.

Pension and Insurance Benefits Statement

General

What is the Consolidation of Pay Services Project all about?

The Consolidation of Pay Services Project will gradually transfer pay administration services to a Pay Centre of Expertise within PWGSC starting in the Spring 2012 with those departments using the Government of Canada endorsed Human Resources Management System (PeopleSoft). The project will provide continued sustainability of pay services and more consistent service delivery.

What are the benefits and objectives of the Consolidation of Pay Services Project?

Consolidation of pay services will provide continued sustainability of pay services and more consistent service delivery while addressing the high attrition and turnover rates in the compensation community.

As a result, this will provide and support more efficient Government of Canada pay administration at significantly reduced costs, providing savings of up to $78.1M per year, starting in 2016-2017.

What is the Pay Centre of Expertise and who will manage it?

The PWGSC Pay Centre of Expertise will provide pay services to employees and managers starting with departments using the Government of Canada endorsed Human Resources Management System (PeopleSoft). As part of its role to provide pay administration to the Government of Canada, the Pay Centre of Expertise will be managed by the Accounting, Banking and Compensation Branch of PWGSC.

Where will the Pay Centre of Expertise be located for the first Wave?

The Centre of Expertise will be located in Miramichi, New Brunswick (NB), in the Miramichi Mall located at 408 King George Highway.

Why is there a need to consolidate pay services to a Pay Centre of Expertise? Why change the way we do things?

There is a high turn-over and attrition rate of expertise among compensation advisors. This high competition for compensation expertise is exacerbated by an anticipated short-term attrition rate of compensation advisors due to retirements. This is causing major problems in the delivery of accurate and timely pay services in departments.

The Consolidation of Pay Services Project will provide continued sustainability of pay services and more consistent service delivery to employees across the Government of Canada, while addressing the high attrition and turnover rates in the compensation community.

What are the timelines and key milestones for the Consolidation of Pay Services Project?

Pay services will be consolidated for departments using the Government of Canada endorsed Human Resources Management System (PeopleSoft) along the following schedule:

  • Wave 1 – March 2012 to August 2013 (18 months), with 20 000 accounts transferred by stages.
  • Wave 2 – September 2013 to February 2015 (18 months), with 40 000 accounts transferred by stages.
  • Wave 3 – January 2015 to December 2015 (12 months), with 32 000 accounts transferred by stages.
  • Transfer of the 92,000 remaining accounts with the implementation of the new pay solution – Spring 2015
How can I get more information?

If you have specific questions about your particular situation, you should consult your manager who can advise you on the details of your departmental transfer plan, as well as support systems available in your department. A monthly newsletter Compensation Focus: Transformation, launched in December 2010, and the Transformation of Pay Administration Initiative Web page will also keep you informed of the most recent developments.

Transfer Schedule

What is the plan for transferring work from departments to the Pay Centre of Expertise?

PWGSC is working in close cooperation with departments to transfer work in a gradual, measured and deliberate manner. Departments are working with PWGSC to determine which accounts will be transferred and the associated timing, using various selection criteria. This planned approach will ensure that departmental service delivery continues without disruption and that individual employee transition plans are put into effect.

I have just been notified that I am in Wave X. Is there any possibility of my department's pay services being transferred to a later wave?

The Order-in-Council giving authority to PWGSC to provide pay services as per the announced schedule has been approved by the Governor in Council. Making changes to the schedule is not possible.

Service Standards

What services will be provided at the Pay Centre of Expertise?

The Pay Centre of Expertise will provide the same compensation services currently offered in departments and agencies, as outlined in the Common Human Resource Business Process (CHRBP). A list of these services can be obtained from your manager.

How does this affect my clients? How are my clients going to be advised of the changes?

Employees and managers will be informed as to how they will be serviced prior to their account being transferred. More detailed information will be provided as we move forward with implementation.

PWGSC will work collaboratively with departments and agencies on developing communications products that will be used by departmental Heads of Human Resources to advise their staff that pay services will be provided by PWGSC's new Pay Centre of Expertise.

What do I need to do to prepare my clients' files for transfer?

We are currently finalizing a detailed instructions and tools that that will define how client files will be prepared for transfer to the Centre. This information will be sent to departments shortly.

I understand that the pension centralization/modernization project resulted in client service delays. How can we be assured Consolidation of Pay Services Project will not encounter the same difficulties?

As with any project of this magnitude and complexity, the centralization and modernization of pension services have experienced implementation challenges. These challenges can be largely attributed to the simultaneous introduction of new technology during the centralization of pension services. While it is true that the Pension Centre's service levels suffered from April to September of this year, measures were taken and the service levels have now largely returned to previous amounts. Currently, 89% of new pensioners can expect to receive their first payment within 45 days of receipt of completed documentation, and improvements continue to be made to further reduce delays.

Similarly, the Consolidation of Pay Services Project is a complex and challenging project. However, we have the advantage of consolidating a large portion of the pay services prior to replacing the current 40-year-old pay system. By leveraging lessons learned from the pension projects, the Consolidation of Pay Services Project will be able to reduce the risk of service level impacts to pay service clients.

How will the Consolidation of Pay Services Project minimize the risk of client service delays?

To minimize the risk of impact on current service levels, the Consolidation of Pay Services Project will occur progressively over the next four years, in four different waves. This will allow newly hired compensation staff the opportunity to acquire the competencies and expertise required to deliver pay services. In order to further maintain current service levels, experienced compensation staff will be hired to provide knowledgeable support over the course of the transition.

Why not create satellite Centres of Expertise across Canada?

The Consolidation of Pay Services Project will improve services because it will be delivered from a single site where Compensation Advisors and support staff will be following standardized business processes. Creating satellite Centres of Expertise across Canada is essentially maintaining the decentralized model that exists today, which does not address the high attrition rate of Compensation Advisors. Furthermore, consolidating pay services in a single region allows for some immediate efficiency savings due to economies of scale.

Retention and Recruitment

How many jobs will be created as a result of the Consolidation of Pay Services Project?

The transformation of pay administration will create approximately 550 public service jobs in Miramichi, NB, starting in 2012, and reaching its full staff complement by 2015-2016.

What is the impact of the transfer of departmental pay services on my job?

The transfer of work to the Pay Centre of Expertise will be done gradually. Reductions will be managed with the help of attrition, retirements, deployments to other parts of an employee's home organization. For those interested in remaining in compensation, an interdepartmental steering and placement committee, comprised of Peoplesoft and non-Peoplesoft departments, has been established to match employees' interests with vacant positions. Individual employee transition plans will be used to identify placement options.

Will Work Force Adjustment be invoked?

Compensation employees will be declared affected at the start of each wave as work transitions to the Pay Centre of Expertise. This will help maximize employment opportunitites.

Can you explain the role of the Employment and Business Continuity Steering Committee (EBCSC) and the Compensation Employee Placement Process and how it can help?

PWGSC has provided key workforce management tools, such as the Transition Toolkit to assist in departmental HR planning and the development of individual employee transition plans. In addition, an interdepartmental Employment and Business Continuity Steering Committee has been established and will assist in ensuring individual employee transition plans are carried out and will monitor progress of the employee placement activities.

The PWGSC Compensation Employee Placement Process will provide both departments and compensation employees with a means through which alternate opportunities in the compensation field will be identified and aligned with individual employment requirements. More details on the process will follow shortly.

What is the recruitment process for the Pay Centre of Expertise?

Recruitment for the Pay Centre of Expertise is ongoing. The next wave of recruitment will start in mid 2012 where deployment, internal and external, processes will be used to staff 197 employment opportunities at the Pay Centre of Expertise.

Between waves, qualified compensation staff interested in a deployment to the Pay Centre of Expertise, should forward their resume, along with a cover letter indicating their interest and associated qualifications to RecrutementMiramichi.RecruitmentMiramichi@tpsgc-pwgsc.gc.ca.

What are the levels of positions that will be created at Miramichi?

Level of positions will be similar to the ones that currently exist in departmental compensation offices. The compensation advisor level will be AS-01 (trainee) and AS-02.

What are the language requirements for such positions?

The language requirements of the positions to be created will be based on operational needs. A significant number will be bilingual as the Pay Centre of Expertise will be providing a national service.

Will my relocation expenses be paid?

Yes, relocation costs will be borne by the Employer in accordance with the NJC Relocation Directive.

Where can I get more information on Miramichi?

Information on Miramichi, New Brunswick is available on the City of Miramichi Web site.

What if I am not interested in moving to Miramichi?

A common government-wide approach to HR planning and staffing, as well as a personalized transition plan for each employee, are being used to successfully manage the workforce during the transition and maximize employment opportunities. PWGSC is actively involved in assisting departments and agencies fill vacancies within their organizations. Key information on existing vacancies is being collected, and PWGSC will create and maintain an ongoing database of available resources. Prior to posting compensation positions, departments and agencies are asked to contact PWGSC to review possible matches in terms of requirements and timing.

In addition, the Employment and Business Continuity Steering committee was established to help ensure the sustainability of pay services and maximize placement opportunities during the transition.

Will movement of staff within the compensation community still be allowed?

PWGSC will work closely with departments and central agencies to ensure that a government-wide approach is adopted to manage the movement of compensation staff during the transition.

How will I be assisted during the implementation of the Consolidation of Pay Service Project?

Compensation employees are critical to the success of the Transformation of Pay Administration project. Some key considerations to successfully manage the workforce during the transition and maximize employment opportunities include a common government-wide approach to HR planning and staffing, as well as a personalized transition plan for each employee.

Can I take early retirement?

The normal rules around retirement will apply throughout the transition and the implementation of the Consolidation of Pay Services Project.

Has the union been involved?

The Consolidation of Pay Services Project formalized its union management consultation framework with the Public Service Alliance of Canada (PSAC) and established the Transformation of Pay Administration – Union Management Consultation Committee (TPA-UMCC) earlier this year.

Various tools have been developed in consultation with PSAC, namely the Workforce Transition Toolkit which is being used by departments to develop individual employee transition plans and will facilitate finding placement opportunities for employees interested in remaining in the compensation field. The bargaining agent will continue to be advised and consulted on a regular basis of project specifics.

Will career planning tools be made available?

Tools have been developed and are available through your manager and Head of HR.

How will employees be kept informed about what is going on?

PWGSC will continue to engage with Heads of HR and will provide communications tools to assist Heads of HR in engaging with compensation staff. PWGSC will continue to provide project updates through Compensation Focus: Transformation, the project's monthly online newsletter.

Training

Will the current compensation advisor be able to fit the future profile for work in the Pay Centre of Expertise with or without training?

A fully qualified compensation advisor should require minimal training. We expect that everyone will need some skills development and orientation around the use of the new technology and procedures.

What kind of training will be offered to new AS-01 compensation advisor trainees?

A professional development program, similar to the one which currently exists in departments, will be used. Those appointed to the AS-01 position will be part of the program which is composed of a combination of classroom, on the job training and coaching. The program lasts 18 months and, if successful, the employee is appointed to the AS-02 working level.