Public Accounts Committee on Dec. 14th, 2011

[RAdm Andrew Smith]

That is correct.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

Thank you.

I have some questions about the procedures and systems considered to be insufficient. The document we received mentions computer problems, which have been fixed.

Could you tell me what the problems were and what was done?

[RAdm Andrew Smith]

Could you repeat your question?

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

The action plan we received indicated that the computer problems were fixed.

[RAdm Andrew Smith]

That is correct. In 2010, we made some major changes. In the fall of 2011, we also adopted a series of changes to our computer system. As problems are discovered in the system, they are fixed.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

Could you tell me about web-enabling for self service, which was considered to be insufficient? Was this incorporated?

[RAdm Andrew Smith]

Are you specifically referring to the calculator?

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

I do not have other details; the report mentions “web-enabling for self service”.

[RAdm Andrew Smith]

In the past, when the administrative aspect fell under another assistant deputy minister, there were two systems and two websites. We will combine them to have a single website, so that reservists have one place to access all of the required information.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

In your opinion, will the improvements that you briefly mentioned considerably help reduce the processing and examination time needed for the files?

[RAdm Andrew Smith]

In terms of processing times, I'll just correct one thing. When we started this endeavour, the processing times for the files were in the order of 150 hours per file. That is just a further indication of the complexity associated with going through manual records.

Due to the efforts put in place, we're now down to about 100 hours, and that number of hours per file will decrease over time as we automate more of the records.

As for the website that I speak of, I don't necessarily see it affecting the processing times. I see those as two independent pieces, but in relation to processing times, it is instructive to note that each individual file can involve up to 10,000 line entries for somebody to pour through to confirm the rates of pay, the timing, the periods in question, and on service and not in service. That's an indication of just how complex this undertaking can be.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

I understand that the process is complex and that it requires many hours of work. What is the backlog right now? Do you think you can eliminate this backlog for processing files?

[RAdm Andrew Smith]

Are you asking me whether we will be able to eliminate the backlog in question?

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

What is the current backlog? Do you think you will be able to eliminate this backlog?

[RAdm Andrew Smith]

Right now, we have a backlog of around 12,000 applications.

Again, it is instructive to have a look at how that 12,000 number is broken down. Fully 83% of those applications refer to people who are still in service today and not yet in a position to receive a pension. That does not in any way diminish the fact that they need to have information in place to enable them to make informed decisions about a buyback. So that's an acknowledged challenge going forward, to make sure that we can provide them the information in a timely manner to make informed decisions.

Of the remaining 17% of the 12,000 files—amounting to almost 2,000 files—for the people who are retired or are retiring, 56% or just over 1,100 have already been processed. The other 871 files in question are in various stages of audit evaluation and final checking for us to be able to present the pension cheques in question.

I don't diminish the challenge in front of us, but it is instructive to put into context that 83% of those files are for people who are still serving today.

[The Chair, NDP, David Christopherson]

The time has expired, so I thank you both.

Mr. Kramp, you have the floor, sir.

[Daryl Kramp, Conservative, Prince Edward—Hastings, ON]

Thank you, Chair.

Let me at this time speak on behalf of all reservists in Canada, and I know I certainly speak for a local organization. Of course, I'm from the proud home of the Hasty P’s, who have a tremendous history of participating in this. I guess this is the first new piece of federal pension legislation in 40 years, so we're delighted to see it. Imperfect as it is, at least it's a significant move forward, and we thank you for that.

I'll deal with the triage issue in a subsequent question, but first, the Auditor General has said this is good news and bad news. The good news, of course, as I mentioned, is that we're finally doing something to address the needs here.

There were a number of valid concerns registered by the Auditor General. So, Mr. Fonberg, or whoever feels comfortable responding to this, I'd like to know what you are doing with the recommendations that were put forward. What is the status of your response in dealing with the recommendations? There are a number of them. I don't know if we have time now to go through each and every recommendation, but I would like to be comfortably assured that you're dealing with these issues and are placing a priority on an effective response.

[Robert Fonberg]

Mr. Chairman, I'll turn to the rear admiral on that question.

[RAdm Andrew Smith]

Thank you for the question.

I'll address each recommendation. There is one recommendation, but there are really four sub-components of it, and I'll come at those in turn, if I may.

On the first one with respect to hiring and training of staff, both prior to the audit and post-audit, we significantly increased the staff horsepower associated with addressing the backlog. When the plan came into place in March 2007, we had 132 staff in place to address this. In advance of the plan coming into place, we had hired 40, so we went from 92 to 132 staff. Between coming into force on March 1, 2007, and July of 2010, we hired another 70 people to bring it up to 202. Since that time, we have hired and trained another 30 people to address this.

We have a total of 232 people today dedicated to addressing the backlog. We continue to look on an ongoing basis at the value proposition associated with hiring more people, conscious, of course, of the cost that would be against the plan itself. So that's an ongoing piece we look at and continue to evaluate. That's the first piece.

On the second one with respect to system improvements and administrative processes, I spoke previously about some of the systems changes that were put in place, both in the fall of 2010 and the fall of 2011. We continue to look at doing that on an ongoing basis. Some of the problems associated with that early on related to the fact that the system was really geared in much the way it would be for a regular force pension plan or a public service pension plan dealing with straightforward cases. They weren't necessarily well set up to deal with the unique part-time cases associated with the reservists. So we have continued to put those changes in place.

With respect to the recommendation to redesign administrative processes, the military pension renewal project will certainly amend the business processes associated with pension administration. But with respect to the manual record-keeping going forward, it continues to be a manual process, and that, regrettably, is what it is, and we're going to have to deal with it as we work through the backlog.

With respect to the performance reporting part of the recommendations, we have implemented a rigorous quarterly reporting piece that will be reported both to me and, three times a year, to the Canadian Forces Pension Advisory Committee, which I chair. That committee has representatives from the army, the navy, the air force, and the reserve community at the senior leadership level. The reporting will then be disseminated back through their respective chains, and we will look to place those performance reports on the website as well.

With respect to improved communications, I spoke previously about the proposal to combine the two websites into one on a trial basis by March 2012, with a final version no later than December, a year hence. We have conducted town halls to get the word out. There is a reserve force pension communication working group, under the auspices of the chief of reserves, to help get this word out. We continue to have a call centre with nine people dedicated during business hours to addressing concerns related to administration, and we have our own internal messaging vehicle by which we endeavour to get the word out as well.

Those are some of the specific pieces associated with the recommendation. I am confident that we're on track. We've gained a lot of experience in the four years since the plan was put into place. We've increased staff capacity. The communications have improved. The processing time for a file has gone down significantly. We have completed over 11% of the files. There is a management action plan in place to address it, monitor it, and report on it.

I would submit, Mr. Chair, that we're on track and we know where we are.

[Daryl Kramp, Conservative, Prince Edward—Hastings, ON]

Thank you.

Do I have another second, Chair?

[The Chair, NDP, David Christopherson]

No, you don't.

[Daryl Kramp, Conservative, Prince Edward—Hastings, ON]

Thank you. I thought I would try.

[Voices]

Oh, oh!

[The Chair, NDP, David Christopherson]

I appreciate that, Vice-Chair. The nod is appreciated.

Moving along, Monsieur Dubé, you have the floor, sir.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Thank you, Mr. Chair.

I thank our guests for being here.

Like my colleague, I see how important this type of program is. However, it still requires a certain degree of efficiency to be fully effective.

My questions will be in the same vein. Since the start of this meeting, there has been a lot of talk about the complexity of the challenge this system represents.

Senior officials at your department identified the major risks that could be encountered with this project. If you were not aware of this in the beginning, why did you not take measures to perhaps mitigate the problems highlighted in the auditor general's report?