The work that we do is about people:
children, seniors, persons with disabilities, and the voluntary sector.
It's about giving parents the tools they need to help their kids get a
good start in life, and enhancing the voluntary sector's ability to
enrich the quality of life in Canada's communities. It's about
providing seniors and persons with disabilities with income security and
facilitating opportunities for their full participation in society.
In December 2003, the Government of Canada made a commitment to strengthen
what we do for Canadians. It laid out its vision of a Canada of participation
and inclusion, where everyone is given a hand when it is needed, where
Canadians-individuals, families and communities-are provided the tools to
find their own answers, where everyone has a chance to live a full, rich,
rewarding life.
Social Development Canada was created to support this vision. We cannot do
this alone. Everyone has a role to play. Our partners in the provinces and
territories work with us. Our goal is to be there for Canadians when we are
needed.
This Report on Plans and Priorities 2004-2005 talks about our
objectives. It highlights the programs and activities the Department will work
on to meet the expectations Canadians have of us, including improving support
for children and families, enhancing initiatives for persons with disabilities,
fortifying the Voluntary Sector initiative and implementing new programs for
seniors like New Horizons.
We will continue to deliver and strengthen the established programs that
Canadians count on, such as the Canada Pension Plan and the Old Age Security
program. We will also be looking at innovative ways to modernize service for
Canadians-from the citizen's point of view.
I encourage you to read on and learn more about the Department of Social
Development and our plans and priorities. Canada is known throughout the world
for its innovative social policies, and I am proud to have the opportunity to
help make them even better.
Ken Dryden, P.C., M.P.
Minister of Social Development Canada
I submit, for tabling in Parliament, the 2004-2005 Report on Plans and
Priorities (RPP) for Social Development Canada.
This document has been prepared based on the reporting principles and
disclosure requirements contained in the Guide to the Preparation of the
2004-2005 Report on Plans and Priorities:
- It accurately portrays the organisation's plans and priorities.
- The planned spending information in this document is consistent with the
directions provided in the Minister of Finance's Budget and by Treasury
Board Secretariat.
- It is comprehensive and accurate.
- It is based on sound underlying departmental information and management
systems.
The reporting structure on which this document is based has been approved by
Treasury Board Ministers and is the basis for accountability for the results
achieved with the resources and authorities provided.
Nicole Jauvin
Deputy Minister
Social Development Canada
Date
On December 12, 2003, Prime Minister Martin announced the creation of the
Department of Social Development. Our new department was created to help the
Government achieve its goal of securing and strengthening Canada's social
foundations, while respecting federal, provincial and territorial jurisdictions.
The chart following this section sets out key elements in our accountability
framework.
As it notes, we have defined our vision as "A Canada for all, where
everyone participates and plays an active role." To realize that
vision, our mission is "to strengthen Canada's social foundations by
supporting the well-being of individuals, families, and communities and their
participation through citizen-focused policies, programs, and services."
Since our department's creation we have been establishing ourselves as a
focal point for social policy development, program design and delivery related
to income security for Canadians and social well-being. We have a particular
focus on the needs of seniors, families, children and persons with disabilities.
Our department is actively engaging the private sector, non-governmental
organizations and communities in partnerships to support community development
and the social economy. We work closely with the other departments that share in
federal social policy responsibilities and with international organizations that
provide forums for us to learn from the experiences of others and contribute to
better social policies and programs in other countries. Another key element of
SDC's mandate is the provision of corporate services and service delivery
functions to Human Resources and Skills Development Canada (HRSDC) in addition
to our own department. We provide shared corporate services support to Human
Resources and Skills Development Canada in the areas of human resources,
corporate systems, financial and administrative services, and service delivery
support in the areas of Internet and telephone client service.
SDC provides a solid base of policies, programs and service delivery to
Canadians
SDC has approximately 12,000 employees who are responsible for $53 billion in
spending that benefits Canadians. By far, the largest component of this spending
is for our major income support benefit programs to Canadians, with 97% of SDC's
expenditures directed to income support benefits to Canadians that Parliament
has legislated. These are paid under the Old Age Security program, which is
funded from general tax revenue, and for the full range of benefits from the
Canada Pension Plan, which is a contributory program that is not part of the
consolidated revenue fund.1
Other SDC programs involve operating expenditures, such as those that support
the National Child Benefit. It is one of our programs that support families and
children along with the Early Childhood Development Agreement and the
Multilateral Framework on Early Learning and Child Care through which we work
with provincial and territorial governments. We promote increased community,
private and voluntary sector capacity to promote the inclusion and participation
of all citizens, through the Social Development Partnerships Program and the
Voluntary Sector Initiative. In addition to CPP benefits for persons with
disabilities, programs such as the Opportunities Fund and the new Labour Market
Agreements for Persons with Disabilities with provinces and territories use
grants and contributions to promote the full participation of Canadians with
disabilities in the labour market, learning and communities.
Supporting all these programs is our work to develop and disseminate
knowledge on social policy issues and trends and our progress under the Social
Union Framework Agreement to increase intergovernmental collaboration to advance
social policy. This collaborative approach recognizes the shared jurisdiction in
most social fields, and the need to work with all partners to set goals, focus
resources and take action.
Social Development Canada and Human Resources and Skills Development Canada
(HRSDC) operate in a shared service delivery model, which means each department
has some responsibilities for the other department as well as its own. For
example, SDC is responsible for delivering telephone and Internet client
services for both SDC and HRSDC, while each department is responsible for its
own mail services. SDC also manages program integrity functions, such as the
issuance of Social Insurance Numbers, administration of the Social Insurance
Registry and related responsibilities, which support the work of both
departments. HRSDC is responsible for delivering the programs of both
departments through its in-person service channel, which consists of more than
300 centres located in communities across Canada. This shared service delivery
model was designed to ensure that Canadians receive high-quality and
cost-effective service, by using a common, integrated infrastructure for service
and benefits delivery, thus reducing overlap and duplication.
Social Development
Canada Mandate |
Vision
A Canada for all, where everyone participates and plays an active role. |
Mission
To strengthen Canada's social foundations by supporting the well-being
of individuals, families, and communities and their participation
through citizen-focused policies, programs, and services. We will
achieve this by...reducing barriers and facilitating access to
opportunities; investing in people and strengthening communities;
delivering seamless, innovative, and responsive service, both internally
and externally; working with federal partners, other governments, and
communities; supporting our employees; and serving Canadians with
integrity and commitment. |
|
Income Support |
Inclusion and Participation |
Vibrant Communities |
Investments in Children and
Families |
Service Innovation |
Outcomes |
A Canada where the quality of life and
inclusion for seniors is enhanced and poverty alleviated through
sustainable public pensions, benefits, and supports. |
A Canada where the social and economic
participation of Persons with Disabilities is enhanced. |
A Canada where vibrant and inclusive
communities meet the social development needs of Canadians. |
A Canada where the capacities of
individuals, children, families, and communities are strengthened in
order to promote social inclusion, participation, and well-being. |
A Canada where service delivery is focused
on citizen needs. |
Program Activities |
Canada Pension Plan -Retirement,
Survivors, and Death
Old Age Security/ Guaranteed Income Supplement
|
Canada Pension Plan - Disability
- CPP Benefits - Disability
- CPP Administration
Labour Market Agreements for Persons with Disabilities
- Federal / Provincial / Territorial Agreements
- Administration
Opportunities Fund for Persons with Disabilities
- Contributions
- Administration
|
Social Development Partnerships Program
- Grants and Contributions
- Administration
Voluntary Sector Initiative
New Horizons
Understanding the Early Years |
National Child Benefit Initiative
Early Childhood Development Agreement
Multilateral Framework for Early Learning and Childcare |
Modernizing Service for Canadians -
Research and Development
Enterprise-wide Service Delivery |
Modern Service and Benefits
Delivery |
Corporate and Shared
Services |
Clients: Seniors, Persons
with Disabilities, Communities, Community Organizations, Children,
Families, and Individuals |
Partners: All Levels of
Government, Canadians and their MPs, Employers, Unions, Service
Providers, Community Organizations, Not-for-Profit and Voluntary
Sectors, Non-Governmental Organizations, Research Partners,
International Organizations. |
SDC has expenditures on programs and services of more than $53 billion, of
which 97%, or $51 billion, directly benefits Canadians through the Canada
Pension Plan (CPP) and the Old Age Security (OAS) programs.
CONSOLIDATED TOTAL:
$53,055.6M |
![CONSOLIDATED TOTAL: $53,055.6M](/web/20060119233007im_/http://www.tbs-sct.gc.ca/est-pre/20042005/SDC-DSC/image/Graph.gif) |
SDC's Total Planned
Expenditures |
Statutory Transfer
Payments |
Net Operating Costs |
|
382.2 |
|
|
Add Recoveries in relation to: |
|
|
Old Age Security |
21,553.0 |
Canada Pension Plan |
228.1 |
|
Guaranteed Income Supplement |
5,949.0 |
Employment Insurance
Account a |
511.61 |
739.7 |
Allowance Payments |
438.0 |
Operating Costs |
|
1,121.92 |
Total |
27,940.0 |
Voted Grants and Contributions |
|
285.9 |
|
|
Total Planned Expenditures |
|
1,407.8 |
Canada Pension Plan benefits |
23,569.5 |
|
|
|
|
|
Other - CPP Charges and Recoveries |
|
138.3 |
Total Statutory Transfer Payments |
51,509.53 |
- The Employment Insurance (EI) Account is under the portfolio of
Human Resources and Skills Development Canada (HRSDC) but SDC
recovers costs for services provided to the EI program such as
corporate services and service delivery.
- Total operating costs include costs of human resources,
financial and administrative services and corporate systems for
HRSDC.
- This amount directly benefits Canadians.
- Represents the CPP administrative charges from other
government departments and excludes the SDC CPP administrative
charges reflected as part of operating costs.
|
The 2004-2005 Report on Plans and Priorities outlines Social Development
Canada's policy, program and service delivery priorities for the 2004-2005,
2005-2006 and 2006-2007 fiscal years. It reflects the larger social and
government context in which SDC operates, and the commitment to managing for
results that matter to Canadians.
To focus our resources and priorities, SDC has implemented a citizen-centred
departmental planning framework. We have largely defined our strategic outcomes
and priorities on impacts that we expect to generate in the lives of Canadians
and their communities.
What Drives Our Priorities
Environmental Context
SDC was established in December 2003 to strengthen Canada's social
foundations by supporting the well-being of individuals, families and
communities through citizen-focused policies, programs and services.
SDC is committed to enhancing social citizenship and equality of opportunity
for all Canadians to participate fully in society and in the economy. Both are
at the heart of Canada's fundamental social values. Our planning process has
taken into account a series of major factors that are influencing the social
policies, programs and service delivery that affect Canadians.
Pressures on Families: As a department responsible for
policies and programs that assist and support children, families and
communities, we are aware that the well-being of children is a determinant of
the present quality of life in Canada and our future productivity. At the same
time, we are alert to the growing number of families with children that face
increasing challenges in balancing work and family responsibilities and
providing for the well-being and development needs of their children. Over 70%
of lone parents and both parents in two-parent households are now engaged in
paid work. This means less time and energy for caregiving responsibilities for
children, ageing parents and family members with disabilities.
Demographic Changes: As the department responsible for
federal public pension programs, SDC recognizes the impact of a rising average
age among Canadians. Seniors account for 13% of the population now and, by 2025,
this will increase to 20%. Starting in 2011, the percentage of Canadians
participating in the labour market will fall as baby boomers begin to retire.
The challenge of dealing with our ageing society is leading to an exploration of
better ways to enable people to shift from work to retirement.
Poverty and Social Exclusion: People who have persistently
low incomes are often much less likely to participate fully in society as
citizens, workers, parents, volunteers and caregivers. This is particularly
notable for Canadians with disabilities, with 22% of working age people with
disabilities living below the low-income cut-off, more than double the rate for
working-age Canadians who do not have disabilities. In 2002, 10.2% of children
lived in poverty. Public pensions have resulted in significant improvements in
the quality of life for Canadians, with Canada having the lowest level of
low-income among seniors of Organization for Economic Co-operation and
Development (OECD) countries. However, pockets of poverty still exist among
seniors, with senior women and unattached seniors being particularly vulnerable.
Globalization: In this era of globalization, an educated,
diverse and healthy population, inclusive social protection systems and vibrant
and sustainable communities are critical elements in maintaining and growing a
country's economy and its quality of life. More and more, international
standards and benchmarks are using social policy indicators to measure and
assess performance, and determine weaknesses and strengths. For example, the
United Nations Development Report 2004 ranks Canada fourth on its Human
Development Index, using a complex basket of measures including income,
education and life expectancy.
Canadians' expectations of service delivery and accountability:
Together, the environmental factors are contributing to the need for government
to continually evolve how it delivers information and services, and achieve
results in the most cost-effective manner. While Canadians desire and expect the
same ease of access to information and services, and the reassurance of privacy
that they receive from banks, insurance and other private sector companies,
governments must respond with more integrated services and service delivery and
take steps toward consolidating offerings, whether across single departments,
across many departments or across jurisdictions. These changes demand better use
of available technology while taking the appropriate steps to meet privacy
expectations, and that funds are used with integrity. Overall, interactions
today with Canadians must be citizen-centred and concentrate on accountability
for results.
A social development policy framework for Canada
The creation of SDC provides an opportunity to explore new approaches to
promoting social development and to renew and strengthen effective social
partnerships that respond to the emerging social needs of Canadians. In
2004-l2005, SDC will begin working on the conceptual basis for the design of
an integrated social policy framework and associated plans for the subsequent
implementation, including consultation. The comprehensive social policy
framework that will result will be built on the sound base of social programs
and policies that governments have put in place over the years to support the
well-being of individuals, families and communities and their inclusion and
participation in Canadian society.
The conceptual work and the resulting framework will guide the Department's
new and evolving policy direction over the planning horizon of the next three
years. We will consult Canadians on social issues, and work in collaboration
with provincial and territorial governments, the nonprofit and voluntary sector
and other partners in Canadian society to develop social policies, programs and
services that meet the needs of the 21st century.
Effective support to children and families will be one focus of the
framework. There is strong evidence that highest social investment pay-offs come
from investing in the early years, which lay the foundation for health,
well-being and learning later in life. For example, continued focus on early
learning and quality child care will need to consider what steps are necessary
to ensure that all Canadian children have a good start in life and that families
have the tools they need to provide care and nurturing.
Poverty and inclusion issues will be another focus. Despite significant
improvements in recent years, for example in reducing the rates of children and
seniors in low income situations, far too many Canadians still lack adequate
income and resources to fully participate in society as citizens, workers,
parents, volunteers and caregivers. We will continue to work with disadvantaged
and vulnerable groups in society to enhance their participation and inclusion in
Canadian society, and renew efforts at tackling poverty and exclusion.
Enabling Canadians to manage transitions from work to retirement will also be
a focus within the framework. Although Canada is the only G-7 country, and one
of the few OECD countries, that has taken the necessary measures to sustain its
public pension plan over the long term, the demographic challenge posed by the
retirement of the baby boomer generation, and the ensuing economic and social
repercussions, lead us to look at new and innovative ways of helping Canadians
more effectively manage transitions and reduce risk during their
work-to-retirement years.
The framework will address the need for all players involved in social policy
to work harmoniously, accountably and effectively to better serve the needs of
citizens. For example, although governments have invested substantial resources
to improve the lives of seniors, and have worked together to improve
collaboration on seniors issues, we can do more to ensure that policies and
programs work in coordinated ways across jurisdictional or departmental
boundaries, and produce improved results for Canadians.
As the focal point for social policy in Canada, our framework will look at
ways to strengthen the evidence base on social development issues through the
design and funding of the needed statistics, indicators and research, so that
all jurisdictions and all social development partners can draw on a common
information base to assess issues and options for action.
The emerging issue of the role of the social economy in community development
will be part of our analysis. We expect to consider how to promote innovative
practices in a range of areas: new forms of social enterprise; new approaches to
the voluntary sector; new roles and partnerships with corporate citizens; and
improved government coordination and modernized services.
Modernized service delivery is central to the SDC agenda
We will deliver Old Age Security program and Canada Pension Plan benefits to
an estimated 5.2 million Canadians during 2004-2005. That number is growing,
so service delivery has to be as efficient and citizen-centred as possible.
Both SDC and Human Resources and Skills Development Canada want to transform
service delivery to achieve seamless, single-window services for Canadians
through the Modernizing Service for Canadians (MSC) initiative for which SDC is
responsible. Through this initiative, we are exploring and implementing
fundamental changes that will meet the service expectations of the Canadians who
deal with us, including businesses and the voluntary sector.
The MSC initiative incorporates our ongoing work to improve the Social
Insurance Number system as well as work that began under Government On-line and
the Service Improvement Initiative. This work reflects commitments that the
Government made to Parliament, the Auditor General and to Canadians.
Accountability and effectiveness
The Government and citizens expect departments and agencies to achieve
increased accountability and effectiveness in all their departmental activities.
As a newly-created department, Social Development Canada is in a position to
take a fresh look at how we are organized, how we define and monitor
accountability and performance, and how we assess the effectiveness of our
programs. Our department is implementing the needed governance and
organizational structure, and developing a Management Accountability Framework
to ensure a focus on the actions most likely to generate efficient, effective
results. We will work in 2004-2005 to finalize key building blocks to ensure
effective stewardship and management of the human and financial resources
entrusted to us.
Moving Forward in 2004-2005
As SDC moves forward on this broader approach, an important part of our
agenda will be to pursue two complementary sets of immediate and specific
initiatives.
Meeting specific Government of Canada commitments to Canadians
We will support the Government in meeting the commitments to Canadians that
it set out in the February 2004 Speech from the Throne and subsequent
commitments made by the Prime Minister including:
- Extending the Understanding the Early Years pilot project to enable at
least 100 more communities to identify children whose readiness to learn
is at risk;
- Supporting federal work with the provinces and territories to fill the
gaps in education and skills development and in workplace supports and
workplace accommodation for people with disabilities;
- Advancing the Voluntary Sector Initiative;
- Working with provinces and territories towards the development of a
national early learning and child care program for the 21st century;
- Supporting Government of Canada efforts to work with the provinces and
territories, and stakeholder groups to develop a comprehensive strategy
to increase support for caregivers;
- Evaluate the needs of low income seniors with particular attention on
income security and including the Guaranteed Income Supplement, and
implement the New Horizons for Seniors program to ensure a high quality
of life and full participation in society for Canadian seniors;
- Improving the coordination of Government of Canada policies and programs
for seniors; and
- Developing new strategies to enhance business development programs for
social economy enterprises and for community economic development.
Reaching targets for early action in SDC's longer-term objectives
SDC has identified four corporate-level priorities that will enable us to
meet our strategic outcomes:
- To begin conceptual work for the eventual development of a comprehensive
social development policy framework for Canadians that provides national
leadership in addressing the social development needs of Canadians; and
to implement major initiatives arising from the February 2004 Speech
from the Throne and the March 2004 budget.
- To ensure an integrated approach to policy, programs and service
delivery in a manner that contributes to the highest standards of
management excellence, stewardship, accountability and financial
probity.
- To establish standards of service excellence that protect the integrity
of Social Development Canada and Human Resources and Skills Development
Canada programs on behalf of taxpayers and all citizens, and ensure
Canadians receive timely and relevant service focused on their needs.
- To provide effective and efficient shared corporate services in the
areas of human resources, finance and administration, and systems, for
Social Development Canada and Human Resources and Skills Development
Canada.
The actions to meet the Government of Canada commitments to Canadians and
reach targets for early action in SDC's longer-term objectives are reflected
across the individual priorities and deliverables described under each strategic
outcome in the next section.
The Planning Overview pointed out that Social Development Canada has created
a planning framework with citizen-centred strategic outcomes. The chart below
lists priorities for each of the strategic outcomes, and each of them is defined
in detail in the following sections. Consistent with Treasury Board Secretariat
direction:
- new priorities cover new issues or areas of attention
for a department;
- ongoing priorities are issues or areas of attention
that were identified in the previous Report on Plans and Priorities
(although not necessarily under the same wording) and that would not
normally be expected to end, such as effective management of a major
legislated benefit program; and
- previous priorities are issues or areas of attention
that, while previously identified, are expected to have a defined
timeframe, such as implementation of a major, multi-year government
initiative that has an expected end date.
The corporate priorities set out at the end of the previous section have been
integrated across the strategic outcomes as appropriate. In some cases, they
align with specific strategic outcomes; in others, our actions across a number
of strategic outcomes will contribute to reaching those corporate priorities.
Strategic Outcome |
Priorities for 2004-2005 |
1. A Canada where the quality of life and
inclusion for seniors is enhanced and poverty alleviated through
sustainable public pensions, benefits, and supports |
- Ensure consistent, ongoing service delivery to Canadians
(ongoing priority)
- Inform the international and domestic policy agenda relating to
income security, ageing and seniors across jurisdictions and
governments (ongoing priority)
|
2. A Canada where the social and economic
participation of persons with disabilities is enhanced |
- Provide federal leadership on issues affecting persons with
disabilities (ongoing priority)
- Build strategic partnerships (ongoing priority)
- Enhance community capacity building for persons with
disabilities (ongoing priority)
- Fulfill commitments to Parliament regarding the disability
component of the Canada Pension Plan (new priority)
|
3. A Canada where vibrant and inclusive
communities meet the social development needs of Canadians |
- Provide federal leadership, oversight and coordination in
strengthening the capacity of social non-profit and voluntary
sector (new priority)
- Develop, design and implement the New Horizons for Seniors
Program (new priority)
- Expand the Understanding Early Years initiative (new priority)
- Continue to make strategic investments and work in partnership
with organizations in the non-profit sector that address the
social development needs of persons with disabilities, children
and families, and other vulnerable populations (ongoing
priority)
|
4. A Canada where the capacities of
individuals, children, families, and communities are strengthened in
order to promote social inclusion, participation, and well-being |
- Ensure effective implementation of the National Child Benefit
initiative (ongoing priority)
- Ensure effective implementation of the Early Childhood
Development Agreement (ongoing priority)
- Ensure effective implementation of the Multilateral Framework on
Early Learning and Child Care (ongoing priority)
- Ensure effective implementation of the Child Disability Benefit
(new priority)
|
5. A Canada where service delivery is
focused on citizen needs |
- Provide improvements to the national infrastructure for identity
and integrity (previous priority)
- Develop a streamlined and integrated approach across government
for the collection, use and maintenance of payroll, earnings and
income information (previous priority)
- Continue the development of a Service Strategy and Service
Offerings (previous priority)
- Provide enterprise-wide Internet and telephone client services
for Social Development Canada and Human Resources and Skills
Development Canada (previous priority)
- Simplify and streamline benefits and service delivery (ongoing
priority)
- Develop a strategy and action plan for regional service delivery
(new priority)
|
6. Effective Corporate Services |
- Provide effective shared corporate services in the areas of
human resources, financial and administrative services and
corporate systems to SDC and HRSDC (new priority)
- Support a dynamic workforce (ongoing priority)
- Achieve effective stewardship and accountability (ongoing
priority)
|
Strategic Outcome 1: A Canada where the quality of life and inclusion for
seniors is enhanced and poverty alleviated through sustainable public pensions,
benefits, and supports.
In 2003, 4.1 million Canadians were 65 years of age or older. Their numbers
are expected to reach 6.4 million in 2020-or nearly one in five
Canadians-making them the fastest growing age group in Canadian society.
Seniors today are generally healthier, better educated and economically better
off than seniors of previous generations. They are also enjoying longer lives.
As of 1996, a 65-year-old person had an estimated remaining life expectancy of
18.4 years, roughly half a year more than in 1992, three years more than in 1971
and five years more than in 1921.
While many Government of Canada departments and agencies provide services and
supports that benefit seniors, Social Development Canada makes a particularly
significant contribution to the social well-being of seniors because of its
responsibility for the income support that seniors receive from the Canada
Pension Plan (CPP) and the Old Age Security (OAS) program.2
This strategic outcome focuses largely on our responsibility for overall
policy and program activities related to the material well-being of seniors. It
also includes our increasing attention to broader policy issues related to the
needs of seniors and to an ageing society. Our commitment to innovative and
improved services to seniors through our income support programs is addressed
under Strategic Outcome 5: A Canada where service delivery is focused on
citizen needs. Our commitment to enhancing the participation of seniors in
their communities through the reshaping of the New Horizons for Seniors Program
is integrated with our other community engagement priorities under Strategic
Outcome 3: A Canada where vibrant and inclusive communities meet the social
development needs of Canadians.
This strategic outcome accounts for 92% of all SDC spending. In 2003-2004,
the Old Age Security program provided $27 billion in benefits to Canadians who
were 65 or older and their spouses or common-law partners. CPP retirement
benefits worth $15.9 billion went to 3.0 million individuals. Seniors and those
nearing that age were the vast majority of the 5.2 million Canadians who
received CPP and OAS benefits. Benefits administered under these programs
include: Canada Pension Plan benefits for retirement and survivors, and Old Age
Security benefits such as the basic pension, Guaranteed Income Supplement and
the Allowance.
Our planning takes into account the impacts of an ageing society, whether in
terms of ensuring the continuing strength of Canada's retirement income system
or in terms of considering other impacts on seniors, families and society. For
example, we are seeing rising pressures related to caregiving both for seniors
who need some degree of support to remain independent or for those family
members who provide informal caregiving, including other seniors. Our planning
recognizes the impact of other changes in society as seniors reflect Canada's
increasingly diverse population.
Our planning is increasingly attentive to the diversity among seniors
demonstrated through their age groups. For example, people nearing the age of 65
face issues relating to the transition from work to retirement and caregiving
for others. Those between 65 and 80 are interested in social inclusion and
active living issues. Seniors who are older than 80 tend to face issues related
to health, greater needs for appropriate housing, home care, transportation and
other services, as well as increased social isolation.
We have two broad priorities to support this strategic outcome: to ensure
consistent, ongoing service delivery to Canadians; and to inform the
international and domestic policy agenda relating to income security, ageing and
seniors. For citizens, the result of these activities will be up-to-date
policies and responsive programs that meet the needs of seniors today and
tomorrow.
Strategic Outcome
1: A Canada where the quality of life and inclusion for
seniors is enhanced and poverty alleviated through sustainable public
pensions, benefits, and supports 1. |
Funding
(millions of dollars) |
Authority (Restated)2 |
Planned Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Gross Operating Expenditures |
224.9 |
232.1 |
232.0 |
228.9 |
Statutory Transfer Payments: |
|
|
|
|
Old Age Security3 |
26,902.4 |
27,940.0 |
28,975.0 |
n/a |
CPP Benefits Payments3 |
19,505.4 |
20,401.4 |
21,312.6 |
n/a |
Total |
46,632.7 |
48,573.5 |
50,519.6 |
|
Full Time Equivalents |
2,868 |
3,055 |
3,055 |
2,999 |
- The above figures include 450 FTEs and $25 million related to
ISP telephone services which also serve to support Strategic
Outcomes 2 and 5. For further information on how these resources
will benefit Canadians, please refer to the section entitled
Strategic Outcome 5: A Canada where service delivery is focused
on citizen need.
- Restated authority as a result of the December 12, 2003
restructure of Human Resources Development Canada (HRDC) into
Social Development Canada (SDC) and Human Resources and Skills
Development (HRSDC).
- Forecasted expenditures for the Canada Pension Plan (CPP) and
Old Age Security (OAS) are available only for the planning years
2004-05 and 2005-06.
|
Ensure consistent, ongoing service delivery to Canadians (ongoing priority)
In addition to the service improvements and innovations that are discussed
under Strategic Outcome 5: A Canada where service delivery is focused on
citizen needs, SDC has a fundamental program administration role related to
the overall management and delivery of the Canada Pension Plan (CPP) and Old Age
Security (OAS). For example, we will be prepared to deal with a projected:
- 807,747 applications for OAS/GIS benefits;
- 226,935 applications for CPP retirement benefits;
- 4,011,815 transactions related to maintaining OAS and CPP accounts
(excluding Canada Pension Plan Disability transactions); and
- 4,100,268 calls from Canadians related to CPP and OAS issues.3
We will continue these and other services to Canadians through the ongoing
delivery of information, benefits and services with respect to public pensions.
We will uphold our service commitments to clients across Canada - both through
our regional operations and at national headquarters.
One focus of this work will be the development of social security agreements
with other countries.4
The agreements ensure that people who have lived and worked in other countries
can receive any pensions that they may have earned. As such, they provide
enhanced social security protection to migrants. In 2004-2005, we expect to
sign agreements with Estonia, Latvia and Lithuania; conduct implementation
discussions with Turkey; renegotiate the existing agreement with France; and
initiate negotiations with Japan.
Inform the international and domestic policy agenda relating to income
security, ageing and seniors across jurisdictions and governments (ongoing
priority)
A study by the Organisation for Economic Co-operation and Development of nine
developed countries notes, "Canada is the country with the least problems
in ensuring pensioners' economic well-being and protecting vulnerable
groups".5
That achievement is demonstrated by the 22% rise in the average income of
Canadian seniors between 1981 and 1998, compared to only 2% for people aged
16-646.
It reflects the success of Canada's diversified retirement income system, which
includes:
- Old Age Security (OAS), the Guaranteed Income Supplement (GIS), and the
Allowance which provide a basic income to seniors (and near seniors) and
are funded directly by the federal government;
- the Canada and Quebec Pension Plans which are funded by employers,
employees, self-employed persons and by investment earnings managed by
the CPP Investment Board (CPP is governed jointly by the federal
government and the provinces);
- private pension plans and Registered Retirement Savings Plans;
- tax measures designed to reduce the tax burden for older Canadians (age
credit and pension income credit); and
- provincial low-income supplements (in 8 of 10 provinces).
Even with this progress, there are gaps to be addressed. In 2002, 6.9% of
seniors had incomes that were below Statistics Canada's after-tax low-income
cut-offs.
Many of today's seniors and the people of working age who will make use of
public pensions in the future are different from the generation for which the
CPP and OAS were designed initially. New family structures, the ongoing impacts
of social changes such as emerging demands for equality and inclusiveness, and
the impact of the Canadian Charter of Rights and Freedoms are factors
affecting policies relating to seniors and ageing, and to Canada's retirement
income system.
Other issues include the changes in Canadian retirement patterns due to early
retirement, changing patterns of workforce participation and increases in life
expectancy. In 1995, men spent 17.3% of their lifetime in retirement, 13 more
years than 1960, while women spent 27.6% of their lifetime in retirement, 22.5
more years than in 1960. Some seniors participate in the paid workforce and many
others say that they would work past 65 if they could. In 2001, 6% of the
population 65 and over had jobs, of which 42% worked part-time.
Incremental adjustments in public pension programs have provided some
responses to these demographic and social factors, as well as to the fiscal
implications of an ageing, changing, and growing senior segment in Canadian
society. Changes to CPP financing have put the Plan on a sustainable fiscal
foundation; however, pressures will continue to emerge and potentially
accentuate what are now relatively small gaps in the effectiveness of these
programs and seniors policies in general.
SDC will respond to these changes by initiating research and analysis to
identify issues, challenges and opportunities related to an ageing society,
seniors and other client segments. This work will include an examination of
potential options for OAS and CPP that could address the needs of low-income
seniors, changing work-to-retirement transitions and changing social
relationships. This process will be linked to the regular three-year review of
the Canada Pension Plan by federal and provincial Ministers of Finance and
proposed amendments to the CPP's sister plan - the Quebec Pension Plan.
As a federal focal point for seniors, we will build on the support the
Department provided in the preparation of the Report of the Prime Minister's
Task Force on Active Living and Dignity for Seniors, with a particular
emphasis on establishing and strengthening collaborative relationships. This
will help develop a sound foundation for policies that are coherent among all
departments and agencies within the Government of Canada and with provincial and
territorial partners.
Consistent with this objective, we will begin to engage federal departments,
provinces and territories in a process to map and align policies, programs and
services for seniors across jurisdictions. Action on the needs of low-income
seniors will be the initial focus of our efforts to engage potential partners.
Canada provides leadership on public pension issues through the International
Social Security Association (ISSA). At a time when many developing countries and
those that are building market economies are exploring how best to meet the
pension needs of citizens in effective, sustainable ways, there is substantial
interest in the Canadian experience. Canada also draws on ISSA contacts to
identify best practices and lessons learned in other countries that may be
relevant to Canadian needs. In 2004, we will take part in the ISSA General
Assembly, which will discuss the Canadian-chaired ISSA Initiative. The
Initiative has focused on two primary areas: social security protection for
individuals and communities around the world and the protection of rights to
social security under private and public pension schemes. It has involved
studies of key issues affecting pension policies and programs and we expect to
work with the ISSA Secretariat to ensure that the Initiative's results help to
inform policy choices internationally.
Strategic Outcome 2: A Canada where the social and economic participation of
persons with disabilities is enhanced
Disability affects millions of Canadians and their families. In 2001, one in
eight (3.6 million) Canadians reported that they had participation or activity
limitations. Of them, 180,000 were children (3.3% of all children), nearly 2
million were between the ages of 15 and 64 (14.6% of that group) and nearly 1.5
million were 65 or older (40.5% of that entire group and a majority of seniors
75 and older). There are approximately 2 million persons with disabilities who
receive help from family members with everyday activities because of disability.
The Government of Canada is committed to enabling Canadians with disabilities
to be included as full citizens throughout our society and economy. While many
Government of Canada departments and agencies provide services and supports that
benefit persons with disabilities, Social Development Canada makes a
particularly significant contribution. The Government has given us the lead role
in disability issues at the federal level, based on our department's
responsibility for, and investments in, policy and program activities that
encourage the social and economic participation of people with disabilities, as
well as our ongoing partnerships with other levels of government and the
disability community. The Government demonstrated this commitment when it funded
an integrated package of measures in the 2004 budget for persons with
disabilities including an amendment to the CPP legislation that would allow for
automatic reinstatement of disability benefits for eligible recipients. With the
new measures announced in the 2004 budget, $222 million will be directed to help
people with disabilities through the Multilateral Framework for Labour Market
Agreements for Persons with Disabilities, and $26.7 million will be directed to
help people with disabilities through the Opportunities Fund.
SDC's initiatives with specific impacts on Canadians with disabilities
include: Canada Pension Plan disability benefits; federal contributions to the
provinces and territories for employment oriented programs and services funded
through Labour Market Agreements for Persons with Disabilities; and funding for
other employment programs for persons with disabilities through the
Opportunities Fund. Other SDC programs, such as the Social Development
Partnerships Program - Disability Component, aim to increase the capacity of
the disability community to promote the social well-being of persons with
disabilities. More information on the Social Development Partnerships Program
can be found in the next section.
This strategic outcome focuses on how SDC policies and programs benefit
Canadians with disabilities. Our commitment to innovative and improved service
delivery to Canadians, including those with disabilities, is reported under
Strategic Outcome 5: A Canada where service delivery is focused on citizen
needs.
The basis for SDC planning under this strategic outcome is the vision set out
in In Unison: A Canadian Approach to Disability Issues.7
Endorsed by the federal, provincial and territorial Ministers Responsible for
Social Services in 1998, In Unison articulates a shared national vision
for the full participation of people with disabilities, based on the values of
equality, inclusion and independence. The In Unison vision continues to
guide the Government of Canada's own priorities and its collaboration with the
provinces and territories on disability policies and programs.
That vision and SDC planning related to this strategic outcome recognize that
even with the progress made to date, many Canadians with disabilities continue
to experience exclusion and isolation from work, from school and from
communities. For example, 51.2% of working age persons with disabilities are
employed, compared to 82.3% of persons who do not have disabilities. Persons
with disabilities who are working have median earnings that are 17% lower than
median earnings of workers without disabilities. Persons with disabilities are
almost twice as likely to live in a low-income household (27% vs. 14%). Many do
not have the supports they need to maximize their capacity to take a fuller part
in society and the economy, and to accomplish basic tasks.
Many family caregivers of persons with disabilities also face barriers to
full economic and social inclusion. For example, over half of families of
children with disabilities experience impacts on employment. Families of
children with disabilities also have incomes that are 12-17% lower than those
of families with non-disabled children, and are twice as likely to depend on
government assistance, not employment, for their main source of income (17% vs.
8% of families). A majority of families of children with disabilities report
that they need help in balancing family activities with the additional work
involved with caring for a family member with a disability. We also know that a
large majority of adults with disabilities receive help from family. The
severity of the disability increases the importance of the family's role in
caregiving. For more information on how the Government of Canada supports
children with disabilities, please see the section entitled Strategic Outcome 4:
A Canada where the capacities of individuals, children, families, and
communities are strengthened in order to promote social inclusion, participation
and well-being.
SDC planning for this strategic outcome also addresses the importance of
Canada Pension Plan disability (CPP-D) benefits to many working-age Canadians
with disabilities. This year, we expect as many as 295,000 people will benefit
from CPP-D benefits. We have made a range of improvements designed to make the
CPP administration more sensitive to the needs of people with disabilities,
while also meeting expectations that benefits are being targeted to those who
are eligible for them.
In 2004-2005, our efforts under this strategic outcome will focus on the
following priorities: acting on our responsibility for federal leadership for
persons with disabilities; building strategic partnerships with other
jurisdictions, within the Government of Canada, with partners in Canadian
society and others; building community capacity for persons with disabilities;
and fulfilling the CPP-D commitments made to the Standing Committee on Human
Resources Development and the Status of Persons with Disabilities.
Strategic Outcome
2: A Canada where the social and economic participation of
Persons with Disabilities is enhanced. |
Funding |
Authority (Restated)1 |
Planned Spending |
(millions of dollars) |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Gross Operating Expenditures |
61.1 |
64.6 |
64.6 |
64.6 |
Non-Statutory Grants & Contributions |
221.7 |
248.7 |
248.8 |
248.8 |
CPP Disability Benefits2 |
3,100.6 |
3,168.1 |
3,293.6 |
n/a |
Total |
3,383.4 |
3,481.4 |
3,607.0 |
|
Full Time Equivalents |
662 |
870 |
870 |
870 |
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
- Forecasted expenditures for the CPP and OAS are available only
for the planning years 2004-05 and 2005-06.
|
Provide federal leadership on issues affecting persons with disabilities
(ongoing priority)
Social Development Canada's responsibility for leadership on the issues of
importance to Canadians with disabilities is consistent with its broader
departmental goal of providing a focal point for social policy development,
program design and delivery related to income security for Canadians and the
social development of specific groups within Canadian society.
As part of this, SDC will lead the preparation and release of the Government
of Canada's second federal report on disability, the purpose of which is to
assess progress towards the inclusion of Canadians with disabilities and the
contribution of the Government of Canada's disability-related programs and
services.
We will continue to develop and provide sound knowledge on disability issues,
which will enable us to inform policy and program development and build
awareness across all federal departments and agencies. As part of this, and
based on available resources, we expect to implement an action plan in
preparation for the 2006 Participation and Activity Limitation Survey (PALS)
data release. This survey will provide information on Canadians with
disabilities that will guide future decisions. We also will prepare and release
the Access and Inclusion Lens Toolkit, a framework for departments and agencies
to use to ensure that government policy and program initiatives take into
account the needs of people with disabilities.
At a more general level, we will be the catalyst and focal point for ongoing
and emerging government-wide disability initiatives. As part of this work and to
achieve this strategic outcome more generally, we will work closely with the
Assistant Deputy Ministers' Steering Committee representing the departments most
involved with disability issues and with voluntary sector representatives, as we
work toward improved coherence and integration of all federal policies and
programs for persons with disabilities.
The same commitment to federal leadership will take place at an international
level. We will continue to participate in the development of the United
Nations Convention on the Protection and Promotion of the Rights and Dignity of
Persons with Disabilities, in consultation with other federal departments,
provinces and territories, and the disability community. Our involvement in the
International Social Security Association and in Rehabilitation International
will position us to make contributions to issues relating to disability income
support, return to work, and service delivery.
Build strategic partnerships (ongoing priority)
In Unison reflected a broad understanding that the responsibility to
create a more inclusive climate for people with disabilities is shared by all
levels of government, the private and voluntary sectors as well as Canadians.
SDC has an essential role, as the federal focal point for disability leadership,
in engaging partners to identify strategies and actions, particularly those that
will implement commitments made in the 2004 Speech from the Throne, which
states, "The Government will start by working with the provinces and
territories to fill the gaps in education and skills development and in
workplace supports and workplace accommodation for people with
disabilities."
An important way for the Government of Canada to fulfill this commitment in
2004-2005 will be to work with provinces to implement the new Multilateral
Framework for Labour Market Agreements for Persons with Disabilities8.
As of April 1, 2004, the Multilateral Framework provides a new opportunity for
governments to work together to improve the employment situation of people with
disabilities. Under the Multilateral Framework's accountability provisions, all
governments have made a strong commitment to public reporting, with baseline
reports scheduled to be released on December 3, 2004. Annual reporting on
program and societal indicators will begin on December 3, 2005. SDC will work
with provinces to ensure that these reports are released in a timely manner and
that they provide a full public account of the progress made toward fulfilling
the goals of the Multilateral Framework. SDC and the provinces will also
participate in joint evaluations to determine the impacts of outcomes of
programs and services funded under the Multilateral Framework.
As part of building strategic partnerships within the federal government, SDC
will undertake a review of federal employment programs for persons with
disabilities to bring greater coordination and coherence to these programs. This
will include an examination of the Opportunities Fund for Persons with
Disabilities and Labour Market Agreements for Persons with Disabilities.
Canada Pension Plan Disability (CPP-D) benefits were originally designed to
provide basic earnings replacement, with additional benefits coming from other
programs. The integration of CPP-D benefits with those of other programs
continues to be an issue for clients, the disability community and
parliamentarians. As part of our partnership activities this year, we will
pursue client coordination mechanisms with provinces and private insurers
related to individuals who deal with more than one of CPP-D, provincial social
assistance programs and private long-term disability insurance.
Enhance community capacity building for persons with disabilities (ongoing
priority)
In Unison committed governments to engage Canadians with
disabilities as full partners in accomplishing shared objectives. This was
consistent with the broader recognition that by providing opportunities and
support, communities and community-based organizations can test innovative
approaches that address social well-being issues.
As an SDC priority across the departmental agenda, we have a base to build on
in 2004-2005 through our ongoing administration of the disability component of
the Social Development Partnerships Program and through the Opportunities Fund.
We expect to make strategic investments and work in partnership with
organizations in the non-profit sector that address the needs of persons with
disabilities.
Fulfill commitments to Parliament regarding the Disability component of the
Canada Pension Plan (new priority)
In June 2003, the Standing Committee on Human Resources Development and the
Status of Persons with Disabilities tabled its fifth report in the House of
Commons, Listening to Canadians: A First View of the Future of the Canada
Pension Plan Disability Program.9
The Committee made 71 specific recommendations aimed at improving the Canada
Pension Plan Disability (CPP-D) application and appeals processes, broadening
coverage, updating adjudication tools, providing more support for clients to
return to work, and working toward a more coordinated disability income system.
The Government Response included some specific commitments that SDC will work
to finalize and implement, subject to any necessary consultation with the
provinces. For example, the Government passed legislation to allow the automatic
reinstatement of disability benefits. This financial safety net will ensure that
clients can have their CPP-D benefits automatically restarted if their attempt
to return to work is not successful within two years because of a recurrence of
their disability. In addition, the Government agreed to work collaboratively
with the provinces to identify reasonable options for changes to CPP-D that
affect vulnerable clients, including long-term CPP contributors and terminally
ill applicants.
The Standing Committee also recommended that evaluations be performed on
various aspects of CPP Disability. SDC has responded to this by advancing the
start of the scheduled evaluations of CPP-D to 2004-2005. This will be the
first comprehensive evaluation of CPP-D since 1996 and will focus on all aspects
of CPP Disability benefits and their administration, including program
objectives and outcomes.
Strategic Outcome 3: A Canada where vibrant and inclusive communities meet
the social development needs of Canadians
Social Development Canada recognizes that vibrant and inclusive communities
are a pillar of social development and that strong communities foster the social
well-being of their members. Our work also recognizes the contributions that
local, regional and national voluntary sector organizations make to communities
and to identifying innovative, effective responses to social issues -
generating insights from which other communities can learn.
While many Government of Canada departments and agencies work in and with
communities, SDC has a clear community focus in our planning, policies and
programs. For example, programs such as the Social Development Partnerships
Program (SDPP) and our responsibility for the Voluntary Sector Initiative (VSI)
are strengthening the capacity of social non-profit and voluntary sector
organizations to identify and act on social issues of importance to communities.
This strategic outcome is focused on our responsibility for overall policy
and program activities to strengthen the voluntary sector and support the social
development work of non-profit organizations, as well as community based
initiatives that promote partnerships and collaborations to address the needs
and promote the full inclusion of persons with disabilities, children and
families, and seniors. Elsewhere in this Report on Plans and Priorities we
address our commitment to innovative and improved services to Canadians and
their community organizations under Strategic Outcome 5: A Canada where
service delivery is focused on citizen needs.
SDC planning under this strategic outcome reflects the fundamental role that
voluntary sector organizations and communities play in the lives of families,
individuals and Canadian society. Voluntary sector organizations promote the
well-being of Canadians by delivering services, enriching public dialogue,
providing feedback on program effectiveness, promoting citizen participation and
building vibrant communities. They provide economic, social, cultural and
spiritual well-being as well as essential services such as health care, social
services, education and recreation.
Our planning is based on pursuing this strategic outcome through
partnerships. We know that addressing social challenges requires creative
interaction between governments, communities, voluntary sector organizations and
individuals. Our partnerships are instrumental in enhancing the capacity for
social development and achieving an improved quality of life for Canadians. As
part of our planning, we will be developing an engagement strategy for
consulting and working with Canadians on social issues, building on best
practices through literature reviews and learning from experts, other
departments, governments and countries.
In 2004-2005, our efforts under this strategic outcome will focus on
continuing leadership, coordination and partnerships to further strengthen
Canada's voluntary sector and community-based organizations, so that they can
continue to contribute to inclusive, vibrant communities.
Strategic Outcome
3: A Canada where vibrant and inclusive communities meet
the social development needs of Canadians. |
Funding
(millions of dollars) |
Authority (Restated)1 |
Planned
Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Gross Operating Expenditures |
6.4 |
9.3 |
7.9 |
7.9 |
Non-Statutory Grants & Contributions |
25.5 |
37.2 |
41.1 |
45.1 |
Total |
31.9 |
46.5 |
49.0 |
53.0 |
Full Time Equivalents |
61 |
54 |
51 |
51 |
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
|
Provide federal leadership, oversight and coordination in strengthening the
capacity of social non-profit and voluntary sector (new priority)
Since 2000, the Government of Canada has been working with the voluntary
sector through the Voluntary Sector Initiative to strengthen its capacity to
support the participation and inclusion of Canadians and to strengthen the
relationship between the voluntary sector and the Government. The 2004 Speech
from the Throne reaffirms the Government of Canada's commitment to partnerships
with the voluntary sector and the 2004 budget allocated $6 million over the next
two years to advance joint work with the sector.
In the year ahead, we will contribute to enhancing the voluntary sector's
capacity to collaborate and innovate, and support a stronger voice for
philanthropic and charitable organizations in public policy dialogue. We will
also provide horizontal federal leadership to improve funding practices with
respect to the voluntary sector, to ensure a balance between accountability for
public funds and the flexibility to support collaborative, community-based
investments. Work will be undertaken to strengthen and develop new forms of
collaboration between the voluntary, private and public sector to support social
and economic development, and community-based social innovation. We will also
provide leadership by working with the voluntary sector to identify its future
priorities for joint work with the Government of Canada.
Develop, design and implement the New Horizons for Seniors Program (new
priority)
In the 2004 budget, the Government announced that it would provide $8 million
in 2004-2005 and $10 million annually for future years to fund the New
Horizons for Seniors Program. The intent of New Horizons is to support a wide
range of community-based projects that enable seniors to participate in social
activities, pursue an active life and contribute to their communities. The
expected outcomes of the New Horizons for Seniors Program are:
- increased social participation of seniors;
- reduced isolation of vulnerable seniors;
- enhanced opportunities for networking and association between seniors;
and
- enhanced opportunities to build community capacity and partnerships.
The New Horizons budget commitment reflected substantial input from seniors'
organizations and community groups that recognized such a program as an
effective way to encourage continued involvement of seniors in their
communities. The new program will draw on experience with the former New
Horizons/New Horizons: Partners in Ageing program.
During this fiscal year, we will carry out the full range of actions
necessary to meet the budget commitment and implement the program as fully and
as promptly as possible. This will include working with other levels of
government as well as seniors' organizations, the voluntary sector and
stakeholders; seeking Treasury Board approval of the terms and conditions under
which New Horizons projects will be funded; engaging communities to address the
needs of seniors living in Canada; setting priorities; and implementing the
first round of project funding.
Expand the Understanding the Early Years initiative (new priority)
Parents, families, communities and governments need the best possible
knowledge to make effective choices in our strategies to improve child
development outcomes. The Understanding the Early Years (UEY) initiative equips
communities with locally-specific information and knowledge on the development
of children in their community, on family and community characteristics, and on
the quality and quantity of programs and services supporting children under the
age of six and their families. The UEY initiative helps communities assess their
children's needs and equips them with the information they need to make informed
decisions about the best policies and most appropriate programs for young
children and their parents living in the community.
At present, 12 pilot communities in eight provinces participate in the
initiative. In the 2004 budget, the Government announced that it would provide
$68 million over seven years to expand the UEY initiative to 100 communities. We
will approach year one (2004-2005) as a planning year, followed by
implementation of the UEY activities in an average of 25 additional communities
per year for the subsequent four years, with a wind-down period in 2009-2010
and 2010-2011.
Continue to make strategic investments and work in partnership with
organizations in the non-profit sector that address the social development needs
of persons with disabilities, children and families, and other vulnerable
populations (ongoing priority)
The Social Development Partnerships Program (SDPP) provides support for
initiatives that seek to improve the quality of life and promote the full
participation of persons with disabilities, children and families and other
vulnerable and excluded populations. In managing the SDPP, we work in
partnership with social non-profit voluntary sector organizations, social
development experts and academics, our government partners and other
stakeholders to ensure that our investments will have the best possible impacts.
The SDPP makes strategic investments to help address key government social
priorities. Investments under the persons with disabilities priority seek to
advance the Government of Canada's Disability Agenda by promoting the full
participation of Canadians with disabilities in learning, work and community
life. Investments under the early learning and child care priority contribute to
major federal/provincial/territorial policy initiatives such as the September
2000 Early Childhood Development Agreement and the March 2003 Multilateral
Framework on Early Learning and Child Care. Others strengthen the capacity of
official language minority communities to promote the development of
linguistically and culturally relevant early learning and childcare for families
in official language minority communities. Investments under the social
inclusion priority support activities that contribute to the inclusion and full
participation of children and families.
The SDPP contribution funds support the generation and dissemination of
knowledge and information on emerging social issues; increase public awareness;
and establish and maintain sustainable partnerships, alliances, networks and
collaborations and public dialogue/consultations in support of persons with
disabilities and children and families.
Under the SDPP, we also provide grants to strengthen and sustain the capacity
of national organizations to enable them to continue to respond to, and
represent, the needs of persons with disabilities, and children and families. In
2004-2005, we will award new grants to support social development work related
to children and families.
In 2004-2005 we will develop indicators and measures to support the SDPP's
results-management framework. This will enable us to enhance our accountability
and the effectiveness of the SDPP activities. The development process will
include consultation with stakeholders and will guide planned evaluations of the
SDPP.
Strategic Outcome 4: A Canada where the capacities of individuals, children,
families, and communities are strengthened in order to promote social inclusion,
participation and well-being
The well-being of children is a determinant of the present quality of life in
Canada and our future productivity. There is a strong consensus that income
support for low-income families, combined with service supports for all parents,
are important to achieving social well-being for all children.
Because the early years establish the foundation for competence and coping
skills that will affect learning, behaviour and health in later life, the
federal, provincial and territorial governments have recognized support for
early childhood development, with a particular focus on early learning and child
care, as a key priority. The Government of Canada continues to make supporting
children and their families a priority and works with the governments of the
provinces and territories on three major initiatives:
- National Child Benefit;
- Early Childhood Development Agreement; and
- Multilateral Framework on Early Learning and Child Care.
Participating governments have agreed to common policy objectives and to the
kinds of contributions that those governments would make to realize the
objectives of each initiative. Social Development Canada is responsible for
federal leadership on all three initiatives and is actively involved in
facilitating learning and reporting on results under each initiative.
The Government of Canada recognizes the special needs of low- and
modest-income families with a severely disabled child. This is why the
government provides a Child Disability Benefit to low- and modest-income
families. SDC participated in the development of the Child Disability Benefit
and is involved in the ongoing implementation of the initiative.
SDC has other program responsibilities that have an impact on Canadian
families and children. For example, this year we expect to provide Canada
Pension Plan (CPP) benefits to 86,000 children of deceased contributors to the
CPP Account. In addition to CPP benefits for persons with disabilities
(described in Strategic Outcome 2), payments will be made to 91,000 children of
these beneficiaries. Our commitment to innovative and improved services to these
children and families is also addressed under Strategic Outcome 5: A Canada
where service delivery is focused on citizen needs.
These efforts are being supported by our strategies to enhance the capacity
of communities to identify and act on the social priorities that they see, which
is addressed in Strategic Outcome 3: A Canada where vibrant and inclusive
communities meet the social development needs of Canadians. For example,
that strategic outcome includes the priority of implementing the commitment set
out in the 2004 budget to expand the Understanding the Early Years initiative,
which supports research at the community level on the extent to which programs
and services exist to support young children and their families and on how well
they are prepared for school.
Strategic Outcome
4: A Canada where the capacities of individuals, children,
families, and communities are strengthened in order to promote social
inclusion, participation and well-being2. |
Funding
(millions of dollars) |
Authority (Restated)1 |
Planned Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Gross Operating Expenditures |
2.5 |
2.4 |
2.4 |
2.4 |
Total |
2.5 |
2.4 |
2.4 |
2.4 |
Full Time Equivalents |
10.0 |
10.0 |
10.0 |
10.0 |
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
- SDC's operating costs for this outcome are minimal. The National
Child Benefit initiative is delivered by the Canada Revenue
Agency and the Government of Canada mainly supports the Early
Childhood Development Agreement and the Multilateral Framework
on Early Learning and Child Care objectives via the Canada
Social Transfer to provinces and territories. These resources
have been specifically allocated for the purposes of the
National Child Benefit initiative. Over time, workload on these
resources has grown to include activities associated with the
Multilateral Framework on Early Learning and Child Care and the
Early Childhood Development Agreements. Additional workload
pressures have often necessitated a temporary reallocation from
corporate policy resources on a priority, not ongoing, basis.
|
During 2004-2005, Social Development Canada expects to continue work under
all three initiatives, with the following priorities.
Ensure effective implementation of the National Child Benefit initiative
(ongoing priority)
Decades of research have shown that low family income can have a negative
impact on child development and child outcomes. However, experience in Canada
demonstrated the existence of a "welfare wall" for many families
receiving social assistance payments. Those families found that moving from
social assistance into a low-paying job often meant only a minimal increase in
family income. It could also mean a loss of other valuable benefits, including
supplementary health, dental and prescription drug benefits. As a result,
families could find themselves financially worse off as a result of moving into
employment.
Under the National Children's Agenda, the National Child Benefit (NCB)
initiative was introduced in 1998.10
The NCB is based on a partnership among federal, provincial and territorial
governments, and includes a First Nations component.11
It has the following three goals:
- help prevent and reduce the depth of child poverty;
- promote attachment to the labour market by ensuring that families will
always be better off as a result of working; and
- reduce overlap and duplication by harmonizing program objectives and
benefits and simplifying administration.
The NCB provides income support for low-income families with children through
a national platform of income-tested child benefits delivered as part of the
federal Canada Child Tax Benefit (CCTB). It has replaced the child benefits
historically delivered through provincial and territorial welfare systems. The
NCB initiative ensures that enhanced benefits and services continue when parents
move from social assistance to paid employment.
Under the NCB, the Government of Canada provides additional income support to
low-income families and their children through the NCB Supplement component of
the CCTB. The CCTB has two main elements:
- The base benefit of the CCTB provides child benefits to all low- and
middle-income families. This benefit is provided to approximately 82% of
Canadian families with children.
- The NCB Supplement provides low-income families with additional child
benefits on top of the base benefit. The NCB Supplement is provided to
approximately 40% of all Canadian families with children.
In 2002-2003, the federal government provided $2.5 billion through the NCB
Supplement, which is delivered by the Canada Revenue Agency. Since 2000, the
CCTB has been fully indexed so that benefits increase with inflation. The
Government of Canada announced increased benefits in the 2003 budget, with a
first increase in July 2003. Further increases of $185 per child are scheduled
for July 2005 and July 2006. By 2007, the maximum annual benefit for a two-child
family will reach $6,259. This will bring annual federal support delivered
through the CCTB to more than $10 billion in 2007.
This action will help build on the success to date, most recently set out in
the NCB Progress Report: 2002, which confirms that the NCB is making
progress on all three of its goals:12
- Reduction of child poverty: As a result of the NCB in 2000, 55,000
children in 22,900 families were not living in low income, a 5.1 percent
reduction in the number of low-income families or 1 in 20.
- Increased attachment to the labour market: The NCB is making work
financially more attractive than social assistance. This improvement was
associated with a reduced dependency on social assistance among families
with children.
- Reduction of overlap and duplication: The flexibility of the NCB allowed
many jurisdictions to combine the NCB Supplement with provincial and
territorial child benefits into a single integrated payment.
Social Development Canada's planning for this priority in 2004-2005 is
focused on our department's roles in the overall development of strategies and
in reporting on results to Canadians. We will continue to oversee federal
reporting on contributions and results. We will continue to work with the
provinces, territories and other partners to address issues that may arise, so
that the NCB continues to evolve and generate results.
Under the NCB Governance and Accountability Framework, federal, provincial
and territorial governments have committed to report annually to the public with
a primary focus on performance of the NCB.13
SDC will support this process with the release of the fifth NCB Progress
Report expected in 2004. In addition, the first comprehensive evaluation of
the NCB will be completed by the end of 2004. This
federal-provincial-territorial evaluation will assess the NCB against the
initiative's three goals.
Ensure effective implementation of the Early Childhood Development Agreement
(ongoing priority)
Social Development Canada, in partnership with Health Canada, continues to
play an important role in the implementation of the
Federal/Provincial/Territorial Early Childhood Development (ECD) Agreement
concluded in September 2000. The overall goal of the initiative is to improve
and expand early childhood development supports for young children (prenatal to
age 6) and their parents.
The specific objectives of the ECD Agreement are:
- to promote early childhood development so that, to their fullest
potential, children will be physically and emotionally healthy, safe and
secure, ready to learn, socially engaged and responsible; and
- to help children reach their potential and to help families support
their children within strong communities.
In support of these objectives, the Government of Canada is transferring $500
million per year, through the Canada Social Transfer, to provincial and
territorial governments to improve and expand programs and services in four key
areas: promoting healthy pregnancy, birth and infancy; improving parenting and
family supports; strengthening early childhood development, learning and care;
and strengthening community supports.14
Recognizing the importance of being accountable to Canadians, all
participating federal, provincial and territorial governments have committed to
the following three reporting requirements:
- Each government released a first report on ECD programs and expenditures
for 2000/2001 fiscal year, providing a baseline against which new
investments can be tracked.
- In fall 2002, governments began annual reporting using a shared
framework with comparable program indicators to track progress in
improving and expanding early childhood development programs and
services within the four areas for action.
- In fall 2002, governments began regular reporting on children's
well-being, using a common set of outcome indicators. A subsequent
report was released in the fall 2003 with biennial reporting thereafter.
Social Development Canada will continue to play a key role in future public
reporting, with the next report on ECD activities and expenditures to be
released in the fall 2004. This report will continue to use the comparable
program indicators identified by the federal, provincial and territorial
governments to track progress in improving and expanding early childhood
development programs and services.
As co-chair of the Federal-Provincial-Territorial ECD Working Group, which
has responsibility for implementing the ECD Agreement and the Multilateral
Framework on Early Learning and Child Care, Social Development Canada will
continue to play the lead role on behalf of the Government of Canada in working
with provinces and territories to implement the ECD Agreement. We will also
continue to monitor provincial and territorial expenditures and reporting under
the Agreement. As co-chair of the Federal-Provincial-Territorial Committee on
ECD Knowledge, Information and Effective Practices, which reports to the
Federal-Provincial- Territorial ECD Working Group, Social Development Canada
will work with provincial and territorial governments to improve reporting under
the Agreement by addressing data gaps on young children and share information on
best practices, research, knowledge development and evaluation related to early
childhood development.
Ensure effective implementation of the Multilateral Framework on Early
Learning and Child Care (ongoing priority)
In March 2003, the federal, provincial and territorial Ministers Responsible
for Social Services agreed to a framework for improving access to affordable,
quality, provincially and territorially regulated early learning and child care
programs and services.15
The specific objectives of the Multilateral Framework on Early Learning and
Child Care are to further promote early childhood development and support the
participation of parents in employment or training by improving access to
affordable, quality early learning and child care programs and services.
In support of these objectives, the Government of Canada is providing $1.05
billion over five years, which includes the additional $150 million committed in
the 2004 budget, through the Canada Social Transfer to support provincial and
territorial government investments in early learning and child care. The
programs and services funded through this initiative will primarily provide
direct care and early learning for children in settings such as child care
centres, family child care homes, preschools and nursery schools. Investments
can include capital and operating funding, fee subsidies, wage enhancements,
training, professional development and support, quality assurance, and parent
information and referral.
Governments committed to public reporting that will give Canadians a clear
idea of the progress being made in improving access to affordable, quality early
learning and child care programs and services. Baseline reporting in 2003 began
this process.16
In 2004-2005 and beyond, Social Development Canada will continue to play
the lead Government of Canada role in future public reporting under this
framework, with the next report on early learning and child care activities and
expenditures to be released in fall 2004. This report will continue to use the
comparable program indicators outlined in the Multilateral Framework on Early
Learning and Child Care to track progress in improving and expanding early
learning and child care programs and services.
Working with provinces and territories, Social Development Canada will also
play a lead role in implementing the other elements of the Multilateral
Framework on Early Learning and Child Care. This will include monitoring
provincial and territorial expenditures and reporting under the Framework,
working with provinces and territories to address issues related to data quality
and co-chairing a subcommittee of the Federal-Provincial-Territorial ECD Working
Group charged with joint development of a shared evaluation framework for early
learning and child care programs and services.
In the fall of 2004, the Government of Canada, in conjunction with the
Organisation for Economic Co-operation and Development (OECD), and the
governments of Prince Edward Island, British Columbia, Manitoba and Saskatchewan
will release the OECD Thematic Review of Early Childhood Education and Care
Policy in Canada. This report, prepared by an international team of experts led
by the OECD, will review current early childhood education and care provisions
in Canada, identify key issues and outline a series of conclusions and policy
recommendations. The conclusions and recommendations will provide important
input to federal-provincial-territorial discussions regarding early learning and
child care.
Ensure effective implementation of the Child Disability Benefit (new
priority)
In recognition of the special needs of low- and modest-income families with a
severely disabled child, the 2003 federal budget introduced a $1,600 Child
Disability Benefit (CDB). The CDB is a supplement of the Canada Child Tax
Benefit (CCTB) and is paid for children who meet the eligibility for the
disability tax credit. The full $1,600 CDB is provided to families with
qualified disabled children who currently receive the National Child Benefit
Supplement. Families with qualified disabled children who do not receive the
National Child Benefit Supplement may be entitled to a reduced amount of the CDB
based on their family net income.
The CDB is estimated to benefit 40,000 families, providing $50 million
annually in financial support for children with disabilities. The CDB is
delivered by the Canada Revenue Agency. SDC participated in the development of
the CDB and worked with provinces and territories to ensure that families
receiving income support from the province or territory realized the full
benefit of the CDB.
Strategic Outcome 5: A Canada where service delivery is focused on citizen
needs
More than 4.6 million Canadians deal with Social Development Canada (SDC)
each year for direct programs and services. Canadians, businesses and voluntary
sector organizations want consistent, high-quality service from governments.
They want governments to make it easier and more convenient to obtain services,
and they want those services to be operated in ways that control costs and
ensure the right client receives the right service or benefit at the right time
and for the intended purpose.
SDC is now deeply engaged in a fundamental transformation of its operations.
Modernizing Service for Canadians (MSC) is a multi-year initiative aimed at
transforming how SDC and Human Resources and Skills Development Canada (HRSDC),
and potentially other partners, connect with Canadians in the delivery of
services.
The MSC initiative builds on the Government of Canada service vision for
Canadians of seamless and integrated multi-channel service delivery. The goal of
that vision is "To transform service to Canadians by focusing on what
citizens need in a way that supports their full participation in the workplace
and community." It has two important objectives:
- to create an integrated citizen-centred service focus that effectively
meets the comprehensive social and labour market needs of Canadians; and
- to improve efficiency, while minimizing the cost and administrative
overhead associated with serving Canadians.
The "one-stop shop" concept creates a new face of government and a
transformation in how government provides services and benefits to Canadians.
As a contribution to achieving this end, SDC has taken a lead role in
coordinating communications initiatives of the social cluster of departments -
the collective of federal departments within which there are elements of social
programs or services. The "cluster" concept was conceived to enhance
horizontality across government, thereby helping to reduce citizen confusion as
to which department delivers which program or service. This horizontal,
whole-of-government communications approach will also contribute a greater
citizen understanding of the range of social programs and services available to
them and to easier access to these programs and services.
That same concept is moving SDC and HRSDC to more integrated and increasingly
coordinated approaches on delivering services to specific groups of clients such
as seniors, persons with disabilities and families and their children. This
level of coordination includes efforts to engage other federal government
departments as well as other jurisdictions that provide programs to similar
groups of clients.
Our vision is to use automation and to share and use information and data
more effectively across government, thereby reducing the work involved with
processing and delivering benefits. We are supporting this vision with
innovations in information technology and information management that are
enabling us to change how we conduct many of our day-to-day functions.
Within that work during 2004-2005, we expect to address a series of
specific priorities that will enable us to put the foundations for service
transformation in place and take action to modernize specific areas of our
relationship with Canadians, businesses and the voluntary sector.
Strategic Outcome
5: A Canada where service delivery is focused on citizen
needs1. |
Funding
(millions of dollars) |
Authority (Restated)2 |
Planned Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Gross Operating Expenditures |
84.9 |
37.3 |
34.3 |
34.1 |
Full Time Equivalents |
1,133 |
654 |
645 |
644 |
- The above figures exclude 450 FTEs and $25 million related to
ISP telephone services which serve to support this strategic
outcome, in addition to Strategic Outcomes 1 and 2. These
resources are linked to statutory benefits (CPP and OAS) and are
included under Strategic Outcome 1.
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
|
Provide improvements to the national infrastructure for identity and
integrity (previous priority)
The Social Insurance Number (SIN) is the foundation for the delivery of
government services. On an annual basis, the SIN supports 140 million EI
transactions, 110 million Income Security Programs transactions, 37.5 million
Canada Child Tax Benefit transactions, and 25 million income tax filers. The
integrity of more than $70 billion in annual HRSDC and SDC program expenditures
to individuals and businesses and the annual collection of more than $160
billion in tax, EI, and CPP contributions are dependent on the accurate
identification of individuals and businesses.
Service delivery will be transformed through better linkages between the
Social Insurance Registry (SIR) and vital event data from associated federal
government departments and the provinces/territories. Over the next year, the
Department will initiate more effective linkages, starting with three provinces,
to:
- enable the development of a simplified and automated approach to
reporting the death of a citizen that would eliminate the need for
separate requests for things such as a death certificate, deactivation
of a SIN, cessation of CPP and OAS payments to the deceased, etc.;
- facilitate the issuance of a SIN at birth that will reduce the
requirements and wait times for multiple foundation documents before a
SIN is issued, and facilitate the simplification and streamlining of the
work now associated with filling out different and separate forms for
government and private-sector services related to birth; and
- pursue real-time verification of information for individuals applying
for a SIN.
Further, the Department will support the service transformation by
implementing a common, department-wide approach to identification and
authentication that will assure clients accessing integrated services that their
identity information is accurate, protected, private, and used appropriately,
and help standardize guidelines around access to SIR data by authorized users.
Develop a streamlined and integrated approach across government for the
collection, use, and maintenance of payroll, earnings, and income information
(previous priority)
At present, businesses provide a variety of payroll, earnings and income
information to the Government of Canada and to other governments.
"E-Payroll" will be a streamlined and integrated approach across
government for all this information. It will involve a single point of contact
for the collection of information from employers for federal use, with possible
future extension to provincial and territorial government partners that use the
same data.
SDC and HRSDC will provide input into a comprehensive E-Payroll business plan
with the Canada Revenue Agency as the lead partner. We will provide a review of
the current environment, national and international best practices, a vision and
conceptual design, transition and implementation strategies, detailed assessment
of business and technology requirements, a business case, and potential early
projects in support of the overall E-Payroll vision.
Once implemented, a successful E-Payroll initiative would significantly
reduce the costs that businesses now incur each year to comply with government
requirements and the related amount that federal departments and agencies spend
to process benefits and taxes. It will lead to less complex benefit
applications, fewer errors and more timely benefit payments.
Continue the development of a service strategy and service offerings
(previous priority)
Traditionally, government departments have offered services to Canadians in
the form of specific programs designed to meet very specific needs. Under the
Modernizing Service for Canadians initiative, SDC is moving ahead with the
concept of "service offerings." These represent the creation of more
integrated responses to citizen needs by bringing together various services.
They move our operational focus on meeting a client's needs to a holistic basis,
which should generate more significant outcomes for those clients.
The creation of service offerings represents a basic part of our overall
commitment to improving service for Canadians. By analyzing the needs of
specific client segments (e.g. seniors, persons with disabilities) we expect to
redefine how we deliver services to citizens who use our in-person services in
communities. These client-based service strategies will help us to ensure that
our services are consistent for Canadians by harmonizing them across all our
service delivery channels (in-person, Internet, telephone, mail). These
strategies will help us identify new services that should be introduced, old
services that need improvement and services and benefits that we can bring
together across service delivery channels to improve service to Canadians.
Our goal is to work with other governments and partners to develop integrated
service offerings that will encompass services from all jurisdictions. As
examples of this, we will test ways to simplify the application process for CPP
Disability benefits and investigate providing these clients with streamlined
access to other disability supports and services. We will also build on work to
date by providing leadership for the Canadian Seniors Partnership and Seniors
Network that bring together different providers of services to seniors.17
We will examine how service offerings for seniors can be improved or renewed in
line with the Government of Canada Service Vision for Canadians. We intend to
develop a Canada benefits and services guide as well as joint benefit and
service information with the Canada Revenue Agency for our Web sites. Work to
develop service offerings for low-income seniors will be a particular priority.
Provide enterprise- wide Internet and telephone client service for Social
Development Canada and Human Resources and Skills Development Canada (previous
priority)
SDC is responsible for providing service to Canadians for SDC and HRSDC
programs through our electronic service delivery channels: our network of
telephone call centres and Internet-based services. We have already implemented
new electronic service delivery options on behalf of both departments, including
on-line application processes for HRSDC's Employment Insurance program.
Next steps in providing enterprise-wide electronic services that bring
consistency across electronic service delivery across many programs and services
are beginning with the integration of the many individual services that
previously existed for individual programs. Just as we consolidated more than
170 separate departmental Internet sites, we are launching enterprise-wide
management of our 23 call centres, which are forecasted to handle 10.9 million
calls in 2004-2005. This is now an integrated network to deliver telephone
service for our Canada Pension Plan (CPP) and Old Age Security (OAS) programs as
well as HRSDC's Employment Insurance and Canada Student Loans Program. We are
complementing this change with initiatives to address recommendations by the
Auditor General in her recent review of telephone services.
Simplify and streamline benefits and service delivery (ongoing priority)
The Government of Canada has committed to increasing the efficiency and
effectiveness of all its programs. This is one way to maintain control of
expenditures and ensure that resources are being used in line with the evolving
priorities of Canadians.
Because of the scale and importance of OAS and CPP, we believe that we can
not only automate processes, but also make fundamental business transformations
to bring about efficiencies, savings and service improvements. As part of this,
we will examine improvements to data management that could improve the
operational efficiency of activities supporting our CPP retirement benefits and
OAS basic benefits. We will continue our work to simplify processing for the
Guaranteed Income Supplement as well as activities designed to ensure that we
reach seniors who are eligible for GIS. Some of our initiatives to improve the
effectiveness and efficiency of benefits delivery will involve collaboration
with other government departments, and all these actions will seek to generate
improved service to Canadians at lower operating costs.
Develop a strategy and action plan for regional service delivery (new
priority)
HRSDC is responsible for the in-person delivery of SDC and HRSDC services to
Canadians through its network of more than 300 Human Resources Centres of Canada
across the country. We will work with HRSDC to ensure the effective delivery of
SDC programs both regionally and locally. Our actions will include attention to
the regional components of social development policy design and implementation,
program and service delivery, and information and outreach activities.
Our support for HRSDC's in-person service delivery at the community level
will ensure that we can draw on that community presence to advance our
objectives.
Strategic Outcome 6: Effective Corporate Services
Social Development Canada's corporate services support the achievement of all
of SDC's strategic outcomes and serve to meet the expectations of Canadians and
Parliament. Some services, including policy, communications, ministerial
services, governance and management activities, have priorities that reflect the
Department's policy, program and service directions.
Social Development Canada is also responsible for the provision of shared
corporate services in the area of human resources, financial and administrative
services and corporate systems, to both SDC and Human Resources and Skills
Development Canada. During 2004-2005 and beyond, the shared corporate services
will pursue priorities that reflect the commitment to high quality services to
both departments and the need to support both departments in the achievement of
their strategic outcomes.
In addition to this work, we have several cross-cutting initiatives, such as
the development of a new Sustainable Development Strategy for SDC by March 31,
2006. For more information on SDC's Sustainable Development Strategy, please see
Annex 9. Another example of these initiatives is implementation of an action
plan to strengthen privacy protection and the management of information
belonging to Canadians; information that is held by the department, and that we
need to operate our programs.
Strategic Outcome
6: Effective corporate services. |
Funding
(millions of dollars) |
Authority (Restated)1 |
Planned Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Gross Operating Expenditures2 |
817.3 |
776.2 |
774.2 |
804.3 |
Full Time Equivalents |
5,396 |
5,614 |
5,607 |
5,513 |
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
- SDC also provides human resources, financial and administrative
services and corporate services for HRSDC.
|
Provide effective shared corporate services in the areas of human resources,
financial and administrative services and corporate systems to SDC and HRSDC
(new priority)
The decision that SDC would provide shared corporate services to HRSDC
provides an opportunity to ensure consistent service to people in both
departments and to take advantage of efficiencies. SDC expects to demonstrate
those results in all shared corporate service areas. For example, human
resources branches will provide high quality services to SDC and HRSDC staff
across the country.
As another example, SDC computer systems services will enable SDC and HRSDC
to process more than 400 million transactions in 2004-2005, including benefit
program payments to Canadians and responding to requests for services or
information. The shared services concept will be central to improved planning
and better-targeted investments in information technology. We will move to more
"enterprise-wide" approaches and applications that will serve the
needs of multiple programs across both departments over time, not just
individual programs. We will also work with other government departments and
participate in government-wide initiatives to develop technological solutions
that will serve many departments.
We will bring the same kind of coordinated approach to strengthening the
management of physical and information assets in both departments. For example,
we are exploring the possibility of establishing a Canadian Social Sciences
Library to bring together the information on social and labour market trends and
best practices worldwide that federal departments and the public need. We are
also developing a long-term strategic accommodation plan to provide efficiencies
and cost-effectiveness across both departments.
More generally, SDC is providing consolidated financial and administrative
services to SDC and HRSDC, which SDC will manage to ensure consistency of
services and products and achieve efficiencies, including in its regional
operations. This also will allow the easier implementation of innovations and
more efficient processes to generate savings.
Another shared service is our responsibility for the collection of money owed
to the Crown. During 2004-2005, SDC will manage a $2.6 billion portfolio of
program accounts receivable, mostly from HRSDC's Canada Student Loans Program
(64% of the portfolio) and Employment Insurance Program (29%). SDC's Income
Security Programs (e.g., Canada Pension Plan and Old Age Security) will
represent 3% of the portfolio. During the fiscal year, SDC expects to recover
$449.5 million while maintaining quality of service to all clients.
Support a dynamic workforce (ongoing priority)
Both SDC and HRSDC need employees who can meet the challenges of a changing
public policy, program and service delivery environment. During 2004-2005, we
will take action in many areas that are designed to help achieve that goal.
One of the most fundamental areas for action will be implementation of the
new Public Service Modernization Act (PSMA), which will bring
significant changes to many human resource practices.18
We will develop tools and learning materials so managers and staff are aware of
how the PSMA provisions are to work. We will also develop and lead the
implementation of our own policy framework, processes and procedures to
implement these changes across SDC and HRSDC.
The government is committed to ensuring that employees at the executive level
and in executive feeder groups will be able to work in both official languages.
To support this goal, we will increase language training for executives and EX
feeder groups and we will regularly monitor executives' language abilities. We
will also promote the use of both official languages in SDC and HRSDC
workplaces.19
To ensure that that departmental staff is representative of the diversity of
the Canadian population, we will work to meet the recruitment targets
established in "Embracing Change" (particularly that one in five of
our new staff are members of visible minority groups).20
Given the importance of anchoring values and ethics into decision making at
all levels, we will implement an SDC-HRSDC framework to integrate the Values and
Ethics Code for the Public Service into the operations of both departments at
all levels. This will include new tools and learning initiatives for use with
all employees.21
SDC and HRSDC anticipate a rapidly changing environment for employees due to
shifting business demands and workforce demographics. This will mean support to
both departments to attract, retain and develop qualified staff. There will be a
strong emphasis on development and learning, including attention to an
E-learning strategy; a strategy to enhance corporate leadership for management;
and mandatory learning initiatives for employees in financial skills, human
resources management skills, and values and ethics.
Achieve Effective Stewardship and Accountability (ongoing priority)
Social Development Canada's priorities in the area of human resource
management, systems and information technology management, and financial
management all underscore our desire to provide more effective stewardship of
public resources.
In addition to these priorities, Social Development Canada will also work at
accelerating implementation of the Management Accountability Framework, a
comprehensive management and accountability framework that establishes a vision
for public sector management. In 2004-2005, we will continue to implement our
key management priorities and begin developing a new set of management
priorities, working in collaboration with Treasury Board Secretariat.
We will also continue our work in applying the principles of modern
comptrollership throughout SDC and supporting HRSDC as it does the same, through
such activities as: appointing professionally-accredited departmental
comptrollers to sign off on all new spending initiatives; implementing a system
to disclose all contracts valued at more than $10,000; and supporting the
Government of Canada Expenditure Review exercise, which will help ensure that
all departmental expenditures provide value for money.
These efforts will be further supported by our internal review of grants and
contributions programs to ensure their continued relevance and effectiveness and
to improve employee understanding of financial management and comptrollership
practices and principles.
These efforts, combined with our new policy, program and service delivery
improvement initiatives are all fundamental touchstones in ensuring the
effective and efficient stewardship of public resources. As a new department,
Social Development Canada will need to ensure that we have the governance
structures and business processes in place to ensure effective oversight and
efficient and appropriate decision making. In 2004-2005, we will continue to
implement integrated corporate business planning, risk management and
performance measurement processes that serve the needs of this new Department
and support the achievements of its objectives. We will also develop audit and
evaluation plans that will ensure a culture of continuous improvement and
compliance with respect to programs and their administration.
The organizational model for Social Development Canada, which is expected to
be finalized in 2004-2005, sets out a branch structure in which individual
branches are focused on the achievement of one or more strategic outcomes and
work with resources and responsibilities allocated under one or more
departmental business lines. This model encourages collaboration among branches
and a strong focus on results for Canadians.
A key element in SDC organization and accountability is its responsibility to
provide corporate services and service delivery functions to Human Resources and
Skills Development Canada (HRSDC) as well as to its own department.
For a detailed description of SDC business lines, please visit http://www.tbs-sct.gc.ca/est-pre/20042005/page.asp?page=002_e_210.htm.
Resources by Business Line and Strategic Outcome
SDC has five business lines (i.e. Social Development Policy, Income Security
Programs, Social Partnerships, Benefits and Service Delivery, and Corporate
Services), some of which are specifically linked to particular strategic
outcomes, while others support the achievement of multiple strategic outcomes.
The table below identifies the six strategic outcomes that SDC endeavours to
provide for Canadians, the links between its business lines and those strategic
outcomes.
Business
Lines |
Strategic Outcomes |
Total |
A Canada where the quality of life and
inclusion for seniors is enhanced and poverty alleviated through
sustainable public pensions, benefits, and supports1 |
A Canada where the social and economic
participation of Persons with Disabilities is enhanced |
A Canada where vibrant and inclusive
communities meet the social development needs of Canadians |
A Canada where the capacities of
individuals, children, families, and communities are strengthened in
order to promote social inclusion, participation and well-being2 |
A Canada where service delivery is
focused on citizen needs |
Effective Corporate Services |
1. Social Development
Policy |
FTE |
|
|
|
10 |
|
127 |
137 |
$M |
|
|
|
2.4 |
|
30.5 |
32.9 |
2. Income Security
Programs |
FTE |
2,328 |
786 |
|
|
|
78 |
3,192 |
$M |
48,516.5 |
3,223.6 |
8.0 |
|
|
6.4 |
51,754.5 |
3.Social Partnerships |
FTE |
|
84 |
54 |
|
|
|
138 |
$M |
|
257.8 |
38.5 |
|
|
|
296.3 |
4. Benefits and
Service Delivery |
FTE |
727 |
|
|
|
654 |
2,370 |
3,751 |
$M |
57.0 |
|
|
|
37.3 |
323.5 |
417.8 |
5. Corporate Services |
FTE |
|
|
|
|
|
3,039 |
3,039 |
$M |
|
|
|
|
|
415.8 |
415.8 |
Total |
FTE |
3,055 |
870 |
54 |
10 |
654 |
5,614 |
10,257 |
$M |
48,573.5 |
3,481.4 |
46.5 |
2.4 |
37.3 |
776.2 |
52,917.3 |
Other Costs |
CPP Costs (Other Government
Department (OGD) Administrative Costs) |
138.3 |
Total SDC |
53,055.6 |
- The above figures include 450 FTEs and $25 million related to
ISP telephone services which also serve to support Strategic
Outcomes 2 and 5. For further information on how these resources
will benefit Canadians, please refer to the section entitled
Strategic Outcome 5: A Canada where service delivery is focussed
on citizen need.
- SDC's operating costs for this outcome are minimal. The National
Child Benefit initiative is delivered by the Canada Revenue
Agency and the Government of Canada mainly supports the Early
Childhood Development Agreement and the Multilateral Framework
on Early Learning and Child Care objectives via the Canada
Social Transfer to provinces and territories. These resources
have been specifically allocated for the purposes of the
National Child Benefit initiative. Over time, workload on these
resources has grown to include activities associated with the
Multilateral Framework on Early Learning and Child Care and the
Early Childhood Development Agreements. Additional workload
pressures have often necessitated a temporary reallocation from
corporate policy resources on a priority, not ongoing, basis.
|
(millions of dollars) |
Operating |
Voted Grants and Contributions |
Sub-Total: Gross Expenditures |
Statutory Grants and
Contributions1 |
Total Gross Expenditures |
Less: Respendable Revenues |
Total Net Expenditures |
Business Lines |
|
|
|
|
|
|
|
1. Social Development Policy |
31.4 |
- |
31.4 |
- |
31.4 |
(23.3) |
8.1 |
32.9 |
- |
32.9 |
- |
32.9 |
(18.4) |
14.5 |
34.8 |
- |
34.8 |
- |
34.8 |
(18.4) |
16.4 |
39.6 |
- |
39.6 |
- |
39.6 |
(18.4) |
21.2 |
2. Income Security Programs2 |
231.0 |
- |
231.0 |
26,902.4 |
27,133.4 |
(165.5) |
26,967.9 |
240.0 |
5.0 |
245.0 |
27,940.0 |
28,185.0 |
(144.3) |
28,040.7 |
239.0 |
8.0 |
247.0 |
28,975.0 |
29,222.0 |
(144.2) |
29,077.8 |
235.9 |
8.0 |
243.9 |
n/a |
|
(141.7) |
|
3. Social Partnerships |
15.4 |
247.2 |
262.6 |
- |
262.6 |
(0.3) |
262.3 |
15.4 |
280.9 |
296.3 |
- |
296.3 |
(0.3) |
296.0 |
14.9 |
281.9 |
296.8 |
- |
296.8 |
(0.3) |
296.5 |
14.9 |
285.9 |
300.8 |
- |
300.8 |
(0.3) |
300.5 |
4. Benefits and Service
Delivery |
508.0 |
- |
508.0 |
- |
508.0 |
(357.1) |
150.9 |
417.8 |
- |
417.8 |
- |
417.8 |
(282.6) |
135.2 |
414.8 |
- |
414.8 |
- |
414.8 |
(282.4) |
132.4 |
423.5 |
- |
423.5 |
- |
423.5 |
(288.5) |
135.0 |
5. Corporate Services |
411.3 |
- |
411.3 |
- |
411.3 |
(292.7) |
118.6 |
415.8 |
- |
415.8 |
- |
415.8 |
(294.1) |
121.7 |
411.9 |
- |
411.9 |
- |
411.9 |
(293.8) |
118.1 |
428.3 |
- |
428.3 |
- |
428.3 |
(298.1) |
130.2 |
Total |
1,197.1 |
247.2 |
1,444.3 |
26,902.4 |
28,346.7 |
(838.9) |
27,507.8 |
1,121.9 |
285.9 |
1,407.8 |
27,940.0 |
29,347.8 |
(739.7) |
28,608.1 |
1,115.4 |
289.9 |
1,405.3 |
28,975.0 |
30,380.3 |
(739.1) |
29,641.2 |
1,142.2 |
293.9 |
1,436.1 |
n/a |
|
(747.0) |
|
|
Legend:
For each Service Lines... |
First line |
Authority (Restated)
2003-20043 |
Second line |
Planned Spending
2004-2005 |
Third line |
Planned Spending
2005-2006 |
Fourth line |
Planned Spending 2006-2007 |
- Excludes Specified Purpose Accounts.
- Forecasted expenditures for the CPP and OAS are available only
for the planning years 2004-05 and 2005-06.
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
|
Business Lines
(millions of dollars) |
Authority (Restated)1 |
Planned Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Social Development Policy |
31.4 |
32.9 |
34.8 |
39.6 |
Income Security Programs (exclude OAS
Benefits) |
231.0 |
245.0 |
247.0 |
243.9 |
Social Partnerships |
262.6 |
296.3 |
296.8 |
300.8 |
Benefits and Service Delivery |
508.0 |
417.8 |
414.8 |
423.5 |
Corporate Services |
411.3 |
415.8 |
411.9 |
428.3 |
Gross Expenditures (exclude OAS
Benefits) |
1,444.3 |
1,407.8 |
1,405.3 |
1,436.1 |
Respendable revenue |
(838.9) |
(739.7) |
(739.1) |
(747.0) |
Net Expenditures (exclude OAS
Benefits) |
605.4 |
668.1 |
666.2 |
689.1 |
Income Security Programs - Statutory 2 |
26,902.4 |
27,940.0 |
28,975.0 |
n/a |
Total Net Budgetary |
27,507.8 |
28,608.1 |
29,641.2 |
|
Specified Purpose Accounts |
|
|
|
|
Canada Pension Plan2 |
23,023.5 |
23,962.6 |
25,003.5 |
n/a |
Departmental Recoveries charged to EI |
574.3 |
511.6 |
511.1 |
|
Departmental Employee Benefit Plan
recoverable from CPP |
(26.1) |
(26.7) |
(26.7) |
|
Total SDC |
51,079.5 |
53,055.6 |
55,129.1 |
|
Full Time Equivalents |
10,130 |
10,257 |
10,238 |
10,087 |
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
- Forecasted expenditures for the CPP and OAS are available only
for the planning years 2004-05 and 2005-06.
|
Financial Highlights
The Department expects to spend $53.1 billion in 2004-2005. This represents
an increase of $2.0 billion over the 2003-2004 restated authorities of $51.1
billion. The variance is mainly due to the following:
- an increase of $1,038 million in Old Age Security payments due to an
expected increase in the forecasted monthly rates and in the estimated
number of beneficiaries; and
- an increase of $964 million in Canada Pension Plan (CPP) benefits due to
expected increases in the forecasted monthly rates and in the estimated
number of beneficiaries.
For 2005-2006, the consolidated departmental planned spending is
anticipated to be $55.1 billion, which corresponds to an increase of $2.1
billion from the 2004-2005 planned spending. The major changes are as follows:
- an increase of $1,035 million in Old Age Security payments due to
expected increases in the forecasted monthly rates and the estimated
number of beneficiaries; and
- an increase of $1,037 million in CPP benefit due to expected increases
in the forecasted monthly rates and the estimated number of
beneficiaries.
As a new department, Social Development Canada is in the process of
developing a performance measurement framework that will enable SDC to
demonstrate accountability for resources and results to Parliamentarians and all
Canadians. Our goal is to develop a framework that will ensure that our
policies, programs and service delivery reflect Canada's social development
priorities and those areas in which we can make the most beneficial
contributions. What follows are our existing performance indicators:
INDICATOR |
TARGET |
Speed of Service |
|
Percentage of all CPP Disability initial
application decisions made within 120 calendar days of receipt of
completed application |
75% |
Percentage of all CPP Disability
reconsideration decisions made within 120 calendar days of receipt |
70% |
Percentage of OAS benefits paid within the
first month of entitlement |
90% |
Percentage of CPP retirement benefits paid
within the first month of entitlement |
85% |
Percentage of callers answered by a
service delivery agent within three minutes |
95% |
Service Quality |
Official Language Complaints - Service
to the public |
Only actual
results reported |
Official Language Complaints - Language
of work |
Timely production of payment files in
support of all payments to Canadians |
95% |
Availability of automated service channels
to Canadians |
94% |
Representative
Workforce Indicators
(Targets were established as per National Workforce Availability
Estimates for HRDC in 2003-2004. These targets may be revised to
reflect the new Census data on workforce availability for SDC.) |
Visible Minority Representation % |
7.1% |
Aboriginal Representation % |
1.6% |
Persons with Disabilities Representation % |
4.0% |
Women Representation % |
57.5% |
Collections |
SDC is responsible for
ensuring that Accounts Receivable are recovered in the most effective
manner possible, while maintaining quality of service to all clients. |
Employment Insurance |
$271,900 |
Employment Programs |
4,445 |
CPP/OAS |
10,100 |
Canada Student Loans |
$163,000 |
Total: |
$449.5 million |
The following chart depicts the division of responsibilities of the former
Human Resources Development Canada between the two new departments, Social
Development Canada, and Human Resources and Skills Development Canada.
Human Resources
Development Canada |
Social Development Canada |
Human Resources and Skills
Development Canada |
- Old Age Security Program
- Canada Pension Plan
- Modernizing Service for Canadians
- Internet and telephone services
- Social Insurance Number Registry
- Opportunities Fund
- Disabilities Issues
- Voluntary Sector Initiative
- Social Development Partnerships
- *Voluntary Sector Initiative
|
- Employment Insurance
- Human Resources Centres of Canada
- In-person service
- Foreign Workers
- Labour Exchange
- Labour Market Information
- Employment Benefits and Support Measures
- Labour Market Development Agreements
- Aboriginal Human Resources Development
- Aboriginal Skills and Employment Partnerships
- Youth Employment Strategy
- Labour Market Adjustments and Official Language Minority
Communities
- Human Resources Partnerships
- Student Financial Assistance
- Canada Education Savings Grant
- Literacy
- Learning Technologies
- Labour
- Homelessness
|
*On December 12, 2003, the
Minister of Social Development was mandated responsibility for the
Voluntary Sector Initiative, a responsibility transferred from the
Minister of Canadian Heritage.
In addition to the responsibilities listed above, Social Development
Canada has been assigned responsibility for the provision of shared
corporate services to both departments, including human resources,
financial and administrative services and systems support; while HRSDC's
in-person service delivery network provides services to both
departments. |
(millions of dollars) |
Authority (Restated)1 |
Planned Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Income Security Programs |
|
|
|
|
(S) Old Age Security2 |
20,696.8 |
21,553.0 |
22,362.0 |
n/a |
(S) Guaranteed Income Supplement2 |
5,792.0 |
5,949.0 |
6,142.0 |
n/a |
(S) Allowance payments2 |
413.6 |
438.0 |
471.0 |
n/a |
Grants and Contributions3 |
- |
5.0 |
8.0 |
8.0 |
|
26,902.4 |
27,945.0 |
28,983.0 |
|
Social Partnerships |
|
|
|
|
Grants and Contributions |
247.2 |
280.9 |
281.9 |
285.9 |
Total Transfer Payments |
27,149.6 |
28,225.9 |
29,264.9 |
|
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
- Forecasted expenditures for the CPP and OAS are available only
for the planning years 2004-05 and 2005-06.
- These amounts have been announced in the Budget 2004 for the New
Horizons for Seniors initiative.
|
Social Development Canada has a number of transfer payment programs. These
support individuals, communities, the private and voluntary sectors, and other
orders of government in the achievement of shared social development goals. We
are subject to the revised policy on Transfer Payments, which was introduced on
June 1, 2000. That policy requires departments to report on those transfer
payment programs that are worth at least $5 million. In so doing, we are helping
to demonstrate sound management of, control over, and accountability for our
transfer payments.
Consistent with this policy, we have developed descriptive material on each
program including stated objectives, expected results and outcomes, and
milestones for achievement. The following table provides a list of the active
transfer payments programs. A fact sheet for each program over $5 million is
also provided.
Planned spending figures reflect estimated program costs and exclude
operating resources necessary to deliver the program.
Non-Statutory Transfer
Payments by Business Line
(2004-2005 Planned Spending: $285.9 million ($M) |
Associated Programs (Terms and
Conditions) |
Social Partnerships |
GRANTS |
Planned Spending |
For more details, see |
Grants to non-profit organizations for
activities eligible for support through the Social Development
Partnerships Program |
$14.1M |
|
Social Development Partnerships
Program |
|
Fact Sheet #1 |
CONTRIBUTIONS |
|
|
Payments to provinces, territories,
municipalities, other public bodies, organizations, groups, communities,
employers and individuals for the provision of training and/or work or
business experience, the mobilization of community resources, and human
resource planning and adjustment measures necessary for the social
development of Canadians and other participants in Canadian life. |
$44.8M
|
|
Social Development
Partnerships Program |
|
Fact Sheet #1 |
Opportunities Fund
for Persons with Disabilities |
|
Fact Sheet #2 |
OTHER TRANSFER PAYMENTS |
|
|
Payments to the
provinces and territories under Multilateral Framework for Labour Market
Agreements for Persons with Disabilities. |
$222M |
|
Multilateral
Framework for Labour Market Agreements for Persons with Disabilities |
|
Fact Sheet #3 |
Income Security
Programs |
New
initiative announced in Budget 2004
New Horizons for Seniors Program |
$5M |
|
FACT SHEET #1 |
SOCIAL DEVELOPMENT
PARTNERSHIPS PROGRAM
(2004-2005 PLANNED SPENDING: $32.2M)* |
Objectives |
The SDPP is a nationally delivered program
that was created in 1998 as a multi-year research and development
program. The program supports activities of the social non-profit
sector. These activities are designed to promote the generation and
sharing of knowledge and strengthen the capacity of the social
non-profit sector to meet the social development needs of vulnerable
populations. |
Expected Results and Outcomes |
Qualitative results in the following
areas:
- Increased generation of knowledge on emerging social issues,
innovative solutions, best practices, tools and methodologies;
- Increased dissemination of information and knowledge;
- Strengthened and expanded partnerships, alliances and networks;
- More effective public dialogue and consultations on Canada's
social policies and programs; and
- Strengthened capacity of funded organizations in the social
non-profit sector with respect to governance, policy and program
development, community outreach, organizational administration
and management.
|
Milestones for
Achievement: |
Renewal Date |
Terms and conditions came into effect in
April 2003 |
Evaluation Performed |
Evaluation for SDPP was publicly released
in 2003-2004. The Child Care Visions program (subsumed under the SDPP
in program renewal) evaluation was completed in 2002-2003 and is
scheduled for submission to the Audit and Evaluation Committee for
decision in 2004-2005. |
Evaluation Scheduled |
Evaluation of the renewed program
scheduled for 2008-2009. |
* Includes $9M announced in
2004 budget for the following initiatives: Understanding the Early Years
($6M) and Voluntary Sector Initiative ($3M). |
FACT SHEET #2 |
OPPORTUNITIES FUND FOR
PERSONS WITH DISABILITIES
(2004-2005 PLANNED SPENDING: $26.7M) |
Objectives |
To assist persons with disabilities in
preparing for, obtaining and keeping employment, or becoming
self-employed, thereby increasing their economic participation and
independence. The objective will be achieved by working in partnership
with non-government organizations representing persons with
disabilities, the private sector and provincial governments in using
innovative approaches that demonstrate best practices to promoting the
economic integration of persons with disabilities. |
Expected Results and Outcomes |
Approximately 3,700 persons with
disabilities will be assisted annually, of whom 1,900 will find work. |
Milestones for
Achievement: |
Renewal Date |
March 31, 2004 |
Evaluation |
1998: Formative evaluation. |
Performed |
2001: Summative evaluation. |
Evaluation Scheduled |
2004: Summative evaluation. |
FACT SHEET #3 |
MULTILATERAL FRAMEWORK
FOR LABOUR MARKET AGREEMENTS FOR PERSONS WITH DISABILITIES
(2004-2005 PLANNED SPENDING: $222M)* |
Objectives |
To improve the employment situation of
Canadians with disabilities, by enhancing their employability,
increasing their employment opportunities, and building on the existing
knowledge base. |
Expected Results and Outcomes |
The key outcome commitment is to improve
the employment situation of persons with disabilities.
The common principles, objectives and priority areas for action outlined
in the Multilateral Framework reaffirm the commitment of federal and
provincial governments to work towards ensuring that people with
disabilities can participate successfully in the labour market.
The Multilateral Framework also emphasizes accountability, with all
governments making a strong commitment to public reporting. Baseline
reports are scheduled to be released on December 3, 2004. Annual
reporting on program and societal indicators will begin on December 3,
2005. SDC and the provinces will also participate in joint evaluations
to determine the impacts of outcomes of programs and services funded
under the Multilateral Framework. |
Milestones for
Achievement: |
Renewal Date |
Multilateral Framework expires March 31,
2006. |
Evaluation Performed |
|
Evaluation Scheduled |
2003-2006: Demonstration and bilateral
evaluations |
*Includes funding of $30M
announced in budget 2004. |
The following annex provides a brief overview of the Department's major
programs and initiatives as well as an Internet address to which the reader may
refer in order to obtain more information.
Programs and Initiatives |
Strategic Outcome 1:
A Canada where the quality of life and inclusion for seniors is enhanced
and poverty alleviated through sustainable public pensions, benefits,
and supports. |
CANADA PENSION PLAN- The
Canada Pension Plan (CPP) is a federal-provincial social insurance
program, providing contributors and their families with a basic level of
protection against loss of earnings due to retirement, disability or
death. Funded through compulsory contributions from employers and
employees, the Plan coverage extends to workers-including
self-employed workers-throughout Canada, with the exception of Quebec
where benefits are provided under the Quebec Pension Plan (Régie des
Rentes du Québec). Further information on the Canada Pension Plan can
be found at http://www.sdc.gc.ca/asp/gateway.asp?hr=en/isp/pub/factsheets/retire.shtml&hs=cpr. |
OLD AGE SECURITY- Old Age
Security (OAS) benefits provide basic income to Canadian citizens and
residents who meet age and residency requirements. It is financed from
Government of Canada general tax revenues and indexed to inflation.
Recognizing the difficult financial circumstances faced by many seniors,
the Old Age Security program provides additional income- tested benefits
for low-income individuals, namely; the Guaranteed Income Supplement
(GIS), the Allowance and/or the Allowance for the Survivor. The GIS is a
monthly benefit available to OAS pensioners with little to no other
income. The amount of the benefit is dependent upon your marital status,
residency, and income. The Allowance is available to spouses of OAS/GIS
pensioners between the ages of 60 and 64 years who meet the eligibility
requirements. The Allowance for the Survivor is available to low-income
individuals aged 60 to 64, and whose spouse or common-law partner is
deceased. More information on these programs can be found at http://www.sdc.gc.ca/asp/gateway.asp?hr=en/isp/oas/oastoc.shtml&hs=ozs. |
Strategic Outcome 2:
A Canada where the social and economic participation of persons with
disabilities is enhanced. |
CANADA PENSION PLAN -
DISABILITY- CPP Disability provides a monthly benefit payable
to contributors who meet the minimum contributory requirements and whose
disability is "severe and prolonged", as defined in the
legislation. Children of disabled contributors are eligible for a
flat-rate monthly benefit, up to age 18, or 25 if in full-time
attendance at school. More information on CPP Disability benefits can be
found at http://www.sdc.gc.ca/asp/gateway.asp?hr=/en/isp/cpp/disaben.shtml&hs=cprb. |
LABOUR MARKET AGREEMENTS FOR
PERSONS WITH DISABILITIES (LMAPD)- As of December 2003, the
Multilateral Framework for Labour Market Agreements for Persons with
Disabilities replaced the joint federal-provincial Employability
Assistance for People with Disabilities initiative. The LMAPD initiative
is a cost-shared program. Through direct transfers of federal funding to
provinces, the goal of the initiative is to improve the employment
situation of Canadians with disabilities, by enhancing their
employability, increasing the employment opportunities available to
them, and building on the existing knowledge base. More information on
the LMAPD can be found at http://www.sdc.gc.ca/asp/gateway.asp?hr=en/hip/odi/08_multilateralFramework.shtml&hs=pyp. |
OPPORTUNITIES FUND- The
Opportunities Fund (OF) is a contributions program designed to assist
persons with disabilities to prepare for and obtain employment or
self-employment as well as to develop the skills necessary to maintain
that new employment. In addition, the OF administers contributions to
national and regional projects to support partnerships and innovative
approaches to integrate individuals with disabilities into employment or
self-employment and address barriers to an individual's labour market
participation. Further information can be found at http://www.sdc.gc.ca/en/epb/sid/cia/grants/of/desc_of.shtml. |
Strategic Outcome #3:
A Canada where vibrant and inclusive communities meet the social
development needs of Canadians. |
NEW HORIZONS FOR SENIORS PROGRAM- The
Government of Canada announced in the 2004 federal budget that it is
committing to funding the New Horizons for Seniors Program. This program
will support a wide range of community-based projects that will enable
seniors to participate in social activities, pursue an active life and
contribute to their communities. Further information can be found on
pages 26-27. |
SOCIAL DEVELOPMENT PARTNERSHIPS
PROGRAM- SOCIAL DEVELOPMENT COMPONENT (SDPP-SD)- The social
development component of the SDPP provides grant and contribution
funding to non-profit organizations working to improve the quality of
life and meet the social development needs of persons with disabilities,
children and their families, and other vulnerable or excluded
populations in Canada. Further information can be found at http://www.sdc.gc.ca/asp/gateway.asp?hr=en/hip/sd/05_SDPP.shtml&hs=vxi.
DISABILITY COMPONENT (SDPP-D)- Grants and contributions to build
capacity and support the work of the communities of persons with
disabilities is provided through the disability component of the Social
Development Partnership Program (SDPP-D). Grants administered under the
SDPP-D support the capacity building efforts of national non-profit
organizations and contributions are awarded for projects aimed at
increasing knowledge of disability issues and/or supporting the
inclusion of persons with disabilities in the community. More
information on the SDPP-D can be found at http://www.sdc.gc.ca/asp/gateway.asp?hr=en/hip/odi/02_funding.shtml&hs=pyp |
VOLUNTARY SECTOR INITATIVE (VSI)- The
Voluntary Sector Initiative (VSI) is a unique undertaking between the
Government of Canada and the voluntary sector to enhance their
relationship and strengthen the sector's capacity. Over the course of
the initiative they will work together to address issues including
improvements that would make it easier for voluntary sector
organizations to use federal programs, technology, volunteerism and
research about the sector. Further information can be found at http://www.vsi-isbc.ca/eng/index.cfm. |
UNDERSTANDING THE EARLY YEARS
(UEY)- The Understanding the Early Years (UEY) initiative helps
communities assess the readiness of young children for school by
examining the quality and extent of programs and services required to
address those needs. At present, 12 pilot communities in eight provinces
participate in the initiative. Electronic UEY community reports can be
found at http://www11.sdc.gc.ca/en/cs/sp/index.shtml.
Building on the success of the UEY initiative and its positive impact on
the capacity of communities to support early childhood development, the
Government of Canada reaffirmed its commitment to this initiative
through the 2004 Speech from the Throne and the 2004 Budget, where $68
million will be allocated over seven years for the expansion of UEY to
100 communities. The UEY initiative also complements Strategic Outcome
4: A Canada where the capacities of individuals, children, families,
and communities are strengthened in order to promote social inclusion,
participation, and well-being. For more information on the UEY
initiative, please visit http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/uey-cpe/description_e.asp. |
Strategic Outcome 4: A Canada
where the capacities of individuals, children, families, and communities
are strengthened in order to promote social inclusion, participation,
and well-being. |
NATIONAL CHILD BENEFIT- The
National Child Benefit initiative is a partnership among federal,
provincial and territorial governments, and includes a First Nations
component.22
Through the NCB, the federal government is working with provincial and
territorial governments to provide income support, as well as benefits
and services for low-income families and their children. Social
Development Canada expects to make continued progress the three goals of
the NCB: 1) prevent and reduce the depth of child poverty in Canada; 2)
promote labour market attachment by ensuring that families will always
be better off as a result of working; and 3) reduce overlap and
duplication by harmonizing program objectives and benefits across
jurisdictions. Policy responsibility for the National Child Benefit is
shared between Social Development Canada and Finance Canada. Further
information can be found at http://www.nationalchildbenefit.ca/. |
CHILD DISABILITY BENEFIT
- The Child Disability Benefit (CDB) is a supplement to the Canada
Child Tax Benefit (CCTB) for low- and modest-income families to help
them with the costs of raising children under 18 who have a severe and
prolonged disability. The CDB is delivered by the Canada Revenue Agency.
Policy responsibility for the CDB is shared between Finance Canada and
Social Development Canada. Further information can be found at http://www.cra-arc.gc.ca/benefits/disability-e.html. |
EARLY CHILDHOOD DEVELOPMENT
AGREEMENT- In September 2000, Canada's First Ministers23
reached agreement on early childhood development. The overall goal of
the Early Childhood Development Agreement is to improve and expand early
childhood development supports for young children (prenatal to age 6)
and their parents. The specific objectives of the ECD Agreement are to
promote early childhood development so that, to their fullest potential,
children will be physically and emotionally healthy, safe and secure,
ready to learn and socially engaged and responsible; and to help
children reach their potential and to help families support their
children within strong communities. In support of these objectives, the
Government of Canada is transferring $500 million per year, through the
Canada Social Transfer, to provincial and territorial governments to
improve and expand programs and services in four key areas: promoting
healthy pregnancy, birth and infancy; improving parenting and family
supports; strengthening early childhood development, learning and care;
and strengthening community supports. Further information can be found
at http://socialunion.gc.ca/ecd_e.html. |
MULTILATERAL FRAMEWORK ON EARLY
LEARNING AND CHILD CARE- In March 2003, the federal, provincial
and territorial Ministers Responsible for Social Services agreed to a
framework for improving access to affordable, quality, provincially and
territorially regulated early learning and child care programs and
services.24
The specific objectives are to further promote early childhood
development and support the participation of parents in employment or
training by improving access to affordable, quality early learning and
child care programs and services. In support of these objectives, the
Government of Canada is providing $1.05 billion over five years, between
2003-04 and 2007-08, through the Canada Social Transfer to support
provincial and territorial government investments in early learning and
child care. The programs and services funded through this initiative
will primarily provide direct care and early learning for children in
settings such as child care centres, family child care homes, preschools
and nursery schools. Investments can include capital and operating
funding, fee subsidies, wage enhancements, training, professional
development and support, quality assurance, and parent information and
referral. Further information can be found at http://socialunion.gc.ca/elcc_e.htm. |
(millions of dollars) |
Authority (Restated)1 |
Planned Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
Respendable Revenues |
|
|
|
|
Social Development
Policy |
23.3 |
18.4 |
18.4 |
18.4 |
Income Security Programs |
165.5 |
144.3 |
144.2 |
141.7 |
Social Partnerships |
0.3 |
0.3 |
0.3 |
0.3 |
Benefits and Service
Delivery |
357.1 |
282.6 |
282.4 |
288.5 |
Corporate Services |
292.7 |
294.1 |
293.8 |
298.1 |
Total Respendable Revenues |
838.9 |
739.7 |
739.1 |
747.0 |
Non-respendable Revenues |
|
|
|
|
Social Development Policy - Recovery of
Employee Benefit Plan (EBP) |
0.9 |
0.9 |
0.9 |
0.9 |
Income Security Program - Recovery of EBP |
18.2 |
20.0 |
20.0 |
19.4 |
Social Partnerships - Recovery of EBP |
- |
- |
- |
- |
Benefits and Service Delivery Support -
Recovery of EBP |
31.9 |
31.6 |
31.6 |
31.1 |
Corporate Services - Recovery of EBP |
21.6 |
23.1 |
23.0 |
22.6 |
Total Non-Respendable Revenues |
72.6 |
75.6 |
75.5 |
74.0 |
- Restated authority as a result of the December 12, 2003
restructure of HRDC into SDC and HRSDC.
|
(millions of dollars) |
Authority (Restated)1 |
Planned Spending |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
|
|
|
|
|
Budgetary Main Estimates1, 2 |
28,346.7 |
29,272.7 |
30,299.8 |
1,347.3 |
Less: Respendable revenues1, 3 |
(838.9) |
(718.7) |
(718.6) |
(726.9) |
Total Main Estimates1 |
27,507.8 |
28,554.0 |
29,581.2 |
620.4 |
Adjustments to Planned Spending 4 |
|
|
|
|
Budget 2003 |
|
|
|
|
Foreign Credential
Recognition |
- |
0.2 |
0.1 |
0.1 |
Official Languages Plan |
- |
2.8 |
2.6 |
3.6 |
Sub-total Budget 2003 |
- |
3.0 |
2.7 |
3.7 |
Budget 2004 |
|
|
|
|
Participation and
Activity Limitations Surveys |
- |
0.5 |
2.9 |
6.6 |
Multilateral Framework
for Labour Market Agreement |
- |
30.0 |
30.0 |
30.0 |
Understanding the Early
Years |
- |
6.0 |
8.0 |
12.0 |
Voluntary Sector
Initiative |
- |
3.0 |
3.0 |
3.0 |
New Horizons for Seniors |
- |
8.0 |
10.0 |
10.0 |
Sub-total Budget 2004 |
- |
47.5 |
53.9 |
61.6 |
Corporate services
provided to HRSDC in support of various initiatives5 |
- |
1.2 |
0.5 |
0.1 |
Other additional
resources for Income Security Programs increased workload |
- |
23.4 |
23.4 |
23.4 |
Total Adjustments to Planned
Spending |
- |
75.1 |
80.5 |
88.8 |
Adjustments to Respendable Revenues |
- |
(21.0) |
(20.5) |
(20.1) |
Net Planned
Spending |
27,507.8 |
28,608.1 |
29,641.2 |
689.1 |
Specified Purpose Accounts |
|
|
|
|
Canada Pension Plan 2 |
23,023.5 |
23,962.6 |
25,003.5 |
n/a |
Departmental Recoveries charged to EI |
574.3 |
511.6 |
511.1 |
|
Departmental Employee Benefit Plan
recoverable from CPP |
(26.1) |
(26.7) |
(26.7) |
|
Total SDC Consolidated |
51,079.5 |
53,055.6 |
55,129.1 |
|
Plus: Services Received without
Charge
Contributions covering employer's share of employee's
insurance premiums and costs paid by Treasury Board Secretariat |
11.0 |
12.9 |
12.8 |
12.8 |
Total Net Departmental Cost |
51,090.5 |
53,068.5 |
55,141.9 |
|
Full Time Equivalents |
10,130 |
10,257 |
10,238 |
10,087 |
- The 2003-04 figures reflect the restated authority as a result
of the December 12, 2003 restructure of HRDC into SDC and HRSDC.
- 2006-07 planned spending is lower than that of previous years
because the forecasted expenditures for the CPP and OAS are
available only for the planning years 2004-05 and 2005-06.
- Respendable Revenues: Revenues netted against Budgetary
expenditures.
- The adjustments to the planned spending reflect the impact of
the Budget 2003 and Budget 2004.
- The initiatives supported by SDC for HRSDC are: Foreign
Credential Recognition, Official Language Minority Communities,
Older Workers Pilot projects initiative and Seasonal Workers.
|
Strategic Outcome 1: A Canada where the quality of life and inclusion for
seniors is enhanced and poverty alleviated through sustainable public pensions,
benefits, and supports.
Regulations |
Planned Results |
1. Old Age Security (OAS) and Canada
Pension Plan (CPP) Regulations: The amendments are administrative in
nature and required to implement certain aspects of the Modernizing
Service for Canadians (MSC) Initiative. They will provide for more
efficient program administration and electronic service. Once
implemented, clients will be able to request a Statement of
Contributions on-line, or file a CPP retirement application
electronically. The changes will also simplify age (i.e. CPP and OAS)
and marital (i.e. OAS) evidentiary requirements under the regulations. |
The amendments enable Income Security
Programs (ISP) to proceed with initial stages of the MSC initiative.
They allow for more efficient program administration. The proposed
regulatory amendments were approved on May 3, 2004 by the Treasury Board
Committee responsible for approving such regulations. The Department is
proceeding toward final approval and the regulatory changes will be
published in the Canada Gazette, Part II, in late summer 2004. |
2. Canada Pension Plan Regulations-
Automatic reinstatement of CPP Disability: Amendments to CPP Regulations
are required to enable the Department to proceed with the new CPP
legislative initiative contained in Bill C-30, the Budget
Implementation Act, 2004. This initiative allows persons whose
disability benefit was ceased because they returned to work to have
their benefit (as well as those of their eligible children) reinstated
if they are unable to continue working due to a recurrence of the same
or related disability within a maximum period of two years. The proposed
regulations will set out the time limitation and the information and
evidence to be furnished to the Minister in relation to the request for
reinstatement of the CPP disability benefit. |
The purpose of this initiative is to
encourage more disability clients to attempt to return to work, without
putting their benefits at risk. The regulatory amendments seek to limit
the documentation required for individuals who were not successful in
their attempt to return to work when requesting the reinstatement of the
disability benefit. |
National Child Benefit
Federal-Provincial-Territorial Early Childhood Development Agreement
Federal-Provincial-Territorial Multilateral Framework on Early Learning and
Child Care
Understanding Early Years
Social Development Partnerships Program
Voluntary Sector Initiative
Labour Market Agreements for Persons with Disabilities
Information on Social Development Canada's Horizontal Initiatives can be
found at http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/profil_e.asp.
Recognizing the long-term, horizontal and evolutionary nature of sustainable
development, the Department's Sustainable Development Strategy 2004-2006
(tabled in Parliament under Human Resources Development Canada) will build upon
the successes and lessons learned from previous strategies. Emphasis has been
placed upon improving the balance between the social, economic and environmental
dimensions of sustainable development.
The Minister of Social Development Canada (SDC) and the Minister of Human
Resources and Skills Development Canada (HRSDC) jointly tabled the Sustainable
Development Strategy 2004-2006 under the Human Resources Development Canada
banner in Parliament on February 16, 2004, with a commitment to table individual
departmental strategies by March 31, 2006.
The Strategy focuses on four key goals:
- Strengthen the Department's capacity to move forward on a path to
sustainable development;
- Sustaining our internal operations;
- Develop the social and labour market dimensions of sustainable
development within the Department; and
- Build sustainable development into the Department's corporate culture.
Social Development Canada will achieve the following goals, objectives and
targets during the 2004-2005 fiscal year. Furthermore, as Social Development
Canada is the provider of common shared corporate services for both departments,
SDC will be a key contributor in supporting Human Resources and Skills
Development Canada's development and implementation of sustainable development
initiatives.
Goal 1: Strengthen SDC's capacity to move forward on a path to sustainable
development
- Ensure a horizontal commitment to sustainable development and develop a
SDC vision for sustainable development by March 31, 2005.
Goal 2: Sustaining our internal operations
- Promote environmentally responsible transportation principles within SDC
- Reduce the amount of waste sent for disposal
- Increase Aboriginal procurement by SDC in support of sustainable
communities; and
- Reduce the environmental impact of SDC's procurement.
Goal 3: Develop the social dimensions of sustainable development in SDC
- Continue building a better understanding of the implications of
sustainable development for SDC's social policies and programs; and
- Support a sustainable society by increasing awareness of the importance
of ensuring effective supports and services for children and families.
Goal 4: Build sustainable development into SDC's corporate culture
- Increase awareness of sustainable development.
For more detailed information on the Sustainable Development Strategy, see
http://www.sdc.gc.ca/en/cs/fas/as/sds/sdd.shtml
Introduction to Specified Purpose Accounts
Specified Purpose Accounts (SPA) are special categories of revenues and
expenditures. They report transactions of certain accounts where enabling
legislation requires that revenues be earmarked and that related payments and
expenditures be charged against such revenues. The transactions of these
accounts are to be accounted for separately. Social Development Canada is
responsible for the stewardship of one such account, the Canada Pension Plan
(CPP).
The CPP is a SPA but is not consolidated as part of the Government
of Canada financial statements. It is under joint control of the Government and
participating provinces. As administrator, the Government's authority to spend
is limited to the balance in the Plan.
Canada Pension Plan
Description
The Canada Pension Plan (CPP) is a joint federal-provincial plan that
operates throughout Canada, except in Quebec, which has its own comparable plan.
The CPP provides for a variety of benefits based on life changes. Best known for
its retirement pensions, the CPP also provides benefits for surviving partners
of CPP contributors, persons with disabilities and their children, and a
one-time maximum benefit of $2,500 in the event of death.
As a contributory plan, contributors are employed and self-employed persons
between the ages of 18 and 70, who earn at least a minimum amount ($3,500)
during a calendar year. Benefits are calculated based on how much and for how
long a contributor has paid into the CPP. Benefits are not paid automatically
- everyone must apply and provide proof of eligibility.
Approximately 12 million Canadians over the age of 18 currently contribute
annually to the Plan and approximately 4 million Canadians will receive benefits
during 2004-2005.
Benefit Payments
Retirement Pensions: Contributors may begin receiving CPP
retirement pensions as early as age 60 or delay receipt until age 70. Applicants
who are between 60 and 65 must have stopped working or earn below a specified
level when they begin to receive the retirement pension. Contributors over age
65 need not have stopped working to qualify.
The amount of each contributor's pension depends on how much and for how long
he/she has contributed and at what age he/she begins to draw the benefits.
Pensions are adjusted by 0.5% for each month between the date the pension begins
and the month of the contributor's 65th birthday. Contributors who
begin receiving a retirement pension at age 60 will receive 70% of the usual
amount that would be payable at age 65, while those who delay receiving a
pension until age 70 will receive 130% of the amount payable at age 65.
Spouses and common-law partners who are at least 60 years of age can share
their retirement benefits earned during the period of cohabitation as long as
they remain together.
Disability Benefits: Disability benefits are payable to
contributors who meet the minimum contributory requirements and whose disability
is "severe and prolonged", as defined in the legislation. Such a
disability would prevent them from working regularly at any job in a
substantially gainful manner for a prolonged period of time. In order to ensure
that benefits are only paid to eligible beneficiaries, periodic reassessments
are carried out. Support is also provided to clients who try to return to
regular gainful employment. Children of CPP disability beneficiaries are also
eligible for a flat rate monthly benefit up to the age of 18, or up to age 25 if
attending school full-time. As of April 2004, there were just over 290,000
beneficiaries and 92,057 children receiving monthly benefits.
Survivor's Benefits: A contributor's surviving
spouse/common-law partner may be eligible for a monthly benefit if the
contributor has contributed for a minimum period and, if at the time of the
contributor's death, the spouse/common-law partner was at least 35 years old or
was under age 35 and either had dependent children or was disabled. Payments
continue in the event that the surviving spouse/common-law partner remarries.
Monthly benefits are also payable on behalf of the children of CPP contributors
who die. The amount is a flat rate and is payable until the child reaches age
18, or up to age 25 if he or she attends school or university full time. A
lump-sum benefit is also available to the estate of the deceased contributor
provided the minimum contributory requirements have been met.
Determining the Benefit Rate
CPP benefits are largely related to earnings. Benefits are adjusted in
January of each year to reflect increases in the average cost of living, as
measured by the Consumer Price Index. The CPP has a ceiling on earnings that
changes every year which limits the amount of payments people receive, as well
as the amount of contributions that must be paid into the Plan.
Benefits such as children's benefits are not based on earnings; they are a
fixed amount. Disability and survivor benefits contain a fixed-rate or flat rate
portion in addition to an earnings-related portion.
CPP Benefit Payments
by Category and Type |
(millions of dollars) |
Actual |
Forecast |
Planned Spending |
2001-2002 |
2002-2003 |
2003-2004 |
2004-2005 |
Retirement pensions |
14,251 |
15,042 |
15,851 |
16,592 |
Disability benefits |
|
|
|
|
Disability pensions |
2,637 |
2,774 |
2,844 |
2,903 |
Benefits to children of
disabled contributors |
242 |
250 |
257 |
265 |
Disability benefits total |
2,879 |
3,024 |
3,101 |
3,168 |
Survivor benefits |
|
|
|
|
Surviving spouse or
common law partner's benefits |
2,929 |
3,065 |
3,187 |
3,322 |
Orphans' benefits |
204 |
210 |
213 |
231 |
Death benefits |
227 |
234 |
254 |
257 |
Survivor benefits total |
3,360 |
3,509 |
3,654 |
3,810 |
TOTAL |
20,490 |
21,575 |
22,606 |
23,570 |
Administrative Costs
Social Development Canada, Human Resources and Skills Development Canada,
Finance Canada, the Canada Revenue Agency, Public Works and Government Services
Canada and the Office of the Superintendent of Financial Institutions supply
services that support the management and delivery of the CPP and its funds.
Costs incurred by these departments and agencies in administering the Plan
are recoverable from the Account based on the costing principles approved by
Treasury Board. Essentially, those principles are that costs must be incurred
because of CPP responsibilities and must be traceable. Administrative expenses
for 2004-2005 are estimated at $393.0 million, representing a decrease of 5.9%
from the forecast for 2003-2004.
Benefits delivery staff and processes are extremely efficient in getting
benefits into the hands of CPP contributors. In 2004-2005, the total cost for
administering and delivering CPP benefits is approximately 1.6% of the total
forecasted benefit payments.
CPP Administrative
Expenses by Department |
(millions of dollars) |
Actual |
Forecast |
Planned Spending |
2001-2002 |
2002-2003 |
2003-20041 |
2004-2005 |
Human Resources Development Canada
Plan administration, operations, records, and
accommodation |
245.0 |
295.1 |
|
|
Social Development Canada
Plan administration, operations, records, and
accommodation |
|
|
264.6 |
228.1 |
Human Resources and Skills
Development Canada
In-person services for applicants and beneficiaries |
|
|
10.1 |
9.3 |
EI Account
- Refunding of EI Account in relation to assignment of
Social Insurance numbers and maintenance of the central index |
2.5 |
0.4 |
2.1 |
2.1 |
Treasury Board Secretariat
Insurance premiums and recoverable contributions to
the Employee Benefit Plan |
31.5 |
32.4 |
38.6 |
39.1 |
Public Works and Government
Services
Cheque issue, EDP services |
12.4 |
12.8 |
15.2 |
15.7 |
Canada Revenue Agency
Collection of contributions |
77.6 |
80.2 |
85.3 |
97.0 |
Office of the Superintendent of
Financial Institutions
Actuarial services |
1.4 |
0.7 |
1.2 |
1.3 |
Finance
Investment services |
0.6 |
0.5 |
0.4 |
0.4 |
TOTAL |
371.0 |
422.1 |
417.5 |
393.0 |
- Forecast for 2003-04 represents the restated authority.
|
Revenues
The CPP is financed through mandatory contributions from employees, employers
and self-employed persons, as well as from investment income. Contributions are
paid on the portion of a person's earnings that falls between a specified
minimum (the Year's Basic Exemption) and maximum (the Year's Maximum Pensionable
Earnings) amounts. The minimum remains constant at $3,500, while the maximum
amount is linked to the average Canadian industrial wage and is adjusted
annually. No contributions can be made once a contributor begins to receive a
CPP retirement pension, while receiving a disability pension or reaches the age
of 70. Disbursements include the payment of CPP benefits and administrative
expenditures associated with managing the program.
When it was introduced in 1966, the CPP was designed as a pay-as-you-go plan,
with a small reserve. This meant that the benefits for one generation would be
paid largely from the contributions of later generations. However, demographic
and economic developments and changes to benefits in the 30 years that followed
resulted in significantly higher costs. It became clear that to continue to
finance the program on a pay-as-you-go basis would have meant imposing a high
financial burden on Canadians in the work force during those years. Plan
administrators chose instead to change the funding approach of the Plan to a
hybrid of pay-as-you-go and full-funding, where each generation pays for its own
benefits.
In 1998, the federal and provincial governments introduced
"steady-state" financing. Under steady-state financing, the
contribution rate increased incrementally, from 5.6% in 1996, to 9.9% in 2003
and will remain at that rate. The 9.9% long-term contribution rate is the lowest
that can be expected to sustain the Plan indefinitely without further increases.
This approach will generate a level of contributions between 2001 and 2020
that exceeds the benefits paid out every year during that period. Funds not
immediately required to pay benefits will be transferred to the CPP Investment
Board for investment in financial markets. Over time, this will create a large
enough reserve to help pay the growing costs that are expected as more and more
baby-boomers retire.
Adoption of this diversified funding approach has made the Canadian
retirement income system less vulnerable to changes in economic and demographic
conditions and a leading edge example of public pension plan management in the
world.
Investment Income: Income is earned on the investments and
the CPP Account. The Minister of Finance sets the interest rate for the CPP
Account.
Financial Accountability
The CPP and its resources are divided among three components:
- The CPP Account was established to record the
contributions, interest, pensions and benefits and administrative
expenditures of the Plan. It consists of an operating balance. The
operating balance is maintained at a level designed to cover three
months' worth of forecast benefit payments and administrative charges.
Commencing September 2004, the balance of the CPP Account will be
transferred to the CPP Investment Board over a period of 12 months. Once
the transfer has taken place, a maximum of $25 million operating balance
will remain in the CPP Account.
- The CPP Investment Fund was established to record
investments in the securities of the provinces, territories and Canada.
- The Canada Pension Plan Investment Board is an
independent body established by a 1997 act of Parliament and created in
1998 to help the CPP achieve steady-state funding by investing funds not
required by the CPP to pay current pensions and earning investment
returns on funds transferred from the CPP Account.25
The Board is accountable to the public and governments through regular
reports. It is subject to investment rules similar to other pension
funds in Canada.
Financial Summary
Benefit payments are expected to reach $23.6 billion in 2004-2005, an
increase of $1 billion or 4.4% over 2003-2004. This increase reflects
forecasts of client population and average benefit payments. In 2004-2005, it
is expected that there will be a net increase in client population of 2.8% and a
net increase in average benefit payments of 1.9%.
The table below summarizes the financial results for the CPP from 2001-2002
to 2004-2005. In 2002-2003, the Government of Canada changed its basis of
accounting from the modified accrual accounting to the full accrual basis of
accounting. This change in accounting policy has been applied retroactively and
the financial statements have been restated accordingly.
As well, following the adoption of Bill C-3 during 2003-2004, the
evaluation of the provincial, territorial and federal bonds was changed from
cost to fair value. The change in accounting policy has been applied
retroactively and the financial statements have been restated to reflect this.
The CPP is expected to have an increase of almost $8 billion, bringing the
cumulative balance to more than $80 billion by March 31, 2005. At present, the
CPP has a fund equal to over three years of benefits and this is expected to
grow to about four or five years of benefits over the next two decades.
The following figures summarize trends in total revenues and expenditures of
the Account and its status from 2001-2002 to 2004-2005.
CPP - REVENUES AND EXPENDITURES TREND |
![CPP - REVENUES AND EXPENDITURES TREND](/web/20060119233007im_/http://www.tbs-sct.gc.ca/est-pre/20042005/SDC-DSC/image/Graph2.gif) |
Note: CPP - Revenues and expenditures
trend is presented for fiscal years 2001-2002 to 2004-2005. Records
for prior years were prepared on a modified cash basis of accounting,
while records have been prepared on an accrual basis since 1998-1999. |
CPP - Summary26 |
(millions of dollars) |
Actual - Restated3 |
Forecast |
Planned Spending |
2001-2002 |
2002-2003 |
2003-2004 |
2004-2005 |
|
|
|
|
|
Revenue |
|
|
|
|
Contributions |
22,991 |
25,203 |
28,028 |
29,341 |
Investment Income Canada
Pension Plan |
3,260 |
2,910 |
2,857 |
2,386 |
CPP Investment Board1 |
305 |
(4,152) |
7,209 |
- |
CPP Investment Fund2 |
3,385 |
193 |
182 |
- |
Total Investment Income |
6,950 |
(1,049) |
10,248 |
2,386 |
Total Revenue Expenditures |
29,941 |
24,154 |
38,276 |
31,727 |
Benefit payments |
20,490 |
21,575 |
22,606 |
23,570 |
Administrative expenses |
371 |
422 |
418 |
393 |
Total Expenditures |
20,861 |
21,997 |
23,024 |
23,963 |
Increase |
9,080 |
2,157 |
15,252 |
7,764 |
Year-end balances |
55,094 |
57,251 |
72,503 |
80,267 |
Note
- Canada Pension Plan Investment Board actual amounts are based on
their audited financial statements. The CPP Investment Board
invests mainly in equities. The investment income is determined
by the change in fair values of these investments. It is
difficult to forecast the fair value and as a result, the
investment income for the year ending March 31, 2004 has been
used.
- The Canada Pension Plan Investment Fund is made up of
provincial, territorial and government bonds. As at March 31,
2004, these are valued at fair value. The revenue of the Fund is
made up of the interest paid by the bonds as well as the change
in fair values of these investments. The interest income from
the Investment Fund is presented under "Canada Pension
Plan" of this section. Since it is difficult to forecast a
future fair value, only the change in fair value for the year
ending March 31, 2004 has been used.
- 2001-2002 figures have been restated to reflect changes to
accrual accounting in 2002-2003. As well, the 2001-2002 and
2002-2003 figures have been restated to reflect the changes
brought upon by the evaluation of the provincial, territorial
and federal bonds from cost to fair value in 2003-2004.
|
Long-term Forecast
The CPP legislation requires a schedule of contribution rates with a review
every three years by the federal and provincial finance ministers. The review
determines whether any adjustments to the schedule are necessary. If so, the
adjustments are implemented through legislation or agreement among finance
ministers, or automatically under a formula that ensures that the Plan will have
a reserve equal to approximately two years worth of benefits. Amendments to the
rate schedule or the automatic regulation require the approval of at least two
thirds of the provinces with at least two thirds of the population of all the
provinces.
The following table shows the forecast of revenues and expenditures affecting
the CPP for the period between December 31, 2005 and December 31, 2025, based on
the Office of the Superintendent of Financial Institutions' CPP Nineteenth
Actuarial Report as at December 31, 2000.27
The Assets/Expenditures Ratio reflects the size of the year-end assets relative
to the expenditures.
Forecast of Revenues
and Expenditures |
Year |
Contribution Rate |
Contributions |
Investment Earnings |
Expenditures |
Assets at Dec. 31 |
Assets/ Expenditure ratio |
|
% |
$ millions |
|
|
|
|
|
|
|
2005 |
9.90 |
29,247 |
5,434 |
24,747 |
82,745 |
3.19 |
2010 |
9.90 |
36,414 |
8,853 |
31,945 |
142,253 |
4.21 |
2015 |
9.90 |
46,463 |
14,698 |
42,856 |
223,170 |
4.90 |
2020 |
9.90 |
59,016 |
21,813 |
58,350 |
327,682 |
5.28 |
2025 |
9.90 |
74,064 |
30,206 |
78,865 |
449,134 |
5.38 |
- 1 The Canada Pension Plan,
as a Specified Purpose Account, is described in detail later in this
report.
- 2 More information on the
Canada Pension Plan is provided in Annex 10 of this report. Details
of the Old Age Security program are provided in Annex 4 of this
report.
- 3 ISP funds for call
centres are contracted to MSC for service delivery through the
enterprise-wide internet and telephone client service model.
Additional information on this approach can be found under Strategic
Outcome #5: A Canada where service delivery is focused on citizen
needs.
- 4 http://www.sdc.gc.ca/en/gateways/topics/sya-gxr.shtml
- 5 "Ageing and Income:
Financial Resources and Retirement in 9 OECD Countries"
Organization for Economic Cooperation and Development, Paris, 2001,
p. 9.
- 6 http://www.hc-sc.gc.ca/seniors-aines/pubs/factoids/2001/no12_e.htm
- 7 http://socialunion.gc.ca/pwd/unison/unison_e.html
- 8 Although the
Multilateral Framework reflects federal-provincial-territorial
consensus, it was not formally endorsed by Québec and the
territories. The territories have confirmed their support for the
principles and direction of the Multilateral Framework. They will
continue to provide labour market programs for people with
disabilities, and will participate in the Multilateral Framework in
the future if outstanding fiscal arrangement issues are resolved.
This situation does not represent a change for the territories,
which did not participate in the Employability Assistance for People
with Disabilities initiative. For more information, please visit http://www.sdc.gc.ca/asp/gateway.asp?hr=en/hip/odi/08_multilateralFramework.shtml&hs=pyp.
- 9 http://www.parl.gc.ca/InfoComDoc/37/2/HUMA/Studies/Reports/humarp05-e.htm
- 10 More details are at http://www.nationalchildbenefit.ca/home_e.html
- 11 The Government of Québec
has stated that it agrees with the basic principles of the NCB. Québec
chose not to participate in the NCB because it wanted to assume
control over income support for children in Québec. As such,
references to joint federal/provincial/territorial positions do not
include Québec.
- 12 http://www.nationalchildbenefit.ca/ncb/library1.shtml#2002
- 13 http://www.nationalchildbenefit.ca/ncb/geston3_e.shtml
- 14 While the Government
of Québec supports the general principles of the ECD Agreement, it
did not participate in developing this initiative because it intends
to preserve its sole responsibility on social matters. However, Québec
receives its share of federal funding and the Government of Québec
is making major investments toward programs and services for
families and children.
- 15 While the Government
of Québec supports the general principles of the Early Learning and
Child Care initiative, it did not participate in developing these
initiatives because it intends to preserve its sole responsibility
on social matters. However, Québec receives its share of federal
funding and the Government of Québec is making major investments
toward programs and services for families and children.
- 16 The Government of
Canada report is available at http://socialunion.gc.ca/ecd_e.html.
Other jurisdictions' reports are available on their respective
websites.
- 17 http://www.canadabenefits.gc.ca
- 18 Information on the
Public Service Modernization Act is at http://www.hrma-agrh.gc.ca/hrmm-mgrh/psma-lmfp/index_e.asp
- 19 Information on
Government of Canada official languages policies is at http://www.tbs-sct.gc.ca/ollo/common/policies-politiques_e.asp
- 20 Information on
"Embracing Change" is at http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/tb_852/ecfps_e.asp
- 21 Information on
Government of Canada values and ethics policies and initiatives is
at http://www.hrma-agrh.gc.ca/veo-bve/index_e.asp
- 22 The Government of Québec
has stated that it agrees with the basic principles of the NCB. Québec
chose not to participate in the NCB because it wanted to assume
control over income support for children in Québec. As such,
references to joint federal/provincial/territorial positions do not
include Québec. This figure also includes $1M in operating funds.
- 23 While the Government
of Québec supports the general principles of the ECD Agreement, it
did not participate in developing this initiative because it intends
to preserve its sole responsibility on social matters. However, Québec
receives its share of federal funding and the Government of Québec
is making major investments toward programs and services for
families and children.
- 24 While the Government
of Québec supports the general principles of the Early Learning and
Child Care initiative, it did not participate in developing these
initiatives because it intends to preserve its sole responsibility
on social matters. However, Québec receives its share of federal
funding and the Government of Québec is making major investments
toward programs and services for families and children.
- 25 Information about the
Canada Pension Plan Investment Board can be found at http://www.cppib.ca
- 26 More information
relating to 2002-2003 is reported in the CPP financial statements
which can be found in the 2003 Public Accounts of Canada, Volume 1,
Section 6, at http://www.pwgsc.gc.ca/recgen/text/pub-acc-e.html
- 27 The Nineteenth
Actuarial Report can be found at http://www.osfi-bsif.gc.ca/eng/office/actuarialreports/index.asp
|