The Globe and Mail reports in its Tuesday edition that replacing the troubled Phoenix pay system, which IBM helped develop, is estimated to cost at least $4.2-billion, says a report from Auditor-General Karen Hogan. The Globe's Bill Curry writes that the report highlights that federal efforts to address the backlog of longstanding pay complaints are inadequate. Since its launch in 2016, the Phoenix pay system has faced several issues, resulting in thousands of public servants experiencing inaccurate payments, with some complaints dating back seven years.
Ottawa has announced it will transition away from Phoenix in favour of a new pay system -- called Dayforce -- starting next year with three departments.
A previous target to move all federal departments to the new system by 2034 was moved up earlier this year to March 31, 2031. During the transition, the government will be running both pay systems.
Monday's audit report focused on a review of the planning work under way related to this change.
The Parliamentary Budget Officer estimated in 2019 that replacing the Phoenix pay system would cost $2.6-billion.
Monday's report said departments must clear their backlog of complaints before moving to the new system.
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