Pay system savings are kaput, feds admit
— Federal civil servants will be reimbursed for hiring tax accountants to sort through their pay problems and departments will be allowed to re-hire laid-off payroll employees, the federal government said Thursday as it tried to bail out its sinking Phoenix pay system.
A high-powered cabinet committee is also being created to fix the pay process, although a statement from the Prime Minister’s Office didn’t provide a deadline for achieving that goal.
In announcing the measures, the government acknowledged it will have to forgo $140 million dollars it expected to save over the next two years from implementing the new electronic payroll system — and that it could take that long to finally resolve all of the pay issues.
A cabinet working group, led by Public Safety Minister Ralph Goodale, will work to bring Phoenix to a so-called “steady state,” Prime Minister Justin Trudeau said in a statement.
The group includes Finance Minister Bill Morneau, Treasury Board President Scott Brison, Environment Minister Catherine McKenna and Natural Resources Minister Jim Carr, currently the acting minister of public services and procurement.
As tens of thousands of improperly paid civil servants face a tax-filing deadline this weekend, they are being assured any costs they incur as a result of pay issues will be covered.
“Employees who encountered Phoenix pay issues may seek up to $200 in reimbursement for tax advisory services in relation to their 2016 or 2017 income taxes,” the Treasury Board secretariat said.