Shortened timeline to launch Phoenix replacement carries ‘risk’ with ‘substantial’ backlog, warns AG report

Auditor General Karen Hogan said the backlog of pay issues needs to be eliminated as soon as possible in order to prevent transferring these unprocessed transactions to a new pay system.

As of Sep. 30, 2025, the total backlog for pay issues connected to Phoenix stood at over 233,000 transactions, impacting over 133,000 employees, Auditor General Karen Hogan’s report found.The Hill Times photograph by Andrew Meade

News

BY MARLO GLASS

March 23, 2026

UPDATED March 24, 2026

As the federal government prepares to replace its much-maligned Phoenix pay system, progress has been limited in reducing the backlog of existing pay issues, according to a report from Canada’s auditor general, which says the lingering problems could risk the effectiveness...

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