Lessons Learned Study of the Personal Credits Process

Findings

From the close to 80,000 Common Experience Payment recipients who were eligible to receive Personal Credits, just over one fifth benefited from the initiative. A number of factors contributed to the challenges faced by INAC, and supporting parties, in the administration of Personal Credits and efforts to ensure strong uptake. These included:

• An ambitious initiative originally set at approximately 15 months in duration - a timeline that included the time needed by the recipient to identify and complete educational activities;
• The petitioning to the Courts to extend the duration of the initiative in order to allow for greater uptake of Personal Credits, resulting in increased effort and expense required to deliver the initiative;
• The target audience for Personal Credits was aging, and a portion of it was transient;
• The use of a mailing list that was outdated by approximately seven years; and
• The Personal Credits application and redemption process that was generally viewed as complex.

INAC reacted and adjusted to these and other challenges, in collaboration with other parties involved in Personal Credits implementation, as follows:

• In response to low uptake and other issues, and in addition to its regular working group meetings with Crawford Class Action Services and other Recipient Organizations, in the fall of 2014, INAC led a 'Workout' session with other parties in order to ensure all parties had a common understanding of the Personal Credits process and its terms and conditions.
• In partnership with other parties, INAC successfully petitioned the Court to extend the Personal Credits Administration Plan timelines. This was done in order to allow a higher number of Common Experience Payment recipients and family members to access the educational credit.
• INAC worked with the Assembly of First Nations and Inuit Representatives to obtain up-to-date contact information so that information packages could be resent to those whose packages had been returned as undeliverable.
• Aboriginal liaisons with the Assembly of First Nations and Inuit representatives were engaged to play important roles in communicating information about Personal Credits to those who could potentially receive them.

1.2.1 Roles and Responsibilities

The parties playing roles in the administration of Personal Credits included the following.

• The Trustee – On behalf of Her Majesty in Right of Canada, the incumbent ministers from time to time responsible for Indian Residential Schools Resolution Canada and Service Canada act as Trustee of the Designated Amount Fund, out of which Common Experience Payments and Personal Credits were paid. As a result, both INAC and Employment and Social Development Canada/Service Canada, played roles in the implementation of Personal Credits. As per the October 31, 2013, Personal Credits Court Order, INAC, as co-trustee of the Indian Residential Schools Settlement Agreement along with Employment and Social Development Canada/Service Canada, was ordered to provide staff and infrastructure needed to review supporting documentation provided by the agent of the trustee. This direction was given in order to ensure that the Agent conformed to the Court approved terms and conditions and to satisfy requirements for product verification obligations under the Financial Administration Act. The departments had therefore approximately seven months in which to develop an administration plan for Personal Credits. Staff and infrastructure support was ultimately provided by INAC's Settlement Agreement Branch. The Department's main task, through the Settlement Agreement Branch, was to oversee Crawford's administration of Personal Credits, to review Personal Credits applications recommended for payment, and to ensure that they met the requirements as per the Court approved Personal Credits terms and conditions, as well as Section 34 financial delegation authority.
  
  A Memorandum of Understanding was signed between INAC and Employment and Social Development Canada/Service Canada for the delivery of Personal Credits. A Memorandum of Understanding for the Common Experience Payments and the Designated Amount Fund was already in place for the implementation of Common Experience Payments.
• The Agent of the Trustee – Crawford Class Action Services, a Canadian firm based in Waterloo specializing in claims services, business process outsourcing, and consulting, was designated by Canada as the Agent of the Trustee. It received from Canada the mandate to administer the process that would support the distribution of Personal Credits. Crawford Class Action Services was responsible for receiving Personal Credits acknowledgement and redemption forms, assessing these forms, resolving application deficiencies with Common Experience Payment recipients and/or educational entities/groups, and denying applications that were incomplete or deficient as of prescribed deadlines. Crawford established and operated the help desk/call centre to assist Common Experience Payment recipients, family members, educational entities and groups. In addition, the firm was responsible for administering payments to educational entities/groups for approved applications.
• Recipient Organizations – The Assembly of First Nations and Inuit representatives^{Footnote 5} played a role in the formulation of the terms and conditions for the administration of Personal Credits, as they were involved in negotiations with Canada on terms and conditions content.
  
  The Assembly of First Nations and Inuit Representatives also played a role in the administration of Personal Credits by supporting First Nations, Métis, Non-Inuit and Inuit Common Experience Payment recipients in understanding Personal Credits and the application process to receive them. The Assembly of First Nations received a budget for communications activities designed to fill any gaps in a wider strategy. It used these resources to make information on Personal Credits available on its website and to create print and social media materials that explained the application process and how to complete forms, to put in place a help desk and to offer support. It also played a role in addressing any emerging needs, such as the process for pooling applications for educational activities related to culture, languages or history.
  
  The Assembly of First Nations also put in place four Aboriginal liaisons and the Inuit representatives received funding for four full-time employees (collectively, the "liaisons"). The liaisons worked with First Nations, Métis, Non-Inuit as well as Inuit Common Experience Payment recipients and organizations to disseminate information about Personal Credits. They also assisted Common Experience Payment recipients and group educational entities in filling out application forms. In addition, the liaisons worked with communities to coordinate the development and delivery of group programs and services related to the preservation, reclamation, development or understanding of First Nations, Métis or Inuit identities, history, culture or language. Within the Assembly of First Nations, Aboriginal liaisons were in place starting in February 2014 and work was expected to be completed in May 2015.
• Aboriginal Advisory Committees – The Court Order of October 31, 2013, included the establishment of advisory committees in support of the administration of Personal Credits. Put in place were two committees, namely the Personal Credits for First Nations, Métis and all other Non-Inuit Common Experience Payment Recipients Advisory Committee, and the Personal Credits for Inuit Common Experience Payment Recipients Advisory Committee. These committees were responsible for: providing general administrative advice and direction; reviewing and approving educational institutions and groups, programs and group educational services that were not on the approved list; and reviewing and making decisions on Personal Credits appeals.

1.2.2 Personal Credits – Timelines

An audit of the Designated Amount Fund was completed in August 2013 and determined that an amount exceeding $40 million remained following payment of all Common Experience Payments. A period of seven months then ensued within which Canada needed to finalise Terms and Conditions with the Assembly of First Nations and Inuit Representatives, and develop both an administration plan and notice plan. These were then approved in October 2013 through court order. The actual implementation of the Personal Credits process began in January 2014 and was planned to be completed by April 30, 2015. However, the completion date was later revised to August 31, 2015.

1.2.3 Personal Credits – Eligible Education Programs and Services

A pre-approved list of educational institutions and groups was jointly developed by Canada, the Assembly of First Nations and Inuit Representatives. Common Experience Payment recipients could also request to have their Personal Credits redeemed at an educational institution or group that did not appear on the approved list.^{Footnote 6}

1.2.4 Personal Credits – Administrative Costs

The anticipated costs associated with the administration of Personal Credits were approved by Court Order on October 31, 2013, and were to be paid out of the Designated Amount Fund.^{Footnote 7} Costs were estimated at approximately $23.6 million.^{Footnote 8} The largest proportion ($15.7 million or 66.5 percent) was set aside for the administration of Personal Credits by the Agent of the Trustee, Crawford Class Action Services. This was followed by approximately $2.4 million (10.2 percent)^{Footnote 9} for INAC administration and oversight; approximately $2.3 million (9.6 percent) for Assembly of First Nations liaison activities; and approximately $1.2 million (five percent) for Inuit representation liaisons. Remaining amounts included just over $1.0 million (4.2 percent) for Employment and Social Development Canada/Service Canada in support of the administration of the Designated Amount Fund; $0.8 million (three percent) in support of a notice development plan, and $0.2 million (0.9 percent) for the work of the Advisory Committees.

1.2.5 Personal Credits – Application Process

Anyone who received a Common Experience Payment could apply for Personal Credits. There were two steps to the Personal Credits application process, as described below.

• Step 1:Acknowledgement – Common Experience Payment recipients were sent a Personal Credits information package in the mail. Included in this package was a Personal Credits Acknowledgement Form that was personalized for the recipient. The recipient had to complete the form by indicating who would be using the Personal Credits and at which educational entity(ies) and/or group(s) the Personal Credits would be redeemed.
• Step 2: Redemption – Once the information provided on the Acknowledgement Form was processed and approved, a second form, called the Personal Credits Redemption Form, was mailed to the Common Experience Payment recipient. A Redemption Form was sent for each Common Experience Payment transferee using the Personal Credits. The Common Experience Payment recipient, or the transferee(s), had to submit the Redemption Form(s) to the educational entity(ies) or group(s) that was to provide the educational service.
  
  The educational entity(ies) and/or group(s) then had to complete the Personal Credits Redemption Form and submit it to Crawford Class Action Services, care of the Personal Credits Administrator.

It was the responsibility of the Common Experience Payment recipient to ensure that the Personal Credits deadlines were met.

3.1.1 Process Timelines

The Personal Credits process was designed with a series of process deadlines. As a result, Crawford Class Action Services experienced a significant influx of forms being received prior to deadlines.

Responding to a large volume of form submissions proved challenging to Crawford Class Action Services. As a result, the firm was unable to meet its service standards for the processing of acknowledgment forms and redemptions. This increased the level of management oversight required by INAC, placing strains on its resources.

3.3.1 Step 1: Acknowledgement

Personal Credits administrative statistics maintained by Crawford Class Action Services indicate that over the administration period^{Footnote 12} and as part of Step 1 - Acknowledgement, close to 80,000 Common Experience Payment recipients were mailed Personal Credits information packages containing the Acknowledgement Form. Of these, close to 19 percent (14,704) of packages were returned not having reached an eligible Common Experience Payment recipient. Reasons for packages being returned varied. The lists used to contact possible Personal Credits recipients were produced using contact information taken from the administration of the Common Experience Payment. Some of the information on these lists was close to seven years old. As a result, information was outdated given that people may have moved, were deceased, etc.

Given outreach, communications and the help-lines, just over 23,500 packages were resent to recipients, presumably individuals who: did not receive the initial mail-outs; who had misplaced or lost their forms; who initially did not wish to apply but then changed their minds (e.g., following the extension, following additional communications activities); who required information in another language, etc. These additional mail outs allowed the reach of the initiative to be expanded.

Of the close to 80,000 eligible recipients, over the life of the initiative approximately 39 percent (30,770) submitted Acknowledgement Forms. It is important to note that there was no obligation by Common Experience Payment recipients to confirm or decline their desire to participate in Personal Credits. Thus, limited information is available about why people may have decided to apply or not.

The length of the form, at some seven pages, in addition to its level of complexity were also felt by INAC staff to have been factors influencing response levels.

Of those who did indicate interest in applying for Personal Credits by returning the Acknowledgement Form to Crawford Class Action Services, 10.6 percent (3,240) had their forms denied.^{Footnote 13} The most prevalent reasons for denial included the Acknowledgement Form being incomplete (80 percent of those denied) or the Acknowledgement Form being postmarked after the March 9, 2015, deadline (18 percent).^{Footnote 14}

Often the forms were deemed deficient and were returned because they were incomplete or had errors. Based on administrative data, the largest proportion of errors (between 27 percent and 64 percent^{Footnote 15}) occurred in Section D^{Footnote 16} of the form. It was in this section where options were given to applicants as to how personal credits could be used (i.e., for personal use, for use by a family member, etc.). A review of Section D of the form suggests that instructions could have been made clearer and that terminology such as 'Education Entity' and 'Group Education Services' may have been confusing. Section B – Personal Representative's Information, also proved challenging with between six and nine percent of these sections having errors or being incomplete. Instructions in this section may have been seen to be confusing as the form indicated, in bold, that "This section is only to be completed by a personal representative", but later includes additional instruction that stated, in bold, "You MUST fill out both Section A and Section B." Another six to nine percent had errors or were incomplete in multiple sections. INAC staff indicated that form content had been influenced by legal review and that there had generally been a lot of back and forth between INAC's Legal Services Unit and the Settlement Agreement Branch on form content. Workshops with INAC staff held in support of this study also revealed that, as a result of time pressures imposed given court ordered timelines, there had been insufficient time to allow for pre-testing of the forms used in the Personal Credits process.

Incomplete forms and, therefore, their rejection lengthened Crawford Class Action Services' processing timelines. While measures were taken to reach applicants to review deficiencies, including the forwarding of a deficiency letter, these nonetheless added days to the process. Additional pressures were placed on the Personal Credits process when recipients requested changes to the transferee and/or educational entity/group. This resulted in a second redemption form needing to be issued. Other issues included applications being received for non-eligible transferees and/or, non-eligible educational institutions or courses being proposed.

3.3.2 Step 2: Redemption

Once the Acknowledgement Form was successfully processed, a Redemption Form was mailed to the Common Experience Payment recipient. This confirmed that the recipient could use the Personal Credit. The Common Experience Payment recipient, or the transferee(s), had to submit the Redemption Form to the educational entity(ies) and/or group(s) that they had selected and which had been approved to provide the educational service. The educational entity(ies) and/or group(s) then had to complete the Personal Credits Redemption Form and submit it to Crawford Class Action Services, care of the Personal Credits Administrator.

As of the initial December 1, 2014, cut off date for receipt by Crawford Class Action Services of the Redemption Form, just under 24,000 Redemption Forms had been submitted (representing approximately 30 percent of the estimated 80,000 possible applicants).^{Footnote 17} Of those, eight percent (1,902) were rejected. In the event that Redemption Forms were deemed to be missing information, the applicant was sent a deficiency letter and had 30 calendar days from the date of the letter to respond and address deficiencies.

Within Step 2 - Redemption, the primary cause of denials was due to redemption forms being received after the Court approved deadline. Additional challenges occurred due to a lack of compliance by Common Experience Payment recipients and/or educational entities with the Court approved terms and conditions. Issues also included providing the required proof of registration, required invoices, and submitting more than one change request.

As noted earlier, the fact that much process activity occurred around pre-set deadlines resulted in difficulty by Crawford Class Action Services to meet service standards. As a result, payments to educational institutions were delayed.

3.3.3 General Application Issues

Despite the rules outlined in the Personal Credits Administration Plan with respect to changes to how and who could use recipients' Personal Credits, Crawford Class Action Services continued to receive a significant number of change requests. This resulted in additional delays as to when the Personal Credits could be used as subsequent acknowledgment and/or redemption forms had to be created and sent to the Common Experience Payment recipient and/or educational entity(ies).

In total, nine percent (5,142/54,544) of the forms submitted at the acknowledgment and redemption stages were denied because they were incomplete. Unanimously, interviewees stated that one of the major reasons why some forms were incomplete was due to the complexity of the two step Personal Credits process. Forms were incomplete due to: missing estate documentation; missing invoices; ineligible expenses; Common Experience Payment recipients not providing missing information or requesting to change the transferee and/or educational entity/group; or failing to return calls to Crawford Class Action Services.

3.5.1 Outreach, Communications and Collaboration

While various methods were undertaken to attempt to reach possible eligible recipients, there were a number of worthwhile practices employed as part of Personal Credits outreach and communications activities, as prescribed in notice plans and simply as identified as good measures to apply to the process.

Aboriginal liaisons proved valuable in assisting community members with completing Personal Credits acknowledgment and redemption forms. INAC staff indicated that it had been valuable to have their support, and that liaisons and their organizations often had closer ties to communities than departmental staff. The liaisons also worked with communities on the development, coordination and delivery of group programs and services that could be put in place where there was interest and demand from Common Experience Payment recipients.

INAC worked to ensure collaboration with other parties, including the Assembly of First Nations and Inuit Representatives, in order to take advantage of their networks and knowledge as a means of increasing awareness of Personal Credits. INAC worked with these organizations and its Aboriginal liaisons to raise awareness of Personal Credits with Common Experience Payment recipients, and particularly, family members, who may not have known or understood how they might access Personal Credits, given the early targeting of the Personal Credits more specifically to Common Experience Payment recipients.

Additional outreach also occurred with educational institutions that had perhaps not been widely made aware of the initiative early on.