Forward Regulatory Plan: 2018 to 2020

From Employment and Social Development Canada (ESDC)

Official title: Employment and Social Development Canada (ESDC) - Forward Regulatory Plan: 2018 to 2020

On this page 

• Introduction
• Proposed regulatory initiatives: 2018-2020
  • Amendments to the Canada Pension Plan Regulations
  • Regulations amending the Immigration and Refugee Protection Regulations – Strengthening Worker Protections
  • Regulations amending the Canada Education Savings Regulations – Simplifying Administration and Delivery of Incentives
  • Regulations amending the Apprentice Loans Regulations (Eligible trades)

Introduction

A forward regulatory plan is a public list or description of anticipated regulatory changes or actions that a department intends to bring forward or undertake in a specified time frame. It is intended to give consumers, business, other stakeholders and trading partners greater opportunity to inform the development of regulations and to plan for the future. It should be noted that this forward regulatory plan will be adjusted and updated over time as ESDC’s operating environment also changes over time.

This plan provides information on planned and potential regulatory initiatives that ESDC expects to bring forward over the next two years. It also identifies public consultation opportunities and a departmental contact for each regulatory initiative.

Proposed Regulatory Initiatives: 2018-2020

Proposed Amendments to the Canada Pension Plan Regulations

Description of the objective

The following proposed regulatory amendments are to align with (1) CPP Enhancement that was enacted through Bill C-26, and (2) the 2016-2018 Triennial Review Legislative Amendments to the Canada Pension Plan (CPP), which was enacted as part of Bill C-74.

Bill C-26

• Amendment Consequential to the CPP Enhancement (Bill C-26) and the Quebec Pension Plan (QPP) Enhancement:

  Section 41

  It is proposed to make a twofold amendment to section 41 of the CPP Regulations:

  1. This section provides for the QPP contribution rates for the years 1992 to 1996. It should be updated to take into account the current contribution rate and the two additional contribution rates introduced by the QPP enhancement.
  2. The reference to s. 53 CPP will need to be updated to take into account the additional contributions made under the QPP Enhancement.

• Amendment Regarding Cancelling a Retirement Pension:

  In cases where a retirement pension beneficiary submits an application for a disability pension and is subsequently determined to be eligible, the CPP Regulations require that the individual submit, in writing, a request to cancel their retirement pension within 60 days of receipt of the notice of eligibility for the disability pension. It is proposed to remove the requirement placed on retirement pension recipients to submit a written request to cancel their retirement pension.

  Subsection 46.2(2) places the onus on the retirement pension recipient to submit the request to cancel that pension within a strict 60-day period. Failure to submit the request within the prescribed time limit results in an individual losing out on the higher benefit that they are entitled to (i.e., the disability pension).

  It is proposed to amend subsection 46.2(2) to deem the application for a disability pension to also be a request to cancel the retirement pension if the individual is determined to be eligible to the disability pension, unless the individual requests otherwise. This would reduce the burden on the pension recipient and provide for a smooth transition to the disability pension.

• Amendments for Electronic Filing of Applications

  There is a risk that section 43 currently does not allow for the submission of an application by electronic means. Similar wording is found in section 71. Therefore, it is proposed to amend these sections to ensure that there are no impediments to the electronic filing of applications for CPP benefits.

Bill C-74

• The elimination of age restrictions for a survivor’s pension and fix a $2,500 flat rate for the amount of the death benefit

  Currently, individuals under the age of 35 are ineligible for a survivor’s pension, unless said individual has a dependent child or is considered disabled under the provisions of the CPP. In addition, survivors who are not disabled and do not have dependent children have a reduced survivor’s pension if they were under the age of 45 when their spouse or common-law partner died.

  The definitions of “wholly or substantially” and “survivor with dependent children” in subsection 42(1) of the CPP must be repealed as these concern the dependent child eligibility requirement which will become inoperative following the legislative amendments. Section 65 of the Canada Pension Plan Regulations should also be repealed as this concerns the definition of whole or substantial maintenance of dependent children of the deceased contributor. Concurrently, paragraph 52(k) of the Canada Pension Plan Regulations will be repealed as these provisions outline information provided to the Minister by a survivor who maintains a dependent child of the deceased contributor. The presence of dependent children will no longer be relevant for determining eligibility to a survivor’s pension or the amount of the pension.

  The proposed regulations also amend the amount of the death benefit to provide a flat rate of $2,500. Presently, the death benefit under the CPP is a lump sum, up to a maximum of $2,500, based on the amount of a contributor’s retirement pension. The legislative amendments eliminate the variable amounts of the death benefit in favor of a lump sum of $2,500 for eligible individuals.

  Section 64 of the CPP Regulations will be amended to record the effective date of December 31, 2018 for the application of the new provisions as to the payment of the death benefit.

• Amount of Death Benefit, Consequential Amendment to Triennial Review Reforms

  It is proposed to amend section 64 of the CPP Regulations as some subsections will cease to apply on or after January 1, 2019, when the Death Benefit becomes a flat-rate benefit.

• Post-retirement Disability Benefit, Consequential Amendment to Triennial Review Reforms

  Bill C-74 creates a new benefit: the post-retirement disability benefit (PRDB)

  Sections 71 and 72

  1. It is proposed to amend the title before section 71 of the CPP Regulations (“Request for Reinstatement of Disability Pension and Disabled Contributor’s Child Benefit”) to include reference to the PRDB.
  2. It is proposed to amend subsection 71(1) of the CPP Regulations to include the PRDB, in order to be consistent with the amendment to section 70.1 of the Act.

  Section 72 prescribes the information that must be provided in order to have a pension automatically reinstated. It is proposed to amend section 72 to add reference to the PRDB, as it will be possible to automatically reinstate this new benefit.

  Section 76.1

  This section provides for deducting from a benefit to repay a disability income program. It is proposed to amend this section to take into account the PRDB.

Enabling Act: Canada Pension Plan

Indication of Business Impacts

There are no expected business impacts.

Public Consultation Opportunities

The legislative amendments will be tabled in Parliament in 2018 and there will be committee hearings on the proposed legislative amendments following the second reading of the Bill. The proposed amendments to the Canada Pension Plan Regulations will be published in the Canada Gazette Part I in 2018.

Departmental Contact

Chantal Mrak
Program Manager
CPP Policy and Legislation
Employment and Social Development Canada
819-654-1651
chantal.mrak@hrsdc-rhdcc.gc.ca

Regulations amending the Immigration and Refugee Protection Regulations – Strengthening worker protections

Description of the objective

The objective of these amendments to the Immigration and Refugee Protection Regulations is to make further enhancements to the Temporary Foreign Worker Program and International Mobility Program employer compliance regimes, including new employer conditions on employers, to strengthen protections for foreign workers.

Enabling Acts: Financial Administration Act; Immigration and Refugee Protection Act

Indication of business impacts

There may be business impacts. The “One-for-One” Rule and/or the small business lens may apply. These amendments consist largely of obligations that are already in policy. Therefore, there could be some incremental compliance or administrative costs to small business but they will be of minimal impact relative to current requirements.

Public consultation opportunities

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) delivered its report, Temporary Foreign Worker Program – Report of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, on June 15, 2016.

Between mid-August and mid-October 2017, the Temporary Foreign Worker Program consulted with various stakeholders, including migrant worker support organizations, non-government organizations, consulate liaison officers, temporary foreign workers, provincial and territorial governments, and employers, to identify improvements to worker protections. Several more rounds of consultations are expected to occur late summer 2018 and will continue through 2019.

Additionally, further consultation will be sought through publication in Canada Gazette, Part I. Target for pre-publication is May 2019.

Departmental Contact

Donna Blois
Director, Temporary Foreign Worker Program
Skills and Employment Branch
Employment and Social Development Canada
819-654-3243
donna.blois@hrsdc-rhdcc.gc.ca

Regulations amending the Canada Education Savings Regulations – Simplifying administration and delivery of incentives

Description of the objective

The Canada Education Savings Regulations set out the rules that govern the payment of the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB) into Registered Education Savings Plans (RESP). RESP promoters deliver the education savings incentives to the public through agreements with the Department.

Regulatory amendments are being proposed to make the administration and delivery of the incentives more efficient and less complex.

The proposed amendments are:

• Proportional repayment after an investment loss:

  Currently, in the event of an investment loss in an RESP, the Canada Education Savings Regulations requires that, when a repayment is made, federal incentives are to be repaid in full before provincial incentives are repaid. The proposed amendment would permit the repayment to be made proportionally across federal and provincial incentives.

• Proportional partial transfers:

  The regulations governing eligible transfers of the CESG and CLB from one RESP to another require that all of the incentives, including those paid under a designated provincial program, be transferred proportionately. If one or more of the incentives cannot be transferred, the transfer is considered ineligible and the CESG and CLB in the relinquishing RESP must be repaid. The proposed amendment would remove the requirement that incentives paid under a designated provincial program be transferred proportionally for a transfer of CESG and CLB to be eligible. Existing provincial rules for proportional incentives will remain in effect, requiring the repayment of the provincial incentive, rather than all CESG and CLB.

• Educational assistance payment calculations:

  The Canada Education Savings Regulations contains formulas used to determine the amount of incentives and investment earnings in educational assistance payments (EAP), but no instructions on how to calculate an EAP when one or more of the incentives cannot be paid in an EAP. The proposed amendment would simplify the formulas and clarify how to calculate EAP amounts when an incentive in the RESP cannot be paid in the EAP.

• Repayment of pending grant:

  A proposed amendment that would clarify the requirement to repay the CESG if the contribution on which it was granted was withdrawn before the grant was paid into the RESP.

• Technical amendments:

  Amendments are also proposed to address recommendations made by the Standing Joint Committee for the Scrutiny of Regulations, which are administrative in nature. These amendments would remove the phrase "in the opinion of the Minister’ from the Canada Education Savings Regulations and ensure consistency between the English and French versions of the regulations.

Enabling Act: Canada Education Savings Act

Indication of business impacts

There may be business impacts. The “One-for-One” and/or Small Business Lens may apply.

Preliminary analysis suggests that business impacts for some RESP promoters may be limited to one time compliance costs to update computer systems.

Public consultation opportunities

The Registered Education Savings Plan Advisory Group, which includes approximately 90 RESP promoters, and the provinces who offer education savings incentives, were consulted in November 2016. In addition, pre-publication of these amendments in the Canada Gazette, Part I in June 2018 provided an opportunity for Canadians to comment on the proposed changes to the regulations.

Departmental contact

Chantal Simard
Director, Canada Education Savings Program
Learning Branch
Employment and Social Development Canada
819-654-8497
chantal.simard@hrsdc-rhdcc.gc.ca

Regulations amending the Apprentice Loans Regulations (Eligible trades)

Description of the objective

The objective of this proposal is to ensure that the list of eligible trades in Schedule 1 to the Apprentice Loans Regulations reflects the trades that are designated as Red Seal in each province. The Canadian Council of Directors of Apprenticeship merged the trades “Mobile Crane Operator” and “Mobile Crane Operator (Hydraulic)” into one category, referred to as, “Mobile Crane Operator” and changed “Sprinkler System Installer” to “Sprinkler Fitter”. As a result, an update to the list of eligible trades in Schedule 1 to the Apprentice Loans Regulations is required to reflect these changes. The targeted timeline for approval is Winter 2019.

Enabling Act: Apprentice Loans Act

Indication of business impacts

There are no expected business impacts.

Public consultation opportunities

Amendments made to Schedule 1 to the Apprentice Loans Regulations are administrative requirements and represent no change in policy. No pre-publication is required and there are no further opportunities for comment. The Apprentice Loans Regulations are set to come into force upon registration with publication in the Canada Gazette, Part II to follow.

Departmental contact

Atiq Rahman
Director, Canada Student Loans Program
Learning Branch
Employment and Social Development Canada
819-654-8456
atiqur.rahman@hrsdc-rhdcc.gc.ca