GATINEAU, QUEBEC, October 16, 2009-The Canada Employment Insurance (EI) Commission today released the 2010 Report of the Chief Actuary to the Employment Insurance Commission on the Employment Insurance Premium Rate and Maximum Insurable Earnings.
The Report of the Chief Actuary provides an estimated break-even premium rate for the coming year based on the principle that the rate should generate enough revenue to cover expected payments. Because the Government froze the EI premium rate for 2010 at $1.73 per $100 of insurable earnings through its Economic Action Plan, the calculation of this year's break-even premium rate serves an informational purpose only.
The Report also provides the Maximum Insurable Earnings, which represents the ceiling up to which EI premiums are collected and therefore is also the maximum amount considered in an application for EI benefits.
Starting in January 2006, Quebec began offering its own parental benefits, resulting in savings for the EI program and giving rise to a rate that is different from that for the rest of Canada.
*Note: Employers contribute 1.4 times the employee premiums.
In Budget 2008, the Government implemented changes to the governance and management of the EI Account by creating the Canada Employment Insurance Financing Board (CEIFB). The CEIFB will be responsible for a new EI premium rate-setting mechanism and will be in a position to set the 2011 EI premium rate.
To learn more about the EI Commission or the CEIFB, visit Human Resources and Skills Development Canada's Web site at www.hrsdc.gc.ca.
The Report of the Chief Actuary is also available on the Department's Web site at www.hrsdc.gc.ca/employment/ei/premium_rate/2010.
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Report of the Chief Actuary to the Canada Employment Insurance Commission on the Employment Insurance Premium Rate and Maximum Insurable Earnings
The Employment Insurance (EI) Commission is a tripartite organization with representation from business, labour and the Government of Canada that has a number of responsibilities pertaining to the delivery and administration of the EI program.
The Commissioner for Workers and the Commissioner for Employers are appointed by the Governor in Council for terms of up to five years. They are mandated to represent and reflect the views of their respective constituencies. Accordingly, both Commissioners develop and maintain consultative mechanisms to ensure that they fulfill this mandate. The Commission's chair and vice-chair positions are held by the Deputy Minister and Associate Deputy Minister of Human Resources and Skills Development Canada, and represent the interests of the Government of Canada on issues brought before the Commission.
On October 16, 2009, the Commission made public the Report of the Chief Actuary.
The Report of the Chief Actuary provides an estimated break-even premium rate for the coming year based on the principle that the rate should generate enough revenue to cover expected payments. Through the Economic Action Plan, the Government has frozen the EI premium rate for 2010 at the same rate as 2008 and 2009. Because the premium rate has been frozen for 2010, the calculation of this year's break-even premium rate serves an informational purpose only.
The Chief Actuary also calculates the Maximum Insurable Earnings for the coming year based on average weekly earnings and in accordance with the formula prescribed in the Employment Insurance Act. The Maximum Insurable Earnings represents the ceiling up to which EI premiums are collected and therefore is also the maximum amount considered in an application for EI benefits.
The Canada Employment Insurance Financing Board (CEIFB) will be responsible for implementing a new EI premium rate-setting mechanism and for setting the EI premium rate for 2011 and beyond.
To learn more about the EI Commission or the CEIFB, visit Human Resources and Skills Development Canada's Web site at www.hrsdc.gc.ca.
