Register a supplementary unemployment benefit plan - How to apply

From Canada Revenue Agency

3. How to apply

Registration application documents

When you apply to register a SUBP with the CRA, there is no registration form to complete. Instead we require the following information:

• a letter requesting the plan be registered that is signed by each employer participating in the plan
• if the plan has multiple employers, include a list with the full name and address of each employer and the effective date that they joined the plan
• the plan rules or terms
• the trust agreement or deed signed by all participating employers
  • we will accept one plan document that has both the plan rules and the trust agreement
  • the trustee can be an individual, a group of individuals or a corporation licensed or otherwise authorized to offer its services as a trustee in Canada
• if the plan provides benefits for periods of unemployment due to sickness, training, accident, disability, or a temporary stoppage of work, a copy of the letter of acceptance from Service Canada must be included
  • this letter is not needed when the plan only provides benefits for maternity, parental, compassionate care or family caregiver leave
• a copy of any full or partial collective agreements that state the conditions that apply to the plan rules and trust agreement
• a letter from each employer participating in the plan identifying the employees who are eligible for the plan
• a copy of the trust’s financial statements for the preceding year, if applicable

Plan rules or terms

The plan text must specify the following:

• the class or group of employees to be covered and the eligibility requirements. Employees who are not eligible include:
  • a partner or proprietor
  • a related person who directly or indirectly controls the employer, or
  • a parent, spouse, common-law partner or child of one of the above

Where the employer is a corporation, control means ownership of the necessary number of shares to hold the majority of votes when electing the corporation’s Board of Directors, or to authorize the corporation’s wind-up. If there is no share capital, control means the person who has the ability to appoint the corporation’s Board of Directors.

• The plan must state the:
  • amount and timing of the employer contributions
  • number of weeks the benefits are paid to the employees
  • maximum funding level of the trust
• the method of determining the benefits payable to the eligible employees
• a statement that the eligible employees will be promptly informed of the plan terms in writing
• a statement that the eligible employees will be advised of the benefits that they may be entitled to under the plan or be given access to this information when requested
• a statement detailing how funds will be disbursed on plan wind-up
• at no time will the transfer of amounts to an employees’ welfare fund be allowed, either when the plan is operating or on wind-up
  • The term employees’ welfare fund refers to any fund that is kept for the general welfare of the employees. Some examples of this type of fund include any kind of sickness, health or income maintenance plan.

Contributions and the maximum funding level have to be reasonable for the number of eligible employees, their salary levels, and the benefit provisions of the plan.

Send your application

Currently, the CRA only accepts supplementary unemployment benefit plan applications by mail.

Send us your application package with all required supporting documents to:

Registered Plans Directorate
Canada Revenue Agency
875 Heron Rd
Ottawa ON  K1A 0L5