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7) Results

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As presented in table 1 on the following page, the Employment Insurance break-even premium rate for 2009 for residents of provinces with a Provincial Plan is forecasted to be 1.38% compared to 1.39% for 2008.

Section 65.3 of the Act requires that we take into account section 69 of the Act, and more specifically section 69(2) which refers to the Employment Insurance premium reductions to be granted to Provincial Plans. In terms of premium rates, it is therefore necessary to distinguish between provinces with and without a Provincial Plan. The types of Employment Insurance benefits covered by a Provincial Plan are maternity, parental and adoption and are also called Provincial Benefits. The Employment Insurance premium reduction for Provincial Benefits for 2009 is forecasted to be 0.35%, a 0.01% increase over the 2008 and 2007 rates of 0.34%.

Therefore, the 2009 Employment Insurance break-even premium rate for residents of provinces without a Provincial Plan, is forecasted to be 1.73% (or 1.38% plus 0.35%) same as 1.73% for 2008 (or 1.39% plus 0.34%).

The data source, methodology and assumptions used to determine these rates are described in Appendices I, II and III.

Table 1 below,  summarizes the resulting projections for the year 2009.

TABLE 1 : EMPLOYMENT INSURANCE PREMIUM RATE FORECASTS
Description Millions
BENEFITS Year 2009
REGULAR $9,545
PILOT PROJECTS 1  $57
EXTENSION OF TRANSITIONAL MEASURES 1 $0
REGULAR BENEFITS TOTAL $9,602
FISHING $277
WORK SHARING $14
MATERNITY AND PARENTAL $2,958
SICKNESS $987
COMPASSIONATE $10
EMPLOYMENT BENEFITS AND SUPPORT MEASURES (PART II OF THE ACT) $2,136
BENEFIT REPAYMENTS ($173)
NET BENEFITS $15,811
ADMINISTRATION $1,652
BAD DEBTS $89
PENALTIES ($63)
TOTAL COSTS $17,489
PREMIUM REDUCTION FOR WAGE-LOSS REPLACEMENT PLANS $806
INSURABLE EARNINGS - WITHOUT A PP $352,401
INSURABLE EARNINGS - WITH A PP $113,963
TOTAL INSURABLE EARNINGS $466,364
PREMIUM REFUNDS (AS A % OF REVENUES) 0.80%
EI PREMIUM RATE FOR PROVINCES WITH A PP 1.38%
EI PREMIUM RATE REDUCTION FOR PROVINCIAL BENEFITS 0.35%
EI BREAK-EVEN RATE FOR PROVINCES WITHOUT A PP 1.73%

1 Projected cost difference between 2007 and 2009 as 2007 is used as the base year (see section 5 of Appendix III).

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Date Modified:
2011-09-30