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Appendix V - Relevant Acts

Employment Insurance Act

Maximum Yearly Insurable Earnings

4. (1) For the purposes of subsection 14(1.1), section 17, subsection 82(2) and sections 95 and 145, the maximum yearly insurable earnings is $39,000 until the amount calculated in accordance with subsection (2) for a year, before rounding down under subsection (4), exceeds $39,000, in which case the maximum yearly insurable earnings for that year is that amount, rounded down under subsection (4).

Calculation of amount

(2) The amount referred to in subsection (1) is the amount equal to 52 times the product obtained by multiplying

a ) the average for the twelve month period ending on June 30 in the preceding year of the Average Weekly Earnings for each month in that period

by

b ) the ratio that the average for the twelve month period ending on June 30 in that preceding year of the Average Weekly Earnings for each month in that twelve month period bears to the average for the twelve month period ending twelve months prior to June 30 of that preceding year of the Average Weekly Earnings for each month in that twelve month period ending twelve months prior to June 30 of that preceding year.

Subsequent years

(3) For years subsequent to the year in which the maximum yearly insurable earnings exceeds $39,000, before rounding down under subsection (4), the maximum yearly insurable earnings is the maximum yearly insurable earnings for the preceding year, before rounding down under subsection (4), multiplied by the ratio that the average for the twelve month period ending on June 30 in that preceding year of the Average Weekly Earnings for each month in that twelve month period bears to the average for the twelve month period ending twelve months prior to June 30 of that preceding year of the Average Weekly Earnings for each month in that twelve month period ending twelve months prior to June 30 of that preceding year.

Rounding down Average

(4) If the amount calculated in accordance with subsection (2) or (3) is not a multiple of one hundred dollars, the amount of the maximum yearly insurable earnings is rounded down to the nearest multiple of one hundred dollars.

Average Weekly Earnings

(5) The Average Weekly Earnings for a month is the average weekly earnings of the Industrial Aggregate in Canada for the month as published by Statistics Canada under the authority of the Statistics Act.

PART III - Premiums and Other Financial Matters 

Chief actuary

65.3 (1) The chief actuary referred to in section 28 of the Department of Human Resources and Skills Development Act shall determine the premium rate for a year that, in the chief actuary's opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year.

Changes to payments

(2) If the Minister has announced, on or before October 14 of the previous year, any changes to payments to be made under paragraph 77(1)( a), (b) or ( c) for a year, the chief actuary shall, at the request of the Minister, take into account those changes and make another determination of the premium rate that, in the chief actuary's opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that would be made under subsection 77(1) during that year if the changes were to commence on the date specified by the Minister.

Report to the Commission

(3) The chief actuary shall provide to the Commission a report setting out the premium rate determined under subsection (1) or (2) for a year, on or before October 14 of the previous year, and the Commission shall, as soon as possible after receiving the report, make it available to the public.

Annual premium rate setting

66. (1) Subject to subsection (2) and sections 66.1 and 66.3, the Commission shall set the premium rate for a year, taking into account

a ) the principle that the premium rate should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year, based on the information provided by the Minister of Finance under section 66.2, taking into account any regulations made under section 69, and considering any changes to payments made under subsection 77(1) that have been announced by the Minister;

b ) the report of the chief actuary to the Commission for that year; and

c ) any public input.

Difference year to year

(2) The premium rate for a year may not be increased or decreased by more than fifteen one-hundredths of one per cent (0.15%) relative to the premium rate for the previous year.

Time limit

(3) The Commission shall set the premium rate for a year on or before November 14 in the previous year.

Cap on rate

66.1 For 2007 and 2008, the premium rate in each year may not be greater than 1.95%.

Forecast values

66.2 The Minister of Finance shall, on or before September 30 of a year, provide to the chief actuary and the Commission the most current forecast values of the economic variables that are relevant to the determination, under section 65.3 or under subsection 66(1), as the case may be, of a premium rate for the following year.

Governor in Council

66.3 Subject to subsection 66(2) and section 66.1, on the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may, on or before November 30 in a year, substitute a premium rate for the following year that is different from the one set by the Commission under subsection 66(1), if the Governor in Council considers it to be in the public interest.

Rounding percentage rates

66.4 If the calculation of a premium rate under section 65.3, 66 or 66.3 results in a rate that includes a fraction of one per cent, the resulting percentage is to be rounded to the nearest one-hundredth of one per cent or, if the resulting percentage is equidistant from two one-hundredths of one percent, to the higher of them.

Statutory Instruments Act

66.5 The Statutory Instruments Act does not apply in respect of a premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68. However, the premium rates must, as soon as possible, be published by the Commission in Part I of the Canada Gazette.

User Fees Act

66.6 For greater certainty, the User Fees Act does not apply in respect of the premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68.

Employee’s premium

67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66 or 66.3, as the case may be.

Employer’s premium

68. Subject to sections 69 and 70, an employer shall pay a premium equal to 1.4 times the employees' premiums that the employer is required to deduct under subsection 82(1).

Premium reduction — wage-loss plans

69. (1) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer's premium where

(a) the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care or compassionate care under a plan that covers insured persons employed by the employer, other than one established under provincial law, would have the effect of reducing the special benefits payable to the insured persons; and

(b) the insured persons will benefit from the reduction of the employer's premium in an amount at least equal to 5/12 of the reduction.

Provincial Plans

(2) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer's and employee's premiums when the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care or compassionate care under a provincial law to insured persons would have the effect of reducing or eliminating the special benefits payable to those insured persons.

Department of Human Resources and Skills Development Act

Organization and Operation of the Commission

Head office

27. (1) The head office of the Commission shall be in the National Capital Region as described in the schedule to the National Capital Act or at any other place in Canada that may be designated by order of the Governor in Council.

Residence of commissioners

(2) Each commissioner shall reside in the National Capital Region or at the place designated by the Governor in Council under subsection (1), or within reasonable commuting distance of that region or place.

Staff

28. (1) The officers and employees necessary for the proper conduct of the business of the Commission shall be employees of the Department.

Chief actuary

(1.1) The employee or officer who holds the position of chief actuary shall be under the direction of the Commission in the performance of the chief actuary's functions under section 65.3 of the Employment Insurance Act.

Agents

(2) The Commission may enter into contracts with agents in or for locations where the Commission considers it desirable to do so.

Delegation

(3) The Commission may authorize any person or body, or member of a class of persons or bodies, to exercise powers or perform duties and functions of or delegated to the Commission, and any such authorized person or body or class of persons or bodies may exercise specified powers or perform specified duties and functions.

Persons who have specialized knowledge

28.1 Despite section 28, the Commission may, as it considers necessary for the purpose of assisting it in setting the premium rate under section 66 of the Employment Insurance Act, contract for the services of persons who have specialized knowledge and may fix and pay the remuneration and expenses of those persons.

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Date Modified:

2011-09-30