Human Resources and Skills Development Canada
Symbol of the Government of Canada

Human Resources and Skills Development Canada

www.hrsdc.gc.ca

Section III: Supplementary Information

3.1 List of Supplementary Information Tables

3.2 Specified Purpose Accounts

Specified Purpose Accounts consist of special categories of revenues and expenditures. They report transactions of certain accounts where enabling legislation requires that revenues be earmarked and that related payments and expenditures be charged against such revenues. The transactions of these accounts are to be accounted for separately.

HRSDC is responsible for the stewardship of four such accounts:

  • the Employment Insurance Account;
  • the Canada Pension Plan;
  • the Government Annuities Account; and
  • the Civil Service Insurance Fund.

The Employment Insurance Account is a consolidated Specified Purpose Account and is included in the financial reporting of the Government of Canada. Consolidated Specified Purpose Accounts may be used principally where the activities are similar in nature to departmental activities and the transactions are not defined as financial obligations to the Department. Such accounts are budgetary and are consolidated with Government revenues, expenditures and accumulated deficit.

The Canadian Pension Plan is a Specified Purpose Account but is not consolidated as part of the Government of Canada financial statements. It is under joint control of the Government and participating provinces. As administrator, the Government's authority to spend is limited to the balance of the Plan.

The Government Annuities Account is a consolidated Specified Purpose Account and is included in the financial reporting of the Government of Canada. It was established by the Government Annuities Act, and modified by the Government Annuities Improvement Act, which discontinued sales of annuities in 1975. The account is valued on an actuarial basis each year, with the deficit or surplus charged or credited to the Consolidated Revenue Fund.

The Civil Service Insurance Fund is a consolidated Specified Purpose Account and is included in the financial reporting of the Government of Canada. It was established by the Civil Service Insurance Act. Pursuant to subsection 16(3) of the Civil Service Insurance Regulations, the amount of actuarial deficits is transferred from the Consolidated Revenue Fund to the Civil Service Insurance Account in order to balance the assets and liabilities of the program.

Employment Insurance Account Description

The Employment Insurance Account was established in the Accounts of Canada by the Employment Insurance Act to record all amounts received or paid out under that Act. The Employment Insurance Act provides short-term financial relief and other assistance to eligible workers. The program covers all workers in an employer-employee relationship. Self-employed fishers are also included under special regulation of the Employment Insurance Act.

Employment Insurance provides:

  • Income Benefits under Part I of the Employment Insurance Act provide temporary income support to claimants, including self-employed fishers, while they look for work. This includes work sharing agreements for temporary work shortages to allow employees to receive pro-rated Employment Insurance benefits while working for part of a week, thus avoiding layoffs. Employment Insurance also provides four types of special benefits: maternity benefits, payable to biological mothers for work missed as a result of pregnancy and childbirth; parental benefits, payable to both biological and adoptive parents for the purpose of caring for a new born or adopted child; sickness benefits, payable to claimants who are too ill to work; and compassionate care benefits, payable to claimants who provide care to a gravely ill or dying family member.
  • Employment Benefits under Part II of the Employment Insurance Act through a set of Employment Benefits and Support Measures that can be tailored to meet the needs of individuals and local circumstances. The Government of Canada has Labour Market Development Agreements with the governments of the provinces and territories. These enable provincial and territorial governments to assume direct responsibility for the design and delivery of these benefits or to take part in co-management arrangements with the federal government.

Employers and workers pay all costs associated with Employment Insurance through premiums. Benefits and administrative costs are paid out of the Consolidated Revenue Fund and charged to the Employment Insurance Account. A surplus in the Account generates notional interest at a rate established by the Minister of Finance, which is currently set at 90 percent of the monthly average of the three-month Treasury bill rate.

Financial Summary

The Employment Insurance premium rate for the calendar year 2009 was set on an expected break-even basis on November 14, 2008 by the Employment Insurance Commission in accordance with the Employment Insurance Act. Due to the decline in the economic outlook following the setting of the 2009 premium rate and the financial impact of the measures announced in Budget 2009 — the freezing of the premium rate at 1.73 percent in 2010, enhancements to Employment Insurance benefits and the expansion of funding for training programs — costs are expected to exceed revenues by $3.2B in 2009-2010.

In Budget 2008, the Government announced improvements to the management and governance of the Employment Insurance Account through the creation of an independent Crown corporation, the Canada Employment Insurance Financing Board. Beginning in 2011, the Board will be responsible for managing a separate bank account, maintaining a cash reserve as a contingency fund and implementing a new and transparent premium rate-setting mechanism that will take into account any surpluses or deficits that arise on a go-forward basis, to ensure that revenues and expenditures break even over time. The Board will be mandated not to recover any deficit resulting from the enhanced benefits and training announced in Budget 2009 to ensure the future increases in the premium rate are gradual enough to support a strong economic turnaround.

The following chart summarizes trends in total costs and revenues of the Employment Insurance Account from 2000-2001 to 2009-2010.

Figure1 : A link to the description follows the figure

Text version of the EI Account - Costs and Revenues Trend (Excluding Interest)

The table below summarizes the Employment Insurance premiums and expenditures from 2006-2007 financial results to 2009-2010.

EI ACCOUNT — PREMIUMS AND EXPENDITURES SUMMARY
(millions of dollars) Actual Forecast Planned Spending
2006-2007 2007-2008 2008-2009 2009-2010
Expenditures
EI Benefits
Income Benefits 11,993 12,197 13,473 16,292
EBSM 2,087 2,096 2,112 2,628
Total EI Benefits 14,079 14,293 15,585 18,920
Administrative Costs 1,636 1,689 1,683 1,597
Doubtful Accounts 99 81 79 86
Sub-Total 15,815 16,063 17,347 20,603
EI Premiums and Penalties
Premium RevenueReference a is located after the table 17,109 16,877 16,988 17,301
Penalties 56 58 63 76
Sub-Total 17,165 16,935 17,051 17,377
Variance 1,351 872 (296) (3,226)
  • Reference from the above table a The Employment Insurance premiums reported in the summary financial statements of the Government of Canada exclude the premium contributions made by the Government of Canada as an employer.
  • Note from the above table Note: Totals may not add due to rounding.

Benefit Payments

Benefits in 2009-2010 are expected to reach $18.9B, consisting of $16.3B for Income Benefits and $2.6B for Employment Benefits and Support Measures.

Income Benefits

Employment Insurance Income Benefits include regular, special, work-sharing and fishers' benefits. Footnote 1 Income benefits were extended in Budget 2009 to individuals participating in longer-term training, providing additional time and financial support to allow up to 10,000 long-tenured workers to gain the new skills needed to adapt to the changing economy. This measure is estimated to cost $250M in 2009-2010.

Regular Benefits

  • Entrance Requirements to Qualify for Benefits
    • Most claimants require 420 to 700 hours of work during their qualifying period, from full-time or part-time work, whether with one employer or several. The exact number of hours required, called the "variable entrance requirement", is determined by the rate of unemployment in a claimant's region at the time he or she applies for benefits. In general, the higher the rate of unemployment, the fewer hours of work required to qualify.
    • People who have just entered the labour market ("new entrants") and those returning to the labour force after an absence ("re-entrants") require 910 hours of work. However, if they worked at least 490 hours in the preceding 12 months, or received at least one week of maternity or parental benefits in the four years before that, they will be eligible under normal rules the following year.
  • Determining the Benefit Rate and Entitlement
    • Claimants for regular benefits may receive benefits for 14 to 45 weeks, depending upon their hours of insurable employment and the regional unemployment rate. In Budget 2009, the Government increased regular benefit entitlements by five additional weeks to a maximum of 50 weeks for the next two years. The estimated cost for this measure in 2009-2010 is $575M.
    • Claimants' weekly benefits are 55 percent of their average insurable earnings during the last 26 weeks, up to a maximum of $447, based on the maximum yearly insurable earnings of $42,300. The average insurable earnings are based on the actual weeks of work, subject to a minimum divisor that is tied to the regional rate of unemployment.
    • Claimants with a combined family income of less than $25,921 and who qualify for the Canada Child Tax Benefit receive a Family Supplement based upon:
      • the net family income;
      • the number of dependent children; and
      • the ages of those dependent children.
    • The benefit rate for claimants who receive a Family Supplement can be increased to a maximum of 80 percent of the claimant's average weekly insurable earnings, up to the maximum weekly benefit of $447.

Special Benefits

Claims for sickness, maternity, parental, or compassionate care benefits require 600 hours of work, and are not affected by the new entrant/re-entrant rule. All claimants may receive sickness benefits for up to 15 weeks. Parental benefits of 35 weeks are available for biological and adoptive parents in addition to the 15 weeks of maternity benefits available to biological mothers. Compassionate care benefits of up to 6 weeks are available to eligible workers who take a temporary absence from work to provide care for a gravely ill family member who has a significant risk of death within a 26 week period.

On March 1, 2005 the Government of Canada and the Government of Quebec signed the final agreement on Quebec Parental Insurance Plan. As of January 2006, Quebec residents claim maternity and parental benefits from the Quebec provincial government.

Work Sharing

Claimants may receive benefits while on work-sharing agreements. These agreements between HRSDC, employees and employers avoid temporary layoffs by combining partial Employment Insurance benefits with reduced workweeks. They normally last from 6 to 26 weeks, with a possible extension of 12 weeks for a maximum of 38 weeks. In Budget 2009, the Government extended work-sharing programs for the next two years by 14 weeks to a maximum of 52 weeks. Along with increased access to work-sharing agreements through greater flexibility in the qualifying criteria and streamlining processes for employers, the estimated cost for this measure is $100 million in 2009-2010.

Fishers' Benefits

The benefit rate for claims for fishers' benefits depends on the earnings from fishing and the regional rate of unemployment, via the minimum divisor. All fisher claims have a 31-week maximum qualifying period and a fixed entitlement of 26 weeks of benefits. These can be claimed from October 1 to June 15 for summer fishers' benefits and April 1to December 15 for winter fishers' benefits. Fishers can file claims for both seasons.

Benefit Repayments

When the net annual income of Employment Insurance claimants exceeds 1.25 times the maximum yearly insurable earnings ("the repayment threshold"), they have to repay the lesser of 30 percent ("the repayment rate") of the net excess income or 30 percent of the amount of total benefits other than special benefits paid. In addition, first-time claimants of regular or fishing benefits are exempt from benefit repayment.

EI INCOME BENEFITS - EXPENDITURES
(millions of dollars) Actual Forecast Planned Spending
2006-2007 2007-2008 2008-2009 2009-2010
Income Benefits
Regular 8,446 8,381 9,441 12,021
Sickness 885 928 983 1,023
Maternity 778 836 877 912
Parental 1,763 1,914 2,040 2,122
Compassionate Care 9 9 10 10
Fishing 260 265 268 274
Work Sharing 8 15 32 132
Benefit Repayments (157) (150) (178) (202)
Total Income Benefits 11,993 12,197 13,473 16,292
  • Note from the above table Note: Totals may not add due to rounding.
FACTORS AFFECTING INCOME BENEFITS
Actual Forecast Planned Spending % Change
2006-2007 2007-2008 2008-2009 2009-2010
Income Benefits ($ million) 11,993 12,197 13,473 16,292 20.9%
Average Monthly Beneficiaries (000's) 738 728 777 913 17.5%
Benefit Rate ($/week) 312 322 334 343 2.6%

Employment Benefits and Support Measures

The Employment Benefits include Skills Development, Job Creation Partnerships, Self Employment and Targeted Wage Subsidies.

The Support Measures include Employment Assistance Services, Labour Market Partnerships and Research and Innovation.

Part II of the Employment Insurance Act also authorizes the federal government to make payments to the governments of the provinces and territories for implementing programs similar to Employment Benefits and Support Measures. An additional $500M of funding was made available in budget 2009 to expand the availability of training delivered by the provinces and territories. This funding will be allocated based on the share of unemployed persons in a province or territory. The planned federal contribution to provinces and territories under Labour Market Development Agreements is $2,333M for 2009-2010.

EMPLOYMENT BENEFITS AND SUPPORT MEASURES
(millions of dollars) Actual Forecast Planned SpendingReference a is located after the table
2006-2007 2007-2008 2008-2009 2009-2010
Job Creation Partnerships 49 27 26
Skills Development 398 263 250
Self-employment 88 41 38
Targeted Wage Subsidies 36 23 22
Employment Assistance 287 152 144
Labour Market Partnerships 158 158 150
Research & Innovation 15 15 14
Total HRSDC Programs 1,031 679 644 295
Transfers to Provinces and Territories 1,056 1,417 1,468 2,333
Total 2,087 2,096 2,112 2,628
  • Reference from the above table aBreakdown by component is not available, as spending will be guided by local labour market needs. Breakdown by provinces/territories is provided in the EI Part II - 2009-2010 Expenditure Plan.
  • Note from the above table Note: Totals may not add due to rounding.

Premiums

Premiums are collected from insured employees and their employers to cover the program costs over a business cycle, based on a yearly premium rate and employees' insurable earnings. The factors affecting the premiums are further explained below.

Premium Rate:

Under the current rate-setting process, the Chief Actuary is required to annually calculate, on a forward-looking basis, the estimated break-even rate for the coming year based on the most current forecast values of the relevant economic variables provided by the Minister of Finance. The forward-looking basis means that past surpluses, deficits, and the notional interest credited to the Employment Insurance Account do not enter into the calculation of the "break-even" premium rate.

For 2009, the Commission set the employee rate at 1.73 percent of insurable earnings, unchanged from the 2008 rate. The corresponding employer rate remains at 2.42 percent. In Budget 2009, the Government set the premium rate for 2010 at the 2009 level of 1.73 percent to provide a competitive advantage to employees and employers.

Figure2: A link to the description follows the figure

Text version of the Employee premium rate trend (% of insurable earnings)

Maximum Yearly Insurable Earnings (MYIE):

Premiums are paid on all employment earnings of insured employees up to the MYIE. The Chief Actuary has calculated the MYIE for 2009 as being $42,300, up $1,200 from the 2008 level.

Premium Reduction:

Employers with qualified wage-loss insurance plans are entitled to premium reductions. They are required to share this reduction with their employees.

Additionally, due to the Quebec Parental Insurance Plan, the premium rate for employees in Quebec will be reduced to 1.38 percent in 2009 and the corresponding rate for employers to 1.93 percent.

Premium Refund:

Workers with annual earnings of $2,000 or less can receive a refund of their Employment Insurance premiums through the income tax system.

Employment Insurance premiums are refunded to employees when their insurable earnings are in excess of the maximum yearly insurable earnings.

Interest Earned

Section 76 of the Employment Insurance Act stipulates that the Minister of Finance may authorize the payment of interest on the balance in the Employment Insurance Account in accordance with such terms and conditions and at such rates as the Minister of Finance may establish, and the interest, which is currently set at 90 percent of the three-month Treasury bill rate, shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund. Interest is calculated monthly, based on the 30-day average of the daily balance in the Account.

Interest is charged on overdue accounts receivable, caused through misrepresentation, in accordance with Treasury Board regulations. The interest rate used in this calculation is the average Bank of Canada discount rate for the previous month plus 3.0 percent.

INTEREST EARNED
(millions of dollars) Actual Forecast Planned Spending
2006-2007 2007-2008 2008-2009 2009-2010
Sources
Account Balance 1,912 1,926 1,105 431
Account Receivable 39 34 28 22
Total 1,952 1,961 1,133 453
  • Note from the above table Note: Totals may not add due to rounding.

Administrative Costs

Section 77 of the Employment Insurance Act specifies that the costs of administering the Act are to be charged to the Employment Insurance Account.

The Minister of Human Resources and Skills Development is responsible for reporting on the Employment Insurance Program to Parliament. However, the Canada Revenue Agency, which collects premiums and benefit repayments and provides decisions on insurability under the Act, shares the administration of the Program. Treasury Board Secretariat and the Department of Justice all supply services that support management and delivery of programs under the Employment Insurance Act.

The administrative costs that provincial and territorial governments incur to administer Employment Benefits and Support Measures under the Labour Market Development Agreements are also charged to the Employment Insurance Account.

ADMINISTRATIVE COSTS
(millions of dollars) Actual Forecast Planned Spending
2006-2007 2007-2008 2008-2009 2009-2010
Federal 1,536 1,549 1,531 1,419
Provincial 111 150 164 190
Recovery (11) (10) (12) (12)
Total 1,636 1,689 1,683 1,683
  • Note from the above table Note: Totals may not add due to rounding.

The $1,647M Employment Insurance administrative costs are the initial approved resources for 2009-2010.

Canada Pension Plan

The Canada Pension Plan is a contributory, earnings-related social insurance program. It is a joint federal-provincial plan that operates throughout Canada, except in Quebec, which has its own comparable plan. The Canada Pension Plan provides for a variety of benefits based on life changes. In addition to retirement pensions, the Canada Pension Plan also provides for survivors pensions, children's benefits, disability pensions, disabled child contributors' benefits, as well as a one-time death benefit that cannot exceed $2,500.

As a contributory plan, contributors are employees or self-employed people generally between the ages of 18 and 70, who earn at least a minimum amount ($3,500) during a calendar year. Benefits are calculated based on how much and for how long a contributor has paid into the Canada Pension Plan. Benefits are not paid automatically — everyone must apply and provide proof of eligibility.

Approximately 12 million Canadians over the age of 18 currently contribute annually to the Plan and approximately 4.3 million Canadians will receive benefits during 2009-2010.

Canada Pension Plan Summary
($) Millions Actual Forecast Planned Spending
2006-2007 2007-2008 2008-2009 2009-2010
Revenue
ContributionsReference a is located after the table 32,355 35,346 34,023 35,313
Investment Income
Canada Pension PlanReference b is located after the table 9 11 7 8
CPP Investment BoardReference c is located after the table 12,788 (268) - -
CPP Investment FundReference d is located after the table 247 - - -
Total Investment Income 13,044 (257) 7 8
Total Revenue 45,399 35,089 34,030 35,321
Expenditures
Benefit payments 26,115 27,537 28,993 30,743
Administrative expenses 574 599 627 614
Total Expenditures 26,689 28,136 29,620 31,357
Increase 18,710 6,953 4,410 3,964
Year-end balances 119,831 126,784 131,194 135,158
  • (a) Source of Contributions Forecast 2008 through 2012 is from the 23rd Actuarial Report from the Office of the Superintendent of Financial Institutions Canada (Table 11).
  • (b) The Canada Pension Plan investment income only includes the interest earned on the daily operating balance.
  • (c) Canada Pension Plan Investment Board actual amounts are based on their audited financial statements. The Canada Pension Plan Investment Board invests mainly in equities. The investment income is made up of the interest from the bonds as well as the change in fair values of other varied equity investments as of that date. It is difficult to forecast a future fair value on this type of income. Therefore the forecast investment income for the years 2008-2009 forward are is not provided.
  • (d) The Canada Pension Plan Investment Fund is made up of provincial, territorial and government bonds. Since March 31, 2004, these are valued at fair value. The revenue of the Fund is made up of the interest from the bonds as well as the change in fair values of these investments. As at April 1, 2007, the Investment Fund ceased to exist as all the rights and titles of the bonds were transferred to the Canada Pension Plan Investment Board.

Government Annuities Account

This account was established by the Government Annuities Act, and modified by the Government Annuities Improvement Act, which discontinued sales of annuities in 1975. The account is valued on an actuarial basis each year, with the deficit charged or surplus credited to the Consolidated Revenue Fund.

The purpose of the Government Annuities Act was to assist Canadians to provide for their later years, by the purchase of Government annuities. The Government Annuities Improvement Act increased the rate of return and flexibility of Government annuity contracts.

Income consists of premiums received, funds reclaimed from the Consolidated Revenue Fund for previously untraceable annuitants, earned interest and any transfer needed to cover the actuarial deficit. Payments and other charges represent matured annuities, the commuted value of death benefits, premium refunds and withdrawals, and actuarial surpluses and unclaimed items transferred to non-tax revenues. The amounts of unclaimed annuities, related to untraceable annuitants, are transferred to non-tax revenues.

As of March 31, 2008, there were 1,649 outstanding deferred annuities, the last of which will come into payment around 2030.

Government Annuities Account - Statement of Operations and Actuarial Liabilities
(millions of dollars) Actual Forecast Planned Spending
2006-
2007		 2007-
2008		 2008-
2009		 2009-
2010
Actuarial Liabilities
Balance at beginning of year 347.2 319.4 292.9 270.2
Income 23.4 21.1 20.5 18.9
Payments and other charges 48.3 45.0 41.8 39.1
Excess of Payments and other charges
over income for the year 24.9 23.9 21.3 20.2
Actuarial Surplus 2.9 2.6 1.4 1.3
Actuarial Liabilities
Balance at year-end 319.4 292.9 270.2 248.7

Civil Service Insurance Fund

This account was established by the Civil Service Insurance Act, under which the Minister of Finance could contract with permanent employees in the public service for the payment of certain death benefits. No new contracts have been entered into since 1954 when the Supplementary Death Benefit Plan for the Public Service and Canadian Forces was introduced as part of the Public Service Superannuation Act and the Canadian Forces Superannuation Act, respectively. As of April 1997, the Department of Human Resources Development assumed the responsibility for the administration and the actuarial valuation of the Civil Service Insurance Act.

The number of policies in force as of March 31, 2008 was 1,254 and the average age of the policy holders was 88.4 years. Receipts and other credits consist of premiums and an amount (charged to expenditures) which is transferred from the Consolidated Revenue Fund in order to balance the assets and actuarial liabilities of the program. Payments and other charges consist of death benefits, settlement annuities paid to beneficiaries and premium refunds.

Pursuant to subsection 16(3) of the Civil Service Insurance Regulations, any deficit will be credited to the Account from the Consolidated Revenue Fund.

Civil Service Insurance Fund - Statement of Operations and Balance
(millions of dollars) Actual Forecast Planned Spending
2006-2007 2007-2008 2008-2009 2009-2010
Opening Balance 6.3 6.0 5.9 5.7
Income and other credits 0.0 0.1 0.1 0.1
Payments and other charges 0.3 0.2 0.3 0.3
Excess of payments and other charges over income for the year 0.3 0.1 0.2 0.2
Closing Balance 6.0 5.9 5.7 5.5

3.3 Employment Insurance Part II

Background

Part II of the Employment Insurance Act commits the federal government to work in concert with provinces and territories in designing and implementing active employment programs to help unemployed Canadians integrate into the labour market. These programs include Employment Benefits and Support Measures and similar active employment programs.

In accordance with the Government of Canada's 1996 offer to provinces and territories to enter into bilateral partnerships on labour market activities, Labour Market Development Agreements, consisting of transfer agreements as well as co-management agreements, were concluded with all the provinces and territories. In Budget 2007, the Government committed to offer to transfer responsibility for the design and delivery of active employment programs that are similar to the Employment Benefits and Support Measures to the four provinces and one territory, where co-managed agreements previously existed (Newfoundland and Labrador, Prince Edward Island, Nova Scotia, British Columbia and the Yukon).

  • Full transfer agreements have now been signed with all provinces and territories except Yukon, with full implementation by October, 2009.
  • A co-management agreement remains in Yukon, wherein Human Resources and Skills Development Canada and the territory jointly assume responsibility for the planning and design of the Employment Benefits and Support Measures, while HRSDC continues to deliver programs and services through its service delivery network.

Specific areas of responsibilities for program delivery, timelines for implementation and funding requirements for system development costs and office re-fits are to be negotiated on an individual basis.

In addition to locally and regionally delivered Employment Benefits and Support Measures and similar programs, HRSDC continues to deliver Pan Canadian activities that are national or multi-regional in scope or purpose. These activities include programming similar to Employment Benefits and Support Measures delivered by Aboriginal organizations under Aboriginal Human Resources Development Agreements.

Employment Benefits and Support Measures

The five employment benefits are:

  • Targeted Wage Subsidies to encourage employers to hire individuals who they would not normally hire in the absence of a subsidy.
  • Self-Employment to help individuals to create jobs for themselves by starting a business.
  • Job Creation Partnerships to provide individuals with opportunities through which they can gain work experience which leads to on-going employment.
  • Skills Development to help individuals to obtain skills for employment, ranging from basic to advanced skills. Assistance is provided directly to individuals, and, where applicable, contributions are provided to provinces/territories or provincially/territorially funded training institutions to cover costs not included in tuition fees.
  • Targeted Earnings Supplements to encourage individuals to accept employment by offering them financial incentives.

It should be noted that of the employment benefits listed above, Targeted Earnings Supplements have not been implemented nationally. However, Quebec and Ontario have implemented similar programs. Pilot projects were conducted to evaluate the effectiveness of Targeted Earnings Supplements to date; this has not resulted in a feasible design for national implementation.

Eligibility to receive assistance under the current employment benefits extends to persons who are insured participants as defined in Section 58 of the Employment Insurance Act - active Employment Insurance claimants and former Employment Insurance claimants (individuals who have had Employment Insurance claims that ended in the past three years or those who have received maternity or parental benefits in the past five years after which they left the labour market to care for newborn or new adopted children).

Part II of the legislation also authorizes the establishment of support measures in support of the National Employment Service. The three measures are:

  • Employment Assistance Services to assist organizations in the provision of employment services to unemployed persons.
  • Labour Market Partnerships to encourage and support employers, employee and/or employer associations and communities in developing and implementing strategies for dealing with labour force adjustments and meeting human resources requirements.
  • Research and Innovation to support activities which identify better ways of helping persons prepare for or keep employment and be productive participants in the labour force.

Financial Data

For 2009-2010, the pre-Budget 2009 Employment Insurance Part II expenditure authority of $2,165.03M represents 0.5% of total estimated insurable earnings of $472,412M. However, as a result of the increase in Part II funding of $500M announced in Budget 2009, the total 2009-2010 expenditure authority will increase to $2,665.03M. This will represent 0.6 percent of the total insurable earnings for 2009-2010. This represents a lower level of expenditures than the 0.8 percent ceiling imposed under the Act, which is estimated at $3.779B in 2009-2010.

Some of the savings from Part I income benefits generated by the Employment Insurance reform are included in these funds to provide job opportunities and help Canadians get back to work more quickly. The amount of re investment reached maturity at $800M in 2000-2001.

Expected Results

An accountability framework has been developed that respects the legal responsibility of the Minister of Human Resources and Skills Development for the Employment Insurance Account. Key indicators will measure both the short and long term outcomes of Employment Benefits and Support Measures.

The following table includes 2009-2010 expected results for the three indicators required to be reported as per the Labour Market Development Agreements. These estimates may change, depending on labour market conditions and agreements achieved with provinces and territories.

EBSM (EI Part II Activities)Reference 1 is located after the table
Clients/Employed/Self-Employed Unpaid Benefits Active Claimants ServedReference 2 is located after the table
Targeted Results 2007-2008Reference 3 is located after the table 208,282 $840.6M 371,737
Actual ResultsReference 4 is located after the table 2007-2008Reference 5 is located after the table 205,817 $888.2M 332,045
Targeted Results 2008-20093 197,335 $846.6M 353,623
Expected Results 2009-2010 211,668 $845.2M 348,647
Expected Results for new Budget 2009 EI Part II funding * * 100,000
  • Note 1 from the above table Includes Aboriginal Pan-Canadian clients.
  • Note 2 from the above table "Active Claimants Served" includes Active Employment Insurance claimants for all regions/provinces/territories, as well as Former EI claimants for Quebec. The Quebec agreement stipulates that the province report on both Active and Former EI claimants.
  • Note 3 from the above table Targeted results are submitted by the regions, provinces and territories. Added to these targets are Aboriginal Pan-Canadian targets which are based on the previous year's actual result.
  • Note 4 from the above table Represents one count per client, to avoid the double counting of clients who participated in both Regular and Aboriginal Pan-Canadian EBSM.
  • Note 5 from the above table In December 2007, the Province of Alberta implemented a new integrated management information system. Due to the implementation of the new system, national employment program results include Alberta LMDA data for the period of April 2007 to November 2007 only.
  • Reference * from the above table Budget 2009 included a $500M increase for LMDA funding in 2009-2010. Due to the economic downturn and likelihood that provinces/territories will invest in longer-term training, the incremental results for employed/self-employed and unpaid benefits cannot be estimated.

Formative evaluations were completed during the initial implementation of Labour Market Development Agreement programming - between the years 1999 to 2002. They were focused on program design, delivery, implementation issues, client satisfaction and short term success.

More detailed information on the formative evaluations is available at: http://www.hrsdc.gc.ca/eng/publications_resources/evaluation/index.shtml

Summative evaluations of Employment Benefits and Support Measures are aimed at providing information on their impact in helping participants prepare for, find and keep jobs. In addition to employment impacts, these evaluations examine a range of outcomes related to Employment Benefits and Support Measures participation including skills gains, job quality and increased self-sufficiency in relation to government income support assistance.

Evaluation results to-date (both from formative and summative studies) underscore the importance of the local socio-economic context and client characteristics on programming and program outcomes. Variances in local socio-economic situations appear to affect Employment Benefits and Support Measures implementation and effectiveness - suggesting the importance of tailoring programs to local needs to improve the outcomes of interventions.

2009-2010 EMPLOYMENT INSURANCE PLAN
(millions of dollars) Base Reference a is located after the table Re-Investment Reference a is located after the table Total Plan Reference a is located after the table
Newfoundland and Labrador 60.3 73.1 133.4
Nova Scotia 50.9 30.3 81.3
New Brunswick 50.2 42.1 92.3
Prince Edward Island 17.1 10.0 27.2
Quebec 350.3 248.1 598.4
Ontario 354.1 184.1 538.2
Manitoba 35.6 10.2 45.8
Saskatchewan 28.6 9.9 38.5
Alberta 68.7 35.9 104.7
Northwest Territories 1.7 1.6 3.3
Nunavut 1.9 1.0 2.8
British Columbia 128.9 151.7 280.6
Yukon 1.6 2.0 3.7
1,150.0 800.0 1,950.0
Pan-Canadian Responsibilities b 177.8 0.0 177.8
Employment Insurance Training and Support Programs c 500.0 0.0 500.0
Total Pan-Canadian 677.8 0.0 677.8
Funds available for Employment Benefits and Support Measures 1,827.8 800.0 2,627.8
  • Reference a from the above table Totals may not add due to rounding.
  • Reference b from the above table Funds earmarked for Pan-Canadian priorities, such as Aboriginal programming, sectoral and innovations projects.
  • Reference c from the above table Additional funding announced in Budget 2009

3.4 Consolidated Report on Canada Student Loans

In August 2000, the Canada Student Loans Program (CSLP) was shifted from the risk-shared financing arrangements that had been in place with financial institutions between 1995 and July 2000 to a direct student loan financing plan. Footnote 2

This meant that the Program had to redesign the delivery mechanism in order to directly finance student loans. In the new arrangement, the Government of Canada provides the necessary funding to students and two service providers have contracts to administer the loans.

Reporting Entity

The entity detailed in this report is the Canada Student Loans Program only and does not include departmental operations related to the delivery of the Canada Student Loan Program. Expenditures figures are primarily statutory in nature, made under the authority of the Canada Student Loans Act and the Canada Student Financial Assistance Act.

Basis of Accounting

The financial figures are prepared in accordance with generally accepted accounting principles and as reflected in the Public Sector Accounting Handbook of the Canadian Institute of Chartered Accountants.

Specific Accounting Policies

Revenues

Two sources of revenue are reported: interest revenue on Direct Loans and recoveries on Guaranteed and Put Back Loans. Government accounting practices require that recoveries from both sources be credited to the Government's Consolidated Revenue Fund. They do not appear along with the expenditures in the Canada Student Loan Program accounts, but are reported separately in the financial statements of Human Resources and Skills Development Canada (HRSDC) and the government.

  • Interest Revenue on Direct Loans - Borrowers are required to pay simple interest on their student loans once they leave full-time studies. At the time they leave school, students have the option of selecting a variable (prime + 2.5 percent) or fixed (prime + 5 percent) interest rate. The figures represent the interest accrued on the outstanding balance of the government-owned Direct Loans. Borrowers continue to pay the interest accruing on the guaranteed and risk-shared loans directly to the private lender holding these loans. The weekly loan limit is set at $210 per week of study.
  • Recoveries on Guaranteed Loans - The government reimburses the private lenders for any loans issued prior to August 1, 1995 that go into default (i.e., lenders claim any amount of principal and interest not repaid in full). The figures represent the recovery of principal and interest on these defaulted loans.
  • Recoveries on Put-back Loans - Under the risk-shared agreements, the government will purchase from the participating financial institutions any loans issued between August 1, 1995 to July 31, 2000 that are in default of payments for at least 12 months after the period of study, that in aggregate, do not exceed 3 percent of the average monthly balance of the lender's outstanding student loans in repayments. The amount paid is set at 5 percent of the value of the loans in question. The figures represent the recovery of principal and interest on these loans.

Canada Student Grants and Programs

Beginning in August 1, 2009 Canada Study Grants and Canada Access Grants will be replaced by the new consolidated Canada Student Grant Program (CSGP). The new Canada Student Grant Program will provide up-front grants to students from low and middle income families. The new Canada Student Grant Program will be simple, transparent, predictable and broad-based, providing certainty and predictability for Canadian families.

Implementation of the new Canada Student Grant Program will coincide with the wind-down of the Canadian Millennium Scholarship Foundation in 2009 and will consolidate the patchwork of federal student grants into a comprehensive program.

The new Canada Student Grant Program will provide students from low and middle-income families with a grant equal to $250 and $100 per month, respectively. Students with permanent disabilities will be eligible for a grant of $2,000 per year and up to $8,000 per year for those with special education needs. Students with children will be eligible for a grant of $200 per month for each child under the age of 12. Students receiving the Canada Millennium Scholarship general bursaries in 2008-2009 will receive transitional grants until they complete or withdraw from their current program of study. Current Canada Millennium Scholarship Fund general bursary recipients who are eligible for the new federal grant will have the difference between the amount of the Canada Millennium Scholarship Fund general bursary and the amount of the new grant made up with a transition grant.

Collection Costs

These amounts represent the cost of using private collection agencies to collect defaulted Canada Student Loans. The loans being collected include: risk-shared and guaranteed loans that have gone into default and for which the government has bought back from the private lender; and Direct Loans issued after July 31, 2000, that are returned to HRSDC by the third party service provider as having defaulted. As of August 1, 2005, the Canada Revenue Agency Non Tax Collections Directorate undertook the responsibility for the administration of the collection activities of the guaranteed, risk-shared and direct student loans.

Program Delivery Costs

Canada Student Loans Program uses third party service providers to administer borrower authentication, loan origination, in-study loan management, post-studies repayment activities and debt management. This item represents the cost associated with these contracted services.

Risk Premium

Risk premium represents part of the remuneration offered to lending institutions participating in the risk-shared program from August 1, 1995 to July 31, 2000. The risk premium represents 5 percent of the value of loans being consolidated which is calculated and paid at the time students leave studies and go into repayment. In return, the lenders assume the risk associated with non-repayment of these loans.

Put-Back

Subject to the provisions of the contracts with lending institutions, the government will purchase from a lender the student loans that are in default of payment for at least 12 months and that, in aggregate, do not exceed 3 percent of the average monthly balance of the lender's outstanding student loans in repayments. The amount paid is set at 5 percent of the value of the loans in question. The figures also include any refund made to participating financial institutions on the recoveries.

Administrative Fees to Provinces and Territories

Pursuant to the Canada Student Financial Assistance Act (CSFA Act), the government has entered into arrangements with nine provinces and one territory to facilitate the administration of the Canada Student Loans Program. They administer the application and needs assessment activities associated with federal student financial assistance and in return they are paid an administrative fee.

In-Study Interest Borrowing Expense

The capital needed to issue the Direct Loans is raised through the Department of Finance's general financing activities. The cost of borrowing this capital is recorded in the Department of Finance's overall financing operations. The figures represent the cost attributed to the Canada Student Loans Program in support of Direct Loans while students are considered in study status.

In-Repayment Interest Borrowing Expense

The capital needed to issue the Direct Loans is raised through the Department of Finance's general financing activities. The cost of borrowing this capital is recorded in the Department of Finance's overall financing operations. The figures represent the cost attributed to the Canada Student Loans Program in support of Direct Loans while students are in repayment of their Canada Student Loans.

In-Study Interest Subsidy

A central feature of federal student assistance is that student borrowers are not required to pay the interest on their student loans as long as they are in full-time study and, in the case of loans negotiated prior to August 1, 1993, for six months after the completion of studies. Under the guaranteed and risk-shared programs, the government pays the interest to the lending institutions on behalf of the student. Full time student Reservists who interrupt their studies for a deployment on designated operations will not be charged interest or have to start paying back their student loan while away from studies. Under the guaranteed and risk-shared programs, the government pays the interest to the lending institutions on behalf of the student.

Repayment Assistance Programs

  • Repayment Assistance Plan - provides comprehensive repayment support to qualified borrowers by assessing the borrower's ability to pay based on their income, family size, and debt load. The Repayment Assistance Plan (RAP) is comprised of two stages which provide both temporary and long term help as needed. The first stage provides for assistance with interest payments and allows for the deferral of principal; the second stage provides for the gradual write-down of the loan by supplementing both the principal and interest portions of the borrower's monthly payment as required. Borrowers with all types of federal loans are eligible to apply. The Repayment Assistance Plan will be available in Fall 2009 and will replace both Interest Relief and Debt Reduction in Repayment.
  • Repayment Assistance Plan for borrowers with a Permanent Disability - provides repayment support specifically targeted to borrowers with permanent disabilities similar to the Repayment Assistance Plan. Qualifying borrowers with permanent disabilities proceed immediately to the second stage gradual write-down of the loan. The Repayment Assistance Plan for borrowers with a permanent disability will be available in Fall 2009.
  • Interest Relief - assistance may be provided to cover loan interest and suspend payments on the principal of loans in repayment for up to 54 months for borrowers experiencing temporary difficulties repaying their loans. The shift from Guaranteed and Risk-Shared Loans to Direct Loans did not alter interest relief for loans in distress from the borrower's perspective; however, the method of recording associated costs changed. For loans issued prior to August 1, 2000, Canada Student Loans Program compensates lending institutions for lost interest equal to the accrued interest amount on loans under Interest Relief (IR). For loans issued after August 1, 2000, an interest relief expense is recorded to offset the accrued interest on direct loans.
  • Debt Reduction in Repayment - assists borrowers experiencing long-term difficulties repaying their loans. The Debt Reduction in Repayment is a federal repayment assistance program through which the Government of Canada reduces a qualifying borrower's outstanding Canada Student Loans principal to an affordable amount after Interest Relief has been exhausted and only after 5 years have passed since the borrower ceased to be a student. The maximum amount of Debt Reduction in Repayment assistance is $26,000, which is available to eligible borrowers in an initial deduction of up to $10,000, a second deduction of up to $10,000 and a final deduction of up to $6,000. For loans issued prior to August 1, 2000, the Canada Student Loans Program pays the lending institutions the amount of student debt principal reduced by the Government of Canada under Debt Reduction in Repayment. For loans issued after August 1, 2000, the Government of Canada forgives a portion of the loan principal.

Claims Paid and Loans Forgiven

From the beginning of the program in 1964 until July 31, 1995, the government fully guaranteed all loans issued to students by private lenders. The government reimburses private lenders for any of these loans that go into default (i.e., subject to specific criteria, lenders may claim any amount of principal and interest not repaid in full, after which the Canada Revenue Agency's (CRA) Collection Services will attempt to recover these amounts). Footnote 3 The risk-shared arrangements also permitted loans issued from August 1, 1995 to July 31, 2000 to be guaranteed under specific circumstances. This item represents the costs associated with loan guarantees.

Pursuant to the Canada Student Loans Act and the Canada Student Financial Assistance Act, the Government incurs the full amount of the unpaid principal plus accrued interest in the event of the death of the borrower or, if the borrower becomes permanently disabled and cannot repay the loan without undue hardship.

Bad Debt Expense

Under Direct Loans, the government owns the loans issued to students and must record them as assets. As a result, generally accepted accounting principles require a provision be made for potential future losses associated with these loans. The provision must be made in the year the loans are issued, even though the losses may occur many years later. The figures represent the annual adjustment to the provisions for Bad Debt and Debt Reduction in Repayment on Direct Loans. In future years, the figure will be adjusted to take into consideration the Repayment Assistance Plan available in fall 2009.

Alternative Payments to Non-participating Provinces and Territories

Provinces and territories may choose not to participate in the Canada Student Loans Program. These provinces and territories receive an alternative payment to assist in the cost of delivering a similar student financial assistance program.

Commitments

Starting March 17, 2008, the Canada Student Loan Program entered into a new agreement with one single Service Provider. For the 2009-2010 fiscal year, the expected cash flow for Service Provider contracts is: $79.8M.

Consolidated Canada Student Loans Programs - Combined Programs
(millions of dollars) Actual Forecast Planned Spendinge
2006-
2007		 2007-
2008		 2008-2009 2009-
2010		 2010-
2011		 2011-
2012
Revenue
Interest Revenue on Direct Loans 453.3 552.4 525.7 532.1 583.5 636.4
Recoveries on guaranteed Loans a 55.3 46.6 34.7 24.7 19.2 18.4
Recoveries On Put-Back Loans a 14.5 13.5 10.5 7.4 5.6 5.2
Total Revenue 523.1 612.5 570.9 564.2 608.3 660.0
Expenses
Transfer Payments
Canada Student Grants Programs 146.4 161.5 161.3 511.5 559.3 574.9
Total Transfer Payments Expenses 146.4 161.5 161.3 511.5 559.3 574.9
Loan Administration
Collection Costs a 12.4 14.4 12.2 3.7 0.0 0.0
Program Delivery Costs 65.6 70.8 81.3 60.9 57.8 56.1
Risk Premium 1.8 1.3 1.2 1.0 0.4 0.2
Put-Back 4.7 3.8 4.0 3.3 2.5 2.0
Administrative Fees to Provinces and Territories and SIF 14.7 13.7 14.9 20.1 22.3 22.3
Total Loan Administration Expenses 99.2 104.0 113.6 89.0 83.0 80.6
Cost of Government Support
Benefits Provided to Students
In-Study Interest Borrowing Expense (Class A) b 185.7 188.6 170.4 184.7 198.2 208.0
In Repayment Interest Borrowing Expense (Class B)b 145.0 166.2 159.4 210.4 238.2 260.9
In-Study Interest Subsidy (Class A) 11.5 8.0 4.9 3.5 1.5 0.6
Repayment Assistance Programs 104.3 107.5 106.2 128.9 124.7 121.3
Claims Paid & Loans Forgiven 24.2 17.0 22.8 11.8 10.0 9.4
Bad Debt Expense c
Debt Reduction in Repayment Expense 9.6 12.4 14.1 12.8 12.8 13.0
Bad Debt Expense 260.4 305.7 343.8 326.6 338.2 354.7
Total Cost of Government Support Expenses 740.7 805.4 821.6 878.7 923.6 967.9
Total Expenses 986.3 1,070.9 1,096.5 1,479.2 1,565.9 1,623.4
Net Operating Results 463.2 458.4 525.6 915.0 957.6 963.4
Alternative Payments to Non-Participating Province and Territories d 91.3 113.9 88.3 90.5 85.0 76.0
Final Operating Results 554.5 572.3 613.9 1,005.5 1,042.6 1,039.4
  • Reference a from the above table These costs are related to Canada Student Loans Program but are now reported by Canada Revenue Agency.
  • Reference b from the above table These costs are related to Canada Student Direct Loans but reported by the Department of Finance.
  • Reference c from the above table This represents the annual expense adjustment to the Provisions for Bad Debt and Debt Reduction in Repayment as required under Accrual Accounting. They will be included in future reports following consultation with the Office of the Chief Actuary.
  • Reference d from the above table The figures represent the annual expense recorded under the Accrual Accounting as opposed to the actual amount disbursed to the Non-Participating Province and Territories. The actual cash expense for Alternative Payments to Non-Participating Provinces and Territories. The actual cash expense for Alternative Payments to Non-Participating Provinces and Territories for 2007-2008 was $115.8M.
  • Reference e from the above table 2008-2009 and ongoing planned spending years include Canada Student Loans Program related amounts stemming from the Budget 2008 announcement (except for the alternative payments).
Consolidated Canada Student Loans Programs - Direct Loans Only
(millions of dollars) Actual Forecast Planned SpendingReference e is located after the table
2006-
2007		 2007-
2008		 2008-2009 2009-
2010		 2010-
2011		 2011-
2012
Revenue
Interest Revenue on Direct Loans 453.3 552.4 525.7 532.1 583.5 636.4
Expenses
Transfer Payment
Canada Student Grants Program 146.4 161.5 161.3 511.5 559.3 574.9
Total Transfer Payments Expenses 146.4 161.5 161.3 511.5 559.3 574.9
Loan Administration
Collection Costs a 7.1 9.5 8.8 2.8 0.0 0.0
Program Delivery Costs 65.6 70.8 81.3 60.9 57.8 56.1
Administrative Fees to Provinces and Territories and SIF 14.7 13.7 14.9 20.1 22.3 22.3
Total Loan Administration Expenses 87.4 94.0 105.0 83.8 80.1 78.4
Cost of Government Support
Benefits Provided to Students
In-Study Interest Borrowing Expense (Class A) b 185.7 188.6 170.4 184.7 198.2 208.0
In Repayment Interest Borrowing Expense (Class B)b 145.0 166.2 159.4 210.4 238.2 260.9
Repayment Assistance Programs 63.4 78.8 85.9 105.0 111.2 114.0
Loans Forgiven 7.2 7.2 13.0 7.0 6.7 7.3
Bad Debt Expense c
Debt Reduction in Repayment Expense 9.6 12.4 14.1 12.8 12.8 13.0
Bad Debt Expense 260.4 305.7 343.8 326.6 338.2 354.7
Total Cost of Government Support Expenses 671.3 758.9 786.6 846.5 905.3 957.9
Total Expenses 905.1 1,014.4 1,052.9 1,441.8 1,544.7 1,611.2
Net Operating Results 451.8 462.0 527.2 909.7 961.2 974.8
Alternative Payments to Non-Participating Province and Territories d 91.3 113.9 88.3 90.5 85.0 76.0
Final Operating Results 543.1 575.9 615.5 1,000.2 1,046.2 1,050.8
  • Reference a from the above table These costs are related to Canada Student Loans Program but are now reported by Canada Revenue Agency.
  • Reference b from the above table These costs are related to Canada Student Direct Loans but reported by the Department of Finance.
  • Reference c from the above table This represents the annual expense adjustment to the Provisions for Bad Debt and Debt Reduction in Repayment as required under Accrual Accounting. These amounts exclude adjustments for the mew measures under the Repayment Assistance Program. They will be included in future reports following consultation with the Office of the Chief Actuary.
  • Reference d from the above table The figures represent the annual expense recorded under the Accrual Accounting as opposed to the actual amount disbursed to the Non-Participating Province and Territories. The actual cash expense for Alternative Payments to Non-Participating Provinces and Territories. The actual cash expense for Alternative Payments to Non-Participating Provinces and Territories for 2007-2008 was $115.8M.
  • Reference e from the above table 2008-2009 and ongoing planned spending years include Canada Student Loans Program related amounts stemming from the Budget 2008 announcement (except for the alternative payment).
Consolidated Canada Student Loans Programs - Risk-Shared and Guaranteed Loans Only
(millions of dollars) Actual Forecast Planned Spendinge
2006-
2007		 2007-
2008		 2008-2009 2009-
2010		 2010-
2011		 2011-
2012
Revenue
Recoveries on guaranteed Loans 55.3 46.6 34.7 24.7 19.2 18.4
Recoveries On Put-Back Loans a 14.5 13.5 10.5 7.4 5.6 5.2
Total Revenue 69.8 60.1 45.2 32.1 24.8 23.6
Expenses
Loan Administration
Collection Costsa 5.3 4.9 3.4 1.0 0.0 0.0
Risk Premium 1.8 1.3 1.2 1.0 0.4 0.2
Put-Back 4.7 3.8 4.0 3.3 2.5 2.0
Total Loan Administration Expenses 11.8 10.0 8.6 5.3 2.9 2.2
Cost of Government Support
Benefits Provided to Students
In-Study Interest Subsidy (Class A) 11.5 8.0 4.9 3.5 1.5 0.6
Repayment Assistance Program 40.9 28.7 20.3 23.9 13.5 7.3
Claims Paid & Loans Forgiven 17.0 9.8 9.8 4.8 3.3 2.1
Total Cost of Government Support Expenses 69.4 46.5 35.0 32.2 18.3 10.0
Total Expenses 81.2 56.5 43.6 37.5 21.2 12.2
Net Operating Results 11.4 (3.6) (1.6) 5.3 (3.6) (11.4)
  • Reference a from the above table These costs are related to Canada Student Loans Program but are now reported by Canada Revenue Agency.
  • Reference b from the above table 2008-2009 and ongoing planned spending years include Canada Student Loans Program related amounts stemming from the Budget 2008 announcement.

3.5 Other Items of Interest

3.5.1 Legislative Mandate

On February 6, 2006, Human Resources and Skills Development Canada and the former Social Development Canada were consolidated into the Department of Human Resources and Skills Development to be styled Human Resources and Social Development. The Department was subsequently renamed Human Resources and Skills Development Canada in 2008. The powers, duties and functions of the Minister of Social Development were transferred to the Minister of Human Resources and Skills Development. The Minister was also made responsible for the Canada Mortgage and Housing Corporation. Further, a Secretary of State for Seniors was appointed on January 4, 2007 to ensure seniors' issues are adequately addressed.

Until new legislation is enacted, the Minister will rely on the provisions of the Department of Human Resources and Skills Development Act and the Department of Social Development Act for specific authorities.

The Department of Human Resources and Skills Development Act defines the powers, duties and functions of the Minister of Human Resources and Skills Development, the Minister of Labour, and of the Canada Employment Insurance Commission. The legislative mandate of Human Resources and Skills Development is to improve the standard of living and quality of life of all Canadians by promoting a highly skilled and mobile labour force and an efficient and inclusive labour market. The Minister of Human Resources and Skills Development has overall responsibility for the Employment Insurance system, while the administration of the Employment Insurance Act is the responsibility of the Canada Employment Insurance Commission.

The Department of Human Resources and Skills Development Act provides for the appointment of a Minister of Labour who is responsible for the Canada Labour Code and the Employment Equity Act, as well as other legislation on wages, working conditions and injury compensation. The departmental statute provides that the Minister of Labour make use of the services and facilities of the Department. The Act also sets out the mandate of the Minister of Labour to promote safe, healthy, fair, stable, cooperative and productive workplaces. The Minister of Labour is also responsible for the Canada Industrial Relations Board, the Canadian Centre for Occupational Health and Safety, and the Canadian Artists and Producers Professional Relations Tribunal.

The Department of Social Development Canada Act defines the powers, duties and functions of the Minister of Social Development. The mandate of Social Development Canada is to promote social well-being and security. In exercising the power and performing the duties and functions assigned by this Act, the Minister is responsible for the administration of the Canada Pension Plan, the Old Age Security Act, and the National Council of Welfare, and the Universal Child Care Benefit Act.

Service Canada operates within the legislative mandate and framework of the current departmental legislation (Department of Human Resources and Skills Development Act and the Department of Social Development Act). Its mandate is to work in collaboration with federal departments, other levels of government and community service providers to bring services and benefits together in a single service delivery network.

On June 1, 2006, the Policy Research Initiative was transferred from the Privy Council Office to the Department. It leads horizontal research projects in support of the medium-term policy agenda of the Government of Canada and identifies data needs and priorities for future policy development.

3.6 Organizational Structure

Human Resources and Skills Development Canada - Departmental Structure

Figure3a: A link to the description follows the figure

Text version of the Organizational Structure

3.7 Website References

Skills and Employment

Learning

Labour

Income Security

Social Development

Footer

Date Modified:
2012-04-13