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Part I - Plan Requirements (Cont'd)
The plan must indicate the maximum number of weeks for which the SUB payments will be made. Some plans pay benefits for varying periods based on years of service, salary or employee groups. The regulations do not set a minimum or maximum number of weeks for the payments.
7. a) Plan duration
The plan must indicate a start and end date.
Approval from HRSDC-SUB Program must be received before the implementation date of the plan. The plan's duration must be at least one year. However, it can be in effect for up to five years. If the plan is contained within a collective agreement, it will be valid until the expiry date of that document.
b) Subsequent changesThe plan must indicate that a written notice of any change will be given to HRSDC-SUB Program within thirty (30) days of the effective date of the change. This also includes changes to the administrators or contact persons.
If there is a major reorganization in the company, such as a merger or a take-over, the employer must send us details of the changes including the new or updated plan description.
8. a) Financing
The plan must indicate the method used to finance the SUB payments. Financing is the sole responsibility of the employer and must be done in one of the following three ways:
- by making the payments from the general revenues of the company;
- by making deposits into a trust fund established to provide the SUB payments;
- paying 100% of the insurance premiums that are required to finance the SUB payments.
The plan must indicate that the employer will keep a record of all SUB payments.
9. Other remuneration
Payments in respect of guaranteed annual remuneration, deferred remuneration or severance pay must not be reduced or increased by SUB received under the plan.
These amounts include any benefits to which the employee is entitled such as sick leave, vacation leave, commissions, bonus, etc.
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