Part II - Plan Requirements (Cont'd)
An employee whose net income (including EI and SUB) is above 1.25 times the maximum yearly insurable earnings may be required to repay some or all of the EI benefits received.
The employer may offset the repayment of EI benefits under the SUB plan. The amount of the offset when added to the previous payments (SUB and the gross EI benefits from that employment) must not exceed 95 percent of the employee’s normal weekly earnings. Therefore, if the SUB plan has supplemented to 70%, the maximum amount of the offset cannot exceed 25% of the employee’s normal weekly earnings multiplied by the number of weeks in which EI benefits were received.
The amount of repayment is calculated when completing the Income Tax return and is based on a taxation year. For more information on repayment of EI benefits contact your Service Canada Centre.
11. Trust fund – termination clause
When the plan is administered through a trust fund, it must indicate that upon termination of the plan, all of the remaining assets will:
- revert to the employer;
- be used for ongoing payments under the plan; and/or
- be used for the administration costs of the plan.
12. Trust fund - vested rights
The plan must indicate that the employee has no vested right to SUB payments except during periods of unemployment specified in the plan.
Note:
SUB plans may specify any other requirements imposed by the employer for the receipt of the SUB, e.g. the minimum period of employment required before payments are made; that the employee must return to work for a specified period after supplemental unemployment benefits are paid; conditions set by a collective agreement, etc.
The employer may provide for varying benefits (e.g. benefit duration, payments, type of coverage) for certain employee groups within the plan.
previous page | Table of contents | next page
[ SUB Main Page | Program Guide | Contact SUB ]