Employment Insurance Act - Amendments - Budget Implementation Act, 2005 - Bill C-43

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Budget Implementation Act, 2005 - Bill C-43
[Assented to 29 ^th June, 2005]

Official version published in the Canada Gazette Part III – Vo. 28, No. 4, Chapter 30, on September 19, 2005

An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005

Part 19 amends the Employment Insurance Act and the Department of Human Resources Development Act to allow the Canada Employment Insurance Commission to set the premium rate under a new rate-setting mechanism. In setting the rate, the Commission will take into account the principle that the premium rate should generate just enough premium revenue to cover payments to be made for that year, as well as the report from the employment insurance chief actuary and any public input. On an as-needed basis, the Commission may also contract for the services of persons with specialized knowledge in rate-setting matters. If it is in the public interest to do so, the Governor in Council may substitute a different premium rate. In any given year, the rate cannot change by more than 0.15% ($0.15 per $100) from the previous year’s rate, and for the years 2006 and 2007 must not exceed 1.95% ($1.95 per $100).

Part 20 amends the Employment Insurance Act, for the purpose of the implementation of a premium reduction agreement between the Government of Canada and a province, to allow for a regulatory scheme to make the necessary adjustments and modifications to that Act as required to harmonize it with a provincial law that has the effect of reducing or eliminating the special benefits payable under that Act. A consequential change is also made to the parental benefits provisions.

This Act may be cited as the the Budget Implementation Act, 2005.

The sections of Bill C-43 relating to the Employment Insurance Act are as follows:

126. Sections 66 to 67 of the Employment Insurance Act are replaced by the following:

1996, c. 23, s.66; 2001, c. 5, s.9.; 2003, c.15, s.21; 2004, c.22, s.25 and s.26

65.3 (1) The chief actuary referred to in section 31 of the Department of Human Resources 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.

(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.

(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.

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

1. 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;
2. the report of the chief actuary to the Commission for that year; and
3. any public input.

(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.

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

66.1 For 2006 and 2007, the premium rate in each year may not be greater than 1.95%.

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.

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.

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.

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.

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.

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.

129. (1) Subsections (2) and (3) apply if Bill C-23, introduced in the 1st session of the 38^thParliament and entitled the Department of Human Resources and Skills Development Act (in this section referred to as the other Act), receives royal assent.

(2) On the later of the coming into force of section 126 of this Act and section 28 of the other Act,

(a) section 28 of the other Act is amended by adding the following after subsection (1):

(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.

(b) the other Act is amended by adding the following after section 28:

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.

(c) subsection 65.3(1) of the Employment Insurance Act is replaced by the following:

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.

(3) If section 28 of the other Act comes into force before sections 127 and 128 of this Act, then, on the day on which this Act receives royal assent, the heading before section 127 and sections 127 and 128 of this Act are repealed.

(3.5) If benefits are payable to a claimant for the reasons set out in this section and any allowances, money or other benefits are payable to the claimant for the same reasons under a provincial law, the benefits payable to the claimant under this Act are to be reduced or eliminated as prescribed.

131. The Act is amended by adding the following after section 153.1:

153.2 (1) Despite any other provisions of this Act, if the Government of Canada has entered into an agreement with a province in respect of a provincial law that has the effect of reducing or eliminating special benefits payable as described in subsection 69(2), the Commission may, with the approval of the Governor in Council, for the purposes of implementing the agreement and taking into account the application or effect of the provincial law, make any regulations that it considers necessary, including regulations

1. respecting the manner in which and the extent to which any provision of this Act or the regulations applies; and
2. adapting any provision of this Act or the regulations.

(2) The regulations may provide for

1. the making of any financial adjustments and for the crediting or charging of the amount of any of those adjustments to the Employment Insurance Account, including
   1. refunds of overpayments with respect to employees' premiums
   2. adjustment payments between the prov­ince and the Government of Canada with respect to premiums, and
   3. reimbursement by the province of benefits paid by the Government of Canada in accordance with any administrative agreement between the province and the Government of Canada;
2. the exchange of any information obtained under the provincial law or this Act; and (c) the administration of benefits payable under this Act to persons employed or residing in the province or who have made a claim under the provincial law, and the increase or decrease in the amount of benefits payable and in the number of weeks for which benefits may be paid under this Act to and in respect of those persons.

This bill comes into force when it receives Royal Assent, except for:  Sections 95, 97, 101, 102, 103 ,108, 109, 119 and 125.