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Employment Insurance Regulations (SOR/96-332)

Regulations are current to 2019-11-19 and last amended on 2019-03-17. Previous Versions

PART IIIReduction of Premium for Employers with Wage-Loss Plans (continued)

Application for Reduction of Employer's Premium Rate (continued)

 If the plan on which a reduction of the employer’s premium rate is based is modified or replaced, the employer shall

  • (a) notify the Commission within 30 days after the modification or replacement; and

  • (b) apply for a continuation of the reduction in accordance with section 68.

  • SOR/2009-297, s. 4

 The effective date of a reduction of the employer’s premium rate under subsection 62(1) is,

  • (a) in the case of an initial application for a reduction,

    • (i) the first day of the month following the month in which the application was made, if it was made on or before the 15th day of the month, or

    • (ii) the first day of the second month following the month in which the application was made, if it was made after the 15th day of the month, and

  • (b) in the case of an application for the continuation of a reduction, the effective date of the modification or replacement of the plan.

  • SOR/2009-297, s. 4
  •  (1) On receiving an application that is in accordance with section 68, an officer of the Commission shall decide whether the employer meets or continues to meet the requirements for receiving a reduction under this Part and shall notify the employer of the decision.

  • (2) If an employer does not comply with section 70, an officer of the Commission shall, after learning of the non-compliance and giving the employer an opportunity to be heard, make the decision referred to in subsection (1) and notify the employer of the decision.

  • (3) If an employer’s plan ceases to meet the requirements of paragraph 63(d), an officer of the Commission shall terminate entitlement to the reduction and notify the employer of the decision.

  • SOR/2009-297, s. 4

 An employer who makes an application referred to in subsection 69(4) of the Act shall produce evidence that a qualifying plan pursuant to paragraph 67(3) was in effect during the period in respect of which the application is made.

Termination of Plan

 An employer shall, within 30 days after termination of a plan on which a reduction of the employer’s premium rate is based, notify the Commission of the plan’s termination.

  • SOR/2009-297, s. 5

Appeals

 An employer may appeal to the Commission a decision made pursuant to section 72 of these Regulations or pursuant to subsection 69(4) of the Act or a new decision made pursuant to subsection 69(5) of the Act, within one year after the day on which notice of the decision or new decision is sent to the employer.

Transitional Provisions

 The Commission may reconsider an application by an employer for a reduction of the employer's premium for the year 1995 where the employer

  • (a) has made the application before December 4, 1994;

  • (b) has been considered for a premium reduction for the year 1995; and

  • (c) would have been entitled to a greater premium reduction if the application had been made on or after December 4, 1994.

PART III.1Reduction of Premiums for Employees Covered by a Provincial Plan and for their Employers

DIVISION 1General

Interpretation

 The definitions in this section apply in this Part.

provincial benefits

provincial benefits means allowances, money or other benefits, paid to a person under a provincial plan because of pregnancy or in respect of the care by that person of one or more of their new-born children or one or more children placed with them for the purpose of adoption. (prestations provinciales)

provincial plan

provincial plan means a plan, established under a provincial law, that provides for the payment of provincial benefits and in respect of which an agreement has been entered into between the Government of Canada and the province to establish a system for reducing employer’s and employee’s premiums where the payment of those benefits would have the effect of reducing or eliminating benefits payable under section 22 or 23 of the Act. (régime provincial)

variable administrative costs

variable administrative costs means the amount of direct operating costs incurred to provide benefits under sections 22, 23, 152.04 and 152.05 of the Act that fluctuate with the number of claims for such benefits that are processed, not including any fixed operating costs related to the administration of the Act. (frais administratifs variables)

  • SOR/2005-366, s. 1
  • SOR/2010-301, s. 1

Adaptation of the Act and these Regulations

 For the purposes of this Part, the Act and these Regulations are adapted as provided in this Part.

  • SOR/2005-366, s. 1

DIVISION 2Premium Reduction System

Standards

 A provincial plan shall, beginning on the day on which it takes effect, meet the following requirements:

  • (a) the plan must provide for the payment of provincial benefits;

  • (b) the plan must, at a minimum, cover substantially the same persons as those who are insured persons under the Act;

  • (c) the global amount of provincial benefits payable to a person under the plan must be substantially equivalent to or greater than the global amount of benefits payable to a claimant under section 22 or 23 of the Act;

  • (d) the plan must provide that an applicant who has received at least one week of provincial benefits under it shall continue to receive such benefits for their full period of entitlement, even if, after receiving that first week of benefits, they become a resident of a different province;

  • (e) the plan must provide for premium adjustment payments to be made to the Receiver General by the province where the plan is established in respect of employer’s and employee’s premiums paid under the plan in respect of employees who are not covered by the plan because of their residency; and

  • (f) the plan must provide for the sharing, by the province with the Government of Canada, of information obtained in the course of administering the plan that is necessary for the administration of a premium reduction system established by this Part, as well as information prepared from that information.

  • SOR/2005-366, s. 1

Premium Reduction

 The employee’s and employer’s premiums payable under sections 67 and 68 of the Act, respectively, shall be reduced as provided by section 76.05 if the payment of provincial benefits to insured persons under a provincial plan would have the effect referred to in subsection 69(2) of the Act in respect of benefits payable to those persons under section 22 or 23 of the Act.

  • SOR/2005-366, s. 1
  • SOR/2010-301, s. 2

 [Repealed, SOR/2010-301, s. 2]

 The premium reduction to be applied to employer’s and employee’s premiums shall be calculated by applying the premium reduction rate determined in accordance with section 76.06.

  • SOR/2005-366, s. 1
  •  (1) The premium reduction rate for a year is the rate determined by subtracting the rate determined under paragraph (b) from the rate determined under paragraph (a) and by rounding off the difference in accordance with section 66.4 of the Act:

    • (a) the rate determined by adding the following results, namely,

      • (i) the result obtained by dividing the estimated total amount of all benefits that will be paid under sections 22, 23, 152.04 and 152.05 of the Act in respect of that year to all claimants who are not covered by a provincial plan or any other similar plan established under a provincial law by the sum of the estimated total amount of insurable earnings in that year multiplied by 2.4 and the estimated amount of self-employed earnings in that year, taking into consideration the maximum yearly insurable earnings for the year as calculated under section 4 of the Act, of self-employed persons who have entered into — or will enter into during that year — an agreement under section 152.02 of the Act, of all persons who are not covered by such a plan, and

      • (ii) the result obtained by dividing the estimated total amount of the variable administrative costs that will be incurred in that year to provide benefits under sections 22, 23, 152.04 and 152.05 of the Act to all claimants who are not covered by a provincial plan or any other similar plan established under a provincial law by the sum of the estimated total amount of insurable earnings in that year multiplied by 2.4 and the estimated amount of self-employed earnings in that year, taking into consideration the maximum yearly insurable earnings for the year as calculated under section 4 of the Act, of self-employed persons who have entered into — or will enter into during that year — an agreement under section 152.02 of the Act, of all persons who are not covered by such a plan; and

    • (b) the rate determined by adding the following results, namely,

      • (i) the result obtained by dividing the estimated total amount of all benefits that will be paid under sections 22, 23, 152.04 and 152.05 of the Act in respect of that year to all claimants who are covered by a provincial plan or any other similar plan established under a provincial law by the sum of the estimated total amount of insurable earnings in that year multiplied by 2.4 and the estimated amount of self-employed earnings in that year, taking into consideration the maximum yearly insurable earnings for the year as calculated under section 4 of the Act, of self-employed persons who have entered into — or will enter into during that year — an agreement under section 152.02 of the Act, of all persons who are covered by such a plan, and

      • (ii) the result obtained by dividing the estimated total amount of the variable administrative costs that will be incurred in that year to provide benefits under sections 22, 23, 152.04 and 152.05 of the Act to all claimants who are covered by a provincial plan or any other similar plan established under a provincial law by the sum of the estimated total amount of insurable earnings in that year multiplied by 2.4 and the estimated amount of self-employed earnings in that year, taking into consideration the maximum yearly insurable earnings for the year as calculated under section 4 of the Act, of self-employed persons who have entered into — or will enter into during that year — an agreement under section 152.02 of the Act, of all persons who are covered by such a plan.

  • (2) Actuarial estimates shall be used to determine the estimated amounts referred to in subsection (1).

  • (3) The results referred to in paragraphs (1)(a) and (b) shall be determined having regard to the same factors as those set out in section 66 of the Act.

  • SOR/2005-366, s. 1
  • SOR/2010-301, s. 3
  • SOR/2011-229, s. 5(F)
 
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